1 Highlights of Important Activities
1 Highlights of Important Activities
INTRODUCTION
1.1 The Ministry of Labour is one of the oldest and important Ministries of the
Government of India. The main responsibility of the Ministry is to protect and
safeguard the interests of workers in general and those who constitute the poor,
deprived and disadvantaged sections of the society, in particular, with due regard to
creating a healthy work environment for higher production and productivity and to
develop and coordinate vocational skill training and employment services.
Government’s attention is also focused on promotion of welfare and providing social
security to the labour force both in organized and unorganized sectors, in tandem
with the process of liberalization. These objectives are sought to be achieved through
enactment and implementation of various labour laws, which regulate the terms and
conditions of service and employment of workers. The State Governments are also
competent to enact legislations, as labour is a subject in the concurrent list under
the Constitution of India.
1.2 The Report of Second National Commission on Labour (NCL), submitted to the
Government on 29.06.2002, has made wide ranging recommendations on various
facets of labour viz. review of laws, social security, women & child labour, skill
development, labour administration, unorganized sector etc. The Ministry has
already held intensive consultations and interactions with the workers
representatives, employers’ organizations, experts & professionals etc. The Report of
the Commission has been discussed in various fora including the Consultative
Committee Meetings held on 07.02.2003 and 30.04.2003, the Standing Labour
Committee (SLC) Meeting held on 25th July, 2003 and the Indian Labour Conference
(ILC) Meeting held on 16-18 October, 2003.
1.3 The Ministry of Labour has always been striving to promote harmonious
industrial relations in the country. The Government, being committed to the ethos
and culture of tripartism, took measures to revitalize it. The Ministry continues to
have consultation with the social partners to obtain a consensus for enacting new
laws or bringing about changes in the existing laws. The objective of the Ministry is
to knit the views of all the social partners in framing the policy for working class.
Accordingly, the Ministry of Labour held several tripartite meetings of various
Committees / Boards during the year which inter-alia include 39th Session of the
Standing Labour Committee on 25.07.2003, Tripartite Conference on Occupational
Safety & Health on 17.09.2003, Labour & Health Ministers’ Conference on
18.09.2003, 39th Session of Indian Labour Conference on 16-18 October, 2003 and
meeting of the Central Advisory Board under Minimum Wages Act, 1948 held twice
on 19.12.2003 and 13.02.2004.
INDUSTRIAL RELATIONS
1.5 Similarly, the spatial / industry-wise dispersion of the number of strikes and
lockouts and the workers involved / affected as a result of this is not uniform.
Among States, West Bengal, Tamil Nadu, Andhra Pradesh and Gujarat were the most
affected. Among the industry groups, textiles, engineering, chemicals and coal
mining recorded the maximum number of strikes and lockouts.
1.6 With a view to strengthen the existing adjudicating system, five new Central
Government Industrial Tribunal-cum-Labour Courts have been set up in Delhi,
Ahmedabad, Ernakulam, Guwahati and Chandigarh. This Ministry has also
introduced a system of Lok Adalats, as an alternative dispute redressal mechanism,
in the adjudication system of the CGCT-cum-Labour Courts to reduce the pendency
of industrial disputes. So far 22 Lok Adalats were held and 271 cases settled
therein.
1.7 The Government has accepted the Manisana Wage Board Award for
Journalists and non-Journalists employed in the newspaper industry with some
minor modifications, which significantly improved the wage structure and allowances
of Journalists and non-Journalists employed in the newspaper industry.
1.8 With a view to ensure implementation of the Award, all States and UTs have
specifically been advised to set up Tripartite Committees / Implementation Cells for
speedy and effective implementation of Awards and to furnish progress report on
quarterly basis. Besides, a Central Level Monitoring Committee has also been
constituted under the Chairmanship of Labour & Employment Adviser for reviewing
the implementation of the Awards. It was decided in the meetings that Chief Labour
Commissioner (Central) through his Regional Labour Commissioners (Central) would
liaise with State Governments with regard to effective implementation of the awards.
