Industry in a fix over govt’s new job norm

Ambika Sharma

Tribune News Service

Solan, July 18

The state government’s move to enhance the mandatory employment quota for the Himachalis from 70 to 80 per cent in the state’s industry has set the alarm bells ringing for investors. This was especially so as the government proposed to implement this policy for the existing units.

There were 46,623 industrial units in the state where as many as 3,78,913 people were employed and investment worth Rs 26,535.97 crore has been made. As many as 45,992 units comprised the Small Scale Enterprises (SME) which had provided employment to 3,01,245 people.

In order to implement this 80 per cent mandatory employment clause to the Himachalis, the investors will have to retrench at least 10 per cent employees and re-induct local youth. This was fraught with legal issues as according to the labour laws an employer can’t retrench employees without a valid cause.

Terming this move as hasty, Arun Rawat, past Chairman, CII, Himachal, said this 80 per cent employment to the Himachalis should be made compulsory for the new units as existing small scale enterprises will find it difficult to first train the staff and then lay them off. 

There were certain sectors like steel and textile where Himachalis had little preference to work owing to the heat intensive work and the investors were compelled to hire outsiders for such jobs. Such units were finding it difficult to meet even the 70 per cent employability norm and if this is enhanced to 80 per cent it will further create problems.

Sailesh Aggarwal, president, Baddi Barotiwala Nalagarh Industries Association, also echoed similar views. He said they were awaiting its final notification and were hopeful that it would not be applicable to the existing industry. He added that since the local youth was averse to working in areas like the shop floor, where a majority of the workforce was employed, meeting this new norm will be difficult for the industries. He said that the association did share the state government’s concern to employ local youth given the high percentage of unemployed youth in the state but the proposed move should not be applicable to the existing industry.

Investors also said that they had invested in the skill upgrade of their staff given the new technological advancements and if they have to lay off 10 per cent staff to accommodate 80 per cent local youth, running SMEs will become much more strenuous.

Move hasty, says CII ex-chairman

Terming this move as hasty, Arun Rawat, past Chairman, CII, Himachal, said this 80 per cent employment to the Himachalis should be made compulsory for the new units as existing small scale enterprises will find it difficult to first train the staff.

Investors will have to Retrench 10% employees

In order to implement this 80 per cent mandatory employment clause to the Himachalis, the investors will have to retrench at least 10 per cent employees and re-induct local youth. This was fraught with legal issues as according to the labour laws an employer can’t retrench employees without a valid cause.