In a recent meeting chaired by Union Labour Minister Mansukh Mandaviya, representatives from central trade unions shared their diverse opinions on the newly announced Employment Linked Incentive (ELI) schemes. While some unions voiced support for the initiatives, others raised concerns and called for modifications.
Mixed Reactions from Trade Unions
The ELI schemes, aimed at boosting employment, received a range of feedback from the trade unions. Amarjeet Kaur, General Secretary of the All India Trade Union Congress (AITUC), expressed skepticism about the effectiveness of the schemes. She argued that the proposed Rs 15,000 employment subsidy, distributed in three installments to new employees, might only adjust the compensation packages offered by companies rather than genuinely increase wages. Additionally, Kaur highlighted concerns about the Rs 3,000 monthly contribution to provident fund subscriptions, which is directly funded by the government and benefits employers more than workers.
On the other hand, Deepak Jaiswal, President of the National Front of Indian Trade Unions (NFITU), offered a more positive outlook. He viewed the schemes as a “positive” step toward job creation. Jaiswal acknowledged the schemes might not be perfect but emphasized that they represent an effort towards worker welfare. He recommended developing robust regulatory mechanisms to ensure the funds are utilized effectively and to prevent misuse.
Concerns Over Potential Misuse
Tapan Sen, General Secretary of the Centre of Indian Trade Unions (CITU), was critical of the schemes, suggesting that they mainly serve to subsidize labor costs for corporations rather than benefiting workers. He referenced a previous initiative, the Atmanirbhar Bharat Rojgar Yojana (ABRY), which, according to him, only aided employers and lacked proper auditing to identify the real beneficiaries.
An anonymous participant at the meeting also expressed concerns that the ELI schemes might essentially act as subsidies for both domestic and foreign corporations, funded by the national treasury.
Government’s Stance
In response to the criticism, the Labour Ministry issued a statement defending the ELI schemes. They emphasized that the schemes are designed to encourage businesses to create more jobs and provide sustainable employment opportunities for the youth. The statement also noted that Minister Mandaviya values the feedback from trade unions to ensure the schemes serve the interests of all stakeholders.
The debate highlights a need for ongoing dialogue and adjustments to the ELI schemes to address the concerns of various stakeholders and ensure the intended benefits reach the workers they aim to support.
