Monday 10 August 2015

Maid in India ?

That is the title of a news-report that appeared in Economic Times ( 06 Aug 2015 )

It seems Central Labour Ministry is about to come out with a ,

" National Policy for Domestic Workers " ,

whose salient provisions could be :

> Hiring of domestic workers only through a Placement Agency

> Employer/Employee to sign a formal Contract , listing " Standard

Practices " (- like , Model Standing Order / Show-cause Notice /

Domestic Inquiry etc ? )

> Placement Agency + 2 Trade Union Reps to be the " Third Parties "

to the contract ( - to be signed before a Labour Commissioner ? )

> Employer will be responsible for :

* Social Security

* Payment of Minimum Wages ( - what about " Annual Bonus " ? )

* Weekly Off

* Maternity Leave of 2 months

* 30 days of Paid Leave per year

* Contribution to ESIS / EPF

* Providing proper accommodation ( - will 1BHK suffice ? )

* Providing Meals ( - if employed by a Govt Officer )

Although not mentioned in the article , I have no doubt that the proposed Policy / Act / Law , will also cover , explicit provisions , covering :

* Detailed " Job Descriptions " for each type of domestic job

* Grades ( Unskilled / Semi Skilled / Highly Skilled , etc )

* Wage / Salary Scales

* Dearness Allowance ( linked to CPI for 100 % neutralization ? )

* House Rent Allowance ( when house is not provided )

* Leave Travel Allowance ( not necessarily , to home town visits ? )

* Children's Education Allowance

* Bachelor's Allowance ( for employees without children ? )

* Outstation Allowance / Travelling Allowance

* " Stay - at - home " Allowance , when employer is on holiday !

* Washing Allowance ( for uniforms to be supplied by Employer )

* Local Conveyance Allowance ( when Scooter is not provided ? )

* Lunch Allowance ( when meals are not provided )

* Shift Allowance ( if required to work in second shift )

* Overtime Wages @ 250 % of normal wages

* Machine Operating Allowance

[ if required to operate domestic appliances such as Grinder/Mixer ,

Dish Washer , Washing Machine , Micro-wave Oven , Gas Stove ,

Vacuum Cleaner , Refrigerator , Pressure Cooker etc ]

* Compensatory Working Allowance

* Casual Leave / Sick Leave / Accident Leave

* Leave without Pay

* Accumulation / Encashment of PL

* Paid Holidays

* Effective Working Hours / Shift Timings

* ID badge / Job Time Card / Clock Punching

* Supply of Uniforms / Safety Shoes / Umbrellas etc

* Providing of Creche ( for Employee's Children )

* A clearly defined / time-bound , Promotion Policy

* Probationary Period / Retirement Age

* Grievance Procedure............... etc

Have I left out any other provision ? Readers are invited to contribute

What could be the implications if this Act is passed ?

# Tremendous increase in corruption

{ Always happens when you pass an " Un-Observable Law " , which gets

broken , a million times a day ! }

# Birth of a " Parallel / Illegal " Employment Market

# Endless litigation ( with great demand for Labour Lawyers ! )

# Huge slowdown in hiring of domestic help , rendering millions of

domestic servants , jobless

# Deterioration of Work Ethics ?

# Huge boost to manufacture of Domestic Appliances ( MakeinIndia ? ),

which may be able to absorb some of the domestic help rendered

jobless - after re-skilling . Making best of a bad bargain !

Does anyone get a sense that we are trying to fix things which do not need

fixing ?

Have we got our priorities , all mixed up ?

And pray , when did you last try to hire a house maid ?

If you too , feel that we should leave this matter to be settled , one-on-one , between the Employer and the Domestic Worker , do forward this blog to :

Shri Bandaru Dattatreyaji, Minister for Labour (bandaru@sansad.nic.in )

Or send your feedback from : www.labour.gov.in

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hemen parekh

11 Aug 2015

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Thursday 6 August 2015

ROMP - A Panacea ?

In past few years , our Lok Sabha has been repeatedly paralyzed by slogan shouting MPs

Perhaps , the past two weeks were the worst in the history of Lok Sabha , with no business conducted

Someone suggested that MPs be made to lose their salaries for this period , following the universally / legally accepted rule : No Work , No Pay

This won't work . Our crore-pati MPs could not care a hoot for loss of pay !

