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2nd National Labour Commission Report

THE REPORT OF THE SECOND INDIAN NATIONAL LABOUR COMMISSION - 2002: An overview
by Shivaji Rao, Executive (Law), NDDB (India) you can contact Shivaji at shivajir@nddb.coop

The first National Labour C om m ission 1929, had prom ise d lot in the dire ction of social se curity, social we lfare , wage s, social insurance , industrial re lations, industrial adjudication, colle ctive bargaining e tc,. In se que l to the re com m e ndations m ade in the re port of the first national com m ission on labour se rie s of labour e nactm e nts we re passe d. Afte r the gap of alm ost 72 ye ars the Second National Labour Commission has be e n constitute d and subm itte d its re port in the ye ar 2002 to the Gove rnm e nt of India. At the outse t the te rm s of re fe re nce to the com m ission are as unde r: 1. To sugge st rationalisation of e x isting laws re lating to labour in the organise d se ctor, and 2. To sugge st an um bre lla le gislation for e nsuring a m inim um le ve l of prote ction to the work e rs in the unorganise d se ctor. Methodology: Be fore pe nning down the re port, the C om m ission followe d the following m e thodology: a) arrange d consultation / confe re nce s in the m ajor citie s of India to ge t the opinion of the Industry, public, e ducationalists and so on institutions'; b) circulate d a que stionnaire across the industry and the socie ty in te rm s of the re fe re nce c) surve ys conducte d both in organise d and unorganise d se ctor Recommendations: The re com m e ndations of the C om m ission consists of the chapte rs, nam e ly 1). The te rm s of the re fe re nce of the C om m ission 2).Introductory re vie w, 3).Industrial De ve lopm e nt and Progre ss afte r inde pe nde nce , 4).Im pact of globalisation - in com parison with ne ighbouring countrie s, 5).Approach to re vie w laws, 6).R e vie w of laws, 7).Unorganise d se ctor, 8).Social se curity, 9).W om e n and C hild labour, 10).Sk ill de ve lopm e nt, 11).Labour adm inistration, 12).O the r m atte rs. O nly re le vant part of im portant chapte rs with spe cial re fe re nce to the organise d se ctor and m ajor re com m e ndations of C om m ission the re of are de alt ve rbatim he re in be low:

I - General Recommendations 1. W e re com m e nd that the C e ntral Gove rnm e nt and the State Gove rnm e nt should have a uniform policy on holidays, only 3 national holidays be gaze tte d - nam e ly Inde pe nde nce Day, R e public Day and Gandhi Jayanti Day, two m ore days m ay be adde d to be de te rm ine d by e ach State according to its own tradition and apart from the se e ach pe rson m ust be allowe d to avail of 10 re stricte d holidays in the ye ar, Gove rnm e nt holidays should be de link e d from holidays unde r the Ne gotiable Instrum e nts Act.(5.29) 2. Fle x ibility in the hours of work pe r we e k and com pe nsation for ove rtim e . (5.32) 3. Atte m pt to change the basis of te nure in all jobs (pe rm ane nt as we ll as non-pe rm ane nt) to contractual and for stipulate d pe riods, involve s a basic change in attitude and notion. If transform ing the basis of all e m ploym e nt is a social ne ce ssity be cause it has be com e e conom ic ne ce ssity for industrial and com m e rcial e nte rprise s, the n, it is e qually ne ce ssary to cre ate social acce ptability for the change and the social institutions that can tak e care of the conse que nce s. (5.34 & 35).The fundam e ntal change of this type has to be pre ce de d by : i) e volution of socially acce pte d conse nsus on the ne w pe rce ptional jobs ii) the e volution of a syste m of constant up-gradation of e m ployability through training in a wide spe ctrum of m ultiple sk ills iii) the se tting up of a syste m of social se curity that include s une m ploym e nt insurance and provisions for m e dical facilitie s; and iv) the institution of a m andatory syste m of two contracts - one , an individual contract and two, a colle ctive contract with work e rs union. 4. The com m ission re com m e nds that gove rnm e nt m ay laid down list of highly paid jobs who are pre se ntly de e m e d as work m an cate gory as be ing outside the purvie w of the laws re lating to work m an and include d in the propose d law for www.erlaws.com/library/nlcrshivaji.htm 1/7

