TIRUPPUR: All associations of manufacturers and exporters in the knitwear sector in Tiruppur have decided to form a joint committee to discuss the new wage agreement to be decided with trade unions within two months. The previous four-year wage agreement signed in September 2021 expired in September 2025.
Around 22,500 companies and about 10 lakh workers, including migrant workers, are dependent on the knitwear sector in Tiruppur, known as ‘the knitwear capital of India’.
It is customary for all manufacturers’ associations in Tiruppur to negotiate and finalise a wage pact with trade unions once every four years. Due to the expiry of the previous one, all trade unions have been requesting associations of manufacturers to initiate negotiations for a new wage agreement.
Speaking to TNIE, K M Subramanian, president of Tiruppur Exporters’ Association (TEA), who was unanimously elected as the chairman of the joint committee at a consultation meeting held on Tuesday evening, said, “The joint committee will include administrators from six associations of TEA, South India Hosiery Manufacturers’ Association (SIHMA).
The committee will handle matters related to the negotiations of the new wage agreement. The joint committee is scheduled to hold talks with the trade unions on November 20. New wage agreement will be finalised within two months.”
TEA also is a part of the committee. The election of other members will be completed in a day or two.
K Ramakrishnan, general secretary of Baniyan Union (LPF), said, “In knitwear companies, skilled workers working on shift basis in sections including tailoring, cutting, ironing, knitting, and checking are currently paid a salary of Rs 500. Unskilled workers are paid Rs 350 to Rs 400. But piece rate workers earn more.”
“At present, the prices of essential commodities have risen sharply. In addition, the needs of workers and their families have increased. The current situation is that a worker can only support his family if he earns more than Rs 25,000 per month. So we insist on a 100% wage increase. Skilled workers should be paid Rs 1,000 for 8 hours of work. Unskilled workers should also be given a 100% increase in their current wages” he added.
N Sekar, general secretary of the Baniyan Union (AITUC), said, “As per our calculations, a worker needs Rs 32,941 per month to support a four-member family. A higher salary than this should be fixed in the new wage agreement. Those working on time rate and piece rate-basis should also be given an appropriate increase. Travel allowance should be increased from Rs 25 to Rs 50. Workers should be paid a tiffin fee of Rs 75 for half a night and Rs 120 for a full night.”
“Apart from this, house rent, marriage allowance, educational allowance, insurance, family welfare allowance, trip allowance etc. should be provided. ESI and PF schemes should be fully implemented for all workers,” he added.