Brandix managed GO with depressed wages, says BJP floor leader

Labour Minister assured to have the matter investigated, says BJP floor leader in Assembly

While congratulating the government for effectively monitoring implementation of various government orders on minimum wages, BJP Floor leader in AP Legislative Assembly P. Vishnu Kumar Raju pointed out that some companies had managed to get a GO notifying low wages.

Participating in the discussion in the House on Labour Department, the BJP MLA from Visakha North took it to the notice of the House that the final GO on minimum wages for Garment and Allied Industries had notified wages that were 48 per cent less than the ones originally proposed by the government.

The MLA told

The Hindu that the GO Rt No 326 dated 23 February 2011 had proposed minimum wages of Rs. 8,050 for Tailor Grade 1; Rs. 7,470 for Tailor Grade 2; and Rs. 9,300 for office staff. However, in the Final notification through GO MS No 62 dated 19 November 2011 the Labour Department had notified wages of Rs. 4,366 for Tailor Grade 1; Rs. 4,320 for Tailor Grade 2; and Rs. 4,398 for office staff. These were just three of the nine categories notified in the GO.

By a rough calculation the Brandix has saved at least Rs. 72 crore per annum on wage bill which works out to Rs, 360 crore over five years.

“The company has cheated the workers to the tune of Rs. 360 crore over the last five years. The Labour Department officials only verify that the wages are paid as per the relevant GO. The company in collusion with officials has ensured that it has to get away with paying low wages,” he said.

‘Probe promised’

Minister for Labour K. Atchannaidu assured to have the matter investigated and ensure that justice is done to the workforce, the MLA said.

The Minister promised to get a fresh GO issued with retrospective effect, he added.