Key Recommendations of 44th Session of Indian Labour Conference Minimum Wages Act Coverage for all Employments - ALLCGNEWS

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19 February 2012

Key Recommendations of 44th Session of Indian Labour Conference Minimum Wages Act Coverage for all Employments



Raising The Wage Ceiling in the Employees Provident Fund, Enhancement of  Pension Under Employees Pension Scheme 95, Portability of PF Account,  Reduction in the Requirement of Minimum Continuous Service, Etc. 

  
 Stress on Matching the Large Scale Skilling Targets with Creating Similar Number of Openings in the Area of Employment 

  

Maternity Leave Under the Maternity Benefit Act be Increased from the  Present Level of 12 Weeks to 24 Weeks 

  

                Union Labour & Employment Minister Shri Mallikarjun Kharge  today detailed about the recommendations made during the 44th  Indian Labour  Conference concluded at Vigyan Bhavan, New Delhi. Addressing the media  persons he said this Session of the Indian Labour Conference had elaborate
discussions on three agenda items – (i) Minimum Wages (ii) Social Security  and (iii) Employability and Employment. 

  

The Conference was inaugurated by Hon’ble Prime Minister of India.   The  Conference was attended by Labour Ministers from 14 State Governments. All  the major 12 Central Trade Union Organisations and 6 major employers’  organisation participated in the Conference.  Besides, senior officials from  23 Central Ministries and all State Governments/UTs attended the  Conference.  The International Labour Organisation Experts based at Delhi  were also present. 

  

Shri Kharge referred the Prime Minister inaugural address in which he  emphasized the great importance that the UPA Government attaches to the  promotion of healthy industrial relations and well being of our workforce.  

  
  Shri Kharge said   our huge unorganized sector poses great challenges in  ensuring quality employment and extension social security coverage.  Minimum  Wages are an important means of protecting the interest of the workers were  not in the formal sector.  Our flagship health insurance scheme “Rashtriya  Swasthya Bima Yojana” has covered 2.5 crore Below Poverty Line families and  this Scheme is being extended to cover other category of workers. 

                                                                                  

According to the minister the Conference Committee on “Minimum Wages”  recommended that the Minimum Wages Act should cover all employments and thus  facilitate India’s ratification of ILO’s Convention No.131.  There was  convergence of views towards making National Minimum Wages and make it  applicable to any employment irrespective of the number of workers engaged.   Objective suggestions were made for linking minimum wages with NSSO Consumer  Expenditure Survey and inflation. 

  

Also the Conference Committee on “Social Security” had very focused  discussion and came out with specific recommendations in the areas of  raising the wage ceiling in the Employees Provident Fund, enhancement of
pension under Employees Pension Scheme 95, portability of PF Account,  reduction in the requirement of minimum continuous service, etc.   The  Committee addressed the gender issues by recommending enhancement of  maternity leave.  The MSME Sector and unorganized sector workers received  special attention of the committee members.  Our Ministry’s RSBY Scheme has  achieved a lot of success and various recommendations were received for  bringing other category of workers under its coverage and adding other type
of benefits in addition to the existing ones. 

  

Moreover, the Conference Committee on “Employability and Employment”  recommendations laid stress on matching the large scale skilling targets  with creating similar number of openings in the area of employment.  Labour  intensive industries need to be promoted and protected.  The forthcoming
National Employment Policy should be able to provide enabling framework for  facilitating employment generation and decent work in the unorganized  sector.  The Labour Market Information System should give real time
information about skill requirements and skill availability. Other  innovative suggestion were bringing the traditional skills under the certification system and involving MSMEs in skill development.  The road map
for skilling 500 million persons by 2022 should be finalized in consultation  with the tripartite partners. 

  
  Shri Kharge said, this Session of the Conference carried forward the rich  tradition of healthy social dialogue, spirit of accommodation and keeping  interest of our workforce as the top most priority.   The tripartite
partners have shown full concern to the important responsibility we have  towards our country’s growth and safeguarding the basic interest of our  workers.  We will be very closely following up with the implementation of
policy solutions arrived at the Conference and the same will be reviewed in  the meeting of the next Standing Labour Committee. 

  

 
The Recommendations of the Conference Committee on  Employability and Employment are: 
  

1.       Employment generation and Employability should be top agenda of the  Govt. 

  

2.       Though lot of focus  is  being laid on training of 500 million  persons by 2022, there is a need to take appropriate measures for creation  of employment opportunities to offer the matching employment. 

  

3.       There is an urgent need to declare the National Employment  Policy  in order to provide enabling framework for facilitating employment  generation and decent working conditions for all. 

  

4.       Investment in labour intensive industries should be promoted and  incentivised. 

  

5.       Labour Market Information System should be established to get skill  requirement from the industry and available skills from the institutes. In  this regard, employment exchanges may be modernized for providing virtual  job market on real time basis. 

  

6.      Skill mapping should be done at the local level  and inventory of  skill assets should be created. 

  

7.       ITIs should also focus on sectors beyond manufacturing and should  concentrate on service sector. There is urgent need for quality assurance  measures in training of ITIs and instructors. 

