In a report, a working group of the Textile Ministry has termed labour laws as a major hindrance in the growth of the clothing and apparel sectors.
It has, therefore, called for liberalising labour laws by allowing contract labour in export-dominated units, permitting companies to hire or sack workforce according to demand and increase the number of working hours.
The group has also recommended that Section 10 of the Contract Labour (Regulation and Abolition) Act, 1970 should be modified to exclude textile units engaged in export related activity. This will allow outsourcing of labour force and contract-base appointments. The recommendations are in line with the International Labour Organisation Convention on Termination of Employment.
The report also urges the government to consider demand of sections of textile industry and garment sector to extend working hours from a nine-hour shift at present to 12 hours. It also wants to increase the overall working hours in a week from 48 to 60. The group said that this would enable textile units to meet peak season demands.
It further said that textiles and clothing sector should adopt the National Employment Guarantee Act, 2005 in a big way as this sector can provide 100 days' guaranteed employment at an average rate of Rs 60 per day.