<p>Bengaluru: The proposed hike in minimum wages in Karnataka could result in the closure of at least 20% industries in the Peenya industrial area in Bengaluru and shifting of at least 30% industries to other states, industrialists have warned. </p>.<p>In a recent draft notification, the state government stated that highly skilled labourers would earn around Rs 30,000 and unskilled labourers around Rs 20,000. </p>.<p>However, representatives of the Peenya Industries Association (PIA) say industrialists in the area, one of the biggest in the country, have approached them over the past week, airing concerns over the increase in minimum wages. </p>.<p>"Many small industries which run on a 5%-8% profit will not be able to sustain with such a raise in the minimum wages," said Shiva Kumar R, president, Peenya Industries Association. </p>.Serious traffic problem at Hebbal due to infra works, Bengaluru top cop says.<p>Explaining how the increase could impact the industries, Suresh Sagar, honorary general secretary of the Karnataka Small Scale Industries Association (KASSIA), said local industries would not be able to compete with those from neighbouring states, which would be able to offer cheaper rates due to lower labour costs. </p>.<p>"Karnataka already has the second-highest minimum wages (in the country), and will have the highest minimum wages with this revision. This would mean that our production costs would be way higher, making it difficult to offer a competitive pricing. Eventually, our industries will lose business," Sagar said. </p>.<p>The impact is expected to be felt across industrial areas. Industrialists fear it could result in job losses on a large scale. </p>.<p>"Just 40 km away from Bengaluru, the minimum wage in Hosur (Tamil Nadu) is lower. Similar is the case with Hindupur (Andhra Pradesh), which is about 100 km away. When such is the situation, if the minimum wage is revised, industries will definitely move out and this will result in large-scale job losses," said M G Balakrishna, president of the Federation of Karnataka Chambers of Commerce and Industry (FKCCI). </p>.<p>FKCCI representatives said that they would file objections to the draft notification because the minimum wages would affect nearly 90% of the industries in the state. The micro and small scale industries will be the worst-affected, Balakrishna added. </p>.<p>"In Karnataka, close to 90% of industries are either micro- or small-scale industries, which will be the worst-hit. The impact could be severe for the sector," he said. </p>
<p>Bengaluru: The proposed hike in minimum wages in Karnataka could result in the closure of at least 20% industries in the Peenya industrial area in Bengaluru and shifting of at least 30% industries to other states, industrialists have warned. </p>.<p>In a recent draft notification, the state government stated that highly skilled labourers would earn around Rs 30,000 and unskilled labourers around Rs 20,000. </p>.<p>However, representatives of the Peenya Industries Association (PIA) say industrialists in the area, one of the biggest in the country, have approached them over the past week, airing concerns over the increase in minimum wages. </p>.<p>"Many small industries which run on a 5%-8% profit will not be able to sustain with such a raise in the minimum wages," said Shiva Kumar R, president, Peenya Industries Association. </p>.Serious traffic problem at Hebbal due to infra works, Bengaluru top cop says.<p>Explaining how the increase could impact the industries, Suresh Sagar, honorary general secretary of the Karnataka Small Scale Industries Association (KASSIA), said local industries would not be able to compete with those from neighbouring states, which would be able to offer cheaper rates due to lower labour costs. </p>.<p>"Karnataka already has the second-highest minimum wages (in the country), and will have the highest minimum wages with this revision. This would mean that our production costs would be way higher, making it difficult to offer a competitive pricing. Eventually, our industries will lose business," Sagar said. </p>.<p>The impact is expected to be felt across industrial areas. Industrialists fear it could result in job losses on a large scale. </p>.<p>"Just 40 km away from Bengaluru, the minimum wage in Hosur (Tamil Nadu) is lower. Similar is the case with Hindupur (Andhra Pradesh), which is about 100 km away. When such is the situation, if the minimum wage is revised, industries will definitely move out and this will result in large-scale job losses," said M G Balakrishna, president of the Federation of Karnataka Chambers of Commerce and Industry (FKCCI). </p>.<p>FKCCI representatives said that they would file objections to the draft notification because the minimum wages would affect nearly 90% of the industries in the state. The micro and small scale industries will be the worst-affected, Balakrishna added. </p>.<p>"In Karnataka, close to 90% of industries are either micro- or small-scale industries, which will be the worst-hit. The impact could be severe for the sector," he said. </p>