Belagavi, June 2: Several trade and industry associations in Belagavi have opposed the Karnataka government’s recent revision of minimum wages, describing it as an “abnormal increase” that could severely impact industries, particularly micro, small and medium enterprises (MSMEs).
For more details : https://www.thehindu.com/news/national/karnataka/belagavi-trade-and-industry-bodies-oppose-minimum-wage-hike/article71048546.ece
A delegation representing various industry bodies submitted a memorandum to Belagavi Deputy Commissioner Mohammad Roshan on Monday, urging the State government to immediately withdraw the notification issued on May 22 revising minimum wages across 81 scheduled employments.
The associations, including the Belgaum Chamber of Commerce and Industries, District Small Scale Industries Association, Belgaum Foundry Cluster, Laghu Udyog Bharati, and the Institute of Indian Foundrymen, argued that the revised wage structure would significantly increase operational costs for businesses.
According to the memorandum, the wage revision could lead to a nearly 60% increase in wages and an additional 30% rise in compliance-related expenses, resulting in an overall cost burden exceeding 100% for employers. Industry representatives warned that such a sharp increase could adversely affect employment, industrial growth, and the competitiveness of Karnataka-based businesses.
The delegation also claimed that the government had issued the final notification despite ongoing legal proceedings and High Court directions regarding stakeholder consultations. They further questioned the notification’s legal validity, stating that the Minimum Wages Act, 1948, has been superseded by the Code on Wages framework.
Industry leaders said MSMEs, which account for a major share of employment in the State’s industrial sector, would be the worst affected. They cautioned that rising labour costs could lead to downsizing, closures, reduced investments, and loss of business to neighbouring states with comparatively lower wage structures.
The associations have demanded that the government withdraw the notification, comply with judicial directions, hold fresh consultations with stakeholders, and issue a revised proposal only after the fixation of National Floor Wages under the Code on Wages.
Several industry representatives, including Prabhakar Nagarmunoli, Satish Kulkarni, Nitin Landge, Satish Nerlekar, Ram Bhandare, Sadanand Humberwadi, Mahesh Inamdar, and Prashant Patil, were present during the submission of the memorandum.
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