Tamil Nadu: Government declares auto component industry public utility
26 June 2019: The Tamil Nadu government has declared auto component industry as public utility through a Government Order (G.O) valid for 6 months. The G.O has been promulgated in the backdrop of the successful strikes in auto component manufacturing sector in and around Chennai. Workers are now mandated to serve strike notice 6 weeks in advance and cannot strike if conciliation process commences. Strikes cannot take place during the pendency of the conciliation nor until 7 days post conclusion.
Central Government cuts contribution rate to Employees State Insurance (ESI)
13 June 2019: Effective from 1 July, rates for contributions to ESI have been reduced from 6.5% to 4% resulting in overall depletion of funds for the scheme. Employer’s contribution has been cut from the existing 4.75% to 3.25% and that of the employees from 1.75% to 0.75%. The move will adversely impact 12.87lakh workers who are currently covered under the scheme.
Maharashtra: Government Committee finds numerous cases of bonded labour in IT industry
11 June 2019: Taking cognizance of news reports, Maharashtra government constituted a committee to look into the numerous cases of bonded labour existing in IT companies in the state. The committee found that IT companies were withholding severance pay of laid-off workers and enforcing ‘unfair’ bond terms on new employees. The committee also found that a small portion of employees’ salaries were kept as deposits and employees were fined ₹75,000 to ₹1 lakh as penalty for resigning before the completion of their bond term.
The committee has directed the labour department to order IT companies to return employee’s original documents within 30 days and issue notices to IT companies against whom complaints were received.
Andhra Pradesh: ASHA workers get 300% wage hike
3 June 2019: Government has hiked the honorarium for ASHA workers employed by medical and health departments from the existing ₹3,000 to ₹10,000 per month. The wage hike will be applicable from 1 June 2019 benefitting around 40,000 workers.
