The B S Yediyurappa administration has stalled the implementation of labour laws that were given effect through an ordinance last year, close on the heels of the Centre deferring four labour codes.
The state government had promulgated the Industrial Disputes and Certain Other Laws (Karnataka Amendment) Ordinance last year. One of the changes it introduced is to make only those establishments, employing 300 or more people, seek the government’s permission for closure, retrenchment or layoff.
The Bill to replace the ordinance was defeated in the Legislative Council, after which the government wanted to re-promulgate the ordinance. This has now been put on hold, Labour Minister Shivaram Hebbar told DH.
Also, the government is undecided on implementing new rules to govern minimum wages. On March 2, the government had issued the draft Code on Wages Karnataka Rules, 2021, seeking to redefine the parameters for minimum wages.
A meeting would be held on April 6 to decide on the implementation of the new wage code, Hebbar said.
The draft rules state that minimum wages will be fixed based on parameters, such as geographical area, standard working-class family (four people), food consumption (intake of 2,700 calories per day per consumption unit), clothing (66 metres of cloth per year per standard working-class family), housing rent (10% food and clothing expenditure), miscellaneous expenses (25% of the wage) and education, health and recreation constituting 25% of the minimum wage.
The All India Central Council of Trade Unions (AICCTU) has opposed the draft rules. “This is an assault on the rights of the working class and will push lakhs of workers into slavery,” it said.
“A comparison of the calculation under the existing law and the proposed rules would show a reduction in the wages of workers from the present Rs 9,935.61 to Rs 5,935.61. It fails to ensure that the increase in the cost of living is met with an increase in the Variable Dearness Allowance, resulting in workers working for the same wages despite the increase in the cost of living,” it argued.
AICCTU state committee member Maithreyi Krishnan questioned the transparency of the entire process of drafting the rules. “They did not consult anyone. They have not given any information about the rest of the codes,” she said.