The Chapter presents in brief the important labour activities during the year 2006 and 2007.

2 CONFERENCES / MEETINGS

2.1 INTERNATIONAL

2.1.1. The 295th  session of the Governing Body (GB) of ILO, which was  held from 16^th  to 18^th  March, 2006  at Geneva.  Besides other businesses, the ILO Committee on freedom of Association took up complaints submitted to the Governing Body, alleging violations of freedom of association and representations that concern such issues.

2.1.2  The 296^th   Session of the Governing Body of ILO was  held in June, 2006. It discussed a range of issues including the questions arising out of the 95^th Session of the ILC and the report of the ILO Committee on Freedom of Association.

2.1.3   The 297^th Session of the Governing Body  of ILO was held in Geneva from 2^nd  to 17^th November, 2006.  The Committee on Employment Social Policy met on 6^th & 7^th November, 2006 and deliberated, among other things, upon issues related to youth employment, collective bargaining in the context of Decent Work Agenda and the implementation of the Global Employment Agenda.  Besides the Programme, Financial & Administrative Committee of Governing Body met on 8^th & 9^th November, 2006 and discussed, inter alia, the strategy for continued improvement of results based management in the ILO and International Public Sector Accounting Standards.

        The Committee on Technical Cooperation met on 7^th November, 2006 and discussed the progress made in the implementation of Decent Work Country Programme and the follow up to the resolution on technical cooperation adopted by the 95^th Session of the International Labour Conference and the priorities / action plan regarding abolition of child labour.  It also discussed the policy in respect of the resource mobilization for technical cooperation and implementation status.

2.2    NATIONAL

2.2.1 Indian Labour Conference

        The 41^st Session of the  Indian Labour Conference was  held on 27^th and 28^th April, 2007 at New Delhi.  The Conference was inaugurated by Dr. Manmohan Singh, Hon’ble Prime Minister of India on 27^th April, 2007.  Hon’ble Labour Ministers from Central and State Governments attended the meeting along with representatives of the Workers’ and Employers’ organizations to deliberate on the following agenda:

·    Strengthening of Labour Laws and its effective implementation to prevent violations.

·    Payment of Bonus Act

·    Contract Labour (Regulation and &Abolition) Act

·    Measures to improve employability of the youth.

        During the deliberations in the ILC the following four Committees were constituted :

      1.   Committee on 'Strengthening of Labour Laws and its 

             effective implementation to prevent violation'.

2.  Committee on “Payment of Bonus Act”.

3.  Committee on “Contract Labour (Regulation and Abolition)

     Act, 1970”.

4.  Committee on “Measures to Improve Employability of the

     Youth”.

        After in-depth discussions and deliberations in respective Committees, a plenary session was held, in which conclusions of the Committees were presented by their Member Secretaries and adopted.

a)  The First Committee’s Conclusions :

i)   Ambiguities and variations in concepts and definitions used in various labour Acts should be removed.

ii) The Labour Courts should be empowered to enforce recovery.

iii)               Self-Certification, Joint Inspection and Joint Consultative Committee are good models and should be implemented by all.

iv)               The contractors may go but the workers should be allowed to work continuously.

v) The Workers’ Education Board should be strengthened to impart education of labour laws to the workers.

vi)               Fines and punishments should be more stringent for substantive violations than procedural violations.

vii)    The principle of Liberalisation, Privatization and Globalization has come to stay.  There is need to change the mindset of all the stakeholders.

viii)            Worker's legitimate rights should be honoured.  National Wage Policy should be strengthened and implemented.

ix)      Inspection should be relief oriented and accountability based.  Recruitment of Inspectors should be based on merit, aptitude and missionary zeal for hard work.  The norms of work and in built mechanism for performance linked reward should be scientifically decided to motivate workers to achieve the desired results.

x)       The principle of “equal pay for equal work” should find place in the Contract Labour (Regulation and Abolition) Act, 1970.

b)       The Second Committee Conclusions:-

i)   The Central Trade Unions did not favour ceiling on coverage or calculations.  However, for the sake of consensus they accepted the coverage ceiling of Rs. 10,000/- per month and calculation ceiling of Rs. 3500/- per month.  The Government representatives also agreed to this viewpoint.  However, the employers’ representatives insisted on ceiling of Rs. 7500/- and Rs. 3500/- respectively.

ii)  Contract workers engaged in Construction Industry should also be covered.

iii)               Any amendment in the Payment of Bonus Act, 1965 should not be made applicable retrospectively.

