Former Prime Minister of India - Shri Atal Bihari Vajpayee

Prime Minister Shri Atal Bihari Vajpayee's speech at the inauguration of the 38th Indian Labour Conference

The following is the text of the speech delivered by the Prime Minister, Shri Atal Bihari Vajpayee at the inauguration of the 38th Indian Labour Conference here today:

It gives me great pleasure to be with you this morning

The Indian Labour Conference is aptly described as the Labour Parliament of India. Even for someone who has completed forty-five years in India’s Parliament, it makes me feel happy that this is the third consecutive time I am attending your Parliament.

I have often wonder how right thinking and far-sighted were those pioneers who conceived of this tripartite institution, where the workers, the employers and the Government meet and discuss issues of contemporary and mutual interest.

For the strength of any institution lies in how it proves its relevance when the external environment, which gave birth to it, changes. The Indian Labour Conference has passed this test with flying colours.

Much has changed in the economic context, the industrial setting and the labour scenario in the past four decades. But the usefulness of a tripartite platform for harmonizing the perspectives of the three parties to this Conference has not diminished.

This vindicates the basic Indian outlook towards the relationship between labour and capital, and between them and the Government.

There was a time when some people advocated an irreconcilable class conflict in this relationship. History has proved them wrong.

Similarly, there are some voices these days that argue that labour is unimportant and dispensable in today’s age of technological revolution and economic liberalization. They too are wrong.

For next only to Nature, labour is that basic creative power which leaves its signature on everything that man makes – from the simplest to the most complex.

All technology is the creation of labour. And so are all tools that labour itself uses. Indeed, all capital is also the creation of labour.

A shopfloor worker, a farm worker, a mason, a manager, a scientist and a computer designer – all are workers in their own worthy ways.

It is not surprising that our culture has elevated the role of the worker to that of ‘Vishwakarma’ – Architect of the World.

Hence, the question of labour becoming redundant simply doesn’t arise.

Only the nature of labour, and the context in which it operates to produce socially useful goods and services, change from time to time.

A society’s needs are best fulfilled, and a nation’s interests are best advances, by responding to these changes by periodically changing the laws, regulations and procedures, so that labour’s creative power may always remain unfettered.

Of course, in so doing, the needs of labour have to be adequately met; and the interests of workers have to be safeguarded.

There can be no room for exploitation of labour by capital, because, by so doing, capital hurts itself. Besides, exploitation of man by man demeans not only the exploited but also the exploiter.

This is the basic Indian philosophy about labour and capital.

It believes in creating harmony among differing interests, where others may see an inherent antagonism.

It believes in consultation, cooperation and consensus, where others may see a case for coercion and confrontation.

The Indian Labour Conference was a product of this enlightened philosophy. May it remain true to its founding vision.

Over the years, this tripartite consultative process has helped shape many important labour laws and policies. These, in turn, have enabled us to improve the working and living conditions of the working class.

From its early sessions, the conclusions adopted by your Conference have helped to set up training institutions for workers’ education and skill upgradation, formulation of laws for elimination of child labour, adoption of better safety standards, etc.

Even today, it continues to influence our policies relating to industrial relations, workers’ participation in management, labour welfare, social security, problems of working women, and the impact of new economic policy on labour.

In a vibrant democracy like ours, we allow for full play of differences on all the issues that are discussed in this forum. It is through the expression of these sharp, sometimes polemical, differences that consensus often emerges, and we all move forward.

Friends,

The Indian Labour Conference is holding its 38th Session at a time when significant policy changes are on the anvil. When I addressed you last May, we were keenly awaiting the Report of the Second Labour Commission. As you know, the Commission has submitted its Report after a comprehensive and incisive study.

I take this opportunity to record my sincere appreciation and thanks to its Chairman, Shri Ravindra Varma, and all the members who served on the Commission, for their dedicated labour.

The Report throws useful light on many issues concerning the welfare, safety and security of labour, and the growth needs of our economy. Specifically, it endorses the broad thrust for labour reforms envisaged by the Government, while suggesting useful modifications and additional safeguards. The Government is currently examining the recommendations of the Commission and will take suitable action thereafter.

