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Delhi (India) garment manufacturers upset over minimum wage hike

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Garment WorkersAnil Baijal, Lieutenant Governor of the national capital of India, New Delhi, has recently cleared the Delhi Government’s proposal to revise minimum wages of industrial workers by about 37 per cent across various categories. The minimum wages would now go up from Rs. 9,724 to Rs. 13,350 a month for unskilled labourers; from Rs. 10,764 to Rs. 14,698 for semi-skilled labourers; and from Rs. 11,830 to Rs. 16,182 for skilled labourers.

The garment manufacturers in Delhi have expressed their disappointment over the decision as most of them feel the hike will ultimately affect their business negatively. The manufacturers are reportedly planning to shift from Delhi to Noida and Gurgaon ever since the hike has been announced.

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Unveiling exclusively to Apparel Resources, Bharat Sahni, Director of Wear Well India Pvt. Ltd. – a Delhi- and Noida-based garment export house, said, “The step of Kejriwal Government will force us to shut down our Okhla-based factory as we cannot increase our margins. If the hike affects our business, there is no meaning to do business in Delhi.”

It’s worth mentioning here that previously the Delhi Government had proposed a 50 per cent hike in the minimum wages which the former LG Najeeb Jung declined.

The President of Delhi Exporter’s Association and Director of Monica Garments, Anil Varma, too expressed his concern over this step of the Government. While having words with Apparel Resources, Anil commented, “Delhi Government must understand the fact that increasing minimum wages may be beneficial for labour class but for the business owners and manufacturers, this decision is disastrous especially when we are fighting with clients over cost issues. Garment business in Delhi is under threat.”

 

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