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prote ction of non-work m e n. Anothe r alte rnative is that the Govt. fix a cut off lim it of re m une ration which is substantially high e nough, in the pre se nt conte x t such as R s.25,000/- p.m . be yond which e m ploye e will not be tre ate d as ordinary "work m an". (6.19) wage ce iling of R s.25000/-

5. Furthe r the C om m ission re com m e nde d that it would be logically to k e e p all the supe rvisory pe rsonne l, irre spe ctive of the ir wage s / salary, outside the rank of worker and k e e p the m out of the purvie w of labour law m e ant for work e rs. All such supe rvisory cate gory of e m ploye e s should be clubbe d along with the cate gory of pe rsons who discharge m anage rial and adm inistrative functions. The C om m ission would also re com m e nd that such a m odifie d de finition of work e r could be adopte d in all the labour laws. W e e x pe ct m anage m e nt to tak e care of the inte re st of supe rvisory staff as the y will now be part of m anage rial frate rnity. (6.20) Modifie d de finition of work e r 6. Ex isting se t of labour laws should be broadly grouped into four or five groups of laws pe rtaining to: (i) Industrial re lations (ii) W age s (iii) Social se curity (iv) Safe ty (v) W e lfare and work ing conditions and so on 7. The C om m ission is of the vie w that the cove rage as we ll as the de finition of the te rm 'work e r' should be the sam e in all Group of laws subje ct to the stipulation that social se curity be ne fits m ust be available to all e m ploye e s including adm inistrative , m anage rial, supe rvisory and othe r e x clude d from the cate gory of work m e n and othe rs not tre ate d as work m e n or e x clude d from the cate gory of work m e n. (6.21) I-A : A pproaches in drafting the Law on Labour Management Relations: Firstly, the C om m ission would pre fe r the ge nde r ne utral e x pre ssion 'work e r' inste ad of the curre ntly use d word 'work m an'. Se condly, the law will apply uniform ly to all such e stablishm e nts. Thirdly, we re cognise that today the e x te nt of unionisation is low and e ve n this low le ve l is be ing e rode d, and that it is tim e that the stand was re ve rse d and colle ctive ne gotiations e ncourage d. W he re agre e m e nts and unde rstanding be twe e n two partie s is not possible , the re , re course to the assistance of a third party should as far as possible be through arbitration or whe re adjudication is the pre fe rre d m ode , through Labour C ourts and Labour R e lations C om m issions of the type be propose d late r in this re gard and not gove rnm e ntal inte rve ntion. A se ttle m e nt e nte re d into with re cognise d ne gotiating age nt m ust be binding on all work e rs. Fourthly, we conside r that provisions m ust be m ade in the law for de te rm ining ne gotiating age nts, particularly on be half of work e rs. Fifthly, the law m ust provide for authoritie s to ide ntify the ne gotiating age nt, to adjudicate dispute s and so on, and the se m ust be provide d in the shape of labour courts and labour re lations C om m issions at the State , C e ntral and National le ve ls. Six thly, The C om m ission is of the vie w that change s in labour laws be accom panie d by a we ll de fine d social se cuirty pack age that will be ne fit all work e rs, be the y in 'organise d' or 'unorganise d' se ctor and should also cove r those in the adm inistrative , m anage rial and othe r cate gorie s which have be e n e x clude d from the purvie w of the te rm work e r.

