BJP-led govt faces challenge to convince Shiv Sena, BMS to push labour reforms in Maharashtra

However, industry bodies say the reforms are a must for the sake of ease of doing business

The Bharatiya Janata Party (BJP)-led government in Maharashtra faces opposition from its junior partner Shiv Sena (SS) and its trade union wing Bharatiya Mazdoor Sangh (BMS) over its plan to introduce labour reforms. Both have alleged that the government’s move was pro-industry and against workers and they will soon launch separate agitations in the state.

However, industry bodies, including Federation of Indian Chambers of Commerce and Industry (Ficci) and Indian Merchants’ Chamber (IMC) want that the government should not further delay labour reforms, which are essential for enhancing ease of doing business and thereby push Make in Maharashtra initiative.

The state government plans to amend the Industrial Disputes Act of 1947 to allow factories with less than 300 workers to lay off staff or close down without a government nod. Further, smaller industries might be excluded from the provisions of the Factories Act, 1948 and the Contact Labour Act of 1970 will be amended, whereby units with 50 or more workers instead of present 20 or more contract workers will have to register with  the government.

The Shiv Sena’s labour wing, the Bharatiya Kamgar Sena (BKS), has threatened to launch an agitation. BKS Chairman Suryakant Mahadik told Business Standard: ''The Modi-led government’s Make in India or Chief Minister Devendra Fadnavis’ call for Make In Maharashtra cannot succeed without active support of the labour community. It is quite ironical that both the governments are eager to safeguard the interests of the industry and not of workers. The BKS will oppose any such move, though the Sena is a part of both the central and state governments.''

BMS Zonal Organizing Secretary Neeta Chobe said her organisation has already launched its agitation against the BJP-led government in Rajasthan on the issue. “The BMS will make its representation to the Maharashtra government and it is open to start an agitation if the government remains firm,'' she added.

Rashtriya Mill Mazdoor Sangh  president Sachin Ahir insisted that the government should not work in a haste but take all the stake holders into confidence.

Ficci’s former chairman of western region Sushil Jiwarajka argued there was  a need to increase limit to 300 from 100 employees for granting permission for closure of a unit. The limit of 300 was existed prior to 1975 and was later reduced to 100. ''Under the Contract Labour Act, compensation payable on termination be increased instead of making employees permanent and a 14-day notice should be made compulsory for strike/lock out so that there is adequate time for a negotiated settlement,'' he opined.

IMC Director-General Arvind Pradhan said the Maharashtra government should carry out aggressive labour reforms on the lines of Rajasthan. ''We support the state government’s initiative, as labour reforms are a must in a state like Maharashtra, which is the industrial hub of India. The industry should not be under any compulsions to go back to the government if it is only employing 300 labour for its closure. The exit policy should be clearly defined,'' he noted.