"Factory owners threaten to quit garment hub", 25 October 2021

Factory owners are threatening to relocate away from Pakistan's textile and garment manufacturing hub of Sindh province over an increase of more than 40 per cent in the minimum wage.

The Sindh provincial government announced proposals to increase the minimum wage for unskilled workers from 17,500 rupees (US$100) to 25,000 rupees (US$143) three months ago.

The Karachi Chamber of Commerce and Industry (KCCI) and the Sindh Industrial Trading Estate (SITE) Association challenged the move at Sindh High Court which last week referred the increase back to the Sindh Minimum Wages Board (SMWB).

However, the court ordered factory owners to pay the increased minimum wage - backdated to July 1st - in the meantime. Employers have vowed to take the case to the Supreme Court of Pakistan and to leave the province if all else fails.

Ismail Suttar, president of the Employers’ Federation of Pakistan (EFP), told journalists that they had been left with no other option.

“The increase in wages will not just remain limited to the unskilled workers. We will have to raise the wages of skilled employees as well if the decision is implemented. It is not humanly possible for us to do that,” he said.

“This will destroy our businesses and make industrialists relocate from the province since it will increase the cost of doing business here. I am thinking of moving my own industry to Balochistan since it will be a one-time cost.”

However, the provincial government is standing behind its minimum wage proposals which it says are desperately needed to help vulnerable people make ends meet amidst soaring inflation.

“An unprecedented tsunami of price hikes in the country has deprived poor people of simple bread and butter,” said Sindh Chief Minister Murad Ali Shah.

He said the minimum wage could even be increased further to 30,000 rupees (US$172) and extended to Other low paid employees, as well as factory workers.

National Trade Union Federation (NTUF) deputy general secretary Nasir Mansoor said many factories had not even been paying the previous minimum wage...