II - Industrial Relations and Trade Unions 1. It is ne ce ssary to provide m inim um le ve l of prote ction to m anage rial and othe r (e x clude d) e m ploye e s too against unfair dism issal or re m oval. This has to be through adjudication by Labour court or Labour R e lations C om m ission or arbitration. (6.22) 2. C e ntral laws re lating to the subje ct of labour re lations are curre ntly the ID Act, 1947, The TU Act, 1926, Industrial Em ploym e nt (SO ) Act, 1946, Sale s Prom otion Em ploye e s (C onditions of Se rvice ) Act, 1976. The re are State le ve l le gislation too on the subje ct. W e re com m e nd that the provisions of all the se laws be judiciously consolidate d into a single law calle d " The Labour Manage m e nt R e lations Law" or "Law on Labour Manage m e nt R e lations". (6.26) 3. W e would re com m e nd the e nactm e nt of spe cial law for sm all scale units. W e have com e to the conclusion that the re asonable thre shold lim it will be 19 work e rs. Any e stablishm e nt with work e rs above that num be r cannot be re garde d as "sm all". The com posite law sugge ste d by us for sm all e nte rprise s has provisions for re gistration of e stablishm e nt, (provisions pe rtaining to) se curing safe ty, he alth and we lfare , awards of work , le ave , paym e nt of wage s, paym e nt of bonus com pe nsation in case of lay off, re tre nchm e nt and closure , re solution of individual and colle ctive dispute s of work e rs e tc. The law sugge ste d by us also has provisions pe rtaining to social se curity. W e are of the vie w that a com posite law will not only prote ct the inte re st of the work e rs in the se e nte rprise s but will m ak e it e asie r for the sm all e nte rprise s to com ply with the sam e . (6.28) 4. The com m ission has avoide d the te rm 'Industry' with a vie w that the pe rsons e ngage d in domestic service are be tte r cove re d unde r the propose d type of um bre lla le gislation, particularly in re gard to wage s, hours of work , work ing conditions, www.erlaws.com/library/nlcrshivaji.htm 2/7

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2nd National Labour Commission Report

5. Modification in the te rm s lik e 'strik e s', 'work stoppage ' e tc. and the te rm s go slow and work to rule m ust be re garde d as m isconduct unde r Standing O rde rs and Provisions re lating to unfair labour practice . (6.41) 6. C om m ission has re com m e nde d to the withdrawal of Esse ntial Se rvice s Mainte nance Act (6.49). 7. The C om m ission has sugge ste d to ide ntify a bargaining age nt on the basis of che ck -off syste m , with 66% e ntitling the Union to be acce pte d as a single ne gotating age nt and if no union has 66% support, the n Unions that have the support of m ore than 25% should be give n proportionate re pre se ntation on the colle ge . (6.66) 8. C he ck -off syste m in an e stablishm e nt e m ploying 300 or m ore work e rs m ust be m ade com pulsory for m e m be rs of all re giste re d trade unions. (6.73) 9. C om m ission also re com m e nde d that re cognition once grante d, should be valid for a pe riod of 4 ye ars to be co-te rm inus with the pe riod of se ttle m e nt. No claim by any othe r Trade Union / Fe de ration / C e nte r for re cognition should be e nte rtain till at le ast 4 ye ars have e lapse d from the date of e arlie r re cognition. (6.76) 10. Establishm e nt e m ploying 20 or m ore work e rs should have Standing O rde r or R e gulations. The re is no ne e d to de lim it the issue s on which Standing O rde rs can or ne e d be fram e d. As long as two partie s agre e all m anne r of things including m ulti-sk illing, production, job e nrichm e nt, productivity and so on can also be adde d. The appropriate Gove rnm e nt m ay pre scribe a se parate Mode l Standing O rde rs for units e m ploying le ss than 50 work e rs. The C om m ission has drafte d a draft Mode l Standing O rde rs in this re gard. (6.77). 11. Eve ry e stablishm e nt shall e stablish a grie vance re dre ssal com m itte e consisting of e qual num be r of work e rs and e m ploye rs re pre se ntative s. The said com m itte e be the body to which all grie vance of a work e r in re spe ct of his e m ploym e nt will be re fe rre d for de cision within a give n tim e fram e (6.80). 12. C om m ission's vie w on C hapte r V B (Spe cial Provisions re lating to Lay-off, R e tre nchm e nt & C losure in the Establishm e nts e m ploying not le ss than 100 work m e n) of the ID Act : The C om m ission has fe lt that, in the ne w circum stance s of global com pe tition, it m ay not be possible for som e e nte rprise s to continue and m e e t the e conom ic conse que nce s of com pe tition. In such case s, one cannot com pe l non-viable unde rtak ings to continue to be ar the financial burde n that has to be borne to k e e p the conce rn going. The y should, the re fore , have the option to close down. In the se circum stance s, the com m ission cam e to the conclusion the be st and m ore hone st e quitable course will be to allow closure , provide for ade quate com pe nsation to work e rs and in the e ve nt of an appe al, le ave it to the Labour R e lations C om m ission to find ways of re dre ssal - through arbitration or adjudication. (6.87). 13. Prior pe rm ission is not ne ce ssary in re spe ct of lay-off and re tre nchm e nt in an e stablishm e nt of any e m ploym e nt size . W ork e rs will howe ve r be e ntitle d to 2 m onths notice or notice pay in lie u of notice , in case of re tre nchm e nt. The com m ission also fe lt that the rate of re tre nchm e nt com pe nsation should be highe r in a running organisation than in an organisation which is be ing close d. It would howe ve r re com m e nd that in the case of e stablishm e nt e m ploying 300 or m ore work e rs whe re lay-off e x ce e ds a pe riod of 1 m onth such e stablishm e nts should be re quire d to obtain post-facto approval of the appropriate gove rnm e nt. The C om m ission re com m e nds that the provisions of C hapte r V B pe rtaining to pe rm ission for closure should be m ade applicable to all the e stablishm e nts to prote ct the inte re st of work e rs in e stablishm e nt which are not cove re d at pre se nt by this provision if the y are e m ploying 300 or m ore work e rs. Having re gard to the national de bate on the issue and the principle s outline d above the com m ission has re com m e nde d the com pe nsation pe r com ple te d ye ar of se rvice @ of 30 days on account of closure in case of sick industry which has continuously running to losse s for the last 3 ye ars and @ 45 days for re tre nchm e nt by such sick industry or body whe re re tre nchm e nt is done with a vie w to be com e viable . The com m ission also re com m e nde d highe r re tre nchm e nt com pe nsation @ 60 days wage s and sim ilarly a high rate of com pe nsation for closure @ 45 days wage s for e ve ry com ple te d ye ar of se rvice for profit m ak ing organisation . For e stablishm e nt e m ploying le ss than 100 work e rs, half of the com pe nsation m e ntione d above , in te rm s of days of wage s m ay be pre scribe d. Howe ve r, notice is re quire d to be give n for both the case s of re tre nchm e nt and closure as that of big industry. (6.88). 14. The com m ission has re com m e nde d for m ainte nance of pane l of arbitrators by the LR C conce rn, to se ttle the dispute s. (6.93). 15. The m atte rs pe rtaining to individual work e rs, be it te rm ination of e m ploym e nt or transfe r or any othe r m atte r be de te rm ine d by re course to the Grie ve nce R e dre ssal C om m itte e , conciliation and arbitration / adjudication by the Labour C ourt. Accordingly, Se c.2 a of the ID Act m ay be am e nde d. (6.96) 16. The syste m of le gal aid to work e rs and trade unions from Public Fund be work e d out to e nsure that work e rs and the ir organisations are not unduly handicappe d as a re sult of the ir inability to hire le gal counse l. (6.98) 17. Strik e should be calle d only by the re cognise d ne gotiating age nt and that too only afte r it had conducte d a strik e ballot am ong all the work e rs, of whom at le ast 51% of support the strik e . (6.101). 18. W ork e rs participation in m anage m e nt - the le gislative te e th should be provide d. (6.102). The Commission urges that these recommendations are taken up as a whole and not in a piece-meal manner that may destroy the context of inter-relation and holistic approach. (6.104).

