(FE)
The Modi government will unleash the next set of reforms necessary for improving the ease of doing business by pressing for the passage of the twin codes on wages and industrial relations that form the crux of its agenda for reducing labour market rigidities. Official sources told FE that both the codes, which have already undergone legal vetting, would be taken to the Cabniet soon for approval and once it is secured, placed in Parliament, most likely in the second half of the budget session.
Among the major proposals are introducing fixed-term employment – which was made applicable in the textile and garment industries last year – in all the sectors, allowing units employing up to 300 people to retrench/lay off workers and/or close down without government approval, making trade unions with negotiating powers more representative, barring outsiders from being office-bearers of unions in the organised sector and reducing such persons’ role in union activities in the unoranised sector. Also, an industrial strike would be defined afresh by including concerted casual leave by 50% of more workers while the provision for prior notice of strike would be extended to “all activities similar to existing public utility services”.The extension of fixed-term employment to all sectors would help generate fresh jobs and thus, could be a win-win for both the workers and employers, analysts said.
