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NEW DELHI: The textile ministry has plans to amend the Industrial Disputes Act (IDA), 1947, which will allow textile exporting units to hire and fire at will.

In the past many state governments have already liberalized labor laws to attract investment and promote large-scale manufacturing. The labour ministry is taking note of the developments and is expected to give nod for labour reforms in certain sectors. This may start with units facilitating exports, mainly the textile sector.

The textile ministry has already moved a Cabinet note for limited amendment to the Industrial Disputes Act. According to the proposal, labour law restrictions would be eased only for textile exporting units providing a minimum employment guarantee of 100 days a year.

The textile ministry has also suggested that the working hours should be increased from the current 48 hours per week to 60 hours, and daily working hours from 9 to 12. To curb the sudden strikes the textile ministry also wants the notice period to be increased before a strike starts.

According to a textile ministry official 揑t is necessary to address rigidities of labor laws so that the industry can recognize the export potential and create additional job opportunities?

Industry players are of the opinion that the lack of flexibility in labor laws is hampering the textile industry抯 ability to compete in the global market.

Flexible labour laws are a must for the garment industry to compete at world level. Our labour productivity is less compared to other countries. The government move should not be taken just as hire-and-fire norm as the flexibility will generate more employment in the textile sector, CII working group textile head S P Oswal said.

Source: Industry Website