Dear friends,
I take reference to the following news:
PM Narendra Modi unveils key labour reforms to end 'inspector raj' - The Times of India
The moot point is, will these reforms stop the formation of persons like Vijay Mallya in the future? More than two years have passed since he has not paid salaries to his staff working in Kingfisher Airlines (KFA), yet no labor law comes to the rescue of the employees. Real reforms will occur where crooks like Mallya have some fear of labor laws.
Nothing happens in India when employers do not remit the TDS or fail to make contributions to PF/ESI. In a country like the USA, this is unthinkable. Today, labor needs protection from this side also. The problem in forums like CII, ASSOCHAM, etc., membership is only for the employers and not the employees?
The saddest part is that various HR forums also remain silent on the issues of non-payment of salaries to the staff. HR professionals who brag about being full of energy do not spend even an ounce of their energy to take up the causes of employees.
Who will listen to the woes of employees?
Dinesh Divekar
From India, Bangalore
Acknowledge(0)
Amend(0)
8219I take reference to the following news:
PM Narendra Modi unveils key labour reforms to end 'inspector raj' - The Times of India
The moot point is, will these reforms stop the formation of persons like Vijay Mallya in the future? More than two years have passed since he has not paid salaries to his staff working in Kingfisher Airlines (KFA), yet no labor law comes to the rescue of the employees. Real reforms will occur where crooks like Mallya have some fear of labor laws.
Nothing happens in India when employers do not remit the TDS or fail to make contributions to PF/ESI. In a country like the USA, this is unthinkable. Today, labor needs protection from this side also. The problem in forums like CII, ASSOCHAM, etc., membership is only for the employers and not the employees?
The saddest part is that various HR forums also remain silent on the issues of non-payment of salaries to the staff. HR professionals who brag about being full of energy do not spend even an ounce of their energy to take up the causes of employees.
Who will listen to the woes of employees?
Dinesh Divekar
From India, Bangalore
Acknowledge(0)Amend(0)
Dear Dinesh Sir,
Greetings.
The reason behind the reforms to end the Inspector Raj is to safeguard the closure of companies like DLF Construction Wing and at present Nokia, which is planned to close its operation in Chennai (where 8000 workers become unemployed) with effect from 01 Nov 2014. If a worker sustains an injury, it will impact only the individual or their family, but if a factory is closed, it will affect the entire financial condition of that society either directly or indirectly. Hence, this is a required action being taken by our Honorable Prime Minister.
But we must also consider the scenario from your point of view. The ending of the Inspector Raj will not give any wrong or negative signals to any organization to act as per their will and wish, stopping or reducing the benefits being rendered to the employees. If the aggrieved persons approach the concerned authorities, obviously they will get relief for their grievances. But in the name of inspection, the Factories Inspectors/Labour Inspectors are influencing and earning undue benefits from the employers in the name of inspections; this can be avoided by this reform.
From India, Kumbakonam
Acknowledge(0)Amend(0)
Greetings.
The reason behind the reforms to end the Inspector Raj is to safeguard the closure of companies like DLF Construction Wing and at present Nokia, which is planned to close its operation in Chennai (where 8000 workers become unemployed) with effect from 01 Nov 2014. If a worker sustains an injury, it will impact only the individual or their family, but if a factory is closed, it will affect the entire financial condition of that society either directly or indirectly. Hence, this is a required action being taken by our Honorable Prime Minister.
But we must also consider the scenario from your point of view. The ending of the Inspector Raj will not give any wrong or negative signals to any organization to act as per their will and wish, stopping or reducing the benefits being rendered to the employees. If the aggrieved persons approach the concerned authorities, obviously they will get relief for their grievances. But in the name of inspection, the Factories Inspectors/Labour Inspectors are influencing and earning undue benefits from the employers in the name of inspections; this can be avoided by this reform.
