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Unfair to terminate employees
By Raghavendra Rao of Poornaprajna Cyber Quest
Global recession is having its telling effect on the Indian industries as well. The industries which are in red, small scale industries and those which are surviving by marginal profits are hit hard. Apart from the economy of the nation, it is the workforce that is rocked. Poor employees have to bear the brunt. Many employees have already come to streets because of the global economic recession. Prices have started falling. Stocks and shares are tumbling. Gold price is sky rocketing. Immediate attention of the men at the helm of affairs is called for to mitigate the worst ever situation in the families of workers. When a similar recession was experienced in 70s, the workforce had come forward to voluntarily cut their wages to meet the crisis faced by the employers. This co-operative step was necessary to safeguard not only the survival of the industry but the very survival of the workmen themselves. Placed in a situation similar to the earlier one, the leaders of government, industry and trade union have poured their heart out at the 42nd Indian Labour Conference (ILC) held at New Delhi that concluded on February 21, 2009. The ILC consisting of representatives from the government, employers and trade unions considered both short and long term strategy to stave off the adverse effects of recession. The ILC has recommended (a) stricter implementation of labour laws relating to lay off and retrenchment (c) strengthening of social security schemes including unemployment insurance (b) quarterly assessment surveys on the effects of economic slowdown on employment (d) provision of soft loans to the small and export oriented units and (e) expanding the outreach of the public distribution system and provision of training for alternative employment to those affected by recession. The recommendations of ILC are sincere but in the name of facing recession, the captains of industry should not mercilessly terminate the services of the employees. Rather employees should be offered lower salaries in lieu of retrenchment. Alternative employment should be generated. If contract labour is employed, the permanent employees would surely face retrenchment. Therefore, the managers of the industry should not be allowed to retrench employees and also not allowed to hire contract labour.
The ILC also recommended that a tripartite task force be constituted to review the Contract Labour (Regulation and Abolition) Act, 1970 as well as the Inter State Migrant Workmen (Regulation of Employment and Conditions of Service) Act, 1979. It also suggested that framing of an Urban Employment Guarantee Scheme should be given a serious thought. The key long-term recommendations included fixing and proper enforcing of national minimum wages, protecting the interest of Indian working abroad in the context of growing protectionist policies and stimulating domestic demand through appropriate monetary and fiscal policies. The recommendations of ILC are praise worthy. No doubt the industry is suffering financial losses, work force has become excess, burden of economy unbearable. Recession is a temporary phase that could last for a couple of years and would not call for a permanent effect like termination of employment.
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