Frame policy for the Rs 27,000 crore sector: CII

CHENNAI: Confederation of Indian Industry (CII) has urged the Tamil Nadu government to frame a policy for the Rs 27,000 crore outsourcing sector in a bid to provide a safety net to the millions of workers whose contribution to the national economy goes unnoticed.Addressing a press conference after releasing a report on manpower outsourcing in southern states, the Confederation of Indian Industry Southern Region chairman T T Ashok  and CII chairman, southern region subcommittee on skills and employability, B Santhanam, stressed on the need for states like Tamil Nadu and Karnataka to work on such a framework as amendments to labour laws at the Centre takes time.“States like Tamil Nadu and Karnataka, where 75 per cent of employees are outsourced, should take a lead in this regard so that outsourced employees can be treated on par with permanent employees,” said Santhanam.Interestingly, outsourcing companies can neither register at employment exchanges nor can they take in apprentices. Santhanam also said the framework should focus on housing needs of the employees.Santhanam said the sector needs to be provided an independent industry status. “This would bring in parity in terms of legislation, bridge the divide between the organised and unorganised sectors and provide a security net for a larger section of labour force,” he added.There were also recommendations to make the Labour Act more inclusive based on current market requirements. “There is a need for uniformity in legislation across sectors, parity and rationalisation of labour laws across states and sectors to enable a mobile, flexible and employable workforce. Standardised benefits for permanent and outsourced employees could help stem attrition,” the report said.Currently, the attrition rate in the outsourcing sector is 30 to 35 per cent per year and Santhanam said there is difficulty in getting people for many outsourcing companies. The report also recommended that the government look at the outsourced manpower development sector in conjunction with skills development sector.