Observation (CEACR) - adopted 1996, published 85th ILC session (1997)

The Committee notes the observations respectively made by the Tamil Nadu All India Trade Union Congress (AITUC), the Bijli Mazdoor Panchayat, the Mahabubnagar District Contract Labour Union and the Federation of Unorganized Migrant Labour of Goa (FUMLOG) concerning various infringements of the minimum wage regulations in the country. The Committee also notes the Government's comments on these observations. It recalls the Government's earlier statement that various proposals to amend the Minimum Wages Act were under active consideration by the Government, and requests the Government to indicate any progress made in this regard.

The binding force of minimum wages

In its observation, the Bijli Mazdoor Panchayat indicates that 4,000 Scheduled Tribe workers, the majority being women, and all belonging to the low caste called "Adivasis", are forced to work in inhuman conditions in the "Ash Area" by the Gujarat Electricity Board, a Statutory Board of the State Government of Gujarat, notwithstanding the fact that the "Ash Area" is attached to the Thermal Power Station and is a factory under the Factory Act. Thus, the Bijli Mazdoor Panchayat has filed a petition before the High Court of Gujarat for implementation of different labour laws in the State of Gujarat, including the Minimum Wages Act.

In reply to the Bijli Mazdoor Panchayat's observations, the Government states first of all that this complaint is not about the regular company (Thermal Power Station, Ukai) and its 2,150 regular employees, but is specifically regarding workers who are working outside the factory premises to separate burnt coal from the flowing water. The Government specifies that the Thermal Power Station, Ukai, is a government factory owned by the Gujarat Electricity Board which has given the work of lifting the burnt coal ash to M/S Shital Traders at the rate of Rs.13,100,000 for one full year. This firm employed 200 persons known as Mukadams, who have not been registered under the Contract Labour (Regulation and Abolition) Act, and whose remuneration rates are from Rs.155 to Rs.165 per ton depending on the quantity of burnt coal ash lifted from the premises. These Mukadams employ members of their family and, if necessary, outsiders for the job. Mukadams are paid piece-work rates on a monthly basis, while workers who are not members of the family are paid fixed wages of Rs.25 per day on a monthly basis. The minimum wage under the Minimum Wages Act, 1948, for unskilled workers is fixed at Rs.45 per day in the cases covered by any of the scheduled employment stipulated under the Act. However, according to the Government, the above activity has not been covered by any scheduled employment under the Minimum Wages Act, 1948. Provisions of the said Act, therefore, could not be implemented in this activity where there is no prescribed minimum wage. The Government deduces from this fact that there is, at present, no breach of the Convention, but states, however, that the Commissioner of Labour is making a proposal to cover this activity under the scheduled employment.

The Committee notes the Government's explanations and recalls the obligation for the ratifying State, under Article 1 of the Convention, to create or maintain minimum wage fixing machinery for workers employed in certain of the trades or part of trades in which two conditions prevail, namely: (i) the absence of arrangements for the effective regulation of wages by collective agreement or otherwise; and (ii) the existence of exceptionally low wages. It also recalls the explanations provided in paragraph 62 of its General Survey of 1992 on minimum wages, according to which the creation or maintenance of methods for fixing minimum wages is not enough to comply with the obligation arising from the Convention, but it is also necessary to use these methods for the effective regulation of minimum wages. The Committee notes the Government's statement that the Commissioner of Labour is making a proposal to include in the scheduled employment the activity of the workers who are working outside the Thermal Power Station, Ukai, premises (the "Ash Area") to separate burnt coal from the flowing water. It hopes that this action will be undertaken in the near future and requests the Government to supply information on any development in this respect. The Committee would also be grateful to be informed of the outcome of the petition before the High Court of Gujarat.

Application of minimum rates of wages to part-time workers

The Committee notes that, according to the Tamil Nadu AITUC, the Village Panchayat conservancy workers (sweepers and scavengers) and the pump operators in most districts are still not paid the notified monthly minimum wages of Tamil Nadu which since 1977 range in amount from Rs.100 with Dearness Allowance of Rs.85 to Rs.150 with Dearness Allowance of Rs.93.60. Conservancy and other works are only paid consolidated monthly wages of Rs.60.

In reply to the Tamil Nadu AITUC's comments, the Government indicates that the monthly minimum wage rates of unskilled workers in local authorities where workers like scavengers and pumpset operators are employed, were revised by the Government of Tamil Nadu on 1 July 1977 at the rates of Rs.100 to Rs.130 with a Dearness Allowance of Rs.85. In some of the districts, these categories of workers are receiving salaries, in accordance with the Fifth Tamil Nadu Pay Commission Report, which are higher than the minimum wage rates fixed by the Government. In some of the districts, these categories of workers are working part-time, i.e. less than the normal working hours. Therefore, these part-time workers are not paid at the minimum wage rates as per the prescribed norms, and their wages are fixed by the concerned District Collector taking into account the financial position of the Panchayat union concerned. The government of Tamil Nadu has issued necessary instructions to the Commissioners of all the Panchayat unions to pay the minimum wage rates fixed by the Government. These instructions are, however, applicable to full-time workers. Moreover, the trade unions are free to file claim petitions before the concerned authorities under Section 20(2) of the Minimum Wages Act, 1948, when they come across any case of violation. The Government stresses that the workers engaged in any local authority are being paid at minimum wage rates wherever they are engaged in full-time work.

The Committee takes due note of these indications. It recalls that under Article 3.2 (2) of the Convention, minimum rates of wages which have been fixed shall be binding on the employers and workers concerned and, accordingly, unskilled part-time workers shall not be excluded from the application of the minimum wage rates of unskilled workers only because they are working part time; in other words, the minimum rate shall be applied in determining the amount of wages calculated pro rata on the hours worked. The Committee hopes that the Government will take the necessary measures to ensure that the wages of part-time workers are proportionate to the minimum rates of wages of unskilled workers in local authorities. It requests the Government to provide a copy of the following texts on minimum wages, as referred to in the Tamil Nadu AITUC's communication: (i) government of Tamil Nadu, G.O. No. 449 dated 6 June 1977; and (ii) R.D.L.A., letter No. 106883/M11/77.

Other points

The Mahabubnagar District Contract Labour Union indicates, in its observations, that the migrant labourers of the Mahabubnagar District, called "Palamoori labourers", do not receive minimum wages. The FUMLOG states that migrant workers are employed by factory owners in Goa under very precarious conditions of work, safety and health and living, without any social security protection and, in most cases, without being paid the minimum wage. The Committee notes that the Government has not provided information regarding these observations made by the Mahabubnagar District Contract Labour Union and the FUMLOG. It requests the Government to do so. It hopes that the Government will continue to indicate measures taken, by the central or the state governments, to ensure better application of the law on minimum wages in the entire territory, with particular reference to "Palamoori labourers", to migrant workers in Goa, and to homeworkers as mentioned in the Committee's previous comments.

A direct request is also being addressed to the Government on certain points, including the observations previously made by the United Trade Union Centre (UTUC) and the All India Organization of Employers (AIOE).