A low national floor wage means a state-level race to the bottom on wages is likely. If states are competing for industry and have discretion to set minimum wages – and if industry is attracted to states with the lowest wages – then states are likely to compete for industry by setting wages lower than competing states. This has already occurred in recent years; factories have shifted out of India’s capital, Delhi, to neighbouring states of Haryana and Uttar Pradesh, to take advantage of lower minimum wage rates there.() Issue 1.2: No more sectoral minimum wages What it is: Section + of the Code on Wages,$%'"# requires minimum wage to be set per “skill level” (“unskilled, skilled, semi-skilled and highly-skilled”) and type of location (metropolitan, non-metropolitan and rural), rather than per job (tailor, mason, etc.). Why it is new: Under the Minimum Wages Act, "#),, the “appropriate government” had the power to set minimum wages for a given sector in the government’s employment schedule, a list of government-recognised jobs that set minimum wages for each job. This system was criticised because of its complexity and the arbitrariness of some of its distinctions.(* Why it matters: The new system under the Code of Wages, %'"# creates barriers to sectoral bargaining. The Minimum Wages Act, "#),$ schedule of employment facilitated sectoral collective bargaining with both industry and government, since workers could ask for inclusion in the government employment schedule or a revision in the minimum wage for their particular job. This was a major benefit for informal sector and unorganised sector workers, for example, domestic workers. Moving forward, job classification as unskilled, semi-skilled, skilled or highly-skilled will determine the minimum wage for that job. This is not a determination in which workers have any formal input. 22