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Company Response

1 Feb 2022

Shahi Exports' response re. VDA payments in Karnataka

... Shahi’s code of conduct clearly states that all employees shall be paid wages, overtime payments, and benefits in compliance with applicable laws. Operating more than 50 factories and employing over 100,000 workers (around 60,000 in Karnataka), our intention is to always remain a fully legal and ethical employer...

2021 Karnataka VDA payments In February 2021

...Shahi has been paying... [the 2021] VDA amounting to INR 428.40 per month per worker from April 2021 onwards.

2020 Karnataka VDA payments

... The final decision on payment of 2020 VDA is pending... We disagree with the claim that we are non-compliant or opposing the minimum wage laws... We, however, understand and share the concern about the remaining time that the Court proceedings may take, related to the time which has already passed... We hope that the final decision will be made by the Court at the earliest, however rather than wait further for this judgment, we will begin paying Karnataka 2020 VDA in the form of arrears for the months of April 2021 - January 2022. Below are the details of our approach to eligible workers as we await a judgment from the Court.

• The arrears for 2020 VDA for the months of April 2021 to January 2022 will be included with the wage payment of January 2022 which will be paid by February 10th, 2022.

• From February 2022 onwards, the 2020 VDA amount will be included in the monthly wage payments.

• We will await a decision from the court to payout the 2020 VDA arrears for the months of April 2020-March 2021. However, if there is no court decision by April 2022, we commit to paying these arrears regardless of the final decision. This amount would be fully paid with the April 2022 wages...

[The full response is attached]

Part of the following timelines

India: Brands & retailers respond to 'worst wage theft' documented in garment industry in Karnataka, India

India: Brands & retailers respond to 'worst wage theft' documented in garment industry in Karnataka, India