  

8.       Emphasis should be laid on development of infrastructure including  storage, processing and marketing in rural areas and agro-based industries. 

  

9.       ITIs should focus more on popular trades keeping in view the  requirement of the local industries. 

  

10.    Institutional arrangements  for providing training in traditional  skills should be encouraged and may  brought under certification system. 

  

11.    Public awareness programme should be taken up, particularly in rural  areas regarding the importance of skill development and certification of  traditional skills. 

  

12.    There should be functional and spatial integration of State and
Central infrastructure and other available resources for optimal utilization
of resources. 

  

13.    MSMEs should be encouraged and supported to participate in the skill
development efforts. 

  

14.    Stipend of apprentices under the Apprentices Act should be enhanced. 

  

15.    Existing and new Centres of Excellence/Clusters in traditional crafts  should be strengthened and provided support in terms of marketing, credit,  new technology, etc. to promote self-employment. 

  

16.    Barriers should be removed from skilling and certification of  illiterate and uneducated workers. 

  

17.    Entrepreneurship and self-employment should be encouraged by
providing necessary support. 

  

18.    Existing employment in the unorganized sector should be safeguarded  by assuring access to natural resources for those sectors dependent on  them.  In order to increase their productivity, appropriate advanced tools  and technology for traditional producers should be developed. 

  

19.    Skill development should be promoted among the women and  differently-abled persons.  To increase participation of women in skill  development, special measures should be taken. 

  

20.    Centres of Excellence should be established at the national and State  levels  which  will produce world-class technicians. 

  

21.    National level consultation with all the stakeholders should be held  immediately to finalize the road-map for preparing skill development plan  leading to skilled force of 500 million persons by 2022. 

  

22.    Comprehensive steps should be taken to create environment for  employment generation and protection. 

  

23.    Trainers should be trained in large numbers to meet growing  requirement. 

  

                During the Conference a Committee was constituted to discuss Agenda Item No.(i) concerning Minimum Wages  and related issues. These issues, inter alia, include norms for fixation/revision of minimum rates of wages, Variable Dearness Allowance(VDA),  National Floor Level Minimum Wages etc. On the basis of detailed discussion, the following points emerged. 

  

1.  There was consensus that the Government may fix minimum wages as per the  norms/ criteria recommended by the 15th ILC (1957) and the directions of the  Hon’ble Supreme Court (Repttakos Co. Vs Workers’ Union) 1992.  The  Government may take necessary steps accordingly. 

  

2. There was a broad consensus that the Minimum Wages Act should cover all    employments and the existing restriction for its applicability on the  scheduled employments only should be deleted. This will also help India
ratify ILO Convention No.131. 

  

3.  It was broadly agreed that there should be national minimum wages  applicable to all employments throughout the country. 

  

4.There was broad agreement on the amendment proposals as listed out in Para  5(iv,  v & x). 

  

    5.  In respect of 5 (iv), it was pointed out that the payment  to the  apprentices should   be treated differently from the other categories. 

  

    6.The Committee noted that at present there are 12 States/UTs who have  not adopted  VDA. There was a broad consensus that all States/Uts should  adopt VDA. 

  

    7. It was also recommended that the payment of minimum wages should be
done through Banks/Post Offices etc. 

  

    8. As regards 5(vi), it was felt that the enforcing agencies should not
be given the power of adjudication and, therefore, this proposal should be
re-examined. 

  

    9. The proposal of paying different minimum wages in respect of same  employment    either in the Centre or in the State should be done away with. 

  

          A Conference Committee was also constituted to discuss the agenda  item No. (iii) i.e. “Social Security”.  On the basis of detailed  discussions, the following points emerged :- 

  

(i)                      There was a broad-based consensus that the wage  ceiling for the application of EPF Act be increased from the present level  of Rs.6,500/- to Rs.10,000/- or Rs.15,000/- as already applicable for the
ESI Corporation.  Similarly, the ceiling for workers covered under EPF Act  be reduced from 20 to 10.  However, Laghu Udyog Bharati was not agreeable to  this reduction in ceiling of number of workers. 

(ii)                    Minimum pension under the EPS 95 be increased to  some floor level, which should not be less than Rs.1,000/-,  since a large  number of workers receive pension which is less than that provided by the
State Governments for elderly people which is normally in the range of  Rs.400/- to Rs.1000/-. 

(iii)                  The PF Accounts be computerized urgently so that the  workers are able to avail the facility of PF transfer and settlement  immediately. Smart Cards like RSBY be issued to PF account holders. 

(iv)                   Minimum ceiling of 5 years of continuous service be  reduced in case of gratuity and gratuity be made transferable in case of  change of job by the employee. 

(v)                     The maternity leave under the Maternity Benefit Act  be increased from the present level of 12 weeks to 24 weeks.  This increased  maternity benefits be made available only upto two children, while the lower
limit  be continued for more than two children. 

(vi)                   Accountability on the part of organizations  implementing the social security schemes be fixed in order to ensure that  the beneficiaries receive the deliverables in time.  Citizen Charters for
these organizations be finalized early.

source-pib



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