The Hindu : Tamil Nadu / Coimbatore News : CODISSIA deplores ESI move

Online edition of India's National Newspaper
Wednesday, May 04, 2005

Tamil Nadu

Tamil Nadu - Coimbatore

CODISSIA deplores ESI move

Staff Reporter

COIMBATORE: : The Coimbatore District Small Industries Association has appealed to the Centre that the Employees State Insurance (ESI) Corporation should not demand contributions from the small-scale industries on job work charges.

In a release, the association president, J. Balu, said thousands of small and tiny units were functioning here and the power-operated units employed 10 workers or above and the manual-operated ones had 20 or more workers. These came under the ESI scheme to provide social security to the industrial workers.

The ESI Corporation was demanding remittance of ESI contributions towards job work charges paid by the industries.

He said that in most cases, the job workers had less than 10 employees and were not under the purview of the ESI Act. "They also do not come under the definition of immediate employer as per the provisions of the Act. Job work is carried out from outside and the job worker takes up tasks for any industry." It was not possible for the units to have all the manufacturing facilities in-house and hence they had to depend on the job workers for certain production activities.

Mr. Balu suggested that interactions should be organised with officials of the ESI Corporation and the industry associations to find a solution to this problem.

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