As trade unions plan strike, govt mulls worker reskilling fund

Plan aimed at appeasing trade unions which are planning a nation-wide strike against the proposed changes in labour laws

A reskilling fund for retrenched workers is being considered by the Union labour ministry as one measure to pacify restive trade unions, which are threatening a national strike on the proposed liberalisation in labour laws.

It could be formed, said labour ministry officials, by a deduction from their wages. “We will hold a dialogue to discuss the broad framework of this proposal,” said an official.

“This has worked in countries such as China, where there is a system of re-training people so that they are capable enough to get a job," said an industry representative, on condition of anonymity. The government has drafted an industrial relations code to combine three existing laws, with changes – the Industrial Disputes Act, Trade Unions Act and Industrial Employment (Standing Orders) Act. One proposal, strongly opposed by TUs, is for allowing units with up to 300 workers to retrench without official sanction. At present, only factories with up to 100 workers are allowed to do so.

The government has held two meetings in a month with central TUs. On Friday, power minister Piyush Goyal, petroleum minister Dharmendra Pradhan and labour minister Bandaru Dattatreya met the unions. Jayant Sinha, the minister of state for finance, had a similar meeting on April 23.

However, the unions are not satisfied with the outcome and will possibly hold a strike by the end of June. A decision regarding the duration will be announced after a national convention on May 26. “We want to give the government a month’s notice,” said G Sanjeeva Reddy, president, Indian National Trade Union Congress.

This will be the fourth strike called by the 11 central trade unions since 2010, said

“The motive behind the recent meetings organised by the government was to stop us from holding any strike,” said A K Padmanabhan, president of the Centre of Indian Trade Unions, said disagreeing with the idea of a  retrenchment fund.

“We have been constantly fighting for our 10-point charter of demands. We have also held a nationwide programme and the government has not responded properly. We have demanded strict enforcement of the existing labour laws; instead, they are amending these,” said B N Rai, president of the Bhartiya Mazdoor Sangh, which is otherwise supportive of the ruling Bharatiya Janata Party. He, however, said creation of a fund for retrenched workers was not a bad idea.

STRIKE THREAT

• Trade unions against govt’s new industrial relations code
   
• New law to combine the Industrial Disputes Act, Trade Unions Act and Industrial Employment (Standing Orders) Act and some changes
   
• Unions strongly against allowing units with up to 300 workers to retrench without official sanction
   
• Unions have not backed off despite meeting with ministers
   
• Unions plan to hold strike by the end of June; decision on May 26