BIFR, SICA roles under review

BIFR, SICA roles under review

NEW DELHI, APRIL 8: The Government is seriously reviewing the role of Board of Financial and Industrial Reconstruction (BIFR) in dealing with sickness and revival of companies, the labour minister Satyanarayan Jatiya said here on Saturday.

The minister said despite an encouraging economic scenario projected in the economic survey, the problem of industrial sickness continued to be an issue of great concern because it had an adverse impact on workers, the immediate fallout being default in payment of their statutory wages causing great hardship to them and their families.

Regarding non-payment of wages and statutory dues in the public sector, he said he had taken up the matter with his counterparts in the various ministries and had even met the Prime Minister.

As a result, he said, a group of ministers (GoM) had been set up under the Planning Commission deputy chairman to consider various issues affecting the employees of the central undertakings, including the recent controversy over periodicity of wage revision. The GoM was secheduled to meet on April 10 and 11, he said.

Meanwhile, the Government had taken several measures to avoid sickness in the public enterprises, the minister said. Planned assistance had been provided for restructuring of the undertakings to enable modernisation, technological upgradation as well as for protection of jobs, he said citing the example of SAIL in which Rs 8,000 crore had been infused. A rehabilitation fund for units in private sector had also been created, he informed.

Stressing the need for rethinking in the labour market, he said the process of integration with global economy had exposed the Indian industry, which had enjoyed protectionism for four decades, to international competition which required a change in the mindset.

Opinion had been expressed from time to time, he said, that many of the 165 labour laws had become archaic and needed a change. The apex tripartite body, Indian Labour Conference, had called for their review. A conscious view had been taken to change them to bring them in tune with the future needs. The Second National Labour Commission had been constituted with this purpose, he said.

The Government was equally committed to the welfare of 320 million workers in the unorganised sector. "Their poverty, exploitation and sufferings have been engaging the concern of the Government", the minister said adding that for the first time an umbrella legislation was being envisaged to protect their interests.

The minister also informed that to increase the coverage under the Employees Pension Scheme, reduction in the number of employees from 20 to 10 in an establishment and notification of additional establishments was under consideration of the Government.