Case: Jaydip Industries, Thana Vs. The Workmen

notwithstanding anything contained in this Act, the minimum rates of wages so fixed or so revised shall not apply to those employees during the period in which the proceeding is pending and the award made therein is in operation, or, as the case may be, where the notification is issued during the period of operation of an award, during that period; and where such proceeding or award relates to the rates of wages payable to all the employees in the scheduled employment, no minimum rates of wages shall be fixed or revised in respect of that employment during the said period."10. It may be recalled that it was during the pendency of the proceedings before the Tribunal that the notification by the Maharashtra Government fixing minimum rates of wages came into operation. The sub-section would make it clear that even after the fixation of minimum rates of wages by the appropriate Government under section 3 of the Act, it is open to an Industrial Tribunal adjudicating an industrial dispute relating to wages payable to the employees in a scheduled employment to fix minimum wages at higher or lower rates, if the dispute was pending at the time of fixation of minimum wages under S. 3 of the Act. So it was open to the Tribunal to fix rates of minimum wages at rates higher than the rates fixed by the Government under section 3 of the Act. In other words the Tribunal was not bound by the fixation of the minimum rates of wages by the Government under the provisions of S. 3 of the Act and could fix higher rates as minimum wages in its award.11. In considering the question what are the component elements of minimum wages, this Court observed as follows in U. Unichoyi v. State of Kerala, (1962) 1 SCR 946 at p. 957 = (AIR 1962 SC 12 at p. 17):"Sometimes the minimum wage is described as a bare minimum wage in order to distinguish it from the wage structure which is subsistence plus or fair wage, but too mush emphasis on the adjective bare in relation to the minimum wage is apt to lead to the erroneous assumption that the maintenance wage is a wage which enables the worker to cover his bare physical needs and keep himself just above starvation. That clearly is not intended by the concept of minimum wage. On the other hand, since the capacity of the employer to pay is treated as irrelevant, it is but right that no addition should be made to the components of the minimum wage which would take the minimum wage near the lower level of the fair wage, but the contents of this concept must ensure for the employee not only his subsistence and that of his family but must also preserve his efficiency as a worker."The Act contemplates that minimum wage rates should be fixed in the scheduled industries with the dual object or providing sustenance and maintenance of the worker and his family and preserving his efficiency as a worker."It is, therefore, clear that the minimum wage can provide not only for the bare sustenance of life but also for the preservation of the efficiency of the worker. We do not think that the rates of wages fixed by the Tribunal were fair wages or wages bordering on fair wages. The Tribunal has referred to the minimum rates of wages fixed in the several awards passed by it from 1962 onwards, and also considered the is in the cost of living. In particular, the Tribunal was careful to take into account the Consumer Price Index for the month of December, 1966, and that for the month of January, 1967, for coming to the conclusion that rates higher than those specified in the notification published by Government should be fixed as minimum wages. As the rates fixed by the Tribunal were minimum rates of wages as explained in the case of (1962) 1 SCR 946 = (AIR 1962 SC 12 ) we do not think that the capacity of the industry to pay was a relevant consideration.12. There was also no material before the Tribunal to come to the conclusion that the Government, in fixing the minimum rates of wages, took into consideration all the components in the fixation of minimum wages as explained by this Court in (1962) 1 SCR 946 = (AIR 1962 SC 12 ).13. In the light of the provisions of section 3 (2A) of the Act, we hold that the Tribunal was not bound by the rates of minimum wages fixed by the Government under section 3 of the Act and that it was open of the Tribunal to fix rates of minimum wages to be paid to the workmen concerned in the dispute at figures higher than those fixed by the Government.14. It was contended on behalf of the appellant that the employer has his place of business outside the city of Bombay and that in the city of Bombay, the wages for workmen are generally higher than those outside the city, and therefore, the Tribunal went wrong in taking the minimum rates of wages fixed in the various awards for workmen in the city of Bombay as criteria for fixing the minimum wages for workmen outside the city. The Tribunal considered this question and held that the rates of minimum wages fixed by the Government for the city of Bombay, the town of Thana and also for the village of Majiwade, where the appellants factory is situate, are the same and so, the rates of wages at Majiwade are not lower than the wage rates obtaining in the city of Bombay and Thana. We do not, therefore, think that the Tribunal went wrong in taking into account the rates of minimum wages fixed in the several awards for the workmen employed in the city of Bombay as affording criteria for fixing minimum rates of wages with suitable modification for the workmen employed under the appellant.

