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

CMNT_TITLE

The Committee notes the observations of the Garment Labour Union (GLU) received in 2015, concerning the Sumangali practice in the garment sector in Tamil Nadu. These observations are examined under the Forced Labour Convention, 1930 (No. 29).

The Committee notes the information provided by the Government in its report on the process of legislative reforms. In particular, it takes note of the Code on Wages, 2017 Bill (the 2017 Bill), which was introduced before the Lok Sabha (lower house of Parliament) on 10 August 2017 and which is intended to consolidate the relevant provisions of the main central labour enactments relating to wages, including the Minimum Wages Act, 1948 (the 1948 Act). The Committee requests the Government to provide information on the development of the legislative process in this regard.

Articles 1 and 2 of the Convention. Scope of application. The Committee notes that while the applicability of the 1948 Act is restricted to the employments listed in its schedule, the 2017 Bill intends to provide protection to all employees (section 6(1)). Section 1(2)(j) of the Bill contains a broad definition of “employee”, encompassing any person employed on wages, whether the terms of employment are expressed or implied, as well as persons declared to be employees by the appropriate government. Moreover, the Committee notes that the Bill introduces the concept of national minimum wages fixed by the Central Government for different geographical areas, with the aim of ensuring that no state government fixes minimum wages below the national minimum wages for that particular area (section 9(1) and (2)).

Article 3(2). Participation of the social partners in the operation of minimum wage-fixing machinery. The Committee notes that pursuant to section 9(3) of the 2017 Bill, the Central Government may obtain the advice of the Central Advisory Board before fixing the national minimum wages. The Committee requests the Government to clarify whether the advice of the Central Advisory Board would systematically be sought for the fixation of the national minimum wages.

Article 4(1). System of supervision and sanctions. The Committee refers to its comments under the Labour Inspection Convention, 1947 (No. 81).

CMNT_TITLE

Article 3 of the Convention. Minimum wage fixing machinery. Further to its previous comment, the Committee notes the information provided by the Government with regard to measures aiming at enhancing the transparency and reliability of data used for the periodic readjustment of minimum wage levels. In particular, the Committee notes the establishment of a new Index Review Committee (IRC) with tripartite membership and the adoption of the IRC final report in 2009 which recommended, among others, the setting up of a Standing Tripartite Committee of all stakeholders to review issues related to the conduct of the New Working Class Family Income and Expenditure Survey, as well as the strengthening of the audit mechanism of the prices which go into the compilation of the consumer price index. The Committee also notes the initiative of the Labour Bureau to display on its website the price data of all items which are reflected in the consumer price index. The Committee requests the Government to provide full particulars on any new developments concerning the effective consultations with and direct participation of employers’ and workers’ organizations in the operation of the minimum wage fixing machinery.

Moreover, the Committee notes with interest the Government’s indications concerning the proposals for the amendment of the Minimum Wages Act, 1948 with a view to rendering the National Floor Level Minimum Wage (NFLMW) – currently set at 115 Indian rupees (INR) per day – statutory and thus enabling all workers in the country to receive at least the NFLMW. It notes, in particular, that an Inter-Ministerial Group was set up to examine this matter, an impact study has been completed by the Giri National labour Institute and the matter is again before the Committee of Secretaries of the Government for further consideration. The Committee requests the Government to keep the Office informed of any progress made towards the amendment of the Minimum Wages Act and the establishment of a statutory national minimum wage.

Article 5 and Part V of the report form. Application in practice. The Committee notes the statistical information provided by the Government showing labour inspection results concerning the enforcement of the Minimum Wages Act, 1948, and current minimum daily wage rates for unskilled agricultural workers at the central and state levels. The Committee requests the Government to continue to provide up-to-date information concerning the practical application of the Convention.

Finally, the Committee recalls that following the recommendations of the Working Party on Policy regarding the Revision of Standards (GB.283/LILS/WP/PRS/1/2, paragraphs 19 and 40), the ILO Governing Body has decided that Convention No. 26 is among those instruments which may no longer be fully up to date but remains relevant in certain respects. The Committee therefore suggests that the Government should consider the possibility of ratifying the Minimum Wage Fixing Convention, 1970 (No. 131), which marks certain advances compared to older instruments on minimum wage fixing, for instance, as regards its broader scope of application, the requirement for a comprehensive minimum wage system, and the enumeration of the criteria for the determination of minimum wage levels. The Committee requests the Government to keep the Office informed of any decision taken or envisaged in this regard.

CMNT_TITLE

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.

CMNT_TITLE

The Committee notes the information provided by the Government in reply to its previous observation. Concerning the extension of the application of the Minimum Wages Act, 1948, to cover home workers, the Committee notes that the State of Karnataka is at present the only state government which has included home workers in scheduled employment and accordingly fixes minimum wage rates for those workers. Noting that minimum wages are currently fixed by the central and state governments for a total of 1,568 scheduled employments, the Committee requests the Government to continue to provide up to date information on any new categories of workers, including home workers, coming under the scope of the Minimum Wages Act. As regards the ongoing process of a comprehensive amendment of the Minimum Wages Act, the Committee notes that various proposals have been examined by the Central Advisory Board and also discussed at other forums, such as the 2005 session of the Indian Labour Conference. Recalling that, as previously reported by the Government, certain modifications are explored with a view to rendering the provisions of the Minimum Wages Act more stringent, the Committee asks the Government to keep it informed of any progress made in this regard.

1. Introduction of a national “floor-level” wage applicable to all workers. The Committee notes the explanations provided by the Government on the establishment of the national floor-level minimum wage (NFLMW) and its legal status. The NFLMW was initially fixed in 1996 at Rs.35 per day (approximately US$0.75) based on the recommendation of the National Commission on Rural Labour, and was last raised in 2004 to Rs.66 per day (approximately US$1.42) upon the recommendation of the tripartite Central Advisory Board. The NFLMW is a non-statutory measure, persuasive in nature that the state governments are requested to consider as a threshold below which no minimum pay rates should fall. The Committee notes, however, that, according to the statistical data annexed to the Government’s report, 15 among the 35 states/union territories apply sub-NFLMW minimum rates, in some cases as low as Rs.44 per day. Recalling that the ultimate objective of a minimum wage system is to guarantee a decent standard of living for low-paid workers and their families, the Committee asks the Government to indicate whether the national floor-level minimum wage is currently situated above the poverty threshold and also whether any steps have been taken or are envisaged for its revision. Moreover, the Committee would appreciate receiving the Government’s explanations as to the means at its disposal for promoting compliance with the NFLMW among states and union territories applying significantly lower minimum wage rates.

In addition, the Committee understands that the Government has given consideration to establishing a uniform Rs.60 minimum wage rate for agricultural workers in all states under the recently introduced National Rural Employment Guarantee Scheme. The Committee asks the Government to provide additional information on this initiative, especially as regards the method used for fixing the level of the uniform minimum wage and the content of any consultations that may have taken place to this effect.

