The increase in the minimum wages proposed by the Karnataka government has drawn protests from the industry. On April 11, the government issued a draft notification proposing an increase in minimum wages across various sectors for unskilled, semiskilled, skilled and highly skilled workers.
If implemented, the wages could range from Rs 989/day for a sanitation worker to Rs 1,196/day for a highly skilled worker in a small or medium-sized industry. Small and medium industries associations have already warned the government that it would land them in a crisis, and some industrial units could be looking at closure.
But trade unions have supported the government’s decision, saying the cost of living has skyrocketed in the past few years, and the present wages are not enough. All India Central Council of Trade Unions (AICCTU) lawyer Maitreyi Krishnan said the increase still fell short of what they had proposed after field-level visits. “We had done an on-the-field survey in 2021. At that time, we found that the average minimum wage required was Rs 35,000. And if you calculate it for today, it would be Rs 42,000. The law is very clear on this. If you pay less than minimum wage, then it amounts to forced labour.”
Speaking about the opposition from the industry, Maithreyi said that industries have been doing well, and there was a protest every time an increase was proposed. “Minimum wage is the bare minimum. And this amount has been quantified. It's supposed to take into consideration food, clothing, housing, education and other miscellaneous things. Now, where can you have a family of four survive for an amount of Rs 20,000 or Rs 21,000 in Bengaluru? Who can do it? It's impossible,” she said.
She also criticised the wage ceiling of Rs 21,000 under Employees’ State Insurance (ESI), through which people can access health and allied benefits, calling it “absurd.” The increased wages might make this inaccessible to people who have wages higher than Rs 21,000. Trade unions have been demanding that the Union government raise this ceiling to accommodate growing salaries; however, there has been no progress on this count.
Another cause of concern is that increased minimum wages might aggravate an already existing trend of hiring migrant labour (especially unskilled) for a lower cost and force out people who demand the correct minimum wages. This is a sore spot, as there is no enforcement on the part of the Karnataka Labour Department, which has been enthusiastic about promoting higher minimum wages.
“The Department has to be strengthened. Firstly, there is a high level of vacancy. Secondly, the number of sanctioned posts is very low compared to other states. There is no point in having a law if you don't have an enforcement mechanism. The fact is that if workers ask for minimum wages, they will be thrown out. That's what is happening everywhere, including in government organisations, like where they are under contract,” Maitreyi said.
She believes that resistance to paying minimum wages would drastically decrease with better enforcement mechanisms.
Enforcement might be more difficult than expected, as the new labour codes that are going to kick in soon might dilute the enforcement system.
While industries like power generation will see unskilled workers being paid Rs 25,714/month, unskilled workers in sectors like fertiliser and chemical manufacturing will get Rs 21,251. The lowest is for unskilled workers in the garments, agarbathi and beedi rolling, brick manufacturing and silk production sectors, where the minimum wage recommended is Rs 19,319.