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The liability for pastgratuity would be Rs. 93,376 and the recurring annual increase in gratuity would be Rs. 11,000. Ratio |
The total cost of closing down the concern, if perchance 75 the petitioners have to so close down owing to their inability to carry on the business except at a loss, is worked out at Rs. 6,13,921 for the working journalists as against the old basis of Rs. 1,00,890. Ratio |
The figure for the rest of the staff who are not working journalists is computed at Rs. 3,08,112 with the result that the total cost of closing down on the new basis under the provisions of the Act and the decision of the Wage Board would be Rs. 9,22,033 as against what otherwise would have been a sum of Rs. 4,09,002. ... |
The Hindustan Times Ltd., New Delhi, the petitioners in Petition No. 103 of 1957, otherwise called "the Hindustan Times Group", publish (i) Hindustan Times, an English (morning) Daily, (ii) Hindustan Times (Evening News) an English (evening) Daily, (iii) Overseas Hindustan Times, an English Weekly, (iv) Hindustan, a Hi... |
They employ a total number of 695 employees out of whom 79 are working journalists, 14 are proof readers and the rest, viz., 602 are other members of the staff. Ratio |
The wages paid to the working journalists absorb about one third of the total wage bill as against 602 other members of the staff whose wage bill constitutes the remaining two thirds. Ratio |
If the decision of the Wage Board is given effect to the petitioners would be subjected to the following additional liabilities in respect of working journalists alone : (i) Increase in the annual wage bill Rs. 2,16,000 (Approx.) (ii) Arrears of payments from May 2, 1956, to April 30,1957, Rs. 1,89,000 (iii) Past liabi... |
The total liability thus comes to Rs. 6,98,000. Ratio |
The above figures do not include increased liability on account of the petitioners ' contribution towards provident fund, leave rules and payment to part time correspondents. Ratio |
There would also be a further recurring increase in the wage bill by reason of the increments which would have to be given to the various categories of working journalists on the scales of wages prescribed by the Wage Board. Ratio |
If other members of the staff (who are not working journalists") were to be considered for 76 increase in their emoluments, etc. Ratio |
, there will be a further burden on the petitioners computed as under: (a)Increase in the annual wage bill, Rs. 5,02,000 (Approx.), (b) arrears of payments from May 2, 1956, to April 30, 1957, Rs. 4,51,000 (Approx.), (c) Past liability in respect of gratuity as on March 31, 1957, Rs. 5,50,000 (Approx.), (d) Recurring a... |
The total comes to Rs. 15,63,000. Ratio |
They employ 15 working journalists. Ratio |
The annual wage bill of working journalists would have to be increased by reason of the decision of the Wage Board by Rs. 10,800; the burden of payment of retrospective liability being Rs. 9,600. Ratio |
Moreover, there will be a recurring annual burden of Rs. 6,340 inclusive of the expenditure involved by reason of the provisions as to (i) Notice pay, (ii) Gratuity, (iii) Retrenchment compensation and (iv) Extra burden of reduced hours of work and increased leave. Ratio |
The Sandesh Ltd., the petitioners in Petition No. 117 of 1957, otherwise styled, the Sandesh Group, Ahmeda bad, publish (i) Sandesh, a morning Gujarati Daily, (ii) Sevak, an evening Gujarati Daily, (iii) Bal Sandesh, a Gujarati Weekly, and (iv) Aram, and (v) Sat Sandesh, Gujarati Monthlies all from Ahmedabad. Ratio |
They employ a total staff of 205 employees out of whom there are 11 working journalists, 7 proof readers and the rest 187 constitute the other members of the staff. Ratio |
The increase in the wage bill of the working journalists under the provisions of the Act would be Rs. 24,807 per year besides a similar liability for Rs. 24,807 by reason of the retrospective operation of the decision. Ratio |
There will be an increase in expenditure to the tune of Rs. 30,900 by reason of the reduced working hours and increase in leave and holidays, a liability of Rs. 31, 597 for past gratuity and Rs. 24,807 every year for recurring gratuity as also Rs. 1,530 for recurring increase in wages of the working journalists. Ratio |
The financial burden in the case of proof readers who 77 are included in the definition of working journalists tinder the terms of the Act would be Rs. 5,724 per year. Ratio |
If similar benefits were to be given to the other members of the staff who are not working journalists the annual increase in the burden will be Rs. 1,89,816. Ratio |
The total costs of closing down if such an eventuality ' were contemplated would be Rs. 1,08,997 for the working journalists only as against a liability of Rs. 22,755 on the old basis. Ratio |
The other members of the staff would have to be paid Rs. 1,46,351 and the total cost of closing down the whole concern would thus conic to Rs. 2,55,349 under the new dispensation as against Rs. 1,69,106 as of old. Ratio |
