KARACHI: The Karachi Chamber of Commerce and Industry (KCCI) and other trade organizations, Wednesday, rebuffed 43 percent increase in minimum wages by Sindh government terming it an unconstitutional move with negative consequences.
The KCCI in a statement issued here said that industries of Sindh particularly of Karachi were highly aggrieved and perturbed by Sindh government's move to increase minimum wage from Rs 17,500 to Rs 25,000 without following due process of law and in contrary to the provisions of Sindh Minimum Wage Act 2015 and ILO's minimum wages fixation convention 1970.
It would make industries of Sindh uncompetitive and unviable to operate, not locally but also globally, it stated, adding that minimum wage in the Federal and Punjab province was Rs 20,000 while in KPK and Balochistan it was Rs 21,000 while the minimum wages fixed by province of Sindh were not equitable to the employers.
Minimum wage was already lower in our competing countries and enhanced minimum wage would affect cost of manufacturing of export industries making them uncompetitive in the international market and it will also defeat target of creating import substitute industry in Pakistan, it further explained.
Industries of Karachi had 54% share in national exports, 67% revenue generated mainly from Karachi for the national exchequer and 95% revenue for the Sindh Revenue Board, it said adding that the gravity of situation would lead to massive layoffs, unemployment and law and order situation.
The KCCI claimed that Federation Of Pakistan Chambers Of Commerce & Industry, Pakistan Hosiery Manufacturers & Exporters Association, SITE Association Of Trade & Industry, Landhi Association Of Trade & Industry, North Karachi Association of Trade & Industry, Pakistan Readymade Garments Manufacturers & Exporters Association, All Pakistan Textile Processing Mills Association, Pakistan Cloth Merchants Association, Pakistan Knitwear & Sweaters Exporters Association, Pakistan Cotton Fashion Apparel Manufacturers & Exporters Association, Pakistan Bedwear Exporters Association and other FPCCI affiliated Chambers and Associations of Sindh Province shared the same concerns over the issue.
The trade organizations termed the Sindh Government's Notification No.L-II-13-3/2016 dated 9th July, 2021 as unjustified, unreasonable and executed in non-compliance of the due process of law while sidelining the jurisdiction of minimum wage board and without consulting stakeholders- the employer representatives.