From India, Kumbakonam
Acknowledge(0)Amend(0)
Dear Bhaskar,
DLF Construction Wing or Nokia's decline is due to poor management practices. They should have foreseen the risks in running their businesses and taken timely action to obviate those risks. Their closure or decline has nothing to do with labor laws of India. Indian companies have grown notwithstanding the prevailing labor laws.
By the way, has anybody taken a survey of the employees working in the companies that have become sick? Do employees working in these companies hold labor laws or the management responsible for their company's sickness?
This is the problem. The politicians listen only to the entrepreneurs and not the other side. Poor labor laws are nothing but a cover used to hide the inefficiencies of the corporate honchos. I am against this. Not that I am against the labor reforms in their entirety.
Now the reforms are launched with much fanfare. Will CII or ASSOCHAM come up with a study after two years to show how these reforms have helped the Indian companies to grow?
Basically, I am against a person like Vijay Mallya who roams scot-free. While launching the reforms, whether Mr. Narendra Modi will tame these boorish businesspersons, that remains to be seen.
Thanks,
Dinesh Divekar
From India, Bangalore
Acknowledge(0)Amend(0)
DLF Construction Wing or Nokia's decline is due to poor management practices. They should have foreseen the risks in running their businesses and taken timely action to obviate those risks. Their closure or decline has nothing to do with labor laws of India. Indian companies have grown notwithstanding the prevailing labor laws.
By the way, has anybody taken a survey of the employees working in the companies that have become sick? Do employees working in these companies hold labor laws or the management responsible for their company's sickness?
This is the problem. The politicians listen only to the entrepreneurs and not the other side. Poor labor laws are nothing but a cover used to hide the inefficiencies of the corporate honchos. I am against this. Not that I am against the labor reforms in their entirety.
Now the reforms are launched with much fanfare. Will CII or ASSOCHAM come up with a study after two years to show how these reforms have helped the Indian companies to grow?
Basically, I am against a person like Vijay Mallya who roams scot-free. While launching the reforms, whether Mr. Narendra Modi will tame these boorish businesspersons, that remains to be seen.
Thanks,
Dinesh Divekar
From India, Bangalore
Acknowledge(0)Amend(0)
Really, this is a point of concern. Even when all the labor laws are in place, the swindling of PF money and non-payment of salaries continue. In such a situation, how can one say that they are effective? What we need is an effective labor policy that will benefit the workers and, at the same time, help the industry. Unnecessary Inspector Raj harasses genuine industries, while at the same time, aiding unscrupulous elements on both sides. Therefore, instead of an ineffective labor policy, what we need is an effective and workable policy so that the country's economic growth will be on par with other developed countries.
From India, Madras
Acknowledge(0)Amend(0)
From India, Madras
Acknowledge(0)Amend(0)
Dear friends,
Going by the cursory look of the PM's speech, I have to confess nothing significant is going to happen from what he was promising. On one side he spoke of "Inspector Raj," on the other he spoke about colours of collars. What he has announced has nothing in store either for entrepreneurs or employees. All he highlighted were the so-called labor reforms that could be covered by issuing one administrative order by a Deputy Secretary of the Government of India. Things like Maruti or Nokia factories or Kingfisher have nothing to do with labor laws of India. These are results of mismanagement and lack of knowledge and unwillingness to adopt proper corporate governance. If an entrepreneur is not prepared to contribute to EPF & ESI of his employees, let him not open any establishment. Many other countries have stricter norms than India has. Inspectors are not doing a good job, agreed, but that doesn't mean they should totally be disbanded. At least now erring units fear an inspection by an Inspector once in a lifetime, of course, he may inspect more frequently as possible depending on his requirement of cash flow. Despite these checks, millions of laborers are exploited, deprived of their just facilities and benefits. Wage levels are very low, safety is sacrificed, and there is no security of continuous employment. What have we done to address all these issues? Unfortunately, all the laws that were enacted for the protection of factory laborers who were prone to exploitation by capitalists, industrialists, and managers are nowadays extended to cover hospitals, educational organizations, service organizations, etc. The entire country knows thousands of B.E. graduates are languishing for a paltry few thousands, and doctors are on daily wages. Look at this - on the other hand, when the same activity is conducted by an organization owned by a local body or Panchayats or Nagar Nigams or Zila Panchayats, corporations, PSUs, government offices, etc., all laws are bypassed or managed with the connivance of authorities, law enforcement inspectors. No one is held accountable for unfair labor practices except on a few occasions where pocket money is not forthcoming. In India, for everything, there is a price. Millions work as casuals over decades. Who cares. The PM's sermon is good enough only to fill the columns of newspapers and TV news slots. It's time to think qualitatively with an open mind, keeping our conscience clean and upright.
