Document Fragment View

Matching Fragments

1. In these Writ Petitions, the Petitioners, have questioned the validity of the notifications issued by the State Government under Section 3 of the Minimum Wages Act ('the Act' for short) fixing minimum wages for various employments specified in Part-II of the Schedule to the Act. The first group of these Petitions are by the employers and the second group are by Trade Unions on behalf of workmen in various industries. Both are aggrieved by the impugned notifications, but for different reasons.

The Notification issued under Section 9 of the Act appointing the Board reads-

"SOCIAL WELFARE AND LABOUR SECRETARIAT Notification No. SWL 12 LMW 83, Bangalore Dated 29th August, 1983.
In exercise of the powers conferred vide Sections 7 and 9 of the Minimum Wages Act, 1948, (Central Act XI of 1948) read with rule 4 of the Karnataka Minimum Wages Rules, 1958 and in supersession of Government Notification No. SWL 5 LMW 80 dated 5th December 1980, the Government of Karnataka hereby reconstitute the Karnataka State Mini-mum Wages Advisory Board consisting of the following members with effect from the date of publication of this Notification in the Karnataka Gazette :
(iv) Kamani Metals-v.-Workman, in which rise of dearness allowance at the rate of 50 paise per point at every 10 point rise of C.P.I. number was approved.
(v) Bengal Chemicals and Pharmaceuticals -v.- Its Workmen, in which dearness allowance at the rate of Re.10/-per 5 point rise above C.P.I. number 425 was approved.

All the above cases arose out of industrial dispute raised by the concerned workmen and not under the Minimum Wages Act. While the general principles laid down in the said decisions are relevant subject to the specific provision of the Act, the rates of dearness allowance fixed or approved in those cases are not apposite to fixation of 'minimum wages' under the Act. The rate of increase provided for the lowest category in the impugned notification at 5 paise per point per day is required to be given effect to at every 5 points. For 26 days in a month it comes to Rs. 6.50 or Rs. 1.30 per point. The next higher rate of 35 paise per five points per day works out to Rs. 9.10 per month for 5 points or Rs. 1.82 per point per month. The next higher rate of 45 paise per five points per day works out to Rs. 11.70 per month or Rs. 2.34 per point per month. As the basic wages together with clearness allowance constitute minimum wages the point raised has to be decided having due regard to the provisions of the Act. It reads:

The rates of Minimum Wages fixed are necessary for their subsistence. With the increase of cost of living, they would be unable to subsist-

Unlike persons drawing higher salary, they will have no surplus money to make any adjustment, i.e., by cutting down expenses, other than those required for food and clothing and other non-essential expenses. Therefore cent per cent neutralisation is a must and that is what is required to be provided by Section 4(1)(i).

As far as principles 2 and 4 are concerned, they are also relevant to the fixation of rates of dearness allowance under the Minimum Wages Act. The impugned notification shows that the said bases have been adopted in fixing the rates of dearness allowance. The third principle is also relevant, but it goes with the fourth principle and the minimum wages have to be fixed, having due regard to the nature of the employment and its location wherever relevant as has been done in the impugned notification, as a result of which employees who get similar rate of basic minimum wages, would also be getting similar rate of dearness allowance.