Bengaluru: The Karnataka High Court on Friday stayed the operation of three departmental circulars directing officials to withhold the implementation of revised minimum wages notified by the state government on May 22.Ju…

Bengaluru: The Karnataka High Court on Friday stayed the operation of three departmental circulars directing officials to withhold the implementation of revised minimum wages notified by the state government on May 22.Justice HT Narendra Prasad passed the interim order on petitions challenging the circulars issued by the Directorate of Municipal Administration, Karnataka Panchayat Raj Department and Karnataka State Audit and Accounts Department.The All India Trade Union Congress (AITUC), All India Central Council of Trade Unions (AICCTU), and the Centre of Indian Trade Unions (CITU) filed the petitions.On May 22, the state government issued a final notification revising the minimum wages for 83 scheduled employments in the state.The notification increased minimum wages across three zones (Zones 1, 2 and 3) and four skill levels (highly skilled, skilled, semi-skilled and unskilled), with the revised wages ranging from Rs 19,300 to Rs 31,100.While some government departments implemented the revised wages, and some private companies are also paying the revised rates, others did not. The aforementioned departments subsequently issued circulars between July and August putting the revision in abeyance.The petitioners argued that the circulars are “illegal, unconstitutional and deny lakhs of workers the benefit of revised minimum wages as per final notification”.While the HC order is likely to ensure that the revised wages are paid in the departments concerned, it is not yet clear whether the order will be legally binding on other government departments, boards and corporations.A source in the Chief Minister’s Office explained that since the revised minimum wages came into force once they were notified, the stay on the circulars withholding their implementation means that the departments concerned would have to implement the new wages.However, a source in the Labour Department said the interim order could specifically apply to the departments concerned and may not necessarily be applicable to other departments.According to estimates, the government may have to spend Rs 1,200 crore annually if the revised wages are implemented across all departments, boards and corporations.’Despite facing oppression…’: From guarantees to investments, Karnataka govt gives itself full marks”The financial implication on the government is worked out to around Rs 1,200 crore per year, as about 1.5 lakh outsourced workers are serving the government and are paid minimum wages,” the CMO source quoted earlier said.Trade unions have argued that the Rs 1,200 crore expenditure would not be burdensome to the exchequer. They said the money could be recovered through GST, specifically State GST (SGST), which is applicable since wages to contract labourers are paid through third-party manpower agencies.During a recent round-table discussion with media outlets, Chief Minister DK Shivakumar said the Labour Department had revised the minimum wages without bringing the matter before the Cabinet or obtaining prior financial approval.To resolve the issue, a Cabinet sub-committee headed by Deputy Chief Minister G Parameshwara was formed on August 13.The panel also includes Labour Minister Santosh S Lad, IT-BT Minister Priyank Kharge and Large and Medium Industries Minister MB Patil, among others.However, the sub-committee is yet to hold its first meeting.According to data collected by DH, the Labour Department, Collegiate Education Department, Minorities Welfare Department, Commissionerate of ESJS Medical Services and several other departments have already implemented the revised wages.

Source: Deccan Herald