2. The operation of the minimum wage fixing machinery. The Committee notes the Government’s indication that, when fixing or revising minimum wages by notification, state governments are bound to consult an advisory board which consists of an equal number of employers’ and workers’ representatives, as set out in sections 5, 7 and 9 of the Minimum Wages Act, 1948. It also notes the information according to which the Central Advisory Board meets frequently, last in June 2005, while the Minimum Wage Advisory Board in the central sphere held its last meetings in July 2004 and May 2005. The Committee would be grateful if the Government would specify in its next report: (i) the state governments/union territories which fix or revise minimum wages by means of consultation and notification respectively; (ii) whether advisory boards are established and active in all states/union territories without exception; (iii) any practical difficulties experienced in the operation of the minimum wage fixing machinery, especially with regard to the periodicity of the revision of minimum wage rates and the participation of employers’ and workers’ organizations in that process.

3. Enforcement of minimum wages. The Committee notes the Government’s indications concerning the powers of labour inspectors in matters of minimum wages, as provided for in section 19 of the Minimum Wages Act. It also notes the statistical information regarding inspection results in different states/union territories for the period 2002-05. The Committee asks the Government to continue to provide detailed information on all measures aiming at enhancing the enforcement of the minimum wage legislation, such as the reinforcement of the labour inspection services, the introduction of stricter and truly dissuasive sanctions, accelerated proceedings for the rapid recovery of underpaid wages, etc. In this connection, the Committee refers to its latest observation made under Convention No. 81, in particular the need for penalties to be fixed at a sufficiently high level and be periodically reviewed and also the importance of gradually improving the human and material resources of the labour inspectorate.

4. Observations by the Centre of Indian Trade Unions. The Committee notes the detailed comments of the Centre of Indian Trade Unions (CITU), dated 26 May 2006, regarding the procedure for elaborating the consumer price index which is used for the fixation and revision of minimum wages. According to the CITU, the Government has unilaterally introduced a new series of the consumer price index for industrial workers despite repeated joint communications of all the central trade unions organizations opposing such initiative. The trade union organization considers that the index figures released by the Labour Bureau fail to correctly reflect the inflation or price rise at the ground level due to manipulations in price collection and compilation process and as a result workers have lost faith in the price index machinery. In this connection, it denounces a number of irregularities observed in the price collection process which render the entire mechanism non-transparent and fraudulent. Referring to the two Index Review Committees, which had been appointed in 1978 and 1980, and which had recommended wider participation of the social partners in the different stages of the compilation of consumer price index numbers, the CITU regrets that several recommendations of those bodies have not yet been implemented. It is indicative that the Labour Bureau has completed the recent exercise of updating the consumer price index without holding any nationwide consultation except for the National Level Index Users’ Meeting of May 2005 in which the representatives of all the central trade union organizations demanded that all substantive issues connected with updating the consumer price index, such as the selection of the base year, conduct of family income and expenditure surveys, methodology of index compilation, selection of centres, methods of sampling, agencies for carrying out the surveys, etc., should be thoroughly deliberated. The CITU concludes that the Government should appoint a consumer price index review committee, as requested by all central trade unions, and take the necessary steps to rectify the malpractices prevalent in the present price compilation process.

The Committee recalls that, in accordance with the letter and the spirit of the Convention, the representatives of the employers and workers concerned should be associated at all stages of the operation of the minimum wage fixing machinery, and therefore should be fully consulted also with regard to the collection of data and the carrying out of studies directly related to the determination of minimum wage levels. The Committee would appreciate receiving the Government’s reply to the comments of the CITU in respect of the revision of the consumer price index.

CMNT_TITLE

The Committee takes note of the Government’s report and the observations regarding the application of the Convention that were made by the organization Hind Mazdoor Sabha and supplied with the Government’s report. It also notes the Government’s comments concerning the observations of the Central of Indian Trade Unions (CITU). It notes with interest the statement made by the Government in reply to previous observations by the Committee, to the effect that the protection provided by the Minimum Wages Act of 1948 has been extended to some home and informal sector workers, and that efforts have been made to bring all home workers under the protection of the Act. The Committee requests the Government to supply the legislative texts that extend the protection of the Minimum Wages Act to the workers in question, and to keep the International Labour Office informed of the progress made with the draft amendments of the Minimum Wages Act referred to in its report.

I.  Introduction of a national "floor-level" wage applicable to all workers

1. The Committee previously requested the Government to supply its observations on the comments of the CITU regarding the absence of a wages policy for the great majority of informal sector workers. The CITU had explained that, for the Government, the national floor-level wage corresponded to the threshold below which no minimum wage should fall, and that it should not be below the poverty threshold. The CITU considered that many qualified workers were employed in the informal sector, where the minimum wage is below the poverty threshold and workers have no bargaining power to protect themselves against exploitation by their employers. However, despite the Government’s statements, the floor-level wage is, according to the CITU, below the poverty threshold. The organization considers that wages in the non-unionized sector should be above the poverty threshold.

2. The organization Hind Mazdoor Sabha indicates that, although there is no national minimum wage, the Government in 1996 arbitrarily introduced a national floor-level wage set at 35 rupees a day, which was increased to 45 rupees a day from 1999 onwards. The organization also regrets that the many minimum wage rates applied in the country’s different states and territories, on the one hand, and the rates applied among different occupations within the same state, on the other, vary so widely. It also adds in this respect that the minimum wage rates vary between Rs16.75 (in the State of Karnataka and Rs143.67 (in the State of Kerale).

3. The Government states in its comments on the observations made by the CITU that it would be difficult to devise a uniform wages policy given that wage fixing depends on many factors linked to the cost of living, which varies from one state to the other and from one industry to the other. The Government states nevertheless that it has established a national floor-level wage with a view to protecting the interests of workers employed in non-scheduled employments, that is to say, those not covered by a minimum wage. The central Government has therefore instructed the state governments to fix minimum wages in scheduled employments at a level not lower than the national floor-level wage which, since 30 November 1999, has been set at 45 rupees a day. With regard to the comments made by the organization Hind Mazdoor Sabha, the Government indicates that all the minimum wage rates applicable in the State of Karnataka have been revised except for one or two and that a request has been made to the State to know the reasons for not revising the minimum wages applicable in these employments so that they are equivalent to or more than the national floor level minimum wage rate.

4. The Committee requests the Government to supply copies of the legislation which established the national floor-level wage from 1996 onwards. The Committee is concerned by the fact that the Government’s report contains no information on the comments made by the Hind Mazdoor Sabha, according to which the Government set the national floor-level wage rates arbitrarily. The Committee requests the Government to indicate whether prior consultations were actually held with the social partners before the application of the machinery for fixing the national floor-level wage, and to provide information on the participation of employers’ and workers’ organizations in the operation of the machinery, in accordance with Article 3, paragraph 2(1) and (2), of the Convention. The Committee recalls that minimum wage-fixing machinery must be determined and applied in consultation with organizations of employers and workers, who should be associated in that process on equal terms and should be able to influence any decisions. The Committee requests the Government to supply with its next report any relevant information regarding measures taken or planned with a view to meeting its obligations under these provisions of the Convention.