iv) For further discussions, it was suggested that recovery procedures for minimum bonus payment may be simplified.  All employees, all industries irrespective of number of employees and non-competitive Public Sector Undertakings should be covered under the Act.  Those organization who are in position to pay should pay higher rates of bonus.

c)     The Third  Committee Conclusions:-

      There was urgent need to prevent exploitation of contract labour.  Therefore, the provisions of the Act should be implemented in letter and spirit, and the regulatory mechanism strengthened.  The success and failure stories of implementation of the Act documented and the stakeholders sensitized for constructive progress. Wherever, EPF and ESIC are applicable, deductions should be effected from contractors’ bills and deposited by the Principal Employers.  A Tripartite Committee should examine the grant of gratuity to the contract workers.

d)     The Fourth Committee Conclusions:-

        More than 50% of our population is below 25 years.  We should make optimum use of this demographic dividend.  But employable skills for wage and self employment can make them productive.

        Vocational Training (VT) should begin at school level and industry, Private Public Participation and tripartite models should be developed.  Emerging potential trades like Hospitality, Tourism, Retail, Food Processing, Nursing, Construction, Textile should be included under Craftsmen Training Scheme (CTS) and the trades should be enlarged to as many as feasible.

        The Apprentice Act, 1961 should be reviewed to make it demand responsive and the trades and establishments under this Act should be enlarged.  Modular approach should be adopted for multi-skilling of  workers.  Quality improvement in training must be made by augmenting existing infrastructure.  A system of employment opportunities forecasting should be developed through demand mapping at micro level.

        A large number of training institutions should be developed by creating a suitable policy mix and quality of training improved to the international standards.

        Training courses for trades in informal sector should be developed.  Training must be made demand responsive in consultation with the industry and trade bodies.

        The institution for training of instructors should be increased along with the quality of the training.  Training should also be imparted in soft skills like communications, attitudinal development, entrepreneurial development and computerization.  National Council for Vocational Training and Central Advisory Council should be made more effective and they should monitor the quality of Vocational Training through frequent meetings.

        The Ministry of Labour & Employment should be made nodal Ministry of VT and Employment.  A policy should be evolved to employ on priority the skilled unemployed.  More investment in agriculture and informal sector would enhance employment and stop migration.  Part of 3% cess on education should be defrayed to pre employment/vocational institutional training.  Seating capacity in different trades in these institutions may be increased by 25%.  Trades under Craftsman Training Scheme /Advanced Training Scheme should be regularly reviewed to drop irrelevant trades.

2.2.2 Social Security Scheme for Unorganised Sector

          The Government has launched  ‘Unorganized Sector Workers’ Social Security Scheme, 2004 on a pilot basis in 50 districts of the country. The scheme envisages three benefits i.e. old age pension, medical insurance and personal accidental insurance.  However, the scheme was not found viable as it had no statutory backing, it was voluntary in nature and the contribution  from the employers  was not forthcoming.  The national Common Minimum Programme (NCMP) of the present Government highlights the commitment of the Government towards the welfare and well being of all workers, particularly, in the Unorganised Sector.

        The Government (Ministry of Small Scale Industries) has also constituted a National Commission for the Enterprises in the Unorganised Sector (NCEUS) under the Chairmanship of Dr. Arjun Sengupta to examine the problems facing enterprises in the unorganized/informal sector and make recommendations to provide technical, marketing and credit support to these enterprises and also to review the social security system available for the unorganized sector workers and make recommendations for expanding their coverage.  The Commission presented its report on the Social Security for the Unorganised Sector Workers in May, 2006.

2.2.3 Central Advisory Board Meeting on Wages :

        All States and Union Territories have been asked to take following steps for implementing the recommendations of the Wage Boards:

·          Creation of special cells in the State/Union Territories to oversee the progress of the implementation of awards.

·          Constitution of a Tripartite Monitoring Committee to monitor the progress of implementation.

·          Gearing up of the State Labour Enforcement Machinery for speedy implementation of the recommendations.

·          Submission of quarterly progress reports to the Ministry on implementation of the recommendations commencing from the quarter ending 31-03-2001.

        A Central Level Monitoring Committee has also been constituted under the Chairmanship of Labour & Employment Adviser, Ministry of Labour & Employment for reviewing the implementation of the recommendations.  Other members of the Committee are Joint Secretary, Ministry of Information and Broadcasting, Chief Labour Commissioner (Central) and Director-in-charge of Wage Board Section in the Ministry as the Member Secretary. 

2.2.4  V.V. Giri National Labour Institute :

        The Training Programmes organized by the Institute during October, 2006 to March, 2007 are given below:- 

SlNo

Name of the Programme

Number of Programmes

1.

Labour Administration Programmes

7

2.

