Demand for removing wage cap for bonus likely on ILC agenda

Prime Minister Narendra Modi will inaugurate the 46th Indian Labour Conference scheduled on July 20-21

Removal of wage ceiling for payment of bonus and exempting small and medium units from obtaining licence to operate are the issues that may be part of the agenda for discussion at the 46th Indian Labour Conference (ILC) to be held this month.

"Prime Minister Narendra Modi has agreed to inaugurate the the 46th ILC scheduled on July 20-21. Earlier there were plans to hold the conference on July 17, but it was pushed back due to Eid-ul-Fitar which may fall on July 17 or 18th," Bharatiya Mazdoor Sangh General Secretary Virjesh Upadhyay told PTI.

"In January 2014, the agenda for next ILC included deliberations on the demand for removing wage ceiling for payment of bonus and exempting small units from obtaining license to operate under various laws."

At present, the employees employed on wage or salary of up to Rs 10,000 per month are entitled to bonus under the Payment of Bonus Act, 1965. It is proposed under an amendment bill of the Act to increase the cap to Rs 20,000 per month.

Stakeholders however want the ceiling removed altogether.

As far as improving compliance by the small units is concerned, the government has drafted Small Factories (Regulation of Employment and Conditions of Services) bill. The proposed law exempts factories with less than 40 workers from 14 major labour laws.

However, Upadhyay said: "The meeting of the Standing Labour Committee which sets the agenda for ILC will meet on July 10 to finalise the agenda."

This conference is significant in view of ongoing protests by trade unions against the certain proposed amendments that are part of NDA government's labour reforms for improving ease of doing business to give a push to the 'Make in India' initiative.

The unions have strongly opposed some of the amendments that include norms related to easing retrenchment, lay offs and closer of units provision and forming unions under the proposed New Industrial Relations Code.

As many as 11 trade unions, including BJP-backed Bharatiya Mazdoor Sangh, will observe nationwide strike on September 2 against various issues.

The ILC provides the government its suggestions after holding comprehensive discussions that cover wide range of labour issues.

During the 10-year long UPA regime, the government called six labour conferences. The NDA government had called five labour conferences during their term from 1998 to 2004.

ILC, known as the 'Labour Parliament', provides platform to employers' and employees' representatives to share their ideas, reservations and suggestions with the government to improve industrial relations in the country.