Kanpur chamber against paying minimum wages

While the workmen of Kanpur are planning to march to Lucknow to press for the implementation of minimum wages and a speedy reopening of the closed factories, the Indian Industries Association has set its face against granting any concession on minimum wages.

IIA President Tarun Khetrapal told Business Standard on the sidelines of the association's AGM, "We are in no position to pay minimum wages. Fifty of the units are sick. Minimum wages mean more closure."

There is huge unemployment in the state. What the government should be doing is to increase employment by giving more incentive to industry, which shall automatically result in increase in employment and this will give rise to wages. Now wherever we require we even employ persons by paying them even Rs.5000.

He said that the government cannot concentrate on many issues simultaneously. First it should concentrate on the development of infrastructure. If this is not done no investor will come to the state. The inspectors are giving wrong information to the government and are trying to interfere again in the industry.

The government should give more encouragement to industry, since that is the only way to increase employment. The point is that China which is a communist country can ensure that the labour remains disciplined , why it cannot be done in India? he said.

When asked , what you had in mind when IIA had said that they will discuss with the trade union leaders ?Khetrapal said , that they should consider first of all how the new industry can be brought in?How maximum facility can be given to them?

Once new industry is brought in, which will create greater employment and that will give rise to wages as well.Till that happens there is no way these can be increased.

The IIA had meanwhile , went to the High Court Allahabad in a writ petition, where it obtained partial relief only.Its plea was that the operation of the Minimum Wages promulagated by the state government, should be stayed.

It argued that by notification dt 4.2.2000 the state government had invited objections under section 5(1) (b)of the minimum wages act ,1948, for raising the minimum wages for various classes of workmen however no notification was issued at that time.

But the government has issued a notification now on 24.2.2006, where the wages for the various classes of workmen have been raised. Therefore this the IIA has argued is not permissible under law.

The state counsel had responded that but for increase in dearness allowance , the wages of the period would more or less be the same. But he had sought further time to respond.

The IIA had expressed apprehension that the state may initiate criminal proceedings against them and had sought relief on this as well.

The high court, in an interim order , while restraining the state from initiating any criminal proceedings , did not stay the notification.

This where the matter rests.