The 38th Indian Labour Conference (ILC), also known as "Labour Parliament of India" concluded on September 29, 2002 with a lot of disagreements on various issues concerning labour. ILC is a platform where the industrial problems are discussed and a consensus is reached on the major policy issues, among the three partners -the government, the workers and the employers. The first labour conference was held in 1940 and since then, 38 such tripartite conferences have been held. Inaugurated by the Prime Minister Atal Behari Vajpayee on September 28, 2002 at Vigyan Bhawan in New Delhi, the conference was attended by the Central Labour Minister Sahib Singh Verma, various Labour Ministers and labour officials from state and union territories and representatives of employees and employers.

Prime Minister Atal Bihari Vajpayee, in his inaugural speech, had asserted that the government was committed to economic reforms and pleaded with representatives of both workers and employers for consensus on these issues. Labour Minister Sahib Singh Verma in his address said, "the two social partners that is the employers and workers have to face the challenges posed by globalisation by coming together and addressing common issues relating to the economic viability of enterprises." The trade unions AITUC, CITU, BMS and HMS expressed their views in their approach papers.

(1) The impact of globalisation on Indian economy, particularly on employment, (2) Social Safety net, (3) Disinvestment policy of the Government, (4) Problems and challenges being faced by the small-scale industries (SSI) and (5) Report of Second National Commission on Labour were the items of discussion in the agenda.

The 38th session of the Indian Labour Conference failed to produce consensus on two most controversial economic issues concerning labour -disinvestment policy of the government and impact of globalisation. Differences surfaced during the group discussions with both the representatives of the employers and employees sticking to their well-known positions.

AITUC, CITU and HMS measured the globalisation policy as tuned by the foreign capitalist lobby, which neither generate employment nor bring relief to the aggravating unemployment situation. According to them it converted the manufacturing economy of the developing countries into a market place through the process of de-industrialisation.

The labour representatives including BMS opposed disinvestment policy and wanted its review, as, in their view, it did not serve the interest of the workers. They demanded that there should be no disinvestment in profit-making public sector undertakings.

Trade unions except INTUC disagreed with many recommendations of the Second National Labour Commission (NLC) especially the modification of laws to facilitate lay-off and retrenchments. However, the Labour Minister assured of organising discussions on the labour commission report.

All the trade unions had a similar position on the challenges of competition faced by Small-Scale Industries (SSI) from opening up of the economic globalisation and WTO commitments. The SSIs are threatened in operation even in the smaller market because of invasion of branded products through publicity blitz and satellite channels. The unions vehemently opposed the government's move to take the small-scale industries out of the preview of labour legislation.

The employers' representatives welcomed and supported the policy of disinvestment and other reform initiatives for enhancing the efficiency and competitiveness of the enterprises. They also endorsed the view expressed by the Labour Commission report.

The ILC demanded a comprehensive law on social security and the workers who lose their job should be provided minimum financial assistance for "a reasonable duration of unemployment." The ILC urged the government to double the social security amount from one per cent to two per cent of the GDP each year.

The 38th session of ILC concluded without resolving differences over the Second Labour Commission report and the disinvestment policy. There was, however, unanimity only on issue of social security. The ILC even called for a review of globalisation policy. Confronted with differences over the disinvestment policy, the Government said the "positive suggestions" made during the session would help it "fine-tune" the divestment process. The conference ended with a press conference by Labour Minister Sahib Singh Verma where he admitted that no consensus could be achieved on disinvestment.