Industrial Relations Programmes

7

3.

Capacity Building Programmes

12

4.

Child Labour Programmes

5

5.

Research Methods Programmes

2

6.

Health Issue Programmes

2

7.

International Programmes

3

        The institute has also undertaken new initiatives which inter-alia include Networking with State Labour Institutes/Other Institutes in conducting the training programmes. 

3. LABOUR RESEARCH AND STATISTICS

        A major part of work relating to collection, collation and publication of facts and figures  on labour matters on All India basis is being carried out by the Labour Bureau.  Besides collecting, analysing and publishing data on employment, wages, earnings, industrial disputes, absenteeism, labour turnover and working conditions, the Labour Bureau also conducts surveys and research studies on various aspects of labour.  The regular publications of  Bureau include the monthly publication ‘Indian Labour Journal’ and  annual publications  ‘Indian Labour Year Book’, ‘Indian Labour Statistics’ and ‘Pocket Book of Labour Statistics’.  The Bureau also brings out annual reports on the working of important Labour Acts.

        Consumer Price Index (CPI) Numbers for Industrial Workers ( 78 selected centres and All India) on base 2001=100 had been released with effect from January, 2006 index and are being compiled, released and  published regularly every month.   The Bureau is also bringing out two series of CPI Numbers on base 1986-87=100 separately for Agricultural and Rural Labourers for 20 States and All-India.  Some of the major continuing projects of the Labour Bureau are discussed below:-

Retail Price Indices  For 31 Essential Commodities :

          The Bureau is regularly compiling Retail Price Indices for 31 essential commodities using the price data collected for compilation of Consumer Price Index Numbers for Industrial Workers on base 2001=100.

Wage Rate Index :

          The wage rates indices (base 1963-65=100) in respect of 21 selected industries have been finalised upto the year 2004.  The processing of data and compilation of indices for the year   2005, 2006 and 2007 is in progress. The exercise to update the base of these indices to a recent period has also been taken up.

Consumer Price Index Numbers for Industrial Workers on base 2001=100 – New Series

        The Labour Bureau had released the new series of the Consumer Price Index Numbers for Industrial Workers on base 2001=100 with effect from January, 2006 index. The CPI-IW on base 2001=100 series has replaced the previous series of CPI-IW  on base 1982=100.  The new series reflects the latest consumption pattern of the industrial workers.

        The Linking Factor for conversion of new series index to previous series on base 1982=100 is 4.63.

Occupational Wage Survey  :

          The Occupational Wage Surveys,  inter-alia, aim to provide data base for studies relating to inter-industry, intra-industry and inter-regional differences in wages and earnings and for updation of the base of Wage Rate Index series.

        After completing the survey in 53 industries the reports in respect of all industries of the 5^th round of Occupational Wage Survey (OWS) have been released. The field survey in respect of four service sector industries of 6^th round of OWS has been completed and the report has been released.  Further the reports on three Plantations – Tea, Coffee and Rubber and Tea Processing Industry has been released.  The report in respect of Four Mining Industries is under finalization and data entry in respect of Five Textile Industries have been completed and tabulation of data is in progress under the 6^th Round of OWS.  The field survey in Readymade Garments Industry under the 6^th Round of OWS is in progress. 

Rural  Labour Enquiry :

        The survey part of the Rural Labour Enquiry (RLE) Scheme aims at studying the socio-economic characteristics of Rural/Agricultural Labour Households with a view to formulate policies for ameliorating the conditions of Agricultural and Rural Labour.

          The latest RLE,  seventh in the series, was conducted during 55^th round (July 1999 to June 2000) of NSSO.    The    report  on “Employment and Unemployment (1999-2000)" is being released and  Annual  report on “Wage Rates in Rural India” for the year 2005-2006 have also been released.  Preparation of text tables for RLE, (2004-2005) report on Employment and Unemployment is in progress. 

Collection of Labour  Statistics Under the Annual Survey of Industries (ASI):

Labour Statistics relating to (i) Absenteeism (ii) Labour Turnover (iii) Average earnings by components per unit of time (iv) Labour Cost and (v) Employment are being collected through the Annual Survey of Industries (ASI) conducted on sample as well as on  Census basis in manufacturing industries.

Under ASI (Census and Sample), the reports on Statistics on Employment and Labour Cost Vol.I(2004-2005) has been released.  The Report on Absenteeism Labour Turnover, Employment and Labour Cost Vol.II (2004-2005) is under printing.

