Repeal labour laws to boost production, create jobs: NMCC

Written by Press Trust of India | Updated: Feb 27 2014, 10:41am hrs
Blaming rigid labour laws for declining manufacturing output and poor job creation, the National Manufacturing Competitiveness Council (NMCC) has asked the government to replace the dated laws with new ones to suit the needs of modern business.

In a letter to labour and employment minister Oscar Fernandes, NMCC chairman V Krishnamurthy has said that the existing labour laws are dated and are acting as a disincentive to SMEs growth.

We have 44 laws relating to labour. Repealing the existing labour laws and replacing them with new labour laws suited to the 21st century and in consonance with our International Labour Organization obligations is an essential pre-requisite for success in large scale employment generation in manufacturing, the letter said.

He has suggested to make a single comprehensive law or a maximum of three laws related with labour's safety, welfare and rights.

NMCC member secretary Ajay Shankar said that there is an urgent need for labour reforms. Every labour law puts lot of regulatory burden on companies. Big firms can comply with that but SMEs can not. To reduce these hurdles, there is need to repeal the existing laws. But the move requires political will, he said.