Now, industries seek deferment of variable dearness allowance

Labour Department to hold tripartite meeting today to discuss the issue

After notifying increase in working hours per shift amidst opposition from the workers, the State government is now holding consultations to postpone the payment of variable dearness allowance (VDA) to workers in the State by four months. Deferment of implementation of new minimum wages could also figure in the consultation.

Deferment of both VDA and implementation of minimum wages was on the wish list sent by the Department of Commerce and Industries (MSME) to the State government recently. On Tuesday, the Labour Department has convened a tripartite meeting to discuss the issue with industry and labour representatives.

Variable DA is an allowance given to workers to account for inflationary trends for the price rise, and is notified by the State government once in a year after capturing the price rise data over the previous year. Industries are seeking deferment of VDA that has been notified for 2019 during 2020.

The consultation on VDA comes close on the heels of State government notifying 10 hours working shift daily from the current 8 hours and weekly maximum of 60 hours from the current 48 hours, which has come under criticism from trade unions that have termed it as “unilateral, immoral and illegal.”

Report sought

A meeting notice sent out by Labour Commissioner K.G. Shantharam said that in the light of requests coming from industries seeking deferment of payment of VDA, the Principal Secretary (MSME and Mines) has requested the Labour Department to hold consultations and submit a report. The meeting notice said that the request from industries has come in the light of shut down of factories during the lockdown period that had increased financial strain on industries.

The industries have sought deferment of VDA and implementation of the new minimum wages under the Minimum Wages Act.

AITUC general secretary, Bengaluru, M.D. Harigovind said that the industries that have welcomed the ₹20 lakh crore stimulus package of the Centre should not seek deferment of VDA or the implementation of minimum wages act.

He said that the employers have stalled implementation of minimum wages from December 2017 only to be directed by a Division Bench of the Karnataka High Court to implement the new wages.

“The Karnataka government has stooped to the level of contemplating wage theft from workforce — the most vulnerable section of the society when in most countries across the globe, governments have supported the working class by offering income guarantee and income top up schemes, mandating job security, waived rents and utility bills of its citizens,” Mr. Harigovind said.