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34 STANDING COMMITTEE ON LABOUR (2017-18) (SIXTEENTH LOK SABHA) MINISTRY OF LABOUR AND EMPLOYMENT DEMANDS FOR GRANTS (2018-19) THIRTY-FOURTH REPORT LOK SABHA SECRETARIAT NEW DELHI March, 2018/Phalguna, 1939 (Saka) i THIRTY-FOURTH REPORT STANDING COMMITTEE ON LABOUR (2017-18) (SIXTEENTH LOK SABHA) MINISTRY OF LABOUR AND EMPLOYMENT DEMANDS FOR GRANTS (2018-19) Presented to Lok Sabha on 13.03.2018 Laid in Rajya Sabha on 13.03.2018 LOK SABHA SECRETARIAT NEW DELHI March, 2017/Phalguna, 1938 (Saka) ii CONTENTS PAGE No. COMPOSITION OF THE COMMITTEE (iv) INTRODUCTION (v) REPORT I. INTRODUCTORY 1 II. NEW INITIATIVES 4 III. FINANCIAL AND PHYSICAL PERFORMANCE 5 IV. POOR PERFORMANCE OF SOME SCHEMES 9 V. BUDGET & CASH MANAGEMENT SCHEME (B&CM) 18 VI. REHABILITATION OF BONDED LABOUR 20 VII. INDUSTRIAL RELATIONS 26 VIII. PRADHAN MANTRI ROJGAR PROTSAHAN YOJANA (PMRPY) 32 IX. EMPLOYEES' PROVIDENT FUND ORGANISATION (EPFO) 39 X. EMPLOYEES' PENSION SCHEME, 1995 44 ANNEXURES ANNUEXURE I - Physical Targets and Achievements 48 ANNUEXURE II - Incumbency Position of Presiding Officers at CGIT-Labour 113 Courts as on 01.02.2018 APPENDICES Appendix I- Minutes of the Eleventh Sitting of the Committee held on 115 22nd February, 2018 Appendix II-Minutes of the Fourteenth Sitting of the Committee held 118 on 12th March, 2018 iii COMPOSITION OF THE STANDING COMMITTEE ON LABOUR (2016-17) DR. KIRIT SOMAIYA - CHAIRPERSON MEMBERS Lok Sabha 2. Shri Udayanraje Pratapsingh Bhonsle 3. Shri Rajesh Diwakar 4. Shri Ashok Kumar Dohrey 5. Shri Satish Chandra Dubey 6. Shri Devajibhai Fatepara 7. Shri Satish Kumar Gautam 8. Dr. Boora Narsaiah Goud 9. Shri Rama Chandra Hansdah 10. Shri C. N. Jayadevan 11. Shri Bahadur Singh Koli 12. Dr. Arun Kumar 13. Shri Kaushalendra Kumar 14. Shri Hari Manjhi 15. Shri R. Parthipan 16. Shri Dayakar Pasunoori 17. Shri Hariom Singh Rathore 18. Shri Y.S. Avinash Reddy 19. Shri Naba Kumar Sarania (Hira) 20. Shri Kodikunnil Suresh 21. Shri Mulayam Singh Yadav Rajya Sabha 22. Dr. K. Chiranjeevi 23. Shri Ram Narain Dudi 24. Shri N. Gokulkrishnan 25. Shri Nazir Ahmed Laway 26. Shri P.L. Punia 27. Shri Rajaram 28. Shri Amar Shankar Sable 29. Ms. Dola Sen 30. Shri Tapan Kumar Sen 31. Vacant SECRETARIAT 1. Ms. Rimjhim Prasad - Joint Secretary 2. Smt. Anita B. Panda - Director 3. Shri C. Vanlalruata - Additional Director 4. Shri Mohinder Paul Rana - Executive Assistant iv INTRODUCTION I, the Chairperson, Standing Committee on Labour (2017-18) having been authorized by the Committee do present on their behalf this Thirty-Fourth Report on 'Demands for Grants (2018-19)' of the Ministry of Labour and Employment. 2. The Committee considered the Demands for Grants (2018-19) pertaining to the Ministry of Labour and Employment which were laid on the Table of the House on 8th February, 2018. After obtaining the Budget Documents, Explanatory Notes, etc., the Committee took evidence of the representatives of the Ministry of Labour and Employment on 22nd February, 2018. The Committee considered and adopted the Report at their sitting held on 12th March, 2018. 3. The Committee wish to express their thanks to the officers of the Ministry of Labour and Employment for tendering oral evidence and placing before them the detailed written notes and post evidence information as desired by the Committee in connection with the examination of the Demands for Grants. 4. For ease of reference, the Observations and Recommendations of the Committee have been printed in thick type in the body of the Report. New Delhi; DR. KIRIT SOMAIYA 12th March, 2018 CHAIRPERSON, 21st Phalguna, 1939 (Saka) STANDING COMMITTEE ON LABOUR v REPORT INTRODUCTORY Work is part of everyone's daily life and is crucial to one's dignity, well-being and development as a human being. Economic development means not only creation of jobs but also working conditions in which one can work in freedom, safety and dignity. According to their Annual Report, the Ministry of Labour & Employment (MoL&E), one of the oldest and important Ministries of the Government of India, is functioning to ensure that it remains focused on improving life and dignity of labour force, of Country by protecting and safeguarding the interest of workers, promotion of welfare and providing social security to the labour force both in Organised and Unorganised Sectors, by enactment and implementation of various Labour Laws, which regulate the terms and conditions of service and employment of workers. The State Governments are also competent to enact legislations, as labour is a subject in the Concurrent List under the Constitution of India. 1 2. The Ministry has taken several initiatives, legislative as well as administrative, to provide decent working conditions, improved quality of life of workers, commitment to free India from Child Labour, employment generation and simplification of Labour Laws for ease of doing business. The Ministry has taken initiatives for creating Institutional mechanism to ensure and realize job security, wage security and social security to the labour force of the Country. 