Minimum wages: Quick decision unlikely as industries pressure Karnataka govt

Bengaluru: Labour Minister Santhosh Lad’s plan to increase the minimum wages across 84 scheduled employments affecting over 1.7 crore people seems set for a long haul as pressure from management has pushed the government to take a backstep.

As per the draft notification, the two-month window provided by the government to receive objections ended on June 25.

As many as 160 industries have sent their objections to the Labour Department and have objected to the proposals as “too steep.” These include the Federation of Karnataka Chambers of Commerce and Industry (FKCCI), Karnataka Small Scale Industries Association, Adani Group, Karnataka Employers’ Association and several MSMEs.

Deputy Chief Minister D K Shivakumar recently assuaged the fears of industries, stating that no hurried decision would be made without consulting industries.

Legal angle

Objecting to the notification, the Nanjappa Hospitals-Shivamogga has approached the High Court, which has issued a notice to the government.

While the state government has assured the high court that no further action will be taken without consulting industry representatives concerned, the high court has noted that the petitioners are at liberty to move the same court to seek appropriate relief.

As per the Mandate of the Minimum Wages Act, 1948, the Labour department has decided to urge the government convene a meeting of the Minimum Wages Advisory Board to finalise the prices. DH has learnt that the file is expected to reach the government in 3-4 days. The 27-member board has equal representation of unions, managements and government officials. 

However, sources in the Labour Department told DH that quick decisions were unlikely, given the magnitude of opposition from industries. The issue may get delayed indefinitely, sources added.

“We will follow the due procedure and convene the Minimum Wages Advisory Board meeting within a month. After consulting opinions of all stakeholders, we will take a decision,” Minister Santhosh Lad told DH.

The draft notifies minimum wages for workers across four skill levels (Highly skilled, skilled, semi-skilled and unskilled) in three zones.

The government has proposed minimum wages in the range of Rs 31,114 to Rs 23,276 for unskilled labourers across the three zones (zone 1 – Bengaluru Urban and BBMP limits, zone 2 – city corporations and district headquarters and zone 3 – regions except zones 1 and 2.)

“The minimum wage should be on par with the neighbouring states. In a globalised system, businesses will flow to other states if the wages are higher. We are fine with an incremental increase but the proposed changes are too drastic,” FKCCI President M G Balakrishna said. 

While trade unions have welcomed the government’s notification in principle, they have sought higher wages than the government’s proposal by citing the Supreme Court’s guidelines in the Reptakos Brett Case.

The All India Trade Union Congress (AITUC) and the All India Central Council of Trade Unions have arrived at a minimum wage in the range of Rs 40,410 to Rs 33,902 for unskilled workers in zones 1-3 based on present-day prices of food, clothing and shelter.

“DCM D K Shivakumar’s interference with the due process of revising the minimum wages as per the Act and the Supreme Court’s guidelines is unconstitutional. The 60-day period provided for consultations has ended and the government must soon convene a meeting of the minimum wages advisory board,” said Satyanand Mukund, state secretary, AITUC.