Finance minister P Chidam-baram is of the opinion that BIFR is not functioning in a manner that meets the governments expectations and there is an urgent need to give a new thrust to its outlook, Arunachalam told reporters.
He was responding to a charge that the BIFR was recommending the closure of more and more units, thus affecting workers interests.
To a question on how the interest of the workers would be protected in view of the number of multi-national companies entering the country, the minister said that the interest of the labour force would be upheld at any cost.
Ever since the process of liberalisation had been initiated by the P V Narasimha Rao government, the number of labour problems and lockouts had declined by 50 per cent, he said.
On the Madras High Court order to wind up the Standard Motors Pvt Ltd, Arunachalam said that labour ministry officials had been asked to submit a report on the status of SMPL workers.
On the closure of one of the units of Premier Automotive Ltd in Mumbai, he said that the labour ministry was trying its best to have a dialogue with the management and workers of PAL. The labour department works on the basis of tripartite agreement only, he said and added that government was trying its best to solve the issue.
About the CPI(M)s difference of opinion on the pension scheme implemented by the Rao government, he said that the scheme was benefiting 85,000 persons at present and so far no adverse remarks had been received about it. Though the CPI(M) had initially resisted, it had helped in passing the bill for the scheme in Parliament on the condition that any anomaly would be taken care of and rectified in future, he said. CPI(M) had urged that individuals should be given the option of opting out of the scheme, but since the government felt that the very purpose the scheme would be defeated by such an option, it had extended group option, he said.