PM Modi unveils key labour reforms to end 'Inspector Raj'

Discussion in 'Economy & Infrastructure' started by Srinivas_K, Oct 16, 2014.

  1. Srinivas_K

    Srinivas_K Senior Member Senior Member

    Jun 17, 2009
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    PM Narendra Modi unveils key labour reforms to end 'inspector raj'

    NEW DELHI: Looking to create an environment conducive to industrial development while also ensuring transparency in the labour sector, Prime Minister Narendra Modi on Thursday launched a host of schemes which envisage, among others, portable PF accounts and a unified portal for labour inspection at firms.

    Unveiling key labour reforms to end 'inspector raj', Modi inaugurated the 'Pt Deendayal Upadhyay Shramev Jayate Karyakram' organised by the labour ministry here which will feature a day-long conference of labour, employment, health and vocational training ministers of the various state governments.

    Labour ministry officials said that the initiatives which are to be launched are a Unified Labour Portal or 'Shram Suvidha', a transparent and accountable Labour Inspection Scheme, and portability through Universal Account Number (UAN) for Employees' Provident Fund members. Also, to be flagged off is an Apprentice Protsahan Yojana.

    Speaking at the event, Prime Minister Modi said we needed to change our attitude towards labour as well as work very hard to change the perception we had of the poor.

    "In our country, white-collar jobs are given a lot of importance.'Shramev Jayate' equally important as 'Satyameva Jayate'," he said.

    The revamped Rashtriya Swasthya Bima Yojana (RSBY) for workers in the unorganised sector will also be launched on the occasion.

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    The UAN will allow collation of accounts and viewing of updated PF accounts. The UAN would be portable throughout the working careers of members and can be used anywhere in India.

    Thus, workers in the organised sector would not need to apply for a transfer of their PF account claim on changing jobs.

    Bulk SMSs will be sent across India as part of the programme, the ministry said in a statement here.

    "While about one crore EPFO subscribers will get SMSs regarding portability through UAN, about 6.50 lakh establishments and 1,800 inspecting officers will get SMSs about Unified Labour Portal which will (make for) a transparent and accountable Labour Inspection Scheme," the ministry said.

    (PM Narendra Modi at Vigyan Bhawan to launch Pandit Deendayal Upadhyay Shramev Jayate scheme: ANI photo)

    Under the new Labour Inspection scheme, labour inspectors will get auto-generated lists telling them where to go for inspection. Ministry officials said that the inspectors have to upload their reports on to the portal within 72 hours of carrying out an inspection.

    "An SMS will also be sent to the 1,800 inspectors... urging them to cooperate for the new scheme," said a senior labour ministry official.

    A unified Labour Identification Number (LIN) for simplifying business regulations and securing transparency and accountability in labour inspections by various agencies and bodies under the administrative control of labour ministry will also be launched.

    The LIN web portal will operate through a unique LIN or Shram Pehchan Sankhya for each employer. The portal will provide for the e-filing of annual returns by employers.

    Under the Apprentice Protsahan Yojana, 50 per cent support for training in MSMEs will be provided by the labour ministry.

    Also, in a bid to promote Industrial Training Institutes (ITIs), the ministry will felicitate some individuals who have passed out from these institutions and are holding top posts in various companies.

    The ministry has identified these individuals to be brand ambassadors of the ITIs, the official said, adding that it would encourage more people to enrol at such institutes.

    "Around 4 lakh SMSes will be sent to ITI trainees regarding the brand ambassadors of ITIs... An identical number of emails will also be sent simultaneously," it added.

    Apart from Union labour minister Narendra Singh Tomar and minister of state for labour and employment Vishnu Deo Sai, health minister Harsh Vardhan, MSME minister Kalraj Mishra, commerce and industry minister Nirmala Sitharaman and skill development and entrepreneurship minister Sarbananda Sonowal are attending the programme which aims to take forward these initiatives in tandem with the NDA government's vision of 'Make in India'.

    The programme is being telecast live on Doordarshan and arrangements have also been made for its live streaming on ministry websites.

    Arrangements have been made for the viewing of the event across the country at all the ITIs and other government institutions, officials said, adding that an estimated TV audience of 10 crore people will watch the programme.

    PM Narendra Modi unveils key labour reforms to end 'inspector raj' - The Times of India
  3. Ray

    Ray The Chairman Defence Professionals Moderator

    Apr 17, 2009
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    It prima facie appears to be a right move.

    Why are the labour unions against it is what one likes to know.
  4. Sylex21

    Sylex21 Regular Member

    Sep 6, 2014
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    Labor Unions are conservative my nature and worried about protecting employee rights and perks. They see big business as inherently more powerful and so are very defensive in their policy. Normally this would not be a bad thing in a nation like America with an already developed economy and little potential for explosive growth. In India however all the red tape and rules is holding the nation back because India is very underdeveloped and so has more potential for growth than any other nation on earth. The government should get rid of almost any business related red tape and laws absolutely not needed and should bend over backwards to attract foreign investment and businesses.
  5. ant80

    ant80 Regular Member

    Jul 10, 2009
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    According to current Indian Labor laws, if you have more than 100 workers, you need to get the parliment's permission to fire workers. Which NEVER happens. Laws like this is exactly why Indian manufacturing won't take off. Laws like these need to go.

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