Background Study Tirupur - Fair Wear Foundation

Checking 45.50 10% 5% 5%
Label putting 41.01 10% 5% 5%
Hand folding 39.85 10% 5% 5%
Damage spotting 31.87 10% 5% 5%
Assistants to labourers
Fabrication Division
22.81 10% 5% 5%
Knitting machine labourers 74.28 10% 5% 5%
DOMESTIC DIVISION
In respect of units catering to domestic market the above increase is on the existing basic
rates to the various categories of workers.
DEARNESS ALLOWANCE :
Based on 1936 Chennai Consumer Price Index, the Dearness Allowance is fixed at Rs. 790
per month in case of export division and Rs. 785/- in case of domestic division. In addition II
paise for every increase in point beyond 10867 (which is the CPI figure for Chennai in December
1999) is payable during the period 2.6.2003 to 1.6.2006.
Travelling Allowance of Rs.. 4/- per day shall be given to all the employees. Tea DATA
20% increase over existing rate is payable. Minimum Rs. 5/- for half night shift.
Marriage allowance of/ assistance to dependents of works who die in harness will be as per
earlier agreement.
On the basis of this table we can calculate as a regular monthly wage for assistants 1387.06
rupees and for checkers 1977 rupees.
Legal Minimum wages would be 1689.80 and 1819.80 respectively, so without the Tea BATA
the agreed wages seem to be lower than the local minimum wage.
But the Deputy Commissioner of Labour said that there is no claim petition in Hosiery Industry
seeking minimum wages because they already receive more than minimum wages.
4.5.2. Compliance situation
Wages are far below living wages, but then most families have 2 or more wage earners. The
wage is often complementary; there may be more wage earners in a family.
LINK calculates for a family of 2+2 a living wage would be 4.286 in Tirupur, housing is expensive,
they have to buy water, etc. (In Bangalore it is 3.826. according to their calculation).
The study group of the Second National Labour Commission recommends Rs 4.500/- as
minimum wages.
The TEA agreement is not implemented generally. It is not even implemented by all members
of TEA although it should be binding for all members of the employers association.
Most of the workers who work for daily wages complain that they are paid less then the
wages according to the TEA-CBA.
Some factories are paying wages as monthly wages and other factories are paying wages as
daily wages. Workers engaged in printing receive their payment mostly in monthly basis. A
daily rate you find to monthly wage consist of 26 day (factory act), weekly rate by 6. Sundays
are no working days.
A large share of the workers, and certainly of the unregistered workers, work under piece
rate systems. The unions have opposed piece work without success. (Cawthorn 27).
Piece rate system for workers are as follows based on the nature of stitching and related
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