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

Pic: Dong Nhat Huy / Shutterstock.com

Apparel/Garments | On 20th Apr 2021

New guidance for Vietnam's apparel and footwear industry

The Australian Human Rights Commission has released new human rights...

Pic: Shutterstock

Textiles | On 20th Apr 2021

Egypt ready for world's largest textile factory by March 2022

Egypt is going full throttle with the construction of a textiles...

Pic: I Love Coffee dot Today / Shutterstock.com

Apparel/Garments | On 20th Apr 2021

COVID-19 lockdown halts garment production in parts of Cambodia

A 14-day lockdown imposed to curb the spread of COVID-19 pandemic has ...

Interviews View All

Textile Industry, Head honchos

Textile Industry
Head honchos

Money never disappears-it just finds new opportunities

Textile Industry, Head honchos

Textile Industry
Head honchos

Social media critical in regeneration of businesses

Textile Industry, Head honchos

Textile Industry
Head honchos

We are staring at livelihood crisis for weavers

Chendhuran Sundar,

Chendhuran Sundar

It manufactures and retails menswear garments in India under the brand...

Dhruv Toshniwal & Udit Toshniwal,

Dhruv Toshniwal & Udit Toshniwal

Launched a year ago, Fashions Pvt Limited conceptualises and sees D2C...

Benedetta Terraneo,

Benedetta Terraneo

Miko Srl, a subsidiary of US-based Sage Automotive Interiors and a member...

Keith McMillen, Bebop Sensors

Keith McMillen
Bebop Sensors

Bebop Sensors' smart fabrics allows for a new level of interaction between ...

Daniel Kaye, RocketLife

Daniel Kaye
RocketLife

<div>RocketLife, an award-winning developer of breakthrough visual...

Hemant Bheda, Arevo

Hemant Bheda
Arevo

Arevo, based in Silicon Valley in California, develops technology to...

Sweta Agarwal, A Humming Way

Sweta Agarwal
A Humming Way

A Humming Way (AHW) is inspired by the old-world regalia of Rajasthan...

Seema Gujral, Label Seema Gujral

Seema Gujral
Label Seema Gujral

<b>Seema Gujral</b>'s designs for her eponymous label revolve around...

Sweta Tantia, Tahweave & Garo

Sweta Tantia
Tahweave & Garo

Designer Sweta Tantia owns Garo, a couture indutva or ethnicwear brand,...

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

Leave your Comments


April 2021

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


Advanced Search