Apprenticeship Act should be tweaked to suit all establishments
Updated: Aug 02, 2014 12:08:20pm
New Delhi, Aug 2 (KNN) While complimenting the government's initiatives to push through labour law reforms on the proposed amendments to the Apprentices Act, 1961, industry body FICCI feels that the coverage of the existing Apprenticeship Act is limited.
“This is so as it is applicable to only 27,000 establishments with a seating capacity of approximately 4,60,000 whereas the country has more than 30 million registered and unregistered establishments,” a press release said.
FICCI is of the view if the scheme is simplified and tweaked to suit every establishment - big or small, formal or informal and manufacturing or service - and encourages employers to engage apprentices, it will reduce dependence on institutional skill development efforts, saving valuable resources.
In a detailed submission to Union Labour and Employment Secretary, Gauri Kumar, Secretary General, FICCI, A Didar Singh, has suggested that engaging apprentices in the production processes should be encouraged for 'hands-on' training and it should not always be branded as 'substitution of cheap labour, for it improves the quality of training.
In the Swiss System of Vocation Training, the trainees start giving 20 per cent production of a normal skilled worker in the 1st year, which increase to 75-80 per cent by the time the trainee reaches the 3rd year of his training.
Singh appreciated the ministry's initiative to restructure the apprentices system in the country which is a key to narrow down the gap between skills and jobs, secure full involvement of industry in skill development and promote employability of youth. "We are sanguine, the efforts will be successful, writing a new chapter in the history of skill development initiatives in the country," he noted.
The following are FICCI's views on the various issues in the proposed amendments to the Apprentices Act.
Issue No.1: Simplify workflow for Establishment while engaging Apprentices
It would certainly help pan Indian employers to engage Apprentices, therefore, FICCI welcomes it.
Issue No. 2: Change in the definition of Worker
Since, contractual workers are mostly engaged in the unskilled jobs, their strength in any department can't be taken to determine the seats for Apprentices in any skilled trade.
Issue No.3: Trade-wise and Unit-wise deployment of Apprentices in the services and informal sector
FICCI welcomes the proposal to remove the restriction of determining the trade wise strength of Apprentices.
Issue No.4: Government Regulation on addition of new trades
FICCI welcomes allowing an employer to start Apprenticeship Training suo-moto even in non-designated/new trades which are available in his enterprise. However, FICCI strongly feels that keeping in view the dynamics of business, employers should also be allowed to discontinue/modernize training in such trades, as and when, the situation so demands.
Issue No.5: Expanding the scope of Apprenticeship
FICCI is of the view that training in certain trades where the employer feels it appropriate to admit even school drop outs or persons with only primary education, keeping in view the nature of jobs/trades, he may be allowed to engage such Apprentices without any restriction. This will help imparting apprentice training to the targeted or priority group as 50 percent students drop out before they reach 8th class.
Issue No.6: Qualification and age requirement:
FICCI welcomes this provision.
Issue No.7: Payment of Stipend to Apprentices
Keeping in view the marginal financial viability of the MSME sector which is the major employer, FICCI strongly feels that the following structure for sharing stipend paid to the Apprentices be adopted.
(I) Industrial Units/ Establishments where investment is up to 25 crore of Rupees. .......................Government should bear/reimburse the entire amount of stipend.
(ii) Industrial units/establishments where investment is between Rs. 25 to 50 crore. ...........3/4th stipend to be borne by the Government.
(iii) Industrial units/Establishments where investment is between Rs. 50 crore to 100 crore ...................1/2 stipend to be born by the Government.
(iv) Industrial units/establishments where investment is more than 100 crore or more........... the entire amount of stipend to be borne by the employer.
However, FICCI supports the suggestion with regard to the amount of stipend to be paid to the trainees.
Issue No.8: Offences and Penalties
FICCI widely appreciates the proposal to remove the penalty of imprisonment for not filling the quota of apprentices by an establishment and substituting it by pecuniary fine.
Issue No.9: Power of Inspection
Since the word inspector carries with it a psychological fear, the concerned staff should be re-designated as 'Apprentice Counsellor'.
Issue No. 10: Web based Apprenticeship Portal
In remote/rural areas the smaller establishments may not have internet facilities or skilled people to handle internet, therefore, loading information on portal should be optional.
Issue No.11: Registration of Contract
FICCI welcomes the proposed flexibility with regard to the registration of contracts of Apprentices.
Issue No. 12: Duration of Apprenticeship
FICCI welcomes the proposed flexibility. However, we feel that in non-designated trades, the concerned employer should be allowed to fix the duration of the Apprenticeship period in a particular trade.
Issue No.13: In-house Training infrastructure
'Apprenticeship training' scores over the 'institutional training' as the former is a 'hands-on training' where the trainee learns on real working situations. Out sourcing Apprentice training to organisations not having adequate training facilities may compromise the quality of training. Instead, taking Apprentice training as a national cause, Government may consider providing adequate subsidy on training equipment, machinery, tools and other resources. Secondly, to prevent the chances of outsourcing, engagement of Apprentices by industry should be based on realistic capacities.
Issue No.14: Holidays, leaves, and shift working hours for Apprentices
FICCI fully supports the proposal that Apprentices should be treated at par with other workers so far holidays, leaves and shift working hours are concerned.
Issue No. 15: Apprentices from outside the state
We welcome the provision to allow engaging Apprentices even from outside the state.
Issue No. 16: Preference to Apprentices for employment
FICCI welcomes the proposal to allow organisations to frame their own recruitment policies.
Issue No.17: Examination
FICCI welcomes the proposed flexibility in sitting for the examination and getting the National Apprenticeship Certificate (NAC) by the Apprentices.
