Home / Knowledge / News / Apparel/Garments / AEPC opposes govt proposal to hike contract wages
AEPC opposes govt proposal to hike contract wages
29
Apr '16
The Apparel Export Promotion Council (AEPC) has opposed a Labour Ministry proposal to set the minimum wage to be paid to contract labourers at Rs 10,000 per month.

It said such a move would drive up the costs for the labour-intensive apparel sector and drag down garment exports by 10 per cent, or Rs 11,000 crore, a year.

“The industry witnesses peak demand between October and February, while orders decline by around 30 per cent in other seasons. With the proposed increase in wages, the industry will not be able to exercise its flexibility of engaging more labour to meet its peak-time requirements and will lose to competitors in Bangladesh and China, who already have a cost advantage,” said AEPC Vice Chairman HKL Magu.

The Labour Ministry had recently proposed amendment of the Contract Labour (Regulation and Abolition) Central Rules suggesting Rs 10,000 as the minimum payable wage to contract labour. The Ministry’s initiative is part of the government’s efforts to check exploitation of labour employed by the industry on a contractual basis.

According to the AEPC, if the provision is uniformly implemented across all States, the result will be over 90 per cent increase in wages for contract labour in States such as Odisha and Rajasthan and over 30 per cent in most other States.

Apparel companies will effectively have to pay Rs 14,100 to a contract labourer after factoring in increase in PF (12 per cent), ESI (4.75 per cent) and Bonus (8.33 per cent) and service tax, Magu said.

He argued that the Labour Ministry’s proposal is arbitrary, as wages are fixed according to the work performed and on the basis of skills of a labourer. (SH)

Fibre2Fashion News Desk – India

Must ReadView All

Textiles | On 10th Dec 2016

India’s 2016-17 cotton import to touch 17 lakh bales

The import of cotton from international markets by spinning mills in...

Textiles | On 10th Dec 2016

US textile & apparel imports fall 6.50% in Jan-Oct ’16

The import of textiles and apparel by United States dropped 6.50 per...

Textiles | On 10th Dec 2016

Indian textile hubs adopt cashless payment modes

The textile ministry is promoting cashless payment within the...

Interviews View All

Asim Dalal
Indo Count Retail Ventures

Today, there is no other emerging market as India, "we make in India and...

Cyril Pereira
Reed Exhibitions India, organiser of Asian Machine Tool Exhibition 2016

'Major problem in the textile machinery manufacturing industry is the lack ...

Sunil Rathore
Lacoste India

‘New vendor is welcome if he offers cost, quality and timely delivery’

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
December 2016

December 2016

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


Advanced Search