Page 717 - ES 2020-21_Volume-1-2 [28-01-21]

344 Economic Survey 2020-21 Volume 2

10 Tenth Five Year Plan, 2002-07 Shri K. C. Rigid labour laws applied to the organised
Vol-I & II, Labour Pant, sector make it difficult for the entrepreneur
Welfare & Social Dy. Chairman, to rationalise labour than to dispose of
Security Planning capital assets when the need arises. Effective
Commission cost of labour to the entrepreneur can be
many times the nominal wage bill. Reform
labour laws. Exempt small scale industry
from the rigour of labour laws by replacing
compliance through self-certification and
introducing random inspection. State
Governments authorised to amend labour
laws as per their requirements. Encourage
social dialogue to reduce industrial disputes.
Legislative and adminstrative framework be
created for providing social secuity cover
to unorganised sector workers. A National
Policy on Minimum Wages be evolved to
reduce inter-state variations. Creation of
a reliable information system for labour
migration, initially by conducting a Survey.
11 National Commission 2009 Dr. Arjun Recommended a separate legislation for
for Enterprises in the Sengupta providing social security to unorganized
Unorganized Sector sector workers and also a National Social
Security scheme for providing minimum
social security to the workers.
12 Eleventh Five Year 2007-12 Dr. Montek Lack of flexibility in labour laws, such as
Plan Vol-I, Inclusive Singh Chapter V-B of the Industrial Disputes
Growth Ahluwaliah, Act, 1947 and Contract Labour (R&A) Act,
Dy. Chairman, which focus on job protection, remains
Planning a psychological block for entrepreneurs
Commission against establishing new enterprises with
a large workforce. Contract Labour (R&A)
Act results in the industry letting go of
opportunities for seasonal supplies,
from external markets. In a globalized
economy, manufacturers have to compete
with rivals who enjoy greater flexibility, so
it is necessary to find practical solutions for
the problems created by these laws. Review
existing laws and regulations to : encourage
the corporate sector to move into more
labour-intensive sectors and facilitate the
expansion of employment and output of the
unorganized enterprises that operate in the
labour-intensive sectors.