Contract Labour status change – Proposal in Indian Labour Conference
26. Nov, 2010 
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The tripartite conference of Employers, Employees and the Government are to meet and one of the topics that would hold priority during the Indian Labour Conference (ILC) in the Amendment to the Contract Labour Act and also to their status w.r.t the permanent workmen. The proposed changes are hereunder -
- The threshold of 20 workers for applicability of Contract Labour Act to be dispensed with.
- Give equal wage rates as given to permanent workmen
- To given similar benefits of leave, holidays, hours of work and all other benefits as in the case of permanent workers except for the tenure of their engagement.
The Employers, as expected, have opposed the proposal stating that the skill levels and educational levels were much lower compared to their permanent workmen but the leftist Unions argue that why engage such low educated and low skilled workers and lower the quality of Industrial production.
Quite an argument. But is the Union only seeking mileage of its presence in the ILC or does it really understand the financial repercussions of seeking such amendments in the Law. In a country with high unemployment this would not be a proposal that would excite industries to develop and branch out. The workers who would have been paid atleast minimum wages may end up being unemployed with smaller industries closing down as one of the major operational cost of a business is manpower cost.
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