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Textile manufacturers to continue minimum wages
05 Oct '10
1 min read
In an agreement which will allow 385 textile units to continue their operations, the Economic Development Minister, Ebrahim Patel has permitted the textile manufacturers, who were paying their workers less than the minimum wage set by the country's law, time till December-end.
The involvement of the previous trade union member and leftist member of the Cabinet, throws a focus on the country's frequently condemned centralized negotiating system and minimum wages, at a time when, millions of people are still unemployed.
Patel's call for discussion on a new agreement has put a stay on the action to be taken against 22,000 jobs.
The legal authority to postpone the closing down of factories by a month, which came to an end recently, was taken after almost all the factories in Newcastle had stopped their operations to show their solidarity over the issue of closing down two units in the same area by the national bargaining council.
The minister's arbitration came at a time when the council had met to take a decision on whether to go for a legal recourse against the 385 units which are paying below the minimum wage.
The involvement of the previous trade union member and leftist member of the Cabinet, throws a focus on the country's frequently condemned centralized negotiating system and minimum wages, at a time when, millions of people are still unemployed.
Patel's call for discussion on a new agreement has put a stay on the action to be taken against 22,000 jobs.
The legal authority to postpone the closing down of factories by a month, which came to an end recently, was taken after almost all the factories in Newcastle had stopped their operations to show their solidarity over the issue of closing down two units in the same area by the national bargaining council.
The minister's arbitration came at a time when the council had met to take a decision on whether to go for a legal recourse against the 385 units which are paying below the minimum wage.
Fibre2fashion News Desk-India
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