2nd Labour Commission Report 2002 & Ammendment 2010

Aditi Ghosh, IIT Kharagpur 1

SECOND NATIONAL COMMISSION ON LABOUR (2002)

&INDUSTRIAL DISPUTES (AMENDMENT) ACT 2010

Aditi Ghosh10IP60002

RGSOIPL, IIT Kharagpur


BRIEF BACKGROUND - COMMISSIONS ON LABOUR

• REPORTS – – Understanding the changes in structure

of industrial relations– Observe the changing conditions of

work & workers– Reports – the best indicator of evolution

of state policy on labour– Reports made from:

• Direct observations & enquiries• Memorandums submitted by industrialists, labour unions,

individuals


THE COMMISSIONS SET UP SO FAR

i. Royal Commission on Labour in India (1929)ii. Labour Investigation Committee (1946)iii. National Commission on Labour (1st) (1967)iv. Commissions on Women & Labour (1974-88)v. National Commission on Rural Labour (1991)vi. Second National Commission on Labour

(2002)


HIGHLIGHTS OF THE 1st NATIONAL LABOUR COMMISSION

• social security• social welfare• wages• social insurance• industrial relations• industrial adjudication• collective bargaining


REASONS FOR CONSTITUTION OF THE 2nd NCL

• 3 decades had passed since the first NCL Report was submitted (1967) – Significant increase in the number of labour force– industrialisation and urbanisation

• the changes in the economic system introduced in 1991– radical changes in the domestic industrial climate and

labour market• changes in various spheres of IR and labour market

– introduction of "uncertainties" • requiring a "new look” to the labour law


OBJECTIVES OF THE 2ND NCL, 2002• Terms of Reference:

I. to suggest rationalisation of existing laws relating to labour in the organised sector;

II. to suggest an Umbrella Legislation for ensuring a minimum level of protection to the workers in the unorganised sector;

• Other objectives:– note developments post liberalisation and globalisation

• Rapid technological changes• demands and effects on working class, industry, government and all sections

of the society;

– to make recommendations on the laws and systems to offer protection and welfare to the working population;

– to increase the economic efficiency and competitiveness of the Industry;

– to build harmonious relations


METHODOLOGY ADOPTED BY The Commission

a) arranged consultation / conferences in the major cities of India to get the opinion of the Industry, public, educationalists and institutions;

b) circulated a questionnaire across the industry and the society in terms of the reference

c) surveys conducted both in organised and unorganised sector

• the high powered body comprised: – two full-time members– seven part-time members

• government, industry, workers and NGOs.

• 1st meeting in November 1999• 7 draft bills were submitted alongside the Report


CHAPTERS IN THE 2002 RECOMMENDATIONS

1. The terms of the reference of the Commission 2. Introductory review, 3. Industrial Development and Progress after independence, 4. Impact of globalisation - in comparison with neighbouring

countries, 5. Approach to review laws, 6. Review of laws, 7. Unorganised sector, 8. Social security, 9. Women and Child labour, 10. Skill development, 11. Labour administration, 12. Other matters.


AREAS FOR RECOMMENDATIONS

• employment• skills and training necessary for acquiring and

retaining employability and employment• healthy industrial relations• laws to promote harmonious industrial

relations• machinery for speedy and just solution of

equality and social security


GENERAL RECOMMENDATIONS• Central & State govt. to have uniform policy on holidays

– 3 national holidays be gazetted– 2 days determined by State– 10 restricted holidays each year

• Flexible working hrs – 9h/day, 48h/week, compensation for over time• Exclude some highly paid jobs from purview of ‘workman’ (Airlines Pilot)

and include in proposed law for protection of ‘non-workman’• Or cut-off limit of remuneration, say 25,000pm – not be an ordinary

workman• keep supervisory personnel, irrespective of wage/salary, outside the rank

of worker• Existing set of labour laws broadly grouped as:

(i) Industrial relations(ii) Wages(iii) Social security(iv) Safety(v) Welfare and working conditions


Industrial Relations and Trade Unions

• Min. level of protection to managerial and other (excluded) employees too against unfair dismissal or removal

