The Chapter presents in brief the important labour activities during the year 2007 and 2008.

2 CONFERENCES / MEETINGS

2.1 INTERNATIONAL

2.1.1            The 298^th  Session of the Governing Body (GB) of ILO was held from 8^th to 30^th  March, 2007 at Geneva.  Besides other business, the different Committees constituted by the Governing Body of the ILO discussed the following issues.

i)            The Committee on Freedom of Association set up by the Governing Body at its 117th session (November 1951) met at the International Labour Office, Geneva on 8-9 March, 2007.  It took up complaints submitted to the Governing Body, alleging violations of freedom of association and representations that concern such issues.

ii)          The Committee on Legal Issues and International Labour Standards met on 23rd March, 2007.  It discussed the practical arrangements for the discussion, at the 96th Session (June, 2007) of the International Labour Conference, of the Global Report prepared under the follow up to the ILO Declaration on the Fundamental Principles and Rights at Work.  It also discussed the Status Report on ILO action concerning discrimination in employment and occupations.

iii)         The Committee on Employment in Social Policy met on 20th, 21st and 22nd March, 2007. The Committee discussed the implementation of the Global Employment agenda including the modalities for evaluation of the Global Employment agenda including the modalities for  evaluation of the Global Employment Agenda in the context of Decent Work Country Programmes.  It also discussed the issue of enhancing employability by improving knowledge and skills, wages around the world, informal economy and poverty reduction strategy papers.

iv)         The Committee on Technical Cooperation met on 20th March, 2007.  The Committee discussed the operational aspects of the International Programmes on the elimination of child labour and Technical cooperation in the context of Decent Work Programmes.

v)          The Subcommittee on Multinational Enterprises met on 23rd March, 2007.  It endorsed the draft programme, as amended in light of the discussion in the Subcommittee, concerning the 30th anniversary of MNE Declaration and approved the development of EMP/MULTI of an Office programme.

On the conditions outlined by the Subcommittee to the 297th and 298th Sessions of the ILO GB, to provide companies with expert advise on the realization of international labour standards and the MNE Declaration and that the Office seek to augment this work by extra-budgetary financing.  It also approved the recommendation to reorient the strategic priorities in line with the priorities identified in the discussion of the Subcommittee and request the Office to finalize a report on the level of involvement and participation of ILO constituents in the Global Compact local networks.

vi)         The Working Party on Social Dimension of Globalisation met on 26th March, 2007.  The Working Party held a lengthy discussion based on a joint study by the ILO/WTO Secretariats on trade and employment policy. Smt. Sudha Pillai, Secretary (Labour & Employment), India, actively participated in the deliberations.

Secretary (Labour & Employment) thanked both the ILO and WTO Secretariat for their joint study and acknowledged it to be a very important initiative and welcomed if further studies were commissioned, following the recommendations that had emanated from the study.

She highlighted that joint study identified certain situations in which governments interventions would be helpful by discussing different types of labour and social policies, which could have appropriate efficiency effects.  Secretary (Labour & Employment) shared with the panel an India-specific study, which endorsed some of the conclusions of the joint ILO/WTO study.  She observed that India had actually done extremely well in the services sector and in the IT and IT-enabled services sector.  There is room for growth, as only 10 per cent of the potential had so far been realized.  In closing remarks, she also urged the ILO to take initiative in developing an international standard on skills portability.

2.1.2            The 299^th  Session of the Governing Body of ILO was held in June, 2007.  It discussed a range of issues including the questions arising out of the 96^th Session of the ILC and the report of the ILO Committee on Freedom of Association. 

2.1.3            The 300th Session of Governing Body of ILO was held in Geneva from 1st to 2nd  November, 2007. 

(i)       The Committee on Technical Cooperation met on 6th November, 2007.  It discussed the ILO’s technical cooperation programme 2006-07, implementation of Decent Work Country Programme and technical cooperation priorities and action plans regarding the elimination of discrimination in employment and occupation.

