'Policy hurting job creation'

An outdated labour policy has consistently been impeding the twin objectives of creating jobs and attracting investment, Saroj K Poddar, outgoing president of All India Organisation of Employers (AIOE), said today.

"With the expiry of the quota regime in textiles, India is expected to create 1.2 million additional jobs in this sector but the existing labour laws are likely to come in the way," Poddar said at the 71st annual general meeting of AIOE.

He said employment generation is totally dependent on a healthy growth of the Industry.

Stringency of labour laws in India has been diverting global investment to neighbouring countries like China, Taiwan and Singapore.

AIOE, which met on the sidelines of annual general meeting of the Federation of Indian Chambers of Commerce (Ficci), also elected OP Lohia as its new president.

The industrial relations in the country has improved over the year, and the number of industrial disputes have declined by more than 50 per cent between 1993 and 2003. The number of man days lost is approximately 21 million, the meeting was told.

"Lack of appropriate supportive labour policy is coming in the way of revitalising the manufacturing sector, which is the backbone of the economy and is the provider of jobs to a large number, affecting employment generation," Poddar said.

The objective of labour legislation should be to reduce controls and impart flexibility and autonomy to spur competitiveness in the domestic industry, he said.

"Emergence of new sectors of economy has underscored the need for sector-specific laws as the general labour laws cannot address their problems."