Trade unions insist that there should only be a binding minimum wage instead of a dual wage rate
The draft rules for the implementation of a new wage law have kept the criteria opaque for deciding the floor wage, binding across the country, prompting fear that it will allow the states to pay “distress wages” to workers.
The trade unions are unhappy with the concept of a dual wage rate — a binding floor wage and a non-binding minimum wage — itself, insisting that there should only be a binding minimum wage.
Like the Centre, each state government fixes a range of minimum wages for the various categories of labour. The draft rules allow the states to set their minimum wages below the Centre’s but not below the floor wage.
Further, the trade unions are unhappy that the draft rules on the minimum wage do not force the employers to distribute among the workers the “fruits of economic progress” achieved through their hard work.
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