 "Mansukh Mandaviya, Mansukh, Mandaviya")
Labour minister Mansukh Mandaviya
In a consultative meeting over the newly announced three employment-linked incentive (ELI) schemes with labour minister Mansukh Mandaviya on Wednesday, central trade unions remained divided, with a majority of the unions calling upon the government to modify the schemes to include unorganised sector workers, along with placing mechanisms to ensure financial accountability, people present in the meeting told Business Standard.
Amarjeet Kaur, general secretary, All India Trade Union Congress, said that through direct tax concessions to foreign firms and indirect subsidies to domestic manufacturing companies, the government has ‘exonerated’ itself from the commitment of employment generation while shifting it to the private sector.
“The employment subsidy of Rs 15,000 in three instalments to all new employees would only influence the compensation package offered by companies to internalise that subsidy. The other subsidy, such as the Rs 3,000 a month contribution for two years to be made by the government against provident fund subscriptions, accrues directly to employers,” she added.
However, supporting the job schemes, Deepak Jaiswal, president, National Front of Indian Trade Unions (NFITU), said that the schemes are a ‘positive’ step towards employment creation, and if need be, adequate regulatory mechanisms should be developed so that the funds are utilised better and not ‘syphoned off’.
“While these are not ideal schemes, we support them, primarily because they are a step for the welfare of workers. Any amount of money that there will be will ultimately go to workers. To avoid any misuse, the government should set up proper regulatory mechanisms,” Jaiswal advised.
Tapan Sen, general secretary, Centre of Indian Trade Unions (CITU), said that the modality of these schemes appears to be such as to practically subsidise the labour cost of the corporations.
“A similar scheme was launched earlier as well – Atmanirbhar Bharat Rojgar Yojana (ABRY) post-Covid, which only benefited the employers, and an audit of the same was never conducted so that we could come to know of the real beneficiaries,” Sen added.
Another person present in the meeting, requesting anonymity, said that these schemes are a form of subsidy to corporates, both domestic and foreign, being directly funded by the national exchequer.
Meanwhile, the labour ministry, in a statement, said that the ELI schemes have been designed to encourage businesses to generate more employment as well as to provide meaningful and sustainable jobs for the youth of the country.
“During the meeting, the labour minister stressed that the input of the trade unions is valuable to ensure that it serves the interests of all stakeholders,” it added.
First Published: Aug 28 2024 | 9:08 PM IST
