Indian Economy: News and Discussion

[Suryavanshi]

Chapter VB of the Industrial Disputes Act, 1947 that deals with the provisions related to layoffs, retrenchment, and closure in industrial establishments.

This regulation makes it difficult to scale up or scale down the work force in response to changing market dynamics.

Need more in depth explanation if you can offer otherwise I will look into it
I am sure some middle ground can be reached.

 

[Physx32]

Yeah, wonder what happened to it. Perhaps GoI will take their sweet time like they did before eventually corporatizing OFB without giving zero effs to the comrades out there.



Their Chennai factory is still stuck in the '70s; lots and lots of manual labor, little to zero automation/tooling and non-existent quality checking. No wonder the comrades are worried about competition from outside.

All the xCFs are obsolete and in 1950s. Infact, ICF is the best of the lot.

Since 2018, no other xCF has managed to assemble a VB. Only ICF does that. And VB is nothing special, just an ordinary stainless steel EMU with a plastic nose cone.

If these factories are not privatised, there's no hope.

 

[angryIndian]

Need more in depth explanation if you can offer otherwise I will look into it
I am sure some middle ground can be reached.

This provision makes it very difficult to reduce the manpower. If your company is incurring significant losses and you wish to downsize the workforce, you require permission from the government.

Additionally, if you intend to shut down a loss-making company, government approval is necessary.

There was a recent case involving a major loss-making automobile manufacturer (I believe it was FORD India) that wanted to close the plant at the earliest. However, the approval was rejected, leading to a court case that lasted for 3-4 years.

 

[Suryavanshi]

All the xCFs are obsolete and in 1950s. Infact, ICF is the best of the lot.

Since 2018, no other xCF has managed to assemble a VB. Only ICF does that. And VB is nothing special, just an ordinary stainless steel EMU with a plastic nose cone.

If these factories are not privatised, there's no hope.

Kek what's worse is that gov has nothing against these haramcharis, cannot fire them based on poor performance, there is no such provision in the sociolist recucklic of India.

Unless gov implements the provision for hire and fire based on performance there is no hope.

So privatisation is the only way than you have retarded labour laws.
The lal Sena will not let us have anything.

 

[sameer3694]

Need more in depth explanation if you can offer otherwise I will look into it
I am sure some middle ground can be reached.

If your company has more than 100 employees, you cannot fire/layoff even a single person without state government permission. Even a non performing employee cannot be fired. And in many cases the government won't give permission.

This in turn forces companies to remain small because if they expand too much, they won't be able to downsize in bad times. So companies do try to get around it by hiring contract labour but that's just a workaround.

Read this case BTW. A lot of the same laws are in place today.

Bharat Forge Co Ltd v Uttam Manohar Nakate - Wikipedia

en.wikipedia.org

Also, read about GM talegaon. The plant was closed in 2017 due to losses but was forced to run for 6 more years.

 

[Suryavanshi]

This provision makes it very difficult to reduce the manpower. If your company is incurring significant losses and you wish to downsize the workforce, you require permission from the government.

Additionally, if you intend to shut down a loss-making company, government approval is necessary.

I think these two can be dealt with using some monkey balancing.

But how come IT coolie companies are able to lay off say 5000 10000 people at a time?

 

[angryIndian]

I think these two can be dealt with using some monkey balancing.

But how come IT coolie companies are able to lay off say 5000 10000 people at a time?

They don't fall under the purview of labor laws; these laws are applicable to industrial units and not to IT companies.

 

[Suryavanshi]

They don't fall under the purview of labor laws; these laws are applicable to industrial units and not to IT companies.

One could say rapid hire and fire is the reason for success of IT industry here?

 

[Physx32]

But how come IT coolie companies are able to lay off say 5000 10000 people at a time?

"This Act though does not apply to persons mainly in managerial or administrative capacity, persons engaged in a supervisory capacity and drawing > 10,000 p.m or executing managerial functions and persons subject to Army Act, Air Force and Navy Act or those in police service or officer or employee of a prison."

 

[Suryavanshi]

"This Act though does not apply to persons mainly in managerial or administrative capacity, persons engaged in a supervisory capacity and drawing > 10,000 p.m or executing managerial functions and persons subject to Army Act, Air Force and Navy Act or those in police service or officer or employee of a prison."

A very retarded act, would revoking this really cause as much ruckus as Farm bill?

 

[angryIndian]

One could say rapid hire and fire is the reason for success of IT industry here?

No, it's primarily due to the widespread availability of English-speaking manpower willing to work for peanut wages.

 

[Suryavanshi]

If your company has more than 100 employees, you cannot fire/layoff even a single person without state government permission. Even a non performing employee cannot be fired. And in many cases the government won't give permission.

You mean If I set up a textile factory than I can't even fire even 1 guy without gov permission?
Are you sure this is the clause because I can't see how anyone would want to open industry here in this country with such laws.

 

[Crazywithmath]

Also, read about GM talegaon. The plant was closed in 2017 due to losses but was forced to run for 6 more years.

Only partially true though.

They decided to shut down operations in their Halol plant (located in Gujarat, not Maharastra) back in 2017 and by 2018, the takeover by a chongi automaker was finalized.

As of 2020 their Talegaon plant was still operational and was being used to export vehicles from India. It was not until November/December of 2020 when they decided to close Talegaon plant and filed an appeal with the MH govt to scrap their agreement (GM operated the plant on a 95 year lease; they did not own it) and tried to 'sell' it to another cheeni company (great wall motors) but India's newly imposed FDI guidelines restricting cheeni investment complicated things. Between early and mid 2023, they reached an agreement with Hyundai, all the clearances were granted and they left for good. A long drawn court battle over employee-employer disputes once the closure of a plant is announced is not that uncommon in other countries either and it is wrong to single out India for this sole reason. @Haldilal can provide more details.

 

[Arjun Mk1A]

Basic Observations on Chinese workforce. All of them are trained enough so they can easily able to work in any factory based on factories demand.

On the hand our workers lack serious skill issue and struggle to become efficient. Unless there should be an improvement in ITI, Diploma mills. Our workforce is on fluid enough to be utilize based on the factories demand.

 

[ListenLittleMan]

How can I open a trading account to trade in Chinese stocks (both HongKong & Mainland)?

If you are serious ETFs are the easiest way for now

 

[ListenLittleMan]

And when India’s economy become bigger than Japan or Germany India’s stock market capitalization will make India Nbr 3 along with being #3 times economic power.

Saar which stonks to invest, can you please to inform

 

[indiatester]

If you are serious ETFs are the easiest way for now

No man... its only aimed at the propagandus...

 

[Tejbrahmastra]

Good discussion about Indian manufacturing issues!!

 

[jai jaganath]

 

[jai jaganath]