May go on a day-long strike to register protest against the decision

The Aam Aadmi Party (AAP) Trade Wing is disappointed with its government’s decision to hike minimum wages by about 50 per cent and is likely to go on a day-long strike in protest against the move.

Arguing that 50 per cent increase in minimum wages, one of the most significant announcements made by Chief Minister Arvind Kejriwal in his Independence Day address here on Monday, would “hurt trade and industry”, representatives of the AAP’s Trade Wing have demanded that the government reconsider the decision.

According to a senior government official, the proposal to increase minimum wages for unskilled labourers from Rs.9,568 to Rs.14,052, for semi-skilled from Rs.10,582 to Rs.15,471 and for skilled labourers from Rs.11,622 to Rs.17,033 will be tabled at a meeting of the Delhi Cabinet on Wednesday where it is expected to receive an unconditional go-ahead. The proposal will then be sent to Lieutenant-Governor Najeeb Jung for his approval and after that it will be notified.

“We represent Delhi’s 15 lakh traders and industrialists. The step (to increase minimum wages) will harm Delhi's trade and industry in the long run. Wages are already high in the Capital and if they are increased further, trade and industry might seek a shift to neighbouring States,” said Brijesh Goel, convenor, AAP Trade Wing.

Mr. Goel said minimum wages in the Capital are already 30 per cent higher than States such as Haryana, Rajasthan and Uttar Pradesh. The decision might force the industry to shift to other States and cause a significant loss of revenue to the government.

Sources said the Trade Wing is mulling a strike to register its protest and, according to insiders, the grievance has already been conveyed to Labour Minister Gopal Rai.

Mr. Rai, last Thursday, had met with representatives of various labour and worker unions with the assurance that the AAP government was in favour of the hike.

A 13-member tripartite body of employee representatives and employers’ representatives and government representatives and officers headed by Secretary-cum-Commissioner (Labour) had submitted its report to the Labour Minister earlier during the day.

“We are with traders and industrialists on this issue and will meet with more than a 100 of trade and industry unions at 11 a.m. on Wednesday to decide the future course of action,” Mr. Goel added.

Ironically, various labour union representatives and members are scheduled to meet Mr. Kejriwal at his residence on Wednesday to thank him and the government for announcing the hike in minimum wages.