From India, Bangalore
Acknowledge(0)Amend(0)
Going by the cursory look of the PM's speech, I have to confess nothing significant is going to happen from what he was promising. On one side he spoke of "Inspector Raj," on the other he spoke about colours of collars. What he has announced has nothing in store either for entrepreneurs or employees. All he highlighted were the so-called labor reforms that could be covered by issuing one administrative order by a Deputy Secretary of the Government of India. Things like Maruti or Nokia factories or Kingfisher have nothing to do with labor laws of India. These are results of mismanagement and lack of knowledge and unwillingness to adopt proper corporate governance. If an entrepreneur is not prepared to contribute to EPF & ESI of his employees, let him not open any establishment. Many other countries have stricter norms than India has. Inspectors are not doing a good job, agreed, but that doesn't mean they should totally be disbanded. At least now erring units fear an inspection by an Inspector once in a lifetime, of course, he may inspect more frequently as possible depending on his requirement of cash flow. Despite these checks, millions of laborers are exploited, deprived of their just facilities and benefits. Wage levels are very low, safety is sacrificed, and there is no security of continuous employment. What have we done to address all these issues? Unfortunately, all the laws that were enacted for the protection of factory laborers who were prone to exploitation by capitalists, industrialists, and managers are nowadays extended to cover hospitals, educational organizations, service organizations, etc. The entire country knows thousands of B.E. graduates are languishing for a paltry few thousands, and doctors are on daily wages. Look at this - on the other hand, when the same activity is conducted by an organization owned by a local body or Panchayats or Nagar Nigams or Zila Panchayats, corporations, PSUs, government offices, etc., all laws are bypassed or managed with the connivance of authorities, law enforcement inspectors. No one is held accountable for unfair labor practices except on a few occasions where pocket money is not forthcoming. In India, for everything, there is a price. Millions work as casuals over decades. Who cares. The PM's sermon is good enough only to fill the columns of newspapers and TV news slots. It's time to think qualitatively with an open mind, keeping our conscience clean and upright.
From India, Bangalore
Acknowledge(0)Amend(0)
Narendra Modi's government would continue to serve the interests of the employers in the name of labor reforms and its 'Shramev Jayate' program meant "nothing much" for the working class.
Noting that the program was billed as an end to 'Inspector Raj,' despite inspections, "many labor laws and social security schemes like EPF and ESI were not being implemented for a large chunk of workers. The new norms will only worsen the situation and encourage further violations by employers."
The pronouncements on 'Shramev Jayate' program "have to be seen linked with the labor law amendments" already moved by the Centre and state governments in Rajasthan and Madhya Pradesh.
"Some more proposals have been announced by the Government of India, which will amend the definition of small industries, removing all establishments with 40 workers out of the purview of 14 very important labor laws," it said.
"In the name of Shramev Jayate, the Modi government is acting in the interests of investors and not workers. It is also condemnable that changes in labor laws and other moves, which affect the workers, are being implemented without even discussions with the trade unions."
Observing that the program launched by the Prime Minister yesterday "means nothing much to the working people in the country," it said the Universal Account Number for Employees Provident Fund Subscribers facilitating portability in case of a change in employment was being worked out for the last few years. "The present government has just signaled its implementation."