Involvement of Regional Labour Commissioners (Central) has yielded better results.
1.9 The 39th Session of Indian Labour Conference held on 16-18 October, 2003,
deliberated on following agenda items: -
VULNERABLE SECTIONS
Child Labour
1.11 India has all along followed a proactive policy in the matter of tackling the
problem of child labour by undertaking constitutional, statutory and developmental
measures that are required for its elimination. Under the National Child Labour
Policy, 100 National Child Labour Projects (NCLPs) are in operation in 13 child
labour endemic States for rehabilitation of about 2.11 lakh working children. A major
activity undertaken under the NCLP is the establishment of special schools to
provide non-formal education, vocational training, supplementary nutrition, stipend,
health care etc. to children withdrawn from employment. So far, 1.87 lakh children
from special schools of NCLPs have been mainstreamed into formal education
system. The target is to eliminate child labour in a sequential manner, beginning
with its elimination from hazardous occupations through a determined and focused
effort and progressively move towards its complete elimination from other
occupations. Besides a large number of NGOs are working for elimination of child
labour under the grant-in-aid scheme.
1.12 Apart from continuing the existing 100 NCLPs during the Tenth Plan,
Government has approved setting up of additional 150 NCLPs, in child labour
endemic districts during the 10th Plan. The expanded scheme in additional 50
districts has already been launched in January, 2004 and states have been asked to
set up NCLPs in these identified 50 Districts. In the remaining 100 Districts, the
scheme would be launched after additional 100 districts are identified on the basis of
the 2001 Census Report which is in process. Government has also launched the
INDO-US (INDUS) Child Labour Project on 16.02.2004 during the visit of Mr. Arnold
Levine, Deputy Under Secretary, US Department of Labour and Mr. Kari Tapiola,
Executive Director, International Labour Organisation to India.
Women Labour
Bonded Labour
SOCIAL SECURITY
1.15 The Government has enacted a number of legislations in the area of Social
Security for the workers. The important Acts in this regard are the Workmen’s
Compensation Act, 1923, the Employees’ Provident Fund and Miscellaneous
Provisions Act, 1952, the Maternity Benefits Act, 1961, the Payment of Gratuity Act,
1972 and the Employees’ State Insurance Act, 1948. Several initiatives have been
recently taken to accord larger benefits to workers under these Acts as detailed
below: -
1.16 The Employees’ Provident Fund and Miscellaneous Provisions Act, 1952
provides for compulsory provident fund, pension and deposit linked insurance in
factories / establishments employing 20 or more employees in scheduled industries,
which is implemented through offices of Employees Provident Fund Organisation.
The achievements are as under:
• The coverage of benefits of PF, family pension and deposit linked insurance
increased from 2.31 crore subscribers as on 31.03.1998 to nearly 3.95 crore
subscribers as on 31.03.2003.
• A nationally unique Social Security Number for each worker would be
provided. The scheme was launched by way of a Reinventing – EPF India
programme on 25.02.2003 so as to reduce claim settlement from 30 days to 2-
3 days only.
• A new Directorate of recovery has been approved to step up recovery of EPF
dues.
• Additional facilities of disbursement of pension through 26000 post offices has
been introduced so as to benefit the workers who after retirement go back to
their native placed located in rural and far flung areas.
1.17 To provide for health care and cash benefits in the case of sickness, maternity
and employment injuries, the Employees State Insurance Act was enacted in 1948.
The Employees State Insurance Corporation (ESIC) is implementing the ESI Scheme
introduced in 1952. The achievements are as under:
1.18 As a major policy decision, the Ministry has decided to provide social security
benefits to the workers in the unorganized sector who constitute around 92% of over
400 million strong workforce in the country. To begin with, the Government has
introduced the Social Security Scheme for the unorganized sector workers on a pilot
basis in 50 districts of the country, which was launched on 23.01.2004. The funding
pattern, benefit and institutions involved are summarized below: -
The Social Security Scheme will cover all the workers in the unorganized
sector drawing pay/wages/income not more than Rs.6500/- per month. The
scheme will be financed by the contributions from workers at the rates of
Rs.50/- per month in the age group of 18-35 years and Rs.100/- per month in
the age group of 36-50. The contribution from the employers, wherever
identifiable, will be Rs.100/- per month per worker and Government
contribution will be @ 1.16% of the monthly wages of the worker.
