Skip to main content

Centre hikes minimum wages and bonus, trade unions not impressed

The Centre on Tuesday  increased the minimum wages and bonus for its employees to pacify trade unions that have called a nationwide strike on Friday.

The Minimum Wage Advisory Board on Tuesday announced a hike in the lowest wage for unskilled central government workers to Rs 350 a day from Rs 246. The increase will also be effective for central public sector undertakings.

“The government has effected a 43 per cent increase in the minimum wage. This was a major demand of the trade unions,” Union Labour Minister Bandaru Dattatreya (pictured) said.

Dattatreya has held meetings with trade unions over their charter of demands. The issues have been taken up by an inter-ministerial committee headed by Finance Minister Arun Jaitley.

“The bonus entitlements for 2014-15 and 2015-16 will be released on revised norms. This was pending for two years. After this, the bonus will be covered under the Seventh Pay Commission,” Jaitley said.

The Payment of Bonus Act, 2015, doubled the statutory bonus paid to central government employees and made more workers eligible by raising the salary ceiling from Rs 10,000 a month to Rs 21,000. The Bill was to be effective from April 2015 but was made applicable from April 2014 on a personal intervention by Prime Minister Narendra Modi.

The likely financial implications of the higher bonus could be Rs 1,920 crore per annum.

On the opposition to the government’s plans to merge associate banks of the State Bank of India with the parent, Jaitley said, “The merger is not a subject for trade unions.”

“There will be no impact of the  merger on the service conditions of any employee. If the government decides that we need strong banks, then unions will have to change their approach to the whole issue,” Jaitley said.

The issue of providing social security benefits to the unorganised sector like anganwadi, mid-day meal and Asha volunteers will be examined by a committee that will submit its report at the “earliest”.

Jaitley said the registration of  contract workers and their staffing agencies was mandatory and states would be advised to strictly implement it. Contractors would face appropriate action for any violation, he warned.

The Bharatiya Janata Party’s trade union wing Bharatiya Mazdoor Sangh (BMS) said it would not participate in this week’s strike. “The BMS is withdrawing from the strike as the government has taken progressive steps,” said V Upadhya, general secretary of the BMS.

Left-leaning trade unions, however, said they would proceed with the strike. “The announcement on daily wages merely maintains the status quo,” said Tapan Sen of the Centre of Indian Trade Unions. “No major demand has been accepted. There is no question of calling off the strike,” he added. As many as 10 central trade unions had given the call for a one-day pan-India strike on September 2 to protest against the government’s labour reforms.

LABOUR LOVE
 
  • The Minimum Wage Advisory Board announced a hike in the minimum wage for unskilled central government workers to Rs 350 a day from Rs 246
  •  The Payment of Bonus Act, 2015, doubled the statutory bonus paid to central government employees and made more workers eligible by raising the salary ceiling from Rs 10,000 a month to Rs 21,000
  •  Bharatiya Mazdoor Sangh  will not participate in this week’s strike

Business Standard, New Delhi, 31 August 2016

Comments

Popular posts from this blog

Govt’s gamble on GST cuts: What do the bond and currency markets signal?

  It’s not just humans who suffer from cognitive biases; markets do too. Interestingly, different financial markets exhibit distinct biases, each interpreting events through its own prism of prejudice. Take the recent announcements on GST reforms: equity markets have chosen to view them through the lens of growth, while bond and currency markets are focusing on potential macroeconomic risks—fiscal pressures and current account challenges. So, which lens captures the true pulse?Equity markets may be right in expecting GST reforms to revive consumption, which has remained lacklustre for a while. But the key question remains—will this revival come at the cost of broader macro stability?It is well known that consumption stocks have rallied since the GST rationalisation announcement. But what about bond markets? What signals are they sending since this rejig was announced from the ramparts of the Red Fort?The signs aren't encouraging. Bond prices have slumped and yields have surged sinc...

Luxury carmakers urge clarity on GST rates to boost festive season sales

  A clear picture regarding new GST rates at the earliest will help the overall auto industry, including the luxury car segment, to regain momentum in the ongoing quarter, which generally sees enhanced sales on account of the festive season.The high-powered GST Council, chaired by Finance Minister Nirmala Sitharaman, will meet on September 3-4 to discuss moving to a two-slab taxation.In an interaction with PTI, BMW Group India President and CEO Hardeep Singh Brar said the recent speculation about the change in GST rates has caused uncertainty in the minds of consumers.Consumer interest and demand is strong, but they (prospective buyers) have adopted a wait-and-watch approach, and this delayed decision-making is impacting new vehicle sales at a certain level, he noted."Expediting clarity on GST rates is essential to get back to speed and ensure the auto sector's contribution to economic growth during this quarter is robust," Brar stated.He also hoped that the sustainable p...

Sebi proposes tighter norms for green bond third-party reviewers

  Sebi on Friday said it has proposed to tighten the norms to appoint independent third-party reviewers or certifiers for green debt securities to align them with requirements for other ESG-linked bonds.In a draft circular, Sebi said that the current norms for green bonds, introduced in February 2023, lack detailed requirements around reviewer independence, conflict of interest mitigation, and disclosure standards that are now in place for other ESG-linked securities under a June 2025 circular.The regulator's latest proposal seeks public comments on a revised framework that would bring parity by incorporating comprehensive criteria for third-party certifiers of green bonds on non-convertible securities.Under the proposed norms, issuers of green debt securities will need to appoint reviewers who are independent of their management, directors, and key managerial personnel. These reviewers will be remunerated in a way that prevents any conflicts of interest and possess relevant expert...