New Delhi: Following Supreme Court’s order on October 14 in favour of the Delhi government’s notification on revised minimum wages, workers in the capital will be entitled to one of the highest minimum wages in the country. “The enhanced minimum wages for unskilled workers have been fixed at Rs 14,842 per month, for semi-skilled workers at Rs 16,341 per month and for skilled workers at Rs 17,991 per month,” PTI reported.
Delhi chief minister Arvind Kejriwal has claimed that around 55 lakh contractual workers in the National Capital Region (NCR) will benefit from the increased wages and that it will reduce poverty and help in dealing with the current economic slowdown.
The current national-level minimum wage is Rs 4,576, at least three times less than the revised amount in Delhi. A government appointed sub-committee had recently suggested increasing the national-level minimum wage to Rs 9,750 a month.
The Centre had, however, rejected the proposal. The Economic Survey for 2018-2019 had also pointed out that “a well-designed minimum wage system can be a potent tool for protecting workers and alleviating poverty, if set at an appropriate level that ensures compliance”.
Contrary to claims of industry bodies and employer organisations that higher minimum wages can adversely affect employment generation, the survey had also said that it would have little impact on job creation.
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However, traders’ organisations are not exactly happy with this decision. In a letter to Kejriwal, the Confederation of All India Traders (CAIT) has said that increasing minimum wages has put “high financial pressure” on traders and employers in Delhi.
In a press conference, Kejriwal said workers will also get dearness allowance for the months of April to September and one month’s salary as Diwali bonus. The Delhi government’s notification came in March 2017 itself but 44 employers’ associations took the matter to the Delhi high court which ruled against the notification.
The Delhi government then challenged the HC order in the apex court and has got a favourable judgment. Trade unions have welcomed the decision but are not pleased with the delay. “The tactics of employers to delay notification of minimum wages has already caused much loss to workers. Many workers including those of Delhi Transport Corporation had to resort to strike as well,” Abhishek, general secretary of All India Central Council of Trade Unions (AICCTU) Delhi told The Wire.
When compared to other states, this raise is significant but central trade unions that have been demanding a hike in minimum wages in accordance with the Supreme Court’s judgment in the Raptakos Brett case feel it is insufficient, especially in a place like Delhi where the cost of living is high. The seventh pay commission also recommends minimum wages at Rs 18,000 per month, much higher than the revised wages in Delhi (Rs 14,842).
दिल्ली के मजदूरों के लिए @ArvindKejriwal
का बड़ा तोहफ़ा- देश में सबसे ज्यादा मिनिमम वेज दिल्ली में। अकुशल मजदूरों को अब मिलेंगे ₹ 14,842 प्रति माह। pic.twitter.com/BghA7oll0V— Gopal Rai (@AapKaGopalRai) October 28, 2019
Pointing to flaws in implementation, Abhishek says the Delhi government’s “attitude towards workers” is unlikely to make implementation of minimum wages successful. “The number of inspectors in the labour department is abysmally low, the pendency of cases relating to minimum wages is too high as per CAG reports. It often happens that a worker who approaches the labour department is immediately retrenched. If they try to unionise, they face dismissals…this cannot help in the implementation of minimum wage rates,” he added.
Trade unions don’t seem convinced that the state government is as pro-working class as it is being made out to be. They say that the Lieutenant Governor, the chief minister and the labour minister do not hold regular meetings with trade unions. “Many workers like domestic workers and scheme workers still remain outside the purview of the Minimum Wages Act. Thousands of security guards employed in Delhi continue to be classified as unskilled workers. Most of the factories and establishments do not even care to put up display boards as mandated by the law,” a statement by All India Central Council of Trade Unions
read.
Trade union activists claim that many concerns remain unaddressed for workers in Delhi. They say that while the court has done its part, it is now the state government which must take up the issue of non-implementation of minimum wages.
On the other hand, traders’ body Confederation Of All India Traders has demanded a roll back of this notification, claiming that the Delhi government didn’t hold any consultation with traders or assess the impact of the decision prior to announcement.
“Delhi trade which has been acknowledged as the largest distribution point of goods in the country is already reeling under an unprecedented slowdown and the traders are finding it difficult to survive in the business. The steep hike in minimum wages will result into unnecessary huge financial load on the traders,” CAIT secretary General Praveen Khandelwal said in a statement.
CAIT had also issued a statement recently after observing a ewsteep decline in sales of gold, silver, utensils, kitchen equipment and electronics on the day of Dhanteras. “If the government does not pay attention to the woes and concerns of retail trade in time and if necessary steps are not taken, the country’s retail business will be badly affected, which will have a direct impact on the country’s economy,” they said.
