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This ground is based on the definition of " newspaper establishment" found in Sec. Ratio |
2 (d) of the Act. Ratio |
" Newspaper establishment" is there defined as " an establishment under the control of any person or body of persons, whether incorporated or not, for the production or publication of one or more newspapers or for conducting any news agency or syndicate. Ratio |
" So, the contention put forward is that " an establishment " can only mean " an establishment " and not a group of them, even though such an individual establishment may produce or publish one or more newspapers. Ratio |
The definition may comprise within its scope chains or multiple units, but even so, the establishment should be one individual establishment producing or publishing a chain of newspapers or multiple units of newspapers. Ratio |
If such chains or multiple units were, though belonging to some person or body of persons whether incorporated or not, produced or published by separate newspaper establishments, common control would not render. Ratio |
the constitution of several newspaper establishments as one establishment for the purpose of this definition, they would none the less be separate newspaper establishments though under common control. Ratio |
Reliance was placed in support of this contention on a decision of the Calcutta High Court in Pravat Kumar 181 vs W. T. C. Parker (1), where the expression which came up for construction before the Court was " employed in an industrial establishment " and it was observed that: " Employed in an industrial establishment ... |
" A similar interpretation was put on the expression industrial establishment " by the Madras High Court in section R. V. Service Ltd. vs State of Madras (2), where it was observed at p. 12: " They referred only to a dispute between the workers and the management of one industrial establishment, the Kumbakonam branch o... |
I need refer only to section 3 of the Act to negative the contention of the learned counsel for the Madras Union, the section R. V. section Ltd., with all its branches should betaken as one industrial establishment. Ratio |
" These decisions lend support to the contention that a newspaper establishment like an industrial establishment should be located in one place, even though it may be carrying on its activities of production or publication of more newspapers than one. Ratio |
If these activities are carried on in different places, e. g., in different towns or cities of different States, the newspaper establishments producing or publishing such newspapers cannot be treated as one individual establishment but should be treated as separate newspaper establishments for the purpose of working ou... |
There would be no justification for including these different newspaper establishments into. Ratio |
one chain or multiple unit and treating them, as if they were one (1) A. I. R. , 118, para. Ratio |
(2) A. I. R. , 122. Ratio |
182 newspaper establishment. Ratio |
Here again, the petitioners are faced with this difficulty that there is nothing in the Act to prohibit such a grouping. Ratio |
If a classification on the basis of gross revenue could be legitimately adopted by the Wage Board then the grouping into chains or multiple units could also be made by it. Ratio |
There is nothing in the Act to prohibit the treating of several newspaper establishments producing or publishing one or more newspapers though in different parts of the country as one newspaper establishment for the purpose of fixing the rates of wages. Ratio |
It would not be illegitimate to expect the same standard of employment and conditions of service in several newspaper establishments under the control of any person or body of persons, whether incorporated or not; for an employer to think of employing one set of persons on higher scales of wages and another set of work... |
All these considerations would necessarily have to be borne in mind by the Wage Board in arriving at its decision in regard to the wage structure though the relative importance to be attached to one circumstance or the other may vary in accordance with the conditions in different areas or regions where the newspaper es... |
Re. 8. Ratio |
We now come to the most important ground, viz., that the decision of the Wage Board has not taken into consideration the capacity to pay of any particular newspaper establishment. Ratio |
As we have already seen, the fixings: of rates of wages by the Wage Board did not prescribe whether the wages which were to be fixed were minimum wages, fair wages, or living, wages and it was left to the discretion of the Wage Board to determine the same. Ratio |
The principles for its guidance were, However, laid down and they prescribed the circumstances which were to be taken into consideration before 183 such determination was made by the Wage Board. Ratio |
One of the essential considerations was the capacity of the industry to pay and that was comprised within the category " the circumstances relating to newspaper industry in different regions of the country ". Ratio |
It remains to consider, however, whether the Wage Board really understood this category in that sense and in fact applied its mind to it. Ratio |
At its preliminary meeting held on May 26, 1956, the Board set up a SubCommittee to draft a questionnaire to be issued to the various journals and organisations concerned, with a view to eliciting factual data and other relevant information required for the fixation of wages. Ratio |
The Sub committee was requested to bear in mind the need inter alia for 'proper classification of the country into different areas on the basis of certain criteria like population, cost of living, etc. Ratio |
