Gujarat pins hopes on Prez nod for labour rules relaxation

AHMEDABAD: At a time when states like Uttar Pradesh and Rajasthan have done a rethink about their decisions to amend labour laws ahead of restarting economic activities post Covid-19 lockdown, Gujarat government remains hopeful of making changes in the existing laws.
The state government has recently drafted an ordinance and sent to the Centre for approval and securing presidential assent, said a senior state government official.He said that the government remained firm in its decision and that there was no rethink.
In the new set of rules proposed, the state government has decided to give waiver to all new industries from applicability of all key labour laws for a period of 1,200 days. This does not include Workmen Compensation Act, 1923, Minimum Wages Act and Industrial Safety Rules.
Chief minister Vijay Rupani had on May 8 directed the labour department to prepare an ordinance on these lines.
Uttar Pradesh government has recently withdrawn its order diluting certain provisions of Factories Act following a rap from Allahabad high court. The country’s largest state had increased the working hours from 8 to 12 hours which was later withdrawn. Soon, Rajasthan, which had also proposed a similar move, withdrew its decision.
The changes in rules in Gujarat are aimed to attracting the large number of industries and MNCs from Japan, USA, Korea and European nations which are willing to shift their production from China to other countries in the wake of Covid-19 pandemic, said government sources. Gujarat has also proposed extension of work hours from 8 to 12 hours a day.
“Gujarat workforce would consist of more than 50 lakh migrant workers. They have already suffered a lot during the Covid-19 lockdown period. Such regressive steps can further dent the state’s image and make them rethink of returning. This could only hurt the industries further,” said an official working with an infrastructure company.
Many labour unions have opposed the reforms in states like Gujarat and asked the International Labour Organisation (ILO) to intervene and take up the issue with the Indian government. In a letter to trade unions dated May 22, ILO said it has objected to the ordinances proposed to temporarily scrap labour laws in Uttar Pradesh and Gujarat. It has also objected to executive orders issued by at least 10 states to increase the daily working limit from 8 to 12 hours.
India being a signatory to the ILO, some of the changes proposed by the states are against ILO conventions, said government sources.
While the state government can exempt factories from compliance of all provisions of the Factories Act, it can do it only for three-month period, sources added.