II.  Application of the machinery for fixing and revising minimum wages   applicable to scheduled employments

5. The organization Hind Mazdoor Sabha, in its observations supplied with the Government’s report, states that the Central Advisory Board and the advisory committees in the different states and territories, which are supposed to advise the central Government and the state governments on matters relating to the fixing of minimum wages, has operated only irregularly. It claims that the Board met on only 14 occasions between 1948 and 1992, although there should have been 22  meetings. The organization adds that the Board’s last meeting was held on 27 June 2002, ten years after the previous meeting in 1992.

6. The Government states in its report that minimum wage-fixing machinery and procedures for applying it are established under the Minimum Wages Act of 1948. Under the terms of section 5 of the Act, the central Government or state governments, as appropriate, may fix and revise minimum wages in respect of scheduled employments by using two methods: either with the aid of advisory committees set up under the terms of the Minimum Wages Act, in which employers’ and workers’ representatives participate; or by notification. In the latter case, the competent authority publishes its minimum wage proposals in the Official Gazette. The act of publication marks the beginning of a two-month period during which any persons affected by the decision have the right to present objections or proposals. Furthermore, with regard to the application of the machinery for revising minimum wages, the Government states that it accepted and has been implementing since 1998 the recommendations of the subcommittee of the Central Advisory Board regarding criteria for fixing minimum wages in respect of the scheduled employments that come under its remit (45 occupations in the central government sphere) and has recommended a readjustment of minimum wages in line with the consumer price index, to take place every six months or whenever the index goes up by five points. The Government also states that 19 states have established such a system, which enables them to link minimum wages to the consumer price index. Furthermore, in the event that a state government fails for more than three years to fix or revise the minimum wage applicable for a given scheduled employment, the central Government states that it can fix or revise the applicable minimum wage itself after notifying the state government in question. Furthermore, with regard to the observation made by the Hind Mazdoor Sabha, the Government states that the Ministry of Labour will make efforts in the future to hold meetings of the Central Advisory Board more frequently, and that the state governments have been advised to convene regular meetings of their advisory boards.

7. The Committee takes this to mean that, even in the central government sphere, minimum wages for scheduled employments were revised by the method of notification in the Official Gazette in January 2002, eight years after the last adjustment. The Committee notes that the minimum wage fixing machinery can be applied either through minimum wage advisory committees, which each authority can set up to deal with occupations that come within its remit and which include government-appointed representatives of workers and employers in equal numbers, or by the method of notification. In this regard, the Committee requests the Government to specify the means by which, when using the notification method, the central Government and state and territorial governments ensure that organizations of employers and workers participate in equal numbers and on an equal basis in the operation of the minimum wage fixing machinery, in accordance with Article 3, paragraph 2(2), of the Convention. Furthermore, the Committee requests the Government in its next report to supply information on the way in which it acts to ensure the operation, with the participation of employers’ and workers’ organizations, of the machinery for revising minimum wages in states and territories whose governments do not apply the machinery in question, and where, in some cases, as in the case of Tamil Nadu, the machinery for fixing and revising certain minimum wages has not been operated since 1977, or where the social partners have not been associated in its operation. The result of this failure has been to set the minimum monthly wage at a level equivalent to the national floor-level wage normally payable for four days’ work. The Committee also requests the Government to provide information on the measures taken to ensure that state and territorial governments adhere to the established national floor-level wage rates that are applicable throughout the country, whether or not the employment in question is scheduled or non-scheduled.

III.  Practical application of the Convention

8. According to the information contained in the comments supplied by the Hind Mazdoor Sabha, efforts to monitor the application of the Minimum Wages Act of 1948 are ineffective because the labour inspectors do not even have the right to carry out inspections as a result of the new regulations in force in many states. The organization also refers to cases where the competent authorities under the Labour Commissioner have promoted agreements setting a minimum wage at a level below half the minimum wage in force within a given state for a particular occupation, as has occurred e.g. in the State of West Bengal. According to the Hind Mazdoor Sabha, such practices occur because employers threaten to relocate their production units to neighbouring states with a much lower minimum wage.

9. As regards this point, the Government states in its report that the Minimum Wages Act requires employers to pay their workers a wage that is at least equivalent to the established minimum wage. Inspectors carry out regular inspections to determine whether or not there are any contraventions of the minimum wage provisions. They have the authority to initiate civil or criminal proceedings against anyone found in breach of the law, and this right has been extended to workers. Furthermore, the Government indicates that, where complaints are made that labour inspectors are being prevented from conducting inspections, the matter is taken up with the state government concerned. The Government emphasizes that such discussions must be held with the Government of West Bengal on matters raised by the Hind Mazdoor Sabha. Finally, it notes that it is envisaging certain amendments to the Minimum Wages Act with a view to making its provisions more stringent.

10. The Committee requests the Government to keep the International Labour Office informed of the outcome of the discussions with the authorities in West Bengal. It requests the Government to indicate in its next report the measures which have been taken or are envisaged to prevent such cases from reoccurring in practice. It also requests the Government to indicate any appropriate measures that have been taken, in consultation with the States of the Union, to prevent labour inspectors from being prevented from discharging their duties. The Committee also notes that the Government similarly declines to respond to the comments made on a previous occasion by the Trade Union Congress, according to which there have been cases of employers bringing complaints regarding the minimum wage before the courts, which has had the effect of suspending payment of the minimum wage to the workers concerned. The Committee recalls that under the terms of Article 4, paragraph 1, of the Convention, the system of supervision established under the terms of the provision must provide appropriate sanctions for any violation of the applicable minimum wage rate.

11. In this regard, the Committee recalls that it has referred on previous occasions to certain cases presented to it through the observations of trade union organizations which, according to the Government, were still pending. The Government’s report refers to some of these cases, but also indicates that some of them have not been resolved. The Committee is bound to express its concern at the slowness of the judicial system intended to help workers recover the wages owed to them, and recalls that some of these cases go back to 1996. The Committee requests the Government to inform the International Labour Office of the outcome of these proceedings, and also requests the Government at the same time to take any necessary and appropriate measures to ensure that any wages owed to workers are paid promptly, given that the workers in question are paid the minimum wage and consequently highly dependent on their wages. The Committee also requests the Government to supply with its next report additional details regarding the powers of inspection of officials responsible for supervising the application of the Minimum Wages Act, both with regard to the central government sphere and that of the states and territories.

