The Hindu : Karnataka / Bangalore News : Draft amendments to labour laws ready

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Tuesday, Dec 05, 2006
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Karnataka

Karnataka - Bangalore

Draft amendments to labour laws ready

Special Correspondent

Cabinet to present them during legislature session

FOR CHANGE: C. Valliappa (left), former president, BCIC, N. Ahmedali, former president and chairman, HR and Training Committee, BCIC, K. Jothiramalingam, Principal Secretary, Labour, and Venkat Kedlaya, president, BCIC, at a seminar in Bangalore. & #151; Photo: K. Gopinathan

Bangalore: The Government has drafted several amendments to labour laws and a scrutiny committee has vetted these, Principal Secretary, Labour, K. Jothiramalingam, has said.

"The amendments are now before the State Cabinet which will present them during the next legislature session,'' he told an interactive seminar on "Labour-Key Issues for Consensus and Reform" organised by Bangalore Chamber of Industry and Commerce (BCIC) here on Monday.

"Today's economy is based on the premise that a consumer will demand the best quality product at a competitive price and this applies to countries and manufacturing companies. It is not possible for Karnataka or Bangalore to use their inherent advantages without liberalisation, including changes in labour laws,'' Mr. Jothiramalingam said.

There had been changes in the way consumers were treated by the telecom and electricity sectors and even the railways, he pointed out. Even the Chinese Premier during his recent visit had advised Left party leaders about being pragmatic.

The interests of workers would not be compromised because of the changes in labour laws, he said. An example was allowing contract workers, subject to due registration by the employers.

The Government had an "open mind" in regard to night shifts and overtime in the technology sectors.

Additional Labour Commissioner S. Narasimhaiah said the department showed flexibility regarding Employees Provident Fund (EPF). "Some organisations such as the State-run Bangalore Metropolitan Transport Corporation have opted out of EPF in favour of their own schemes and private firms can do that too, if they benefit employees,'' he said.

Karnataka Power Corporation with 8,000 employees had launched its provident fund scheme.

Presenting the seminar theme, N. Ahmedali, Chairman, HR and Training Committee of BCIC, said neighbouring States such as Andhra Pradesh and Tamil Nadu had made radical changes in their labour laws and their industries were now more competitive.

It was more difficult in Karnataka to close down a non-viable industry. There were recent instances of major companies locating their expansions outside this State, he said.

Karnataka Employers' Association President B.C. Prabhakar said labour laws needed changes because the industrial situation was different from when they were framed.

There were more jobs than skilled persons and employees could command the best terms from employers. With simpler laws, a much higher growth was possible.

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