Future growth hinges on a radical shift

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: Aiming to position Orissa as a major industrial hub, the state government is working to put into place an industry-friendly labour policy to attract more investments to the state. Says Jaynarayana Mishra, the state labour minister, “In the changed scenario, the archaic labour Acts have become redundant. Labour reform is now at the top of our agenda.” The endeavour will be to make labour laws more investor friendly.

To begin with, the state government has made an attempt to introduce the contract recruitment system in public enterprises.

To appease labour unions in these enterprises, it has made a beginning by offering voluntary retirement schemes and voluntary separation schemes. In an avant-garde decision, it is encouraging contract appointments in government services.

Ironically, Orissa has led the way for the exploitation of labour. As people are poor and illiterate, employers exploit them unscrupulously. The state has a labour force of 1.25 crore, which is about one-third the state’s population.

About 92% of this workforce belongs to the unorganised sector. Most of them are underpaid. The state’s Directorate of Labour has not been able to enforce labour protection laws adequately, while the trade union movement is only limited to certain industrial pockets.