Observation (CEACR) - adopted 2007, published 97th ILC session (2008)

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

Further to its previous observation, the Committee notes the Government’s detailed explanations in reply to the comments made by the Centre of Indian Trade Unions (CITU). According to the Government’s report, the Labour Bureau of the Ministry of Labour and Employment prepared the new series of consumer price index numbers for industrial workers with all due process, including broad consultations with different stakeholders such as trade unions, employers’ associations and government departments. More concretely, during the conduct of pilot surveys for the establishment of price collection machinery in 78 centres, various trade unions were consulted on different matters, such as the selection of markets, selection of shops, fixing of specifications of items, fixing of price collection days, appointment of price collection personnel, etc.

Regarding the alleged manipulations in price collection, the Government states that price data and the price collection system is fully transparent, while price data used are available for inspection of the various stakeholders in the regional offices of the Bureau. It adds that the decision to include representatives of employers’ and workers’ organizations in the Technical Advisory Committee on Statistics and Prices and Cost of Living (TAC on SPCL) has provided further transparency to the system. The decision to associate three members representing all central trade unions and employers’ organizations with the Technical Advisory Committee was taken in September 2005 and the Technical Committee in its new composition met in February 2006 to discuss suitable steps for the improvement of the quality of the index.

On the question of defects found in the compilation of consumer price index numbers by independent experts, the Government admits that in the past review exercises have resulted in various recommendations, most of which have already been implemented. In response to the CITU’s persistent request for the appointment of a new review committee to devise a truly transparent mechanism for compiling the cost of living indices, the Government indicates that it has agreed to the appointment of another Index Review Committee and has already initiated appropriate action to this end, but strongly denies all charges of irregularities and faulty methodology in the compilation of consumer price index numbers for industrial workers.

The Committee is satisfied that the Government makes serious efforts to ensure accurate and reliable price data for the purpose of periodic minimum wage adjustment. It appreciates in particular the fact that the TAC on SPCL now operates with a tripartite membership and that the Government commits itself to carefully considering the views expressed by all TAC members and implementing their recommendations. The Committee hopes that the new Index Review Committee will be established shortly and requests the Government to keep it informed of any developments in this regard. It also asks the Government to continue to supply documented information on the activities of the TAC on SPCL and any measures taken to follow up on its proposals.

In addition, the Committee notes that certain other points raised in its last observation have not been addressed by the Government’s report. It therefore requests the Government to provide in its next report full particulars on any new categories of workers coming under the scope of the Minimum Wages Act, 1948; any progress made in the process of a comprehensive amendment of the Minimum Wages Act; the means for promoting compliance with the national floor-level minimum wage (NFLMW) and its possible revision; the method used for fixing the uniform minimum wage for agricultural workers and the consultations held before the introduction of the National Rural Employment Guarantee Scheme; the operation of the minimum wage fixing machinery at the state/territory level; and statistical information concerning the enforcement of the legislation on minimum wages.