Centre decides to retain NREG wage structure

After months of interministerial tussles, the existing wage structure will be retained under the job guarantee law. Both the Left and Rural Development Minister Raghuvansh Prasad Singh had expressed their unhappiness at the Finance Ministry8217;s proposal to change the structure.

After months of interministerial tussles, the existing wage structure will be retained under the job guarantee law. Both the Left and Rural Development Minister Raghuvansh Prasad Singh had expressed their unhappiness at the Finance Ministry8217;s proposal to change the structure.

After an hour-long meeting held at the PM8217;s residence, a beaming Singh said the Centre had decided to leave it to the states to fix the minimum wage for agricultural labour or let status quo prevail.

Finance Minister P Chidambaram, who also attended the meeting along with Singh, Defence Minister Pranab Mukherjee and Planning Commission deputy chairman Montek Singh Ahluwalia, had proposed to peg the wage at a uniform rate of Rs 60 per day for the flagship programme.

8216;8216;There was no difference of opinion. It has been decided that the existing arrangement will continue. This is because the scheme is not fully operational as five states had Assembly polls,8217;8217; Mukherjee said.

Apprehending problems in states where the minimum wage is higher than Rs 60, the CPI has objected to the proposal mooted by Chidambaram and cautioned the government against being party to such an 8216;8216;anti-poor, anti-labour8217;8217; proposal.

CPI general secretary AB Bardhan said any change in the minimum wages act would be construed as an interference in the affairs of the states and would not be tolerated by trade unions. They also felt that the Centre could not afford to get confrontational with the states and, hence, it was wise to let the states decide the minimum wages.

The Rural Development minister felt agricultural wages in the states should not be tinkered with as in states where the farm wages are less than Rs 60, such an action would cause a worker exodus to the job guarantee scheme, leaving a negative impact on agriculture. Besides, if agriculturists are forced to raise wages to retain workers, it would push up the operational cost of farming, he said. 8216;8216;This move could have killed the NREG even before its begun properly,8217;8217; Singh added.

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In over 15 states including Kerala, Tamil Nadu, Andhra Pradesh, Rajasthan, Punjab and Haryana, minimum agricultural wages are over Rs 60. According to latest figures, nearly 60 lakh people have been provided employment since the launch of the scheme in February. Out of 70,99,834 people who demanded employment, 59,94,249 have been given jobs.

Reports from the states say over 2.44 crore applications for registration had been received against which over 1.7 crore job cards were issued. The job card is a legal document that entitles a person to demand work under the NREG act and to obtain work within 15 days of the demand for work.