9th August, 2002
Ministry of Labour & Empowerment  


GOVERNMENT CONSIDERING TO AMEND THE MINIMUM WAGES ACT AND BRING IN UMBRELLA LEGISLATION FOR WORKERS IN THE UNORGANISED SECTOR


The Government is considering amending the Minimum Wages Act, 1948 to improve its compliance. Addressing the meeting of the Parliamentary Consultative Committee attached to his Ministry here today, the Labour Minister Dr. Sahib Singh said the proposed amendments would aim at making penalties for non-compliance more deterrent. He said that both the Centre and the states need to do much more to ensure the implementation of the Minimum Wages Act. Dr. Sahib Singh also told the Members that the Labour ministry is considering to bring in an umbrella legislation for workers in the unorganised sector. He said that the Labour Ministry is studying the Report of the Second National Commission on Labour and would like to have a detailed consultation on it with the Members of the Parliamentary Consultative Committee and various social partners. Responding to the suggestion of the Members, the Labour Minister said that special awareness generation campaigns would be launched in various parts of the country among workers and employers regarding rights and obligations envisaged in the Minimum Wages Act. He suggested that along with making non-compliance more deterrent, the sustained voluntary compliance of the Minimum Wages Act should be rewarded.

It was revealed during the meeting that enforcement of the Minimum Wages Act in the Central sphere has been continuously showing a marked improvement despite shortage of Inspectors and Labour Enforcement Officers. !5,800 inspections were made during the last financial year and 6,126 cases were filed for prosecution of which about 60% cases were decided. An amount of over One crore rupees was recovered and distributed in 2000-01 compared to the recovery of 18 lakh rupees in the previous financial year.

The Labour Secretary Dr. P.D. Shenoy said that the trade unions and workers should come forward to file claims. He said that we have asked the Employers organisations to have their own inspection machinery to improve compliance.

Participating in the meeting the Members suggested that more employments should be brought within the purview of Scheduled Employments under the Minimum Wages Act. The number of scheduled employments at present in the Central sphere is 45 whereas in the State sphere their number is 1232. The Members said that most of the workers in the unorganised sector are not getting the stipulated minimum wages. They said that the Inspectors should visit specific areas as a model to improve enforcement of the Minimum Wages Act. Shri P. Rajandaran and Shri K. Malaiswamy, Members of Parliament, and senior officials of the Ministry of Labour attended the Meeting.