New-Delhi. The newly formed central government has embarked on paving the way for one of the most controversial labor reforms for the financial sector. The council of ministers met at Prime minister’s residence to give final touches to the Early Acquisition and Superannuation (Enforcement) Bill (EASE), 2014.
The bill is slated to be introduced in the Lok Sabha in the last week of the monsoon session and is expected to pass without any hindrance.
Initially it applies only to the finance and insurance institutions and is touted as the boldest move from an Indian government since 1991. In essence, it aims to improve efficiency and effectiveness across public and private financial institutions by introducing a mandatory superannuation for professionals above 40 or those who have served an institution beyond a fixed period. This explicit provision is to completely open financial sector to the massive demands from Indian youth. The bill also aims to bring financial education into the financial inclusion umbrella to provide a launchpad for a huge and already motivated talent pool.
Explaining the bill to the mediapersons, finance minister Mr. Arun Jaitley reiterated the ‘strong ’need for such a legislation. “The employees are ‘real assets’ of an organization and assets are valued best when they are liquid. Also this bill automatically takes care of ‘Non-performing assets’, if you know what I mean”, remarked the minister with a simper. He also panned the opposition for protests. “It was they who had constituted the Urja Patel committee to recommend key reforms to satisfy the Indian youth’s penchant for financial sector. This government had only followed those recommendations with a few add-ons here and there.”
RBI governor Dr. Raghuram Rajan also supported the decision. However, he was quick to point out the significance with an inflation viewpoint. He stressed that the overall replacement of an older, high earning individual with a young and entry level trainee has made his job of taming inflation much easier. Then, he linked it to his own decision of removing old currency notes from the system, taken six months ago. When asked whether that had any real impact on the current decision of the government, he replied with a cursory, ‘next question, please!’
Meanwhile, the student community has unequivocally hailed the decision.
Ishu Gupta, the student placement convener at Bhartiya Institute of Management, Ahmedabad regards this day as the most important day of his life. “You see, most of the students who enroll as management graduates aspire to be investment bankers, barring a few chess enthusiasts who eye a related industry. In this scenario, if jobs and internships are few, the students have to delve in other domains out of expediency. No matter how much we profess our interests in these domains, the passion and the allure of the lifestyle that finance offers, continues to sting for long. In this backdrop, this decision of the government is truly liberating and has given us a chance to celebrate our second independence day in the same month!”