Only thing that might work :

A mobile app called , " ROMP / Recall Our MP " ( Idea for a Start-Up ? )

Only voters who qualify as follows , will be permitted to use this App , in order to recall an MP :

* He must be on Electoral Roll

* He must have actually voted ( even if NOTA ) , in the last general election

{ This criteria is bound to boost voting percentage to 95 % ! No need to

make voting compulsory ! }

* He can " Vote to Recall " , only MP who got elected from the constituency

from where he cast his vote in last election

* He can vote only if there is no Criminal charges filed against him

* The App itself will accept his " Rating / Vote " only on two days of the year

announced by the Election Commission for each constituency

* Any other criteria that readers may wish to suggest ( crowd-sourcing )

ROMP will show following criteria , with " YES " or " NO " buttons against each :

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LOG-IN :

# Suspend MP for next Session................................ YES.......NO

# Recall MP.............................................................YES ..... NO

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Justify your recommendation by " Rating " your MP , below

( Unless rated on each criteria , your vote will be invalid )

Is this MP ( who is being rated by you ) :

# Honest.............................................. YES........NO

# Of high Integrity................................. YES........ NO

# Sincere.............................................. YES........ NO

# Hard-working .................................... YES........ NO

# Punctual.............................................. YES....... NO

# Dignified............................................ YES........ NO

# Follows Speaker's Orders..................... YES........ NO

# Good Listener....................................... YES......... NO

# Awaits his turn to speak.......................... YES........ NO

# Asks only relevant questions.................. YES........ NO

# Approachable to Voters.......................... YES....... NO

# Answers Voters' Emails promptly............... YES...... NO

# Provides regular feedback to Voters ............. YES.......NO

# Addresses other MPs with respect............... YES..........NO

SUBMIT

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Conditions governing use of ROMP :

> It can be downloaded from the web site of Election Commission , upon

filling up a form, requiring all kinds of proof that you are a genuine voter

> Upon being satisfied ( that you are a genuine voter ) , the Server will

issue a User ID and Password, to log in before you can use the App.

It would be better still , if biometric identification is integrated with the

App , since AADHAR cards are already having such identification

> ROMP can be downloaded only once

> At least 66 % of the Voters who had actually voted in that Constituency

during the last General Election , should take part in ROMP event for it

to be considered valid

> Only in case more than 2/3rd ( > 66 % ) of " Ratings " cast recommend

Suspension or Recall , will the Election Commission / Speaker act

according to People's Mandate

> However , in case where those 66 % are divided between " Recall " and

" Suspend " , then " Suspend " will prevail

> Rating results will be made public on Election Commission web site on the

next day and also published in leading Newspapers

I do believe that the present NDA government is keen to introduce / pass ,

" RIGHT TO RECALL BILL " in Lok Sabha as part of Electoral Reforms

Except that the combined opposition may defeat it in Rajya Sabha !

Which MP would want to sign his own death-warrant ?

But even without a legal backing , I feel ROMP would have a salutary effect

on the behavior of our MPs , who would know that they are being watched,

and their conduct is being evaluated ! - and will be made public !

ROMP , along with my earlier suggested mobile Apps ,

( look up hemenparekh .... in )

> VotesApp

> I SIN><U SIN ,

will take us many steps closer to a Digital India

If you endorse my views , please forward to all Policy Makers

If not , please do come up with a better idea !

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hemen parekh

07 Aug 2015

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Tuesday 4 August 2015

MUAMMAR GADDAFI - A VISIONARY ?

A report says , thousands of illegal North African immigrants swarmed into France/Britain undersea tunnel

On both sides of the tunnel , respective governments are putting up fences / barricades and deploying thousands of policemen , to stop these immigrants from entering Britain

In the first 7 months of 2015 , some 190,000 north Africans have tried to cross the Mediterranean from Libya to Italy

2,000 died on the way

188,000 were rescued on high seas and permitted to land in Italy

That is some 1,000 per day ! Soon to become 10,000 per day !

And , whereas some European leaders are taking a humanitarian view of this illegal migration , others want to stop this " Human Flood "

May be those who realize that these " Waves " of persecuted and starving people are unstoppable , dare not blame their governments for ignoring what Guardian reported on 01 Sept 2010 , as follows :

"In a highly theatrical visit to Italy this week, Gaddafi warned that Europe would turn "black" unless it was more rigorous in turning back immigrants. Libya is a key transit point for illegal migration from Africa to Europe. The Libyan leader said the bill for sealing the crossing routes would be at least €5bn a year.

