A Labour Ministry panel has proposed a tripartite committee to examine all aspects of labour laws affecting the working of micro, small and medium enterprises (MSMEs).
The proposed committee would have representatives of the Central and State Governments, employers’ organisations and trade unions.
The recommendations of the panel, headed by H. Singh, Labour Minister of Manipur, have been submitted to the Indian Labour Conference held here recently.
The recommendations are significant in the backdrop of reports that the MSME Ministry is pushing for labour law exemption for enterprises employing less than 50 workers, as the employers complain of difficulties in complying with ‘multiple laws’.
The MSME sector, considered the ‘engine of growth’ in India, employs close to 70 million people in 26 million enterprises. The sector contributes 8 per cent to the country’s GDP.
According to a Planning Commission report, about 50 per cent of MSME owners belong to the disadvantaged groups.
Comprehensive labour law
Employers have for long been demanding a separate comprehensive labour law for MSMEs with a threshold limit of workers employed, maintaining a single register and filing simplified returns.
However, trade unions at the conference, while admitting that MSMEs need to be promoted, opposed any exemption from labour laws for such units. They said all MSMEs should be made to comply with basic workers' rights such as minimum wages, social security etc.
Several studies have pointed out at the dismal working conditions in many MSMEs, especially in garments, textiles, electronics assembly and plastic industry, where a large number of women are employed.
The Labour Ministry, while striking a balance, said the proposed committee should work out ways to ensure that employers do not feel harassed and workers, too, were not exploited.