On The Job Training

Services firms to hire at least 2.5% of their workforce as apprentices

Now, industry has told the government it could do more to train India’s youth on-the-job if the legal regime that includes penal provisions such as imprisonment up to six months for violations, was eased. Firms outside the services sectors are ready to offer apprenticeships to train youth of at least 5% of their total workforce and have proposed a cap of 10% so that the option is not abused. The 10% cap would discourage companies from recruiting abnormally high number of apprentices instead of regular workers with a possibility of using them as cheap labour.

The industry’s proposals steered by the Confederation of Indian Industry (CII) have got the backing of Prime Minister Manmohan Singh’s advisor on Skills S Ramadorai.

These expansions in apprenticeship capacity would need a change in the rules that allow the government to set the number of training seats for each trade in each firm.

Amendments to the law, proposed since 2009, have been held up in inter-ministerial conflicts. In December 2012, it was decided that the Ramadorai may attempt to rewrite the law from scratch, but the idea now seems to have been shelved and the labour ministry has been asked to try and move forward on issues where a consensus is feasible.

Industry has sought that clauses that make promoters and managers liable for imprisonment for non-compliance with the rules be dropped and sweeping inspection powers be moderated. This creates unnecessary apprehension and bitterness, forcing companies to stay away from apprenticeships altogether and inspections could be done on a limited ‘sample basis.’

The labour ministry has also been urged to drop the restrictions that prevent firms from deploying apprentices from outside their state limits and the mandated in-house training infrastructure. If a company outsources training of its own employees, it should be allowed to train apprentices outside too, industry has pointed out.

On the low stipends paid to apprentices, India Inc has said that they must be linked to the minimum wages for each trade at the state level, with the stipend starting at 60% of such wages in the first year of training going up to 90% in the fourth year.

Click to download the Apprentice Act of 1961

Source: The Economic Times

Saying Yes to Affirmative Action the India Inc Way

Affirmative Action for the Scheduled Castes and Scheduled Tribes communities is defined as a voluntary commitment by Indian companies to help the Government and civil society in the national endeavour to ensure equal opportunity to members of the Scheduled Castes and Scheduled Tribes communities.

The code of conduct adopted by CII members states that the industry would discourage conscious discrimination in any form, give preference in selection of business partner to socially disadvantaged sections, upgrade skills and provide continuous training to the employees belonging to the socially disadvantaged sections of society. The companies will also partner with educational institutions to support and aid students from the Scheduled Castes and Scheduled Tribes.

Corporate India is thinking out of the box to fulfill the government’s affirmative action agenda of ensuring inclusive growth through sustainable livelihoods for the weaker sections of society. Read about the two PPP strategies that could change the discourse on affirmative action between government and industry!

CII’s agenda is to accelerate economic (GDP) growth to 6 – 6.5 percent this year and to take it to 8.5 – 9 percent as quickly as possible

The drivers for growth would be reforms and governance, inclusive growth and affirmative action, innovation, entrepreneurship and growth of MSMEs and transformation of sectors: S Gopalakrishnan, President CII

India ranks 132nd among 185 countries on the parameter of ‘ease of doing business’; this needs to be improved: S Gopalakrishnan, President CII &  Co-Founder and Executive Co-Chairman, Infosys Limited

CII Members’ Interactive Meet with Mr S Gopalakrishnan, President CII took place here today. Addressing the meet, Mr Gopalakrishnan, informed the audience that CII theme for 2013-14 is “Accelerating Economic Growth through Innovation, Transformation, Inclusion and Governance”. He said, “Our agenda is to accelerate economic (GDP) growth to 6 – 6.5 percent this year and to take it to 8.5 – 9 percent as quickly as possible. “ He further added, “The drivers for growth would be reforms and governance, inclusive growth and affirmative action, innovation, entrepreneurship and growth of MSMEs and transformation of sectors.” On the front of reforms and governance, he highlighted that the World Bank Report indicates that India ranks 132nd among 185 countries on the parameter of ‘ease of doing business’. This needs to be improved. Further, FDI should be encouraged wherever applicable in a phased manner. With reference to GST implementation, he also informed that it has been a top priority of CII to play an active role in creating the right atmosphere. He also highlighted that CII has been active on facilitating distribution reforms in power sector, model APMC Act, leveraging technology for strengthening MSMEs, the Companies Bill, Land Acquisition Bill, etc.

Mr S Gopalakrishnan also briefed the members on CII’s efforts towards the inclusive growth agenda. He informed that CII has already engaged with Dalit Chamber of Commerce and also been active on skill building and employment of marginalized sectors. On the front of innovation and entrepreneurship, CII efforts are on to popularize the job portal http://www.thefairjob.com linking industry with job seekers from marginalized sections. In transformation of sectors, President CII informed that this year CII would be starting a three year project called Project Village Budha which would be targeted to implement the idea of Kaizens (small improvements) in a village environment. Further, ‘Visionary Leaders for Manufacturing Programme’ of CII would help 100 top MSMEs to improve on their current size and status. Mr Gopalakrishnan, concluded his remarks by saying, “We will also continue our focus on global engagement and sustainability.”

Proposal to allow ‘Put’ & ‘Call’ Options in Shareholders’ agreements would boost foreign investment into the country

CII welcomes the decision taken by the Government to allow incorporation of ‘call’ and ‘put’ options in shareholders’ agreement. The proposal to remove restrictions on using options in shareholders’ pact for M&A and PE transactions would encourage inflow of foreign investment into the country. This was one of the key impediments to FDI flow into the infrastructure sector.

The clearance from the Law Ministry would pave the way for an amendment to be moved to the Securities Contracts (Regulation) Act, against the proposal initially moved by SEBI. Industry has been seeking an amendment to SCRA to allow put and call options not only to offer an opportunity to investors, especially foreign investors, to hedge their risks but also put to rest any doubts regarding the use of options. Overseas investors and lenders may be willing to consider short to medium term lock in periods of 3 to 5 years if put option from the resident promoters are allowed.