If the slowdown persists it could have a political fallout
The divergence can only be bridged by getting underemployed workers out of stagnant agriculture and into the higher productivity formal sector
The IBA could meet the unions on June 12 to restart wage negotiations. Bank unions are demand a 15% percent as opposed to the meagre 2% offered to them.
Analysts feel that as compared to IT peers, Tech Mahindra stands at a higher risk of losing revenue if higher minimum wage for H1-B is fixed.
Demonetisation will take an "awful toll" on the underprivileged, especially wage labourers, and its impact might be worse and last longer than expected, noted development economist Jean Dreze has said.
The government had in July announced that it will pay its employees arrears arising out of implementation of the 7th Pay Commission award at one go in August salary.
Finance Minister Arun Jaitley, who heads an informal group of ministers constituted to address labour issues, said the minimum wages for unskilled non-agricultural workers will be hiked to Rs 350 per day from the current Rs 246.
Though 7th pay hike is lower than in 6th Pay Commission and the arrear payouts are likely to be lower, analysts still expect a consumption boost. Citi economists expect consumption growth pick up to 8.4 percent in FY17 from 7.6 percent in FY16 (marginal downside risks from potential delays in implementation of allowances hike).
Kamal Baheti, CFO of McLeod Russel expects margin to expand to 13-15 percent in FY17 from 8.5 percent last year on lower wage hikes and firming up of tea prices.
Goldman Sachs says that the Rs 3230 crore additional sales from price hike is lower than what will be needed to offset effect of five yearly wage negotiations due in FY17.
Winding up a debate on the Payment of Bonus (Amendment) Bill, 2015 in the Lok Sabha, Labour Minister Bandaru Dattatreya also said that following the recommendations of the second national labour commission, 44 central labour laws would be converged into four codes.
One of the main economic factors for Fed officials when it comes to assessing the right time to start hiking rates is wage growth, tied with the consumer spending that is supposed to follow. There was bad news on both fronts in economic data released Friday morning.
The unemployment rate inched up to 4.9 percent at all India level last fiscal, from 4.7 percent in 2012-13. On the positive side, the unemployment rate dropped in urban areas to 5.5 percent in 2013-14, from 5.7 percent in the previous fiscal.
Eighty-four percent of finance professionals in Asia Pacific would recommend their company to a female friend, compared with 82 percent in the US, 80 percent in Europe and 66 percent in the Middle East, according to a global survey.
The government had announced maintaining NREGA wages at Rs 100 in real terms and Pronab Sen, Head of the Statistical Commission, was required to suggest an index that will be followed to determine the increment in wages.
Employees in mainland China look set to experience some of the highest wage rises in the region, both before and after inflation is factored in, the report said.
CNBC-TV18‘s Sunanda Jayaseelan reports that the agreement which was to be signed by April 15 for the ongoing wage negotiations at M&M's Nashik plant, is no closer to being signed due to no agreement on increase in production capacity and stalled wage hike.
Software major Tata Consultancy Services (TCS) today said it will give wage hikes averaging about seven per cent this year to its employees in India, along with 100 per cent variable pay.
Hero Motocorp's labour unrest has given the company many sleepless nights. The management and workers are in talks what have been going on for the past nine hours, reports CNBC-TV18's Ronojoy Banerjee.
If slowing sales weren't enough of a speedbraker, auto majors are now dealing with yet another roadblock- escalating labour unrest. First Maruti, followed by Hero Moto Corp and now, Mahindra and Mahindra.
Even as its senior executives are reported to be in Abu Dhabi to further negotiate with Etihad on the proposed stake sale to the Gulf carrier, Jet Airways engineers are on a "go-slow" mode following the failure of talks over wage hike and arrears, sources said.
Jet Airways, which recently faced labour unrest from a section of its technicians on wage issues, today said it was in discussion with the employees for wage revision.
Jet Airways facing some headwinds on the labour front, has given a wage hike of up to Rs 18,000 to its around 7,500 ground staff, sources said today.
Maruti Suzuki, India's biggest carmaker, will see its margins impacted by 15-30 basis points over the next two years as a result of the new wage settlement with its workers, its CFO Ajay Seth said on Tuesday.
Carmaker Hyundai's India unit has finalised a new wage agreement with its workers' union, the company said on Thursday, agreeing to increase wages by between 11,000 rupees and 13,000 rupees over three years.