DELEGATION of UCPMA discusses problems regarding minimum wages notifications with Vishwajeet Khanna

Ludhiana, July 10, 2013: A delegation of United Cycle and Parts Manufacturers Association (UCPMA) met Vishwajeet Khanna, Principal Secretary, Department of Labour under the presidentship of Gurmeet Singh Kular, to discuss the problems regarding the minimum wages notifications.
The following is the text related to the discussion-
Bifurcation of Wages

a) The notification provides that minimum wage should be basic rate of wages. No employer can bifurcate the minimum wage.

Request: The minimum wage to be allowed to be bifurcated as per the definition of wages provided in the Act.

b) Hotels, Restaurants, Wine Shops etc have been allowed to reduce their minimum wage by Rs 1,765 per month, if they provide lodging and boarding.

Request: Similar provision to be given for other industries which provide lodging and boarding.

Neutralisation due to change in cost of living Index

This time the neutralisation has been increased from Rs 6.00 to Rs 8.25 per point on the same series. As a result, within six months the minimum wage has been increased by Rs 495 to Rs 5,695 per month. This amounts to annualised 19% inflation whereas adjoining state Haryana the last increase in six months is Rs 234 which is inflation @ 9.6% annualised.

Request: The neutralisation rate should remain at Rs 6.00 per point.

Classification of Workers   

a) Time Scale Promotion- Mandatory time scale promotion is proposed to upgrade the workers from unskilled to semi skilled and further to skilled.

Request: This provision should be withdrawn.

b) Change in Categories- During the last twenty five years, the State Government has followed classification of workers in eight categories having a very judicial difference in the minimum wages after detailed exercise done in the structure of classification in 1979. The classification has now been changed to six categories with very aggressive difference in wages.

Request: The existing classification of workers categories should continue with eight categories only.

Remuneration of Trainees

Industry provides training to workers at entry level. Before this notification, the Government has specified 50% of the minimum wage to be paid as trainee allowance. The notification provides that no employer should pay less than minimum wage to the trainees.

Request: The trainee allowance should be restricted to 50% of the minimum wage as specified earlier.

The delegation comprised of S.K Rai M.D of M/S Hero Cycles Ltd, D.L Sharma of CII and Jagatvir Singh of M/S Ason Inds.