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SIEMA seeks changes in labour laws

R.Y. Narayanan

Coimbatore , Nov. 21

THE Southern India Engineering Manufacturers' Association (SIEMA), Coimbatore has requested the Tamil Nadu Government to exclude certain jobs from being defined as `core activities' to facilitate the employment of temporary hands.

It has also said that the industry should be permitted to engage contract labourers in certain core activities in case of exigencies like time-bound completion of work due to increase in the volume of work or when the nature of work is such that full-time workers are not needed.

In a representation to the Secretary, Labour and Employment, Mr G. Rajendran, President, SIEMA, said that the labour laws should be in tune with the changed scenario of globalisation and economic liberalisation if the companies are to remain competitive.

Regarding amendments to the Contract Labour (Regulation and Abolition) Act 1970, he suggested deletion of services such as watch and ward, sanitation, cleaning work, canteen-related work, canteen and catering work, civil and other construction work, loading and unloading activities, packing, fettling and grinding in foundries, winding, painting and melting from the `core activities' of establishments to enable the companies to engage workers on contract basis.

The Tamil Nadu Industrial Employment (Standing Orders) Rules 1947 do not have any provision for `fixed term employment' to facilitate employment of temporary workmen for any sudden increase in demand that required to be met during a specified period. This provision must be incorporated in this rule, he added.

In another memorandum to the Secretary, Union Ministry of Labour, Mr Rajendran said that the recommendations of the II National Commission on Labour (NCL) on payment of retrenchment compensation for closure of industries at the rate of 30 days' salary per completed year of service in case of sick units and 45 days in case of profit-making industries was `very high'.

He wanted the status quo to be maintained with regard to compensation at the rate of 15 days' pay.

However, if the Government was willing to give benefits to workmen, the compensation could be increased from 15 days' pay to 30 days' pay `only in profit-making companies' for closure.

Similarly, the recommendations of the NCL with respect to retrenchment compensation at the rate of 45 days' salary for sick industry to become viable and 60 days' wages as retrenchment compensation for profit-making companies was very high.

"Reducing it to 15 days' and 30 days' salary respectively for every completed year of service is reasonable, fair and sustainable."

Mr Rajendran also suggested deletion of the provision for seeking permission for layoff, retrenchment and closure in the Industrial Disputes Act and that this exemption be made applicable uniformly without any reference to the number of workers employed.

He also wanted the Government not to accept the suggestion of the NCL for progressive reduction in the minimum number of workers employed in a company for bringing it under PF coverage, fearing that the small-scale and cottage industries would be hit if the PF coverage were extended to almost all units.

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