(ii) A personal accident insurance cover for rupees one lakh; and
(iii) Convergence of the Universal Health Insurance Scheme for a worker
and his family at the cost of Rs.548/- per annum for a family of five
members or Rs.365/- per annum for a family of three members.
The coverage, compliance, registration, record keeping and the benefit delivery
will be handled by the EPFO using available market intermediaries like
workers facilitation centres, facilitators like Panchayati Raj Institutions, NGOs,
Self Help Groups, branches of the designated Banks and Post Offices.
Minimum Wages
1.20 The Ministry took several measures to further improve the Welfare schemes
formulated for beedi, non-coal mine and cine workers. The thrust of the welfare
schemes is in the health sector as target groups are involved in health hazardous
occupations. The eligibility ceiling limit has been revised from Rs.6500/- p.m. to
Rs.10,000/-p.m. w.e.f. 26.2.2001 for Limestone & Dolomite Mines Workers, from
Rs.3500/- to Rs.10,000/-p.m. during April, 2003 for beedi workers and from
Rs.1600/- to Rs.8000/- w.e.f. 02.09.2002 for cine workers so as extend benefits
under various welfare schemes excepting housing scheme. The corpus of Beedi
Workers’ Welfare Fund has been increased from Rs.21 crore to Rs.40 crore to
undertake more welfare activities.
1.21 A Bill for setting up a Central Manpower Export Promotion Council and the
Indian Overseas Workers’ Welfare Fund by amending the Emigration Act, 1983, in
order to protect and safeguard the interests of Indian workers going abroad for
employment on contractual basis, was introduced in the Lok Sabha on 21.11.2002.
The Hon’ble Prime Minister on the occasion of the first “Pravasi Bharatiya Divas”
held on 9.1.2003 announced the compulsory Insurance Scheme for the emigrants
going abroad for employment. In pursuance of this announcement, a compulsory
Insurance Scheme known as “Pravasi Bharitya Bima Yojana 2003” has been notified
on 13.11.2003. This scheme has come into force w.e.f. 25.12.2003.
1.23 The Factories (Amendment) Bill, 2003 was introduced in the Lok Sabha on
29.07.2003. The Bill propose to amend Section 66 of the Factories Act, 1948 so as to
provide flexibility in the matter of employment of women during night with adequate
safeguards for their safety, dignity, honour and transportation from the factory
premises to the nearest point of their residence. The Bill was referred to the
Parliamentary Standing Committee on Labour and Welfare on 27.8.2003 for
examination and report. The Committee has finalized its report and laid it on the
Table of the Parliament on 24.12.2003. The recommendations of the Committee are
under examination.
1.28 The Central Government is proposing to bring the amendment in the Labour
Laws (Exemption from Furnishing Returns and Maintenance of Registers by Certain
Establishments) Act, 1988 to simplify the forms of returns and registers prescribed
in various labour laws in the enterprises employing upto 500 persons. Under the
proposal, only one annual report is required to be submitted and only two registers
would be maintained at the work spot. It also provides for maintenance of registers
on computer and furnishing of the annual return through e-mail.
AWARDS
1.29 The Hon’ble Prime Minister distributed the Prime Minister’s Shram Awards on
25.4.2003 for the year 2001 to 37 workers including 1 woman. The awards for the
years 2002 & 2003 were announced on 25th January, 2003 and 14th Aug, 2003,
respectively. The number of awards has also been increased to 33 from the present
17. Further, an award of Shram Veerangana has also been introduced alongwith
Shram Vir. These are given in recognition of contributions towards production &
productivity, technological innovation, cost saving, import substitution, savings of
foreign exchange as also for showing exemplary zeal and enthusiasm in the discharge
of duties.
