KCCI opposes proposal to close ESIC sub-regional office

The Kanara Chamber of Commerce and Industry (KCCI) has opposed the proposal to the government to close the sub regional office of the ESIC (Employees' State Insurance Corporation) in Mangaluru.

In a representation to Union Minister of State for Labour and Employment Santosh Gangwar, KCCI president Vathika Pai said that the closure of the sub-regional office (SRO) of the ESIC in Mangaluru will lead to hardships to all businesses and industries in the region along with lakhs of employees covered under ESIC.

'Too far'

Further, she said, closing of the sub-regional office in Mangaluru which is geographically away from the regional office in Bengaluru would adversely affect the efficiency of service to both employers and employees of the Mangaluru region.

"If the sub-regional office is closed, then employers from Mangaluru region will have to travel till the regional office in Bengaluru to attend personal hearings in connection with notices issued to them, determination of contribution, damages payable by them. It will also increase the cost of compliance and appeals for the employers as they will have to approach the regional office in Bengaluru, thus putting all the stakeholders in difficulty. Employees registered under ESI in Mangaluru region will also have to wait for settlement of their benefit claims for a long time," she said.

Pros of SRO in city

The KCCI president said, "The presence of a sub-regional office in Manhaluru has ensured better administration, streamlining of operations, quick decision making as well as better accessibility and approachability for employees and employers, along with better coordination with the associated hospitals. After the SRO at Mangaluru was made operational, all the sites of hospitals and dispensaries have been functioning well online, thus serving all the employees and their families. This has expedited the process of medical treatments and referrals to tie up hospitals for advances treatments."

The KCCI representation also said that SRO in Mangaluru is catering to the needs of a substantial number of employees of not just Mangaluru but also neighbouring towns and villages.

It is currently catering to more than 2 lakh employees and more than 5,000 organisations of the region.