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At the outset, let me convey
my gratitude to PIB for offering me an opportunity to participate in this Economic
Editors’ Conference and share my thoughts with the enlightened members of the
Media present here. India stands at a
crucial juncture as she is poised to touch double digit growth rate.
The 11th Five Year Plan seeks to achieve not only a faster but
also inclusive growth. This is possible
only with effective contribution of all stakeholders.
This also forms the basic credo of the Ministry of Labour & Employment.
Labour is both a contributor to and beneficiary of economic development. How to ensure its benign involvement in the
development process is our biggest challenge. Our background material, has already
been circulated. Let me, however, elaborate
on some of the important issues. Vocational Training with a view to
creating a world-class skilled labour force is being given maximum importance.
Hon’ble Prime Minister in his last independence day address to the Nation had
stated, “We will soon launch a Mission on Vocational Education
and Skill Development, through which we will open 1600 new industrial training
institutes (ITIs) and polytechnics, 10,000
new vocational schools and 50,000 new Skill Development Centres.
We will ensure that annually, over 100 lakh students get vocational training
– which is a four-fold increase from today’s level.
We will seek the active help of the private sector in this initiative so
that they not only assist in the training but also lend a hand in providing employment
opportunities”. Actually Ministry of Labour & Employment
submitted a proposal for opening 1500 new ITIs in blocks that do not have ITIs
so far. Ministry of Human Resource Development
has been mandated in Hon’ble Prime Minister’s Speech to open polytechnics and
vocational education schools. The requirement of skill development centres will require a multi-pronged
strategy : (i) through skill development initiatives under which qualification
of existing workforce will be certified and acquisition of additional skills in
short modules will be made possible and (ii) by separating skill provider from skill
certifying agency for skill development initiatives we hope to have a quantitative
and qualitative increase in the standards of skill certified. The Scheme will
benefit early school leavers and existing workers, especially in the unorganized
sector. The Government also would be coordinating
the activities of skill providers in other Ministries and Departments.
It is envisaged that skill development mission will provide the requisite
coordination between various line Ministries. The involvement of private sector
is actually sought for both up-gradation of ITIs
and for skill development initiatives. We have the advantage of a predominantly
young population vis-à-vis the rest of the world. There will be increasing opportunities
of work being outsourced to India as well as for our workforce to work abroad,
if we are able to retain the competitive edge. To help the youth build their career,
the Directorate General of Employment and Training (DGE&T) of the Ministry
of Labour and Employment has evolved various training programmes. Training courses
are offered through a network of Industrial
Training Institutes (ITIs) and Industrial Training Centres (ITCs) located all
over the country. The courses have been
designed to impart the basic skills and knowledge in trades so as to prepare the
trainees for employment as semi-skilled
and skilled workers in the world of work or to go for self-employment. The duration of the training varies from trade
to trade from six months to three years. Students with academic qualification
ranging from 8th pass to 12th pass seek admission in these
courses.
Our Government has embarked on the strategic objective of modernizing the
ITIs and improving the quality of training in state Government run ITIs, with
involvement of stake holders. Action has been initiated for upgradation of 100
ITIs from domestic resources and 400 ITIs through World Bank assistance so as
to create “Centres of Excellence (COE)” for producing multi-skilled workforce
of world standard. The highlights of the
scheme are introduction of multi-skilling courses during the first year, followed
by advanced and specialized modular courses in the second year by adopting industry
wise cluster approach, multi entry and multi exit provisions and Public Private-Partnership
(PPP) in the form of Institute Management Committee (IMC) to ensure greater and
active involvement of industry in all aspects of training. In his budget speech 2007-08, Hon’ble
Finance Minister has announced that 1396 ITIs would be upgraded into Centres of
Excellence in specific trade and skills under public-private partnership.
Under the proposed scheme, the State Government as the owner of the ITI,
will continue to regulate admissions and fees, the new management will be given
academic and financial autonomy, and the Central Government will provide financial
assistance by way of seed money. It is
proposed to upgrade atleast 300 ITIs every year, beginning 2007-08, under the
PPP mode. A separate scheme for providing ITIs
in North-Eastern Region and Jammu & Kashmir is also being implemented. Ministry of Labour & Employment
has developed demand driven short-term training courses based on Modular Employable
Skills (MES) framework for skill development for the school drop-outs and existing
workers especially in the informal sector in close consultation with industry,
micro enterprises in the informal sector, State Governments, experts and
academia. This is essential considering their educational,
social and economical background and is of strategic importance.
