Exporters seek hike in cap on overtime hours for workers

Vijay C Roy

Tribune News Service

Chandigarh, January 17

In 2013, an inter-ministerial panel appointed by the Centre to suggest measures for enhancing exports, suggested more overtime hours for workers employed in the MSME sector by amending the existing laws.  More than five years have lapsed but the suggestion is still on papers, affecting the exporters dependent on migrant workers.

The current rules provide for overtime of 50 hours in a quarter (three months) while the International Labour Organisation  provides for the upper limit of 144 hours. 

According to the industry, the current overtime limit is a stumbling block in exports because at times they find it difficult to meet exports commitment due to shortage of time. 

“We are dependent on migrant workers from Bihar and UP.  They have come to earn money. But even if they are willing to work extra, we can’t force them,” said a Ludhiana-based exporter.

Industry officials claimed that many workers are leaving factories as they don’t find it lucrative any more to work here. The minimum wages for unskilled, semi-skilled and skilled workers are between Rs 8,000 and Rs 11,000 in Punjab and Haryana. 

Punjab and Haryana have over 3 lakh MSMEs, predominantly in the manufacturing sector, employing lakhs of migrant workers.

“An unskilled migrant worker with a family finds it difficult to sustain on minimum wages, so they wish to work for extended hours. The need of the hour is the government must increase the overtime working hours. It would not only be beneficial to the industry but will also provide an opportunity for workers to earn more,” said Federation of Punjab Small Industries Associations president Badish Jindal. 

“Overtime is only an opportunity. It should not be mandatory for all workers. The workers should be given liberty to decide as it is an incentive to get double wages,” said an official in the Labour Department. 

Aimed at boosting job creation in the manufacturing sector and facilitating ease of doing business, the Lok Sabha had also approved a Bill in 2016 to double the overtime working hours to 100 per quarter for factory workers, but the Bill could not become an Act. 

Present norms
Overtime ceiling

• 50 hours per quarter Industry’s suggestion
• 100 hours per quarterAffected industries 
• Exporters engaged in manufacturing sector

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