The government must, in view of bank account details of every EPF member being made a necessary requirement, first amend Section 6 of the Payment of Wages Act to mandatorily open a salary account for every worker in a bank and make all payment through cheque or bank transfer of salary to all the workmen, including contract labor and apprentices engaged in any unit.
From India, Hyderabad
Acknowledge(0)Amend(0)
Noting that the program was billed as an end to 'Inspector Raj,' despite inspections, "many labor laws and social security schemes like EPF and ESI were not being implemented for a large chunk of workers. The new norms will only worsen the situation and encourage further violations by employers."
The pronouncements on 'Shramev Jayate' program "have to be seen linked with the labor law amendments" already moved by the Centre and state governments in Rajasthan and Madhya Pradesh.
"Some more proposals have been announced by the Government of India, which will amend the definition of small industries, removing all establishments with 40 workers out of the purview of 14 very important labor laws," it said.
"In the name of Shramev Jayate, the Modi government is acting in the interests of investors and not workers. It is also condemnable that changes in labor laws and other moves, which affect the workers, are being implemented without even discussions with the trade unions."
Observing that the program launched by the Prime Minister yesterday "means nothing much to the working people in the country," it said the Universal Account Number for Employees Provident Fund Subscribers facilitating portability in case of a change in employment was being worked out for the last few years. "The present government has just signaled its implementation."
The government must, in view of bank account details of every EPF member being made a necessary requirement, first amend Section 6 of the Payment of Wages Act to mandatorily open a salary account for every worker in a bank and make all payment through cheque or bank transfer of salary to all the workmen, including contract labor and apprentices engaged in any unit.
From India, Hyderabad
Acknowledge(0)Amend(0)
Dear Sir(s),
I would like to contribute to this important discussion by highlighting that the 2nd National Commission on Labour submitted its report in 2002. The Commission made various recommendations, including suggestions for the unification of different labor laws. However, the majority of these recommendations are still pending examination by the appropriate government.
The fear of an "Inspector Raj" is propagated by those who advocate for a free economy without any labor laws. The existence of multiple labor laws further complicates the situation. For instance, there are Acts such as the Payment of Wages Act, Minimum Wages Act, Equal Remuneration for Equal Work, Payment of Bonus Act, and possibly more. The question arises as to why these labor laws have not been unified and amended despite more than 12 years passing since the Labor Commission's recommendations were received.
The idea of eliminating the "inspector raj" seems to stem from policymakers who aim to create a more liberal and free economy. There have been suggestions to allow practices like "hire and fire" in the Indian labor system. Currently, the Contract Labour (Regulation and Abolition) Act (CLRA) appears to be the only labor act widely followed to cater to the interests of those advocating for a labor-law-free and completely free economy in India.
The overall compliance with labor laws in the country is generally very poor. In the past, serious accidents have occurred in factories where it was later discovered that many workers were not even listed on the muster-rolls or wage registers of those factories or units.
From India, Noida
Acknowledge(0)Amend(0)
I would like to contribute to this important discussion by highlighting that the 2nd National Commission on Labour submitted its report in 2002. The Commission made various recommendations, including suggestions for the unification of different labor laws. However, the majority of these recommendations are still pending examination by the appropriate government.
The fear of an "Inspector Raj" is propagated by those who advocate for a free economy without any labor laws. The existence of multiple labor laws further complicates the situation. For instance, there are Acts such as the Payment of Wages Act, Minimum Wages Act, Equal Remuneration for Equal Work, Payment of Bonus Act, and possibly more. The question arises as to why these labor laws have not been unified and amended despite more than 12 years passing since the Labor Commission's recommendations were received.
The idea of eliminating the "inspector raj" seems to stem from policymakers who aim to create a more liberal and free economy. There have been suggestions to allow practices like "hire and fire" in the Indian labor system. Currently, the Contract Labour (Regulation and Abolition) Act (CLRA) appears to be the only labor act widely followed to cater to the interests of those advocating for a labor-law-free and completely free economy in India.
