Lay-off by IT firms matter of serious concern: Labour Minister

Centre will adopt "conciliatory approaches" when labour issues reach it, as these matters are handled by states

Voicing concern over lay-offs in some IT firms, besides labour troubles in Nokia and Foxconn in Tamil Nadu, the Centre has said it will adopt “conciliatory approaches” when the issues reach them as these matters are handled by state governments.

While the IT industry had earlier provided employment opportunities to a number of students, the present trend of lay-offs by some IT firms was a matter of “serious concern”, Union Minister of State for Labour and Employment Bandaru Dattatareya said here.

“Labour is under the Concurrent List and whatever state government is there, wherever the state level administration is there they will look after (such issues). When it comes to my notice we will also discuss with them (all concerned) and start all conciliatory approaches and see that maximum justice was done,” he said.

Dattatareya underlined the Narendra Modi government’s commitment to labour welfare. He said, a number of laws, including Industrial Disputes Act, were available to address such issues, adding that state governments also had the right to enact laws.

“So that is why whichever sphere comes to the central level, our conciliatory officers are there. We will ask them to intervene,” he said. The Nokia plant at Sriperumbudur near Chennai suspended operations in November last year for want of orders from Microsoft after the US corporate giant bought the Finnish handset major.

Foxconn India, a major supplier to Nokia, too suspended production at its two facilities at Sriperumbudur from December 22 following a lack of orders in the wake of Nokia India halting production at the facility.

On the issue of the Employees State Insurance Corporation (ESIC) asking state governments to take over medical colleges run by it, he said his ministry was prepared to offer the institutions as “a gift” to the states. The Centre had written to the states, including Tamil Nadu, where such colleges were located to take over their administration, he said, adding Himachal Pradesh and Karnataka had shown an inclination to do so.

The Labour Department had set a “cut-off” date of January 31 this year on the issue, he said. On the concerns raised by students of the colleges about their future, he said, he had already discussed the matter with them, adding that more talks would be held in Delhi.