12. In addition, the Committee also observes that, according to certain information, the instructions issued by the central Government for the purpose of enforcing the national floor-level wage rate were, as of 1 October 2001, disregarded, even with regard to scheduled occupations, in 12 of the country’s 33 states and territories (Andhra Pradesh, Arunachal Pradesh, Assam, Bihar, Goa, Jammu and Kashmir, Kerala, Maharashtra, Manipur, Orissa, Tripura, Uttar Pradesh and Pondicherry). The Committee recalls that it is generally accepted that almost 92 per cent of waged workers are employed in the informal sector, many of them in jobs other than the scheduled jobs to which the minimum wages apply, and would therefore be eligible for the national floor-level wage. The Committee requests the Government to supply with its next report information, including statistical data, on the level of compliance with the national floor-level wage rate by state and territorial governments, and on the measures taken to ensure compliance, with regard to workers in both scheduled and non-scheduled employments, in accordance with Article 3, paragraph 2(3), of the Convention.

13. Lastly, the Committee recalls that under Article 3, paragraph 2(3), of the Convention, minimum rates of wages which have been fixed are binding on the employers and workers concerned so as not to be subject to abatement by them by individual agreement, nor, except with general or particular authorization of the competent authority, by collective agreement. The Committee requests the Government to provide further information regarding the comments made by the Hind Mazdoor Sabha to the effect that the competent authorities under the Labour Commissioner have promoted agreements setting wages at a level equivalent to less than half the minimum wage in force in the state in question, as for example in West Bengal. The Committee recalls that the Convention allows for this only in cases of collective agreements, and requests the Government to indicate whether, in the cases cited by the Hind Mazdoor Sabha, collective agreements have been concluded and how frequently use has been made of this possibility to abate minimum wage rates by general or particular authorization of the competent authorities.

CMNT_TITLE

1. In its previous comments, the Committee referred to the observations made by the Mahabubnagar District Contract Labour Union concerning the non-payment of minimum wages to the migrant labourers of the Mahabubnagar District. The Committee notes the reply supplied by the Government according to which a claim application was filed on 15 May 1997 under the Payment of Wages Act, 1936. The Committee requests the Government to provide information on the outcome of this claim.

2. The Committee takes note of the observations made by the Gujarat Mazdoor Panchayat concerning the non-payment of wages fixed under the Minimum Wages Act, 1948, and the Gujarat Minimum Wages Rules, 1961, to workers of the Mig-Weld & Machines Limited. The Committee notes the reply of the Government and, in particular, the information given by the Labour and Employment Department of the Government of Gujarat. According to this information, as a result of an inspection carried out by an inspector of this body in the above factory as regards the payment of wages, the employer has been requested to comply with the legal provisions on minimum wages. The Committee also notes that, since the employer failed to comply with such a request, the Labour and Employment Department has filed a criminal complaint against the Managing Director of the company. As the complainant union has been subsequently informed, it has also filed a recovery application for the balance of minimum wages. The Committee requests the Government to continue to provide information on the outcome of these legal actions.

3. In addition, the Committee recalls that, in its previous comments in both, its direct requests and its observation of 1997, it also referred to various infringements of the minimum wage regulations in the country, and therefore it requests the Government to supply information on the following issues:

-- petition filed by the Bijli Mazdoor Panchayat before the High Court of Gujarat for the implementation of different labour laws in the State of Gujarat, including the Minimum Wages Act, as regards the situation of 4,000 scheduled tribe workers of the low caste called "Adivasis";

-- actions 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;

-- 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 a copy of text on minimum wages, as referred to in the Tamil Nadu AITUC's communication therein referred to;

-- measures taken or contemplated to ensure the payment of minimum wages to wage-earners working in the unorganized sector and the homeworkers;

-- comments on the specific issues raised in the observation made by the Centre of Indian Trade Unions (CITU);

-- comments on the matter raised by the United Trade Union Centre (UTUC) on the existence of employers' legal actions to withhold the benefit of the minimum wages to the concerned workers;

-- texts of decisions of courts of law involving questions of principle relating to the application of the Convention in accordance with Part IV of the report form;

-- association in equal numbers and on equal terms of the employers and workers concerned in the operation of the advisory board the Government referred to in relation to the comments made by the All India Organization of Employers (AIOE);

-- the present situation of the workers employed in the stockyards run by the Steel Authority of India Limited (SAIL) as regards minimum wages.

4. The Committee would be grateful if the Government could also supply further details on the amendment of the Minimum Wages Act, 1948, since in its previous report it informed that proposals were at advanced stage of consideration, and that consultations with central ministries and state governments were completed.

CMNT_TITLE

1. In its previous comments, the Committee referred to the observations made by the United Trade Union Centre (UTUC) that in some cases the employers have taken cases relating to payment of minimum wages to the courts of law, with the result of withholding the benefit of the minimum wages to the concerned workers.

In its report, the Government states that under the Minimum Wages Act, 1948, both central and state Governments are responsible for the fixing and revision of minimum wage rates for the scheduled employments in their respective jurisdictions. At present, there is no complete "stay order" on any of the notifications issued under the Minimum Wages Act by the Central Government. However, an interim "stay order" on the application of a particular clause of the Ministry's notification No. SO514 (E) dated 12.07.1994, in so far as it relates to the petitioner, has been granted by the High Court. The matter is sub judice. The Committee notes these statements and requests the Government to indicate in its future reports any development which may arise in this regard, including, as the case may be, texts of decisions of courts of law involving questions of principle relating to the application of the Convention in accordance with point IV of the report form.

2. As concerns the comments previously made by the All India Organization of Employers (AIOE), the Government states that the Minimum Wages Act, 1948, provides for the setting up of an advisory board to advise the appropriate government in fixing minimum wage rates. The board/committee is comprised of the representatives of employers, workers and some independent members who are nominated by the Government.

The Committee notes these indications and requests the Government to provide information on the association in equal numbers and on equal terms of the employers and workers concerned in the operation of the above advisory boards/committees, in accordance with Article 3, paragraph 2(2), and Article 5 of the Convention.

3. The Committee notes the Government's indication that there is no rate fixed under the Minimum Wages Act, 1948, for the workers employed in the stockyards run by the Steel Authority of India Limited (SAIL).

CMNT_TITLE

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).

CMNT_TITLE

1. The Committee refers to its previous comments following the observations made by the United Trade Union Centre (UTUC) that in some cases the employers have taken cases relating to payment of minimum wages to the courts of law, with the result of withholding the benefit of the minimum wages to the concerned workers. It again requests the Government to supply the texts of decisions of courts of law involving questions of principle relating to the application of the Convention in accordance with point IV of the report form.

2. As concerns the comments previously made by the All India Organization of Employers (AIOE) that minimum wage fixing in the small-scale or household sectors like cottage industries has been counterproductive to employment generation and that more flexibility should be observed in this respect, the Committee recalls that Article 3, paragraph 2(1), of the Convention requires the consultation with representatives of the employers and workers concerned before the minimum wage-fixing machinery is applied in a trade or part of a trade, and that its paragraph 2(3) prohibits abatement of the fixed minimum rates of wages by individual agreement. The Committee would be grateful to the Government if it will include in future reports information on the application of these provisions.

