CODISSIA members raise issues of MSME relating to labor and employment Minister for Labour Welfare and Skill Development

Coimbatore: C. V. Ganesan, Minister for Labour Welfare and Skill Development visited Coimbatore on Wednesday.



Coimbatore: C. V. Ganesan, Minister for Labour Welfare and Skill Development visited Coimbatore on Wednesday. 

During his visit to the cotton city, M.V. Ramesh Babu President of CODISSIA submitted a representation highlighting the labor and employment issues the MSME sector is facing and requested action is initiated to support the MSME sector.

A request was made to arrange for providing an adequate number of vaccinations for industry members. Under the EPF Scheme, since Aadhaar seeding has become mandatory, the PF challans could not be generated during multiple occasions in the last few months. Due to the non-generation of challans, crores of employees were deprived of their benefits during the lockdown. It was requested to extend the due date for submission of EPF challans and payment of contributions by another six months. 

A mention of the EPF portal not functioning at all times was also made. Because of this, a request was made to have the last date for depositing provident fund contributions extended to 30th from the 15th.

“An appropriate mechanism for skilling the existing potential workforce inside the state has to be urgently identified and implemented in a phased approach for self-reliance. Accordingly, existing schemes have to be revisited and new schemes have to be planned and we shall be glad to collaborate and work with the Government in this regard,” the president stated in the representation that was submitted to the minister. 

For the guest workers, sanctioning of subsidies was requested in order to create accommodation facilities for them in the city.

A set of representations were also presented for strengthening the skill development centers. On top of the list, it was requested that skill development centers are established as this in turn will help absorb sufficient manpower with required skills. It was also requested that a Memorandum of Understanding between rural development, district industries center, and the relevant association are created for developing skill development center through which the rural workforce can be trained in the established center as this will pave the way for MSMEs to absorb them. 

Moving the focus to MGNREGA, a representation was made on behalf of those who are employed under the respective scheme. “Employees working under the Mahatma Gandhi National Rural Employment Guarantee Act, 2005 (MGNREGA) which guarantees for 100 days of employment in a financial year, to be made available for the labour work in the industries located in cities. The industry looks at manpower flexibility to run the operations,” the representation stated.

A change in labor laws was also requested. Of them include a three-year suspension of Section 9A which prohibits an employer unilaterally alter the service conditions in respect of issues mentioned in the fourth schedule and also Section 33 which restricts the employer to change the service conditions during the pendency of the conciliation proceedings before the conciliation office. Also a request to have suspended was the entire chapter VB which bars layoff retrenchment and closure in respect of industry having 100 workmen on an average during the preceding 12 months should be suspended for a three-year period.

In the representation, the president of CODISSIA on behalf of the MSME sector requested that changes are implemented in Factories Act, Minimum Wages Act, Payment of Wages Act, and also in the Contract Labour & Regulations Act.

With regards to the Factories Act, it was requested that the daily and weekly work hours could be increased. Inspection of factories by DISH for Industries with less than 100 employees shall be done only with the permission of the Labour Commissioner. Inspection once in 2 years for industries having more than 100 employees, was another representation that was made under the Factories Act.

With regards to the Minimum Wages Act, it was brought to the notice of the minister that the government has not issued fresh revised minimum wages notification in respect of already existing industries in the schedule for two years. A request not to include new industries to the schedule for two years was also made. 

Under the Payment of Wages Act it was requested that Section 15 is suspended for one year. “In the present context, there is a scope for delayed payment of wages. Under Section 15 of the Act, the Authority can levy ten times fines on the delayed wages,” the representation stated.

Under the Contract Labour & Regulations Act, the representation stated that mandate to register contract labor by the principal employer and the contract labor to obtain a license, when he has 20 or more contract workmen, should be increased to above 100. “It is well known that the authorities under the above act are too stiff in granting registration and license on the ground that contract labour cannot be used in production related work. In general, the Labour Laws need to be simplified and relaxed for MSMEs,” the representation read. 

The representation that was submitted by CODISSIA, President to the Minister for Labour Welfare and Skill Development ended on a positive a note expressing hope that favorable actions will be initiated on the submissions made.

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