Coinciding the appointment of Rajiv Mehrishi, as the economic affairs secretary known for his initiative for labour reforms in Rajasthan, prime minister Narendra Modi on Thursday announced a slew of labour reforms attempting to balance environment for industrial development as well as attending to issues related to working class.
The pro-labour reforms Modi talked, including ending inspector raj and harassment to factory owners, demand-based vocational training, an apprentice scheme and revamp of the health insurance scheme to benefit workers in the unorganised sector.
Sources here said, though Thursday's decisions related to address administrative issues, the government is now moving to take parliamentary recourse, to repeal some labour laws as well to protect small industrial units employing upto 40 people form the tough labour laws. So far fearing unions and labour unrest governments have shied away from broaching the subject of labour.
Modi also launched a Unified Labour Portal or 'Shram Suvidha', a transparent and accountable Labour Inspection Scheme, and portability through Universal Account Number (UAN) for Employees' Provident Fund members. He also flagged off an Apprentice Protsahan Yojana.
Modi said we needed to change our attitude towards labour as well as work very hard to change the perception we have of the poor. "In our country, white-collar jobs are given a lot of importance. 'Shramev Jayate' equally important as Satyameva Jayate," he said.
The micro, small and medium enterprises sector comprises some 36 million units providing employment to 81 million people. While many of these are service sector enterprises, a good chunk are also small manufacturing enterprises which remain small in order to receive excise concessions and avoid labour laws. The UAN will allow collation of accounts and viewing of updated PF accounts. The UAN would be portable throughout the working careers of members and can be used anywhere in India. Thus, workers in the organised sector would not need to apply for a transfer of their PF account claim on changing jobs. Bulk SMSs will be sent across India as part of the programme, the ministry said in a statement here.
"While about one crore EPFO subscribers will get SMSs regarding portability through UAN, about 6.50 lakh establishments and 1,800 inspecting officers will get SMSs about Unified Labour Portal which will (make for) a transparent and accountable Labour Inspection Scheme," the ministry said.
Under the new Labour Inspection scheme, labour inspectors will get auto-generated lists telling them where to go for inspection. Ministry officials said the inspectors have to upload their reports on to the portal within 72 hours of carrying out an inspection. "An SMS will also be sent to the 1,800 inspectors... urging them to cooperate for the new scheme," said a senior labour ministry official.
A unified Labour Identification Number (LIN) for simplifying business regulations and securing transparency and accountability in labour inspections by various agencies and bodies under the administrative control of labour ministry will also be launched. The LIN web portal will operate through a unique LIN or Shram Pehchan Sankhya for each employer. The portal will provide for the e-filing of annual returns by employers.
Under the Apprentice Protsahan Yojana, 50% support for training in MSMEs will be provided by the labour ministry. Also, in a bid to promote Industrial Training Institutes (ITIs), the ministry will felicitate some individuals who have passed out from these institutions and are holding top posts in various companies.
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