New Labour Codes: Workers oppose, industries seek balance

Manish Gajbhiye

Aurangabad, June 7:

There have been mixed reactions over the provisions of the new labour codes that are likely to be implemented by the union Government soon. Take home salaries of workers will be reduced but the retirement corpus will be augmented. Employers will have to pay at least 50 percent of an employee’s CTC (Cost to Company) as basic pay, due to which the contribution to the other components like provident fund and gratuity will increase. Lokmat Times takes views of the industries and trade union over the issue.

Raman Ajgaonkar,

Chairman, Confederation of Indian Industries, Marathwada Zonal Council: The labour codes are like the win-win situation for both industries as well as the labourers. The industries are always looking after the welfare and benefit of the workers. Now, here is the issue of reward and recognition. The performer will be encouraged and non-performer will be lagging behind.

Kamleish Dhoot,

President, Chamber of Marathwada Industries and Agriculture (CMIA):

The industries have always favoured the benefits to the workers. Workers might have to reschedule their routine expenses as their take home salaries will be reduced. The industries, however, may not be affected. As per the labour code provisions, the industries may be impacted by just net 2 to 3 percent, which is not a big deal. The industries expect that reforms should be brought in organized manner.

Dr Bhalchandra Kango, AITUC leader: All the Central Trade unions in the country have opposed the labour codes and have have approached the International Labour Court (ILO). The labour is the state-list subject but the states have not been taken into consideration and hence there is a possibility of clashes between states over them. The government wants to implement the pro-corporate and capitalists policies. The provisions of the code like fixed term employment will affect the benefit of the workers.

Narayan Pawar

President

Marathwada Association of Small Scale Industries and Agriculture (MASSIA): The labour codes are beneficial for the labourers. The industries will have to pay 60 percent remuneration as basic salaries to the workers which would increase the allocation to provident fund and other retirement benefits. However, the new provisions are not much beneficial for the industries especially the small scale industries as they have limited margin and sometimes even work on losses or no loss no profit basis. So, norms should be relaxed for SSIs.

Subhash Lomte

General Secretary, Maharashtra Rajya Hamal Mapadi Mahamandal:

While bringing in labour reforms, no discussions were held with labour unions. The codes were drafted unilaterally to preserve the interests of the capitalists. The management has been given enormous rights to control the labourers. The workers have to give notices for initiating strikes for their rights. Strikes are not initiated all of a sudden but after prolonged discussions and correspondence with the management. Presently, the working hours are 8 and the owner have to pay extra if workers work beyond eight hours, but this right of the workers is being taken away.