1.30 From the year 2004, the private sector units employing more than 500
workers will also be brought within the ambit of the Prime Minister’s Shram Awards.
1.31 Vishwakarma Rashtriya Puraskar (VRPs) and National Safety Awards for the
years 2001 and 2002 were distributed by the Union Labour Minister on 17th
September, 2003 at Vigyan Bhawan, New Delhi. In all, 18 awards each under three
classes were given to 38 and 58 winners for the year 2001 and 2002 respectively.
1.33 The National Safety Awards (NSA) are given in recognition of safety
performance on the part of industrial undertakings and ports to stimulate and
maintain the interest of both the management and the workers in accident
prevention programme. These awards are given under six schemes for factories and
two schemes for ports. Total 73 awards for the year 2001 and 74 awards for the year
2002 were given under the scheme.
LABOUR STATISTICS
1.34 The importance of accurate, timely and detailed statistics and research
relating to various aspects of labour activities for taking policy decisions need not be
over-emphasized. The Consumer Price Index for Industrial Workers which
determines the dearness allowance of workers, government employees etc. is
presently being compiled with a two-decade old base 1982. To update the base year,
main survey for collection of income and expenditure data from all the 78 selected
centers, tabulation of data has been completed and fieldwork for Repeat House Rent
Survey is in progress. The new series is expected to be available by mid 2004.
1.36 V.V. Giri National Labour Institute completed 13 research projects in the areas
of labour market, employment & regulations, agrarian relations & rural labour,
integrated labour history, child labour and prevention of HIV/AIDS in the work place.
As many as 32 projects are under various stages of progress. The Institute also
organised 95 training programmes covering 2523 participants. Besides 3 regular
publications, the Institute also brought out occasional publications on research
studies. One international training programmes under International Technology and
Economic Co-operation (ITEC) / Special Commonwealth African Assistance Plan
(SCAAP) programmes are also being organised during the current year.
EDUCATION
1.37 The Central Board for Workers Education has conducted 8538 programmes
and trained 265106 participants during April, 2003 to February, 2004 at national,
regional and unit level on various topics ranging from personality development,
industrial health, safety & environment to industrial relations, trade unionism and
labour welfare development. Special programmes / seminars were also held for
unorganized and rural workers, child labour, women and SC/ST workers.
1.38 The Ministry has drawn an ambitious plan for the welfare and development of
Labour during the Tenth Plan. Special emphasis would be laid for elimination of
child labour, welfare of unorganised sector workers, skill upgradation and
strengthening of labour statistics & research.
1.39 Earlier a zero-based budgeting exercise was carried out during 2001-2002. As
an outcome of this exercise, the number of on-going plan schemes were reduced from
142 to 101 during 2001-2002. The number after rationalization is around 94 in
2003-2004 and 73 during 2004 - 2005 including those schemes, which were earlier,
proposed for transfer from Plan to Non-plan. The total outlay of the Ministry during
the 10th Plan has been placed at Rs.1500 crore, which is 90% higher, compared to
Rs.792 crore in the 9th Plan. Rs.181 crore has been earmarked for the Ministry of
Labour during 2004-05 as against Rs.170 crores during 2003-04.
INTERNATIONAL COOPERATION
1.40 The 91st Session of the International Labour Conference of the International
Labour Organisation (ILO) was held at Geneva from 3-19 June, 2003. An Indian
Tripartite Delegation to the International Labour Conference consisting of
Government officials, Representatives of Workers and Employers led by Union
Labour Minister, Dr. Sahib Singh, accompanied by the then Minister of State for
Labour, Shri Santosh Gangwar, attended and participated in the Conference.
