Financial Daily from THE HINDU group of publications
Friday, Jan 27, 2006
Financial Daily from THE HINDU group of publications Friday, Jan 27, 2006 |
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Labour Reforms Industry & Economy - Textiles Flexible labour law for textiles on anvil Anil Sasi
New Delhi , Jan. 26 IN a bid to introduce labour law flexibility for the textiles sector, the Government is considering a proposal whereby firms could be given the go-ahead to employ "non-permanent" workers if they furnish bank guarantees against the names of these workers, earmarking their salaries against a specified minimum period of employment during a year. The scheme proposes to keep "non-permanent" workers outside the ambit of the existing set of labour laws, official sources said. These workers would, however, have to be guaranteed a minimum employment period by the employers, which is likely to be pegged at around 150 days a year. The bank guarantee requirement is aimed at ensuring that the employment pact is a direct one between the employer and the temporary worker. This provision has also been incorporated to ensure that the scheme passes muster with the Government's Left allies, who have so far been reluctant to consider any change in the existing labour law framework. While representatives of the textile industry have offered assurances to the Government that "non-permanent workers" would be employed by them for at least 150 days a year, the bank guarantee clause is expected to allay concerns raised by some Left leaders that the industry might violate employment provisions for temporary workers if some degree of flexibility in hiring were allowed. Currently, a large number of textile exporters are resorting to sourcing temporary staff through contractors. The bank guarantee clause is also aimed at eliminating the middleman and making the deal a direct one between the employer and the workers, while ensuring that each temporary worker also gets an identity despite not being on the rolls of the firm, sources said.
Related Stories: More Stories on : Labour Reforms | Textiles
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