Queries
16th November, 2016





Dear Sir / Madam,



Time Extended upto 30th November, 2016 to move High Court of Karnataka for STAY ORDER on MINIMUM WAGE NOTIFICATION COVERING 20 Minimum Wage Notifications



Dr. Gubbi & Associates is hereby informing you that the Labour Department, GOK has revised the Minimum Wages for 20 scheduled sectors by way of Notifications all dated 16/09/2016.

20 Sectors covered under revision are:

1. Aerated Water Manufacturing Industry, 2. Clubs, 3. Electronic Industry, 4. Electroplating Industry, 5. Film Industry, 6. Food Processing, Packing of Food Products ( Including Coffee, Tea & Spices) Industry, 7. Glass & Glass Ware Industry( With or Without Machine Shafts), 8. Hotel Industry, 9. Laundry Industry, 10. Manufacturing of Liquor( Breweries), Distilleries, Bottling of Liquor, 11. Manufacture of Ayrveda & Allopathy Medicine, 12. Mini Cement Plant Industry, 13. Plastic, Poly Plastic, Rubber & PVC Pipes Manufacturing Industry, 14. Private Finance Corporation & Chit Funds, 15. Procurement, Processing & Distribution of Milk, 16. Public Motor Transport, 17. Sales Representatives in Medicine Profession, Consumer Items & Services, 18. Spun Pipes, Concrete Pipes, Sanitary Fittings, PCCRCS Poles && RCC Pipes Manufacturing Industry, 19. Steel Almirahs, Tables, Chairs & Other Steel Furniture Industry AND 20. Wood Work Including Timber Depots

Considering the steep hike and its effect made by the revision, Dr. Gubbi & Associates, has decided to move a Writ Petition before the High Court of Karnataka to attempt to bring a STAY ORDER on this revision.



Accordingly, it is brought to the attention of all that such of the establishments who will be affected by this wage revision and who are interested to be a party to the Writ Petition may send their consent and details to at the earliest, but not later than 30th November 2016. Vakalats and Affidavits can be collected from us. Further these needs to be duly signed and reached within 30th November, 2016.

Should you require any clarifications you may call on 080-22262355/56 or mobile 8105671578 and speak to Dr Gubbi.



IMPORTANT: Please note that the STAY ORDER, if granted, may become applicable only to the establishments/industries who become a party to the Writ Petition and not to others as it may not be an ‘Order in Rem’( applicable universally). It depends.

Address for communication: Dr. Gubbi, Counselor & Advocate, FKCCI, Federation House, K G Road, Bangalore-560009



With warm regards,



Dr. Gubbi

Counselor & Advocate

Chairman-Indian National Bar Association, Karnataka Region

Legal Advisor to FKCCI

Board of Lawyers Club of India

Phone: 080-22262355/56; Mob: 8105671578

21st November 2016 From India, Bangalore

Attached Files
File Type: pdf Scan-Circular on MW-Time till 30-11-2016.pdf (113.7 KB, 269 views)

PARTICIPATING IN DISCUSSION:
Dinesh Divekar
Business Mentor, Consultant And Trainer
Dr Gubbi & Associates
Counselor & Advocate, Head Fkcci Legal
Srinath Sai Ram
Hr Manager
Kenneth12
Working As Admin.asst

Dear Dr Gubbi,

You wanted to bring Stay Order on Minimum Wage Notification Covering 20 Minimum Wage Notifications. Predominantly, the list belongs to the manufacturing sector. General knowledge of this sector tells us that employee cost against total cost varies from 6-15%. Therefore, if the minimum wages are raised, then what would be the impact on the employee cost? Have you done this study? On what basis do you say that this would be a "steep" increase?

My observations on Manufacturing Sector: - My observations show that there are two important costs in the manufacturing companies. One is inventory cost of the raw materials and another is inventory cost of the finished goods. Managing these two costs depends on how the company manages its supply chain. Mismanagement of the supply chain leads to huge blockage of the working capital. To manage the supply chain, it requires usage of mathematical and statistical tools or techniques of the Operations Research. Instead of taking these intellectual challenges, companies resort to chinchy tactics of not paying even minimum wages or raising objections when minimum wages are raised. Competitiveness can only be increased if principles of management are implemented and not by bearing grudge against the workers who are paid barest minimum.

In view of this, my request to you is to conduct a survey along side. Whichever organisation approaches you to include them in the stay order, ask them whether they have calculated these two cost scientifically and if not what is holding them back? Stay order is fine but scientific management cannot be pushed under the carpet.

Inventory Turnover Ratio is one single ratio that speaks volumes. This ratio shows the the coordination amongst various departments like Purchase, production and sales. It also shows the company's relationship their vendors, empowerment of the procurement personnel and so on. Notwithstanding all this, how many companies calculate this ratio scientifically? How many owners understand the significance of increase of this ratio even by a unit? Please conduct survey on this count also.

Thanks,

Dinesh Divekar
21st November 2016 From India, Bangalore
Dear Dr Gubbi,
This is my supplementary post.
While ignoring the worth of pound, Indian entrepreneurs' penchant for the fight for the pennies is well known. It is unfortunate to note that a legal firm of your stature is lending weight to fight for the pennies.
In contrast, look at the American entrepreneurs. They could build their industrial empires because they understood where the business lies. Today American companies could deeply penetrate in average individual's life the world over. Can you imagine life without MS Office, Google or Facebook? Certainly not! By developing such a product or service, they have forced the world to depend on them! This is because they did not restrict their worldview for the fight for the minimum but fight for the maximum.
When Indian entrepreneurs will learn to strive for maximum and when Indian lawyers will stop aiming to corner a penny by taking up the cause for the fight for the pennies?
I see remote chances!
Thanks,
Dinesh Divekar
23rd November 2016 From India, Bangalore
Dear Doctor Saheb,
Can you Please update on the Status of "Stay Order" on Minimum Wages Notification covering 20 Minimum Wages Notification.The Government of Karnataka is not referring to "Stay Order" in respect of 20 Industries Minimum Wages Notified for the Period 01/04/2017 to 31/03/2018
13th May 2017 From India, New Delhi
Dear All, Any updates on Stay Order with relates to Karnataka Minimum Wages-2017-2018
16th May 2017 From India, Bangalore
As per the information furnished by Dr Gubbi Sir,
Karnataka High Court has granted Interim Stay to 1. Hospitals & Nursing Homes & 2 Offset Printers Sectors Minimum Wages Notification. As on date there is no Stay on Minimum Wages Notification with regard to other Sectors
17th May 2017 From India, New Delhi
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