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25 Jul 2016

India: Wage hike after 12 years, but Tamil Nadu garment unit owners protest

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The Madras High Court has ordered a pay rise of up to 30% for garment workers in Tamil Nadu, the first minimum wage hike in more than 12 years. Under the ruling, workers would see their pay rise from a monthly average of Rs 4,500 to Rs 6,500 - which campaigners say is comparable to wages for textile jobs in most other states. But lawyers for 500 clothing manufacturers and exporters, who supply many international brands, said the new wages would be practically impossible to introduce given the tough global market conditions. The court order was meant to provide relief to thousands of garment workers in the state, especially those who work in the 2,500 units in Tirupur and draw a monthly salary of Rs 4,500-7,000. While garment unit owners maintain that the industry is struggling, trade union leaders have long argued that several units where trade unions exist already pay a minimum wage of Rs 10,000 or above, and still manage to make a profit.