Decision (1 = appeal accepted, 0 = rejected): 0

Explanation:
0[ds]It is, therefore, clear that the minimum wage can provide not only for the bare sustenance of life but also for the preservation of the efficiency of the worker. We do not think that the rates of wages fixed by the Tribunal were fair wages or wages bordering on fair wages. The Tribunal has referred to the minimum rates of wages fixed in the several awards passed by it from 1962 onwards, and also considered the is in the cost of living. In particular, the Tribunal was careful to take into account the Consumer Price Index for the month of December, 1966, and that for the month of January, 1967, for coming to the conclusion that rates higher than those specified in the notification published by Government should be fixed as minimum wages. As the rates fixed by the Tribunal were minimum rates of wages as explained in the case of (1962) 1 SCR 946   = (AIR 1962 SC 12  ) we do not think that the capacity of the industry to pay was a relevant consideration.In the light of the provisions of section 3 (2A) of the Act, we hold that the Tribunal was not bound by the rates of minimum wages fixed by the Government under section 3 of the Act and that it was open of the Tribunal to fix rates of minimum wages to be paid to the workmen concerned in the dispute at figures higher than those fixed by thedo not, therefore, think that the Tribunal went wrong in taking into account the rates of minimum wages fixed in the several awards for the workmen employed in the city of Bombay as affording criteria for fixing minimum rates of wages with suitable modification for the workmen employed under the appellant.It may be recalled that it was during the pendency of the proceedings before the Tribunal that the notification by the Maharashtra Government fixing minimum rates of wages came into operation. Thewould make it clear that even after the fixation of minimum rates of wages by the appropriate Government under section 3 of the Act, it is open to an Industrial Tribunal adjudicating an industrial dispute relating to wages payable to the employees in a scheduled employment to fix minimum wages at higher or lower rates, if the dispute was pending at the time of fixation of minimum wages under S. 3 of the Act. So it was open to the Tribunal to fix rates of minimum wages at rates higher than the rates fixed by the Government under section 3 of the Act. In other words the Tribunal was not bound by the fixation of the minimum rates of wages by the Government under the provisions of S. 3 of the Act and could fix higher rates as minimum wages in its award.11. In considering the question what are the component elements of minimum wages, this Court observed as follows in U. Unichoyi v. State of Kerala, (1962) 1 SCR 946     at p. 957 = (AIR 1962 SC 12   at p.the minimum wage is described as a bare minimum wage in order to distinguish it from the wage structure which is subsistence plus or fair wage, but too mush emphasis on the adjective bare in relation to the minimum wage is apt to lead to the erroneous assumption that the maintenance wage is a wage which enables the worker to cover his bare physical needs and keep himself just above starvation. That clearly is not intended by the concept of minimum wage. On the other hand, since the capacity of the employer to pay is treated as irrelevant, it is but right that no addition should be made to the components of the minimum wage which would take the minimum wage near the lower level of the fair wage, but the contents of this concept must ensure for the employee not only his subsistence and that of his family but must also preserve his efficiency as aAct contemplates that minimum wage rates should be fixed in the scheduled industries with the dual object or providing sustenance and maintenance of the worker and his family and preserving his efficiency as ais, therefore, clear that the minimum wage can provide not only for the bare sustenance of life but also for the preservation of the efficiency of the worker. We do not think that the rates of wages fixed by the Tribunal were fair wages or wages bordering on fair wages. The Tribunal has referred to the minimum rates of wages fixed in the several awards passed by it from 1962 onwards, and also considered the is in the cost of living. In particular, the Tribunal was careful to take into account the Consumer Price Index for the month of December, 1966, and that for the month of January, 1967, for coming to the conclusion that rates higher than those specified in the notification published by Government should be fixed as minimum wages. As the rates fixed by the Tribunal were minimum rates of wages as explained in the case of (1962) 1 SCR 946   = (AIR 1962 SC 12  ) we do not think that the capacity of the industry to pay was a relevant consideration.There was also no material before the Tribunal to come to the conclusion that the Government, in fixing the minimum rates of wages, took into consideration all the components in the fixation of minimum wages as explained by this Court in (1962) 1 SCR 946   = (AIR 1962 SC 12  ).