The Government has decided to set up the Second National Commission on Labour comprising a Chairman and two full time Members. There will be seven part-time Members to represent Government, industry and workers. The tenure of the Commission will be 24 months from the date of its constitution. The terms of reference of the Labour Commission would be: to suggest rationalisation of existing laws relating to labour in the organised sector, and to suggest an ‘umbrella’ legislation for ensuring a minimum level of protection to the workers in the un-organised sector.

While drafting the framework for the above, the Commission may take into account the following:-

Follow up implications of the recommendations made by the Commission set up in May, 1998 for review of various administrative laws governing the industry. the emerging economic environment involving rapid technological changes, requiring response in terms of change in methods, timings and conditions of work in industry, trade and services, globalisation of economy, liberalisation of trade and industry and emphasis on international competitiveness and the need for bringing the existing laws in tune with the future labour market needs and demands. The minimum level of labour protection and welfare measures and the basic institutional framework for ensuring the same, in the manner which is conducive to a flexible labour market and adjustments necessary for furthering technological change and economic growth. Improving the effectiveness of measures relating to social security, occupational health and safety, minimum wages and linkages of wages with productivity and in particular the safe guards and facilities required for women and handicapped persons in employment.

SECOND NATIONAL LABOUR COMMISSION

To comprise a Chairman, two full time members and seven part-time members. Tenure – 24 months To suggest rationalisation of existing labour laws in the organised sector. To suggest an umbrella legislation for welfare of workers in the unorganised sector. To take into account opening up of the Indian Economy, international competitiveness and the needs and demands of the future labour market.

While announcing the decision here today, Labour Minister Dr. Satyanarayan Jatiya stated that more than 30 years had elapsed since the First National Commission on Labour was set up and many changes have taken place in the economic environment of the country in recent years which have brought out radical changes in the domestic industrial climate and the labour market. The large number of labour laws do not appear to be adequately equipped to tackle these emerging situations and handled effectively the challenge thrown up by these changes. Therefore, an indepth and critical review of our labour welfare and labour laws has become necessary. He said the proposal for setting up of Second National Commission on Labour was first mooted on the basis of the recommendation of Indian labour Conference held in September, 1992. Various Central Employers and Trade Union Organisations also wrote to Ministry of Labour suggesting to set up the Second National Commission on Labour.

Regarding the organised sector, Dr. Jatiya said the main focus of the National Commission on Labour would be to suggest rationalisation of the existing laws so as to make them more relevant and appropriate in the changing context of globalisation and opening up of the Indian economy.He said that in the unorganised sector,the main thrust would be to ensure a minimum level of protection to the workers through an umbrella legislation.