Steve Lamar, President and CEO, AAFA has urged garment manufacturers in Karnataka to immediately clear the minimum-wage increase pending since April 2020. In a letter to the Clothing Manufacturers Association of India (CMAI) Lamar said, pending dues need be paid by March 2022 nearly two years after the government raised the so-called variable dearness allowance, which is based on the rate of inflation, to 417 Indian rupees ($5.56) per month. Over 400,000 workers are waiting to receive wages surpassing $55 million, as per estimates by the Workers’ Rights Consortium.
Owners of more than a thousand factories argue, however, they’re not liable for the hike, since the labor ministry issued a proclamation suspending the minimum-wage increase after COVID-19 started ravaging the country. They’re also appealing a decision by the High Court that the postponement was illegal and that manufacturers are required to pay the correct wage, plus all compensation previously owed. The CMAI did not immediately respond to a request for comment.
The Karnataka Garment Workers Union (KOOGU) has appealed to brands sourcing from the region to join workers and factories in collective bargaining talks with Shahi Group, India’s largest garment manufacturer, and others.