• Consolidate acts- ID Act, 1947, The TU Act, 1926, Industrial Employment (SO) Act, 1946,

Sales Promotion Employees (Conditions of Service) Act, 1976 - into “Law on Labour Management Relations”– Workman gender neutral expression worker– Agreements arbitration adjudication

• enact special law for small scale units –– provisions - securing safety, health and welfare, awards of work, leave, payment of wages,

payment of bonus compensation in case of lay off, retrenchment and closure, resolution of individual and collective disputes of workers

• avoidance of the term ‘industry’ – better coverage of ‘domestic service’• terms ‘go slow’ and ‘work to rule’ must be regarded as misconduct• Withdrawal of Essential Services Maintenance Act• consolidate fragmented Trade Unions:

– incentivize, upgrade registration-eligibility criteria


Contd.• check-off system over secret ballot for selecting negotiating agent

– Loyalty ascertainment – payment of subscription fee– compulsory for establishment with >300 workers– to be selected for recognition - union having 66% support– else proportionate representation to union having 25% support

• recognition granted to a union– to be valid for 4yrs.• every establishment to have ‘grievance redressal committee’

– representatives from workers and employers• Lay-off, Retrenchment & Closure of Establishments

– train workers – help develop new skills– pay adequate compensation– offer outsourced jobs to retrenched workers– Prior permission not necessary in respect of lay-off and retrenchment – 2 months

notice to workers or equal pay• Strike

– socially essential services - water supply, medical services, sanitation, electricity, transport

– only by the recognised negotiating agent – after strike ballot - 51% of workers support the strike

– refer for compulsory arbitration by Labour Relations Commission


Contract Labour/Casual Temporary Workers

• contract labour not to be engaged for core production / service activities except on sporadic seasonal demand

• no worker should be kept continuously as a Casual or temporary worker against a permanent job for more than 2 yrs.

• contract labour to be remunerated at the rate of a regular worker


Wages

• Wages & remuneration – different terms• Bonus payments before festivals– Excess 20% bonus – subject to negotiations

• Enhance wage ceilings:– reckoning entitlement - Rs.7500/- – calculation of bonus - Rs.3500/-

• requirement for a national minimum wage - to be notified by Central Government

• no need for any wage board for fixing wage rates for workers in any industry


Working Conditions, Service Conditions etc

• enactment of a general law relating to hours of work, leave and working conditions

• omnibus law for safety at the work place and in different activities– Max. working hrs in a day/week– Reduced hrs for adolescents– prohibition of underground work in mines for women workers– Transport facility by employer to women working in night shifts– No exemption of SEZ from labour laws– Canteen, refreshments facilities, creche etc.

• all cases must be disposed of in a span of 3 hearings• Non-discrimination between public and private sector in law

enforcement


Social Security• Elementary level of security – consider as a fundamental human right - to be

provided by State • Replace 'workman' with 'employee‘ – make Workers' Compensation Act applicable

– convert it from an employers' liability scheme to a social insurance scheme• unemployment insurance scheme could be found• Need for National Scheme for pension for differently-abled, leprosy affected or

mentally sick persons• Train able-bodied beggars to help secure employment• Set up permanent commission for disaster management on the lines of election

commission• constitute high powered national security authority preferably under the

Chairmanship of a Prime Minister of India• social security fund of India and social security of each State may be set up.• 3 kinds of social security schemes:

– 1) social insurance type of contributory scheme, – 2) subsidised insurance / welfare fund type of partly contributory and partly socially

assisted schemes and – 3) social assistance scheme which will be wholly non-contributory


Dispute Settlement• Lowest-level labour court

– labour-management dispute– workman’s compensation claim– disputes on coverage of labour laws– disputes related to social security

• Labour Relations Commission– Identify negotiating agent– Appellate body after Lowest-level labour court– Collective dispute if not resolved bilaterally or in conciliation or

arbitration• constitution of an

– All India Labour Judicial Services• for high-level labour adjudicating functionaries

– All India Labour Administrative Services• Labour laws concurrent list Centre-State exchange of officers


