Prime Minister Manmohan Singh on Tuesday highlighted the need to reform many of India?s labour laws while admitting that some laws did not have the desired results. Singh said there could be a need to rethink many of the labour laws to bring in more people into the organised sector.
?We have enacted several progressive labour laws since independence and some even before that. But it appears that not all these laws have had the intended good effects that we would like to see on the ground,? he said while inaugurating the 43rd session of Indian Labour Conference.
There is a need to consider the possible role of some of the labour laws in ?contributing to rigidities in the labour market which hurt the growth of employment,? Singh said while addressing delegates, including trade union representatives, employees and employers.
?Is it possible that our best intentions for labour are not actually met by laws that sound progressive on paper but end up hurting the very workers they are meant to protect? If we want to draw more and more workers into the organised sector where they can claim the benefits that currently cover such a very small proportion of our labour force, do we need to rethink the nature of the laws that enforce such benefits,? he asked.
The Prime Minister also said the government was making serious efforts to moderate inflation. ?We have difficulties but we shall overcome,? he said, referring to prices of essential items. Inflation eased to a 10-month-low in October at 8.58% but is still above RBI?s comfort zone. The government expects inflation to fall to 6% by December.
Noting that the government was not only keen on making growth faster but also inclusive, he said, ?There have been many successes in our initiatives for social and economic inclusion. But we need to do much more?. Asserting that the government was committed to economic reforms with a ?human face?, Singh said its ability to devote more resources for social welfare depended on the ability to accelerate the pace of economic growth of 9-10% per annum.
?Our government is upgrading Industrial Training Institutes into centers of excellence to provide multi-skill courses. Various new schemes for qualitative and quantitative enhancement of vocational training have been launched. The emphasis is on aligning such training with the demands of industry,? Singh said.
Emphasising the need for the industry and labour to work together to remove barriers for faster economic growth and employment, he said the regulatory framework in the labour sector should encourage investment in labour-intensive industries and also ensure welfare of workers. ?We should constantly introspect whether our policies are serving our goals. We should reflect upon possible flaws in our policies as well as ways to strengthen policy to withstand adverse circumstances,? he said.
Singh also advocated the strengthening of micro and small enterprises, saying they encompass a range of economic activities and helps check migration to urban areas. He also sought the private sector?s active participation for the success of the government?s skill development programmes.
