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AEPC wants clarity on minimum wages for garment sector
18 Aug '17
2 min read
The Apparel Export Promotion Council (AEPC) has urged the Indian Government to clear the confusion over minimum wages for the garment sector after the wage code bill was cleared by the cabinet in July and clarify that the minimum monthly wages are not going to be fixed at Rs 18,000. A clarification will restore the confidence of foreign buyers, it said.
The confusion has affected booking of export orders, AEPC chairman Ashok G Rajani wrote to the textile ministry, according to a press release from the council.
Incorporated in 1978, AEPC is the official body of apparel exporters in India that assists exporters as well as importers abroad who choose India as their sourcing destination for garments.
The cost of wages in the garment export sector is around 30 per cent of freight on board (FOB), the highest by any standard and the apparel industry is passing through a challenging phase due to slowdown of world economy, feels APEC.
Doubling the minimum wages from the present about Rs 9,000 per month will make garment manufacturing unviable and unsustainable and affect employment in the sector, said APEC. Moreover, it will have an adverse impact on women as around 70 per cent of the workforce in readymade garments Industry is women.
The percentage raise in the monthly minimum wage will be close to 250 in many states where readymade garment exports are concentrated.
Garment exports in July 2017 registered a negative growth of 11.86 per cent in dollar terms compared to July 2016. (DS)
The confusion has affected booking of export orders, AEPC chairman Ashok G Rajani wrote to the textile ministry, according to a press release from the council.
Incorporated in 1978, AEPC is the official body of apparel exporters in India that assists exporters as well as importers abroad who choose India as their sourcing destination for garments.
The cost of wages in the garment export sector is around 30 per cent of freight on board (FOB), the highest by any standard and the apparel industry is passing through a challenging phase due to slowdown of world economy, feels APEC.
Doubling the minimum wages from the present about Rs 9,000 per month will make garment manufacturing unviable and unsustainable and affect employment in the sector, said APEC. Moreover, it will have an adverse impact on women as around 70 per cent of the workforce in readymade garments Industry is women.
The percentage raise in the monthly minimum wage will be close to 250 in many states where readymade garment exports are concentrated.
Garment exports in July 2017 registered a negative growth of 11.86 per cent in dollar terms compared to July 2016. (DS)
Fibre2Fashion News Desk – India
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