Ministers panel vets Wage Code, Small Factories bills

An inter-ministerial panel today agreed in principal to give go ahead to Labour Code on Wages and Small Factories Bill, which the government wants to push for passage in the forthcoming Budget session.
The group today met to deliberate on the two crucial bills on which tripartite consultations have already been concluded.
After further deliberations on the bills, the panel is expected to finalise them for approval of the Union Cabinet after which their fate would be tested in Parliament.
The group headed by Finance Minister Arun Jaitley today went through detailed presentations on the two bills by the Labour Ministry.

"This was initial presentation. If need be, we will meet further," Jaitley told reporters after the meeting.
When asked, Labour Minister Bandaru Dattatreya said: "This was a preliminary presentation. Then we exchanged views. There is still more to be discussed."

The bills after being cleared by the panel, that also comprises of Power Minister Piyush Goyal, Petroleum Minister Dharmendra Pradhan and Minister of State in Prime Minister's Office (PMO) Jitendra Singh, will be sent to the Cabinet for approval, a senior official said after the meeting.
Pradhan could not attend today's meeting.
The government wants to clear these two crucial bills at the earliest and wants to place them for passage in Parliament in the forthcoming Budget Session, which will commence in February, the official added.

Labour Ministry has proposed to come out with a Wage Code by amalgamating the relevant provisions of the Minimum Wages Act 1948, The Payment of Wages Act 1936, The Payment of Bonus Act 1965 and The Equal Remuneration Act 1976.
The government wants to set a national minimum wage that will have a statutory provision. Currently, each state decides on the minimum wage under its jurisdiction.
Small Factory (Facilitation and Regulation of Employment Conditions of Services) Bill would mainly combine provisions of various labour laws applicable to small factories at one place, thus facilitating ease of compliance and reporting.
The bill proposes payment of wages through bank accounts and continuing provisions of social security without dilution.

All the major central trade unions have been protesting against the Small Factories Bill as it will exempt units with less than 40 workers from 14 Labour Laws and allow them to buy health insurance and provident fund schemes for employees from the open market.
At present, retirement fund body EPFO and ESIC provides these essential social security benefits under the schemes run by them.
The government formed the high-level inter-ministerial committee to evolve a consensus on labour reforms and other issues in May.
Trade unions and government have been at loggerheads over the unions' 12-point charter of demands.