Amidst the recent flip-flops by the government related to Employees’ Provident Fund (EPF) savings, Labour and Employment MinisterBandaru Dattatreyatells Somesh Jhathat the government is working in workers’ interest to provide social security cover. Edited excerpts:
Why do you think the recent protests in Bengaluru related to government’s move to partially restrict Employees’ Provident Fund (EPF) withdrawal turned violent?
It was lack of awareness and misinformation campaign. Workers should think coolly.
But workers feel that their PF money is being regularly attacked by the government nowadays…
In this changing scenario, government is trying its best. We wanted social security (for workers) at the time of retirement and it was only about 3.67 per cent of the total PF contribution. Who lost because of it (rollback)? Ultimately, it was worker’s loss. The government wants to give social security to workers. That’s why we have taken many positive steps even with the Parliamentary hurdle. We are issuing executive orders and not waiting for the Parliament to pass Bills. We can’t wait if we have to compete with other countries.
The central trade unions say they will go on a nationwide strike for the second consecutive year in September 2016. Why do you think they are still upset?
I don’t see any reason. We have increased the bonus, minimum wages, enhanced social security coverage enormously and tripartite communication is regular. There is no gap between the Labour Ministry and trade unions. We are in a position to solve their demands then why go on a strike? But I think workers understand that we are forthcoming.
Employers also have taken the government to court in various states on retrospective amendment of the Payment of Bonus Act…
They feel the move will hurt them but it is also a positive step as productivity will increase as an increased bonus is a great incentive for workers.
Do you think all such protests by employers and trade unions are overshadowing the works you claim to have done?
Not at all, because all this is politically motivated. Why should they oppose an increased bonus?
You mean employers?
No, employers have grievances and they moved the court. But I am talking about the trade unions. They are politically motivated. They are unable to digest the speed with which the government is going ahead. Congress is more worried as all the labour reform initiatives were started during the UPA regime but they were unable to do it. There was no political will but this government has and we are going ahead with it successfully. Decisions are swiftly taken and there is no policy paralysis.
On International Worker’s Day, what message would you like to give to the workers across the country?
International Worker’s Day is celebrated all over the world for the workers’ unity. Irrespective of the ideological barrier, worker unity and worker prosperity is very important. For that, providing adequate working conditions, wages, medical facilities and social security are crucial. Also, there should not be any child or woman abuse. The protection of workers’ right is paramount and our Prime Minister Modi says labour is shrama yogi, meaning someone who has devoted entire attention to work. The workers should work in the interest of nation and the government and trade unions should work for the workers decent wages and living.
Do you see any workers’ unity in the present scenario?
There is unity among workers but culture has changed in two ways — now, they want to work more and earn decent wages. More unity is at the industry-level. When an issue comes, all of them unite to save industry. But I want that trade unions should be non-political. The issues can be solved by themselves, between workers and management.
So do you feel there is no need for trade unions in the present scenario?
The trade unions should be strengthened. Workers need bargaining capacity and for that trade union is needed. But see in the unorganised sector, even outsiders can become a part of the union. Today, industrial harmony and peace is necessary for increased level of production and for that, the employee-employer relation should be strengthened. Modern technology is going to bring sea change in the industrial scenario.
But trade unions are divided. BMS is not on the same page as the other unions on many issues…
It is only about perspective. They want to solve problem in their own ways. I want that positive achievement should be there. I want trade unions to be always positive. Firstly, workers should be educated for their rights. Workers’ awareness and education are crucial for maintaining unity.
What steps is the government taking towards increasing workers' wages?
For the first time this government has taken a decision to increase minimum wages for contract workers to Rs. 10,000 per month. With this, there will be increase in wages by up to 200 per cent in some states. This is the biggest step taken by the Modi government.
But the trade unions are demanding Rs. 15,000 minimum wage for all workers…
The Minimum Wage Act will be amended. Labour is under concurrent list and each state has its own wage. Centre only issues advisory. We definitely want to increase the wages of workers keeping in view the consumer price index, variation of dearness allowance and guidelines by Supreme Court. We are coming out with a formula to increase the minimum wages for all workers with all these parameters in mind.
By how much do you expect the minimum wages to go up?
It will be difficult to disclose it as the tripartite meetings are going on but it will be substantially increased.
What will be the focus area of the government in terms of labour reforms?
Since independence, the major initiatives were taken only in the organised sector. The unorganised sector was neglected and my main focus will be the labourers in the unorganised sector. We want to give them better wages and bring them under the social security net, particularly the construction workers. We have already allowed ESIC benefits for them.
What about pension benefits to workers?
Earlier, the minimum monthly pension was only Rs. 350. After Modi government came to power, it has been increased to Rs. 1,000 in perpetuity. We give Rs. 850 crore every year towards pension. Now, workers are demanding minimum pension of Rs. 5,000 per month and some MPs have demanded it to be fixed at Rs. 3,000.
So, are you thinking of increasing the minimum monthly pension on those lines?
Yes, we are thinking of increasing the pension amount. It will be a tough task but we will see that workers get better pension payouts than what is being offered at present.
How will you address the issue related to politicisation of trade unions?
Look, workers are more worried about his employment. This government is keen on employment generation and that’s why we launched campaigns such as Make in India, Digital India and Skill India. We are doing our best to create jobs.
You released a booklet recently on Dr. B.R. Ambedkar ‘Labour Welfare and Employment: Initiatives to make his vision a reality’…
This government is following the footsteps of Dr. B.R. Ambedkar’s legacy in letter and spirit. He had started EPFO, ESIC and advocated for bargaining capacity of trade unions. We are all strengthening his thoughts and ideas. That’s why I say we are taking the legacy of Ambedkar forward.
But some Ambedkarite students, especially in Hyderabad, recently accused government of neglecting their interest.
I don’t want to comment on that. But we definitely align with the thoughts of Ambedarites. Dr. Ambedkar said ‘educate and struggle’. We feel the downtrodden should be given more opportunity for education and employment. The government’s ‘Stand Up India’ programme gives entrepreneurship opportunities to SC and ST. The real Ambedkarites should understand why Congress didn’t start this programme for so many years. Lakhs of Dalit students will become entrepreneurs. Congress always wants Dalits to remain downtrodden but we want them to be educated and equal. There are many Ambedkarites with us.