Socio-economic Surveys of Different Segments  of  Labour

        Under this scheme following types of surveys are being conducted.

i) Survey of Working & Living Conditions of Workers in Unorganized Sector of Industries/ Employments:

        The main survey in Leather Industry covering Footwear and other Art Works has been completed and the data relating to same  is under tabulation.

ii) Evaluation Studies on Implementation of The Minimum Wages Act, 1948 :

The report in respect of Stone Breaking and Stone Crushing Industry in Rajasthan has been released whereas the another survey in Gujarat and Karnataka States was completed and data is under tabulation

iii) Survey on the Working and Living Conditions of Labour belonging to the Scheduled Castes and Scheduled Tribes :

        Tabulation Plan for unit level and worker level data relating to ST Survey in Gujarat ST belt has been finalized, data tabulated and report prepared and is under finalisation.

iv) Survey on the Socio-Economic Conditions of Women Workers In Industry :

        Survey on Food Processing Industry including Sea Food and Marine Products has been conducted and data has been finalised. The report is under printing. Frames for next survey in plantation sector have been collected and the survey is being planned. 

Contract Labour Survey :

        The survey on Contract Labour in Air Transport Sector has been completed and the report has been finalised.  Preparatory work for conducting the next survey in Banking Industry as well as Business Processing Organisations (BPO’s) is in progress.

Training in Labour Statistics :

        The Regional Office of the Bureau functioning at  Kanpur actively collaborate with the State/UT Govts. in the Northern Region in conducting  training programmes at industrially important places for bringing improvements in Labour Statistics.

Other activities of the Bureau :

Following reports/reviews were also finalised/brought out during the years 2006-2007.

1. A.S.I. Statistics on Employment & Labour Cost for the year 2003-2004 (Vol. I). (separately for Census and Sample Sectors ).

2. Report on Tea Processing Industry under the 6th round of O.W.S.

3. Report on Plantation Industries under the 6^th round of O.W.S. 

4. Annual Reviews for the year 2004 pertaining to;

   a)      Maternity Benefits Act, 1961,

   b)      Workmen’s Compensation Act, 1923,

   c)      Motor Transport Workmen’s Act, 1961

   d)      Plantation Labour Act, 1951. 

5.     Pocket Book of Labour Statistics – 2006.

6.   Statistics on Industrial Disputes, Closures, Retrenchments and Lay-offs for the year 2005.

7.   Wage Rates in Rural India for the Agricultural Year, 2005-2006.

8.     Indian Labour Statistics for the year 2005.

9.   Working Class Family Income and Expenditure Survey – 1999-2000 - The reports for Kolkatta, Chennai, Delhi, Mumbai, Ahmedabad and Bangalore Centres have been released.  Other 15 reports for Coimbatore, Surut, Nagpur, Pune, Sholapur, Chandigarh, Amritsar, Badodara, Bhilwara, Bhopal, Hubli Dharwar, Ajmer, Jaipur, Ernakulam- Alwaye and Quilon Centres have been printed and are ready for release.  Fifty Seven reports have been approved and are at various stages of  printing.  Drafting of the All-India General Report has been completed and the same is under finalization.

10.  The Minimum Wages Act – Annual Report for the year 2003 was released.

11. The Factory Act 1948 – Annual Review for 2001 has been released. 

4.  SOCIAL SECURITY :

Under the Employees State Insurance Scheme the following achievements have been made:-

·          Ceiling for commutation of partial disablement benefit has been raised from the existing Rs. 10,000/- to Rs. 30,000/- w.e.f. 19-04-2003 in case the daily rate of benefit is upto Rs. 5/-.

·          Enhancement of ceiling of expenditure on medical per insured person per annum from the existing Rs. 650/- to Rs. 750/- per insured person w.e.f. 01-04-2004

·          Employees earning upto Rs. 50/- a day are exempted from payment of ESI Contribution w.e.f. 01-04-2004.  The employers’ share of contribution is, however, payable.

·          Confinement expenses for child delivery without utilizing ESI Medical Service have also been increased from Rs. 250/- to Rs. 1000/- w.e.f. 24-01-2004.

·          The wage ceiling for coverage of employees under the ESI Act has been enhanced from Rs. 6500/- to Rs. 7500/- w.e.f. 01-04-2004.

·          Four more slabs have been added to the Daily Standard Benefit rates to sickness benefit to the existing 28 slabs ranging from Rs. 125/- to Rs. 145/- w.e.f. 01-04-2004.

·          The Corporation has now introduced ‘ Rajiv Gandhi Shramik Kalyan Yojna’ for  insured persons who face involuntary unemployment w.e.f. 1st April, 2005.  The insured persons under the scheme are entitled to an unemployment allowance for a period of upto six months equal to almost half the wages