Are Airport Workers Covered by Minimum Wage Laws? Understanding Industry Standards

Is the aviation/airlines industry incorporated in minimum wages? If not, then which industry is closest and applicable for colleagues working at the airport.

Understanding Aviation and Ancillary Services

Airport operations are not considered aviation jobs; they are classified as ancillary services. Aviation refers to the staff and crew members working as flight personnel, while ground staff engaged in ticketing are considered office staff. The aviation sector pays service charges to the airport terminal for using their buildings and runways, including parking fees for planes at any airport. Even baggage handling, aircraft cleaning, and food provision are covered under contractual agreements.

Employees at airports or in aircraft maintenance are mostly on a contract basis, and their wages or facilities depend on the contractor, not directly on the aviation industry.

Kindly clarify whether it is on a contract or permanent basis.

If it is contractual, then as per CLC - construction of runways part is considered, and the wages will be provided all over India except Kerala, where the state wage is higher than central.

If it is with airlines, every airline maintains its own CTC, which varies from 9000-14000, and perks will be provided.

In aviation, the State Government is the appropriate authority under the Minimum Wages Act for airlines as well as for contractors of airlines who are mostly engaged in ground handling work. In Maharashtra, the state government has not established any minimum wage requirements for the aviation industry.

Recently, the Central Government added airport loading and unloading to the Central Government's minimum wages for the scheduled employment of loading and unloading. This addition may help determine the wages for airport ground handling staff. However, the Central Government is not the appropriate authority to set minimum wages for airlines or airline contractors. This is in accordance with the definition of the appropriate government under the Minimum Wages Act.

Dear Ssuhr, If the Appropriate Government for Aviation is not the Central Government to set minimum wages for the airline or airline contractors, as claimed by you according to the definition of the appropriate government under the MW Act, then who should the Contractor or Principal Employer approach for obtaining a Registration Certificate or a Contract Labour License? Should they contact the State Government or the Central Government? Kindly provide your response for the academic interest of the Cite HR community. Regards

Appropriate Government for the Aviation Industry

The appropriate government for the aviation industry under the Minimum Wages Act is the State Government. However, for the Contract Labour Act, Industrial Disputes Act, Payment of Bonus Act, and Payment of Wages (Air Transport Service) Rules, it is the Central Government. Therefore, the license/registration under the Contract Labour Act has to be obtained from the Central Government, i.e., the Assistant Labour Commissioner (Central) or Regional Labour Commissioner (Central) of the area having jurisdiction over the concerned airport.

Definition of Appropriate Government

The definition of the appropriate government is different under the Minimum Wages Act and the Industrial Disputes Act. Under the Minimum Wages Act, it is only limited to establishments by or under the authority of the central government, mines and railways, and corporations established under a Central Act. What is meant by or under the authority of the Central Government is explained in the Supreme Court judgment of the Steel Authority of India, where it was decided that although the Steel Authority of India is a public sector company under the Central Government, the central government is not the appropriate government for the Steel Authority of India under the Minimum Wages Act as it is an independent entity registered under the Companies Act, and its board of directors can take appropriate decisions for the company.

Common Misunderstanding

It is a common misunderstanding that when we take a license from the Central Government, the minimum wages fixed by the central government automatically become applicable. For any queries on this, feel free to contact me at [Phone Number Removed For Privacy-Reasons]. Thanks for your interest in the subject.

Yours sincerely,
Avinash Deshmukh.