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State plans halt on fiscal aid to workers of locked-out units

By Unregistered Visitors, Section Jobs Wanted/Available
Posted on Sat Mar 03, 2007 at 03:02:14 AM EST

After beginning the second phase of reform programme to restructure sick Public Sector Undertakings (PSUs), the state government is all set to make another move to stop the drain on the state exchequer. The government has decided to discontinue monthly financial assistance of Rs 500, paid to about 40,000 workers of private factories that have been shut down across the state.

The scheme was launched in 1998, and is reported to cost the government Rs 2 crore every month.

The proposal, cleared by the PSU department, is now pending with the Finance department for its green signal.

According to the new scheme, these out-of-job workers would be given health insurance coverage and put under "re-skilling programme" of the Social Safety Network Programme (SSNP), an agency under the state government's PSU department.

"Paying financial assistance and bringing workers under SSNP are separate issues," Subesh Das, principal secretary, Labour department, told Newsline. "But we think the state government cannot go on spending money on allowance for an indefinite period."

What scheme entails

Stop Rs 500 monthly aid to out-of-work factory hands after lockout
Give workers health insurance cover and training to raise employability
Govt expects to save Rs 2-cr monthly drain on state exchequer

The SSNP is at present engaged in imparting vocational training to workers of 33 restructured PSUs as part of the first phase of reform programme. Each worker gets an insurance cover of Rs 1 lakh, and the vocational training is a way to help them eke out a living after losing job. Each worker gets a daily allowance of Rs 30 during the 100-day training period.

While the state government bears the expenses on insurance cover, DFID of the British government finances the training programme, though the state government bears the entire cost for out-of-job private workers.

Meanwhile, CITU leader Kali Ghosh told Newsline that the trade union would "welcome" the government's move. "The government has discussed the scheme with us, and we also discussed whether this financial assistance can be given for an indefinite period," Ghosh said. "We welcomed it, though we hope the government will discuss it with us again before it stops payment (of financial assistance to workers)."

Source- http://cities.expressindia.com/fullstory.php?newsid=224950

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