"This should be made possible by only intimating the state government and a three months notice to the employees," says a memorandum presented to the government by the Northern Indian Textiles Mills Association (Nitma).

Nitma is of the opinion that inefficiency and low productivity got passed on to the consumers, in the shape of higher costs and prices. Similarly, the labour laws were designed, to help the emergence of strong trade unions so that there is an institutional arrangement to protect and represent the labour classes of the country. The system resulted into considerably lower economic growth.

There was unwarranted union militancy, wage hikes or bonuses unlinked with profitability or productivity of the unit, and to reverse this, certain measures need to be adopted. On installation of new machinery or scrapping some part of the old machinery, there should be freedom to terminate the services of some employees, by payment of fixed compensation which should be stipulated in the law itself.

The right to strike should only be available to the workers, if 66 per cent of the labour force endorses such a decision. Besides, a recognised union within the industrial unit should have at least a minimum of 25 per cent of the workers on their membership roll. The recommendations suggest that the leadership of the trade union should be restricted to employees of that unit only. Wages and productivity should be clearly linked together.

Relocation of workers within the factory or within the factories, coming under the same management and retraining should be encouraged and made mandatory in case thw work situation demands it. Older industrial units located within larger cities, should have the right to close down and sell the land, without any permission whatsoever.