Observation (CEACR) - adopted 1990, published 77th ILC session (1990)

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.