The Hindu : National : Employers hail proposed labour laws

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Thursday, Nov 03, 2005

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National

Employers hail proposed labour laws

Special Correspondent

NEW DELHI: The All-India Organisation of Employers (AIOE) has welcomed the proposed reforms in the labour policy and said the laws would help industry sustain the growth rate of 8-9 per cent for another five years.

In a statement here on Wednesday, AIOE president O.P. Lohia appealed to Parliamentarians to achieve wider consensus on the proposals presented to the Parliamentary Standing Committee by the Union Labour Ministry to stimulate growth and employment generation in the country.

The contract labour legislation, Mr. Lohia said, needed flexibility to allow industry to create job opportunities. The biggest beneficiary would be the textile sector, which after phasing out the multifibre agreement (MFA) may increase India's share of textile export from four to eight per cent by 2010, creating 12 million new jobs.

However, the proposed changes allowing only peripheral jobs to be contracted out may have a marginal impact. For a fuller benefit, section 10 of the Contract Labour (Regulation and Abolition) Act 1970 should be deleted, he said.

Mr. Lohia said chapter V-B of the Industrial Disputes Act 1947 had not served any purpose since its enactment. It had only added to a long list of sick industries.

Moreover, the provisions should also provide full safeguards against any arbitrary and mala fide action of the industry.

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