Govt raises minimum wage, but Left trade unions refuse to call of strike

Government will also give bonus at revised rates to central government employees for 2 years, said FM Arun Jaitley.

New Delhi: In an attempt to prevent a huge strike by trade unions on Friday, the Centre on Tuesday raised the minimum wage for non-agricultural workers from Rs 246 per day to Rs 350 per day. However, the Left unions refused to call off the strike, said reports.

The government will also give bonus at revised rates to central government employees for two years, said Finance Minister Arun Jaitley speaking to the media.

According to a report, Jaitley added that the Centre has decided to write to all states directing that their policies should be compliant with the contract workers law.

However, he said there is no question of the government reviewing its new relaxed rules for foreign investment.

On Monday, Prime Minister Narendra Modi had called an emergency meet of Jaitley, Labour Minister Bandaru Dattatreya and Power Minister Piyush Goyal to discuss offers which could be made to unions to persuade them to cancel Friday's shutdown, which is meant to close banks, government offices and factories across the country. Public transport could also be affected if the strike occurs.

Since September 2015, the trade unions have been making 12 major demands, including raising the minimum wage. They are also opposed to the government allowing increased foreign investment in sectors like insurance and defence.

The Bharatiya Mazdoor Sangh (BMS), a major union linked to the BJP’s ideological mentor, the Rashtriya Swayamsevak Sangh (RSS) has decided not to participate in the strike, the report said. BMS representatives who spoke to the media said that the government had accepted 8 of their demands.

Last year, it did not participate in a similar shutdown, opting out after a government assurance that it would look into 9 of the 12 demands.

The government has begun to carry out major reforms over the past few months, one of which is to open several sectors to greater FDI.

The BJP government has often been accused of pandering to big businesses during its two-year term. The PM last week told BJP leaders that they must publicise and more effectively communicate pro-poor welfare schemes.