However, efforts should be made to develop and recognize sectoral certification that will bring quality improvement of the Apprentice training leading to better employment prospects of trainees, FICCI has pointed out. (KNN Bureau)
“This is so as it is applicable to only 27,000 establishments with a seating capacity of approximately 4,60,000 whereas the country has more than 30 million registered and unregistered establishments,” a press release said.
FICCI is of the view if the scheme is simplified and tweaked to suit every establishment - big or small, formal or informal and manufacturing or service - and encourages employers to engage apprentices, it will reduce dependence on institutional skill development efforts, saving valuable resources.
In a detailed submission to Union Labour and Employment Secretary, Gauri Kumar, Secretary General, FICCI, A Didar Singh, has suggested that engaging apprentices in the production processes should be encouraged for 'hands-on' training and it should not always be branded as 'substitution of cheap labour, for it improves the quality of training.
In the Swiss System of Vocation Training, the trainees start giving 20 per cent production of a normal skilled worker in the 1st year, which increase to 75-80 per cent by the time the trainee reaches the 3rd year of his training.
Singh appreciated the ministry's initiative to restructure the apprentices system in the country which is a key to narrow down the gap between skills and jobs, secure full involvement of industry in skill development and promote employability of youth. "We are sanguine, the efforts will be successful, writing a new chapter in the history of skill development initiatives in the country," he noted.
The following are FICCI's views on the various issues in the proposed amendments to the Apprentices Act.
Issue No.1: Simplify workflow for Establishment while engaging Apprentices
It would certainly help pan Indian employers to engage Apprentices, therefore, FICCI welcomes it.
Issue No. 2: Change in the definition of Worker
Since, contractual workers are mostly engaged in the unskilled jobs, their strength in any department can't be taken to determine the seats for Apprentices in any skilled trade.
Issue No.3: Trade-wise and Unit-wise deployment of Apprentices in the services and informal sector
FICCI welcomes the proposal to remove the restriction of determining the trade wise strength of Apprentices.
Issue No.4: Government Regulation on addition of new trades
FICCI welcomes allowing an employer to start Apprenticeship Training suo-moto even in non-designated/new trades which are available in his enterprise. However, FICCI strongly feels that keeping in view the dynamics of business, employers should also be allowed to discontinue/modernize training in such trades, as and when, the situation so demands.
Issue No.5: Expanding the scope of Apprenticeship
FICCI is of the view that training in certain trades where the employer feels it appropriate to admit even school drop outs or persons with only primary education, keeping in view the nature of jobs/trades, he may be allowed to engage such Apprentices without any restriction. This will help imparting apprentice training to the targeted or priority group as 50 percent students drop out before they reach 8th class.
Issue No.6: Qualification and age requirement:
FICCI welcomes this provision.
Issue No.7: Payment of Stipend to Apprentices
Keeping in view the marginal financial viability of the MSME sector which is the major employer, FICCI strongly feels that the following structure for sharing stipend paid to the Apprentices be adopted.
(I) Industrial Units/ Establishments where investment is up to 25 crore of Rupees. .......................Government should bear/reimburse the entire amount of stipend.
(ii) Industrial units/establishments where investment is between Rs. 25 to 50 crore. ...........3/4th stipend to be borne by the Government.
(iii) Industrial units/Establishments where investment is between Rs. 50 crore to 100 crore ...................1/2 stipend to be born by the Government.
(iv) Industrial units/establishments where investment is more than 100 crore or more........... the entire amount of stipend to be borne by the employer.
However, FICCI supports the suggestion with regard to the amount of stipend to be paid to the trainees.
Issue No.8: Offences and Penalties
FICCI widely appreciates the proposal to remove the penalty of imprisonment for not filling the quota of apprentices by an establishment and substituting it by pecuniary fine.
Issue No.9: Power of Inspection
Since the word inspector carries with it a psychological fear, the concerned staff should be re-designated as 'Apprentice Counsellor'.
Issue No. 10: Web based Apprenticeship Portal
In remote/rural areas the smaller establishments may not have internet facilities or skilled people to handle internet, therefore, loading information on portal should be optional.
Issue No.11: Registration of Contract
FICCI welcomes the proposed flexibility with regard to the registration of contracts of Apprentices.
Issue No. 12: Duration of Apprenticeship
FICCI welcomes the proposed flexibility. However, we feel that in non-designated trades, the concerned employer should be allowed to fix the duration of the Apprenticeship period in a particular trade.
Issue No.13: In-house Training infrastructure
'Apprenticeship training' scores over the 'institutional training' as the former is a 'hands-on training' where the trainee learns on real working situations. Out sourcing Apprentice training to organisations not having adequate training facilities may compromise the quality of training. Instead, taking Apprentice training as a national cause, Government may consider providing adequate subsidy on training equipment, machinery, tools and other resources. Secondly, to prevent the chances of outsourcing, engagement of Apprentices by industry should be based on realistic capacities.
Issue No.14: Holidays, leaves, and shift working hours for Apprentices
FICCI fully supports the proposal that Apprentices should be treated at par with other workers so far holidays, leaves and shift working hours are concerned.
Issue No. 15: Apprentices from outside the state
We welcome the provision to allow engaging Apprentices even from outside the state.
Issue No. 16: Preference to Apprentices for employment
FICCI welcomes the proposal to allow organisations to frame their own recruitment policies.
Issue No.17: Examination
FICCI welcomes the proposed flexibility in sitting for the examination and getting the National Apprenticeship Certificate (NAC) by the Apprentices.
However, efforts should be made to develop and recognize sectoral certification that will bring quality improvement of the Apprentice training leading to better employment prospects of trainees, FICCI has pointed out. (KNN Bureau)
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