Document Fragment View

Matching Fragments

10. I have heard K. Kasturi and A.G. Holla, the learned Counsels appearing for the petitioners, Mr. R.I. D'Sa, learned Government Advocate, Mr. M.C. Narasimhan, Mr. Anantharaman and Mr. K.S. Subrama-niam appearing for the various trade unions of workers. Both sides highlighted various aspects of the issues involved. In a nutshell, shorn of the details, the minimum wages fixed for the workers as per the impugned notification is as under:

"The pre-existing wages of Rs. 19.65/- per 1,000 Beedis rolled and VDA at 2 paise over the above 976 points has been enhanced to Rs. 36.85/- per 1,000 Beedis rolled besides VDA at the rate 3 paise per point in excess of 1,513".

21. We will now take up this issue for consideration. As we noticed earlier, minimum wages is not synonym of living wages nor is it the fair wages. It may be understood, as an intermediary wages above the living wages and below fair wages. Now hypothetical cases apart, has the Government kept this aspect in mind while fixing the impugned minimum wages? We will briefly deal with the question in the following manner applying the factual materials available here. The variable D.A. hitherto had been 0.02 paise per point excess of 976. Now by the impugned notification it has been revised to 0.03 paise per point above 1,513. In other words, 537 points which would have earned a sum equal to Rs. 10.74 in the absence of wage revision has been taken away as far as the worker is concerned. If this is worked out under pre-revision fixation a worker would have earned Rs. 19.65 + Rs. 10.74 (Rs. 30.39) as against Rs. 36.87 now fixed. To put it differently the hike is Rs. 6.48 that is the percentage of hike is 20% in aggregate. Now thereafter 0.02 paise has been increased to 0.03 paise on one count and the basic salary of Rs. 19.65 enhanced to Rs. 36.85. When the above said 537 points absorbed in the basic salary it will work out at Rs. 30.39. The index point as on April 1, 1976 was 1,700 (vide statement made at the Bar). Therefore the difference from the earlier index is 1,700 - 976 = 724. But if 0.03 paise is reckoned taking into account for the 724 points it would be Rs. 19.65 + 21.72 = Rs. 41.37. Now the minimum wages as per the impugned notification as on November 1, 1996 would be Rs. 36.85 + 5.61 = Rs. 42.46. In other words the increase of VDA at 3 paise has been given effect to from the date of earlier fixation of VDA i.e., from the date of Index point was 976.

24. There is yet another aspect which was strongly put across by Mr. Holla. The grievance is that there has not been an effective consideration of the objections of the employer and there was no consultation as contemplated under the Statute. This is clearly demonstrated from the files made available to the Court. The Labour Department has offered, the comments to the objection of the employer. Certain comments offered indicating that the Government has not taken into account the correct yardsticks in the matter of fixation. The noting states, that the State Government can revise the minimum wages at any time it suits, the minimum wages being paid in other States are irrelevant consideration, as and when there is increase in CPI, the wages should be revised, there is no need to wait the outcome of the Tripartite Committee report, the Government has discretionary power either to consider the report of the Advisory Board or reject it, that it is only necessary to consider the suggestion of the trade union, that the VDA may be fixed at 3 paise per point above 1,513 in the final notification etc. The recommendation of the Advisory Committee was made on March 27, 1995 and the above comments are before the said Act. Clearly, the Government have decided what should be the VDA even before it received the Report of the Committee. This also demonstrates that the Government did not kept an open mind on issue.

27. Mr. Holla, learned Counsel in this behalf submits that the factum of fixation of an arbitrary amount as minimum wages for 1,000 beedies rolled and VDA at 3 paise makes it further clear that the authority concerned has not kept in mind the various criteria to be followed while considering the representation of the employer in the matter of fixing the minimum wages. He submits that it is essential that the authority conforms to the requirement of Section 5 while fixing the minimum wages. It is seen that, the Government relied on the advice of the Labour Department, to go ahead and fix the VDA at 3 paise over the above 1,513 even before it received the report of the Tripartite Committee. It had kept a closed mind in this behalf. On the merits it is pointed out by him that the minimum wages fixed for the Tobacco Industry is a relevant circumstance to be borne in mind before the authority undertakes fixation of minimum wages for the Beedi Industry. Secondly, VDA paid in other industries ought to have also been adverted and compared. The prevalent wage structure in the adjoining State where the same commodities are manufactured and marketed have to be taken note of and compared. It is further submitted that the raw material is imported from other States. A rigid application of the rule of fixation of minimum wages may even encourage migratory tendency with the industry.