27th, June, 2002
Ministry of Labour & Empowerment  


LABOUR MINISTER FAVOURS ENACTMENT OF A STATUTE FOR SOCIAL SECURITY TO UNORGANISED WORKERS

CENTRE CONSIDERING AMENDMENT TO MINIMUM WAGES ACT TO MAKE ITS IMPLEMENTATION MORE STRINGENT


The Labour Minister Shri Sharad Yadav favours enactment of a statute for providing social security protection to the workers in the unorganised sector. Presiding over the Central Advisory Board meeting to consider removal of disparity in minimum wages here today, Shri Yadav said that this is necessary as they are easily vulnerable to social and economic exploitation. He said that the two basic elements of social security are ‘minimum living’ and the selective redistribution of income in order to reduce inequalities. He said that non-payment or less-payment of legitimate minimum wage is one of the major factors for poverty in the country. Shri Yadav said that the position in this regard varies from region to region. He said that the Central Government is considering to amend Minimum Wages Act to make punishment for its non-enforcement more deterrent. The Labour Minister said that he has recently written to all Chief Ministers to ensure that the minimum wages for the scheduled employments in their respective states/union territories are not fixed below the minimum floor level wage. Shri Yadav said that we have to ensure implementation of minimum wage in a manner that it does not endanger the employment of poor workers.

Earlier welcoming the Members of the Board, the Labour Secretary Dr. P.D. Shenoy called for reducing the disparities in the rates of minimum wages in various parts of the country. He said that the disparities are due to differences in socio-economic and agro-climatic conditions, cost of living, productivity etc. Dr. Shenoy added that it may not be too far off when we would have a single minimum wage at least at the regional level.

Participating in the discussion, majority of the members wanted that minimum wages should be incorporated in the Ninth Schedule of the Constitution to ensure its enforcement. They also wanted that a policy should be framed for fixing the minimum wages. The members wanted that the meeting of the Board should be held at least once in a year to review the situation.

The floor level minimum wage was enhanced to Rs.45 per day with effect from 30th November 1999. The floor level minimum wage was mooted by the Centre in 1996 in the absence of a uniform national wage policy. It was fixed at Rs. 35 per day which was subsequently increased to Rs.40/- in 1998. In the Central sphere, the number of scheduled employments is 45 whereas in the State sphere their number is 1232.

The representatives of BMS, INTUC, UTUC (Lenin Sarani) AITUC, CITU, UTUC, and NFITU from the employees side and CIE, Laghu Udyog Bharti, Federation of Indian Mineral Industries, Bhartiya Kisan Sangh and ministries of Mines and Railways from the employers side and senior officials of the Labour Ministry participated in the meeting.