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Attempts to Relax Labour Laws in national manufacturing zones (NMZs)
The Department of Industrial Policy and Promotion (DIPP) which is the nodal agency for NMZs is trying by all means to relax the labour laws in national manufacturing zones. On February 16, the Department of Industrial Policy and Promotion (Dipp), the nodal agency for NMP, wrote to the labour ministry, requesting it to reconsider labour laws related to employability and retrenchment of workforce inside the NMZs. The letter specifically sought to transfer the responsibility of the industrial establishments to insurance companies, in case of closure and layoffs. However, the labour ministry is still of a position that the law cannot be changed as it could possibly jeopardise the social security of workers and that it could put the fate of the labourers in doldrums. Labour laws relating to closure and retrenchment are governed by the Industrial Disputes Act, 1947, according to which industrial establishments are required to provide compensation and alternative employment to workers if they are laid off or the establishment shuts down.
However, one change has already taken place and the ministry and like development commissioners of the special economic zones, chief executive officer of the NMZs will be the head of the labour machinery for the zones. It simply means that powers of labour commissioner is transferred to the CEO of the zones.
Manufacturing policy runs into labour trouble yet again; http://www.business-standard.com/india/storypage.php?autono=465862