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Haryana textile industry upset over increase in minimum wage allowance

Updated: Nov 12, 2013 03:09:44pm
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Gurgaon, Nov 12 (KNN) Industry associations in Haryana are upset over the enhancement of minimum wage allowance for the workers, announced by the Haryana chief minister Bhupinder Singh Hooda during his rally on Sunday.

Ahead of the 2014 Lok Sabha and assembly elections, Hooda announced a series of incentives for all sections of the society, including enhancement in old age allowance, as well as pension for widows and the handicapped.

He enhanced minimum daily wages, and also announced the implementation of new schemes for farmers and agriculture labourers, livestock, one time settlement scheme for cooperative loans and enactment of new legislation for those operating rehri/fadi.

The chief minister said the minimum wage for workers in the state would be increased to Rs 8,100 per month from the existing Rs 5,342 per month. 

The textile and garment industry in the state are already facing the burden of recently levied 5 per cent VAT, high transportation costs, fuel price hike and power problems.

“The Chief Minister has made the announcement in the rally to increase the minimum wage allowance for the workers from Rs 5342 to Rs 8100. The notification will be release soon, within 2-3 weeks,” said President of Udyog Vihar Industries Association.

“The move will destroy the textile and garment industries here, especially in Gurgaon and Faridabad as it’s a completely labour intensive sector,” Saxena said.
The industry he said, cannot afford the hike as they cannot ask their buyers to pay more money.  

The Rs 400 crore worth textile industries of the National Capital Regions of Gurgaon and Faridabad are facing more problems because of higher cost of production, as neighbouring New Delhi, has lesser price of the same goods due to lower cost of production. The power situation in the national capital is better than the NCR and also, there is no such VAT on textile and garments.

“The industry is very upset with the announcement and we will have a meeting soon to discuss the issue. We will even write to the Chief Minister and the Chief Secretary of the state, that the move will destroy this sector,” Saxena added.

The other incentives that the Chief Minister announced were insurance and compensation policy for farmers, farm labour and factory workers in case of death or disability. 
Hooda announced that over 65,000 posts lying vacant in various government departments shall be filled within one year and given to unemployed youth. 

He also announced that the backlog of over 15,000 posts for Scheduled Castes and Other Backward Classes will also be filled within one year. (KNN/SD)

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