This was the only reference to this requirement of section 9(1) and there was no reference herein to the capacity of the industry to pay which we have held was comprised therein. Ratio |
The only question in the questionnaire as finally framed which had any reference to this criterion was Question No. 7 in Part " A " under the heading " Special Circumstances " and that question was: " Are there in your regions any special conditions in respect of the newspaper industry which affect the fixing of rates ... |
The Wage Board no doubt asked for detailed accounts of newspaper establishments and also required information which would help it in the proper evaluation of the nature and quality of work of various categories of working journalists, but the capacity of the industry to pay which was one of the essential considerations... |
The answers to Question No. 7 as summarized by the Wage Board no doubt referred in some cases to the capacity 184 of the industry to pay but that was brought in by the newspaper establishments themselves who answered the question in an incidental manner and could not be said to be prominent in the minds of the parties ... |
It is pertinent to observe that even before the Press Commission the figures had disclosed that out of 127 newspapers 68 had been running into loss and 59 with profits and there was an overall profit of about 1% on a capital investment of seven crores. Ratio |
The profit and loss accounts and the balance sheets of the various companies owning or controlling newspaper establishments were also submitted before the Wage Board but they had so far as they went a very sorry tale to tell. Ratio |
The profit and loss statements for the year 1954 55 revealed that while 43 of them showed profits 40 had incurred losses. Ratio |
Though no scientific conclusion could be drawn from this statement it showed beyond doubt that the condition of the newspaper industry as a whole could not be considered satisfactory. Ratio |
Under these circumstances, it was all the more incumbent upon the Wage Board even though it discounted these profit and loss statements as not necessarily reflecting the true financial position of these newspaper establishments, to consider the question of the capacity of the industry to pay with greater vigilance. Rat... |
There was again another difficulty which faced the Wage Board in that behalf and it was that out of 5,705 newspapers to whom the questionnaire was addressed only 312 or at best 325 had responded and the Wage Board was in the dark as to what was the position in regard to other newspaper establishments. Ratio |
As a matter of fact, the chairman in his note dated April 30, 1957, himself pointed out that the Wage Board had no data before it of all the newspapers and where it had, that was in many cases not satisfactory. Ratio |
This aspect was again emphasized by him in his note when he reiterated that the data available to the Wage Board had not been as complete as it would have wished them to be and therefore recommended in the end the establishment of a standing administrative machinery which would collect from all newspaper 185 establishm... |
The Wage Board, in fact, groped in the dark in the absence of sufficient data and information which would enable it to come to a proper conclusion in regard to the wage structure which it was to determine. Ratio |
In the absence of such data and materials the Board was not in a position to work out what would be the impact of its proposals on the capacity of the industry to pay as a whole or even region wise and the chairman in his note stated that it was difficult for the Board at that stage to work out with any degree of preci... |
Even with regard to the impact of these proposals on individual newspaper establishments the chairman stated that the future of the Indian language newspapers was bright, having regard to increasing literacy and the growth of political con sciousness of the reading public, and by rational management there was great sco... |
This was again a note of optimism which does not appear to have been justified by any evidence on the record. Ratio |
Even though, the Wage Board classified the newspaper establishments into 5 classes from " A " to " E " on the basis of their gross revenue the proportion of the advertisement revenue to the gross revenue does not appear to have been taken into consideration nor was the essential difference which subsisted between the c... |
If this had been done, the basis of gross revenue which the Wage Board adopted would have been modified in several respects. Ratio |
The grouping of the newspapers into chains or multiple units implied that the weaker units in those groups were to be treated as on a par with the stronger units and it was stated that the loss in the weaker units would be more than compensated by the profits in the more prosperous units. Ratio |
The impact of these proposals on groups of newspapers was only defended on principle without taking into consideration the result which they would have on the working of the weaker units. Ratio |
Here also the Chairman expressed the opinion that the Board was conscious that as a result of its decision, some of the journalists in the weaker units of the same group or chain may get much more than those working in its highest income units. Ratio |
He however stated that if the principle was good and scientific, the inevitable result of its application should be judged from the stand point of Indian Journalism as a whole and not the burden it casts on a particular establishment. Ratio |
It is clear therefore, that this principle which found favour with the Wage Board was sought to be worked out without taking into consideration the burden which it would impose upon the weaker units of a particular newspaper establishment. Ratio |
