Article: Amendment to the Contract Labour Act faces opposition

Employee Relations

Amendment to the Contract Labour Act faces opposition

The violence that broke out at Maruti’s Manesar unit brought the issue of India’s contract labor to the discussion table. However, what is all the more intriguing is the fact that since 2010, when the labour ministry started work on an amendment to the Contract Labor Act, it has faced opposition from government departments that are worried about the financial implications on public sector enterprises under them. One such ministry happens to be the food ministry which oversees the Food Corporation of India, FCI – one of India’s largest employers of contract workers. The ministry has opposed a landmark government move to bring the wages and working conditions of contract workers on a par with regular employees, saying it would inflate the food subsidy bill. Other than the food ministry, ministries overseeing public sector companies in coal, mining, petroleum have also opposed the amendment. 

The violence that broke out at Maruti’s Manesar unit brought the issue of India’s contract labor to the discussion table. However, what is all the more intriguing is the fact that since 2010, when the labour ministry started work on an amendment to the Contract Labor Act, it has faced opposition from government departments that are worried about the financial implications on public sector enterprises under them. One such ministry happens to be the food ministry which oversees the Food Corporation of India, FCI – one of India’s largest employers of contract workers. The ministry has opposed a landmark government move to bring the wages and working conditions of contract workers on a par with regular employees, saying it would inflate the food subsidy bill. Other than the food ministry, ministries overseeing public sector companies in coal, mining, petroleum have also opposed the amendment. 

Source: The Economic Times

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Topics: Employee Relations

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