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Labour reforms need to be speeded up: Sahu

Govt says labour reforms would have to be expedited and changes accepted in the short-term.

india Updated: Apr 08, 2006 14:34 IST
Press Trust of India
Press Trust of India

The government said on Saturday that labour reforms would have to be expedited and changes accepted in the short-term in the interest of long-term economic sustainability.

Labour reforms should not be seen as just facilitating the closure of a sick industrial unit or laying off employees, Minister of state for Labour Chandrasekhar Sahu said in his address to an Institute of Company Secretaries of India seminar.

As Indian industry is going through a crucial phase of restructuring with increasing competition, there is need for proper labour reforms to suit the demands of the changing paradigm, he said.

The core issues of labour reforms can be solved by liberalising existing labour legislation, enacting a flexible exit policy, reforming trade union, continuously retraining and updating workforce skills, workers participation in management and by good and clean corporate governance, he said.

"The government, industry, trade unions, and all stakeholders should be involved in the labour reform process. A holistic and multi-disciplinary approach is required to solve the problems relating to labour," the Minister of state for Labour said.

Coen Kompier, senior specialist with International Labour Organisation, said liberal labour laws in special economic zones in India should be questioned to ensure minimum guarantee to workforce.

He said environment in India is much more conducive for labour than China because of the presence of dialogue process in the former.

First Published: Apr 08, 2006 14:34 IST