Taking cue from UP, Ludhiana industry seeks exemption from labour laws for workers

Following Uttar Pradesh (UP) government’s decision to exempt factories and businesses from the purview of a few labour laws for three years, the Ludhiana chapter of the Chamber of Industrial and Commercial Undertakings (CICU) on Monday demanded similar steps by the Punjab government.

The city-based industry body has also demanded that the factory owners be exempted from contributing to social security schemes for labour, including employees’ provident fund and employees’ state insurance, which come to around 28.5% of salaries.

A delegation of CICU members met cabinet minister Bharat Bhushan Ashu and demanded that an ordinance be approved by the state government exempting the industry from certain labour laws for at least three years.

With the passage of ‘Uttar Pradesh Temporary Exemption from Certain Labour Laws Ordinance’ passed by the UP government last week, industries in the state are now exempted from laws related to the settling of industrial disputes, occupational safety, health and working conditions of workers, and those related to contract workers. Building and Other Construction Workers Act, Workmen Compensation Act, Bonded Labour System (Abolition) Act and Section 5 of the Payment of Wages Act, however, still remain in force across the state.

‘TWO MILLION LABOURERS WORKING IN CITY INDUSTRIES’

In Ludhiana, over 95,000 factories are registered with the district industries centre and have obtained Udyog Aadhaar in the past. As per the industrialists, out of two million labourers working in the city, around 13 lakh are migratory.

CICU president Upkar Singh Ahuja and general secretary Pankaj Sharma said the Punjab government should “provide immediate relief to the industry that is facing a huge crisis.” “Exemption from the labour laws will help the industry revive in the minimal time possible,” said Ahuja, adding that they have also asked the government to waive off fixed charges in power bills. Knitwear and Textile Club president Vinod Thapar reiterated similar thoughts.

‘LABOUR WILL NOT BE EXPLOITED’

National president of All Industries and Trade Forum (AITF), Badish Jindal, said, “Even the employers are not socially secure at this time. How can they bear the liability of 28.5% social security schemes for labour? Rules are imposed at a time when the industry works comfortably, but now, the government should take steps to provide relief to the industrialists so the industry sails through the ongoing crisis.” He also said that the exemption from labour laws would not result in labour exploitation. “As there is a shortage of labour in the industry, the labourers will have a choice to move from one unit to another,” he said.