Fixing of minimum wage challenged: SHC directs minimum wage board to submit govt directive

KARACHI: The Sindh High Court on Tuesday directed secretary industries and minimum wages board to appear before the court along with minutes of the meetings regarding fixation of minimum monthly wage of Rs25,000 for unskilled workers by the Sindh government. The direction came on a petition of employers federation and others that challenged the fixation of minimum monthly wage of Rs25,000 for unskilled workers by the Sindh government.

Filing comments on the petition, secretary Minimum Wages Board submitted that the Labour and Human Resource Department initiated the summary for chief minister Sindh on June 1 for approval of fixation of minimum wages of Rs19,000 per month for unskilled and adult workers employed in all industrial and commercial establishments in the province. He submitted that CM Sindh had passed an order that the cabinet had approved minimum wages of Rs25,000 per month and accordingly the labour department issued a notification on July 9. He submitted that the Supreme Court has settled the principle in various judgments that the court cannot interfere in the government policies unless those violated any fundamental rights or were inconsistent with any law. The court was requested to dismiss the petition in the interest of justice.

The SHC’s division bench, headed by Justice Salahuddin Panhwar, directed that all petitions pertaining to fixation of minimum wages shall be fixed along with the petition. The court directed the secretary industries and secretary minimum wages board to appear before the court along with minutes of the meetings on September 2. The petitioners, Employers Federation of Pakistan and others, submitted that in order to score political mileage, the Sindh government had announced increasing the minimum wage of workers in the budget season from Rs17,500 to Rs25,000 per month without even initiating statuatory requirements as contained in the Sindh Minimum Wages Act. They submitted that representatives of the employers had earlier objected to the recommendation of the minimum wages board on various legal and factual grounds but they were not invited to the board meeting.

They said that the employers, however, after consultation with its members informed the government that they were prepared to increase minimum wage from Rs17,500 to Rs19,000 per month. But the government instead issued the impugned notification without the secretary labour sending a reference to the board proposing Rs25,000 per month as the minimum wage.

They submitted that 43% increase in minimum wage was irrational and without any legal basis, which will have consequential effect in terms of variable cost on account of allowances, leave bonus and gratuity, etc.

They said that besides, the increase will also invoke proportionate increase in the wages of other categories of workers, which will affect the whole compensation structure of the petitioners and have an extremely adverse impact even amounting to closure of business. They submitted that minimum wage in other provinces has been fixed at Rs20,000 per month from July 1 and fixation of Rs25,000 in Sindh will place the petitioners in the most uncompetitive and disadvantageous position.