(ii)     The Subcommittee on Multinational Enterprises met on 8th November, 2007 and discussed the strategic priorities for 2006-07, updated on Corporate Social Responsibilities (CSR) –related activities improvements and participation of ILO constituents in the Global Compact local networks.

(iii)    The Working Party on Social Dimension of Globalisation met on 12th November, 2007.  The Working Party debated on the issue of decent work for sustainable development, the challenge  of climate change and follow-up to the joint ILO/WTO secretariat study on trade and employment.

2.2    NATIONAL

2.2.1 Standing Labour Committee

(i)       The 42^nd Session of the Standing Labour  Committee was held on December 13, 2007 at Symposia Hall, Indian Council of Agricultural Research, New Delhi under the Chairmanship of Shri Oscar Fernandes, Minister of State (IC) for Labour and Employment.  The National Level Tripartite Meeting was attended by senior level functionaries of Central Trade Union Organisations Employers’ Organisations,        State Governments and of Central Ministries and Departments.

(ii)     In his inaugural address, Shri Oscar Fernandes, the Minister of State (IC) for Labour & Employment highlighted the importance of tripartite consultations in shaping and influencing the labour policy in the country, during the past six decades.  He noted that industrial relations are nothing more or nothing less than human relations, and hence, there is a great need for bipartite and tripartite dialogue to ensure inclusive growth and to attain a human face to development.  He added that the present government is firmly committed to spreading the spirit of social dialogue, as it is only through collective wisdom that the interests of labour and capital can be protected.

(iii)    The Minister also highlighted the importance of creating quality employment and equipping the labour force with sufficient/appropriate skills to suit the changing requirements of the industry.  He said that the government has initiated a number of steps to improve the skill endowment of the labour force.  These include the upgradation of Industrial Training Institutes into Centres of Excellence so that they can provide multi-skill courses catering to the needs of the industry as well as create a multi-skilled workforce of international standards and the Skill Development Initiative (SDI) under which one million persons will be trained or their existing skills tested and certified under the Modular Employable Skills (MES).

(iv)    The Minister said that the government is committed to provide appropriate social security measures for the deprived and marginalized segments of the workforce and society.  The government has recently introduced a Bill in the Parliament aiming to provide social security benefits to more that 300 million workers in the unorganized sector.  The government has also introduced programmes such as Aam Aadmi Bima Yojana, National Old Age Pension Scheme, and National Health Insurance Scheme aimed at abating the insecurities encountered by the most distressed sections of the society.

(v)     Shri S.K. Srivastava, Joint Secretary, Ministry of Labour and Employment introduced briefly the agenda items for the meeting viz., Action Taken Report on the Conclusions of the 41^st Session of the Indian Labour Conference held on 27-28, April 2007 and the themes short listed for the consideration and finalization of the items of agenda to be included in the agenda for the next session of Indian Labour Conference.  The items short listed for consideration are:-

1.     Issues concerned with contractualisation of labour;

2.     Role of social partners in appropriate skill development for employability;

3.     Corporate Social Responsibility ; and

4. Migrant Labour (domestic  and abroad) – problems and remedies.

(vi)    Participants from different State Governments and Trade Unions expressed their views on the agenda items as follows:-

a.     More emphasis was given for improving social security and other working conditions of contract workers instead of focusing on prohibiting their engagements.

b.     Effective measures may be devised to put on end the exploitation meted out to the contract labour.

c.     There is need to regularize the contract labour if the duration of engagement of such labour is relatively long.

d.     Since more contractualisation of work leads to exploitation of the workers, Contract Labour Act may be extended to all the establishments.  Situation is extremely precarious where most of the migrant labourers are working and measures to redress their grievances are grossly inadequate.

e.     Due to inadequate performance of labour law implementation at the State level, there is need to take appropriate remedial measures and the interventions carried out at the state level and reflected in the action taken report focusing on the problems faced by the contract and migrant workers in the I.L.C.

