Iran war effect: Indian automobile hub raises minimum wage
What's the story
Haryana, a major hub for automobile manufacturing, has announced a 35% hike in the minimum wage. The decision comes after workers staged protests and boycotted work over rising living costs due to the US-Israeli conflict in Iran. The new wage for unskilled workers will be ₹15,220 per month, up from ₹11,274.60.
Implementation date
Revised minimum wage to take effect from April 1
The Haryana government has announced that the revised minimum wage will come into effect from April 1. This move is expected to provide some relief to workers who have been struggling with rising costs of living. However, it could also add pressure on India's auto industry, which is already grappling with rising input prices and supply chain disruptions due to the ongoing conflict in Iran.
Industrial unrest
Wage hike follows protests in Manesar
The wage hike comes after protests disrupted the auto industry in Manesar, a town that hosts major companies like Maruti Suzuki and hundreds of ancillary units. Workers have been demanding pay rises to sustain their livelihoods as food prices soar and gas supplies remain erratic. Akash Kumar, an employee at Munjal Showa, said street vendors were charging him double for meals due to rising costs.
Gas crisis
Gas supply cuts and price hikes
India, the second-largest importer of liquefied petroleum gas (LPG), is facing its worst gas crisis in decades. The government has cut supplies for industries to protect households from a cooking gas shortage. This has resulted in price hikes at eateries due to disrupted supplies of gas, affecting factory workers. Some companies like Tata Motors and Mahindra have already raised car prices due to rising raw material costs stemming from the Iran war.