The Hindu : Business : `No need for curbs on labour rights to attract FDI'

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Saturday, Sep 23, 2006
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`No need for curbs on labour rights to attract FDI'

Staff Reporter

Buddhadeb seeks special package for SEZs

KOLKATA: Absolute curtailment of labour rights is not necessary to attract more investments from foreigners and corporate bodies, Buddhadeb Bhattacharjee, West Bengal Chief Minister, said.

Speaking at an interactive session at the National Council of the Confederation of Indian Industry here on Friday, Mr. Bhattacharjee said a `hire and fire' policy was not likely to work and the Government, corporates and trade unions needed to work together to create a harmonious relationship between management and workers.

"I always try my best to persuade trade union leaders to change their mindset that productivity was only the management's headache,'' he said, when asked if lack of reforms in its archaic labour laws was making India less competitive as compared to China.

Mr. Bhattacharjee said that he had proposed to the Centre to draft amendments to the labour laws only after a consensus was arrived at between chambers and trade unions.

Mr. Bhattacharjee said that improving industrial and social infrastructure by investing in seaports, airports, highways and special economic zones (SEZ) was imperative for attracting more foreign investment.

"But the Government must come out with a special incentive package for SEZs like China and a clear policy so that they do not become real estate SEZs,'' he said.

"We can, for example, take a strong position on black money as a way of raising funds,'' he added.

Ruing the fact that employment levels were going down in both public and private sectors, Mr. Bhattacharjee said that growth should be linked to employment to avoid the prospect of jobless growth.

"Unfortunately, discussions with the Planning Commission have revealed that for the first time, the approach to the Eleventh Plan has no target for creating new job opportunities,'' he said.

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