Around the time when crucial labour laws in Karnataka are being looked into to bring industry-friendly changes, the government’s decision to put Principal Secretary, Commerce and Industries (MSME and Mines), M. Maheshwar Rao in concurrent charge as Labour Secretary has raised eyebrows of trade unions that term it as conflict of interest.
Over the last fortnight, the Industries Department has been pushing for changes in labour laws, which the Labour Department has been opposed to so far. Among the Acts that are being discussed are the crucial Factories Act, Industrial Disputes Act, Contract Labour (Regulation and Abolition) Act, and Minimum Wages Act.
As MSME and Mines Principal Secretary, Mr. Rao has suggested changes in Factories Act to increase working hours per shift from the current 8 to 12 in line with the decision taken in Gujarat. He has also sought postponement of implementation by one year of the revised minimum wages notified under the Minimum Wages Act, which was to have come into force from April 2020. Further, the MSME and Mines section in the Commerce and Industries Department has sought exemption from paying rise in variable dearness allowance in the wages during 2020-21 and also defer the payment of PF and ESI contribution for a period of three months, all of which was viewed as anti-labour and opposed to by the trade unions.
Changes opposed
In fact, in contrast with Mr. Rao’s proposal to dilute some of the labour laws, the Labour Department that he heads now, in a note put out recently, has said that if industries were given exemption from labour laws, workers would be denied their legitimate facilities. The Labour Department, which studied the U.P. model of three years holiday from labour laws, which is now being considered in Karnataka too, has said that the proposal to provide labour holidays would mean a large workforce would be denied facilities, and it is important to discuss the matter with stakeholders before taking the decision.
The Labour Department also felt that the situation in Uttar Pradesh was very different from what it is in Karnataka, which is already industrialised, providing employment even to the migrants.
Meanwhile, AITUC Secretary, Bengaluru, M. Sathyananda said: “This is a clear case of conflict of interest. The Industries Department has put up its wishlist. In industrial relations, the capital and wage are always in conflict and a tripartite mechanism is its corner stone. With the same person now heading industries and labour departments, it is not possible to have an unbiased view.” Further, with industries bodies such as Karnataka Employers’ Association seeking change in the Labour Department leadership, the same person heading these two departments, will not lead to a congenial atmosphere. He also said that unlike Gujarat, U.P. and Madhya Pradesh that have announced labour holidays, Karnataka already has a diverse range of industries working well for decades.
Attempts to reach out to Labour Minister A. Shivaram Hebbar and Mr. Maheshwar Rao for their views did not fructify.
