Working solutions

Reasonable minimum wages address one labour market issue. Too few jobs, is the bigger problem

UP govt moved swiftly – and rightly – to raise minimum wages in NCR zones Noida and Ghaziabad, after protests by factory workers in Noida.

The protest should have been anticipated, though, since the trigger was Haryana raising its minimum wages from April 1.

That meant higher wages in NCR’s Gurgaon and Faridabad. But setting minimum wages is a delicate dance.

For instance, the new rate for skilled workers in Noida and Ghaziabad – a little less than ₹16,900 pm – is still lower than Delhi’s, about ₹22,400 pm for skilled workers.

Haryana’s new skilled-worker rate is ₹18,500; for highly skilled workers, it’s ₹19,425.

Yes, there is a solid argument for NCR neighbourhoods to have uniform wage policy, accounting for industry diversity and market needs.

But when four different govts set minimum wages in what is essentially one economic area, it’s a recipe for trouble.

NCR is India’s largest labour market. But even after decades, it doesn’t match up to the South’s handling of manufacturing investment.

NCR govts could take a leaf out of TN’s ecosystem for investors. Companies set up shop in land already allotted, and infra and worker housing complexes, built.

In employer-worker disputes, govt is a mediator , not a party. State protects workers’ rights, but isn’t indifferent to capital’s needs.

But, there’s a larger problem still. India is not creating enough good jobs, aka, regular, wage-paying, factory jobs in light manufacturing. So, too many people are chasing too few jobs. Some pundits say this bus has left, and India shouldn’t chase after it. Others disagree. The truth may lie somewhere in between.

Get into more basic manufacturing, but train millions of young Indians for certain services jobs, too. Not easy. But better, certainly, than dealing with angry workers.

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