Prime Minister Narendra Modi has unveiled a host of "labour reforms" to end inspector raj system.The aim is two-fold, one is to ensure that business can be done smoothly and also to provide increased safety net for workers by improvesd pension and minimum salary safety. PM's new message is 'Shramev Jayate', which seeks to celebrate the power of labour. He wants to make "Make In India" campaign a success by improving overall trade atmosphere in the country. Some of the salient points of new labour schemes:
1. It seeks to end "Inspector raj"- which often meant harassment by officials. A transparent system is being developed. Units for inspection will no longer be chosen arbitarily without any specific objective. Now it will be done on the basis of computerised list. The list will be generated on the basis of objective criterions. There will be a separate list for inspection in serious cases. The report by the inspector will be available online within three days of the inspection. “We have replaced 16 forms (which factory owners had to fill) with one form, which is available online. Now computer draw will decide which inspector (labour) will go for inspection to which factory and he will have to upload his report online in 72 hour.
2. EPFO subscribers were alerted about universal account number. It will ensure smooth movement of fund for around 8 crore subscribers specially when they change jobs. According to PM, huge amount of fund remains unused, and he wants that to be used by the people who need it. If the poor gets the fund, not only will it help in social security but most likely they will invest it in banks or other financial instruments which will help in economic growth.
3. PM is looking to ensure efficiency and transparency. So, there will be a new website where companies will be able to air their grievance with the labour ministry.
4. Manufacturers will be able to register online to file a self certified compliance report for all the labour laws. The focus is on self certification by citizens which can be later checked by competent authorities. It will hopefully reduce clutter currently surrounding government jobs.
5. A new skill development and apprenticeship scheme is being launched to encourage youths. The Industrial training institutes have total 34 lakh seats. The goal is to break the perception that only white collar jobs are good and lucrative.
PM is essentially looking to reach out to the huge youth population and to train and embolden them to take up jobs in manufacturing sector. He is also trying to reduce bottle necks so that foreign investors feel compelled to invest in India.
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