Amendment to ID Act BMS view

Ref: No.BMS/D-4//2012

Date: 08-6-2012

The Secretary,
Ministry of Labour & Employment,
Govt. Of India,
Shram Shakti Bhawan,
New Delhi – 110001.

Sub:- National Manufacturing Policy – Amendment to Section 25FFF(1A) of the Industrial Disputes Act, 1947.

Dear Sir,

We thankfully acknowledge receipt of your letter dated 23 May 2012.
With regard to proposed amendments to the ID Act are concerned we have gone through the contents of your letter ibid carefully and after due consideration we are of the view that:-

(a) The proposed pro-worker amendment to contract labour law in the ILC of 2010 has not progressed any further and getting least priority whereas subject amendment to which the worker is hardly interested is getting overriding priority which cannot be appreciated.

(b) Previously SEZ’s became controversial and now creation of NMIZ are also going to the same way. The subject proposal being brought hastily by the Govt. is not an agenda set by the Ministry of Labour but it is only to comply with demand from Ministry of Commerce. The compulsions behind this move to get Act amended cannot be appreciated.

(c) The case of exhaustion of mineral cannot be compared with manufacturing sector and can never be equated with closure of industry. Payment of compensation or to provide for alternative employment has been thrown on the shoulders of employers in case of closure. Govt. wants to withdraw its responsibility which will result in encouraging closures and increase in unemployment which again cannot be appreciated.

(d) BMS is basically opposed to the concept of creation of NMIZ’s and as such no amendment in any industrial law is required.
Hence BMS strongly opposes any amendment to ID Act in haste as proposed in your letter.

We will wholeheartedly welcome any move of the Government in improving the manufacturing sector, if it ensures decent work for the workers and without denying any right of the workers.

Sincerely yours,

General Secretary

BMS opposes NMIZ policy

Bharatiya Mazdoor Sangh (BMS) strongly opposes the anti labour proposals in the draft National Manufacturing Policy (NMP) released by the Ministry of industry and Commerce recently, said Saji Narayanan C.K., National President. The anti labour proposals in the draft includes- Contract Labour Abolition Act will not be applicable to the units in the NMIZ, flexibility to downsize, restrictions on the right to join unions, Labour Laws be made more flexible, employment of women in three shifts, maintaining temporary status of employees, extension of shift hours, ease the burden of payment to labour at the time of closure of unit etc. No such anti labour proposals were discussed by the Ministry of Labour with the social partners including Trade Unions. Commerce Minister’s declaration that stakeholders have been consulted is clearly a lie. Hence the act of Ministry of Industry and Commerce is clearly an encroachment into the domain of Ministry of Labour. The Commerce Ministry feels that development of industry can be achieved only at the cost of labour. The NMP contradicts the Ministry’s own declared Industrial Policy (1991) clause that no small section of society can corner the gains of growth, leaving workers to bear its pains and that labour should be an equal partner in progress and prosperity.

Ministry was misled by the wrong information that China has become the manufacturing hub of the world through relaxed labour laws in manufacturing units. This issue was raised earlier before the 2nd National Commission on Labour which after visiting China has reported that no labour law is relaxed in SEZ or other manufacturing sectors in China. The Government is following the same wrong step as it took regarding SEZ policy which has ended in a National tragedy. “Development” should not be at the cost of labour. The trade unions cannot tolerate NMP breeding Shylocks who seek the flesh and blood of labour. The ministry should realize that even without making labour a causality our industries and manufacturing units can grow and compete in the world market, BMS President added. Workers are looking upon every change proposed in labour laws with caution. The present tendency is to shift all the blame in the industrial field on the shoulders of workers.

We maintain the view that Industrial sickness is primarily due to management failure. For the failure of management, worker should not suffer. So it is fundamentally wrong to say that labour laws are a hindrance to industrial progress. Development without retrenchment should be the new approach. The idea of social partners recognizes three groups interested in the industrial progress, viz. the employers, workers and the consumers. The fruits of gains and demerits of the industry should be shared by all the three partners alike. Then only they will display a real sense of belonging to the industry. The exploitative philosophy of capitalism prefer contract labour system because of two main reasons, viz. workers need be given only lower wages and they can be thrown out at any time. This is sheer exploitation. Hence Saji Narayanan demanded the Ministry to reshape the NMP to make it a labour friendly one.

