The Punjab government has invited objections and suggestions from 51 industrial and commercial sectors of the province on the increase in minimum wages from Rs 7,000 per month to Rs 9,000 (28.6 percent) with effect from May 1 this year for all categories of workers (skilled and unskilled). The Minimum Wage Board, Punjab, urged private sector industries to submit their recommendations within 30 days -May 5.
The recommendations shall apply to all industrial undertakings, including the textile industry and shall come into force on May 1, 2012, after their approval and notification by the government of the Punjab. The Punjab Chief Minister had announced the increase on the same day the Prime Minister had announced to increase the workers' wages to Rs 8,000 a month. Analysts viewed the move as a political gimmick ahead of the next general elections.
However, various industrial sectors have expressed reservations over the move, saying that acute shortages of electricity and gas had caused a negative impact on industries in the province. According to them, it was becoming unviable for them to sustain the work force even at the current level amid unprecedented load shedding. They said that they did not know how the industries would survive in the wake of such an arrangement of minimum wage for workers.
A large number of daily wage earners have either been laid off or were not being paid salary by industrial sectors because of idle capacities across the province. The Senate was recently informed that nearly 10,000 power looms had been shut down because of power cuts, rendering 30,000 direct and 100,000 indirect workers jobless just in Faisalabad district. According to industrialists, they might be able to cope with a rise of Rs 1,000 or about 16 percent in workers' wages in line with the federal government's decision.