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Madhya Pradesh State Industrial Development Corporation Limited

 

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4 Economic Development Board

 

Economic Development Policy

LABOUR  

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PREAMBLE

The chapters on Fundamental Rights and Directive Principles of State Policy of the Constitution of India lay down the principles, which constitute the foundation of the State’s Labour Policy.  Relevant extracts from the Constitution are attached as Annexure, which may be summarised as follows:

»

Freedom of association and to form unions (which implies the right to free- but peaceful collective bargaining)
 
» Prohibition of Forced Labour, and of Child Labour in factories, mines and hazardous occupations.
 
» Equal pay for equal work for both men and women
 
» Protection against exploitation of the health and strength of workers, and of childhood and youth
 
» Just and humane conditions of work, and maternity relief
 
» A living wage, and a decent standard of life, etc. to be ensured for all workers
 
» Worker’s participation to be secured in management
 
India has ratified as of May 2000, thirty nine of the International Labour Organisation conventions including four of the Core Conventions. India also subscribes to the principle enshrined in the ILO Constitution, and the (recently adopted) ILO Declaration on Fundamental Principles & Rights at Work.

National and state labour policies have to be framed in consonance with the Constitutional framework and the country’s international obligations. At the same time, it has also to be recognised that rapid economic growth is a paramount need of the country, in general, and of Madhya Pradesh, in particular.  There can be little prospect of rapid growth without a sizable and sustained spurt in investment.  Therefore, Labour policies and laws which discourage and stifle investment need to be reviewed, albeit in a manner consistent with the basic tenets of the Constitution.

Most of the subjects pertaining to Labour figure in the Concurrent List of the Constitution.  There are about thirty-five important labour laws applicable to Madhya Pradesh of which five are State laws while the rest are Central ones.  The Second National Commission on Labour set up by the Central Government to review labour laws is likely to give its recommendations in early 2002.

Madhya Pradesh is not yet among the more industrialized states.  The large majority of the State’s workers belong to the unorganised sector.  Some broad figures in this regard are as follows:-
 

Population of Main Workers
excluding Owner cultivators (1991 Census)

88 lakhs

Estimated Population of the above in 2001
(assuming decadal growth rate of 25%)

110 lakhs

- Of whom, estimated no. of workers in the:

 

-         Organised sector

8 lakhs

-      Unorganised Sector

102 lakhs

Thus an overwhelmingly large majority of workers belong to the unorganized sector, notable among whom are landless agricultural workers, beedee workers, those engaged in forestry and construction activities, and the like.  Ensuring a decent living standard for them and protecting them from exploitation has, therefore, to be accorded the highest priority.

OBJECTIVES


Keeping the above context in mind, basic objectives of the State’s Labour Policy would be:-
» To effectively carry out the Constitutional mandate against exploitation, and of ensuring just, humane and safe working condition for all workers especially for those in the unorganised sector.
 
» To ensure peaceful and harmonious industrial relations, and
 
» To encourage, facilitate and support improvement in the investment climate and in worker productivity.
 
THE APPROACH

The above objectives cannot be achieved unless the worker is viewed as a vital partner in the State’s economic development and all-round progress. He must be treated not as an encumbrance but as the object as well as agent of development.  A healthy economy requires a healthy, educated and satisfied working class.

At the same time, entrepreneurs have a right to expect a congenial and trouble-free industrial environment, and to be recognized as a key role-player in economic development as long as they comply with relevant laws.

The State must act as a facilitator, catalyst and an impartial referee, vis-à-vis workers and employers, so as to enable the two to play their rightful role in development.

The above basic approach would form the State’s labour policy.

STRATEGY

A large number of laws already exist to carry out the provisions of the Constitution concerning labour.  The main need is to:
» Simplify and rationalize them
 
» Review and modify them with a view to making them beneficial to the workers as well as hassle-free to the investor
 
» Strengthen their implementation – especially vis-à-vis workers in the unorganised sector, women workers, and children
 
» Maintain and build upon the State’s record of harmonious industrial relations, inter-alia, through sustained and vigorous tripartite consultation
 
» Actively promote improvements in worker productivity
 
» Promote a specially facilitating labour-law environment for the “thrust” sectors and areas like
» Infrastructure
» Information Technology
» Bio-technology, and
» Special Economic Zones
 
» Improve the services being rendered by the Department by way of licensing, registration, industrial health and safety, grievance settlement, medicare, and adjudication, so as to make them speedy, effective and transparent, and
 
» To achieve the above, inter-alia, through use of modern technology, and by expanding the Department’s outreach and capability

 

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