Apparel Export Promotion Council (AEPC), has expressed concerns over the two-fold increase in minimum wages from current Rs. 9,000 to Rs. 18,000 per month in the garment industry and urged the centre to clear the confusion over minimum wages after the Wage Code Bill was passed by the Cabinet last month.

Government’s clarification on the issue would be helpful in restoring the confidence of foreign buyers as it would also adversely impact the booking of export orders. The slowdown in the global economy has already made the situation tougher for the apparel industry and any new burden on it would impact negatively, AEPC added.

AEPC chairman, Ashok G Rajani, in a letter to the Textile Ministry, mentioned that women consist 70 per cent of the total workforce in the apparel industry. Therefore, fixing of minimum wages at Rs. 18,000 per month will negatively hit the garment industry and impact employment as well.

In case, this new rule is implemented, Odisha will witness the maximum hike of 246.15 per cent from the current minimum wage of Rs. 5,200. The new wage rule will be a win-win situation for the people employed in the apparel industry.

–  Apparel and Textile News, Apparel Talk, Indian Apparel