Labour Laws and  Unions

Patronizing Labour Laws were perhaps needed till about 50 years ago to protect the less educated or even un-educated labourers from being exploited by unscrupulous Capitalists. Since then, better educated employees, digitally connected and informed of opportunities elsewhere, especially in the knowledge and skilled fields, are able to better negotiate for themselves.

Unions are like direct marketing organizations. They collect tithe/ fees from members, retain a portion for local expenses and pass the rest up the line right upto the International Headquarters. The Union leaders at various levels use their collective bargaining power to benefit the Union leaders more than the general members. The Unions, already having lost much of their membership in the Developed countries and afraid of losing their hold in the Government and public sector units in India, are desperate to position themselves as protectors of the labourers/employees, wherein in actual fact most are sitting like ‘Dogs in the Manger’ preventing the Government from monetizing the resources locked in the ‘Sick’ units for the real benefit of the really poor. (See-”Garibi Hatao!”).

To encourage entrepreneurs, to set up MSME’s, we need to remove the stranglehold of the many Labour Laws of today, at least for enterprises employing upto say 2000 or even upto 5000 employees. ESI and PF laws should also, be reviewed. After all equity requires that if the employee has the freedom to quit when he chooses, then the employer must also, have the freedom to dismiss. A minimum notice period of say one month and gratuity for the period of service rendered would be enough to allow the dismissed employee to find another job if he/she so desires. Even this would be subject to the business being solvent and running.

Financing

In addition to Entrepreneurs and Businessmen, Craftsmen, Artisans, Weavers and such skilled persons should also, be given the opportunity to get necessary finance at low interest rates. The MUDRA loans are a right step in this direction, but the procedures for availing such a loan must be made easier. Of course, the Bank or other financing Institution should properly monitor the use of the loan.

Local private Banks with ‘skin in the game’ where any losses would affect them would be better investors or lenders.

Marketing

Digital connectivity and marketing platforms linked across the region or even across the Country, with on-line rating of the suppliers done by the customers as done in eBay, should be encouraged.

Insurance

The COVID-19 experience has brought home the many expenses the Government has to bear for improperly regulated employment, both within India and abroad. We therefore need to insist that all such employees be insured against such circumstances, either by their prospective employers or, in case of employment abroad, by their Travel Agents or themselves. Also, that the Domestic migrant workers be assured of decent accommodation and food by the contractors, especially in the construction and infrastructure industry.

Regulation/ Taxation

A Nation is prosperous when its middle-class (Artisans /Craftsmen, Traders, Farmers and MSME’s) are rich. We need to encourage innovators, entrepreneurs and traders and insist on quality standard for their processes/ products, to include Dharma in their attitude and a sense of pride in whatever they do. We need to trust our Citizen and deal with them with an attitude of ‘Trust but Verify’ and not as we do today with that of ‘Suspect, Inspect, Harass and Confiscate’.

Today many regulations accord power to even a petty Government official to call for unnecessary penalties and then harass the Entrepreneur/ Businessmen to either pay a bribe as demanded or face the cost of going to a Tribunal/Court, after depositing 50 percent of the alleged dues and also incur the legal costs, harassment and loss of time. No wonder some thousands of hardworking Innovators/Industrialists/Businessmen, the wealth creators, leave the country every year for more encouraging climes.

Such power should never be accorded to such Envious/Greedy/Slimy petty officials and their like-minded superiors. Proper De-regulation is what is urgently called for today.

Conclusion

India, from ancient times, has been the land of innovators, entrepreneurs and traders. It was only under the Colonizers that such abilities and opportunities were systematically denied/destroyed.

We need to again encourage such an attitude and learn to trust our citizens, even if with the attitude of ‘Trust but Verify’ and do away with the old attitude of ‘Suspect, Inspect, Harass and Confiscate’.

Wealth growers whether- Farmers, Craftsmen, Artisans, or the knowledge and digital entrepreneurs of today, should all be encouraged. After all it is only when wealth is increasingly generated that prosperity ensues.

Hence, today our slogan should not only be -’Jai Jawan’, ‘Jai Kisan’ but also, ‘Jai Udyogan’.

Annexure

Excessive regulations lead to harassment and also, kill entrepreneurship. However, proper regulations in the areas as given below are a must.

1. 1. Occupation and Industrial safety and Fire safety.
   2. Food and Drugs and anti- adulteration.
   3. Standardization for Products and Labelling.
   4. Certification for Service Providers.
   5. Consumer protection.
   6. Protection against Monopolies and Restrictive Trade Practices.
   7. Minimum wages as deemed appropriate in various regions in urban/semi urban and rural areas.
   8. ‘Whistle-blower’ protection.
   9. Work related insurance coverage as well as necessity for employee and family minimum health insurance coverage plans.
   10. Government regulated, employee contributed, short-term unemploy-mentbenefits and long-term pension funds.

JAI JAWAN! – JAI KISAN! – JAI UDYOGAN!

JAI BHARAT! – JAI HIND!

Pages: 1 2 3 4