After the Union Cabinet last month approved the new Wage Code Bill, which will ensure a minimum wage across all sectors by integrating four labour related laws and doubling the minimum wages from the present about Rs 9,000 per month to Rs 18,000, the Apparel Export Promotion Council (AEPC) has sought government’s clarification over minimum wages in the garment industry, stating that if the wages in the industry get doubled to Rs 18,000 per month, it will affect the exports, employment and also lead to increment in the costs.
AEPC Chairman Ashok G Rajani said there is a lot of confusion surrounding minimum wages after clearance of the Wage Code Bill by the Cabinet and also pointed that the booking of export orders has got impacted post clearance of the Wage Code Bill by the Cabinet and said that a clarification by the government is required to restore the confidence of foreign buyers. He further said that amid challenging environment, doubling of the minimum wages will put additional burden on the garment sector and would make it unviable and unsustainable.
AEPC Chairman while stressing that around 70 per cent of the workforce in the ready-made garment industry are women, said that fixing of minimum wages at Rs 18,000 per month will not only adversely affect the exports, but lead to a fall in employment generation in the sector.