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India mulls ‘One Nation, One Pay Day' system

There should be a pan-India single wage day every month across various sectors to ensure that workers get timely payment of salaries.

Santosh Gangwar
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Published : Nov 15, 2019, 6:58 PM IST

Updated : Nov 25, 2019, 5:32 PM IST

New Delhi: To safeguard the interest of workers informal sector, particularly working-class, the Centre is planning to introduce ‘One Nation, One Pay Day' system, Labour Minister Santosh Gangwar said on Friday.

“There should be a pan-India single wage day every month across various sectors to ensure that workers get timely payment of salaries. Prime Minister Narendra Modi is keen on this legislation to get passed soon. Similarly, we are also looking at uniform minimum wages across sectors which will safeguard the better livelihood of workers,” said Gangwar addressing at ‘Security Leadership Summit 2019' organised by the Central Association of Private Security Industry (CAPSI).

The central government is in the process of implementing Occupational Safety, Health and Working Conditions (OSH) Code, and Code on Wages. Parliament has already passed the Code on Wages and rules are being framed for its implementation.

Santosh Gangwar addressing at ‘Security Leadership Summit 2019' organised by the Central Association of Private Security Industry
Santosh Gangwar addressing at ‘Security Leadership Summit 2019' organised by the Central Association of Private Security Industry

The OSH Code was introduced in the Lok Sabha on July 23, 2019. The Code will streamline the private sector by enhancing the coverage of workers manifold by merging 13 central labour laws relating to safety, health and working conditions into a single code.

The OSH Code has many new initiatives like mandatory issues of appointment letter by employers, annual free medical check up of workers and broadening coverage of all type of workers in the country under it.

Gangwar mentioned that since taking the office in 2014, the Modi government has consistently worked on reforming labour laws.

“We have taken up 44 complex labour laws to reform them. We are talking to all stakeholders to make these laws more effective and useful.

"Similarly, we are preparing a ‘Single Page' mechanism for various sectors to complete various compliances to ensure ease of doing business. We are also preparing an online system of all grievance redressal to ensure that all problems are resolved with 48 hours without any physical interface,” said Gangwar.

Underlining the role of the private security industry as a major job creator today, Gangwar said the sector employs around 90 lakh people at present, which has the potential to go up to 2 crores in the next few years.

He also said the prime minister is keen to ensure the growth of the sector.

“Mr Modi is keen to ensure that all those working in the unorganized sector should get a pension of Rs 3,000 per month besides getting medical coverage. We have introduced various attractive pension schemes for the working class. We will introduce more schemes in future to ensure better social security of those working in the unorganised sector and also labour class,” Gangwar added.

Read more: Kerala Bank to protect cooperative banks in the state

New Delhi: To safeguard the interest of workers informal sector, particularly working-class, the Centre is planning to introduce ‘One Nation, One Pay Day' system, Labour Minister Santosh Gangwar said on Friday.

“There should be a pan-India single wage day every month across various sectors to ensure that workers get timely payment of salaries. Prime Minister Narendra Modi is keen on this legislation to get passed soon. Similarly, we are also looking at uniform minimum wages across sectors which will safeguard the better livelihood of workers,” said Gangwar addressing at ‘Security Leadership Summit 2019' organised by the Central Association of Private Security Industry (CAPSI).

The central government is in the process of implementing Occupational Safety, Health and Working Conditions (OSH) Code, and Code on Wages. Parliament has already passed the Code on Wages and rules are being framed for its implementation.

Santosh Gangwar addressing at ‘Security Leadership Summit 2019' organised by the Central Association of Private Security Industry
Santosh Gangwar addressing at ‘Security Leadership Summit 2019' organised by the Central Association of Private Security Industry

The OSH Code was introduced in the Lok Sabha on July 23, 2019. The Code will streamline the private sector by enhancing the coverage of workers manifold by merging 13 central labour laws relating to safety, health and working conditions into a single code.

The OSH Code has many new initiatives like mandatory issues of appointment letter by employers, annual free medical check up of workers and broadening coverage of all type of workers in the country under it.

Gangwar mentioned that since taking the office in 2014, the Modi government has consistently worked on reforming labour laws.

“We have taken up 44 complex labour laws to reform them. We are talking to all stakeholders to make these laws more effective and useful.

