Question : Minimum Wages Act

(a)the total number of contract/casual workers including those appointed/engaged in Government Departments and Public Sector Units in the country during each of the last three years, State/UT-wise and sector-wise;
(b)whether the Government proposes to fix Rs.10,000/- as minimum monthly wage for contract workers in the country and if so, the details thereof indicating the number of times the minimum wages of contract workers have been revised during the said period;
(c)whether the said proposal has been opposed by various trade unions and if so, the details thereof along with the response of the Government thereto;
(d)the monitoring mechanism put in place by the Government to ensure that the workers are paid minimum wages as stipulated under the Act and not subjected to any form of exploitation;
Contd..

(e)whether the Government is aware that very small percentage of contract workers are covered under the Contract Labour (Regulation and Abolition) Act, 1970, out of crores of contract workers in the country and if so, the reasons therefor and the action taken/being taken by the Government in this regard; and
(f)whether instances of violation of Minimum Wages Act, 1948 have been reported/come to the notice of the Government during the said period and if so, the details thereof and the action taken thereon, State/UT-wise?

Answer given by the minister

MINISTER OF STATE (IC) FOR LABOUR AND EMPLOYMENT
(SHRI BANDARU DATTATREYA)

(a): The total number of contract labourers both in organized and unorganized sector engaged on the basis of license issued under Contract Labour(Regulation & Abolition) Act, 1970 in the Central Sphere for last 3 years is given below:-
Year No. of Contract Labour
2012-13 1804389
2013-14 1967747
2014-15 1903170

The data in respect of casual workers in not centrally maintained.
(b) & (c): Considering the reality of industrial practices as well as the wage security for the contract workers, proposal for rationalization of wages for contract workers, so as to ensure that the minimum monthly wage of such workers does not fall below Rs. 10,000/-, was under consideration of the Government. After due deliberation, a draft Notification for amending Rule 25(2)(iv) of the Contract Labour (Regulation & Abolition) Central Rules, 1971 has already been issued to give effect to the above stated objective and comments of stakeholders were solicited vide Notification No. G.S.R. 368(E) dated 30.03.2016. All comments/suggestions received from stakeholders within the prescribed time limit are under examination. The final notification will accordingly be issued after consideration of the suggestions and approval of the competent authority.
The minimum wages for the Contract Workers employed as Scheduled Employment are revised twice in a year i.e. in April and October by adding Variable Dearness Allowance in the basic rate.
Contd..
(d): A well-established Central Industrial Relations Machinery (CIRM) is in place to enforce various labour laws including the Minimum Wages Act, 1948. The country-wide CIRM network of Dy. Chief Labour Commissioners and Regional Labour Commissioners under the control of Chief Labour Commissioner (Central) is mandated to settle the complaints/claims arising out of non-payment or payment of lower wages. Besides, a grievance redressal mechanism exists in the States/UTs in respect of the grievances pertaining to establishment coming under the State Sphere.
(e): The Contract Labour (Regulation & Abolition) Act, 1970 does not cover those contract workmen who are employed in an establishment where less than twenty workmen were employed on any day of the preceding twelve months. However, the number of contract labourers engaged on the basis of license issued under Contract Labour (Regulation & Abolition) Act, 1970 in the Central Sphere for last 3 years has been furnished above in reply to part (a) of question.
(f): The details of inspections conducted under Minimum Wages Act, 1948 is given below :-

Particulars 2013-14 2014-15 2015-16
No. of inspections conducted 13099 6582 9803
No. of irregularities detected 129341 68747 75938
No. of prosecutions launched 5167 3774 1549
No. of convictions 5074 2782 1476

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