Hubballi: Union Minister of State for Labour and Employment Shobha Karandlaje alleged that some state governments, including Karnataka, misappropriated the cess amount collected for the welfare of labourers by utilising it for other purposes.
Integration of Labour Cess into Social Security
Addressing a Labour Day event in Hubballi organised by the Employees' State Insurance Corporation on Friday, she announced that the Central Government intended to integrate this labour cess into the formal social security system. This would ensure the money is directly converted into pensions and ESIC healthcare benefits for construction labourers.
Allegations Against State Governments
She also said some state governments were instead spending the amount meant for the welfare of labourers on conducting health camps and distributing kits to claim bills.
Consolidation of Labour Laws
Karandlaje said the Union government consolidated 29 labour laws into four Labour Codes, including the Code on Social Security and the Occupational Safety, Health and Working Conditions Code. She said the reform aimed to streamline compliance, modernise outdated provisions and create a simplified, efficient framework that promoted ease of doing business while safeguarding workers' rights and welfare.
Upcoming Meeting with State Labour Ministers
A meeting will be convened on May 5 with all states' labour ministers to discuss the framing of the law. "Already codes have been made, once law is made the labour codes will help both the labourers and employers," she added.
Hubballi-Dharwad Central MLA Mahesh Tenginakai and officials from the labour and ESIC departments were present at the event.
