Wednesday, 24 January 2018

Safeguarding Existing Jobs ?




It is understandable that Labour Unions are worried about safeguarding the existing jobs of their member workers


But political parties have to repeatedly approach citizens for votes and answer : When do we get jobs ?


But it is a rare case when a political leader musters courage to say :


“ There are no new jobs in Public Sector / Government Departments – Agencies . Nor are we in a position to dictate Private Sector to hire more people “


It is also a rare case when an Industry  Association ( eg ; ASSOCHAM – FICCI – CII – SIAM etc ) , tells the public :


“  With ever-increasing competition ( locally and from abroad ) and ever-increasing Labour Costs ( - what with DA rising every month , linked with CPI rise ) , we have no choice but to automate our operations ( in office or on shop-floor ) and introduce robots . Sorry !  But , if we do not automate , we may have to shut shop and even the existing workers will lose their jobs “


It is in light of this stark reality of “ globalized world trade “ , that I request all the parties to read – and debate – following news ( Economic Times / 25 Jan 2018 ) :








Should the parties concerned [  Labour Unions – Employers – Politicians – Governments ], want a “ Compromise Formula “ , they should consider my following suggestion :



SavingJobs : Creating Jobs  [ 19  Dec  2017  ]





WHAT WOULD BE THE RIGHT APPROACH ?



*  Right approach would be : " Do not give fish to a hungry man / teach him how to
    fish "



 In short , empower them to earn their own living by teaching them " Skills " and by
 gaining " Experience " in use of those skills



Entire cost of this " Skilling " and " Experiencing " to be borne by the Government , till
each targeted poor / unemployed person , either gets gainfully employed or becomes
self-employed



Should he choose to become Self-Employed ( by registering as a " Start Up " ),
exempt him from paying Personal Income Tax for next 10 years



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HOW TO TRANSLATE THIS " SELF HELP " CONCEPT INTO PRACTICE ?


Divide the implementation in following 3 phases



*   Empowering - 3 years ( Imparting Skills in Industrial Training Institutes )



*   Experiencing - 3 years ( Providing experience in Ind / Commercial Establishments )



*   Self-dependence Phase ( Working in a gainful job or as Self Employed )



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WHAT SKILLS WILL GET PROVIDED IN ITI ?

Entire range of Manufacturing Industry related skills being currently imparted plus a
whole host of commercial skills required by E Commerce / Fintech / Agriculture
Processing / Payment Banks / Service Sector / BPO / Telecom and emerging sectors



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HOW SHALL WE MOTIVATE UNEMPLOYED YOUTH TO JOIN ITIs ?



Each trainee will receive Rs 1000 pm ( for course duration of 3 years )



   This amount will get deposited in Jan Dhan bank account of trainee ( DBT )




HOW CAN WE GET PRIVATE SECTOR PARTICIPATION IN THIS PHASE ?


*  If a Private firm or individual comes forward to set up such a Training Institute ,



   #  Treat it as an Infrastructure SPV



   #  No questions asked as to the source of funds for setting up such ITI



       {  a kind of Amnesty Scheme to convert Black Money into White Money  }



   #  A government grant of Rs 1,000 pm per trainee to such SPV ( DBT in Bank A/C )



If this is done , expect 10,000 SPVs to come up within one year and 10 million youth
to get  trained each year !




HOW CAN WE GET INDUSTRIAL AND COMMERCIAL ESTABLISHMENTS TO PROVIDE
EXPERIENCE TO TRAINEES PASSING OUT OF ITIs ?


*  Amend Apprenticeship Act



*  Allow all Industrial and Commercial Establishments to engage ANY NUMBER of
   apprentices ( without upper limit ) , for a period of 3 years



*  Starting stipend = Min of Semi-Skilled wages ( currently , approx Rs 6,000 pm )



*  Annual Increment = 5 %



*  Establishment to pay 75 % of stipend



*  Government to pay 25 % of stipend ( DBT into Jan Dhan account of the Apprentice )



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HOW CAN WE ENSURE A " LEAKAGE PROOF " DISBURSEMENTS OF DBT AMOUNTS ?


*    Through implementation of Mobile based Attendance System , outlined in my blog,



   " From BAD to MAD "  [  01  Jan  2016  ]








HOW WILL MY SUGGESTION HELP ?


*  It will solve the problem of poverty organically / permanently



*  It will prevent " Dependency Culture " ( looking up to Sarkar Maa Baap for
   everything )



*  It will enable poor to retain their " Self Respect / Dignity "



*  The money spent by government will create highly productive " Human Assets "



*  It will overcome the " Skills Shortages " experienced by the Economy



*  It will create gainful " Self Employment " for millions of poor



*  It will make India , a " Low Cost Economy " , able to export its goods and services



*  It will channelize Black Money into a " Nation Building " exercise



25  Jan  2018



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