I am aware of the repeated demands for raising the ceiling limit for bonus and for introducing suitable changes in trade union recognition by identifying a truly representative negotiating agency. The Government will give serious consideration to these demands.

I would like to use this forum to once again make a strong appeal to one and all – both in and outside Parliament – for support to the Government’s agenda of labour reforms.

To appreciate the urgency of this appeal, consider the context which has made labour reforms the need of the hour.

As you are all well aware, the process of globalisation started more than decade back. It did not wait for permission from any country to do so.

The confluence of a number of fast-emerging developments has accelerated its pace. These developments embrace technology and trade, which are breaking geographical barriers; these cover tariffs and investment flows, which are breaking market barriers; and they are constantly changing product cycles as well as the cost and scale of production through innovation and R&D.

India cannot ignore these developments, except at her own peril.

On the contrary, India can benefit and prosper from these developments if we master them.

As someone has put it wittily, at the Table of Globalisation, you either have lunch or be lunch for someone else.

India does not wish to have lunch at some else’s expense. That has never been our outlook. But should we let our industry and services become weak and sick, and our markets susceptible to aggressive imports? And why should our industry and services not become strong enough to face global competition in export markets?

Take the case of our small-scale sector. It employs many more people than the big and medium industries. It also exports much more than them. And all of you know that it has enormous untapped potential for creating more employment opportunities, producing a wider variety of goods for both domestic and international markets, and bringing far greater export earnings for our country.

But for all this to happen, our small-scale industries need

their competitiveness to be strengthened

their commercial viability to be increased,

their technological base to be improved,

their equality and productivity to be stepped up,

their marketing to be developed, and

they need fresh investments to come in.

This is true for our big and medium units also.

We have entrepreneurship. We have a vast pool of skilled and hard-working labour. And, in addition to opportunities abroad, we have a huge domestic market, which is the envy of our competitors. What we need is to reform our laws, our institutions and our systems so that investments can successfully chase opportunities and potential is transformed into actual performance.

Outdated controls and unreasonable restrictions protect none, but they hurt everyone.

Dear delegates, what I am saying is already well known to you. Many of you, including our friends in labour unions, have traveled extensively and acquainted themselves with the winds of change sweeping the world.

You have seen how some of our neighbouring countries have established dominant positions in global markets, both in traditional industries such as textiles and toys, and modern industries such as computer hardware and consumer electronics. Labour reforms played an important part in their growth strategy. They also created new employment opportunities for skilled as well unskilled labour.

Therefore, reform is no longer an option. It is the only right choice to be made.

But let me make one thing once again clear. In our bid to accelerate economic reforms, we shall never dilute our commitment to broadening the social security net for workers. This is a moral and Constitutional obligation both on the Government and the employers.

Whether our reforms have human face or not,

Whether capital is caring and compassionate or not, and

Whether the Government agencies are sensitive or not,

is ultimately determined by how well our social security schemes work.

Our social security organizations, particularly the Employees State Insurance Corporation and Employees Provident Fund Organisation are doing commendable work in contingencies such as retirement, illness, death, disablement, etc. Still, there is tremendous scope for improvement in the content and quality of our social security schemes.

I would like the Ministry of Labour to constantly monitor their operations and incorporate the useful suggestions made by the Indian Labour Conference.

In the past few years, the Government has introduced some new social security schemes for workers in the unorganized sector, who constitute over 90% of our workforce. The implementation of these schemes too needs to be closely monitored. And since the unorganized workers are also the most vulnerable, and as they have no spokesmen of their own, it becomes the added responsibility of all of us to care for them. I salute voluntary organizations that are toiling for the welfare of workers in the unorganized sector and appeal to them to further broaden their good work.

I conclude with these observations. But not before wishing the very best to the deliberations of your two-day Conference. I am sure that it will throw up fresh ideas and practical suggestions for collective action for the well being of our working class and for the progress of our nation.

Thank you~.