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Business News/ Politics / Policy/  Narendra Modi meets labour unions over proposed reforms
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Narendra Modi meets labour unions over proposed reforms

Unions to take next course of action on strike planned for 2 Sept after listening to Modi's Monday speech

Prime Minister Narendra Modi (right) and finance minister Arun Jaitley (centre) at a meeting with trade union leaders in New Delhi on Sunday. Photo: PTIPremium
Prime Minister Narendra Modi (right) and finance minister Arun Jaitley (centre) at a meeting with trade union leaders in New Delhi on Sunday. Photo: PTI

New Delhi: Prime Minister Narendra Modi told union representatives at a meeting on Sunday that “tripartite consultations are a good system", giving rise to hopes of a resolution of a dispute between the central government and workers over labour reform measures.

This was Modi’s first meeting with leaders of central workers’ unions since coming to power in May 2014. It came on the eve of the 46th Indian Labour Conference (ILC), the apex tripartite labour platform comprising both central and state governments, and representatives of employees and employers.

Modi will address the ILC on Monday and trade unions and political parties will be watching his speech as it may indicate the direction of labour reforms in the country. The ruling National Democratic Alliance (NDA) government has taken up labour reforms to ease the process of doing business in India.

Ashok Singh, vice-president of Indian National Trade Union Congress, which is affiliated to the Congress party, said the prime minister listened to them and said “tripartite consultations are a good system". “If what PM said is true, then we believe that labour reforms will now happen through enough consultations and not by just listening to employers," Singh said.

“The prime minister heard the views of trade union leaders on various issues of interest to workers, including in areas related to economic policy, and related laws," said a statement from the Prime Minister’s Office.

Central trade unions allied to all leading political parties—including Bharatiya Mazdoor Sangh (BMS), an affiliate of the ruling Bharatiya Janata Party— have been speaking against the “unilateral" labour reforms of the government and are opposing several key initiatives like disinvestment of public sector units and foreign direct investment in some sectors.

Trade unions gave a 12-point charter of demands to the central government—first during the United Progressive Alliance government and then to the NDA government twice—in June and in September.

The charter included immediate steps to reduce price rise, universal social security cover for all workers, minimum wages of not less than 15,000 per month and stoppage of disinvestment in central and state enterprises.

B.N. Rai, president of BMS, said two key points emerged after meeting the prime minister. “So far, the perception was, government is not ready to listen to trade unions and that has changed. Now, even PM is serious and ready to listen to resolve issues. Two, after two or three meetings with the group of ministers, you may see improvement in the relationship between unions and government," Rai said after the meeting.

Before meeting Modi, trade unions had a meeting with a group of ministers headed by finance minister Arun Jaitley. Labour minister Bandaru Dattatreya, petroleum minister Dharmendra Pradhan, power minister Piyush Goyal and minister of state in the Prime Minister’s Office Jitendra Singh were the others in the inter-ministerial group that consulted unions.

“The meeting with the inter-ministerial group of ministers was good. Mr. Jaitley listened to all trade unions and took interest in three key issues—minimum wage, social security and labour law enforcement. He said he shall brief the PM about the concern and engage with trade unions regularly for understanding their demands and issues," said national secretary of the All India Trade Union Congress, a labour union affiliated to the Communist Party of India. He said the amending the Bonus Act for improving the eligibility of workers to get bonuses also found favour with the ministers.

But there were differences too, especially on issues related to contract labour and FDI. “Since ILC is on Monday, there were no concrete words today, but it does set the tone for many more meetings. We want the government to deliver than just talk," Sachdeva added.

“Finance minister Jaitley suggested remedies for certain issues which were well received by unions. There were discussions on the basic issues about FDI, contract labour and Bonus Act. These discussions will continue," labour minister Dattatreya told reporters after the meeting.

During the meeting, the unions told the prime minister that if the government does not listen to them, they will have no option but to go on a strike on 2 September as decided earlier.

Trade unions leaders said unions will take the next course of action after listening to Modi’s Monday speech. Sachdeva said none of the ministers spoke about the strike called by unions for 2 September and “joint strike by all unions is on as decided earlier", Sachdeva said.

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Published: 19 Jul 2015, 11:37 PM IST
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