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Employers oppose workers' participation in management Bill

Our Bureau

NEW DELHI, May 19

THE Employers Federation of India (EFI) and PHDCCI have opposed the proposed Workers Participation in Management Bill (which is pending in the Rajya Sabha since 1990) saying it would cause serious impediment in expanding the industrial base.

"Though the objective of workers' participation in management is laudable to tap their skill and creativity and achieve higher efficiency, better quality and competitiveness, the Bill has lost its relevance in view of the globalised market and our entering in the WTO regime", the EFI Northern region Chairman, Mr R K Somany, said in a statement.

While the Government has assured the industry to abolish the inspector raj, the Bill gives wide powers to the inspectors to enter premises of establishment, examine books, registers and documents relating to the employment of persons.

This would increase harassment of employer and breed more corruption, Mr Somany said, adding, the provision of imprisonment or fine up to Rs 20,000 for violating any provision, even on technical grounds, was rigorous and might create scare among employers.

Under the proposed law, about 25 per cent seats in the board would have to be allocated to the employees thus reducing the promoter's share in the board to 25 per cent, which would be a strong disincentive to any promoter who invested resources in the enterprise, he said.

Instead, the constitution and working of the Works Committee under Industrial Disputes Act should be enlarged for providing effective and meaningful consultation on all work related issues of the establishment, Mr Somany suggested.

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