Delhi High Court’s Rejection of Wage Hike Brings Relief to the Industry
Bringing relief to hundreds of factories in Delhi, the Delhi High Court has dismissed the State Government’s move to increase minimum wages of workers and has also set aside an earlier notification by which a Minimum Wages Advisory Committee for all scheduled employments was set up, on the ground that the constitution of the Committee was flawed.
In my interaction with factory owners, I find that no one is really against the rise in minimum wages, but all are of the opinion that there has to be a balanced approach to the ‘calculation’ that safeguards the competitiveness of the factories… I completely agree with this logic.
In fact, even during our visits to Bangladesh, the same logic is put forward by the industry there… The Government, NGOs, unions and associations, all need to sit together to find the best formulae to calculate minimum wages as per cost of living and practical implications to business… After all if factories close down, whose purpose would it serve?
I was extremely satisfied to read the content of the Court proceedings, as it reflected the maturity of the decision makers and the balanced approach taken – The Court noted that though the revision of wages ‘is sorely needed’, the ‘hurried attempt’ and ‘non-application of mind – contravening principles of natural justice has unfortunately disrupted this course, yet again’ …
The proposed notification for wage increase announced in 2017 envisaged a more than 37 per cent increase in wages across the board from unskilled to semi-skilled and skilled workers in the Delhi-NCR region. Since the announcement, factories were fearing about future business, and particularly exporters who are competing on an international platform… The High Court’s decision is indeed a reason to cheer and could be the required jack to uplift the dwindling spirits of garment exporters in the region.
While increasing wages are a challenge at the worker level, finding the right candidate at the managerial level is no less daunting. During placements, both the students and companies are evaluating each other. While students go by a company’s reputation, the companies are increasingly using psychometric test as a tool to measure a person's logical and analytical abilities.
Though psychometric tests support the recruitment process, sometimes it becomes difficult for companies to decide on the weightage to be given to technical ability and psychometric scores, in the selection process. In this issue, views of industry professionals on this growing topic are discussed.
This issue also carries an exclusive interaction with Ashish Kansal, Executive Director, SMPP Pvt. Ltd., that unravels features which make the newly procured Indian Army jackets unique. On the other hand, Dr. Prabir Jana, Professor, NIFT, Delhi explores the operation breakdown of exactly the same shirt in two different factories. The logic is simple…, when the product remains standard, why is the process so different?
Deepak Mohindra Editor-in-Chief