The State government is considering relaxing some key labour laws meant to protect the interests of workers in Karnataka, including those which govern termination, retrenchment and closure, even as it is consulting stakeholders.
Multiple sources confirmed that the government, like its counterparts elsewhere in the country, could take the Ordinance route to bring about changes, a move which is being opposed by unions.
Changes are being sought in the implementation of Factories Act, Industrial Disputes Act, Contract Labour (Regulation and Abolition) Act, and Minimum Wages Act.
In line with others
Sources aware of the developments said that many of the changes to these laws were in line with those brought in Uttar Pradesh, Madhya Pradesh, and Gujarat.
It is learnt that though the Labour Department is holding its ground and opposing the amendments, the Industries and Commerce Department is pushing for some of these amendments.
A source in the Labour Department said, “We are discussing with both industry bodies and trade unions on the proposed changes.”
Extending hours
On Saturday, the department sought inputs from industry leaders while a scheduled meeting with labour unions was deferred. CII said in a release, post the meeting,
“The government is looking at extending working hours to a daily 12-hour shift and a 72-hour shift per week.”
The FKCCI, in its letter to Chief Minister B.S. Yediyurappa and Industries Minister Jagadish Shettar, on Friday sought deferment of labour laws for three years to attract new investments to the State.
When other states have already deferred labour laws, Karnataka may lose opportunity if it does not follow suit, it said. The industry body has listed 15 things to do to attract investments, and deferring labour laws for three years is one of them.
It has been proposed to amend the Factories Act to increase the working hours from the current 8-hour shift to 10 or 12 hours. The wages will be in proportion to the existing wages and the additional time will not be considered as overtime.
The Industries and Commerce Department has also pushed to defer the implementation of the new minimum wages notified under the Minimum Wages Act, which received the Karnataka High Court’s nod recently, by a year. The new minimum wages were to come into effect from April, 2020.
The Industrial Dispute Act that governs the termination, retrenchment and closure of industries is also being looked at. Sources said that the discussion was on to increase the threshold limit of the employees that will enable employers to shut down the industry.
“Currently, factories that employ more than 100 employees need government permission to close. Now discussions are on to increase the employee limit,” he said. The Contract Labour (Regulation and Abolition) Act, that mandates employers to register the contract labour, is also being looked into.
Further, the Industries and Commerce Department has proposed an exemption for industries from paying rise in variable dearness allowance for 2020-2021, defer payment of ESI and PF contribution for three months, among others.
Opposing the proposed amendments to crucial labour legislations, a trade union leader asked: “Karnataka is a leading industrial State with these labour laws. Then why is the government pushing for these changes?”
“How far the Labour Department will be successful in stalling these amendments is to be seen,” a government source added.
