According to sources one of the 'hidden agenda' for appointing this Commission is proposals for amendment of various Labour Laws.

Since the economic reforms and the process of liberalisation and structural adjustment programmes initiated in early nineties there has been tremendous pressure from the MNC's and their Indian counterparts to amend various Labour Laws, which are according to them are very stringent and not investment friendly. Practically what they wanted is free hand to 'hire and fire'. The Congress Govt. at the Centre proposed various modifications in the existing Laws, but failed to get it through due to united opposition of the trade unions.

Present BJP led Govt. have come out much more nakedly to attack the workers hard earned trade union and other rights. They have concentrated their fire against the Industrial Disputes Act in its present form. The have proposed to change the total character of this Act and re-name it as 'Industrial Relations Act'.

The main target of attack is Chapter VA and VB of the I.D. Act. According to various provisions of these two Chapters employers are prevented from unilateral lay-off, retrenchment and closure of the industry/establishment. They are to seek permission from the respective Governments. In other words the minimum protection that the workmen are having against closure, retrenchment and lay-off that will be taken away. Employers will be given free hand.

Govt. of India further proposes to exclude Public Sector Employees of Port & Dock, Railways, Deference Factories, Post & Telegraph, Hospital and Educational Institutions etc. from the purview of the Act. The employees of these industries are left at the mercy of the employing authorities.

Under the present provisions of the law workers enjoy certain right to strike though truncated and restrictive. But the new proposals will take away this basis right of the workers.

The Govt. of India themselves admitted that : "The reforms process failed to demonstrate sustainability. The policy changes were carried out in fiscal areas, trade and exchange rate and foreign investment with the main objective of making the Indian Industry globally competitive. Though the reforms undertaken during the last 5 years have yielded certain positive results, there are new anxieties and concerns over the security of employment due to integration of national economy with global economy and structural adjustment policies and programmes. There is greater Contractualisation casualisation and lesser number of regular jobs are available than before." (A Report published in Indian Labour Journal, September, 1998, A Govt. of India Publication)

Even then to satisfy the MNC's and the Indian industrialists Govt. of India proposes to repeal the Contract Labour (Abolition & Regulation) Act. This Act gives protection against employment of Contract Labour in perennial nature of work.