In view of economic liberalization of labour laws. Government of India set up 2nd National commission of Labour under chairmanship of Mr. Ravindra Varma
(a) To suggest measures about rationalization of labour laws
(b) To suggest”umbrella” legislation for ensuring a minimum level of protection to the workers in the organized sector.
NCL suggested following definition for “Rationalization”—In our understanding rationalization means only making laws more consistent with the context more consistent with each other, less cumbersome, simple and more transparent.”
The commission believes the level of wages depend on economic efficiency of an undertaking.” The commission further adds “workers have to be interested in productivity as the management is.”
The interest on work depends upon proper inspiration from management how management can impose upon the workers work, ethics and culture. It has been seen; many entities in Indian Work scenario employ a worker for 12 to 15 hours in a day at this era of LPG. But in terms of wages they have not adequately been compensated.
Moreover, companies should behave in a more transparent manner and follow the principles of corporate government Mantra. Mrs. Narayana Murthy said properly “I feel that corporate leaders should not use resources of the company for their personal use. Never before have business leaders lost trust like this.”
Some Recommendations of Second Labour Commission are:
- Commission uses the work “worker” instead of “workman.”
- Commission prescribes separate law for protection of highly paid jobs or other than worker.
- Commission feels to give certain level of protection to the managerial employees.
- For labour Management Relations all settlement clauses should be binding on everybody.
- All labour laws should give a well defined social security.
- Wages to include basic D.A., other perks and even bonus should be under remuneration.
- “Retrenchment” means termination of employment to reduce surplus labour.
- A contract labour cannot be engaged in production/service activities. Contract labour should be given remuneration at the regular rate of regular grade. No worker shall be kept continuously as a casual worker for more than 3 years against a permanent job.
- Every employee should be paid one month’s pay as bonus.
- Every worker should have a right to enjoy minimum wage.
- Child labour is a crime.
- Five holidays and restricted leave.
- No permission for “lay off’.
The commission should have been more specific towards determination of supervisory worker. The threshold limit of Rs. 25000 may keep much supervisory level of workers within ambit of the proper definition of workers.
The commission makes it clear that workers’ participation in management for the organization employing more than 300 people is essential. But they have left out this organization whose entities are below 300 peoples.
The commission does not define what is illegal strike or illegal lockout. Strikes and lockouts are not same thing. Some of the commission recommendations are good. But more debate is necessary before these provisions are incorporated in the provision of law.