The representatives of the employers objected to the fixation of scales of wages on the plea that fixation of rates of wages did not include the fixation of scales of wages. Ratio |
This contention was negatived by the representatives of the employees as also by the Chairman and the Wage Board by its majority decision accepted the position that it could, while fixing the rates of wages also fix the scales of wages. Ratio |
The Press Commission itself had merely suggested a basic minimum wage for the consideration of the parties concerned but had suggested that so far as the scales of wages were concerned they were to be settled by collective bargaining or by adjudication. Ratio |
Even though the Wage Board took upon itself the burden of fixing scales of wages as really comprised within the terms of their reference, it was incumbent upon it to consider what the impact of 187 the scales of wages fixed by it would be on the capacity of the industry to pay. Ratio |
There is nothing on the record to suggest that both as regards the rates of wages and the scales of wages which it determined the Wage Board ever took into account as to what the impact of its decision would be on the capacity of the industry to pay either as a whole or region wise. Ratio |
There is, however, a further difficulty in upholding the decision of the Wage Board in this behalf and it is this that even as regards the fixation of the rates of wages of working journalists the Wage Board does not seem to have taken into account the other provisions of the Act which conferred upon the working journa... |
These provisions were bound to have their impact on the paying capacity of the newspaper establishments and if these had been borne in mind by the Wage Board it is highly likely that the rates of wages including the scales of wages as finally determined might have been on a lesser scale than what one finds in its decis... |
This difficulty becomes all the more formidable when one considers that the working journalists only constituted at best one fifth of the total staff employed in the various establishments. Ratio |
The rest of the 80% comprised persons who may otherwise be described as factory workers who would be able to ameliorate their conditions of service by having resort to the machinery under the . Ratio |
If the conditions of service of the working journalists were to be improved by the Wage Board the other employees of newspaper establishments were bound to be restive add they would certainly, at the very earliest opportunity raise industrial disputes with a view to the betterment of their conditions of service. Ratio |
Even though the Industrial Courts established under the , might not give them relief commensurate with the relief which the Wage Board gave to the working journalists, there was bound to be an improvement, in their conditions of service which the Industrial Court would certainly determine having regard to the benefits ... |
This consideration also was necessarily to be borne in mind by the Wage Board in arriving at its final decision and one (foes not find anything on the record which shows that it was actually taken into consideration by the Wage Board. Ratio |
The retrospective operation of the. Ratio |
decision of the Wage Board was also calculated to impose a financial burden on the newspaper establishments. Ratio |
Even though this may be a minor consideration as compared with the other considerations above referred to, it was none the less a circumstance which the Wage Board ought to have considered in arriving at its decision in regard to the fixing of rates of wages. Ratio |
The financial burden which was imposed by the decision of the Wage Board was very vividly depicted in the statements furnished to us on behalf of the petitioners in the course of the hearing before us. Ratio |
These statements showed that the wage bill of these newspaper establishments was going to be considerably increased, that the retrospective operation of the decision was going to knock off a considerable sum from their reserves and that the burden imposed upon the newspaper establishments by the joint impact of the pro... |
to retrenchment compensation, payment of gratuity, hours of work and leave as well as the decision of the Wage Board in regard to the fixing of rates of wages and the scales of wages would be such as would cripple the resources of the newspaper establishments, if not necessarily lead to their complete extinction. Ratio |
These figures have been given by us in the earlier 189 part of our judgment and we need not repeat the same. Ratio |
The conclusion, however, is inescapable that the decision of the Wage Board imposed a very heavy financial burden on the newspaper establishments, which burden was augmented by the classification on the basis of gross revenue, fixation of scales of wages, provisions as, regards the hours of work and leave, grouping of ... |
If these proposals had been circulated, before being finalized, by the Wage Board to the various newspaper establishments so that these newspaper establishments could, if they so desired, submit their opinions thereupon and their representations, if any, in regard to the same to the Wage Board for its consideration and... |
The Wage Board, however, did nothing of the type. Ratio |
Proposals were exchanged between the representatives of the employers and the representatives of the employees. Ratio |
The discussion that the chairman had with each set of representatives did not bear any fruit and the chairman himself by way of mediation, as it were, submitted to them his own proposals presumably having regard to the different points of view which had been expressed by both these parties. Ratio |
