Jul 08 2014 : The Times of India (Delhi)
Factories Act revamp may signal labour law reforms
New Delhi:
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Just days before the 2014-15 Union Budget, the Centre on Monday said it planned to amend the archaic Factories Act, 1948 -the first move in more than a decade to revamp labour laws. Most governments have avoided labour reforms for fear of a backlash from the politically powerful labour lobby .Firms have cited obsolete labour laws as a key hurdle to doing business; the government's move is expected to send out a positive signal as it gets down to the business of attracting investment. It also sits well with its pledge to ease the processes of doing business and make India an attractive destination, revive manufacturing and create jobs.
Minister of state for mines, steel and labour Vishnu Deo told the Lok Sabha in a written reply that the proposed major amendments would include relaxing restrictions on night duty for women in factories subject to certain conditions and increase in the limit of overtime to 100 hours (existing 50 hours) in a quarter.
It would also include provision of protective equipment for safety of workers and more precautions against fumes and gases. The central government would be empowered to make rules, a departure from the current practice where states frame the rules.
Experts said the proposed changes to the Factories Act would ensure employees' health safeguards. The plan to allow women to work in night shifts would benefit sectors such as textiles and garments.
“Changes to the Factories Act will help reduce red tape, end inspector raj and bring in transparency for workers and employers,“ said Sanjay Bhatia, president, Ficci Confederation of Micro, Small and Medium Enterprises.
The intention to amend the Act comes after the BJP government in Rajasthan moved to amend four central laws which include the Industrial Disputes Act, the Contracts Labour Act, the Factories Act and the Apprenticeship Act.
Current rules stipulate that the Factories Act would be applicable to manufacturing units employing at least 10 workers and operating on power, and 20 employees for those units without power.
“The final version of the amendments should be discussed with the trade unions,“ said A K Padmanabhan, president of CITU. Retail giant Carrefour announces India exit F rench major Carrefour, the world's second largest retailer, on Monday announced its exit from India, months after the ruling BJP made it clear that it was opposed to FDI in multi-brand retail . “Carrefour today announced its intention to close its five cash-and-carry stores in India, where it has operated since 2010. The closure of Carrefour's business in India will be effective at the end of September 2014... “ the company said in a statement on its website late Monday evening. P 25
Minister of state for mines, steel and labour Vishnu Deo told the Lok Sabha in a written reply that the proposed major amendments would include relaxing restrictions on night duty for women in factories subject to certain conditions and increase in the limit of overtime to 100 hours (existing 50 hours) in a quarter.
It would also include provision of protective equipment for safety of workers and more precautions against fumes and gases. The central government would be empowered to make rules, a departure from the current practice where states frame the rules.
Experts said the proposed changes to the Factories Act would ensure employees' health safeguards. The plan to allow women to work in night shifts would benefit sectors such as textiles and garments.
“Changes to the Factories Act will help reduce red tape, end inspector raj and bring in transparency for workers and employers,“ said Sanjay Bhatia, president, Ficci Confederation of Micro, Small and Medium Enterprises.
The intention to amend the Act comes after the BJP government in Rajasthan moved to amend four central laws which include the Industrial Disputes Act, the Contracts Labour Act, the Factories Act and the Apprenticeship Act.
Current rules stipulate that the Factories Act would be applicable to manufacturing units employing at least 10 workers and operating on power, and 20 employees for those units without power.
“The final version of the amendments should be discussed with the trade unions,“ said A K Padmanabhan, president of CITU. Retail giant Carrefour announces India exit F rench major Carrefour, the world's second largest retailer, on Monday announced its exit from India, months after the ruling BJP made it clear that it was opposed to FDI in multi-brand retail . “Carrefour today announced its intention to close its five cash-and-carry stores in India, where it has operated since 2010. The closure of Carrefour's business in India will be effective at the end of September 2014... “ the company said in a statement on its website late Monday evening. P 25
