Observation (CEACR) - adopted 1997, published 86th ILC session (1998)

Minimum Wage-Fixing Machinery Convention, 1928 (No. 26) - India (Ratification: 1955)

The Committee notes the observations made by the Mahabubnagar District Contract Labour Union and the Centre of Indian Trade Unions (CITU) concerning, inter alia, various infringements of the minimum wage regulations in the country. It also notes the Government's reply to the Mahabubnagar District Contract Labour Union's observations. However, the Committee notes that, although the observations made by the CITU were supplied with the Government's report, the report does not contain the Government's comments on the specific issues raised in these observations.

The Committee recalls the Government's statement, made in 1993, that various proposals to amend the Minimum Wages Act, 1948, were under active consideration. According to the Government, these proposals are at advanced stage of consideration, and consultations with central ministries and state governments have been completed. It hopes that the Government will be in a position to make the necessary amendments in the near future.

The binding force of minimum wages

In its previous comments, the Committee noted the observation made by the Bijli Mazdoor Panchayat concerning the situation of 4,000 scheduled tribe workers, the majority being women, and all belonging to the low caste called "Adivasis", forced to work in inhuman conditions in the "Ash Area" by the Gujarat Electricity Board, a statutory board of the State Government of Gujarat, notwithstanding the fact that the "Ash Area" is attached to the thermal power station and is a factory under the Factory Act. Thus, the Bijli Mazdoor Panchayat indicated that a petition before the High Court of Gujarat has been filed for implementation of different labour laws in the State of Gujarat, including the Minimum Wages Act.

The Committee noted the Government's statement that the Commissioner of Labour is making a proposal to include in the scheduled employment the activity of the workers who are working outside the thermal power station premises (the "Ash Area") to separate burnt coal from the flowing water. It hoped that this action would be undertaken in the near future and requested the Government to supply information on any development in this respect. The Committee also requested information on the outcome of the petition before the High Court of Gujarat.

From the report, the Committee notes that the Government of Gujarat is taking necessary steps to resolve the issue covered by the complaint of the Bijli Mazdoor Panchayat and that the developments made in the matter are awaited. Furthermore, the Government indicates the information on the outcome of the petition before the High Court of Gujarat is also awaited.

The Committee hopes that the Government will, in the near future, be in a position to provide information on any progress achieved with respect to the Bijli Mazdoor Panchayat's complaint. It asks the Government to indicate any measures taken by the Labour Commissioner to include in the scheduled employment the activity of the workers who are working outside the Thermal Power Station premises (the "Ash Area") to separate burnt coal from the flowing water.

Application of minimum rates of wages to part-time workers

In its previous comments, the Committee noted that, according to the Tamil Nadu All India Trade Union Congress (AITUC), the Village Panchayat conservancy workers (sweepers and scavengers) and the pump operators in most districts are still not paid the notified monthly minimum wages of Tamil Nadu. In reply to the Tamil Nadu AITUC's comments, the Government stressed, inter alia, that the workers engaged in any local authority are being paid at minimum wage rates wherever they are engaged in full-time work.

The Committee recalled that, under Article 3, paragraph 2(2), of the Convention, minimum rates of wages which have been fixed should be binding on the employers and workers concerned and, accordingly, unskilled part-time workers should not be excluded from the application of the minimum wage rates of unskilled workers only because they are working part time; in other words, the minimum rate should be applied in determining the amount of wages calculated pro rata on the hours worked.

In its report, the Government states that there have been lots of claim applications filed under section 20(2) of the Minimum Wages Act, 1948, for non-payment of minimum wages for the workers employed in local authorities like sweepers, scavengers and pump operators. Since most of the categories of workers are engaged on a part-time basis, the wages already fixed for full-time workers cannot be given to the part-time workers. In order to regulate the above situation, the State Government of Tamil Nadu decided in the State Minimum Wages Advisory Board meeting held on 9 August 1996 to collect the particulars regarding the total number of workers with their categories and wages in the Village Panchayat and town Panchayats. After ascertaining the above fact, the details will be placed before the State Minimum Wages Advisory Board for taking suitable action for revision of minimum wages for workers employed in the local authorities. Further developments made in the matter are awaited from the Government of Tamil Nadu. In addition, the Government indicates that a copy of the above documents requested by the Committee will be obtained from the Government of Tamil Nadu.