(C.K. Sajinarayanan)

NMIZ Policy – GOI


Shri Anand Sharma, Union Minister for Commerce & Industry, while addressing at an Interactive Session with Industry of Northern Region, in Chandigarh today, said that while services have grown at a rapid pace, the share of the manufacturing sector in the country’s GDP has stagnated at around 15%. “With the objective of helping Indian manufacturing to achieve its true potential and in the process be an engine for job creation, we have proposed the creation of a number of National Manufacturing & Investment Zones (NMIZ)”, the Minister added. While detailing the NMIZs, Shri Sharma said: “the NMIZ would provide good physical infrastructure, a progressive exit policy, structures to support clean and green technologies, appropriate investment incentives and business friendly approval mechanisms and each zone would have a combination of production units, public utilities, logistics, environment protection mechanisms, residential areas and administered services. The interactive session was organised by the Confederation of Indian Industry (CII) and attended by a large number of representatives from Industry and senior officials of the government.

During the interaction, Shri Anand Sharma said, “We have witnessed rapid economic development post liberalization. However, given the size of our country and the daunting task of providing a basic minimum standard of living for all, we need to achieve much faster growth. We are a young country and we need to cater to the youthful aspirations. According to the 2007-08 Economic Survey, 64.8% of India’s population would be in the working age of 15-64 years in 2026. By 2015, India will have 800 million people in the productive age group of 15 to 59, ahead of China which is expected to have only 600 million. This means that we need to create employment and enterprise opportunities at that scale. For this to happen, jobs will have to be created both in the services and the manufacturing sector”.

“The NMIZ would have a governing body which would be in the form of a Special Purpose Vehicle (SPV) formed with the constituents of that specific NMIZ. The SPV would have the delegated authority from the State Government, Ministries in the Central Government and other Government agencies for issuing necessary clearances for the inception and continuation of business ventures inside the NMIZ. Thus, the concept of NMIZ combines the framework for more business friendly policy, procedures and approval ecosystem, combined with superior physical infrastructure”, he added.

“Investments are critical to economic growth and in today’s globalized world, FDI play an important role,” stated Shri Sharma and added that “while India remains an attractive destination for FDI, we can do with much more. In order to simplify FDIs, my Ministry has released the final document of FDI Policy Framework that would now comprise the single document on FDI policy”.

Speaking on the occasion, the Minister said that the Delhi Mumbai Industrial Corridor (DMIC) development project being executed over six States of Gujarat, Maharashtra, Madhya Pradesh, Himachal Pradesh, Rajasthan and Uttar Pradesh at an investment of over US $ 90 billion, will generate significant economic activity along the dedicated rail freight corridor between Delhi and Mumbai and aims to double employment potential in seven years, triple industrial output in nine years and quadruple exports from the region in 9 year period. “Under this project, 24 investment nodes have been identified of which there are 11 investment zones and 13 industrial areas. Of the seven nodes being developed in the first phase, Manesar-Bawal region in Haryana is receiving special focus and attention. We have cleared the overall perspective plan for the Delhi-Mumbai Industrial Corridor region and planning of the roads in Haryana is proceeding at a fast pace. In the Early Bird projects finalized for the state of Haryana, a project for establishment of a Smart City which envisages the Manesar-Bawal region which will be implemented on a PPP basis with the support and collaboration of Japan. In the recent visit of the Japanese Trade Minister, we took stock of the progress of the project and I am satisfied that we are proceeding as per schedule. I have also held a meeting with the Chief Minister of Haryana who has kindly agreed to earmark 250 acres of land for establishment of a world class Convention cum Exhibition facility”, Shri Sharma added.

As regards exports front, Shri Sharma said: “if we have to continue to grow rapidly and move towards our objective of double digit growth, exports have to play a much larger role. We not only have to become competitive to increase our exports but we also have to diversify our export markets and we need to look at the markets of Africa, Latin America, Oceania and CIS countries”.

In his welcome address, Shri R M Khanna, Chairman, CII Northern Region said that although the contribution of the Northern region to the national GDP continues to be the highest at 27.5%, it has been declining over the years with manufacturing witnessing one of the lowest growth rates amongst the key sub sectors. “Credit availability, infrastructure and inflation remain major areas of concern and we request the Government to focus on these areas and alleviate the problem so that Industry can contribute even more to the GDP”, he added. During his address, Shri Harpal Singh, Immediate Past Chairman, CII Northern Region said that India needs to significantly raise basic educational standards, increase the quality and quantity of our universities as well as introduce other measures on the agricultural front. Shri Chandrajit Banerjee, Director General-CII, in his remarks said that CII has been proactively engaged with the Indian Reforms process for economic development and in the pre–liberalization era, CII advocated reforms for economic liberalization and its role was crucial in building consensus around the reforms and minimizing opposition to them. Now is the time for second generation reforms.


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