Ministerial Consensus Over Changes In Disputes Act
Barring few areas like lock-out, lay-off and outsourcing of labour, a group of ministers (GoM) has narrowed down the differences and reached a consensus on most of the amendments to Industrial Disputes Act 1947. The amendments include bipartism to minimise government intervention in workers-employers dispute by providing an elaborate in-house grievance ventilation and redressal mechanism with simplification and rationalisation of procedures.
The new Act will be known as Industrial Relations Act to promote harmonious relationship between workers and employers.
Sources told Business Standard the amendments proposed a substantially enhanced retrenchment compensation of 45 days average pay for every completed year of service, up from the present 15 days.
A person drawing over Rs 10,000 per month will be excluded from the definition of workman. Also, civilian government employees and employees governed by analogous rules will be excluded from the definition of workman.
Sources said the consensus was yet to be reached in three to four issues like lay-off, lock-out, outsourcing of labour, protection of contract labour and size of workforce to include a company under Industrial Relations Act. The terms and conditions of contract labour are likely to be made more attractive, especially in public sector undertakings, to discourage the option of regular labour.
Planning Commission deputy chairman K C Pant, also the chairman of the GoM, will hold a meeting with the members soon to sort out the differences in these three to four areas and reach a final consensus on the Industrial Relations Act. Pant is pushing hard to wipe out these differences.
Members of GoM are IT minister Pramod Mahajan, heavy industry minister Manohar Joshi, labour minister Satyanarayan Jetia, commerce and industry minister Murasoli Maran and power minister Kumaramangalam.
The proposed amendment to Industrial Disputes Act 1947 said that special provision for layoff, retrenchment and closure to be made applicable to factories, mines and plantations employing not less than 1,000 workers.