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19. The provisions in re spe ct of sm all e stablishm e nts can be in the form of a se parate law nam e Sm all Ente rprise s (Em ploym e nt R e lations Act) or be include d in the ge ne ral law as a se parate chapte r to e nsure that the inte re st of the work e rs are fully prote cte d, e ve n while le sse ning burde n on the m anage m e nt and providing the m with vigilance in e x e rcising m anage rial functions. (6.106)

III - Contract Labour/Casual Temporary Workers (i) The C om m ission has re com m e nde d that contract labour shall not be e ngage d for core production / se rvice activitie s. Howe ve r, for sporadic se asonal de m and, the e m ploye r m ay e ngage te m porary labour for core production / se rvice activity. As m e ntione d by the com m ission that off-loading pe re nnial non-core se rvice s lik e cante e n, watch and ward, cle aning, e tc. to othe r e m ploying age ncie s has to tak e care of thre e aspe cts - (1) the re have to be provisions that e nsure that e nsure that pe re nnial core se rvice s are not transfe rre d to othe r age ncie s or e stablishm e nts; (2) whe re such se rvice s are be ing pe rform e d by e m ploye e s on the payrolls of the e nte rprise s, no transfe r to othe r age ncie s should be done without consulting, bargaining (ne gotiating) age nts; and (3) whe re the transfe r of such se rvice s do not involve any e m ploye e who is curre ntly in se rvice of the e nte rprise , the m anage m e nt will be fre e to e ntrust the se rvice to outside age ncie s. The contract labour will, howe ve r, be re m une rate d at the rate of a re gular work e r e ngage d in the sam e organisation doing work of a com parable nature or if such work e rs doe s not e x ist in the organisation, at the lowe st salary of a work e r in a com parable grade , i.e . unsk ille d, se m i-sk ille d or sk ille d. (6.109). (ii) The C om m ission would re com m e nd that no work e r should be k e pt continuously as a C asual or te m porary work e r against a pe rm ane nt job for m ore than 2 ye ars. (6.110)

