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| Safety net on agenda | | Polls near, UPA turns pro-worker | |
THE government, according
to Dr Manmohan Singh, is
considering a proposal to have a national security fund for workers in the organised and unorganised sectors. A group of ministers is set to meet representatives of trade unions on May 22 to sort out their other demands like a minimum wage of Rs 10,000. For the past more than nine years the government has done little to provide social safety. Now when the Lok Sabha elections are approaching, there is a sudden realisation that workers need a safety net. Workers have suffered the most in recent years due to a relentless rise in the prices of food items, a general slowdown in the economy and poor employment generation. Economic reforms have largely benefited industrialists, who press for the easing of labour laws, which implies more freedom to hire and fire .
In his speech at the Indian Labour Conference on Friday the Prime Minister was more labour-friendly than before. The change in stance is perhaps in view of the coming elections even though, to be fair, the UPA has been stressing on inclusive growth all along. It has launched pro-poor programmes like the rural job guarantee scheme, health missions and an insurance scheme apart from the right to education. It is also pushing for food security and direct benefit transfers, which should be in place before the elections.
The problem, however, is cash. The government treasury is already under strain. Foreign companies are threatening a rating downgrade if there is a further deterioration in the fiscal and current account deficits. The food security Bill is the government's first priority. The proposal for a social security fund, therefore, may remain on paper or it may be too small to make any significant impact. Industrialists and economists often challenge the wisdom behind the schemes that encourage entitlements. Funds that can be spent on productive projects to generate employment are diverted to politically motivated freebies. The Congress has elections to win and the government has a bleeding treasury to manage. It is not hard to guess which side will prevail ultimately.
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