Money > Budget > Budget News & Analysis January 10, 2002 I 17:00 IST rediff.com
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TUs oppose labour reforms, reckless privatisation

Members of various trade unions on Thursday unanimously opposed amendments in labour laws and warned the Centre against 'reckless' privatisation as it will lead to mass retrenchment.

"We have jointly demanded that the government drop any move to amend labour laws in favour of employers", Hasubhai Dave of Bharat Mazdor Sangh told reporters after a pre-Budget meeting with Finance Minister Yashwant Sinha in New Delhi.

Dave said any move to amend Industrial Dispute Act and Contract Labour Act would not yield benefits as it would lead to mass retrenchment.

He said the government should hike the income tax exemption limit to Rs 100,000.

"Government should scrap the notification including fringe benefits like house allowance within taxable income", he added.

Dave said Sinha had assured unions that he would consider their demands.

Unions also criticised "policy of reckless privatisation" and all out downsizing and demanded that efforts should be made to revive sick units.

Stringent steps should be taken to recover non-performing assets of banking sector now at Rs 550 billion. They also asked government to penalise tax evaders.

Trade unions also sought restoration of 1998-99 levels of interest rates on small savings.

"Rates of interest on provident fund should not be compared with bank rate as they represent long term savings of employees", CITU (Centre for Indian Trade Union) general secretary M K Pandhe said.

Pandhe said government should formulate an employment policy.

He also demanded greater interaction with finance minister over economic policies, adding that the minister had assured representatives that he would call a meeting to discuss the economic situation.

Gurudas Dasgupta of AITUC (All India Trade Union Congress) demanded immediate steps to stop retrenchment, wage cuts and closure of units.

"Industry cannot be run by industrialists in this manner" he added.

Dasgupta sought a reversal of government's economic policies and massive investment in social sectors to halt recession.

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