Labour pains

This refers to ‘Flimsy arguments to justify contract labour’ by KR Shyam Sundar and Rahul Suresh Sakpal (March 25). India needs stronger labour unions, which will enhance the collective bargaining power of our workforce. We need strong social safety net for our workforce. Contract labour cannot be justified, however well-argued, in a decent society.

The government should propose a minimum wage law and it should enforce it at all costs. India is home to the world’s youngest population and we need labour laws which will promote well-paying jobs and provide the worker with a happy retirement. The government should not allow exploitation of workers hired as contract labourers.

In large, reputed companies, contract labourers have been in existence for more than a decade, and all of them have been protesting to make them permanent employees. How can such a practise even exist? Even after court judgements the management’s continue to defy court orders and the protest continues. Companies should not put profits before people, and it’s the government’s job to protect rights of its citizens.

CR Arun

Email

Cut that hurts

Your front page report (March 25) says the recent cuts in deposit interest rate are meant for banks being made preferable to post offices for savings deposits. Although the rates are revised downwards in the post office deposits, there are reasons other than interest rates which make post offices attractive for parking savings.

The wide availability of post offices even in villages, the quality of their services — with even uneducated people being informed of various aspects of the schemes readily in an understandable manner —, the officials’ treatment of the villagers, etc. are factors that make the post office attractive for investment in terms deposits.

It is doubtful whether the interest rate cuts will have any significant impact on the investments in postal deposits. In the context of the thinking of post offices being made ‘banks’, the current policy decisions appear illogical.

TR Anandan

Coimbatore

Inclusion instrument

It is unfortunate that the government is reducing post office interest rates in order to divert the flow from post office to banks. The post office plays an important role in financial inclusion. The post man, known to every citizen in his area of delivery, plays an important role in linking the post office with ordinary citizens, unlike banks where customers are being diverted to alternate channels.

The post office has definitely changed the way in which it is doing business by changing its ambiance, linking all post offices together, much similar to the core banking solutions in banking, and so on. Therefore, it is natural to see incremental growth in post office savings over the past two years.

The post office must not be viewed through an interest-rate-prism, but its role in financial inclusion and the ability to act as a catalyst for rural savings should be considered. Post offices do not have non-performing assets, unlike banks, even though human productivity may not be up to the standard.

SA Srinivasa Sarma

Hyderabad

Scan them strictly

This refers to ‘Checking Ponzis’ by Mohan R Lavi (March 25). Due to the lackadaisical attitude of authorities and in the absence of a foolproof mechanism to audit ‘blade’ companies, fraud companies promoting false financial products are not only mushrooming but also thriving at the cost of innocent people who invest their hard money in such firms oblivious about their genuineness.

Attractive advertisements and the receptive approach of the executives representing such companies allure gullible people to fall into the well-laid trap with the hope of earning more. The Board of Directors of such companies has its own agenda to work for self-aggrandisement, leaving the poor investor in lurch.

There is no dearth of rules in our country to punish the culprits but alas they are not without loopholes, which come as a boon for fraudsters to find escape routes.

HP Murali

Bengaluru

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