Question : VIOLATION OF MINIMUM WAGES LAWS

(a) whether there is large scale violation in implementation of laws regarding minimum wages in different parts of the country and if so, the details thereof and the complaints received by the Government in this regard during the last three years and the current year;

(b) whether in most of the factories, workers work upto 12 hours and their monthly wages are two to three thousand rupees per month only;

(c) if so, whether the Government has any proposal to amend the Minimum Wages Act to link minimum wages of factory workers to the retail inflation rate and enhance penalties for erring companies;

(d) if so, the details thereof and if not, the reasons therefor; and

(e) whether the Government has also constituted any Committee to bring about uniformity in minimum wages across the country and if so, the details in this regard along with the action on the recommendations given by the Committee?

MINISTER OF STATE FOR LABOUR AND EMPLOYMENT (SHRI KODIKUNNIL K SURESH)

(a): No, Madam. Cases pertaining to less payment of minimum wages to workers engaged in various Scheduled Employment are reported and the Office of the Chief Labour Commissioner(Central) through its field offices located all over India ensure payment of minimum wages to the workers in Central Sphere. The office also enforces the provisions of the various labour laws applicable to the establishments falling under the Central Sphere and initiate appropriate action against the erring employers by way of filing prosecutions in the Appropriate Court. In case of payment of wages at the rate less than the rates fixed by the Central Government under the Minimum Wages Act, 1948 action is taken against the employers/contactors by way of filing claim cases by the authority under the Minimum Wages Act. The Authority after hearing the party decides the claim by way of order, directing the employers to make good the difference of wages along with compensation upto ten times of the difference of wages. The statement showing details of enforcement under the Minimum Wages Act, 1948 during the last three years and the current year is enclosed at Annexure.

(b): Central Government is not the Appropriate Government under Factories Act, 1948.

(c)& (d): Minimum Wages are already linked with Consumer Price Index (CPI) for Industrial Worker (IW) in the form of variable dearness allowance (VDA). The VDA is revised twice a year on the basis of CPI (IW) in the Central sphere and added to the Basic Minimum Wage.

(e): The Government has not constituted any such Committee to bring about uniformity in minimum wages across the country so far. However, with a view to have a uniform wage structure and to reduce the disparity in minimum wages across the country, the concept of National Floor Level Minimum Wage (NFLMW) was introduced in 1996 on non-statutory basis. The latest rate of NFLMW is Rs.137/- per day with effect from 01.07.2013.