BackNo hurry on labour reforms: Bandaru Dattatreya
Labour is also a state subject and every state has its aspirations, its own mandate. They can bring in changes as per their needs, says Dattatreya
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Labour minister Bandaru Dattatreya says his ministry is “not in a hurry" to push labour reforms and is in favour of consultations with all stakeholders. In an interview, he emphasized that labour reforms are the need of the hour and the National Democratic Alliance government is committed to rolling them out. “But we don’t want to take away anyone’s rights... we just want to simplify and rationalize laws," he insisted. Edited excerpts:
What were the key achievements of the labour ministry in the past year?
We have provided a labour identification number (LIN) to employers as well as a universal account number (UAN) to employees. Over 9.5 lakh establishments (companies) have been given LIN and 4.5 crore employees (under the Employees’ Provident Fund Organization, or EPFO) have been issued UAN. For ease of doing business, we have started a single online return. Through UAN, we have facilitated portability of provident fund accounts. Besides, the inspector raj is over; we have made the inspection system transparent.
Over the past few months, the labour ministry seems to have been weakened. You haven’t been given cabinet rank, several key transfers have taken place, there is interference in the functioning of organizations like the EPFO and Employees’ State Insurance Corp., and recently, the ministry lost the departments of training and apprenticeship to the skills ministry. What’s your view?
The labour ministry has a role. At least 47 crore people constitute the labour force. So, everyone is linked to the labour ministry. For us, labour laws are important, labour welfare is important, training is important, safety and working conditions are important.
Of these, training was taken away from us because the prime minister wants to improve the employability of young Indians. We will need a more technical workforce to sustain the investments that will flow in. For this, the prime minister has created a new skill development ministry. So, the shift was logical and needed for the country. We have a lot of other departments. Our hands are full.
What are you doing on the labour front to ensure ‘Make in India’ is a success?
Both manufacturing and service sectors are important. In the manufacturing sector, we have to strengthen the micro, small and medium enterprises as they create a lot of jobs. So, we are facilitating their ease of doing business, reforming laws and have already passed the Apprentices Act for the supply of quality manpower. We are also setting up national career council centres for connecting the right candidates with jobs.
One of the criticisms against your ministry is that, through labour reforms, you are trying to curtail the influence of trade unions and promote retrenchment of workers. What’s your defence?
We want to strengthen trade unions. I believe that trade unions should always be strong. But, in the interest of the nation, we want to simplify and rationalize laws. We don’t want to take away anyone’s rights. So, all the proposed labour codes, like the wage code and industrial relations code, are based on the second labour commission’s recommendations (2002).
These reforms are in the proposal stage, and tripartite discussions are on. We are not in a hurry. They are all proposals and we are evaluating them.
So, you are not in a hurry on reforms?
We are not in a hurry.
The Prime Minister’s Office has set up an inter-ministerial committee. What will it do?
Our ministry and our government always want to have a dialogue with trade unions. Consultation is the way to arrive at solutions. We have held a lot of consultations with trade unions. In the past year, we have held 21 tripartite meetings.
Are you saying trade unions are asking for too much?
Not too much. These are long-pending demands. One of the demands is fixing a minimum wage of ₹ 15,000 per month. But who fixes minimum wage? State governments.
Contract labour—it’s been an issue since 2002. There are too many complicated issues and you have to take into account all sides—employees, employers and states.
So, the labour reforms that you have initiated may take a long time as you now believe in more consultations...
The issue is not about time. It’s about arriving at an understanding between trade unions and employers.
The second point is, I may have my own perspective but everybody should think about national interest. What is national interest? There should be growth, more employment opportunities, improvement of industries and of workers. For all this, we have to create a conducive atmosphere.
So, reforms may take time, but they will happen...
They will happen in a phased manner.
Will you allow states to continue with labour reforms?
Labour is also a state subject. States have a role. Every state has its aspirations, its own mandate. So, states can bring in changes as per their needs. If Andhra Pradesh and Telangana say that by reforming laws, they will benefit, then who am I to stop them? We will not oppose, but examine and, if necessary, we will advise.
In the name of reform, critics say you are only listening to industries, not workers. Your view?
We are with workers and with employers. We maintain equidistance. That explains all these tripartite meetings. But I am more friendly to workers.
But your reform proposals do not showcase that friendliness...
Reforms are the need of the hour. They are in the interest of the nation. Every country is looking forward. We should not look back.
Is the prime minister on the same page?
The prime minister wants results.
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