How Would You Shape the New Labour Code on Industrial Relations? Share Your Thoughts by May 26!

MOST IMMEDIATE/ MEETING NOTICE

F. No. Z-20025/26/2015-LRC

Government of India

Ministry of Labour and Employment

Shram Shakti Bhawan, Rafi Marg, New Delhi dated, the 27th April, 2015.

Subject: Draft Labour Code on Industrial Relations - reg.

The Ministry of Labour & Employment has decided to draft the ‘Labour Code on Industrial Relations,’ which is proposed to be made after the amalgamation of the following Labour Laws:

- The Trade Unions Act, 1926
- The Industrial Employment (Standing Orders) Act, 1946
- The Industrial Disputes Act, 1947

Now, suggestions/comments are invited from all concerned/stakeholders on the Draft Labour Code on Industrial Relations. Your suggestions must reach Shri S.K. Tripathi, Under Secretary, Ministry of Labour & Employment, Room No-17, Shram Shakti Bhawan, New Delhi (Tel FAX No-23766937 E-mail: [Email Removed For Privacy Reasons]) latest by 26th May, 2015, positively.

Yours faithfully,

(S. K. Tripathi)

Under Secretary to the Government of India

Telefax No- 23766937

Email ID: [Email Removed For Privacy Reasons]

Source:

Home -: Ministry of Labour and Employment, Government of India <link outdated - home link added>

Unions Oppose Changes to Labour Laws

NEW DELHI, MAY 3: Trade unions are up in arms over the Labour Ministry’s proposals to allow firms with up to 300 workers to retrench employees without prior permission from the government and make it tougher to form a trade union.

The proposals are part of the draft Labour Code on Industrial Relations Bill, 2015, prepared by the Labour Ministry to combine the Industrial Disputes Act, 1947, the Trade Unions Act, 1926, and the Industrial Employment (Standing Orders) Act, 1946.

Central trade unions, including the BJP-backed Bharatiya Mazdoor Sangh (BMS), are planning to protest strongly against the proposals.

“We will protest against this provision under which firms will not have to take prior permission for retrenchment under the draft Labour Code on Industrial Relations Bill 2015,” Bharatiya Mazdoor Sangh Zonal Organising Secretary Pawan Kumar told PTI.

At present, firms employing 100 or more workers are required to seek the government’s permission for retrenchment under the Industrial Dispute Act.

“We will also oppose the proposal to make it tougher to form trade unions. Our President BN Rai will attend the tripartite consultation on the bill on May 6. The union is unanimous in opposing the government’s proposal,” he said.

At present, any seven or more members of a trade union can apply for registration of the Trade Union.

The proposed provision in the draft code provides that 10 percent of workers shall apply (be applicants) for registering a trade union.

In cases where 10 percent of workers is less than 7, at least seven workers are required (to apply) for the purpose, and where the 10 percent of workers exceed 100, one hundred workers shall be sufficient for registering the trade union.

“We have been opposing this when it was being implemented in Rajasthan. We will oppose it at the May 6 meeting. They cannot make the law stringent for forming trade unions,” Hind Mazdoor Sabha Secretary A D Nagapal said.

“When the Rajasthan Government had sent the state bill with the provision (retrenchment) for Presidential assent, then Labour Minister Narendra Singh Tomar assured us that it would not be done. But now they want to amend the central law, which would be applicable to the entire country,” he added.

All India Trade Union Congress Secretary DL Sachdev said, “We will strongly oppose the proposal to exempt firms with up to 300 employees from seeking permission from the government to retrench and new provisions which would discourage the formation of trade unions in India.”

He suggested that the government should constitute a tripartite committee with employees’ and employers’ representatives on board, along with experts, to study the bill in detail before firming up the draft bill.

Regards

Dear all, I need your comments on this bill. As I have gone through the complete bill and being a representative of the employer, we have certain objections which will be taken up in the concerned forum. Still, I need more suggestions so the same can be taken up with the Government of India.

Definition of Employer

1. The definition of an employer is totally copied and pasted from the Factories Act, which is welfare legislation. In this act, an employer means a person who employs directly or indirectly in his establishment. It means that even persons who come for one day to do a certain job are also our employees. Even a contract worker is considered our employee in case of any dispute.

Definition of Worker

2. The definition of a worker needs to be amended with a salary limit. If a person is doing any type of job, whether manual, clerical, skilled, or unskilled, and is receiving a handsome salary, then he should not be called a worker.

Registration of Trade Union Norms

3. Registration of Trade Union norms needs to become stricter. Currently, you can have 10 unions registered in your organization, so the concept of multiplicity of unions will again gain traction.

Application Period for Industrial Disputes

4. The application period for raising an industrial dispute is three years or unlimited if the individual satisfies the authorities, whereas it should have a limit of one year.

Penalty Clause

5. The penalty clause is very stringent, and trade unions can take advantage of it. If you have not followed the retrenchment process in a particular case, the penalty can be 10 lakh rupees.

We do not understand if the Modi government aims to promote industrialization or wants to finish the industry.

Regards