August 27, 2001
Issue


 

COVER
   

Villains Of The Economy
As the economic downturn worsens, the Vajpayee Government comes under fire for holding up key reforms. INDIA TODAY analyses the performance of 10 ministers to find the extent and causes of inefficiency.

 

 
THE NATION
   

The Shadow Of Fear
In a bid to regain the initiative after the Agra Summit, militants have moved to the Jammu region-stretching the security forces and sparking tension.

 

 
STATES
 

Crime And Reward
The Chautala Government indulges in a controversial spate of forgiveness, pardoning murder convicts, most of whom are close to ruling party politicians.

 

 
SCIENCE
 

New Pot Of Gold
While the US debates the ethics of a cutting-edge medical technique that uses cells from embryos, India can march ahead-if it gets its act together.

 

 
OTHER STORIES
     
 



 
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COVER STORY: GOVERNMENT

Satyanarayan Jatiya
Labour

Out of the Loop

Ministers:

2

Joint secretaries and above:

10

No. of PSUs referred:

NA

Budget in Rs cr (2001-2):

1025.9

The question is not whether the Labour Ministry is the worst performing of all economic ministries but who is responsible for its dismal record: its minister Satyanarayan Jatiya, a former labour union leader and a fifth-term MP from Ujjain, or the politically explosive costs of taming organised labour? Well-wishers of Jatiya-and they include many affiliates of the RSS-say changes in labour laws are just not possible in a country that lacks a welfare net and that no minister, however committed, can move ahead.

The project is daunting but it does not help for the minister to pretend that change is unnecessary. The Disinvestment Ministry is a failure, but its minister is not. He is trying every way to create political support for privatisation.

 
Promptness of response 1.0
Understanding of issues 3.0
Commitment to reforms 1.0
Openness to ideas 1.0
Achievements 1.0
Average score 1.4
OVERALL RANK
10
All ratings are on a scale of 10
The perception is that Jatiya is opposed to any amendments to labour laws that allow lay-offs because of his long association with trade unions.
 

But Jatiya is doing nothing. Instead, the popular perception is that he is opposed to any changes in labour laws that allow easy and honourable lay-offs because of his long association with the trade unions whose cause he can't be seen to betray. Nor has he done anything to remove the perception. Attempts over three weeks to reach the minister drew a blank.

Given Jatiya's resistance to reforms there are only two ways to move ahead: force the issue or bypass the ministry. Both are being attempted. For industry, the most heartening news was Finance Minister Yashwant Sinha's proposal in the current budget to amend the Industrial Disputes Act (IDA) and Contract Labour Act (CLA). While IDA amendments will ease lay-offs in units with up to 1,000 workers, CLA changes are aimed at allowing companies to hire contract workers for non-core activities (for instance, a steel maker can contract labour for gardening).

 

COST OF NON-PERFORMANCE

Only 8% of the total workforce is covered by labour laws

Many laws are obsolete and anti-labour

No security net for those who have lost their jobs

COMMITMENTS

Avoided personal commitment by not granting appointment.

Budget has committed to amending IDA and CLA in 2001-2.

Besides, a report by the Planning Commission and the Export Import Policy for 2001 has also underlined the need for amendment. "The Government is trying to convey the message that labour reforms will happen, with or without the support of the minister," comments an expert involved in redrafting the laws. That the ministry has been bypassed is evident. While the Labour Commission appointed by Jatiya is examining possible changes in IDA, CLA and the Trade Unions Act (TUA), already a draft of amended IDA is ready and TUA has been amended once.

If changing laws is too radical a step, Jatiya could take simple steps like changing archaic rules in the Factories Act. The present law makes it mandatory to provide drinking water in earthen pots, while making the installation of a water cooler illegal. But Jatiya's vision falls short of even these baby steps. The question is: why is he being retained in this job?


 
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