Facing a Steep Wage Hike? Join Our High Court Petition for a Stay Order in Karnataka

Time Extended for High Court Stay Order on Minimum Wage Notification

Dr. Gubbi & Associates is informing you that the Labour Department, Government of Karnataka, has revised the minimum wages for 20 scheduled sectors through notifications dated 16/09/2016.

The 20 sectors covered under this 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 Ayurveda & 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
20. Wood Work Including Timber Depots

Considering the steep hike and its impact, Dr. Gubbi & Associates has decided to file a writ petition before the High Court of Karnataka to seek a stay order on this revision.

Accordingly, establishments affected by this wage revision and interested in joining the writ petition may send their consent and details to [Email Removed For Privacy Reasons] at the earliest, but not later than 30th November 2016. Vakalats and affidavits can be collected from us and must be duly signed and submitted by 30th November 2016.

Should you require any clarifications, you may call 080-22262355/56 or mobile [Phone Number Removed For Privacy Reasons] and speak to Dr. Gubbi.

Important Notice

Please note that the stay order, if granted, may only apply to the establishments/industries that become a party to the writ petition and not to others, as it may not be an 'Order in Rem' (applicable universally).

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

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: [Phone Number Removed For Privacy Reasons]

Dear Dr. Gubbi,

You wanted to bring a stay order on the 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 costs against total costs vary from 6-15%. Therefore, if the minimum wages are raised, what would be the impact on employee costs? Have you conducted this study? On what basis do you say that this would be a "steep" increase?

Observations on the Manufacturing Sector

My observations show that there are two important costs in manufacturing companies. One is the inventory cost of raw materials, and the other is the inventory cost of finished goods. Managing these two costs depends on how the company manages its supply chain. Mismanagement of the supply chain leads to a huge blockage of working capital. To manage the supply chain, it requires the usage of mathematical and statistical tools or techniques of Operations Research. Instead of taking these intellectual challenges, companies resort to 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 a grudge against the workers who are paid the barest minimum.

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

Importance of Inventory Turnover Ratio

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

Thanks,

Dinesh Divekar

Dear Doctor Saheb,

Can you please provide an update on the status of the "Stay Order" on the Minimum Wages Notification covering 20 industries? The Government of Karnataka is not referring to the "Stay Order" in respect of the 20 industries' minimum wages notified for the period 01/04/2017 to 31/03/2018.

Dear All,

Any updates on the Stay Order relating to Karnataka Minimum Wages for 2017-2018?

As per the information furnished by Dr. Gubbi, Karnataka High Court has granted an Interim Stay to 1. Hospitals & Nursing Homes and 2. Offset Printers Sectors Minimum Wages Notification. As of today, there is no stay on the Minimum Wages Notification regarding other sectors.

Dear All,

Is there any stay order on Karnataka Minimum Wages 2018?