Industries oppose Labour Dept plan to hike minimum wage; govt may call stakeholders' meeting soon
Bengaluru: Karnataka government has decided to review Labour Minister Santhosh Lad’s plan to hike the minimum wages of over 1.7 crore employees in 84 different companies owing to pressure from the company managements.
Deputy Chief Minister DK Shivakumar also recently assured the industries that no hurried decision would be taken in the matter without consulting the managements, according to a report by Deccan Herald.
The government has proposed minimum wages in the range of Rs 31,114 to Rs 23,276 for unskilled labourers across three zones (zone 1 – Bengaluru Urban and BBMP limits, zone 2 – city corporations and district headquarters and zone 3 – regions except zones 1 and 2.)
The two-month window period given by the government to receive objections to the draft notification ended on June 25 and up to 160 industries, including the Federation of Karnataka Chambers of Commerce and Industry (FKCCI), the Karnataka Small Scale Industries Association, the Adani Group and the Karnataka Employers’ Association, are learned to have raised objections, telling the Labour Department that the proposals were ‘too steep’.
Karnataka High Court has issued a notice to the state government following a petition filed by the Nanjappa Hospitals-Shivamogga taking objection to the notification. The government has responded with an assurance to the HC that representatives of industries would be consulted before taking any action regarding the wages. The HC, however, has said that the petitioners are free to move the court to seek appropriate relief in the matter.
Trade unions, on the other hand, have welcomed the government’s notification in principle, but they have also sought wages higher than the government’s proposal by citing the Supreme Court’s guidelines in the landmark Reptakos Brett Case of 1991, where the apex court emphasized the importance of a fair wage and the need to protect established benefits.
The All India Trade Union Congress (AITUC) and the All India Central Council of Trade Unions have asked for minimum wages in the range of Rs 40,410 to Rs 33,902 for unskilled workers in zones 1-3 based on present-day prices of food, clothing and shelter.
In accordance with the Mandate of the Minimum Wages Act, 1948, the Labour Department has decided to urge the government to call a meeting of the Minimum Wages Advisory Board, which includes representatives of unions, managements and government officials in equal numbers, to finalize the prices. The file is reportedly likely to reach the government within the next couple of days.
Sources in the Department, however, have said that the stiff opposition from the industries remains a hurdle for the government’s plan to take a quick decision. Minister Lad too is learned to have said that the due procedure would be followed and a Minimum Wages Advisory Board meeting would be held within a month to take a decision after consulting opinions of all stakeholders.
AITUC State Secretary Satyanand Mukund has also asked the government to take a decision soon as the window period has ended.
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Power tariffs under BESCOM to rise from May 1
Bengaluru (PTI): Power bills for consumers under the Bangalore Electricity Supply Company Limited (BESCOM) will go up from May 1, following an order issued by the Karnataka Electricity Regulatory Commission (KERC) on Friday.
The hike comes after KERC allowed the BESCOM to recover a revenue deficit of Rs 2,068 crore incurred in 2024-25, from the consumers.
As a result, for every unit of electricity consumed in 2024-25, the customers will be charged an additional 56 paise, it said.
"BESCOM shall calculate, for each of the active consumers of FY2024-25 the amount to be recovered based on their actual energy consumption during FY2024-25. Such amount shall be recovered during FY 2026-27 in equal monthly instalments, to be called as 'FY25 True up Charges', commencing from the first meter reading date falling on or after 1 May 2026 and concluding with the reading date ending on 30 April 2027," the order said.
"It is further ordered that BESCOM shall maintain a separate head of account, allocated for the purpose, to record the adjustment of the said amount to ensure full recovery of the deficit," it added.
Similarly Chamundeshwari Electricity Supply Corporation Limited (CESC) has also recorded a revenue deficit of Rs 121.71 crore and can collect an additional 15 paisa per unit for consumption in 2024-25, official sources said.
