After the rejection of several recommendations of the Second National Commission on Labour by the central trade unions in recently concluded Indian Labour Conference, the Prime Minister Atal Behari Vajpayee has called a meeting of the central trade unions on October 18, 2002. The meeting assumes significance in the context of the unity shown by various trade unions in rejecting the recommendations of the second National Commission on Labour (NCL).

On June 29, 2002 Dr. Ravindra Varma, Chairman of the Second National Commission on Labour had presented the report to the Prime Minister. The report was placed in the cabinet on July 18 2002. The Parliament will take the report for discussion in its winter session.

The Second National Commission on Labour under the Chairman, former Union Labour Minister Dr. Ravindra Varma, was set up on October 15, 1999 to suggest rationalisation of the existing labour laws in the organised sector and umbrella legislation for ensuring minimum level of protection to workers in the unorganised sector. The First National Labour Commission (NLC) was constituted in December 24, 1966 when Jagjivan Ram was the Union Labour Minister, under the Chairmanship of Dr. Gajendragadkar to study and review the conditions of labour since 1947, the labour legislation and the living conditions of workers. Pursuing this legacy involving industrial relations and economy, after a long gap of 33 years, the Second NLC was appointed.

The ten member commission, while developing the framework for its recommendation, was required to take into account, the emerging economic environment involving rapid technological change, globalisation of economy, liberalisation of trade and industry, need for bringing existing laws in tune with future labour market needs and demands.

For detailed and focused study, the Commission had setup six study groups on review of laws, umbrella legislation for unorganised sector workers, globalisation and its impact, social security, women and child labour, skill development training and workers education.

Major Suggestions of the Commission

The Commission suggested new labour laws on labour management relation, wages, occupational safety and health, small enterprise, hours of work, leave and other working condition of work place, child labour and unorganised sector etc.

The Commission also ruled out any need for wage board, statutory or other wise, for fixing wage rates for worker in any industry. It opined that each state or union territory should have the authority to fix minimum rates of wage not less than national level. It also recommended linking of child labour with education by enactment of Child Labour (Prevention and Education) Act.

Referring to the unorganized sector, the Commission recommended that there should be a policy framework that ensures the generation and protection of jobs, access to jobs, protection against the exploitation of poverty and lack of organisation, protection against arbitrary or whimsical dismissal and denial of minimum wages.

It also said that a system of welfare should include access to compensation for injuries suffered while engaged in working, provident fund, medical care, pension benefit, maternity benefits, child care shelter and old age support.

Referring to issue of lay off and retrenchment the Commission recommended, "Prior permission is not necessary in respect of lay off and retrenchment in an establishment of any employment size. Workers will however, be entitled to two month's notice or notice pay in lieu of notice, in case of retrenchment....in case of establishment employing 300 or more workers where lay off exceeds a period of one month, such establishments should be required to obtain a post facto approval of the appropriate government. The provision of chapter V-B pertaining to permission for closure should be made applicable to all establishment to protect the interest of workers in establishments which are not covered at present by this provision if they are employing 300 or more workers." The industrial units can close down their undertakings only after providing adequate compensation to the workers and in the event of an appeal Labour Relation Commission will find ways of redressal.

Different Views

CITU and BMS, have refused to accept the commission's proposal on lay-off or closure of undertakings. "We do not accept this provision at all, even the present ceiling of hundred worker is not accepted to us," said RK Bhakt of BMS.

The Bhartiya Mazdoor Sangh (BMS), had given its note of dissent in the report of NLC submitted to the Prime Minister on controversial issues of retrenchment, lay-off, closure of industrial units, strikes, holidays, working hours, exemption of units from labour laws, outside leadership of trade unions and bonus.

Supporting the NLC report INTUC said, "India will win in world trade by improving its competitiveness by increasing productivity and reducing the cost of production." Meanwhile, the Deputy General Secretary of AITUC, Mr. H Mahadevan has said that commission's report should have guided by the motto of protection of workers rather than survival of the fittest in a liberalised and globalised economic environment. CITU has stated that NLC recommendation would usurp the rights of working class.

AITUC, CITU and HMS have come up with their detailed responses on the recommendations of the Second NCL.