The decision in regard to the scales of wages, was, as we have seen before, a majority decision which was not endorsed by the representatives of the employers. Ratio |
The proposals of the chairman also were not acceptable to the representatives of the employers but the representatives of the employees accepted them and they thus became the majority decision of the Wage Board. Ratio |
The ultimate decision of the chairman on those points does not appear to have been the result of any consideration of the capacity of the industry to pay as a whole or region wise but reflects a compromise 190 which he brought about between the diverse views but which also was generally accepted only by the representat... |
We are supported in this conclusion by the observations of the chairman himself in the note which he made simultaneously with the publication of the decision on April 30, 1957, that it was difficult for the Wage Board at that stage to work out with any degree of precision, the economic and other effects of the decision... |
An attempt was made on behalf of the respondents in the course of the hearing before us to shew that by the conversion of the currency into naye pyse and the newspapers charging to the public higher price by reason of such conversion, the income of several newspapers had appreciably increased. Ratio |
These figures were, however, controverter on behalf of the petitioners and it was pointed out that whatever increase in the revenue was brought about by reason of this conversion of price into naye pyse was more than offset by the fall in circulation, ever rising price of newsprint and the higher commission, etc., whic... |
The figures as worked out need not be described here in detail; but we are satisfied that the conversion of the price into naye pyse had certainly not the effect which was urged and did not add to the paying capacity of the newspaper establishments. Ratio |
The very fact that the Wage Board thought it necessary to express a pious hope that if there is a good paper and it deserves to exist, the Government and the public will help it to continue, and also desired the interests which it felt had been hit hard by its decision not to pass judgment in haste, but to watch, the e... |
The chairman urged upon the Government of India 191 the desirability of creating immediately a standing administrative machinery which could also combine in itself the functions of implementing and administering its decision and that of preparing the ground for the review and revision envisaged after 3 to 5 years. Rati... |
This was again a, pious hope indulged in by the Wage Board. Ratio |
It was not incumbent on the Government to fulfill that expectation and there was no knowing whether the Government would ever review or revise the decision of the Wage Board at the expiration of such period. Ratio |
We have carefully examined all the proceedings of the Wage Board and the different tables and statements prepared by them. Ratio |
Neither in the proceedings nor in any of the tables do we see satisfactory evidence to show that the capacity of the industry to pay was examined by the Board in fixing the wage structure. Ratio |
As we have already observed, it was no doubt open to the Board not to attach undue importance to the statements of profit and loss accounts submitted by various newspaper establishments, but, since these statements prima facie show that the trade was not making profit it was all the more necessary for the Board to sati... |
Industrial adjudication is familiar with the method which is usually adopted to determine the capacity of the employer to pay the burden sought to be imposed on him. Ratio |
If the industry is divided into different classes it may not be necessary to consider the capacity of each individual unit to pay but it would certainly be necessary to consider the capacity of the respective classes to bear the burden imposed on them. Ratio |
A cross section of these respective classes may have to be taken for careful examination and all relevant factors may have to be borne in mind in deciding what burden the class considered as a whole can bear. Ratio |
If possible, an attempt can also be made, and is often made, to project the burden of the wage structure into two or three succeeding years and determine how it affects the financial position of the employer. Ratio |
The whole of the 192 record before the Board including the chairman 's note gives no indication at all that an attempt was made by the Board to consider the capacity of the industry to pay in this manner. Ratio |
Indeed, the proceedings show that the demands made by the representatives of the employees and the concessions made by the employers ' representatives were taken as rival contentions and the Chairman did his best to arrive at his final decision on the usual basis of give and take. Ratio |
In adopting this course, all the members of the Board seem to have lost sight of the fact that the essential prerequisite of deciding the wage structure was to consider the capacity of the industry to pay and this, in our opinion, introduces a fatal infirmity in the decision of the Board. Ratio |
If we had been satisfied that the Board had considered this aspect of the matter, we would naturally have been reluctant to accept any challenge to the validity of the decision on the ground that the capacity to pay had not been properly considered. Ratio |
After all, in cases of this kind where special Boards are set up to frame wage structures, this Court would normally refuse to constitute itself into a court of appeal on questions of fact; but, in the present case, an essential condition for the fixation of wage structure has been completely ignored and so there is no... |
Re. 9. Ratio |
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