Goa’s three major industry associations have raised objections over the state’s government decision to rush through an amendment to the Industrial Disputes Act, 1947, saying that the proposed amendment will have a severe and adverse impact on Goa’s Industrial sector.
Goa Chamber of Commerce and Industry, Confederation of Indian Industry-Goa and Goa State Industries Association have written a joint letter to chief minister Pramod Sawant to rethink the move to pass the at the upcoming one-day assembly session.
The amendment to the Industrial Disputes Act will ratify an ordinance which brought in quite a few reforms for the industry but also increased the compensation amount for retrenched workers.
The joints statement shared with the Chief Minister states, “Under the current economic slowdown, no industry whether small, medium and large in Goa can afford to pay such a steep compensation at the rate of 45 days’ wages per completed years of service.
An industry delegation from GSIA, GCCI and CII had attempted to meet the labour minister, Jennifer Monserrate, to address the concerns, but the minister could not make it for the meeting. GSIA also took up the issue with the labour secretary to convince them that the amendment will have a severe and adverse impact on the industrial situation in Goa.
Manoj Caculo, president of GCCI says that this is not a good move for a small state like Goa.
While many states have come out with amendments similar to the ones proposed in Goa, almost all the states have maintained the retrenchment compensation at 15 days.
GSIA President Damodar Kochkar states that with the increase in rate to 45 days, it is now expected that workmen and unions will base their demand for additional compensation over and above the revised statutory compensation for 45 days, which, being not affordable will thereby result in more industrial disputes and industrial relations in Goa.
The industry bodies have asked the state to avoid taking hasty decisions and instead hold stakeholder consultations before passing the amendment.
CII-Goa chairman, Blaise Costabir states that the state should avoid taking any hasty decision that will have a long-term impact on the state’s industrial sector. He further adds that the matter should be referred to the State Labour Advisory Board which is the more competent forum as it has the representation from the government, employers and the labour unions.
