LRIP

Storm of Rejection to the Act of Augmenting Minimum Wages

30th July 2021.

On this past Wednesday, KCCI and other trade organizations repulsed the decision by the Sindh government of increasing 43 percent in min. wages. They termed it as an unconstitutional act that will end up with more negative consequences than positive, one is making the industries unviable and inoperative.

At the command to increase wages from Rs.17,500 to Rs.25,000 without ensuing payable progression of law and on contrary to the provisions of Sindh Minimum Wage Act 2015 and ILO’s minimum wages fixation convention 1970.

They referred to the Federal and Punjab province policy of enhancing up to Rs 20,000, while in KPK and Balochistan it was Rs.21, 000 and minimum wages fixed by the province of Sindh were not justifiable to the proprietors.

Read:https://lrip.org.pk/fawad-chaudharys-speech-pertinent-to-primary-concerns/

Enhancing minimum wage is calculated to affect the manufacturing cost and will also overthrow target of generating import substitute industry, it further explained as the minimum wage was already lower in a contending country like Pakistan.

Karachi based industries hold a 54% share in national exports and according to statistics 67% of revenue is generated mainly from Karachi for the national treasury and 95% revenue for the Sindh Revenue Board, thus it will largely impact the economic enhancement of industries, and it would rather lead to recession, large redundancies and will have adverse effects on law and order of the country. The KCCI claimed that referring to many leading industries and authorities mutual concerns over the issue.

The trade organizations termed the Sindh Government’s update of 9th July 2021 as unjustified, unreasonable, and accomplished in non-amenability of the due process of law, overlooking the prerogative of the minimum wage board and without referring to shareholders and the business representatives.

Please contact the Legal Research Institute of Pakistan for further assistance.

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