Use labour welfare funds to help pay salaries: Industry owners write to Haryana govt

In its letter to the state and the Union governments on Friday, the Industrial Development Association of Gurugram(IDAG) reiterated that the government should use

In its letter to the state and the Union governments on Friday, the Industrial Development Association of Gurugram(IDAG) reiterated that the government should use labour-related welfare funds to help them pay salaries for the month of April to their employees. The industry body also demanded a financial relief package to help them tide over the crisis brought by the outbreak of coronavirus disease (Covid-19).

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Industries are shut, production has been halted, and the industry owners have already paid the salaries for March, including their provident funds, said the association pursuant to the order of the government.

Labour-related welfare funds, include employees’ state insurance (ESI), labour welfare fund, building and other construction workers’ welfare cess, etc. Industry owners want government to use these welfare funds for paying the salaries of the employees.

Dushyant Chautala, deputy chief minister of Haryana, said the guidelines of labour welfare fund do not allow government to use it for the purpose of salary.

“Labour welfare fund cannot be utilised for salary purposes as the Act does not permit it. As far as ESI is concerned it pertains to the Central government. However, Haryana government is issuing a SOP (standard operating procedure) to all deputy commissioners on Saturday regarding the opening of industries in a phase-wise manner, with strict guidelines for social distancing and operating with a labour force of less than 15% of the strength,” Chautala told HT on the phone.

The association wrote to governments, both Union and state, through deputy commissioner’s office, Gurugram, on Friday. This their second letter after a gap of a week. Earlier on April 12, the industry had sought from the governments a reply to their relief package demand.

“The government must provide the company with generous funding to cover the wages for April and then for the next three months. It is better to pay up and keep people on payrolls of the employers rather than risking economic disruption from the mass layoffs, which appears to be only option for employers in the absence of immediate support of the government,” stated the letter.

As per the ESI record, there are 11 lakh employees engaged in the industries in Gurugram.

“The government can pay the salaries during lockdown period from the huge funds accumulated and is available under various statutes such as ESI, Labour Welfare Fund and others which were enacted keeping in mind sole objective of welfare and social security of labour. Hence in present situation of crises, payments from these funds should be disbursed to those who are actual beneficiaries (sic),” said the letter.

ESI is a medical fund the government uses for health emergency purposes, while labour welfare fund is aimed to provide employee-cum-beneficiaries financial help during marriage, repayment of loans, emergency help in accidental cases, etc.

“There are ₹350 crore funds available in the labour welfare fund currently. However, if the government wants to use it for the salary purposes, it will have to revise the policy,” said Amarendra Singh, chairman labour welfare board.

However, a senior Haryana government official told HT that the poor people, currently reeling under the Covid-19 lockdown are being fed from this fund only.

JN Mangla, industrialist, said, “This is high time, the government gives some relief to the industry to save it from ruination. If this is not done, mass layoffs can take place. The ESI and the labour welfare funds are hardly used by the government. We believe that this is an emergency-like situation, when the funds should be used.”