f.      Trade Unions expressed a view that wage limit in relation to bonus may be abolished so that benefits are extended to all employees.

g.     It was felt pertinent to extend the coverage of benefits of EPF and ESIC so as to address the social security needs of all workers in the unorganized sector who encounter the most unfavorable sets of insecurities.

h.     It was suggested to rationalize the old method of submitting returns and was emphasized that in view of the tremendous transformations in the economy and business, the return submission system needed to be rationalized.  Considering the unavoidability of transformations in an era of outsourcing and contractualisation of work, need was felt for thinking about appropriate regulatory frame work for outsourcing.

2.2.2 SOCIAL SECURITY :

          The Social Security Schemes in India cover mainly the organsied work force which may be defined as workers who have a direct & regular employer-employee relationship within an organization.  The Social Security Legislation in India derives its strength and spirit from the Directive Principles of the State Policy as contained in the Constitution of India.  These provide for mandatory social security benefits either solely at the cost of the employers or on the basis of joint contribution of the employers and the employees.  While protecting entitlements available to the employees, the responsibility for compliance largely rests with the employers.

        The principal social security laws enacted in India are the following:

Ø  The Employees’ State Insurance Act, 1948:

            The Act is applicable to non-seasonal factories using power and employing 10 or more employees and non-power using factories and certain other establishments employing 20 or more employees.  The Act is being implemented area-wise, in a phased manner.  The ESI Scheme is operated in 737 centres situated in 27 States/Union Territories.  A sum of Rs. 1150.98 crore was in arrears as on 31.03.2007 on account of default by the employers of covered factories/Establishments.  Out of this, an amount of Rs. 753.28 crore was not recoverable, for the present, due to various reasons, such as, factories having gone into liquidation, recovery having been disputed in Courts Etc. 

            The balance, amounting of Rs. 397.70 crore represents recoverable arrears.  During the year 2006-07 the Corporation realized Rs. 168.11 crore from the defaulters through its own recovery machinery.  Further, an amount of Rs. 59.70 crore was recovered from April, 2007 to September, 2007.  The total number of ESI Hospitals by the end of March, 2007 was 144.

Ø  The Employees’ Provident Fund & Miscellaneous Provisions Act, 1952:

        The Employees’ Provident Fund and Miscellaneous Provisions Act, 1952 is a welfare legislation enacted for the purpose of instituting a Provident Fund for employees working in factories and other establishments.  The act aims at providing social security and timely monetary assistance to industrial employees and their families when they are in distress and / or unable to meet family and social obligations and to protect them in old age, disablement, early death of the bread winner and in some other contingencies.

        The Act is currently applicable to factories and other establishments engaged in about 182 specified industries, classes of establishments employing 20 or more persons (industries are specified in Schedule 1 of the Act).  The Act, however, does not apply to cooperative societies employing less than 50 persons and working without the aid of power.  As on 31.03.2007 there were 4,71,678 establishments and factories covered under the Act with membership of 444.04 lakh both in the exempted and unexempted sectors.

        The Provident Fund Arrears as on 31.03.2007, were of the order of Rs. 2612.54 crore.  The Employees’ Provident Fund Organisation launches prosecution against the defaulting employers under Section 14 of the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 and prosecutes employers under Section 406/409 of the Indian Penal Code in case they deduct employees’ share of contribution but do not remit the same to the fund.  During the year 2006-07 arrears amounting to Rs. 1236.38 crore were realized.

Ø  The Workmen’s Compensation Act, 1923:

                The rate of compensation in case of death is an amount equal to 50 per cent of the monthly wages of the deceased workmen multiplied by the relevant factor or an amount of Rs. 80,000/= whichever is more.  Where permanent total disablement results from the injury, the compensation will be an amount equal to 60 per cent of the monthly wages of the injured workman multiplied by the relevant factor or an amount of Rs. 90,000/= whichever is more.