IV - Wages (i) The C om m ission re com m e nds that e ve ry e m ploye r m ust pay e ach work e r his one -m onth's wage , as bonus be fore an appropriate fe stival, be it Diwali or O nam or Puja or R am zan or C hristm as. Any de m and for bonus in e x ce ss of this upto a m ax im um of 20% of the wage s will be subje ct to ne gotiation. The C om m ission also re com m e nd that the pre se nt syste m of two wage ce ilings for re ck oning e ntitle m e nt and for calculation of bonus should be suitably e nhance d to R s.7500/- and R s.3500/- for e ntitle m e nt and calculation re spe ctive ly.(6.113). (ii) The re should be a national m inim um wage that the C e ntral Gove rnm e nt m ay notify. This m inim um m ust be re vise d from tim e to tim e . It should, in addition, have a com pone nt of de arne ss allowance to be de clare d six m onthly link e d to the consum e r price inde x and the m inim um wage m ay be re vise d once in five ye ars. The C om m ission also re com m e nds the abolition of the pre se nt syste m of notifying sche dule d e m ploym e nts and of fix ing/re vising the m inim um rate s of wage s pe riodically for e ach sche dule d e m ploym e nt, since it fe e ls that all work e rs in all e m ploym e nts should have the be ne fit of a m inim um wage . (6.114) (iii) The re is no ne e d for any wage board, statutory or othe rwise , for fix ing wage rate s for work e rs in any industry. (6.118).

V - Working Conditions, Service Conditions etc The Commission recommended enactment of a general law relating to hours of work, leave and working conditions, at the work place. For ensuring safety at the work place and in different activities, one omnibus law may be enacted, providing for different rules and regulations on safety applicable to different activities. (The Commission have appended a draft indicative law on hours of work and other working conditions after this chapter, and an omnibus draft indicative law on safety in the chapter on Labour A dministration). Such general law on working conditions etc. may provide for the following (6.121) :a) The law should have a provision for le tte rs of appointm e nt along with a copy of Standing O rde rs of the e stablishm e nt (in the local language ); and issue of a photo ide ntity card giving de tails of the nam e of the work e r, nam e of e stablishm e nt, de signation, and so on. b) It should spe cify the m ax im um num be r of work ing hours in a day/we e k , and paym e nt of ove rtim e at double the rate s of wage s. The lim itation on e m ploying work e rs on ove rtim e ne e ds to be re lax e d, and the C om m ission re com m e nde d that the pre se nt ce ilings be incre ase d to double to e nable gre ate r fle x ibility in m e e ting the challe nge s of the m ark e t. Sub se ction (2) of Se ction 64 of the Factorie s Act contains a provision that the State Gove rnm e nt can give e x e m ptions in ce rtain circum stance s. Sub se ction (2) of Se ction 64 of the Factorie s Act contains a provision that the State Gove rnm e nt can give e x e m ptions in ce rtain circum stance s. The C om m ission re com m e nd that the list of such continge ncie s m ay be suitably e x pande d in consultation with the re pre se ntative s of the industry to include m ore occupations, proce sse s and continge ncie s. c) The re should be re duce d work ing hours for adole sce nts, prohibition of unde rground work in m ine s for wom e n work e rs, prohibition of work by wom e n work e rs be twe e n ce rtain hours and so on. d) O n the que stion of night work for wom e n the re ne e d not be any re striction on this if the num be r of wom e n work e rs in a shift in an e stablishm e nt is not le ss than five , and if the m anage m e nt is able to provide satisfactory arrange m e nts for the ir transport, safe ty and re st afte r or be fore shift hours. e ) No e x e m ptions lik e EPZ or SEZ from labour laws. f) Appropriate gove rnm e nt m ay be e m powe re d to grant e x e m ptions on case to case basis. www.erlaws.com/library/nlcrshivaji.htm 4/7

