Thursday 4 August 2016

Labour Reforms in Textiles and Apparel sector

The key labour reforms undertaken by the Government in the textile and apparel sector are as under: 

(i) Government to bear 3.67% of employer’s Employee Provident Fund (EPF) contribution for new workmen in addition to existing 8.33% employer contribution under Pradhan Mantri Rojgar Protsahan Yojana (PMRPY) for 3 years. 

(ii) EPF is made optional for employees earning less than Rs. 15,000 per month. 

(iii) Increase in overtime limit for workers in apparel industry from 50 hours to 100 hours per quarter. 

(iv) Introduction of Fixed Term Employment 

Besides, other steps taken by Government for the betterment of labour force including the textile sector are as follows: 

a. “Several labour reform initiatives have been taken by the Government, which will be benefitting the manufacturing sector including the textile sector. In line with the recommendations of the Second National Commission of Labour, Government has taken steps to draft Small Factories Bill, special legislation for regulating the working and service conditions of the workers in the small manufacturing units employing less than 40 workers. Further, Government has taken steps for drafting four Labour Codes for Wages: Industrial relations; Social Security & Welfare; and Safety, Health and Working Conditions respectively, by simplifying, amalgamating and rationalizing the relevant provisions of the existing Central Labour Laws. This will help in catalyzing the creating of employment opportunities in the country, while ensuring basic aspects of safety, social security and health of workers. 

b. A new Scheme “Pradhan Mantri Rojgar Protsahan Yojana”has been announced in the Budget for 2016-17 with the objective of promoting employment generation and an allocation of Rs. 1000 crores has been made. The Scheme is being implemented by the Ministry of Labour and Employment in 2016-17. Under the scheme employers would be provide an incentive for enhancing employment by reimbursement of the EPS contribution made by the employer in respect of new employment”. 

To improve participation of women in the garment sector, following steps have been taken: 

• Special Package of Rs.6000 crores has been announced for the Garment sector (where majority of workforce are women). 

• Government is implementing Integrated Skill Development Scheme (ISDS) with an allocation of Rs. 1900 crore to train workforce (of which 70% are women). 

This information was given by the Minister of State for Textiles, Shri Ajay Tamta today in a written reply to a Lok Sabha question .


Courtesy: pib.nic.in

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