Hi Friends,

Even as I launch this today ( my 80th Birthday ), I realize that there is yet so much to say and do. There is just no time to look back, no time to wonder,"Will anyone read these pages?"

With regards,
Hemen Parekh
27 June 2013

Now as I approach my 90th birthday ( 27 June 2023 ) , I invite you to visit my Digital Avatar ( www.hemenparekh.ai ) – and continue chatting with me , even when I am no more here physically

Thursday, 21 December 2017

50 MILLION JOBS ? BELIEVE ME !


No  mere  Relief :  A  Game  Changer

-----------------------------------------

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 :


50 MILLION 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



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