(a) whether a report by World Bank Economists has suggested that modification of certain labour laws could create a huge
quantum of employment opportunities in the manufacturing sector as reported in Hindustan Times dated June 20, 2007;
(b) if so, the details thereof and the reaction of the Government thereto; and
(c) the other steps taken by the Government to generate employment opportunities in manufacturing sector?
MINISTER OF STATE (INDEPENDENT CHARGE) OF
THE MINISTRY OF LABOUR AND EMPLOYMENT
(SHRI OSCAR FERNANDES)
(a & b) Yes, Sir. World Bank economists in their research paper `Assessing the effects of job securities, labour disputes and
contract labour laws in India` have estimated that lifting chapter V (b) of Industrial Disputes Act, 1947 would add about 8,80,000
registered manufacturing jobs. Review/updation of labour laws is an ongoing process in order to bring them in tune with the
emerging needs of the economy such as increasing production, productivity, employment, etc. The required changes in the labour
laws are accomplished by the Government after detailed consultation with the social partners with a view to harmonise the interests
of all stake holders.
(c) The Approach to the Eleventh Five Year Plan Document provides a framework to restructure policies to achieve a new vision
based on faster, more broad-based and inclusive growth.It aims at making employment generation an integral part of the growth
process and devise strategies to accelerate not only growth of employment but also of wages of the poorly paid.
As one of the policy initiatives, measures would need to be taken to boost labour intensive manufacturing sectors such as food
processing, leather products, footwear and textiles, etc.