Mangaluru : The Kanara Chamber of Commerce and Industry (KCCI) has strongly opposed the reported move by Union Ministry of Labour and Employment to close down the sub-regional office (SRO) of Employees’ State Insurance Corporation of India (ESIC), Mangaluru.

In a letter to Union Minister of State for Labour and Employment Santhosh Gangwar, KCCI president Vathika Pai said closure of the SRO at Mangaluru would lead to hardship to thousands of employers and employees in the coastal region.

Ms. Pai said closing the Mangaluru SRO which is geographically distant from the Bengaluru Regional Office would adversely affect the efficiency of service to both employers and employees of the region. Employers would have to commute long distances to Bengaluru for attending personal hearings in connection with notices issued to them, determination of contribution, damages payable by them, etc.

She said the move would increase the cost of compliance and appeals for the employers as they have to go to the Bengaluru office, thus putting all the stakeholders in difficulty. Employees registered under ESI would also have to wait for settlement of their benefit claims related to accidents, maternity, etc. for a long time.

KCCI is of the view that Mangaluru SRO has ensured better administration, streamlining of operations, quick decision making as well as better accessibility and approachability for employees and employers, along with better coordination with the associated hospitals. After the SRO at Mangaluru was made operational, all the sites of hospitals as well as dispensaries have been functioning very well.

Moreover, Mangaluru SRO is catering to the needs of a very substantial number of employees of not just Mangaluru, but also of all the nearby towns and villages. It is currently serving more than 2 lakh employees and more than 5,000 organisations, Ms. Pai said, urging the government to retain the SRO in Mangaluru.