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January 12, 2001
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Trade unions flay Maharashtra's new industrial policy

Swati Kulkarni in Bombay

Trade unions, including ones affiliated to the alliance partners of the Democratic Front government in Maharashtra, are up in arms over its new industrial policy, which was unveiled late on Thursday evening.

Accusations ranging from 'downright sellout to the MNCs' to 'betrayal of workers' have been levelled against the DF government for its policy which seeks to give boost to industrial growth, especially the information technology and bio-technology sectors.

State Chief Minister Vilasrao Deshmukh, after holding a two-day 'brainstorming' meeting of his cabinet, announced the new industrial policy.

In doing so, he announced the government's decision to amend chapter 5 (b) of the Industrial Disputes Act and the Contract Labour Act.

The proposed amendments seek to provide sweeping powers to the employers to adopt the 'hire and fire policy' and close down their industries without seeking the government's permission.

Hitherto industries and units employing a staff of 100 workers had to seek the government's permission to close down the unit. The government has raised the limit to 300 workers and besides that added that the owners will not be required to ask permission from the government to close down their units. The decision has virtually sparked off an angry protest from the trade unions.

Veteran Janata Dal (Secular) leader and ex-MP, Mrinal Gore described the policy as one which would further fuel unemployment. Gore said: "On the one hand, the government talks big about generating employment, while on the other hand it is creating unemployment."

Gore's party happens to be one of the constituents of the ruling DF government.

However, senior Peasants and Workers Party leader Prof N D Patil refused to comment upon the cabinet decision. He said that he would rather wait for the official transcript of the decision and then make any comment.

P R Krishnan, secretary, Centre for Indian Trade Unions, described the decision as 'regrettable'.

He said" "The government had sold itself off under pressure from multinationals and industrialists.

Veteran trade union and senior Shiv Sena leader Dattaji Salvi also termed the decision as 'deplorable'. An agitated Salvi remarked: "This DF government has lost its wits. The government's paramount interests should be to protect the workers' rights first. They have no moral right to continue in power."

A D Golandaz dubbed the government's decision 'disturbing'. "No sooner had the decision been made public than several trade unions contacted me and expressed their eagerness to go on a flash strike. We will discuss the implications of the decision at the meeting of all trade unions to be held on January 16," he informed.

Dr Lionel Fernandes, Reader in International Politics at the Bombay University, described the DF government's decision an exercise to reverse socialism propounded by the Congress itself five decades ago. In his reaction Fernandes further said: "The government appears to have lost all its senses. It is a heartless decision. Instead of devising new ways to cut costs, tighten its own belt, the government has gone in for closing textile mills, retrench workers and such unpopular measures."

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