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Sounder Rajan V (Advocate)     23 December 2010

CHANGES IN CONTRACT LABOUR LAW?

Sub: Union Government open to Changes in Contract Labour Law[CLRA] .


Dear All

As per the report of the Premier Press Organization in India Press Trust of India [PTI] in its report dated 22-10-2010 published in the Business Standard of 23 rd October 2010 Hon’ble Minister of State for Labour and Employment Mr Harish Rawat addressing a seminar on 'Management of Contract Labour in PSEs'[Public Sector Enterprises] organized by Standing Conference of Public Enterprise expressed concerns over denial of statutory benefits to contract labour, and said the government would proceed on amendments to the law for such workers with an open mind.


"As far as amendments to the Contract Labour (Regulation & Abolition) Act, 1970 are concerned, we will proceed with an open mind," Mr Rawat said Industry has been demanding for long that the Section-10 to the Contract Labour (Regulation & Abolition) Act 1970 should be dispensed with but indicated that on the contrary, the Unionists think the other way round. He indicated that under Section 10 the Government can identify any process, operation or other work in an establishment, where it can prohibit any employment of contract labour and pointed out that the act is aimed to abolish and regulate contract labour.

Asked whether, any amendment bill for making changes in the Act is expected to be tabled in the forthcoming winter session, Mr Rawat said, "We are preparing the draft bill which is unlikely to be tabled in the next Parliament session."

The Minister urged the public sector to be a role model employer and to show a pathway to the private sector in implementing government regulations on labour.

Echoing similar views, Labour Secretary P .C .Chaturvedi said, "The law (for contract labour) has lost its spirit. There was an intention to reduce labour law over period of time, but it happened the other way round."
"Everybody is employing contract labour to reduce cost. But cutting cost does not mean exploitation of labour. It should be done by increasing productivity by modernization, best practices and using best technology," he said.

Mr Chaturvedi said, "Now public sector is using contract labour to cut cost and such workers are treated as second grade citizens."

"It is the PSUs, which should show the way to private sector. If the contract workers are treated with human face, the demand of regularization (of employment) would mellow down," he added.

On this occasion, Director General SCOPE U D Choubey said: "There are plethora of social security laws in India and SCOPE endorses the views of the government that welfare of the workers is a real concern as large number of people in the country are living below poverty line."

We support the views of the Minister and Labour Secretary P C Chaturvedi that there should be a balanced approach.

We eagerly await the draft legislation   shortly .

With Regards

V.Sounder Rajan
VS Rajan Associates,
Advocates & Notaries & Legal Consultants
No.27, Ist Floor, Singapore Plaza,
No.164, Linghi Chetty Street,
Chennai - 600 001.
E-mail : rajanassociates@eth,net,
Off : 044-42620864, 044-65874684,
Mobile : 9840142164-9025792684-9025792634



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 3 Replies

Shreyas Zinjarde (Advocate/Consultant)     23 December 2010

Contract Labour is being used to cut down all costs and liabilities  including minimum wages, PF, ESI, Bonus

darshana sawant (associate consultant)     28 December 2010

One way to stop the exploitation of contract labour could be introduction of  schedule of minimum wages meant only for contract employees.  They could be higher and would help in getting better workforce, because the need for a floating workforce in the establishment is a reality. 

Sounder Rajan V (Advocate)     28 December 2010

Darshana Sawant has really given a good suggestion.


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