Unorganized Sector• Characteristics

– Low wages & earnings– More women employment percentages– Employment of family labour, child labour and migrant labour– Piece-rate payments– Home-based work or contractual work– Seasoned or intermittent employment– Lack of organization into Trade Unions– Casual and multiple jobs– Existence of debt bondage– Existence of co-operatives of self-employed workers– Dependence on others for supply of raw material– Less access to capital– Health hazards– Sub-sectoral laws and sub-sectoral systems


Recommendations for Unorganized Sector

• Need for new and separate umbrella legislation– Main heads - minimum wages, job security, safety and social security– Recognition of these workers Issue Identification card– Improve economic status of women – ownership & control over assets– simplification of judicial procedures enable unorganised workers to

obtain legal redress– Right to work be made as a fundamental right– Central fund welfare & social security of women workers– Separate wing in labour dept. for unorganized sector– Set up Equal Opportunities Commission

• powers of investigation, direction, advice and monitoring

– Set up Tripartite Boards• Implementation of legislation• Empower women workers and give visibility


CRITICISM• Freedom to hire and fire to all establishments employing

up to 300 workers• Varying rates of compensation to workers, rewarding the

employers who manage to have their units declared sick• Provisions of section 9A of the Industrial Disputes Act

relating to change in conditions of service diluted and rendered practically ineffective in favour of employers

• Green signal for unfettered freedom to contract out non-core jobs completely and also core jobs, subject to some limitations

• No to industry level wage boards• No secret ballot for selection of bargaining agent


Contd.

• Punitive prescriptions for illegal strike• ‘Go Slow’, ‘Work to Rule’ termed misconduct• A facade of equating lock out with strike• Curtailment of holidays• ‘8 hour work day’ concept tampered with• Separate law for small industries• Supervisors irrespective of salary and employees in

higher bracket of salaries to be outside the purview of labour laws.

• Allow wide spread registration of Membership Based Organisations' of women workers under the TU Act - trade union movement division on gender lines


Opposition by trade unions

– process of constitution of SNCL; – composition;– Terms of reference and the framework they

suggest;– questionnaire– Hidden pro-employer agenda– No consultation with Unions– weaken union movement – hurt labour welfare


INDUSTRIAL DISPUTES (AMENDMENT) ACT 2010


INDUSTRIAL DISPUTES (AMENDMENT) ACT 2010- the highlights

• 1. Amendment of the term ‘appropriate Government’ defined under section 2(a) of the Act– to amplify the existing definition;– company in which more than 51 percent of the paid up share is held by the Central

Government, or – any corporation, established by or under any law laid by the Parliament, or the Central

Public Sector Undertaking,– subsidiary companies set up by the principal undertaking and – autonomous bodies owned or controlled by the Central Government. – State Government is also covered under the definition of appropriate Government in

relation to any other industrial dispute, which includes the State Public Sector Undertaking,

– subsidiary companies set up by the principal undertaking and autonomous bodies owned or controlled by the State Government.

• 2. Enhancement of wage ceiling for coverage - from Rs.1600 per month to Rs.10,000 - under section 2(s) of the Act;


Contd.• 3. direct access for the workman to the Labour Court or Tribunal in case

of disputes arising out of section 2A of the Act;– Earlier only appropriate government could approach Tribunal and Labour Court

disputes under Section 2A.• 4. Expanding the scope of qualifications of Presiding Officers of

Labour Courts or Tribunals under sections 7 and 7A of the Act; now will include:– Deputy Chief Labour Commissioner (Central)– State Joint Labour Commissioner– Grade III officers of the Indian Legal Service

• 5. Grievance Redressal Machinery in every Industrial establishment employing 20 or more workmen for resolution of individual grievances– maximum 6 committee members – Inclusion of atleast 1 woman member in the committee– redressal within 30 days on receipt of application;

• 6. empowering the Labour Court or Tribunal to execute the awards, orders or settlements arrived at by Labour Court or Tribunal .


Thank You!!

2nd Labour Commission Report 2002 & Ammendment 2010

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Transcript of 2nd Labour Commission Report 2002 & Ammendment 2010