The Jansatta Karyalaya, Ahmedabad, petitioners in Petition No. 118 of 1957 bring out (i) Jansatta, a Gujarati Daily and (ii) Chandni a Gujarati Monthly from Ahmedabad. Ratio |
The increase in the wage bill of the working journalists would come to Rs. 29,808. Ratio |
The liability for past gratuity would be Rs. 6,624 and the recurring annual gratuity would be Rs. 2,303 and the annual recurring increase in wages would come to Rs. 2,280. Ratio |
The financial burden in case of proof readers would be Rs. 6,480 per year as per the decision of the Wage Board. Ratio |
If similar benefits had to be given to the other members of the staff who are non working journalists the annual burden will increase by Rs. 48,720. Ratio |
The total cost of closing down, if such a contingency ever arose, would come to Rs. 1,00,798 under the provisions of the Act and the Wage Board decision as against Rs. 45,206 on the old basis. Ratio |
All these petitions filed by the several petitioners as above followed a common pattern. Ratio |
After succinctly reciting the history of the events narrated above which led to the enactment of the impugned Act and the decision of the Wage Board, they challenged the vires of the Act and the decision of the Wage Board. Ratio |
The vires of the Act was challenged on the ground that the provisions thereof were violative of the fundamental rights guaranteed by the Constitution under article 19(1)(a), 78 article 19(1)(g), and article 14 ; but in the course of the argu ments before us another Article, viz., article 32 was also added as having bee... |
The decision of the Wage Board was challenged on various grounds which were in pari materia with the objections that had been urged by the representatives of the employers in the Wage Board in their minute of dissent above referred to. Ratio |
It was also contended that the implementation of the decision would be beyond the capacity of the petitioners and would result in their titter collapse. ARG |
The reply made by the respondents was that none of the fundamental rights guaranteed under article 19(1)(a), article 19(1)(g), article 14 and/or article 32 were infringed by the impugned Act, that the functions of the Wage Board were not judicial or quasijudicial in character, that the fixation of the rates of wages wa... |
The petitioners in Petitions Nos. 91 of ' 1957, 99 of 1957, 100 of 1957, 101 of 1957 and 103 of 1957 also filed petitions for special leave to appeal against the decision of the Wage Board being Petitions Nos. 323, 346, 347, 348 and 359 of 1957 respectively and this Court granted the special leave in all these petition... |
Civil Appeals arising out of these special leave petitions were ordered to be placed along with the Writ Petitions aforesaid for hearing and final disposal and Civil Appeals Nos. Ratio |
699 of 1957, 700 of 1957, 701 of 1957, 702 of 1957 and 703 of 1957 79 arising therefrom thus came up for hearing and final disposal before us along with the Writ Petitions under article 32 mentioned above. Ratio |
We took up the hearing of the Writ Petitions first as they were more comprehensive in scope than the Civil Appeals filed by the respective parties and heard counsel at considerable length on the questions arising for our determination therein. Ratio |
Before we discuss the vires of the impugned Act and the decision of the Wage Board, it will be appropriate at this juncture to clear the ground by considering the principles of wage fixation and the machinery employed for the purpose in various countries. Ratio |
The concept of the living wage: "The concept of the living wage which has influenced the fixation of wages, statutorily or otherwise, in all economically advanced countries is an old and well established one, but most of the current definitions are of recent origin. Ratio |
The most expressive definition of the living wage is that of Justice Higgins of the Australian Commonwealth Court of Conciliation in the Harvester case. Ratio |
He defined the living wage as one appropriate for " the normal needs of the average employee, regarded as a human being living in a civilized community ". Ratio |
Justice Higgins has, at other places, explained what he meant by this cryptic pronouncement. Ratio |
The living wage must provide not merely for absolute essentials such as food, shelter and clothing but for " a condition of frugal comfort estimated by current human standards. Ratio |
" He explained himself further by saying that it was a wage " sufficient to insure the workmen food, shelter, clothing frugal comfort, provision for evil days, etc., as well as regard for the special skill of an artisan if he is one ". Ratio |
In a subsequent case he observed that " treating marriage as the usual fate of adult men, a wage which does not allow of the matrimonial condition and the maintenance of about five persons in a home would not be treated as a living wage". Ratio |
According to the South Australian Act of 1912, the living wage means " a sum 80 sufficient for the normal and reasonable needs of the average employee living in a locality where work under consideration is done or is to be done." The Queensland Industrial Conciliation and Arbitration Act provides that the basic wage pa... |
