ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Labour- Let Bygones Be

 Labour IN early 1974, the Congress govern- ment introduced the compulsory deposit scheme for labour. According to this scheme, all increases in wages following settlements with managements and half the increase in dearness allowance were impounded in a special account in the Reserve Bank of India. The impounded deposit earned for the worker a 12 per cent rate of interest Repayment of the amount impounded each year was to be over a five-year period, in equal instalments. This was said to be an 'anti-inflationary' measure, taken on the very questionable assumption that the prevailing inflation was the result of a 'demand pull from workers.

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