3. The Demands for Grants of the Ministry of Labour & Employment for the year 2018-19 are covered under Demand No. 60. Funds are allocated to the Ministry under the following Major Heads:- i. 2251 Secretariat-Social Service ii. 2225 Welfare of SC/ST and OBCs iii. 2230 Labour-Employment and Skill Development iv. 2552 Lum-Sum-Provision for North Eastern Region v. 3601 Grants-in-aid to State Governments vi. 3602 Grants-in-aid to Union Territories vii. 4225 Welfare of SC/ST and Other Backward Classes viii. 4250 Capital Outlay on Other Social Services. 2 Organizational Chart of the Ministry is as follows: Major Schemes/Activities of the Ministry are as under: 3 II. NEW INITIATIVES 4. The Annual Report of the Ministry states that it is implementing the National Career Service (NCS) Project as a Mission Mode Project for transformation of the National Employment Service to provide a variety of employment related services like career counseling, vocational guidance, information on skill development courses, apprenticeship, internships etc. The NCS Portal (www.ncs.gov.in) has been made functional and was dedicated to the Nation by Hon'ble Prime Minister of India on 20.07.2015. The NCSP is supported by a dedicated helpdesk (multi- lingual) available from Tuesday to Sunday (8.00 AM to 8.00 PM) on 18004251514 for assisting users. It has a rich repository of career content of over 3600 occupations. 5. The NCS Project has also been enhanced to interlink all employment exchanges with the NCS Portal so that services can be delivered online. The scheme provides for part funding to States for IT upgradation and minor refurbishing of Employment Exchanges and for organising job fairs. 6. "Pradhan Mantri Rojgar Protsahan Yojana" (PMRPY) is being implemented by the Ministry of Labour & Employment with the 4 objective of promoting employment generation. Under the scheme, Government of India will pay the Employees Pension Scheme (EPS) contribution of 8.33% for all new employees enrolling in EPFO for the first three years of their employment. This will incentivise the employers to recruit unemployed persons and also to formalize informal employees. The scheme is applicable to those having earnings upto ₹15,000/- per month. According to the Ministry's Annual Report, a budget provision of ₹1,000/- crore for the year 2016-17 for this scheme was made. For the textile (garmenting) sector, Government of India is paying the complete 12% employers' contribution (8.33% EPS+3.67% EPF) for the new employees. Till 31st October, 2017, 16,756 establishments had registered under PMRPY scheme and EPS contribution was reimbursed for 9,48,281 beneficiaries. An expenditure of about ₹170 crore was made on the scheme till 31st October, 2017. III. FINANCIAL AND PHYSICAL PERFORMANCE 7. The year-wise Budget Estimate, Revised Estimate and actual utilisation of funds from the year 2015-16 to 2017-18 alongwith reasons for shortfalls, as enumerated by the Ministry are as under: 5 "The year-wise Budget Estimate, Revised Estimate and actual utilization of funds from the year 2015-16 to 2017-18 along with reasons for shortfalls in optimal utilization of funds is as under: (₹ In crore) Year BE RE AE Remarks 2015-16 2153.02 ^ 641.70 549.90 The three major schemes being (Plan implemented by the Ministry were Component Rashtriya Swasthya Bima Yojana only) (RSBY), Schemes of DGE&T and National Child Labour Project (NCLP) accounting for approximately 90% of the budget allocation. RSBY (₹1000.00 crore) was transferred to Ministry of Health & Family Welfare w.e.f., 1.4.2015. Savings in the schemes of DGE&T and NCLP was due to receipt of less number of proposals and non-receipt of Utilization certificates. 2016-17 1550.00 # 535.00 497.45 Pradhan Mantri Rojgar Protshan (Plan Yojna(PMRPY) Scheme accounting component for ₹1000.00 crore (64.51% of BE) only) was approved in August, 2016. Implementation of the scheme required changes in the EPFO software to enable new employees to be uniquely identified using their Aadhaar linked Universal Account Number (UAN). This process took considerably long time. 6 Year BE RE AE Remarks Savings in National Child Labour Project having BE 140.00 crore was due to receipt of less number of proposals and non-receipt of Utilization certificates from the districts. So far as the Scheme of U-Win Card, which accounted for ₹141.50 crore, is concerned, it was decided not to issue the smart cards as identity card, as a mean of authentication. 2017.18 7188.38 @ 6580.90 3502.83* Pradhan Mantri Rojgar Protsahan Yojana‟s technical platform was formalized in January, 2017. The expenditure under the scheme started picking up slowly thereafter.