D.K. Shivakumar
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The proposed revision of minimum wages across scheduled employment in Karnataka, the draft of which was notified recently, would not move forward without the consent of the Chief Minister and himself, said Deputy Chief Minister D.K. Shivakumar on Saturday.
Mr. Shivakumar said he had advised Labour Minister Santosh Lad not to take any immediate decision on the minimum wage hike proposal, speaking at the inaugural ceremony of the Karnataka Small-Scale Industries Association’s (KASSIA’s) Centre of Excellence and Innovation and International Exhibition Centre at Dobbespet, on the city outskirts.
Meet all Ministers
He also urged the office-bearers of all trade bodies in the State to take a delegation to meet Cabinet Ministers, explain the issues and garner their support, and hold discussions with stakeholders.
The proposed hike in minimum wages, as per the draft notification, is around 70% of the existing wages, including variable dearness wages, and it comes at a time when price rise has affected lakhs of families. As per the draft, the salary will range from ₹19,319.36 for unskilled labourers in zone 3 to a maximum of ₹34,225.42 for highly skilled employees in thermal stations. Across industries in zone 1, the proposed monthly minimum wage for a highly skilled worker is ₹31,114.02.
This has been welcomed by labour unions, while industrialists and trade bodies have been protesting this move, arguing it will lead to skyrocketing of labour costs.
Speaking on the proposal, Mr. Shivakumar said, “We have lakhs of labourers working in several industries here and do not want any flight of capital. Many of these employees are on temporary jobs. The government cannot absorb them all.”
He said the State would stop any effort to shift industries from Karnataka to other States, particularly Andhra Pradesh or Tamil Nadu. Small-scale industries, in particular, have expressed concern over the proposed hike and contended that it would make the labour of the State costliest, which would prompt industries to relocate to States like Tamil Nadu, Telangana, or Andhra Pradesh, where labour is cheaper.
Dig at banks
Taking a dig at the banking sector, Mr. Shivakumar said the Union government had announced a non-collateral loan facility for MSMEs, but entrepreneurs were not getting the required support as banks were still insisting on collateral, although some businesses were able to get loans based on their performance.
“Despite the non-collateral schemes, banks are unwilling, and it only increases the struggles of the MSMEs,” he noted.
Mr. Shivakumar reiterated that a separate Ministry would be set up for small-scale industries as per the directions of the Chief Minister, which would work as a single window to ensure quick clearance of projects and support the sector.
Centre of excellence
KASSIA, which is celebrating its 75th year, has invested over ₹32 crore to develop the Centre of Excellence and Innovation and Exhibition Centre, on 4.5 acres of land at the industrial cluster at Dobbespet. The new facility comprises a centre for enterprise development, an international exhibition centre, a common tool room, an international marketing centre, an R&D testing centre, and a facility for green initiatives.
Published – June 28, 2025 09:17 pm IST