Ø  The Maternity Benefits Act, 1961:

        The Central Government introduced the Maternity Benefit (Amendment) Bill, 2007 in the Rajya Sabha on 14^th May, 2007 which included two amendments in the existing Act.  The first amendment proposes to enhance the medical bonus from Rs. 250/= to Rs. 2500/= if no pre-natal confinement and post-natal care is provided by the employer free of charge, keeping in mind inflation etc.  That has taken place during the period from 1989.  In the second amendment, permission is sought to enhance medical bonus from time to time to an amount of Rs. 20,000/=.

Ø  The Payment of Gratuity Act, 1972:

        The Payment of Gratuity Act, 1972 provides for a scheme of compulsory payment of gratuity to employees engaged in factories, mines, oil fields, plantations, ports, railway companies, motor transport undertakings, shops or other establishments.

Ø   

Ø  Employees’ Pension Scheme, 1995:

        The Employees’ Provident Fund and Miscellaneous Provisions Act, 1952 was amended and a separate Pension Scheme was launched from 16^th November, 1995 replacing the then Employees’ Family Pension Scheme, 1971.

        During the year 2006-07, Rs. 8050.66 crores were received as Pension Fund contributions, out of which Rs. 6710.66 crores were collected from Employees’ share and Rs. 1340 crores were contributed by the Central Government.  The beneficiaries of the ceased Family Pension Scheme continue to get benefits under the new Pension Scheme.  As on 31.03.2007, there were 15,92,879 members, 5,50,504 spouses, 4,83,865 children, 11,898 orphans and 7,114 nominees receiving pension under the Scheme.  Total amount disbursed among the pensioners during the year was Rs. 2,324.23 crores through the nationalized Banks and Post Offices.

2.2.4  V.V. Giri National Labour Institute :

The Training Programmes organized by the Institute during April, 2007 to March, 2008 are given below:-

Sl. No.

Name of the Programme

Number of Programmes

1.

Labour Administration Programmes

13

2.

Industrial Relations Programmes

14

3.

Capacity Building Programmes

37

4.

Child Labour Programmes

37

5.

Research Methods Programmes

5

6.

Health Issue Programmes

6

7.

International Programmes

4

8.

Collaborative Programmes

7

        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 Laws.

CONSUMER PRICE INDEX NUMBERS FOR IW AND AL/RL:

        Consumer Price Index (CPI) Numbers for Industrial Workers ( 78 selected centres and All India) on base 2001=100 are being compiled from January, 2006 onwards and  published 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 these Indices using the price data collected for compilation of Consumer Price Index Numbers for Industrial Workers on base 2001=100 every month.     In pursuance of the Second National Commission on Labour, the Bureau has  also initiated compilation of R.P.I. (Rural) for 31 essential commodities on base 1986-87=100 with effect from April, 2003.

Wage Rate Index:

        The wage rates indices (base 1963-65=100) in respect of 21 selected industries have been finalised upto the year 2001.  The processing of data and compilation of indices for the year  2004 to 2008 is in progress. The exercise to update the base of these indices to a recent period has also been taken up.

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.

        The reports in respect of  Five Textile Industries  and Textile Garments Industry under the 6^th round of O.W.S. have been finalized and under printing. These have, however, been up loaded on Bureau’s web-site.  The field work in respect of Ten Engineering Industries and in Nine Engineering Industries it 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, eighth  in the series, was conducted during 61st  round of NSSO.    The    report  on “Employment and Unemployment (2004-05) is under printing and  Annual  report on “Wage Rates in Rural India” for the year 2006-2007 has been released.

COLLECTION OF LABOUR STATISTICS UNDER 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 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) have been released.  The Report on Absenteeism, Labour Turnover, Employment and Labour Cost Vol. II (2004-2005) has also been released.

