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Labour panel moots free hand to employers to retrench

Keeping in mind the impact of globalisation and the need to evolve 'a new work culture,' the Second Labour Commission has recommended giving a free hand to employers to retrench without prior permission, ruled out the need for a wage board and suggested a check on multiplicity of trade unions.

"For meeting the demand of hire and fire, it is necessary to create social acceptability for change and the social institutions that can take care of the consequences," the long-awaited report of the commission, released by Labour Minister Sahib Singh Verma in New Delhi on Saturday, said.

The panel, headed by Ravindra Varma, also recommended in its 1,751-page report that the number of holidays be reduced to five, including three national holidays, apart from ten restricted ones.

It also asked the Centre to bring a comprehensive law relating to working conditions at work places and another for securing the rights of workers in the unorganised sector.

The panel recommended that the Centre notify a National Floor Level Minimum Wage, leaving it up to the states to fix the minimum wage which should not be below the national level.

Releasing the voluminous two-part report here, the labour minister said he would hold discussions with trade unions, employers organisations, political parties and others to evolve a consensus on the recommendations.

A comprehensive legislation on labour reforms was likely to be tabled in Parliament in the winter session to consolidate the 50-odd lo labour welfare and rights, Verma said.

Highlights of Second Labour Commission's recommendations

• No prior permission necessary for lay-off.
• retrenchment in establishment of any employment size.
• No need for any wage board, statutory or otherwise.
• for fixing wage rates for workers in any industry.
• Restricting holidays to three national holidays and two more, besides ten restricted ones a year.
• Contract labour shall not be engaged for core production/services/activities. However, for sporadic seasonal demand, the employer may engage temporary labour for core production/service activity.
• The 'single negotiating agent' should be that trade union which has a minimum membership of 66 per cent.
• Setting up of a Grievance Redressal Committee for organisations employing 20 or more persons.
• Evolving of a policy framework and enactment of law for unorganised sector workers to ensure generation and protection of jobs, protection against poverty, lack of organisation, arbitrary dismissals and denial of minimum wage
• Creation of a high-powered National Social Security Authority, preferably under the chairmanship of the prime minister.
• Enact an 'indicative law' on child labour to replace the existing Child Labour (Regulation and Prohibition) Act.
• Appoint an expert committee to study the pros and cons of the national minimum wage and make suitable recommendations for fixation of minimum wage.

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