The Committee notes the Government's statement and hopes that the Government will be, in the near future, in a position to provide: (i) information on any progress achieved with respect to actions taken by the State Minimum Wages Advisory Board as concerns the revision of minimum wages for workers employed in local authorities, including part-time workers, and; (ii) a copy of text on minimum wages, as referred to in the Tamil Nadu AITUC's communication (Government of Tamil Nadu, GO No. 449 dated 6 June 1997 and RDLA, letter No. 106883/M11/77).

Application of minimum wages to the unorganized sector and home-based units

The Committee notes the observations made by the CITU concerning, inter alia, the lack of any wage policy as regards the vast multitude of the workers in the unorganized sector. According to the CITU, despite repeated demands, the Government has not fixed any criterion to determine the minimum wages, which therefore vary indefinitely from state to state. As a result of the implementation of the Structural Adjustment Programme (SAP), goods which used to be produced in the organized sector are now being produced in the unorganized sector, and the home-based units are growing constantly. A large number of skilled workers are employed in the unorganized sector where the minimum wages are below the poverty line and the workers do not have the bargaining power to protect themselves from exploitation by employers. Furthermore, the CITU explains that, according to the Government, the concept of floor level minimum wage is that below which there should not be any minimum wage and floor level minimum wages should not be below the poverty line. However, the CITU points out that, despite the Government's announcement, floor level minimum wages are below the poverty line. According to the CITU, the wages of workers in the unorganized sector should be above the poverty line.

The Committee notes the Government's indication that the Minimum Wages Act is primarily concerned with the employment in the unorganized sector. It is generally accepted that around 92 per cent of the total number of workers (285,932 thousand) are employed in the unorganized sector. In view of this, the Minimum Wages Act covers at least 263,057 thousand workers in India.

The Committee requests the Government to provide full information on the practical measures taken or contemplated to ensure the payment of minimum wages to wage-earners working in the unorganized sector and the homeworkers.

Other points

In its previous comments, the Committee noted the observations made by the Mahabubnagar District Contract Labour Union and the Federation of Unorganized Migrant Labour of Goa (FUMLOG) concerning non-payment of minimum wages to the migrant labourers of the Mahabubnagar District, called "Palamoori labourers".

In its report, the Government states that the complaint of the Mahabubnagar District Contract Labour Union concerning non-payment of minimum wages to the migrant labourers of Mahabubnagar District has been taken up with the Government of Goa. The State Government reported that wide publicity is given to the minimum wages fixed besides publishing the same in the Official Gazette. Labour inspectors are appointed under the Minimum Wages Act, 1948, for enforcement of the minimum wages so fixed. If irregularities of under-payment are detected, claim applications are filed before the authority appointed under section 20 of the above Act either by the inspector or the worker concerned. The difference, if not paid, is recoverable as arrears of land revenue.

The Committee takes due note of these general indications. It asks the Government to indicate measures taken by the central or the state governments to ensure better application of the law on minimum wages in the entire territory, with particular reference to "Palamoori labourers", and to migrant workers in Goa and homeworkers as mentioned in the Committee's previous comment. It requests the Government to continue to supply information, in accordance with point V of the report form, on the effect given in practice to the Convention: (i) by supplying the available statistical data on the number and various categories of workers covered by the minimum wage regulations, and; (ii) by indicating, for example, the results of the inspections carried out, the violations reported and the sanctions imposed.

A direct request is also being addressed to the Government on other matters, including the observations previously made by the United Trade Union Centre (UTUC) and the All India Organization of Employers (AIOE).