SOCIO -ECONOMIC SURVEYS OF DIFFERENT SEGMENTS OF LABOUR

                Under this scheme following surveys are being conducted :

i)   Survey of Working & Living Conditions of Workers in Unorganised Sector of Industries:

                The main survey in Leather Industry covering Footwear and other Art Works has been completed.  Collected data has been processed and drafting of the report is in progress.

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

                The survey in Stone Breaking and Stone Crushing Industry in Gujarat and Karnataka States has been completed and the drafting of report for Karnataka State is in progress.

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

        The report in respect of  ST Survey in Gujarat ST belt has been finalized and the same is under printing.  Next survey of ST Workers in KBK belt of Orissa is being planned.

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

        Report on the survey in Food Processing Industry including Sea Food and Marine Products has been finalized, printed and released.   Field work in respect of another survey in  Plantation Sector has been launched and is nearing completion.

CONTRACT LABOUR SURVEY:

The report on Contract Labour Survey in Air Transport Sector has been finalized and remained under printing.   Preparatory work for conducting the next survey is in progress.

TRAINING IN IMPROVEMENT OF LABOUR STATISTICS:

         The Labour Bureau conducts two stages training programme to make improvements in Labour Statistics. The Regional Office Kanpur conducts training for the officials of the primary units engaged in collecting and compiling the Statistics at unit level. At central level, Labour Bureau, Shimla conducts training for the State Government officials compiling and submitting returns to Labour Bureau. Besides, the Bureau also conducts familiarization and refresher courses for ISS & IES Probationers and senior ISS Officers respectively and sponsored programmes from CSO for various categories of participants.

        During the year 2008, eight such programmes for different categories of participants were conducted in Labour Bureau, Shimla. Two decentralized training programme were conducted at Agartala and Raipur on the request of the State Governments. In these programmes 64 participants took part.

        The Regional Office Kanpur conducted 18 Training programmes in different industrial centres of North India in association with the State Labour Commissioners and Center Specific Industries Association and 556 officials of the primary units took part in these programmes

OTHER ACTIVITIES OF THE BUREAU:

The Ministry of Labour & Employment asked Labour Bureau to carry out a quick survey in the Industries /Sectors supposed to be badly affected by the slowdown. .Important Sectors viz.mining, textiles, metals, gems and jewelry, automobiles, transport, IT/BPO and construction were decided to be covered in the survey. These sectors contribute more than 60 percent to the GDP in the year 2007-08. A sample of 3000 units was decided to be covered in the survey. The sample was drawn from 20 centres. Work relating to canvassing of schedules etc. was initiated in the first week of January, 2009 and completed upto 23.1.2009

Following reports/reviews were also finalised/brought out during the year 2007-2008.

1.        A.S.I. report on Employment & Labour Cost for the year 2004-2005 (Vol. I). 

2.        A.S.I. report on Absenteeism, Labour Turnover and Labour Cost (Vol. II) for the year 2004-2005.

3.        The ‘Statistical Profile on Women Labour’ 2005-06 (Seventh Issue).

4.        Report on Four Mining Industries under the 6th round of O.W.S.

5.        Annual Reviews for the year 2005 pertaining to;

a)        The Maternity Benefits Act, 1961,

b)       The Workmen’s Compensation Act, 1923,

c)        The Shops & Commercial Establishments Act,

6.        Pocket Book of Labour Statistics – 2007.

7.        Report on Working of the Minimum Wages Act, 1948 for the year 2004 and 2005.

8.        Report on the Socio-economic Conditions of Women Workers in Food Processing Industry, including Sea Foods and Marine Products.

9.        Annual Report on CPI Nos. for AL/RL (Base 1986-87=100) for the year 2006-07.

10.     Wage Rates in Rural India for the year 2006-2007.

11.     Indian Labour Statistics for the year 2005 & 2006

12.     All-India General Report on the Working Class Family Income and Expenditure Survey – 1999-2000 has been released.  Out of 78 centre-specific reports, 45 reports were released earlier.  All the remaining 34 reports have been approved and are at various stages of printing.

13.     Trade Unions in India, 2004.