Times of India ( 20 Dec )
carries following news report :
“ Relief for Shop Owners and Eateries
from License Raj “
Maharashtra 1st to implement Amended Act / Move will generate more
Employment
Highlights :
·
Shops and Establishments to
stay open 365 days a year and can choose opening and closing timings, if not
restricted by the state in public interest
·
Bars, wine shops, pubs, discotheques will continue to have timing
restrictions
·
Welfare provisions in bill
won’t apply to shops and establishments with less than 10 employees ( approx. 12
lakh establishments )
·
Rules relaxed for kirana
stores , small shops
·
Employees not to work more than 9 hours, will get paid leave and
overtime
·
Govt has already reformed Factories and Contract Labour Acts
·
State will consider public inconvenience in terms of traffic and
noise pollution caused by 24*7 operations
·
Women can work night shifts –
9:30 pm to 7 am – with their consent
·
Establishments will have to
provide safety measures for their women employees
·
35 lakh Shops and
Establishments in Maharashtra
·
No registration required for
which have fewer than 10
workers or employees
working from home or which run an online business
Without doubt , this reform will generate
more jobs
But if the governments ( Central + States ) , are bold enough to implement
my earlier suggestions ( see following blog ), they can generate :
50MILLION NEW JOBS in 5 MONTHS ?
[ 24 June 2016
]
=================================
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 neighbourhood 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 catalyse 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 :
From BAD to MAD [
01 June 2016 ]
21 Dec 2017
www.hemenparekh.in
/ blogs
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