States Asked To Hike Minimum Wages To Rs 40

Prime Minister Atal Bihari Vajpayee has written to all state chief ministers to raise the minimum wages to Rs 40 a day in view of the rise in the floor level of the Consumer Price Index in the past two years.

In another move, Union labour minister Satyanarayan Jatia has asked all Central public sector undertakings to clear the arearers in statutory dues and unpaid wages which amounted to Rs 1,003 crores in June,1998.

The problem of unpaid dues by sick public sector undertakings is expected to ease in view of the finance ministry's decision to extend budgetary support for wages on gross basis rather than the current practise of reimbursing the PSUs on a net basis, the labour consultative committee was informed at a meeting here yesterday.

This is part of the Centre's efforts to persaude states and Union territories to abide by the spirit of the Minimum Wages Act, which is often neglected.

Beside inadequate implementation efforts, states are also reluctant to raise the level of minimum wages because it affects their own budgetary situation.

State governments are among the biggest employers of casual workers who work in different development projects and schemes covered by poverty eradication programmes. States usually prefer to pay less in order to employ more people within their budgetary limits rarther than raise the level of minimium wages.

Besides, they are also under pressure from lobbies of employers in both industrial and agriculture sector.

In his letter, the Prime Minister has also emphasised the need to ensure timely payment of wages under the Payment of Wages Act.

He pointed out that the national agenda for governance seeks to make labour in both organised and unorganised sectors, equal and proud partners in national production and progress. Jatia assured members of the consultative committee that the labour ministry will not directly or indirectly support any violation of labour laws even by PSUs and resort to drastic legal action against them if they refused to settle the arrears of workers.

Representatives of employer ministries explained that the arrears was the result of the government extending financial support to these public sector undertakings on net basis and not on gross basis as has been decided so far.

They, however, assured the committee that the arearers will be met.