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 25 January 2018

ANSWER IS : COMPROMISE


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 :
Saving Jobs : 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


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

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 )


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

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


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

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 )


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


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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