Labour meet proposes social security schemes for workers

No consensus as yet on social security code

Even though the Indian Labour Conference (ILC) could not build a consensus on forming a labour code on social security schemes, it recommended a slew of measures to broaden their coverage.

The two-day conference, a tri-partite platform of trade unions, industry and the government, concluded here on Tuesday with a series of recommendations.

It recommended that Employees' State Insurance Corporation (ESIC) coverage be expanded to include the unorganised workers by reducing the threshold of coverage. At present, firms with 10 workers are covered under this law and the Union labour ministry will reduce this threshold limit. On-site construction workers will soon become a part of the ESIC Act.

At present, construction workers directly hired by a factory, those who work on the premises of a factory, and technical workers such as engineers get health benefits from ESIC. However, workers hired through agencies or those working on a construction site are not covered.

Besides, a medical scheme for Employees' Provident Fund (EPF) pensioners has been recommended. The ILC also recommended a long-pending demand of the trade unions to link the EPF pension with inflation.

"EPF pension should be enhanced and linked with price index," said the recommendation.

However, the labour code on social security might be delayed. The Union labour ministry is in the process of clubbing 44 labour laws into five codes - a move opposed by the trade unions.

"A consensus couldn't be built on the social security code and it might get delayed. We had anyway not started drafting this code and it might take another six months for us to do so," said a senior labour ministry official on condition of anonymity. Sources said trade unions strongly protested the move to form a code on social security.

The ministry had planned to integrate five Acts on social security - The Employees' Provident Fund and Miscellaneous Provisions Act, The Employees' State Insurance Act, The Employees' Compensation Act, The Payment of Gratuity Act, and The Maternity Benefit Act - into a single code.

The ILC expressed concerns over the non-implementation of the conclusions of the previous ILCs specifically those on contract labour, minimum wages and tripartite consultations. This has been one of the reasons why trade unions are at loggerheads with the Union government.

"This is a clear signal that tripartite consultations didn't take place and there was no movement on the recommendations of the previous ILCs even after the new government took charge," said D L Sachdeva, national secretary, All India Trade Union Congress.

The ILC-recommended labour law amendments would take place only after discussions in tripartite forums. "The overall exercise of labour law amendments should be discussed in the tripartite forums and the board and the special proposals should also be discussed in tripartite meetings," said a recommendation.

Union labour secretary Shankar Aggarwal said the labour ministry has been moving forward in its amendment in a tripartite manner and there will be no re-look into the proposed amendments. "We have held several tripartite meetings to discuss the amendments. We will continue with our proposals and we will try building a consensus on them."

However, sources said the labour ministry might increase the number of tripartite meetings to discuss the proposals. The Union labour ministry has so far proposed codes on wages and industrial relations. The industrial relations Bill proposed to ease retrenchment rules and tighten the norms to form trade unions.

There wasn't a unanimous view on the amendment to Payment of Bonus Act in the ILC. The trade unions have been pressing for the removal of all ceilings under the Act to calculate bonus. However, employers were of the view that this might "lead to a spurt in industrial relations issues". According to sources, the Union government has already prepared a Cabinet note to amend this Act. The Union government has proposed to empower itself to notify the limits for eligibility of bonus and its calculation through administrative process and not by changing the Act.

ILC RECOMMENDATIONS

• Employees' State Insurance Corporation (ESIC) coverage be expanded to include the unorganised workers by reducing the threshold of coverage
  

 

Medical scheme for Employees' Provident Fund (EPF) pensioners
 

Linking the EPF pension with inflation
 

Clubbing 44 labour laws into five codes - a move opposed by the trade unions
 

Labour law amendments would take place only after discussions in tripartite forums
 

Special proposals might also be discussed in tripartite meetings
 

There wasn't a unanimous view on the amendment to Payment of Bonus Act in the ILC. The trade unions have been pressing for the removal of all ceilings under the Act to calculate bonus