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 :
--------------------------------------------------------------------------------------------------------------------------------
01 June 2016
BAD = Biometric Attendance Device
MAD = Mobile Attendance Device
-------------------------------------------------------------------------------------------------------------------------------
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 !
--------------------------------------------------------------------------------------------------------------------------------
23 June
2016
www.hemenparekh.in
/ blogs
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