PM seeks consensus for labour reforms

With a saffron union openly opposing labour reforms, Prime Minister Narendra Modi today sought to reach out to trade unions saying talks and consensus are the only way to resolve "old complex issues" as he pitched for economic growth for creating jobs.

In an apparent push for reforms in the sector to make it easier for companies to do business, he also spoke of the need to "modify laws by adding some and scrapping some" to improve productivity.

Addressing a gathering of labour unions as well as industry and officials, the Prime Minister utilised the platform of the tripartite Indian Labour Conference, the first such meeting after his coming to power last year, to give a message that talks between the three were the only way forward.

"Efforts would be made to modify labour laws through consensus," he said, adding that the consultation process with trade unions would continue.

Modi further said that the "obsolete and unnecessary" laws were being weeded out as part of the government's objective to achieve "minimum government and maximum governance".

Finance Minister Arun Jaitley, who heads a ministerial panel discussing labour reforms with trade unions, warned of a threat to job creation if investment were blocked and appealed to unions not to persist with ideas that harm economy.

The tone for the conference was set by BJP-affiliate BMS National President B N Rai who criticised the government over a "few wrong policies" and asserted they would not allow reforms at the cost of labour. 

Among the country's major trade unions, BMS demanded that the industry-friendly factories act enacted by BJP-ruled Rajasthan government as also the new labour laws by the Centre be withdrawn.

"The government has adopted few wrong policies by taking such actions which directly affect labour in particular and people in general," Rai said.

Among the "wrong policies", he listed unilateral enactment of Apprentice Act as well as "allowing Rajasthan government to do unilateral changes in Factories and other labour laws, which has motivated Maharashtra, Madhya Pradesh, Haryana and other (state) government to follow the same line".

After Prime Minister's speech, Gurudas Dasgupta, General Secretary of All India Trade Unions Congress, said, "conditions have to be created for working together but they are not there. Labour laws are being changed without talking to trade unions."

He said there was no change in the stand of the labour unions to go on a nationwide strike on September 2 in support of their 12-point charter of demand.

The government has set up a high-level inter-ministerial committee under Finance Minister Arun Jaitley to evolve a consensus on labour reforms. The first meet, which was held on Sunday, failed to make any substantive headway.

Talking about different interest groups, Modi said that there was a thin line dividing the interest of industry and industrialists, government and nation, and labour and labour organisations.

Often, one talks about saving the industry but ends up protecting industrialists, one talks about protecting workers but ends up protecting unions. Similarly, one talks about safeguarding the country but end up protecting the government, he said.

"There is a need to recognise this thin line and adopt a balanced approach to the deal with the issues and change the environment," he said.