The overall compliance with labor laws in the country is generally very poor. In the past, serious accidents have occurred in factories where it was later discovered that many workers were not even listed on the muster-rolls or wage registers of those factories or units.
From India, Noida
Acknowledge(0)Amend(0)
In a nutshell, I would like to mention that, like other fast-track courts, the judges at Labour Courts are also held accountable and given incentives for delivering speedy justice. These practices are not as common in the higher courts. Implementing mediation settlements will certainly instill faith in the Indian Judicial System and evoke a sense of lawfulness in the eyes of employees who may consider wrongdoing, as well as for employers who face swift consequences when found guilty.
Ensure there is a single line break between paragraphs.
From India, New Delhi
Acknowledge(0)Amend(0)
Ensure there is a single line break between paragraphs.
From India, New Delhi
Acknowledge(0)Amend(0)
The basic reason for closure of companies or entrepreneurs not coming to India is not the inspection policy of the labour law enforcement authorities. In many cases the closure was given a disguised reason of labour problems or unnecessary interference of law enforcement authorities. In many cases it was profit which by passed all other factors. When competition started coming in the mobile company also found it difficult to pull on the company decided to shut down despite the fact that the current situation also guaranteed a good amount of profit but less than what they expected.
Government cannot practically do away with inspection or enforcement policy because this is the way in which an inspector (whether under Factories Act, EPF Act, Shops Act or ESI Act) is able to make easy money. There are inspectors who make a round up of various industries under their jurisdiction (some times unknowingly or knowingly (!), he may cross the boundaries also) whenever they want money and this is a simple way of mobilizing fund. With the new inspection policy will their visits come to an end? I don’t think that they will stop coming and even if they come I don’t think that we will not entertain them. We will continue to entertain them and at the end of the day, the policy becomes a policy confined only in paper.
Regarding HR forums contribution towards workers, I think the advises that we give have helped a lot of aggrieved persons. Being a forum which consists of persons from distant places, our presence to defend the injustices may not become possible but our involvements have always been there.
Madhu.T.K
From India, Kannur
Acknowledge(0)Amend(0)
Government cannot practically do away with inspection or enforcement policy because this is the way in which an inspector (whether under Factories Act, EPF Act, Shops Act or ESI Act) is able to make easy money. There are inspectors who make a round up of various industries under their jurisdiction (some times unknowingly or knowingly (!), he may cross the boundaries also) whenever they want money and this is a simple way of mobilizing fund. With the new inspection policy will their visits come to an end? I don’t think that they will stop coming and even if they come I don’t think that we will not entertain them. We will continue to entertain them and at the end of the day, the policy becomes a policy confined only in paper.
Regarding HR forums contribution towards workers, I think the advises that we give have helped a lot of aggrieved persons. Being a forum which consists of persons from distant places, our presence to defend the injustices may not become possible but our involvements have always been there.
Madhu.T.K
From India, Kannur
Acknowledge(0)Amend(0)
Just now, one of the HR fraternities from Haryana emailed me, saying that a Dy. Labour Commissioner came to his office for conducting an inspection, and he was worried about why this officer has come despite the announcement of a new inspection policy by the Prime Minister. He was also concerned about why the DLC has come when the Labour Officer is the appropriate authority under various Acts. The answer is simple: let us complete the mobilisation before the policy becomes fully operational.
"Make in India" when we have a lot of bureaucrats who are "made in India"!
Madhu.T.K
From India, Kannur
Acknowledge(0)Amend(0)
"Make in India" when we have a lot of bureaucrats who are "made in India"!
Madhu.T.K
From India, Kannur
Acknowledge(0)Amend(0)Engage with peers to discuss and resolve work and business challenges collaboratively - share and document your knowledge. Our AI-powered platform, features real-time fact-checking, peer reviews, and an extensive historical knowledge base. - Join & Be Part Of Our Community.
WhatsApp Image 2020-12-03 at 2.39.55 PM.jpeg