3. As regards the contract workers employed by the Steel Authority of India Ltd. (SAIL), the Committee noted the notification issued by the government of West Bengal dated 15 July 1989 prohibiting employment of contract labour in all SAIL stockyards at Calcutta and the government's indication that this notification has however been kept in abeyance due to the ad interim injunction issued by the Calcutta High Court. It asks again the Government to supply information on the application in practice of the minimum wage rates to the concerned workers.

4. The Committee again requests the Government to continue to provide information on the results of the application of the minimum wage-fixing machinery in accordance with Article 5 of the Convention, including an indication of the approximate numbers of workers covered and the minimum rates of wages fixed.

5. The Committee would also be grateful if the Government would provide information on the practical application of the Convention, for example, the results of inspection, the cases of violation observed and sanctions imposed in accordance with Article 4 and points III and V of the report form.

CMNT_TITLE

The Committee notes the observations respectively made by the Tamil Nadu All India Trade Union Congress (AITUC), the Bijli Mazdoor Panchayat, the Mahabubnagar District Contract Labour Union and the Federation of Unorganized Migrant Labour of Goa (FUMLOG) concerning various infringements of the minimum wage regulations in the country. The Committee also notes the Government's comments on these observations. It recalls the Government's earlier statement that various proposals to amend the Minimum Wages Act were under active consideration by the Government, and requests the Government to indicate any progress made in this regard.

The binding force of minimum wages

In its observation, the Bijli Mazdoor Panchayat indicates that 4,000 Scheduled Tribe workers, the majority being women, and all belonging to the low caste called "Adivasis", are 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 has filed a petition before the High Court of Gujarat for implementation of different labour laws in the State of Gujarat, including the Minimum Wages Act.

In reply to the Bijli Mazdoor Panchayat's observations, the Government states first of all that this complaint is not about the regular company (Thermal Power Station, Ukai) and its 2,150 regular employees, but is specifically regarding workers who are working outside the factory premises to separate burnt coal from the flowing water. The Government specifies that the Thermal Power Station, Ukai, is a government factory owned by the Gujarat Electricity Board which has given the work of lifting the burnt coal ash to M/S Shital Traders at the rate of Rs.13,100,000 for one full year. This firm employed 200 persons known as Mukadams, who have not been registered under the Contract Labour (Regulation and Abolition) Act, and whose remuneration rates are from Rs.155 to Rs.165 per ton depending on the quantity of burnt coal ash lifted from the premises. These Mukadams employ members of their family and, if necessary, outsiders for the job. Mukadams are paid piece-work rates on a monthly basis, while workers who are not members of the family are paid fixed wages of Rs.25 per day on a monthly basis. The minimum wage under the Minimum Wages Act, 1948, for unskilled workers is fixed at Rs.45 per day in the cases covered by any of the scheduled employment stipulated under the Act. However, according to the Government, the above activity has not been covered by any scheduled employment under the Minimum Wages Act, 1948. Provisions of the said Act, therefore, could not be implemented in this activity where there is no prescribed minimum wage. The Government deduces from this fact that there is, at present, no breach of the Convention, but states, however, that the Commissioner of Labour is making a proposal to cover this activity under the scheduled employment.

The Committee notes the Government's explanations and recalls the obligation for the ratifying State, under Article 1 of the Convention, to create or maintain minimum wage fixing machinery for workers employed in certain of the trades or part of trades in which two conditions prevail, namely: (i) the absence of arrangements for the effective regulation of wages by collective agreement or otherwise; and (ii) the existence of exceptionally low wages. It also recalls the explanations provided in paragraph 62 of its General Survey of 1992 on minimum wages, according to which the creation or maintenance of methods for fixing minimum wages is not enough to comply with the obligation arising from the Convention, but it is also necessary to use these methods for the effective regulation of minimum wages. The Committee notes 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, Ukai, premises (the "Ash Area") to separate burnt coal from the flowing water. It hopes that this action will be undertaken in the near future and requests the Government to supply information on any development in this respect. The Committee would also be grateful to be informed of the outcome of the petition before the High Court of Gujarat.

Application of minimum rates of wages to part-time workers

The Committee notes that, according to the Tamil Nadu 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 which since 1977 range in amount from Rs.100 with Dearness Allowance of Rs.85 to Rs.150 with Dearness Allowance of Rs.93.60. Conservancy and other works are only paid consolidated monthly wages of Rs.60.

In reply to the Tamil Nadu AITUC's comments, the Government indicates that the monthly minimum wage rates of unskilled workers in local authorities where workers like scavengers and pumpset operators are employed, were revised by the Government of Tamil Nadu on 1 July 1977 at the rates of Rs.100 to Rs.130 with a Dearness Allowance of Rs.85. In some of the districts, these categories of workers are receiving salaries, in accordance with the Fifth Tamil Nadu Pay Commission Report, which are higher than the minimum wage rates fixed by the Government. In some of the districts, these categories of workers are working part-time, i.e. less than the normal working hours. Therefore, these part-time workers are not paid at the minimum wage rates as per the prescribed norms, and their wages are fixed by the concerned District Collector taking into account the financial position of the Panchayat union concerned. The government of Tamil Nadu has issued necessary instructions to the Commissioners of all the Panchayat unions to pay the minimum wage rates fixed by the Government. These instructions are, however, applicable to full-time workers. Moreover, the trade unions are free to file claim petitions before the concerned authorities under Section 20(2) of the Minimum Wages Act, 1948, when they come across any case of violation. The Government stresses 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 takes due note of these indications. It recalls that under Article 3.2 (2) of the Convention, minimum rates of wages which have been fixed shall be binding on the employers and workers concerned and, accordingly, unskilled part-time workers shall 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 shall be applied in determining the amount of wages calculated pro rata on the hours worked. The Committee hopes that the Government will take the necessary measures to ensure that the wages of part-time workers are proportionate to the minimum rates of wages of unskilled workers in local authorities. It requests the Government to provide a copy of the following texts on minimum wages, as referred to in the Tamil Nadu AITUC's communication: (i) government of Tamil Nadu, G.O. No. 449 dated 6 June 1977; and (ii) R.D.L.A., letter No. 106883/M11/77.

Other points

The Mahabubnagar District Contract Labour Union indicates, in its observations, that the migrant labourers of the Mahabubnagar District, called "Palamoori labourers", do not receive minimum wages. The FUMLOG states that migrant workers are employed by factory owners in Goa under very precarious conditions of work, safety and health and living, without any social security protection and, in most cases, without being paid the minimum wage. The Committee notes that the Government has not provided information regarding these observations made by the Mahabubnagar District Contract Labour Union and the FUMLOG. It requests the Government to do so. It hopes that the Government will continue 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", to migrant workers in Goa, and to homeworkers as mentioned in the Committee's previous comments.

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

CMNT_TITLE

1. The Committee notes the observations made by the United Trade Union Centre (UTUC) that in some cases the employers have taken cases relating to payment of minimum wages to the courts of law, with the result of withholding the benefit of the minimum wages to the concerned workers. It requests the Government to supply the texts of decisions of courts of law involving questions of principle relating to the application of the Convention in accordance with point VI of the report form.

