70% Hike is Illogical & Untenable: PIA President

[vc_row][vc_column][vc_column_text]Sri R. Krishnamurthy, President and Sri M. Malayadri Reddy, Vice-President took part in the meeting at KASSIA on “Minimum Wages re-notification on Schedules” on Feb 15.

Presently, the Micro and Small Scale Entrepreneurs in Peenya are highly perturbed about the hike in minimum wages from Rs 6,000 to Rs 10,000. Flaying the move, Sri R. Krishnamurthy, President, PIA remarked that there was no rationale in the hike. As he explained, “The hike works out to nearly 70%. To expect a small entrepreneur to absorb such a raise in wages at a time when he is grappling with the effects of demonetization in a low demand market and faced with ever thinning margins, is totally illogical and completely unfair.”

The PIA President put it in the right perspective when he pointed out that a 70% hike is unheard of even in government employment and in the IT sector. “And they are imposing this on a small scale industrialist who has virtually no comparative support by way of infrastructure or otherwise from the Government! If the State Government does not review this hike in minimum wages, the MSMEs will either shut down their units or migrate to a neighbouring State to do business. PIA appeals to the State Government to reconsider the hike and will continue to fight for justice for the small scale entrepreneurs till their voice is heard,” he declared.

Bill to levy hefty fine on minimum wages defaulters: A Bill that proposes to enhance the fine that can be imposed on Employers who do not pay minimum wages to employees from present Rs 500 to Rs 10,000 was tabled recently in the Legislative Assembly.

The Minimum Wages (Karnataka amendment) Bill, 2017 retained the penal clause of one-year imprisonment for not paying minimum wages. It also proposes that an assistant labour commissioner will be the competent authority to hear applications that minimum wages were not being paid.

The minimum wages in Karnataka varies for different sectors and is divided into 74 categories.

Decrying the move, Sri R. Krishnamurthy, President, PIA said this was another anti-industry move that would damage the image of the State. “The proposed levy of fine on Employers not paying the minimum wages is 20 times more than the prevailing fine, and by any yardstick it is not tenable. At a time when we are worried about the hike in minimum wages, the Labour Ministry should not have come up with such a proposal that will further alienate the micro and small entrepreneur from the establishment,” he lamented.[/vc_column_text][/vc_column][/vc_row]