Friday, 24 June 2016

50 MILLION NEW JOBS in 5 MONTHS ?



It is reported that the Union Cabinet will soon approve a notification which will allow establishments covered by the Shops and Establishment Act to remain open round the clock ( 24 hours )


Currently , if they remain open for 10 / 12 hours , they end up inviting visits by Inspectors of Establishment Department and the Labour Department , to collect their weekly " haftas "


With official sanction of 24 hours , that would go !


And 24 working hours will enable these shopkeepers to compete with those Foreign Companies bringing in 100 % FDI in retail but working for 8 hours / day !


And as soon as one Grocery store starts working longer hours ( even 12 hours ) , most of the neighborhood stores will follow suit  !


For our 50 million MSMEs to, not only take on these Foreign Giants but to defeat them in competition , is only possible when we stop playing the RETAIL GAME by the Rules of those Foreign Countries , and make them clue-less with our own NEW and OUT-OF-BOX rules !


Possibly half of these may be covered by Factory Act and the remaining half by the Shop and Establishment Act


Between them , they employ 90 % of India's work force of around 500 million


Average of approx 9 persons per MSME


Now , even if only 5 million ( out of 25 million shops ) just add ONE more employee to work longer hours , that would get jobs to 5 million youth !


That is quite a lot !  And without any additional Capital Investment !


Compare this advantage with Capital required to create ONE new job in Start Ups


As per Government , Rs 10,000 cr of " Fund of Funds for Start Ups " , will catalyze an Equity Investment of Rs 60,000 cr , which , in turn will enable raising of Debt of Rs 120,000 cr - totaling Rs 180,000 cr of capital


As per Government , that will generate 18,00,000 jobs ( in 5 years )


That is requirement of Rs 10 LAKH for each new job created in a Start Up !


While welcoming this initiative , I urge the Union Government to take following steps simultaneously , in order to generate , not just 5 million but  50 MILLION  new jobs in the MSME sector ( and without additional funds ! ) :


#   Abolish all visits by Inspectors ( Labour + Shop & Establishment Departments )


#   Allow MSMEs to engage Apprentices under the recently revised Skills Development Regulations / Apprentice Act


#   For them , remove the upper limit ( of Apprentices ) which is maximum of 10 % of employee strength


#   Let them engage Apprentices up to 100 % of their existing employees


#   Let them keep these trainees for 3 years under " Retail Establishment Trainee Scheme "


#   Let the stipend be 100 % ( instead of currently prescribed 60-70-80 % ) of semi Skilled Minimum wages

     ( Minimum Semi Skilled Wages are approx Rs 6,000 per month - so Shopkeeper need to pay Rs 6000 pm )


#   Concerned State Governments to subsidize 50 % of this stipend (so, Shopkeeper's burden to be  Rs 3,000 pm )

     [  Stipend Subsidy does not violate WTO  !  ]


#  To ensure fool-proof  compliance with the number of Trainees engaged and Stipends paid , this Scheme

    ( 24 hr open + 100 % trainees + 100 % Stipend + 50 % Subsidy + 3 year training program + No inspectors ),

     will apply ONLY to those Shops which implement , mobile app MAD outlined in my following blog :

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01 June 2016

From BAD to MAD


BAD   =   Biometric Attendance Device

MAD   =   Mobile Attendance Device


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Here is my idea of a technology that we need to create for a better India :

Today Employee Attendance Systems in India work at three levels as follows :

#   Entirely Manual

     Attendance Register and Wage / Salary payment in cash or by Cheque

#   Partly Automated

     Punch cards or Bio-metric recording of attendance but manual calculation
     of wages / salaries and payment by cash or cheque

#   Fully Automated

     Bio-metric Attendance Devices ( BAD ) , integrated with a home-grown or
     bought-out , Salary Payment Software , running on a local Server.

     Salary payments could be by cheques or thru Electronic Transfer to
     concerned employee's bank account


Once in a while , if a company has several establishments within a city , those local servers are connected to a Central Server , doing all processing

In a rare case ( although , I am not aware of any ) , it may be that all the local servers of all the establishments of a company , all over the country , are networked with its central computer in its head-quarter


Now imagine this :


#  All smart phones to evolve as Bio-metric Attendance Devices , with built-in
    Bio-metric Recorders , GPS , a mobile attendance App ( called MAD ? )

#  App to have 2 buttons / icons (  Green = IN  /  Red = OUT  )

#  Employee to touch IN upon reaching his work-station and touch OUT ,
    while leaving work place , at the end of work-shift . That's all  !

