A radical change in the labour structure of the province of Punjab has been carried out by the Labour Department of Punjab. A new announcement invalidated 102 types of workers and hence minimum wage is no longer applicable to such workers. This great reform is leaving industry professionals and trade unions with concerns on whether or not been affected workers will face financial losses.
The government has also eliminated the line between semi-skilled and skilled labor. Labor unions caution that this would raise the risk of disadvantaging skilled workers who are already being paid lower wages than they should according to their experience levels. The Industrial Workers Union pointed out that the introduction of the same pay rate to all workers might lower the standards of work quality, productivity, and efficiency in all industries.
The leaders of the union are pressuring the Punjab government to change their mind about this move. Their suggestion is to implement policies that compensate experience and expertise, instead of removing wages disparities. Good remuneration of skilled workers is considered critical to maintaining productivity and motivation within the labor force.
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Businesses and employees alike are keeping a close eye on this decision by the Labour Department since it directly impacts on labor costs, workforce planning and the overall economic environment in Punjab. It is recommended that companies pay close attention to these changes and adapt their policies towards HR so that they can remain competitive without treating the workers unfairly.