In a Tentative Budget Inquiry conducted in the United States of America in 1919 the Commissioner of the Bureau of Labour Statistics analysed the budgets with reference to three concepts, viz., (i) the pauper and poverty level, (ii) the minimum of subsistence level, and, (iii) the minimum of health and comfort level,and... |
The Royal Commission on the Basic Wage for the Commonwealth of Australia approved of this course and proceeded through norms and budget enquiries to ascertain what the minimum of health and comfort level should be. Ratio |
The commission quoted with approval the description of the minimum of health and comfort level in the following terms: " This represents a slightly higher level than that of subsistence, providing not only for the material needs of food, shelter, and body covering but also for certain comforts, such as clothing suffici... |
" Writing practically in the same language, the United Provinces Labour Enquiry Committee classified level of living standard in four categories, viz., (i) the poverty level,81 (ii) the minimum subsistence level, (iii)the subsistence plus level and (iv) the comfort level, and chose the subsistence plus level as the bas... |
Any definition of a standard of living is necessarily descriptive rather than logical. Ratio |
Any minimum, after all, is arbitrary and relative. Ratio |
No completely objective and absolute meaning can be attached to a term like the living wage standard " and it has necessarily to be judged in the light of the circumstances of the particular time and country. Ratio |
" The Committee then proceeded through the use of norms and standard budgets to lay down what the basic wage should be, so that it might approximate to the living, wage standard " in the light of the circumstances of the particular time and country. Ratio |
" The Minimum Wage Fixing Machinery published by the 1. L. O. has summarised these views as follows: " In different countries estimates have been made of the amount of a living wage, but the estimates vary according to the point of view of the investigator. Ratio |
Estimates may be classified into at least three groups: (1) the amount necessary for mere subsistence, (2) the amount necessary for health and decency,and (3) the amount necessary to provide a standard of comfort. Ratio |
" It will be seen from this summary of the concepts of the living wage held in various parts of the world that there is general argument that the living wage should enable the male earlier to provide for himself and his family not merely the bare essentials of food, clothing and shelter but a measure of frugal comfort ... |
The concept of the minimum wage: " The International Convention of 1928 prescribes the setting up of minimum wage fixing machinery in industries in which " no arrangements exist for the effective regulation of wages by collective agreement or otherwise and wages are exceptionally low". . " As a rule, though the living ... |
This view has been accepted by the Bombay Textile Labour Inquiry Committee which says that " the living wage basis affords an absolute external standard for the determination of the minimum " and that " where a living wage criterion has been used in the giving of ail award or the fixing of a wage, the decision has alwa... |
(1) Report of the Committee on Fair Wagss (1947 to 1949), pp 5 7,paras. Ratio |
83 Provincial Governments consider that the minimum wage can at present be only a bare subsistence wage. Ratio |
In fact, even one important All India Organisation of employees has suggested that " a minimum wage is that wage which is sufficient to cover the bare physical needs of a worker and his family." Many others, '; however. . consider that a minimum wage should also provide for some other essential requirements such as a m... |
For this purpose, the minimum wage must also provide for some measure of education, medical requirements, and amenities. Ratio |
This is the concept of the " minimum wage " adopted by the Committee on Fair Wages. Ratio |
There are however variations of that concept and a distinction has been drawn, for instance, in Australian industrial terminology between the basic wage and the minimum wage. " The basic wage there approximates to a bare minimum subsistence wage and no normal adult male covered by an award is permitted to work a full s... |
The basic wage is expressed as the minimum at which normal adult male unskilled workers may legally be employed, differing from the amounts fixed as legal minima for skilled and semi skilled workers, piece workers and casual workers respectively. . . . . . . Ratio |
The minimum wage is the lowest rate at which members of a specified grade of workers may legally be employed. " (2) There is also a distinction between a bare subsistence or minimum wage and a statutory minimum wage. Ratio |
The former is a wage which would be sufficient to cover the bare physical needs of a worker and his family, that is, a rate which has got to be paid to the worker irrespective of the capacity of the industry to (i) Report of the Committee on Fair Wages, PP. Ratio |
7 9, paras, 8 10. Ratio |
