Black Friday is Now! Don’t miss out on up to 60% OFF InvestingProCLAIM SALE

Indian textile workers demand enforcement of 30 percent pay hike

Published 07/09/2016, 14:30
Updated 07/09/2016, 14:40
Indian textile workers demand enforcement of 30 percent pay hike

By Anuradha Nagaraj

CHENNAI, India (Thomson Reuters Foundation) - Hundreds of textile workers in India's Tamil Nadu state have launched protests to demand that the first minimum wage increase in the southern state in more than 12 years is enforced.

In July, the Madras High Court ordered a pay rise of up to 30 percent for hundreds of thousands of garment workers in Tamil Nadu, but appeals by manufacturers against the order have left workers in limbo, labour unionists said.

Under the 1948 Minimum Wages Act, state governments are required to increase the basic minimum wage every five years to protect workers against labour exploitation, but textile manufacturers have repeatedly challenged pay rises in Tamil Nadu.

"The government must enforce the minimum wage notification," said S Elizabeth Rani, general secretary of the Garment and Fashion Workers Union, in a statement.

"Our wages have stagnated while the cost of living keeps increasing. Many of us are single parents and sole wage earners."

About 50 protesting workers were arrested near the port city of Chennai last week before being released without charge.

Under the court ruling, workers would see their pay rise from a monthly average of 4,500 rupees to 6,500 rupees ($68 to $98) - which campaigners say is comparable to wages for textile jobs in most other states.

But manufacturers in Tamil Nadu say the hike is too high, putting them at a disadvantage to competitors in other states.

"States cannot have their own way of fixing wages without understanding the reality and the background," K.Venkatachalam, chief advisor of the Tamil Nadu Spinning Mills Association, told the Thomson Reuters Foundation.

"If such decisions are taken, industries would attempt to move to a state where they feel comfortable with labour policies."

India is one of the world's largest textile and garment manufacturers. The $40-billion-a-year industry employs around 45 million workers. Many of them are trapped in debt bondage, face abuse or are forced to work long hours in poor conditions, campaigners say.

"Manufacturers must recognise that this is a labour intensive unit requiring highly skilled workers," said Sujata Mody, President of the Garment and Fashion Workers Union.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.