The Hindu : National : Montek for reforms sans `hire-and-fire' policy

Online edition of India's National Newspaper
Saturday, Feb 11, 2006

National

National

Montek for reforms sans `hire-and-fire' policy

Special Correspondent

Aggressive reforms had induced violation of labour laws: CPI

NEW DELHI : Deputy Chairman of the Planning Commission Montek Singh Ahluwalia is in favour of labour reforms without a `hire-and-fire' policy.

He said rigid labour laws were affecting the domestic job market and raising costs in companies, especially in the manufacturing sector.

"The United Progressive Alliance Government has categorically said that we are not in favour of hire-and-fire. But there should be some flexibility in labour laws. We need to find a consensus," he said at a national seminar on `How the Union Budget Should Look Like,' organised by the All-India Trade Union Congress (AITUC) here on Friday.

Vital issues

Flexibility in labour laws, contract farming and speedy infrastructure development were vital for attaining 10 per cent economic growth. Trade unions need to be strengthened as they represented only eight per cent of organised labour, a level lower than most nations, he said.

Pointing out that the country was witnessing a jobless growth, Dr. Ahluwalia said higher growth would generate more jobs.

However, the Communist Party of India leaders, Gurudas Dasgupta and A.B. Bardhan, strongly opposed contract farming in agriculture and labour reforms. The Government's commitment to aggressive labour reforms had induced violation of thelaw. "Trade unionism is being suppressed and an under-paid workforce with total job insecurity cannot sustain higher productivity," Mr. Bardhan said. He suggested an increase in rural credit and spending on social sectors.

The CPI leaders said the Left was not against high growth and reforms but opposed to the way Government was pursuing the process.

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