Team Herald
MARGAO: Stating that an irrational increase in wages will force labour-intensive units to close down, Curtorim MLA Aleixo Reginaldo Lourenco on Saturday called for the Minister for Labour and Employment to consider industry views before going ahead with the proposed revision of wages.
In a letter to Labour Minister Atanasio ‘Babush’ Monserrate he pointed out that the industries, and all businesses in Goa have borne the brunt of the Covid-19 pandemic, the steep hike in power tariffs and increase in the cost of raw materials.
When minimum wages were revised at Rs. 307 for unskilled workers in 2016, the government, for the first time, introduced payment of Variable Dearness Allowance (VDA) to take care of the increase in Consumer Price Index (CPI) for industrial workers, the MLA said in his letter. “As of April 2022, the VDA has increased to Rs. 85 per day and, accordingly, the minimum wage payable has increased to Rs. 392 per day. The government’s statement that there has been no increase in wages for the last six years is totally wrong,” Reginaldo said.
“In the past, in the absence of VDA, wages were increased to around 40 to 42 percent. We do appreciate that there is an overall increase in cost of living. The industry bodies have, therefore, suggested that the minimum wage for unskilled workers be fixed at Rs. 307 plus Rs 83 plus Rs 43, which equals Rs. 435, which is an increase of 42 percent. Consequently, the minimum wages for other categories will also go up proportionately,” he added.
It is important to note that the wages are not the only cost for these businesses; they have to pay EPF, ESIC, LWF and bonuses which works up to another Rs. 95 per worker, besides, the cost of raw materials, power and transport among other things have gone up, said the Curtorim MLA.
“Further, the government should consider the wages in the neighbouring States to avoid influx of labour from other States into Goa, and deprive local youth of employment,” he added.
It is also given to understand that many Government Departments are not paying EPF, ESIC contribution of their workers on contract and, hence, it does not know the actual cost.
