India’s anti-competitive housing societies: When rich employers try pay lower wages to domestic workers
- samyaknagar2704
- Feb 21
- 2 min read
On January 26, 2024, Dalit teacher Hemlata Bairwa opposed placing a Saraswati image on stage at her school’s Republic Day event, asserting Savitribai Phule as the true symbol of education. Her stance sparked backlash, leading to suspension, an FIR against her, and a transfer to a remote location. She later won reinstatement but has faced ongoing challenges, including non-payment of salary since March 2024. Hemlata, a single mother, struggles financially, with her children’s education and household expenses unpaid. She survives on one meal daily and relies on family support. Despite orders for her salary disbursement, delays persist. She also filed an FIR against colleagues for caste-based harassment, but the police have not acted. Hemlata remains resolute, citing constitutional principles and her commitment to honoring Savitribai Phule’s legacy. Meanwhile, departmental inquiries and police investigations into her case are still pending. A social media post from a Gurugram resident highlighted housing societies fixing domestic workers' wages, sparking a broader conversation. This practice, common in Bengaluru and Hyderabad, often begins with resident complaints about "high" wages on society chat groups, leading to "rate cards" that underpay workers, mainly women from marginalized communities. Residents, often proponents of free markets, ironically distort Labour markets by suppressing wages. Similar collusion extends to rent fixing, where large housing societies set minimum rents, disrupting neighborhood markets and inflating costs for renters. These practices, illegal in many Western countries under competition laws, have led to significant penalties, as seen in U.S. cases involving wage and rent fixing. In India, wage and rent fixing may violate Section 3 of the Competition Act, but enforcement remains absent. Experts advocate for Competition Commission studies and state amendments to housing laws to prohibit such collusion, protecting Labour and rental markets from exploitation |
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