DGE&T in association with Confederation of Indian Industry (CII) organized
‘CII Skills Summit’ as well as World Skills (India) Competition at Bangalore during
January, 2007. This competition was held
to encourage the workers in India to benchmark their skills to International Standards.
As per the suggestions of Sachar Committee Report, DGE&T has initiated
action to provide the skills for youth with lesser educational qualification through
the Skill Development Initiative Scheme in areas/clusters which have significant
population of muslim. The objective of
the Scheme is to provide vocational training to school leavers, existing workers,
etc. to improve their employability by optimally utilizing the infrastructure
available in Government and private institutions and industry.
Under this Scheme, courses would be available for persons having completed
5th standard. Madarsa educated students having passed 5th
standards can be benefitted with the above Scheme. These qualifications have been prescribed keeping in mind the level
of knowledge required to understand the contents of the course curriculum and
other related life skills. So far 211
Modular Employable Skills have been developed. Of these 211, a total of 89 and 84 courses have been developed for
the persons having passed 5th and 8th standards respectively.
In order to take care of the social security and welfare of unorganized
sector workers, two-pronged strategy, i.e. legislative measures and implementation
of welfare schemes, is being followed. The
legislative measures include the Minimum Wages Act, 1948, the Contract Labour
(Regulation & Abolition) Act, 1970, the Building and Other Construction Workers
(Regulation of Employment & Conditions of Service) Act, 1996 etc.
The Government has set up Welfare Funds for providing welfare measures
to the beedi, non-coal mine and cine workers.
The funds are used to provide financial assistance to these workers for
education of their children, recreation, medical and health facilities, construction
of houses etc. So far as the Integrated Housing Scheme for beedi workers is concerned,
earlier worker’s contribution of Rs.5,000/- had to be deposited along with the
application. The revised scheme has been
made more beneficiary – friendly by dispensing with this provision.
In the revised dispensation, he/she will be required to make the contribution
only after the sanction of the tenement is given by the appropriate authority. Several other welfare schemes viz. health
and medical care, scholarships for school and college going children, Rs.250/-
per year for 1st Standard to Rs.8,000/- for BE/MBBS etc., are being implemented for workers and their
families.
To provide social security to workers in the unorganized sector, the Unorganized
Sector Workers Social Security Bill, 2007 has been introduced in Parliament on
10.09.2007. The Bill seeks to provide
for health insurance, life and accident insurance, maternity benefits and old
age pension and any other benefits that may be decided by the Central Government.
Through the proposed Bill, a National Board shall be set
up with the task of formulating suitable schemes for workers in the unorganized
sector and also the monitoring of these schemes at various levels.
The ‘Rashtriya Swasthya Bima Yojana’ (RSBY) was launched on 01.10.2007
by the Hon’ble Finance Minister and myself by releasing the guidelines. Under the scheme, all the Below Poverty Line
(BPL) families will be covered in the next five years. The Central Government will contribute 75%
of the premium amount. The scheme envisages
provision of issuance of a smart card to the beneficiary. This card will facilitate cashless transaction
up to Rs.30,000/- so that the worker does not have to pay anything for seeking
medical treatment. Another significant change that is envisaged now is that unlike
earlier insurance schemes, existing medical conditions are not a barrier in any
manner. Moreover the list of ailments
and medical procedures will be made extensive so as to include a very large variety
of interventions that would be required. The BPL worker and his family will be
covered under this scheme. The scheme will be implemented in phased manner and cover 1.2 crore
BPL workers in the first year and all the 6 crore BPL workers by 2012-13. Elimination of child labour is an area
of great concern and commitment for the Government of India. The problem of child
labour is a socio-economic evil which is a direct consequence of poverty and illiteracy.
Considering the magnitude and the nature of the problem, Government has adopted
a gradual and sequential approach to withdraw and rehabilitate working children,
beginning with those working in hazardous occupations/processes and focusing on
areas of high concentration of child
labour. Accordingly, the National Child Labour Project (NCLP) Scheme has been
substantially enhanced to cover 250districts during the 10th Plan.