(2) O.D.R. Feenander Industrial Regulation in Australia (1947), Ch. Ratio |
XVII, P. 155. Ratio |
84 pay. Ratio |
If an industry is unable to pay to its workmen at least a bare minimum wage it has no right to exist. Ratio |
As was observed by us in Messrs. Crown Aluminium Works vs Their Workmen (1): " It is quite likely that in underdeveloped countries, where unemployment prevails on a very arge scale, unorganised labour may be available on starvation wages, but the employment of labour on Starvation wages cannot be encouraged or favored ... |
If an employer cannot maintain his enterprise without cutting down the wages of his employees below even a bar(, subsistence or minimum wage, he would have no right to conduct his enterprise on such terms. Ratio |
" The statutory minimum wage however is the minimum which is prescribed by the statute and it may be higher than the bare subsistence or minimum wage, providing for some measure of education, medical requirements and amenities, as contemplated above. Ratio |
also the connotation of " minimum rate of wages " in section 4 of the (XI of 1948)). Ratio |
tasks in other trades which are of equal difficulty and disagreeableness, which require equally rare natural abilities and an equally expensive training. Ratio |
A wage rate, in his opinion, is "fair in the narrower sense" when it is equal to the rate current for similar workmen in the same trade and neighborhood and "fair in the wider sense" when it is equal to the predominant rate for similar work throughout the country and in the generality of trades. " " The Indian National... |
The minimum a wage should have no regard to the capacity of an industry to pay and should be based solely on the requirements of the worker and his family. Ratio |
Several employers while they are inclined to the view that fair wages would, in the initial stages, be closely related to current wages, are prepared to agree that the prevailing rates could suitably be enhanced according to the capacity of an industry to pay and that the fair" age would in time progressively approach ... |
It is necessary to quote one other opinion, viz., that of the Government of Bombay, which has had considerable experience in the matter of wage regulation. Ratio |
The opinion of that Government is as follows: " Nothing short of a living wage can be a fair wage if under competitive conditions an industry can be shown to be capable of paying a full living wage. Ratio |
The minimum wage standards set up the irreducible level, the lowest limit or the floor below which no workers shall be paid. . Ratio |
A fair wage is settled above the minimum wage and goes through the process of approximating towards a living wage. Ratio |
" While the lower limit of the fair wage must obviously be the minimum wage, the upper limit is equally set by what may broadly be called the capacity of industry to pay. Ratio |
This will depend not only on the present economic position of the industry but on its future prospects. Ratio |
Between these two limits the actual ", ages will depend on a consideration of the following factors and in the light of the comments given below: (i) the productivity of labour; (ii) the prevailing rates of wages in the same or 86 similar occupations in the same or neighbouring localities; (iii) the level of the nation... |
It will be noticed that the " fair wage " is thus a mean between the living wage and the minimum wage and even the minimum wage contemplated above is something more than the bare minimum or subsistence wage which would be sufficient to cover the bare physical needs of the worker and his family, a wage which would provi... |
This concept of minimum wage is in harmony with the advance of thought in all civilised countries and approximates to the statutory minimum wage which the State should strive to achieve having regard to the Directive Principle of State Policy mentioned above. Ratio |
The enactment of the , affords an illustration of an attempt to provide a statutory minimum. Ratio |
It was an Act to provide for fixing minimum rates of wages in certain employments and the appropriate Government was thereby empowered to fix different minimum rates of wages for (i) different scheduled employments; (ii) different classes of work in the same scheduled employment; (iii) adult ,, adolescents, children an... |
It varies and is bound to vary from time to time. Ratio |
With the growth and Development of national economy, living standards Would improve and so would our notions about the respective categories of wages expand and be more progressive. Ratio |
(1) Report of the Committee on Fair Wages, PP. Ratio |
4, 9 11, paras, 11 15. 87 It must however be remembered that whereas the bare minimum or subsistence wage would have to be fixed irrespective of the capacity of the industry to pay, the minimum wagg thus contemplated postulates the capacity of the industry to pay and no fixation of wages which ignores this essential fa... |
The rates of wages and scales of wages are two different expressions with two different connotations. Ratio |
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