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g) Establishm e nt having a m an powe r ove r a spe cifie d lim it m ust provide for a cante e n. h) O the r re fre shm e nt facilitie s e x clusive ly base d on ge nde r be provide d i) To rope in local bodie s, NGO s e tc. in cre ation of am e nitie s, com m on m ark e t e tc. j) Irre spe ctive of num be r of wom e n work e rs, a cre che should be provide d k ) De le tion of Em ploye rs' Liability Act, 1938, Fatal Accide nt Act 1855 and re le vant provisions of the se Acts m ay be incorporate d into the W .C . Act, 1923. (6.126) l) A provision m ay be m ade in the Laws that all case s m ust be dispose d of in a span of 3 he arings, and whe re this is not possible , the Labour C ourt should in its award give re asons for tak ing m ore he arings. The Labour R e lations C om m issions m ay also be e ntruste d with the re sponsibility to asse ss the work of the LC s particularly in the m atte r of e x pe ditious disposal of case s. W ith the constitution of an All India Labour Judicial Se rvice s that the com m ission is re com m e nding with a hope that to have a de dicate d and com pe te nt se t of m an and wom an as pre siding office rs of LC s who will be able to discharge re sponsibilitie s e fficie ntly and e x pe ditiously. (6.139) VI - Social Security The Commission has suggested the recommendations on social security. The main recommendations amongst the other are stated herein below : i) O ur C om m ission acce pts the ne e d to conside r social se curity as a fundam e ntal hum an right. (8.30) ii) W e re com m e nd a syste m in which the State be ars the re sponsibility for providing and e nsuring an e le m e ntary or basic le ve l of se curity, and le ave s room for partly or wholly contributory sche m e s. This will m e an that the re sponsibility to provide a floor will be prim arily that of the State , and it will be le ft to individual citize ns to acquire highe r le ve ls of se curity through assum ption of re sponsibility and contributory participation. Such a syste m will te m pe r and m inim ise the re sponsibility of the State , and m ax im ise the role and share of individual and group re sponsibility. Thus, the re will be thre e le ve ls in the syste m . (8.32) iii) The Task Force on Social Se curity re com m e nde d that wage ce iling and e m ploym e nt thre shold can and should be uniform with a provision for raising the wage ce iling and its e ve ntual re m oval and lowe ring e m ploym e nt thre shold and its ultim ate re m oval. The C om m ission also agre e s with it. (8.93) iv) The te rm 'work m an' m ay be re place d by the te rm 'e m ploye e ' so as to m ak e the W ork e rs' C om pe nsation Act applicable to all cate gorie s of e m ploye e s; the te rm 'e m ploye e ' m ay be de fine d to m e an any pe rson e m ploye d in any e m ploym e nt spe cifie d in Sche dule II; the e ntrie s in Sche dule II m ay be re vise d so as to m ak e it applicable to all classe s of e m ploye e s progre ssive ly; and re strictive clause s, whe re ve r the y occur in the Sche dule , m ay be om itte d. (8.96) v) The W ork m e n's C om pe nsation Act should be conve rte d from an e m ploye rs' liability sche m e to a social insurance sche m e , its cove rage should be progre ssive ly e x te nde d to m ore e m ploym e nts and classe s of e m ploye e s, and the re strictive clause s in Sche dule II of the Act should be re m ove d. (8.97) vi) The m anage m e nt of ESI Sche m e should be profe ssionalise d (8.113) vii) The PF Act be m ade applicable to all classe s of e stablishm e nt subje ct to such e x ce ption.(8.117) viii) The C om m ission sugge sts that EPFO organise d an e nquiry into the work ing of all e x e m pte d funds by an inde pe nde nt age ncy and re vie w the e ntire sche m e of granting e x e m ptions from the provisions of the EPF Act. (8.126) ix ) The Paym e nt of Gratuity Act m ay be inte grate d with the EPF Act and conve rte d into a social insurance sche m e . (8.149) x ) An une m ploym e nt insurance sche m e could play substantial role in coping with unacce ptable le ve ls of e m ploym e nt re sulting from the im ple m e ntation of structural adjustm e nt program m e s and othe r e conom ic re form s. (8.175) x i) The National R e ne wal Fund (NR F) was e stablishe d in Fe b-92 to provide a form of wage guarante e which had to be use d for re -training, re -de ploym e nt, counse lling e tc. but in practice , NR F has m ostly be e n utilise d for im ple m e nting the VR S. The re is ne e d to re structure this fund to se rve as a wage guarante e fund. (8.179) x ii) A provision be m ade for Paym e nt of Educational Allowance to all e m ploye e s (8.182). x iii) The insurance com panie s be re quire d to de ve lop two or m ore plans providing cove rage for m ajor risk s face d by pe ople le aving it to individual to choose from am ong the m according to the ir capacity. (8.242) x iv) A National Sche m e for pe nsion for physically handicap be introduce d (8.365). x v) A National Sche m e be drawn up for paym e nt of pe nsion to le prosy affe cte d pe rsons, m e ntally sick pe ople on the sam e line s as the pe nsion for physically handicap pe rson. 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x vi) Able bodie d be ggars should be give n training and he lp to ge t e m ploym e nt. (8.386) x vii) A pe rm ane nt com m ission for disaste r m anage m e nt should be se t up on the line s of e le ction com m ission. (8.393) x viii) The C om m ission strongly re com m e nds the constitution of high powe re d national se curity authority pre fe rably unde r the C hairm anship of a Prim e Ministe r of India. (8.415). x ix ) A social se curity fund of India and social se curity of e ach State m ay be se t up. (8.433) x x ) The re will be thre e k inds of social se curity sche m e s : 1) social insurance type of contributory sche m e , 2) subsidise d insurance / we lfare fund type of partly contributory and partly socially assiste d sche m s and 3) social assistance sche m e which will be wholly non-contributory. (8.343) VII - Other Recommendations R e com m e ndations on wom e n & child labour : R e com m e ndations on sk ill de ve lopm e nt : Labour Adm inistration W ork e rs participation in m anage m e nt Em ploym e nt sce nario in the country : R e vie w of wage s and wage policy : Labour statistic and re se arch work :

