The meeting called by the Prime Minister Atal Bihari Vajpayee with the trade union (TU) leaders on October 18, 2002, to resolve the differences on labour reforms recommended by the Second National Commission on Labour (NCL) failed to reach a consensus. The TU leaders were opposed to the labour reforms and the recommendations of the second National Labour Commission, in the meeting. However, the Prime Minister agreed to hold a tripartite meeting to discuss the controversial issues.

According to a Press statement circulated after the meeting, AITUC General Secretary Gurudas Das Gupta told the Prime Minister that any bid to dilute the labour laws allowing hire and fire, contractualisation and casualisation would be opposed jointly by the trade unions. He had also raised the issue of violation of the existing labour laws in private as well as in public sectors.

CITU Secretary PK Ganguly said that he informed the Prime Minister that the trade unions will be launching a nation wide mass campaign to put workers' pressure on the Government, to stop from introducing labour reforms as proposed by the NCL recommendations.

BMS leader Hasubhai Dave said that on the issue of disinvestment, Labour Minister Sahib Singh Verma, who was also present in the meeting, has assured the TU leaders that the Government would constitute a review commission taking up the cases of BALCO and Modern foods.

INTUC President Sanjeev Reddy, HMS General Secretary Umraomal Purohit, UTUC General Secretary SR Sengupta and UTUC-LS leader Achinta Sinha also attended the meeting.

Labour Minister Sahib Singh Verma, addressing a press conference had said, "In the backdrop of new economic environment, a legislation to rationalise labour laws, which are more practical and logical, will be brought in the Budget session of Parliament." He added that social security cover to the workers in unorganised sector would also be introduced in the Budget session, outdated laws would be scraped and new progressive laws would be included in the new Act. He said umbrella legislation for the unorganised sector would also be tabled in the Budget session for the welfare of more than 350 million workers. The Labour Minister also called for a consensus in favour of disinvestment policy of the government.