While in Rome Gaddafi advised Europeans to convert to Islam and sought to bolster his claim for billions from Europe by warning that millions of Africans were seeking to migrate to the EU.

"We don't know what will be the reaction of the white and Christian Europeans faced with this influx of starving and ignorant Africans," the Libyan leader told a Rome meeting attended by Silvio Berlusconi, the Italian prime minister. "We don't know if Europe will remain an advanced and united continent or if it will be destroyed, as happened with the barbarian invasions."

You may have umpteen reasons to blame Gaddafi but you cannot fault him on his vision !

I foresee something similar happening to Australia in the next 5 years , with millions of poor / starving people from all over Asia , flooding its shores

History has a habit of repeating itself !

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hemen parekh

05 August 2015

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Added on 02 July 2023 :

UK's Sunak plans deal with Italy on Mediterranean migrants, the Telegraph reports

Extract :

British Prime Minister Rishi Sunak is planning a deal with Italy to stem the number of migrants crossing the Mediterranean and return them to North Africa, the Telegraph reported on Friday.

Sunak had sent Cabinet Secretary and Head of the Civil Service Simon Case to Italy in mid-June for two days of meetings with top Italian government officials to work on a deal, the newspaper reported. A government source familiar with the matter confirmed to Reuters that Case was in Italy, without providing any additional details.

"If we are going to be successful in tackling illegal migration we have got to deal with the issue at source as well as focus on small boats," the Telegraph quoted a government source as saying.

The UK and Italy signed a Memorandum of Understanding in April to tackle illegal migration under "Strategic Migration Partnership."

"We are cooperating closely with Italy and other European partners to stem illegal migration and tackle people-smuggling gangs which operate cross-border," a UK government spokesperson said. "This is a shared challenge."

Britain had a record 45,000 people coming to the country in small boats across the Channel last year, mainly from France, according to government figures. More than 11,000 have arrived so far this year, according to the government.

Sunak of the Conservative Party has made stopping boat arrivals one of his top five priorities. He has been criticised by some members of his own party and the public for not moving quickly enough to crack down on irregular migration.

Saturday 1 August 2015

A WELCOME PROBLEM ?

India's trade imbalance with China is approx $ 36 billion

With slowing down of Chinese economy and speeding up of Indian economy , it is quite possible that this may get worse

How ?

> To grow at a faster rate , India will need to import more raw materials and

components from wherever these can be got cheaper

> To counter its own slow down , Chinese companies will compete fiercely

( with the rest of the World ) to export its products to India

This is evident in supply of PV Solar Panels from China, where Chinese companies have dropped their prices drastically

This price drop has enabled Chinese companies to export to India, PV Systems worth :

> Rs 352 Crores in 2010-11

> Rs 3,745 Crores in 2014-15

Result :

> India's domestic power output , using PV Systems , went up from 1,000 MW in 2010-11 to 4,000 MW in 2014-15 !

> Average solar power tariff went down from Rs 17 per unit to Rs 5 per unit !

Now , Indian PV System Manufacturers are very unhappy with this Chinese " dumping " , for two reasons :

> Their annual production capacity is only 1300 MW of PV Systems

> They cannot match the Chinese prices

But the Power Minister seems to be saying :

" My target for Solar energy generation is 1,00,000 MW by 2022 .

Of this , Indian Manufacturers can deliver , no more than 10,000 MW

And I want to bring down Solar Power tariff below the current average ,

which is possible only when " Rs / MW of installed capacity " becomes less

than that for coal-based power plants

So , I must buy Solar Plants at less than Rs 5 crores / MW installed capacity

Only Chinese companies can supply me at Rs 3 Crores / MW

For 1 lakh MW ( 100 GW ) target , I need Rs 3 lakh*crores of funds

And the Chinese companies will also get me " Suppliers Credit " @ 2% interest

Last week , 649 companies from all over the World , bid for 20.6 GW of Solar

Power auction in Brazil , which is expected to place orders by Nov 2015

I must place my orders on Chinese Companies before Brazil ties up their production capacities !

Remember , 100 GW of Solar Power will help us,

> Light up 5 Crore homes ( @ 50,000 homes / 100 MW )

> Generate 15 lakh " green jobs "

> Raise our GDP by 0.5 %

Must act fast ! !