VIII - Conclusions The C om m ission in its 2700 page s long re port inter-alia has stre sse d on the following: Bilate ral agre e m e nt, colle ctive bargaining, ide ntification of partie s to bargain and for re cognition. R e vie w on e x isting provisions in the Trade Union Act with re gard to re cognition / re gistration of trade union i.e . 10% support of the work force with m e thod of ide ntification of partie s, conse que nce s - 66% support to re cognise as TU Dispute Se ttle m e nt Grie vance Se ttle m e nt C om m itte e s, Powe r to the labour m achine ry to e nforce awards Disposal of dispute s within 3 he arings Inde pe nde nt from gove rnm e nt inte rfe re nce Se lf containe d code / proce dure R e vie w on strik e s and lock outs Esse ntial Se rvice s Mainte nance Act should be scrappe d Hire - fire policy, e conom ic ne ce ssity Social acce ptability of contract syste m of appointm e nts Manage m e nt (wants) to de cide the work ing force - Se c. 9 A is m ust C ontract Labour (R &A) Act, 1970 : No contract labour should be de ploye d C ore functions The C om m ission has sugge ste d the above re com m e ndations along-with 7 draft bills so that the conce rne d Ministry should not sit ove r the drafting e x e rcise . Critics on the Report:a) The re port is not consonance with the National Policy on Industry - som e of the parts of the R e port consist num be r of ne gative cove nants. b) Inte r union rivalry - 66% che ck off syste m is a m yth c) Validity of 4 ye ars re cognition of the Trade Unions d) Strik e s are we apons in the hands of fe w m isle d e m ploye e s - C om m ission has re com m e nde d ballot syste m i.e . 51% of voting m ajority; e ) Em ploye rs fe ature s not de alt in the R e port f) C LR A Act - out sourcing not in the e m ploye rs inte re st g) C losure - 300 is not ade quate & is unre alistic h) Fe stival bonus - not in the inte re st of the e m ploye r i) Em ploym e nt ge ne ration should be our goal accom panie d by social be ne fit ne t j) Using of the words "outsourcing", "agri busine ss", "sm all scale industrie s", "sm all and m e dium scale industrie s", "m anufacturing industry" without de fining the m .

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