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Govt considers changes to Contract Labour Act

October 10, 2012 16:23 IST

Observing that huge difference in wages between regular and contract workers was leading to unrest, Government on Wednesday said a proposal to amend the Contract Labour Act was under consideration.

Labour Minister Mallikarjun Kharge said, "A proposal to amend the Contract Labour (Regulation and Abolition) Act 1970 safeguarding interest of contract workers is under consideration".

Speaking at a 'India staffing conclave' function here, he said, "Huge difference in wages between regular and contract workers was leading to unrest".

At present, employment on contract basis or outsourcing is regulated under the Act.

According to a study by the V V Giri National Labour Institute, contract labour accounts for 55 per cent of public sector jobs and 45 per cent of all private sector jobs.

Kharge said as India is founder member of ILO, all decisions for amending labour laws are taken after evolving consensus.

He said the UPA government has amended nine labour laws after exhaustive deliberations while the Cabinet has recently given approval for amending the Child Labour Act and Employment Exchange Act.

Amendments to four other key labour laws such as the Minimum Wages Act, Employees Provident Fund Act are also in the pipeline, he said.

Drawing attention to the skill development initiative of the government, he said training capacity has been increased by three times from 900,000 in 2006-07 to 2.6 million in 2011-12.

While the overall target of the government is to train 500 million persons by 2022, Kharge's ministry has been set a target of training 100 million.

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