Place cash in workers hands: Union leaders

Singh (name changed) from Bihar, who was working in a candle factory in Baikampady, lost his job during the lockdown crisis.

Yet Singh and his wife, residing in Guddeangadi near Kuloor, dream of a dignified life by pinning hopes on ‘cash’ or ‘income support’.

The cash/income support is one of the main objective of ESI (Employees State Insurance) scheme and a fundamental principle of social security, said V Radhakrishnan, a Thrissur-based leader of Bharatiya Mazdoor Sangh (BMS) and a member of Employees State Insurance Corporation (ESIC).

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Labour unions had urged the Centre to consider lockdown period as ‘deemed to have attended work’ in order to ensure that no worker was deprived of cash benefits.

But at the webinar, organised by FICCI (Federation of Indian Chambers of Commerce and Industry) here, recently, Union Labour Secretary rejected requests of the industry leaders on placing cash in hands of employees and hinted at a reduction in contribution rate. Incidentally, the rate of contribution was reduced from 6.50% to 4% as recently in July 2019.

Radhakrishnan said the centre was still undecided on providing cash support under Atal Bheemit Vyakti Kalyan Yojana (ABVKY) or reduce contribution.

“Even providing Rs 1,000 to 3.5 crore Insured Persons amounts to Rs 3,500 cr per month. Though ESIC has a reserve of Rs 68, 292 cr (as on March 2019), the money is needed to handle future contingencies,” he stressed.

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Labour union leader pointed out that the ABVKY had been a failure as no benefit was paid since it’s launch in 2018.

If the ABVKY is modified and cash support of 25% of average salary drawn by employees is extended to all Insured persons (IP) who have either lost wages or rendered unemployed due to lockdown (identified through monthly returns filed online) it would save many from distress, labour leaders said.

Kanara Chamber of Commerce and Industry (KCCI) President Issac Vaz said government’s order on paying wages had created friction between employers and employees.

“Cash flow is strained for one lakh odd medium, micro, small enterprises (MMSE) who buy on cash and sell on credit. The centre’s income support to employees, reducing GST, loans with 0% interest will certainly help MMSE,” he stressed.