Traders against government plan to hike wages

NEW DELHI: Over two dozen representatives of trade and industry bodies met labour minister Gopal Rai on Monday to convey their reservations over the Aam Aadmi Party

NEW DELHI: Over two dozen representatives of trade and industry bodies met labour minister Gopal Rai on Monday to convey their reservations over the Aam Aadmi Party government’s plan to increase minimum wages by at least 30-40%.

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Rai announced last week that a 13-member government panel recommended the hike across all sectors.

T he labour de par tment set up the committee in April to revise minimum wages in Delhi. It will submit its report soon. And the decision on minimum wages for all working classes — unskilled, semi-skilled and skilled — will be taken.

AAP trade wing convenor, Brajesh Goyal, said the traders raised the issue before the minister who promised to forward their concerns to the committee.

“The traders raised the issue of flight of trade to neighbouring states where the minimum wages is already lower than in Delhi. Further increase in minimum wages will hit the small manufacturers who would be forced to relocate. It will also affect the revenue generation of the Delhi government,” Goyal said.

The last revision of wages was done in 1994.

However, the labour department has been notifying increase in Dearness Allowance twice a year – in April and October – based on All India Consumer Price Index Number (CPIN).