2. The Committee notes that the All India Organization of Employers (AIOE) is of the opinion that minimum wage fixing in the small-scale or household sectors like cottage industries has been counterproductive to employment generation, and calls for more flexibility. It recalls that Article 3, paragraph 2(1), of the Convention requires the consultation with representatives of the employers and workers concerned before the minimum wage fixing machinery is applied in a trade or part of trade, and that its paragraph 2(3) prohibits abatement of the fixed minimum rates of wages by individual agreement. The Committee would be grateful to the Government for including in future reports information on the application of these provisions.

3. Regarding the contract workers employed by the Steel Authority of India Ltd. (SAIL), the Committee notes the notification issued by the Government of West Bengal dated 15 July 1989 prohibiting employment of contract labour in all SAIL stockyards at Calcutta and the Government's indication that this notification has however been kept in abeyance due to the ad interim injunction issued by the Calcutta High Court. It asks the Government to supply information on the application in practice of the minimum wage rates to the concerned workers.

4. The Committee also notes with interest the information supplied by the Government on the current rates of wages of workers in the cinema industry in West Bengal, which are higher than the minimum rates fixed by the notification of 1970, concerning which the Committee has been commenting.

5. The Committee would be grateful if the Government would provide information on the practical application of the Convention, for example, the results of inspection, the cases of violation observed and sanctions imposed in accordance with Article 4 and points III and V of the report form.

CMNT_TITLE

With reference to its previous comments, the Committee notes the Government's report and the attached observations of the United Trade Union Centre (UTUC) and the All India Organization of Employers (AIOE).

1. In connection with the observations made previously by the Hind Mazdoor Sabha (HMS) workers' organization, regarding the actual fixation of regional minimum wages, the Government indicates that the Regional Minimum Wages Advisory Committee concluded that, due to the varying socio-economic conditions in different states, fixing of uniform minimum wage even on regional basis was not feasible. It adds that the respective authorities in a region should endeavour to reduce disparities in minimum wages over a period of time. According to the Government, ten states or union territories have resorted to the fixation of variable minimum wages according to different geographical zones, which are not more than four, within the same state. The Committee takes due note of these indications and also of the information attached to the report on the number of scheduled employments for which minimum wages have been fixed.

As regards the HMS's comment on the application of the minimum wage to homeworkers, the Committee notes the Government's indication that, although the provisions of the Minimum Wages Act, 1948, are not specifically aimed at covering homeworkers, the homeworker engaged in any of the above-mentioned scheduled employments is governed by its provisions.

The Committee requests the Government to continue to provide information on the results of the application of the minimum wage fixing machinery in accordance with Article 5 of the Convention, including the indication of the approximate numbers of workers covered and the minimum rates of wages fixed.

As to the implementation of the minimum wages in practice, on which the HMS also commented, the Committee notes the Government's indication that the central as well as the state governments are the appropriate authorities for the enforcement of relevant provisions in their respective jurisdictions. It hopes that the Government will continue 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 homeworkers.

2. In connection with the comments made previously by the Bharatiya Mazdoor Sangh (BMS) workers' organization, the Committee notes the Government's statement that various proposals to amend the Minimum Wages Act are under active consideration of the Government, and requests the Government to indicate any development in this regard.

3. The Committee is also addressing a direct request to the Government on certain points, including the observations made by UTUC and AIOE.

CMNT_TITLE

The Committee requests the Government to provide information on the following matters raised in its previous direct request:

1. The Committee recalls that, in connection with the comments submitted previously by the Steel Workers' Federation of India, it requested the Government to communicate information on the measures taken to ensure the payment of wages not less than the prescribed minimum rates to the contract workers employed by the Steel Authority of India Ltd. (SAIL), and on the measures taken following the decision of the Supreme Court of India, dated 14 November 1988.

The Government stated in its last report that, following the Supreme Court decision, the Government of West Bengal had issued a notification on 15 July 1989, prohibiting employment of contract labour in the stockyards of SAIL in the vicinity of the Calcutta Port, and that, in view of the need of appropriate rehabilitation for the contract labourers, the final date for disengaging the contract labour had not yet been fixed. The Government also indicated that the contract on terms and conditions provides for the payment of wages not less than the minimum wages and for a system of a certificate of wage payment. It further stated that in the Calcutta Port stockyard, the tripartite negotiation including the contractors, the contract labour union and the Government of West Bengal made the wage settlements, under which the current minimum wage rate for unskilled manual labour was higher than the prescribed minimum wage. The Committee notes these indications and requests the Government to continue supplying information on this issue including, in particular, the text of relevant notifications made by the Government of West Bengal.

2. Regarding the implementation of the legal minimum wage in respect of cinema workers in West Bengal, the Committee previously requested the Government to supply information on the efforts undertaken by the government of West Bengal, so that cinema workers will be paid at a rate corresponding to the legal minimum at least. The Committee noted that the Government's last report simply indicated in this regard that the Committee would be informed about further developments, if any. The Committee requests the Government to indicate whether there has been any court decision on the appeal of 1976 against the notification of 1970 fixing the minimum wage rates. It would be grateful if the Government would provide further information on the practical application of the minimum wages to those workers, including, for example, the results of inspection, the cases of violation observed, and any sanctions imposed.

CMNT_TITLE

1. The Committee notes the observations made by the Hind Mazdoor Sabha (HMS) workers' organization on the application of the Convention. As to the guidelines issued by the Central Government for the fixation of regional minimum wages, to which the Committee referred in its previous comments, HMS states that no progress was made in the actual regional minimum wage fixing, because of the lack of agreement. It points out that several states with a varying degree of industrial development are grouped in a region, and that the guidelines have no statutory force like the Minimum Wages Act, 1948. Besides, HMS considers that the division of a state into wage zones should be minimized for easier implementation, and observes that the application of revised minimum wages is often suspended because the case is referred to the High Court on technical grounds. HMS also mentions the difficulties of applying the minimum wage to homeworkers, in spite of the theoretical coverage of the Minimum Wages Act. As to the enforcement, HMS indicates difficulties facing the inspectors, such as the lack of transport facilities.

The Committee notes that the Government has not communicated its comments on these observations, and invites it to do so and to provide also comprehensive information on the results of the application of the minimum wage-fixing machinery in accordance with Article 5 of the Convention. As to the implementation of the minimum wages, the Committee recalls that the Government's awareness of such impediments as shortage of staff, lack of transport facilities has already been noted in the previous direct request. It again hopes that the Government will maintain its consciousness of this issue and will continue to indicate any measures taken to ensure better application of the law on minimum wages in the entire territory.

2. The Committee recalls that in its previous comments, it considered the comments made by the Bharatiya Mazdoor Sangh (BMS) workers' organization concerning, inter alia, the application of a series of recommendations that had been made by the Labour Ministers' Conference of the States of the Union. The Committee then noted the Government's indication that it was considering amendments to the Minimum Wage Act, 1948, to provide for the review of minimum wages at intervals not exceeding two years, or when there are variations in the consumer price index, and also that the Government was examining amendments to increase the penalties for violations of the Minimum Wages Act. Noting that no new information has been available in this regard, the Committee requests the Government to indicate the progress achieved in amending the Minimum Wage Act in line with the above recommendations.

