Indian unions fight labour reforms

Indian labour unions taking their grievances to the streets

Indian trade unions have held the first in a series of protests against new 'hire-and-fire' labour laws, unveiled in the new budget.

More than 1,000 workers gathered in front of the parliament in New Delhi on Friday, waving placards and chanting slogans.

Joblessness becomes the state policy in a country of millions and mounting unemployment

AIBEA union

"Prime-Minster Atal Behari Vajpayee should resign for succumbing to World Trade Organisation pressure and changing the labour laws," said one banner.

Under the reforms, firms employing up to 1,000 people will no longer need government consent to lay-off workers.

Previously the threshold was 100 workers.

"The entire budget is unemployment oriented. It virtually gives the right to hire and fire," G.L. Dhar, secretary of the All India Trade Union Congress said.

New laws

Finance Minister Yashwant Sinha unveiled the overhaul of the labour laws in his new budget on Wednesday.

He also proposed changes to make it easier for companies to outsource work and hire on contract.

Unions say this is an erosion of their traditional rights and they will fight the changes.

"Joblessness becomes the state policy in a country of millions and mounting employment," the All India Bank Employees' Association (AIBEA) said in a statement.

'No going back'

Mr Sinha has also vowed to push forward with the privatisation of all private sector units except those catering for "strategic national interest".

"We'll make no distinction between profit and loss-making enterprises for privatisation. We are prepared to take any risk for what we think is correct for the economy,'' he said at a post-budget meeting.

The finance minister has appealed for the support and co-operation of the country's business community to help him carry out the reforms, but critics are warning that he is heading for a collision course with the unions.