Under pressure from international apparel brands that have outsourced their production to companies in Karnataka, garment manufacturers have agreed to pay the Variable Dearness Allowance (VDA) announced for the year 2020-2021 that is set to benefit over four lakh garment workers, who mostly come from economically weaker sections in rural areas.
Though only a couple of manufacturers have been paying the VDA of 2020-2021 for several months now along with arrears without waiting for the outcome of the ongoing case in the High Court, the Clothing Manufacturers Association of India (CMAI) an umbrella organisation, had so far desisted.
Multiple campaigns
However, campaign organised by trade unions here and in the West on the issue seems to have paid off, with some of the largest employers manufacturing several global brands in Karnataka agreeing to pay the VDA after coming under pressure. The Garment and Textile Workers Union (GATWU) had written to the government, manufacturers as well as the brands, highlighting the plight of workers.
In the last few days, the manufacturers have written to the brands, reassuring that VDA payment will be done. The CMAI on Wednesday wrote to the brands with a roadmap for payment of arrears and asked its members to work out a timeline for payments.
“It is decided to proceed ahead with the payment of the VDA of ₹417.60 for 2020-2021 primarily with the object of ensuring workers’ well being, given the indefiniteness involved,” the CMAI said in its letter. However, it has told brands that the arrears for the months between April 2020 and March 2021 will be paid after April 2022 if there is no final direction from the court.
For the garment workers, who are paid the statutory minimum wages, VDA is an important component of the salary that gets added annually. The VDA is calculated by the State Government based on various parameters, including inflation. The GATWU has calculated that each garment worker has to receive Rs. 9,186.32 towards VDA arrears calculated for 22 months, starting from April 2020.
While all the scheduled industries barring garment sector that are covered by Minimum Wages Act have been paying monthly VDA of ₹417.60 announced by the State Government for 2020-2021, the garment industry had taken cover under a government order deferring the VDA for 2020-2021. The Government as a relief to the pandemic-hit industry, had announced deferment of VDA payment for a period of one year.
Challenged in Karnataka High Court
However, the deferment order after being challenged in the Karnataka High Court by the All India Trade Union Congress (AITUC) was stayed in September 2020. Though all other scheduled industries implemented the VDA following the stay, the CMAI has gone on an appeal. Though the garment sector implemented the monthly VDA of ₹428.40 announced for the year 2021-2022, it had resisted payment of VDA for 2020-2021.
The next VDA for 2022-2023 payable from April for over 80 scheduled industries coming under the Minimum Wages Act will be announced shortly by the Government.
"Constant pressure brought on the companies through their international brands has borne results. Despite seeking remedial measure to the garment workers, the State Government did not respond. Instead it had asked individuals to approach Labour courts," said Jayaram of Garment and Textile Workers Union (GATWU), which spearheaded the campaign. He said that two of the largest manufacturers in the State have already agreed to pay starting from January salary payable in February, and that most industries will follow suit. "This will also benefit those who were on payrolls after April 2020 but may have quit now."