3. The Committee is also addressing a direct request to the Government on certain points.

[The Government is asked to report in detail for the period ending 30 June 1994.]

CMNT_TITLE

1. The Committee notes the information supplied by the Government concerning, in particular, the extension of the scope of the minimum wage fixing machinery, and the recent adjustments in the minimum wage rates fixed. It requests the Government to continue supplying information on the results of the application of the minimum wage fixing machinery.

2. The Committee recalls that, in connection with the comments submitted previously by the Steel Workers' Federation of India, it requested the Government to communicate information on the measures taken to ensure the payment of wages not less than the prescribed minimum rates to the contract workers employed by the Steel Authority of India Ltd. (SAIL), and on the measures taken following the decision of the Supreme Court of India, dated 14 November 1988.

The Government states that, following the Supreme Court decision, the government of West Bengal issued a notification on 15 July 1989, prohibiting employment of contract labour in the stockyards of SAIL in the vicinity of the Calcutta Port, and that, in view of the need of appropriate rehabilitation for the contract labourers, the final date for disengaging the contract labour has not yet been fixed. The Government also indicates that the contract on terms and conditions provides for the payment of wages not less than the minimum wages and for a system of a certificate of wage payment. It further states that in the Calcutta Port stockyard, the tripartite negotiation including the contractors, the contract labour union and the government of West Bengal makes the wage settlements, under which the current minimum wage rate for unskilled manual labour is higher than the prescribed minimum wage. The Committee notes these indications and requests the Government to continue supplying information on this issue including, in particular, the text of relevant notifications made by the government of West Bengal.

3. Regarding the implementation of the legal minimum wage in respect of cinema workers in West Bengal, the Committee previously requested the Government to supply information on the efforts undertaken by the government of West Bengal, so that cinema workers will be paid at a rate corresponding to the legal minimum at least. The Committee notes that the Government simply indicates in this regard that the Committee would be informed about further developments, if any. The Committee requests the Government to indicate whether there has been any court decision on the appeal of 1976 against the notification of 1970 fixing the minimum wage rates. It would be grateful if the Government would provide further information on the practical application of the minimum wages to those workers, including, for example, the results of inspection, the cases of violation observed, and any sanctions imposed.

4. With reference to the previous comments regarding guidelines for regional minimum wages, the Committee notes the Government's indication that the said guidelines are the outcome of a tripartite consultation at the Indian Labour Conference. The Government also states that the fixation and revision of wages continue to be done by each state government in accordance with the provisions of the Minimum Wages Act, 1948, including the provisions on the equal participation of the employers and the workers, and taking into consideration the recommendations of the regional minimum wages advisory committees set up under the said guidelines. The Committee requests the Government to indicate any regional characteristics or tendencies observed, when it communicates in its future reports information on the results of the application of the minimum wage fixing machinery in accordance with Article 5 of the Convention.

5. As regards the measures for the effective implementation of the law on minimum wages, the Committee notes the Government's reference to such impediments as shortage of staff, lack of transport facilities and lack of workers' awareness. It hopes that the Government will maintain its consciousness of this issue and continue indicating any measures taken to ensure better application of the law on minimum wages in the entire territory.

CMNT_TITLE

1. The Committee recalls that in its previous comments, it considered the comments made by the Bharatiya Mazdoor Sangh (BMS) workers' organization concerning, inter alia, the application of a series of recommendations that had been made by the Labour Ministers' Conference of the States of the Union. The Committee then noted the Government's indication that it was considering amendments to the Minimum Wage Act, 1948, to provide for the review of minimum wages at intervals not exceeding two years, or when there are variations in the consumer price index, and also that the Government was examining amendments to increase the penalties for violations of the Minimum Wages Act. The Committee therefore requested the Government to indicate the progress achieved in amending the Minimum Wage Act in line with the above recommendations.

The Committee notes that, in its latest report, the Government simply states in response to the above comments that a number of amendments to the Minimum Wages Acts are under the active consideration of the Government. It hopes that the next report of the Government will contain detailed information on any concrete steps taken in this respect.

2. With reference to the comments submitted previously by the BMS concerning the minimum wage of cinema workers in West Bengal and the comments submitted by the Steel Workers' Federation of India, respecting the application of some provisions of the Convention, the Committee refers to the request that is being addressed to it directly.

CMNT_TITLE

1. The Committee has taken note of the Government's report and of the renewed allegations formulated by the Bharatiya Mazdoor Sangh Workers' Organisation, as well as the Government's comments on the subject of these allegations. The Committee has dealt with the question in its observation to which it would ask the Government to refer.

2. The Committee refers to its previous comments concerning the communication received from the Steel Workers' Federation of India in August 1987, in which this Federation alleged that a large number of workers in the Steel Authority of India Ltd. (SAIL) were performing work of a permanent nature in the stockyards and dockyards of this public enterprise, but were not being paid the minimum wages that had been fixed. The Federation also indicated in this communication that these workers were not recruited directly by the SAIL but that they had been working for it for several years. The allegations of the Federation focused therefore on the non-payment of minimum wages and on the nature of the contract binding the workers concerned to the SAIL. Having analysed the allegations of the Federation and the comments of the Government in reply to these allegations, the Committee did not consider itself in a position to conclude, on the basis of the information available, that the work performed by the contract workers in question was of a permanent and full-time nature. It had also taken note of the Government's statement, according to which the workers in question were entitled to receive the minimum wage. Although it did not consider that there was sufficient evidence that the requirements of the Convention had not been respected in this instance, the Committee had requested the Government to indicate whether measures had been adopted, in accordance with the Law of 1970 concerning contract labour (regulation and abolition), or under the terms of any other law, to determine the exact nature of the work performed by these workers.

The Committee takes note of the information supplied by the Government on this issue in its last report indicating that article 10 of the above-mentioned Law allowed the governments of the various constituent States to prohibit the employment of contract labour by following the procedure provided for by that article. In this context, the Committee notes that a Decree of the Supreme Court of India, dated 14 November 1988, directed the government of West Bengal to examine the question of the prohibition of the employment of contract labour in six naval stockyards where the SAIL carries out its operations, and to take the necessary measures in the near future. The Committee would be grateful if the Government would communicate information on the measures adopted by the government of West Bengal following the decision of the Supreme Court of India. With regard to the wages paid to the workers employed by the SAIL, the Committee takes note of the Government's statement that this company pays not only the minimum wage rates, but wages considerably in excess of the minimum. The Committee hopes that the Government will continue to communicate information on the measures adopted by the SAIL and the governments concerned, so that the workers in question will be paid at least at the official rate fixed for minimum wages, in accordance with the provisions of Article 3, paragraph 3, of the Convention. Please communicate copies of any future contracts drawn up by the above-mentioned company regarding the workers concerned.

