Dealing with labour issues has always remained a Herculean task for Indian companies. Ask any factory owner from any part of the country and the majority will rank it as one of the biggest obstacles. Scores of central and state laws to comply with, dozens of forms to fill out, many strange-sounding norms to adhere to and the too powerful labour inspectors to keep satisfied . . . all play a major role in this curse. But now things may change a bit, with the government last week introducing a string of labour reforms,

These welcome measures, clubbed under an umbrella programme, Pt. Deendayal Upadhyay Shramev Jayate Karyakram, include a web portal which will be operative in four central organizations: Chief Labour Commissioner, Directorate General of Mines Safety, Employment Provident Fund, and Employees' State Insurance Corporation. For on-line registration, 6 lakh units in the country will be allotted a unique identification. Using this portal, the business units will be able to file self-certified and single on-line return for 16 out of 44 central laws.

In terms of labour inspection, under the new scheme a computer will now determine where an inspection will be carried out the next day and a factory inspection report will have to be loaded on-line within 72 hours (it cannot be modified thereafter). Needless to say, these measures will take away the discretionary powers of the inspectors, making the inspection process transparent. In addition, the government has also tried to reach out the employees by introducing easy portability for provident fund users and converging social security benefits on Rashtriya Swasthya Bima Yojana smart card. A scheme for training apprentices was also launched.

There is no doubt that these changes are too little to be sufficient. Critics point out that the government has plucked only some low hanging fruits, leaving the tougher issues unaddressed. Some of them also view that the reform measures will make little difference as long as the states do not respond to them. Truth is there in these views, but still it cannot be denied that these are some very positive changes and among the first to be attempted in over 50 years. I hope these first steps taken forward will be the beginning of bigger and even better things in the coming days.

I invite your opinions. I'd also like to take this opportunity to wish you all a happy and prosperous Diwali.