Delhi MSMEs upset with AAP Govt over wage hike; foresee multiple impacts on industry

New Delhi, Aug 24 (KNN) Delhi based micro, small and medium enterprises (MSMEs) have said they are not prepared to revise the minimum wage from Rs 9,500 to Rs 14,000 due to existing financial stress.

Talking to KNN, Sanjay Gaur, President of Patparganj FIE (Functional Industrial Estate) Entrepreneurs Association, said, increase in wage would not only put a strain on the local industries but would also lead to migration of labourers in large scale from neighbouring states.

Recently, Labour Minister of Delhi, Gopal Rai, had said that the government is committed to implement the new structure revising the minimum wage from Rs 9,500 to Rs 14,000.

Implementation of previous structures, Rai said, was lackadaisical as penalty provisions were weak with a fine of Rs 500 and a jail term of six months.

"We have proposed to increase the fine to Rs 50,000 and the jail term to three years," he said 

FIE President Gaur said that the earlier law of minimum wages is not being implemented with an effective way.

He said, “Labour inflow from adjoining states will increase in Delhi due to increase in wages. As a result of this local people here will not get proper jobs. The main aim of this decision as said by the government to rise the standard of people is going to fade away.”

He informed that many industries are preparing to move out of Delhi after passage of Goods and Services Tax (GST) bill and this decision will work as a catalyst.

“Firstly, Government should ensure the implementation of previous announced wages,” the President suggested.

Sounding in the same tune, Ramesh Khanna, Delhi President of Confederation of All India Traders alleged that Delhi government did not consult with the stakeholders before taking the decision. A discussion with the stakeholders was much needed for this.”

Khanna said, “We are not against the increase in wages but such a huge increase can have multiple impact on the industry. We are not opposing this decision fully.”

He alleged that the Aam Admi Paty (AAP) government led by Chief Minister Arvind Kejriwal is merely taking decisions to seek political benefits. This decision has been taken keeping in mind the single sided view. (KNN Bureau)