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TN textile associations agree on 32% wage hike

February 14, 2012 (India)

Three textile associations of Tamil Nadu - Knit Cloth Manufacturers Association (KNITMA), The Tirupur Exporters Association (TEA) and South India Imported Machines Knitters Association (SIIMKA) have approved a wage revision for the workers employed in their member textile units.

The decision about the revision came about during a meeting of trade unions and the associations, specially arranged to discuss the issue in presence of Minister for Hindu Religious and Charitable Endowments (HR&CE) and local MLA, Mr. MSM Anandan. An official agreement to this effect would be signed on February 15 before the Deputy Labour Commissioner.

As per the agreement, the workers would get a 32 percent raise in their basic pay, over a period of four years. The workers would get a 20 percent raise in their wages in the first year and then four percent in each of the three subsequent years.

Besides basic pay, dearness allowance for the workers has also been raised to a minimum of Rs. 880, computed on the basis of a Cost of Living Index of 10,867 points. Workers would get additional 12 paise for every point above the 10,867 index points.

Last month, other leading textile associations in Tirupur knitwear cluster, including Tirupur Exporters and Manufacturers Association (TEAMA), South India Hosiery Manufacturers Association (SIHMA) and Tirupur Export Knitwear Manufacturers Association (TEKMA) agreed to increase the wages of their workers, which came into effect from January 30, 2012.

Subsequently, trade unionists demanded similar wage increase from member textile units of KNITMA, TEA and SIIMKA. Initially, TEA and KNITMA representatives were firm on not granting a wage hike beyond 20 percent. However, they ultimately agreed to their workers demand of seeking parity in wages with workers of other leading textile associations in Tirupur.

The new wages would become effective retrospectively from January 30, 2012.


Fibre2fashion News Desk - India
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