The major activity undertaken under the NCLP Scheme is the establishment
of special schools/centres to provide non-formal/formal education, vocational
training, supplementary nutrition, monthly stipend and regular health check ups,
etc. to children withdrawn from employment so as to prepare them to join mainstream
schools. About 4.50 lakh children have been mainstreamed. A similar scheme for
rehabilitation of working children has been started in additional 21 districts
of the country under the INDO-US (INDUS) Project, which has inter-alia, strong
additional component of vocational training for adolescents. Employment of children working as domestic
servants and in tea-shops and dhabas, etc. has been prohibited under the Child
Labour (Prohibition & Regulation) Act, 1986 with effect from 10th
October, 2006. A campaign has been launched
for creating public awareness through media and sensitizing the concerned officials
and stakeholders through meetings, workshops and discussions etc. Cooperation
of other Ministries has also been sought for rehabilitation of children withdrawn
from work and their families. Before moving on, I would like to emphasize the
importance of Media, not only in exposing cases of exploitation of children, but
also in sensitizing the public. Apart from regulatory measures, we
need to have a multi pronged strategy – to make going to school an attractive
economic proposition, improving the quality of education imparted in schools and
instilling sensitivity in house holds and establishments that are prone to employing
child labour.
Among various other initiatives taken by this Ministry, mention may be
made of passing of the Bill to amend the Apprentices Act, 1961 providing for reservation
for Other Backward Classes, promulgation of an Ordinance increasing the eligibility
limit from Rs.3,500/- to Rs.10,000/- and calculation ceiling from Rs.2,500/- to
Rs.3,500/- per month for payment of bonus; and to make employees employed through contractors
on building operations eligible for payment of bonus under the Payment of Bonus
Act, 1965 w.e.f. 1.4.2006. Other important steps include the
proposed amendments to other important Acts as in case of the Factories
Act, 1948 allowing women to work during night time with adequate safeguards, in
the Maternity Benefit Act, 1961 by enhancing the medical bonus from Rs.250/- to
Rs.1,000/- with power to increase it from time to time subject to a maximum of
Rs.20,000/- and in the Labour Laws (Exemption from Furnishing Returns and Maintaining
Rights by Certain Establishments) Act, 1988 by enlarging its scope to cover 16
Acts and establishments employing more number of persons with provision for maintaining
registers on computer and sending returns through soft devices etc. Other initiatives are enhancement of wage ceiling for coverage under
the Employees’ State Insurance Act, 1948 from Rs.7,500/- to Rs.10,000/-
per month and introduction of an unemployment insurance scheme namely ‘Rajiv Gandhi Shramik Kalyan
Yojana’ by Employees State Insurance Corporation w.e.f. 01.04.2005 for the workers
who lose their job involuntarily due to retrenchment, closure of factories/establishments
and permanent disability not arising out of employment injury.
The beneficiaries under the scheme are entitled to get a monthly cash allowance
of about 50percent of the wage as well as medical care for themselves
and their dependent family members, for a maximum of six months which may be available
in a single spell or in spells of not less than one month each.
Other initiatives include revision of the recommended National Floor
Level Minimum Wage by increasing it from Rs.66/- to Rs.80/- per day w.e.f.
1.9.2007, increase in the wage ceiling for the applicability of the Payment of
Wages Act, 1936 from Rs.1600/- to Rs.6500/- per month w.e.f. 9.11.2005 through
amendment and further to Rs.10,000/- per month w.e.f. 8.8.2007 though notification,
shifting of the base of All India
Consumer Price
Index Numbers for Industrial
Workers (CPI-IW)
from 1982 to 2001=100 w.e.f. January,
2006, constitution of two Wage Boards - one for the Working Journalists
and another for Non-Journalists Newspaper
Employees , maintenance of harmonious relations situation by effective
intervention of Central and State Industrial
Relations machineries, provision of alternative grievance redressal machinery
in form of Lok Adalats, awareness generation by the Central Board for Workers
Education among all categories of workers,
research and training facilities provided by V.V.Giri National Labour Institute, holding of several tripartite
meetings including Indian Labour Conference and safety, Vishwakarma and shram
awards given in recognition of the contribution of employers and employees etc.
In addition to the Rashtriya Swasthya Bima Yojana and the Aam Aadmi Bima
Yojana (AABY) to provide medical and death and disability insurance cover to rural
landless households, the National Old Age Pension Scheme (NOAPS) is being expanded
in its scope by the Ministry of Rural Development. These taken together are expected
to provide a comprehensive safety net for the working poor.
Let me conclude by stating that the Media is an important constituent of
India’s democratic edifice. I urge it
to play a pro-active role by disseminating information regarding workers’ rights
and duties and generating awareness among employers, civil society and public,
which will help a social sector like labour immensely.
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Speech of the Labour & Employment Minister at the Economic Editors’ Conferece-2007.
