The minimum wage issue in Bengaluru (Karnataka) is again in limelight and various brands have reacted on this.
The Worker Rights Consortium (WRC) estimates the total amount of unpaid wages so far to be more than £41millon. More than 4,00,000 garment workers in Karnataka have not been paid the state’s legal minimum wage since April 2020. It is being said that it is the biggest wage theft to have ever hit the fashion industry.
Scott Nova, ED, WRC said, “In terms of the number of workers affected and total money stolen, this is the most egregious act of wage theft we’ve ever seen.”
He further added that despite persistent demands from the WRC for the past two years, western brands had either refused to intervene or had not acted to ensure that workers making their clothes were paid in line with Indian law.
The annual cost of living increased to the minimum wage, the “variable dearness allowance” (VDA) was increased to Rs. 417 (£4.10) a month in April 2020. The WRC said that as this supplement for low-paid workers, which amounts to almost Rs. 16 a day, had gone unpaid for 20 months, each employee had been underpaid by Rs. 8,351 (£83).
As per the State Government, minimum wage for tailors, depending on grade and zones, is Rs. 10,186.80 to Rs.10,775. 86.
On the other hand, apparel manufacturers are of the view that the Ministry of Labour & Employment issued a proclamation suspending the minimum wage increase shortly after it was implemented in April 2020 and that a legal complaint relating to the requirement to pay the increase was still progressing through the courts in Karnataka.
Last year in September, the Karnataka high court ruled that the Labour Ministry’s proclamation was illegal and that the minimum wage, including all arrears, must be paid to workers regardless of any other court proceedings.
According to the WRC, apparel suppliers make up the only industrial sector across Karnataka refusing to comply with this court order.
Brands and retailers sourcing from Bengaluru, like Nike, Puma, Gap, Tesco, C&A, M&S and H&M, said that they were committed to paying the legal minimum wage and expected their suppliers to comply with the high court order.
“We expect our suppliers to comply with the VDA allowance and arrears. We have established a timeline by which we expect full compliance,” Gap said in a statement.
C&A said that it had demanded its suppliers comply with the court order and it was “confident” that they would do so. It was expecting written confirmation from its suppliers.
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