"Similarly, we are preparing a ‘Single Page' mechanism for various sectors to complete various compliances to ensure ease of doing business. We are also preparing an online system of all grievance redressal to ensure that all problems are resolved with 48 hours without any physical interface,” said Gangwar.

Underlining the role of the private security industry as a major job creator today, Gangwar said the sector employs around 90 lakh people at present, which has the potential to go up to 2 crores in the next few years.

He also said the prime minister is keen to ensure the growth of the sector.

“Mr Modi is keen to ensure that all those working in the unorganized sector should get a pension of Rs 3,000 per month besides getting medical coverage. We have introduced various attractive pension schemes for the working class. We will introduce more schemes in future to ensure better social security of those working in the unorganised sector and also labour class,” Gangwar added.

Read more: Kerala Bank to protect cooperative banks in the state

Intro:Body:

New Delhi, Nov 15 (IANS) As the Supreme Court on Friday set aside the NCLAT ruling on Essar Steel that provided for equal distribution of proceeds between financial and operational creditors, decks have been cleared for ArcelorMittal's acquisition of the bankrupt steel company.



The development comes as a major success for the still-nascent insolvency mechanism of India.



Industry sources also say that the banks have made a recovery of nearly 90 per cent in the resolution of Essar Steel, way higher than the recovery made by them in other IBC (Insolvency and Bankruptcy Code) cases, that is on an average, about 40-50 per cent.



Commenting on the judgement, an ArcelorMittal spokesperson said: "We are very pleased with the judgment that our resolution plan has been approved. We look forward to the closing of the acquisition soon."



The Supreme Court has in July ruled a status quo on the sale of Essar Steel to ArcelorMittal, as it admitted the appeals by Essar Steel lenders and ArcelorMittal challenging the order of the National Company Law Appellate Tribunal (NCLAT). A consortium of lenders led by the State Bank of India (SBI) had moved the apex court against the NCLAT order that claimed Essar Steel's operational creditors have to be treated on par with financial creditors at the time of settling claims in the deal.



Essar Steel is under a debt of Rs 30,030 crore to financial creditors and Rs 11,969 crore to operational creditors. Several banks, both public and private, are the financial creditors of Essar Steel while its operational creditors are vendors and suppliers.



The Essar insolvency case which is among the first 12 cases to be referred by the Reserve Bank of India (RBI) for resolution and the the resolution process faced a several hurdles as Essar promoter Prashant Ruia also tried to bid for the company and also appealed to the appellate tribunal for rejection of the ArcelorMittal's Rs 42,000 crore bid.



On July 4, the NCLAT rejected Ruia's plea.



The NCLAT had, however, said that financial creditors are one class of creditors and have to be treated similarly. It also noted that the Committee of Creditors does not have the authority to decide on the distribution of the bid amount, and it is the insolvency resolution professional who will decide on it.



The appellate tribunal also said that distribution of amount to the operational and financial creditors should be be reflected in ArcelorMittal's resolution plan.



The CoC and ArcelorMittal filed in the plea against the NCLAT ruling at the apex court which a bench headed by Justice Rohinton Nariman allowed on Friday and observed that the adjudicating authority and tribunals should not interfere in commercial decisions taken by Committee of Creditors, and if fact, at best ask the CoC to reconsider its decision and balance the interest of all stakeholders.



As per ArcelorMittal's proposal, financial creditors will receive the lion's share.



Post the Supreme Court ruling, operational creditors like Stanchart, and DBS Bank will not be at par with financial creditors on distribution of an insolvent company and that will boost the recoveries of these financial creditors.



The issue saw a keen fight among banks and separately between the financial institutions and Essar Steel's operational creditors who alleged that ArcelorMittal's winning bid did not meet their dues.



ArcelorMittal already won the bid for Essar Steel, having got the approval of NCLT Ahmedabad bench to their Rs 42,000 crore bid.



On Friday, a spokesperson with Essar said: "We wish ArcelorMittal and Nippon Steel the very best on their entry into the Indian market. They are acquiring a world-class facility in a market that has a long runway for growth."



ArcelorMittal had partnered with Nippon Steel Corp for Essar's acquisition.


Conclusion:
Last Updated : Nov 25, 2019, 5:32 PM IST
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