The Centre’s flagging of “rising wages in China” while announcing recent labour reforms to boost foreign direct investment (FDI) in the textile and garment sector has invited the ire of some trade unions.

“It is atrocious that the Finance Minister tried to woo investors by pointing out ‘rising wages in China’. It is clear that by this that he is inviting investors to utilise cheap labour in our country with a veiled commitment to make that cheaper, so that they can reap more profits,” Tapan Sen, General Secretary Centre of Indian Trade Unions (CITU) and Rajya Sabha MP, said in a statement.

Trade unions have also denounced various “anti-labour” announced by the Centre, “without any consultations with them.”

Sen also decried the Centre for terming the garment industry as ‘seasonal’, alleging that this was to “find a plea to introduce fixed term employment and facilitate hire and fire of workers as per the convenience of the employers.”

It may be recalled that central trade unions had opposed such as proposal by the Atal Bihari Vajpayee-led government, which was rescinded in 2004. “Now there are attempts of the BJP government to re-introduce fixed term employment,” Sen said

Also, the proposal to make the provident fund “optional” for employees earning less than Rs 15,000/month, also indicates the “persistent attempts of the government to pave the way for demolishing this time-tested social security scheme”, he added.

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