State throws ball in Centre’s court to adopt labour reforms

State throws ball in Centre’s court to adopt labour reforms
Express News Service

Mumbai, Jan 12: Despite the standoff between the industries and labour departments, the Congress-led Democratic Front government today drastically sought to dilute the Industrial Disputes Act and the Contract Labour (Prevention and Abolition) Act.

The two-day special cabinet meeting also unanimously approved the new industrial policy, which inter alia aims at boosting investment as well as industrial production in all sectors.

‘‘We feel that the proposed changes in the labour legislations and the new industrial policy will facilitate overall growth in industrial production and better work culture,’’ Chief Minister Vilasrao Deshmukh said.

Deshmukh said his government has proposed to exempt solid waste disposal units, canteens, security agencies, gardens, courier services and 100 per cent export-oriented units from the provisions of the Contract Labour (Prevention and Abolition) Act. ‘‘Since it is a Central legislation, once it is approved by the state legislature, the same will be forwarded for the Centre for its approval,’’ Deshmukh said.

The amended Industrial Disputes Act envisages to bring into its purview those drawing a basic salary upto Rs 6500 as against the existing limit of Rs 1600.Secondly, and significantly enough, the Industrial Disputes Act will not be applicable to the establishments which have on their rolls less than 300 workers as against the existing limit of 100 workers.

Dwelling on the ramifications of the proposed amendments, the Chief Minister said if the proposed legislation is passed in both the Houses of the state legislature, establishments employing less than 300 workers will not require the permission of the government either for the closure of the unit or retrenchment of the workers. ‘However, to protect the interests of the workers, his government has recommended that the existing compensation be enhanced to three times’, he said.

In addition, Deshmukh said, the provisions of payment for lay off in the Industrial Disputes Act will be withdrawn. The Chief Minister said an establishment intending to change the product, resorting to modernisation or computerisation, will not be required to give a notice of change either to the workers or the government. ‘‘I don’t think that the proposed amendments will have any adverse impact on the workers. In fact, it will improve work culture immensely and help boost industrial production. The amendments will have to be cleared by the Centre,’’ he added.

Unveiling the new industrial policy, Deshmukh announced sops like waiver in electricity charges and stamp duty and remittance of octroi tax. The new industrial policy will lay special thrust on the development of industries related to information technology and bio-technology, Deshmukh said.

Similarly, the state will also announce no-industries district under its group encouragement scheme. Under the scheme, criteria for industrial development of such districts will be finalised by a committee headed by the state Industries Minister, Deshmukh said.

The scheme also provides for electricity charges waiver for industries in C, D, D+ Zones classified by the govrnment and no-industries district for 15 years, he said.All I-T, bio-technology units, 100 per cent export-oriented groups, export processing zones, special economic zone and STP and electronic hardware technology park will be entitled for power charges rebate for 10 years.

Similarly, stamp duty and registration fees will be waived for industries setting up their units in C, D, D+ and no-industries district till March 31, 2006. The I-T and bio-tech units will be entitled for these rebate till March 31, 2006, he added.