Only thing Power Minister would not say publicly is :

" If importing Solar PV Systems from China worth Rs 3 lakh*crores is going to

worsen our trade balance , please treat it as a welcome problem ! "

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hemen parekh

03 Aug 2015

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Non Performing Assets ?

Central Government just announced a package of Rs 70,000 Crores for re-capitalization of Public Sector Banks ( PSB ) , spread over 4 years

PSBs are carrying on their books , NPA ( Non Performing Assets ) of some Rs 2.8 Lakh Crores ( 70 % of Rs 4 lakh crores for all banks )

NPA is a euphemism for bank-loans given to rich businessmen / industrialists , who are refusing to re-pay !

Apart from defaulting on loan repayments , some 17 of them are even defaulting to pay up Rs 2.14 lakh crores worth of Income Tax !

From where is Central Government going to get those Rs 70,000 crores ?

From my tax money

I cannot complain !

Because , if the Government did not dole out this largess , then those banks may declare bankruptcy

And I will lose all my savings and fixed deposits

Better to pay some tax than lose my life's savings !

But what about those tax-payers who have no bank savings worth protecting ?

Why must they be punished for " Crimes of Commissions and Omissions " committed by :

> Lax ( or conniving ? ) Bank Managers who gave out those loans without

sufficient collateral or dragged their feet on recovery ?

> Loan Defaulters who siphoned off the loan money in personal accounts or

undeclared assets , with impunity ?

> Law Makers who failed to pass iron-clad acts with stringent penalties for

willful defaulters ?

In the meantime , some 17,000 farmers continue to commit suicide EVERY YEAR , for being unable to repay bank loans of a few thousands of rupees !

And the worst part is :

History will repeat itself , all over , 10 years from now !

Vested interests will ensure " statusquo ante " !

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hemen parekh

02 Aug 2015

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Sunday 26 July 2015

If Mohamed cannot go to Mountain

There is an old saying:

" If Mohamed cannot go to Mountain , let Mountain go to Mohamed "

In today's internet era , an equivalent would be :

" If people cannot go to where jobs are , let jobs go to where people live "

Remember , in 2015 , it is much easier / cheaper to import " digital service " based jobs into India , then to export people to foreign countries , where they will face a lot of resistance / animosity from local citizens

Examples :

Call Canters / BPO / RPO / LPO / KPO ....any PO ( Process Outsourcing )

May be this is what was in the mind of Shri Ravi Shankar Prasad ( Minister for Communication and Information Technology ) , when he proposed setting up of 480 Call Centers ( @ 100 seats each )

As per Minister ,

> These will be set up in smaller towns

> These will be distributed State-Population wise

> Union Government will give Rs 1 lakh subsidy per seat

> Established Company will hand-hold a local entrepreneur for setting up

the Call Center

> Local entity can be an agency ,society ,individual ,partnership ,Company

> State Governments will need to provide electricity / security

> Center will soon issue call for expression of interest

But with 100 persons working in each shift , that would generate employment for only ,

480*100*3 = 1,44,000 youth

And we have 12 million people joining our work force every year !

Can we find ways to generate in small towns , millions of jobs for 3.5 million students graduating from our colleges , each year ?

It is possible , with following " OUT OF THE BOX " thinking :

# SPACE

India boasts of over 1.3 million schools . These school buildings are occupied for only 8/10 hours per day

Let Government frame rules which encourage these school-buildings to turn into Call Centers after 5 pm

For a 100 seat Center , Government is planning to give a subsidy of Rs 100 lakhs

If 25 % of this subsidy is passed onto a school , it will be happy to lease out its premises to a Call Center

# BROAD-BAND

Under " Digital India " program , let Union Government provide a 100 Mb broadband connection to each such " School-cum- Call Center " , free of cost

That will also help the students to freely access digital education content throughout the day

# BLACK MONEY

Launch an Amnesty Scheme under which black money is permitted to be invested into setting up such Call Centers

No questions asked as to the source . No penalty to be paid . No income tax on earnings for 10 years

There can be no better way to put these money to a mainstream and productive use !

All that debate of " Rewarding " the tax-evaders while " Penalizing " the honest tax payers , is merely academic

India's problems are unlikely to be solved by academicians !

These can be solved , only by pragmatists !

Luck happens when " preparedness " meets " opportunity "

My suggestions will prepare us to make 21st Century , an Indian Century !

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hemen parekh

27 July 2015

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