1.43 India took over from the Republic of Korea, the Coordinatorship of the Asia-
Pacific Group .Its main agenda was to nominate unanimously a government delegate
of a country for Chairmanship of the Governing Body (June, 2003-June, 2004) and a
consensus was reached in favour of Republic of Korea after concerted efforts made by
Dr. P.D. Shenoy, Union Labour Secretary as a Coordinator of this Group. The 287th
Session of the Governing Body of the ILO was also held for one-day on 20.06.2003
immediately after the close of the Conference. His Excellency, Mr. Eui-Yong Chug,
Ambassador of Republic of Korea was unanimously elected as Chairperson of the
Governing Body of the ILO for the year 2003 to June, 2004.
1.44 The 288th Session of the Governing Body was held from 6-21 November,
2003.
1.45 Liberalization and globalization have changed the economic scenario and
demand in the labour market. The high quality skilled workforce has gained
prominence as there is greater emphasis on increase in productivity, which has a
direct bearing on the skill available with the labour force. Investment in skill
development and training by all the stakeholders and modernization of training
system are important so as to equip the labour force with employable skill.
1.46 The Government has accorded high priority to the creation of a skilled labour
force as well as skill upgradation in the country to avail the advantages of
globalization. Accordingly, 9 obsolete trades were deleted, 43 new trades introduced
and curriculum of 42 trades revised in the Craftsman’s Training.
1.47 By way of low cost solution to improve the functioning of DGE&T during 2003-
04, the intake capacity of trainees increased from the targeted level of 13530 to
16949, which represents an increase of 25.24%. Further, a target of training 21984,
23678 and 27060 trainees has been fixed for the years 2003-04, 2004-05 and 2005-
06 respectively which would result in doubling the capacity in four years without
creating any infrastructure or new posts. The expansion has been possible by
starting additional short-term courses, running classes on Saturdays, engaging some
guest facilities etc.
1.48 The thrust of these initiatives is to make available the skilled workforce to
meet the target of ten crore new employment opportunities during the next ten years.
These employment opportunities would help in increasing the productivity as well as
income level of the working population.
1.49 The Employment Services to unemployed youth of the country is provided
through 943 Employment Exchanges (including 42 Special Employment Exchanges
for Handicapped), 17 Vocational Rehabilitation Centres for handicapped and 22
coaching-cum-Guidance Centres for Scheduled Castes / Scheduled Tribes. Besides
sponsoring the candidates for considering their selection against the vacancies
notified, the other important role played by the Employment Exchanges is to
motivate and guide the youth for self-employment.
MISCELLANEOUS
• September, 2003 was observed as “Hindi Month” to promote the use of Hindi
in the Ministry. On this occasion, competition and debates were conducted
and awards were given to number of parcipants.
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Industrial Relations
There was improvement in the industrial Relations Scenario during the year 2002.
The total number of strikes and lockouts declined by 20.7% and 6% respectively in
2002, while workers affected due to these disturbances increased by 56.8%.
However, in 2003 (January-September), the number of strikes and lockouts has
recorded a substantial increase of 46.8% respectively in comparison to the same
period of last year.
1.5 The spatial / industry-wise dispersion of the number of strikes and lockouts
and the workers involved / affected as a result of this is not uniform. Among States,
West Bengal, Tamil Nadu, Andhra Pradesh and Gujarat were the most affected.
Among the industry groups, textiles, engineering, chemicals and coal mining
recorded the maximum number of strikes and lockouts.
1.6 Man-days lost is a direct measure of the impact of industrial unrest. At the
aggregate level, man-days lost due to strikes and lockouts increased by 11.82% in
2002 as compared to the previous period. During 2003 (upto September), the
mandays lost due to strikes and lockouts were 21.67 million. Of this, lockouts
accounted for 90% of the total mandays lost.
1.7 With a view to strengthen the existing adjudicating system, five new Central
Government Industrial Tribunal-cum-Labour Courts have been set up in Delhi,
Ahmedabad, Ernakulam, Guwahati and Chandigarh. This Ministry has also
introduced a system of Lok-Adalats as an alternative dispute redressal mechanism in
the adjudication system of the CGIT-cum-Labour Courts to reddress the problem of
the pendency of industrial disputes. So far 22 Lok Adalats were held and 271 cases
settled therein.