21/7/2016
Source: The Economic Times
COIMBATORE: The Madras high court court has ordered a pay rise of up to 30 per cent for hundreds of thousands of garment workers in the southern state of Tamil Nadu, the first minimum wage hike in more than 12 years.
But lawyers for 500 clothing manufacturers and exporters, who supply many international brands, said the new wages would be "practically impossible" to introduce given the tough global market conditions. The Tamil Nadu government had notified separate minimum wages for the hosiery segment that covered export units as well, which would not be impacted by the move, top industry officials said.
Only about 20,000-30,000 of the 3 lakh-odd workers in garment units would be covered by the hike in minimum wages. Since a large number of workers in knitted garment factories work on a job rate, piece rate and contractual basis, there would be no impact on the industry, officials said.
Interestingly, the agitation over premature withdrawal of provident fund (PF) that turned violent in Bengaluru in April, did not create any ripples in Tirupur, the largest knitwear production cluster in the country .
"Most workers in knitwear units are employed on a contractual basis and do not get ployed on a contractual basis and do not get benefits such as PF and gratuity ," industry sources said. The state government increased minimum wages by nearly 30% for garment units in 2014. While makers of woven garments went to the court opposing the move, knitted garment manufacturers approached the government, which notified separate minimum wages for these units. Both knitted and woven garment units had to pay minimum wages of about Rs 7,500 per month before the hike.
But with the woven units challenging the hike, knitted garment makers who did not opt for the legal route got minimum wages for their units fixed at around Rs 9,600 per month. This is almost Rs 1,100 lower what woven garment units were to pay after the hike.