#  Being GPS enabled , buttons will get activated ONLY when the employee
    has reached the work place ( not while he is on his way ! )

#  All 50 million establishments in India ( factories / offices / shops / clinics
    NGOs / Govt Depts ) to ensure that the MAD app is installed on the smart
    phone of each employee , when he joins
   
#  All of these smart phones to be connected ( IoT ? ) , with the Servers of ,

    *  Labour Ministries ( Central and States )

    *  HRD Ministry ( Central )

    *  Skills Development Ministry / NSDC

    *  Finance Ministries ( Central + States )

    *  NITI Aayog

    *  Income Tax Department

    *  Any other server that you may want to


#   MAD app is integrated with a STANDARD / COMMON , software system
     for computing daily wages / monthly salaries of ALL the persons working
     in those 50 million establishments ( whether they are casual /
     contractual  / trainee / apprentice / probationer / permanent / retained )


#   As each person joins in any of these establishments , data re  that
     person must be inputted by the Employer into the App , such as :
   
     *  Name / Contact Details / DOB / Aadhar Card No / Employee Number

         ( Each unique Employee Number will be auto-generated by the
         common Salary Payment Software , running on IT Dept Server )


     *   Employee's Jandhan Yojana Bank Account Number for salary EC


     *   Employer's Jandhan bank account / Unique Employer Number


     *   Payment Mode ( Hourly / Daily / Monthly Rated ; wages / salaries )


     *   Leave provisions / PF rate / TDS rate / Allowances / Reimbursements


     *   Any other relevant data ( either about employee of for employer )



WHAT  ARE  THE  ADVANTAGES  ?


#   For employees , no need to file a separate annual Income Tax Return

#   Direct deposit of PF / TDS amounts into bank accounts of Govt Depts

#   Direct Benefit Transfer ( DBT ) to every Employer for Stipend Subsidy ,
     based on number of total trainees / apprentices employed

#   Total number of employees in India ( category / region / industry )

#   Employment Density ( Industry wise / Region wise / Skill wise etc )

#   Net Employment Growth Rate ( weekly - monthly / Industry-wise )

#   Co-relation with no of persons graduating at various levels

#   Data about those Unemployed ( " Graduating " less " Employed " )

#   Overtime Statistics ( Use / Abuse )

#   Work-hour Analysis ( Ave hours / week - month )

#   Wage / Salary Rates ( Rs per hour ) - Industry wise / Region wise

     ( of great interest to Foreign Investors looking to bring down
       manufacturing costs , by outsourcing to India / manufacturing in India )

#   Compliance with labour laws / tax laws / Apprentice Act etc

#   Job Market Forecasts through BIG DATA ANALYTIC ( region / industry )

#   Demographic  Profiles of employees  ( Rural to Urban migration )

#   Per Capita Income Growth for persons using MAD app  ( MOM / YOY )

#   Changing composition between Blue Collar and White Collar employees


Then there could be many other benefits not envisaged now


Here is an opportunity for :


 *  Manufacturers of Smart Phones

     To shrink stationary / bulky / common , bio-metric devices to mobile /
     small / personalized / hand-held devices

    { Remember ?  If you don't make yourself obsolete , someone else will  }



*  Tech Start Ups

     To come up with the Mobile App ( MAD ) / Technology Platform


*  NDA Government

    To implement what Shri Narendra Modiji said on 15 July 2015 :

   "  If China is like a manufacturing factory of the World , India should
    become the human resource capital of the World .

   That should be our target and we should lay emphasis on that . 

   We should have a futuristic vision and prepare plans for the next ten years "

  

   MAD  could well be an important element  of  that  " JAM ( Jandhan + Aadhar + Mobile ) PLAN "  !


  For once , please unshackle our entrepreneurs and enable them to unleash their innovations  !


  WE  ARE  FAST  RUNNING  OUT  OF  TIME  !

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23  June  2016

www.hemenparekh.in / blogs

   


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