The Hindu Business Line : Cabinet clears hike in wages Act cap

THE Cabinet on Wednesday approved a proposal to amend the Payment of Wages Act giving the Government the power to periodically increase the wage ceiling on the basis of the Consumer Price Index (CPI) through gazette notifications instead of amending the Act in Parliament.

The move follows recommendations made by the department-related Standing Committee on Labour and Welfare regarding the Payment of Wages (Amendment) Bill, 2002. The Cabinet has decided to move necessary amendments to the Bill in the Rajya Sabha, an official spokesman said after the meeting.

At present, only those workers whose wages are less than Rs 1,600 per month and are working in a factory or railway administration, come under the Payment of Wages Act, 1936. This will be raised to Rs 6,500 in line with the ceilings applicable to the Employees Provident Funds (EPF).

The Statement of Object and Reason appended to the amendment Bill states that in today's world of high prices and salaries, imposing a ceiling on the wages is highly unjust and as such all workers should be entitled to the benefits of Payment of Wages Act irrespective of their wages.

This Bill was introduced in Rajya Sabha in May 2002 and was referred to the Standing Committee on Labour and Welfare. The Cabinet has now finally agreed to the committee's recommendations.

The Cabinet also approved a proposal for incorporating a joint venture company between Antrix Corporation, a public sector enterprise under the Department of Space, and Binariang Satellite Systems (BSS) of Malaysia, to enable extension of Antrix's marketing and business operations in to the Asia and Pacific region in the area of satellite communications.

The joint venture would initially have a paid-up capital of Rs 90 lakh and an authorised capital of Rs 1 crore, to be shared equally between Antrix and BSS.

This would also give Antrix access to modern technology by acting as technical consultant to MEASAT-III satellite, which is to be procured by BSS from Boeing Inc.

The new company is expected to make profit from the first year of its operations as it will also market the transponder capacity in the region against a fee and establish its own reserves.

Subsequently, subject to market viability, it may consider launching its own satellites, an official release said.

The Cabinet also approved reintroduction of the Contempt of Courts (Amendment) Bill 2003 in the ensuing session of Parliament. This amendment will enable the courts to permit a defence of justification by truth on satisfaction as to the bona fides of the plea and it being in public interest.

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