Madras High Court has granted an interim stay on the Tamil Nadu government’s order regarding minimum wages for hosiery workers, following a legal challenge by trade unions.
The government order (G.O.), issued in February 2025, aimed to revise wage structures for workers in Tiruppur’s garment industry.
However, concerns over wage reductions prompted unions to seek judicial intervention.
Background of the Wage Revision
The Hosiery Minimum Wages Act, 1960, was last revised in 2016, with an additional clause for domestic knitwear workers introduced in 2018.
In January 2024, the Tamil Nadu government proposed a draft order to fix minimum wages for garment unit workers based on this Act.
The final order, released in February 2025, included a ₹1,700 monthly reduction in dearness allowance (DA), sparking protests among workers.
Trade Union Opposition and Legal Challenge
Trade unions, including the CITU Banian Worker Union, argued that the new wage structure would negatively impact workers, particularly those in domestic and export units.
They contended that wages were traditionally determined through a tripartite agreement between managements, trade unions, and government representatives.
The unions challenged the calculation methodology used in the revised order, leading to the High Court’s intervention.
Madras High Court’s Decision and Implications
The Madras High Court’s interim stay halts the implementation of the wage revision, providing relief to thousands of hosiery workers in Tiruppur.
The ruling ensures that workers will continue receiving their previous wages until the court delivers a final verdict.
Union leaders emphasized the need for continued legal follow-up to secure fair wages for workers.
G. Sampath, General Secretary of the CITU Banian Worker Union, stated that the ₹1,700 reduction would significantly affect workers’ livelihoods, reinforcing the necessity of judicial oversight.
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