Labour department to send minimum wage revision proposal to state government shortly.
The labour department is all set to send the proposal of hike in minimum wages to the state government but the industries are terming it a regressive step. According to the industries, the move would deter investors apart from hampering the existing industries.
Significantly, once the proposed rates of wages comes to force, the Madhya Pradesh would become highest wage (minimum) paying state in the country.
Labour Commissioner CK Gupta on the issue said that the last revision took place in 2008 and by calculating 7.5 % annual revision in basic pay, the minimum wages are proposed to be hiked by 35% for the five years.
Before assembly elections, the revised proposal was sent to the state government and the Principal Secretary (Health) had asked us to rationalise the rates vis-à-vis wages fixed by the Centre, Gupta said. He added that the Centre is due to revise rates and after the revision, their rates would come to almost at par with our proposed rates.
Within ten days or so, we would send the proposed rates to the state government, Gupta claimed. The industries, however, are already reluctant to the revision by claiming that MP already pays high wages.
Gautam Kothari, president of Pithampur Audyogik Sangthan alleged that on one hand, the state is alluring investors while on the other, steep wage revision is brought about. “The labourers are already pampered with sops like Rs 1 or 2 food grains so high wages would only lead to absenteeism and the manufacturers would be propelled towards automation,” he opined.
Echoing similar views, Association of Industries Madhya Pradesh (AIMP) ex-president Vinay Kalani told dna that 1.68 lakh SME units in MP are pitted against cut-throat competition from industries from China, Bangladesh and others, so wage revision is a bad idea in current scenario. “Instead, the government should go for skill development, so that the labourers would automatically get higher wages,” he suggested.
MC Rawat, secretary of MP Textile Mills Association said that wage revision should not be done randomly. It should be linked to per capita income which is quite low in MP. Last time as well, the wage revision was undertaken in improper way and the matter is sub judice and this time again, no public notice has been issued regarding the wage revision.
MSMEs mostly affected by minimum wages
The minimum wages mostly affect Micro, Small and Medium Enterprises (MSMEs) which have strict cost constraints and pay wages by keeping benchmark of minimum wages like textile mills, food processors, readymade garment manufacturers, manufacturers of plastic items etc.
However, minimum wages don’t matter much to the big companies which hire skilled workers and pay them much more than the minimum wages. These include manufacturers from pharma, automobile, electric goods and other areas.
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