Centre’s rules hold company accountable for any employee testing positive for the virus.

 India Inc views the government directives on resumption of industrial activity that hold company directors and management accountable for any employee testing positive for Covid-19 and ask for penal action, as both unnecessarily harsh and impractical. Industry also reckons these rules may disincetivise resumption.

These rules allow district authorities to take action, under the Disaster Management Act, against companies for not just non-compliance with safety measures but also for any incidence of Covid-19 at workplaces.

“It’s not very practical. One can definitely expect infections to occur when we restart operations. We need protocols on how to handle it…not punishment for managers/owners. No factory can open under these circumstances,” said Venu Srinivasan, chairman of TVS Motor. “Further, some states want labour to be kept inside the premises. None of us have quarters nor bath facilities (for workers in the factory premises).”

“Businesses are crumbling. We need to remove or relax regulations,” said Ajit Gulabchand, chairman, Hindustan Construction Company.

Mutual Trust Crucial: Industrialist
“Open it up and let go. Reduce regulations to help businesses to get the economy back on its feet,” he said.

Another veteran industrialist, who did not want to be named, said that the Centre’s move is definitely “a spoiler” and is “harsh”. He said his experiences as an industrialist for over 50 years shows that most government ordinances and notifications usually come with “fines and penalties.” Therefore, he said, the latest guidelines weren’t surprising, but they give no encouragement to businessmen either to take an initiative to resume normal business activities.

Kiran Mazumdar-Shaw, chairperson of Biocon, said, “I think we need to let scientific rationale prevail. The fear psychosis is too overreaching. We need to calibrate economic revival.”

CII, which has put together and recommended a set of safety protocols for different sectors, suggests self-certification by companies.

Another industrialist said off record that companies and governments have to believe each other, and that excessive regulation or penal action won’t help.

Also speaking off record, a prominent businessman said any crisis requires fewer rules. He said Germany removed 2,600 laws when it started reconstruction after the Second World War. “Time is now to do something similar,” he said.

ET VIEW: Don’t Scare Industry
As industry limps back and tries to negotiate a welter of often-contradictory rules, one set of norms are particularly troubling — those stating that company managements can be held responsible, with penal action following, if employees test positive for Covid-19. Sure, workplaces will have to figure out SOPs suited to their circumstances for minimising risk. Government can clear different SOPs for varying work patterns. Companies must be asked to follow those SOPs. But to hold managements responsible for any employee contracting Covid-19 is illogical, and a dampener on industrial activity. An employee can get infected outside work — how’s that a management responsibility? The economy is hurting badly. Millions of jobs are at risk. India needs investments. Make investors feel reassured, not scared — remove this set of rules.

Source : https://economictimes.indiatimes.com/news/company/corporate-trends/industry-alarmed-by-mha-directives/articleshow/75281927.cms?from=mdr