Labour intensive MSMEs upset over amendments proposed in the Contract Labour Central Rules

New Delhi, Apr 13 (KNN) Some of the amendments proposed in the Contract Labour Central Rules are detrimental for the MSME sector and can lead to closure of several units in the labour intensive sectors, according to an entrepreneur from the textile sector.

Upset over the proposal of minimum wage of Rs 10,000 for contract workers among others, the Managing Director of Neetee Clothing, Animesh Saxena said, “Garment industry is a labour intensive sector which uses maximum labours amongst all sectors. If the proposal is accepted, it will harm the industry.”

The garment industry is second employer in the country where an uneducated labour can learn the work skills within four weeks; Saxena said adding that the industry will face a major setback if any such law is enforced.

Elaborating further, the entrepreneur said that India’s competitors in the textile sector like Bangladesh and Myanmar have wages as low as 3600 and 3200 in their respective currencies respectively. Because of such reasons we are less competitive as compared to them now, he said.

Business won’t be viable in this condition, he added.

Meanwhile, he said that industries like automobile can afford the labour at this rate.

On the contrary, the Central Indian Trade Union (CITU) has criticised the draft Contract Labour Rules and has demanded to increase the minimum wage to at least Rs 18000/- at the current price level along with the provision for indexation.

This not an arbitrary demand and the Seventh Pay Commission also made similar recommendation. This is as per the formula decided by the Indian Labour Conference supplemented by the Supreme Court Judgment in Raptakkos Brett Case and this formula has been unanimously endorsed by the 44th Session of Indian Labour Conference and reiterated again unanimously by the 46th ILC.

This formula must be made a part of the Minimum Wages Act and this Act should be amended accordingly instead pursuing the Wage Code Bill, said CITU. (KNN Bureau)