Slew of labour law changes in the works
Labour minister Mallikarjun Kharge told FE that his ministry was holding consultations with other ministries to push key labour Bills. “Amendments to Minimum Wages Act, Contract Labour Act and Mines Act are being considered. We are in the process of consultation,” he said.
These three Bills could be taken up in Parliament during the winter session. Archaic labour laws are one of the main hurdles for India to raise the share of manufacturing to 25% of the GDP from the current 17%, which, in turn, could generate 100 million jobs in the next 10 years.
While the government has been planning amendments in labour laws since 2010, the policy paralysis due to opposition protest and disruption of Parliament proceedings over corruption charges have held back reforms.
In recent days, the government has overcome the inertia and announced a spate of big-ticket reforms like hike in diesel prices, capping subsidised LPG sale, FDI in multi-brand retail and allowing foreign airlines to buy stakes in domestic carriers. Kharge confirmed that the labour ministry is in the process of preparing a cabinet note for a Bill to amend the Minimum Wages Act, which proposes to link wages of factory workers to inflation and enhance penalties for erring companies.
The Minimum Wages Act was amended four times since 1995-96, but annual increments have failed to keep pace with rising
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