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The Karnataka government is considering relaxing laws governing minimum wages, increasing current overtime hours to 100 hours per 72-hour quarter, and facilitating compliance with key labor laws to help resuscitate industries.
In a hour-long video conference on Saturday with members of the state chapter of the Confederation of Indian Industries (IIC), Labor Secretary P. Manivannan said Karnataka can do better than Uttar Pradesh with his own “brand of reforms” to help industries. resume operations after the covid-19 related crash is further relaxed.
The statement comes at a time when state governments like Uttar Pradesh, Gujarat and Madhya Pradesh have decided to exempt companies from labor law compliance to recoup investments and help companies start operations to make up for lost time and income.
The three-state measure had drawn strong criticism from union workers and activists, among others, who said it would only add to the exploitation of labor by employers.
“The CM office has asked us to review minimum wages,” Manivannan told more than 140 attendees. The secretary of labor later said that the minimum wages did not change, “but the change we made in the minimum wages this year will take effect from April. That will be reviewed.”
Manivannan added that there will be no downward revision of wages and the Prime Minister was particular about it. He said the state government led by B.S. Yediyurappa is already deliberating on increasing working hours over time and that the state cabinet may make a decision on this next week.
Union activists who also attended the call said Karnataka first “bowed to the builders ‘lobby and now to the industrialists’.”
When workers are deprived of food, housing and wages, the Secretary of Labor assures industrialists that no action will be taken if labor laws are violated, “said Maitreyi Krishnan of the Central Council of Indian Trade Unions. He said that these guarantees were “blatantly illegal and an abdication of duty.”
Manivannan said that no inspector will visit the factories for the next six months.
If the department receives any complaint about non-payment of wages, the department will first verify if the company is in a position to do so, then it will approach the industry body to investigate further and only get involved if the problem has not been resolved.
Some of the businessmen on duty also sought to forgo the one-hour break between shifts to help make up for lost time on production lines.
To a request about whether 100% of the staff can be recovered, he said he can recommend to the health department that it be allowed if the organization is confident of guaranteeing rules such as social distancing.
Industrialists who attended
The video conference sought to find out if the government would relax ESI benefits, provide provident funds, and it will be easier if companies withhold wages in the midst of a funding crisis.
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