Amid a demand to determine minimum wages of the workers that would be commensurate with the present-day prices, the State government on Thursday increased minimum wages in eight scheduled employment by an average of 10%, disappointing the trade unions.
Despite opposition to the proposal for revision made in the draft notification at the meetings of the Minimum Wages Advisory Board, the final notification has gone ahead with the provisions contained in the draft notification.
The revision that is coming after four years, as the government has acknowledged, was done without a field-level survey to determine the present-day prices, and trade unions have announced a legal recourse against the government’s decision. The increase in minimum wages varies from as low as 1.66% for unskilled workers in the fisheries sector to a high of 26.5% for those in pottery, ceramics, stoneware, and other allied products.
On the other hand, the joint trade unions demanded the minimum wages based on existing scientific and legal norms demanded ₹31,556 for an unskilled worker in Zone 1. The AICCTU, HMS, AIUTUC, INTUC, HMKP, and AITUC have jointly submitted a petition to the board seeking the revision based on their calculation.
The proposal by the unions had been opposed by the employers, citing it to be too high and came around the time when the Labour Codes were being implemented. They had also pointed out at the hardship faced during and post COVID-19 pandemic.
Also, in a departure from an earlier government’s commitment to implement the revised pay from retrospective effect, the final notification makes the revision operational from July 28.
“The revision is illegal and arbitrary since present-day prices of food, clothing, and shelter have not been collected as the government felt it was cumbersome to collect data from across the State. How can the government arbitrarily decide on 10% when inflation has made every product expensive,” asked M. Satyananad, a member of the advisory board.
The revised minimum wages at an average of 10% are calculated based on the previous minimum wages fixed in addition to ₹1,437 variable dearness allowance that the workers receive. The government did not conduct field-level surveys to collect present-day prices citing the lack of manpower too. In 2016, the government conducted surveys to collect the present-day data on food, clothing, and shelter at 16 locations across the State, though unions allege that government followed a flawed procedure.
He said that while they were disappointed with the government, the unions would also approach the court for relief. “The government has a big responsibility in determining minimum wages as an estimated 1.8 crore people are the beneficiaries. However, it was done in such callous manner and we will question legality of the notifications.”
