The Chamber of Small Industry Associations (COSIA) has formally submitted a representation to the Maharashtra government, requesting a reconsideration of the recent extraordinary hike in minimum wages for the rubber industry. The appeal follows a request from the All India Rubber Industries Association, which raised concerns about the severe impact on MSMEs in the sector.
Effective from 1st January, 2025, the revised minimum wages impose an increase of Rs. 166 per day for rubber industry workers (instance for Zone 2 – Skilled Worker), significantly higher than other industrial sectors such as engineering, chemicals, pharmaceuticals, and plastics. COSIA has highlighted the disproportionate nature of this wage hike and its potential consequences.
Industry Concerns:
- Increased Financial Burden: MSMEs in the rubber sector are struggling with escalating operational costs due to the wage hike.
- Threat to Employment: Many small and micro-units face the risk of closure, leading to potential job losses.
- Market Competitiveness: The increased cost of production may result in price inflation, reducing the affordability of rubber products.
- Rising Imports: Higher costs may drive businesses to import rubber products from countries like China, undermining the ‘Make in India’ initiative.
COSIA’s Appeal:
- Bringing the wage hike at par with other industries such as engineering, chemicals, and pharmaceuticals.
- Gradual implementation of wage increases to allow businesses time to adapt.
- Government incentives or subsidies for micro and small enterprises to help mitigate financial stress.
- Establishment of a monitoring mechanism to evaluate the long-term impact of the wage hike on businesses and workers.
COSIA has submitted the representation to the Minister of Labour, Maharashtra, Shri Akash Fundkar, seeking urgent intervention. The association remains committed to advocating for a balanced approach that ensures both business sustainability and fair wages for workers.
