India‘s major setback in the growth of its industries is being mainly attributed to its complicated regulatory mechanisms. New labor reforms addresses these issues to some extent.
There are complaints from many companies of improper behavior of inspectors. Hence, new computerized system of allocating inspectors will be useful in curbing such incidents. Also, obligation to submit report online within 72 hours will further strengthen the motives of reforms.
However, as companies will be knowing of the time when inspectors will be coming, it gives them incentive to stop improper practices in production and then again resume them once the inspection has been done. Impromptu visits by inspectors can be a good solution. This way the problem of corporate corruption and blackmailing by government officials can be targeted.
Universal account number will give employee freedom to search new job, if he is unsatisfied with current one, without caring for complicated procedure for opening new account. PF money can also be efficiently saved this way. PF money of several thousand crores, lying idle in bank accounts should also be given to the beneficiaries.
Replacing multiplying forms with single form for employer will induce positive sentiment among entrepreneurs. This way, maximum governance through minimum efforts can be achieved. But, welfare of employees should be kept in mind while reforming such procedures.
Government has also decided to repeal older laws and amend them to encourage industries to develop. Different laws like Industrial disputes act, Factories act will be amended. Demands of workers i.e. their representative unions should be considered as this step will be directly affecting them.
To encourage more businesses to ‘Make In India’, we must have enough skilled manpower. This issue can be addressed through ‘Pandit Deen Dayal Upadhyay Apprenticeship Protsahan Yojana’. New ITI’s and many vocational courses will be offered and youth will be encouraged to take such courses. Job guarantee, stipend can be assured to such youth to encourage them.
Most of the reforms undertaken addresses mainly the issues of entrepreneurs and investors, proper measures should also be taken to address the issues of workers who are currently suffering from many issues like low wages, degraded standard of living, extra working hours, jobs on contract basis which causes job uncertainty etc. Their views should be considered during such reforms. Special laws for women affecting due to these reforms should be made considering their safety.
Subsequently, unorganized sector workers should also be gradually included in the ambit of these reforms, as they account for nearly 90% of working population without any safeguards.
By: Dhammapal Avhad