Policy and Financing Framework for Livelihoods
23
the employers to secure conducive working
conditions. The Apprentices (Amendment)
Bill was passed in November 2014. The Bill
empowers the government to specify the
number of apprentices to be taken by an
employer in designated trades and optional
trades. Other legislation on the anvil in
labour-related themes are (a) Labour Code
on Wages Bill (b) Small Factories Bill and
(c) Amendments to Child Labour Laws.
Other developments
NITI Aayog
NITI Aayog was established on 1 January
2015 to replace the Planning Commission.
NITI Aayog provides strategic and technical
advice to states regarding different aspects
of policy. NITI Aayog will
•
Involve states in deciding national devel-
opment priorities, sectors and strategies;
•
Foster cooperative federalism through
state initiatives and mechanisms;
•
Develop plans at the village level and scale
them up to higher levels of government;
•
Design strategic and long-term policies
and programme frameworks andmoni-
tor their progress and efficacy; and
•
Focus on technology upgradation and
capacity building in order to implement
the programmes and initiatives.
The prime minister is the chairperson
of the Aayog. Its Governing Council has all
the chief ministers and lieutenant governors
as its members. The Regional Councils are
formed with with all chief ministers of the
states and lieutenant governors of union
territories(UTs), experts and specialists
with relevant domain knowledge as special
invited members. The Aayog is yet to settle
down with a clear organisational structure
and work procedures as it is just a few
months old.
In February 2015, the government
announced the formationof three sub-groups
within the NITI Aayog. These sub-groups
aim to: (a) study the 66 Centrally Sponsored
Schemes (CCS) and recommend which
ones to continue, to transfer, or to cut
down (b) recommend how the NITI Aayog
can promote skill development and skilled
manpower in states and (c) decide on
institutional mechanisms to be evolved in
implementing the Swachh Bharat scheme.
The Government of India (Allocation of
Rajasthan State Government has initiated
comprehensive labour law reform. The State
Government relaxed the Trade Union Act,
Industrial Dispute Act, Contract Labour Act,
as well as the 1948 Factories Act and 1961
Apprenticeship Act to spur economic devel-
opment and attract foreign investment to the
state. The following are the key changes made:
1. Industrial establishments employing up to
300 workers are now allowed to retrench
employees without seeking prior permis-
sion of the Government.
2. The threshold of the number of employees
required for the purpose of applicability of
the Factories Act has been increased from
10 to 20 (in electricity-powered factories)
and from 20 to 40 (in factories without
power) thereby putting small factories
in Rajasthan outside the purview of the
Factories Act.
3. Membership of 30 per cent of the total
workforce needs to be recorded for a
union to obtain recognition, up to 15 per
cent, a move that will halt productivity
losses due to industrial dispute.
4. As against the existing threshold of 20
contract labourers/workmen, the Contract
Labour Act will be applicable only to
those establishments and contractors in
Rajasthan who employ 50 or more con-
tract labourers/workmen in the preceding
12 months.
There were adverse reactions from labour
unions and the amendments were termed as
anti-labour and pro-employer.
Source:
Based on amendments and news reports.
Box 2.5:
Easing labour laws: The Rajasthan model