3. Referring to its previous comments concerning the allegations that cinema workers in West Bengal were not receiving the minimum wages applicable to them because when the minimum wages were revised in 1970, the employers concerned obtained an injunction from the Calcutta High Court against implementation, the Committee notes that according to the report, the government of West Bengal, which is the authority responsible in accordance with the law on minimum wages of 1948, cannot apply the provisions of the notification of 1970 fixing the minimum wage for workers in the cinema industry so long as the court has not yet pronounced on the appeal of 1976 against this notification. However, the Government adds that minimum wages are fixed in approximately 750 cinema halls by means of negotiation between the parties concerned and in conformity with the directives adopted by the above-mentioned government in October 1982. The Government also indicates that the union concerned has not provided details on the defaulters. The Committee would be grateful if the Government would continue to supply information on the efforts undertaken by the government of West Bengal so that cinema workers will be paid at a rate that corresponds to the legal minimum wage at least.

4. With regard to the fixing of a minimum wage rate at national level, the Committee had taken note in its earlier comments of the efforts made by the central Government to establish guide-lines under which minimum wages could be fixed at regional level. The Committee notes that, according to the latest report, these guide-lines have been established and provide for the setting up of six regional consultative committees on minimum wages. The Committee also notes the statements on the composition and the functions of these regional committees, and on the elements that they must take into account when fixing minimum wage rates. The Committee would be grateful if the Government would, in the first place, indicate whether the representatives of the workers and employers concerned or of their respective organisations were consulted when the guide-lines were being formulated and, in the second place, to specify the measures adopted or planned to ensure that the employers and the workers concerned will participate in equal numbers and on an equal footing in the application of these guide-lines, in accordance with the provisions of Article 3, paragraph 2. Finally, it would be grateful if the Government would communicate information on the practical implementation of these guide-lines and on the results obtained.

5. In its previous comments, the Committee had also referred to the observations transmitted by the Bharatiya Mazdoor Sangh Workers' Organisation and the Indian Trade Union Congress on the need to reinforce existing measures to ensure better application of the provisions on minimum wages, and it had noted that, according to the comments of the Government on the subject of these observations, efforts had been made to reinforce the labour inspection services, and that a government-financed project had been undertaken, on a trial basis, to grant financial aid to four States for this purpose. The Committee notes that, according to information supplied by the Government in its latest report, the above-mentioned project has functioned satisfactorily and has led to the appointment of 154 of the 200 rural inspectors envisaged. The Committee also notes that the question of the effective application of the Law on Minimum Wages, 1948, has been the subject of several discussions at the Conference of the Ministers of Labour of the Member States of the Union and that in 1987, at its 36th Session, the Conference formulated a set of recommendations aimed at reinforcing the effective implementation of the law on minimum wages. The Committee would be grateful if the Government would indicate the measures introduced with a view to implementing the above recommendations and to ensure better application of the law on minimum wages in the entire territory.

CMNT_TITLE

1. The Committee notes with interest, from the information supplied by the Government in its last report (which was received too late to be examined during the Committee's previous session), the extension of the machinery for the application of minimum wage rates to new categories of workers, and the recent adjustments in the rates of minimum wages and special allowances set by the central Government, the State Governments and the administrations of Union Territories. The Committee hopes that the Government will continue to supply information on the measures that are adopted relating to minimum wages.

2. The Committee also notes the new comments made by the Bharatiya Mazdoor Sangh (BMS) workers' organisation, which were transmitted with the Government's report. This organisation alleges that by a recent judgement by the Supreme Court the appeal channels open to workers against violations of the Minimum Wages Act, 1948 is now restricted to appeal to the administrative bodies, whereas before that, workers could appeal to the bodies set up under section 20(1) of the Minimum Wages Act or could approach the Labour Court, in accordance with section 33.C(2) of the Industrial Disputes Act, 1947. In the same letter, the BMS alleges that the Labour Ministers' Conference of the States of the Union made a series of recommendations that have not been applied seriously by all the States of the Union. In particular, the BMS refers to the following recommendations: (a) that the minimum wages fixed under the Minimum Wages Act should not be lower than the poverty level determined by the Planning Commission; (b) that minimum wages should be revised every two years or when the consumer price index increases by 50 points in respect of the previous index; and (c) that, in addition to fixed minimum rates, a separate cost-of-living allowance should be fixed in relation to the consumer price index. Finally, the BMS indicates that the minimum rates that have been fixed are frequently challenged by employers appealing to the high courts, which results in the application of the minimum wage rates being suspended. The BMS ends its allegations by suggesting that tripartite advisory bodies should be set up at the district level to assist the inspection machinery in supervising the application of minimum wages.

3. The Committee notes the observations made by the Government in its report in relation to the above comments made by the BMS. With reference to the allegations concerning the judgement of the Supreme Court, the Government indicates that the provisions of the Minimum Wages Act, 1948, are more beneficial for the workers, since under section 20(3) in the case of a claim arising out of payment of less than the minimum wage rates applied, the workers not only receive compensation for the difference between the sum that has been paid and the minimum wage that should have been paid, but may also be awarded compensation of up to ten times the difference. The Government also indicates that it is considering certain amendments to the above Act, including section 20 (regarding claims). With regard to the allegations made concerning the recommendations put forward by the Labour Ministers' Conference of the States of the Union, the Government indicates that the recommendation made by the Labour Ministers' Conference at its 36th session in 1987 that minimum wages should not be fixed below the poverty level, has been applied by a number of States and that this recommendation was forwarded to all the Governments of the States and the corresponding administrative authorities for them to take the appropriate measures. The Labour Ministers' Conference held in 1988 suggested that the above recommendation be taken into account when reviewing minimum wages for agriculture. With regard to the recommendation made by the Labour Ministers' Conference in 1981 at its 31st session that minimum wages should be reviewed every two years instead of every five years as laid down in the Minimum Wages Act, or when the rise in the consumer price index reaches 50 points, the Government indicates that this recommendation has been applied by various States, including New Delhi, which is mentioned specifically by the BMS in its comments. The Government also indicates that it is considering a series of amendments to the Minimum Wages Act to provide that minimum wages should be reviewed at intervals not exceeding two years or when there are variations in the consumer price index. The Government also states that it is examining amendments to increase the penalties for violations of the Minimum Wages Act. Finally, as regards the special cost-of-living allowance, the Government states that the central Government introduced this special allowance when it reviewed minimum wages in 1988. While noting the above information, the Committee hopes that the Government will take the necessary measures to amend the Minimum Wages Act in line with the above recommendations and that it will indicate the progress achieved in this respect in the near future. The Committee refers to the request that is being addressed directly to the Government concerning the other matters that the Government deals with in its report.

4. With reference to the comments submitted previously by the BMS concerning the minimum wages of cinema workers in West Bengal and the comments submitted by the Steelworkers' Federation of India, respecting the application of some provisions of the Convention, the Committee requests the Government to also refer to the request that is being addressed to it directly.