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Incidentally the method of multiplying the figure deduced by the Committee by 3.5 is materially defective. Ratio |
The proper approach to adopt would be to evaluate each constituent of the concept of the living wage in the light of the prices prevailing today and thus reach a proper conclusion ; but apart from it, the main objection against adopting the figure reached by the Committee is that even in 1940 the said figure could not ... |
The object with which the Committee proceeded to hold its enquiry was in a sense negative; it was to determine the question as to how far the prevailing wages were deficient having regard to some reasonable concept of a living wage standard. Ratio |
The material before it was insufficient to determine satisfactorily the money content of the said concept and the Committee itself was conscious that its calculations were bound to be broad and general and conditioned by the data available to it, and what is more important conditioned by the notions of social justice t... |
Since 1940 the concept of social justice has made very great progress and the Constitution of the country has now put a seal of approval on the ideal of a welfare State. Ratio |
Besides, it may seem entirely unrealistic to talk of a living wage in the light of our national economy in 1940 and to evaluate its content at Rs. 50 to Rs. 55 per month. Ratio |
It is obvious that the Committee was really thinking of what is today described 555 as the minimum need based wage, and it found that judged by the said standard the current wages were deficient. Ratio |
In its report the Committee has used the word " minimum " in regard to some of the constituents of the concept of living wage, and its calculations show that it did not proceed beyond the minimum level in respect of any of the said constituents. Ratio |
Therefore, though the expression ',living wage standard" has been used by the Committee in its report we are satisfied that Rs. 50 to Rs. 55 cannot be regarded as anything higher than the need based minimum wage at that time. Ratio |
If that be the true position the whole basis adopted by the appellant in making its calculations turns out to be illusory. Ratio |
All that the calculations made by the appellant would show is that the wages paid to the respondents are somewhat higher than what would be required by the concept of the need based wage. Ratio |
It is obvious that between the need based wage and the living wage there is a very long distance. Ratio |
This conclusion is strengthened by some of the observations made by the Commission of Enquiry on " the Emoluments and Conditions of Service of Central Government Employees ". Ratio |
In its report the Commission has referred to the Tripartite resolution on the need based minimum wage, and in the light of the exhaustive material produced before it, and after consulting experts and specialists whose advice was available to it, it has reached the conclusion that (a) the minimum remuneration worked out... |
We may incidentally add that having regard to its terms of reference the Commission did not feel it advisable to recommend the increase of the Central employees ' wages to the level of the need based minimum for reasons set out by it in its report. Ratio |
That is why it thought it reasonable to recommend that " the minimum remuneration payable to a Central employee which at present is Rs. 75 per mensem should be increased to Rs. 80 per mensem (p. 74). Ratio |
Reverting to the components of the concept of the living wage once again it may be relevant to observe that the principal component of the dietary requirements of a workmarn 's family is generally examined in the light of Dr. Aykroyd 's formula According to Dr. Aykroyd "in dealing with diet it is well to remember the d... |
An optimum diet is one which ensures for the functioning of the various life processes at their very best, whereas an adequate diet maintains these processes but not at their peak levels. Ratio |
Dr. Aykroyd, however, took the view that having regard to our national economy even an adequate or balanced diet may not be within the reach of every one, and so he observed that " it would be wise to effect a compro. Ratio |
mise by temporarily sacrificing the ideal to the necessity of making the improvement economically possible. Ratio |
" With this object he has tabulated the requirements of the improved diet which contains the (1) Health Bulletin No.23 The Nutritive Value of Indian Foods and the Planning of satisfactory Diets By Dr. Aykroyd and revised by Dr. V. N. Patwardhan Published by the Nutrition Research Laboratories, Indian Council of Medical... |
557 essential nutrients but which would not be as costly as the balanced diet. Ratio |
Now there can be no doubt that in dealing with the monetary value of the content of the concept of the living wage it would not be enough to evaluate the diet requirement with reference to the improved or even the balanced diet. Ratio |
The improved vegetarian diet which has generally been taken into account in making the relevant calculations would be wholly inappropriate in making calculations with regard to a living wage. Ratio |
Under the living wage a workman would be entitled to claim an optimum diet as prescribed by Dr. Aykroyd. Ratio |
Similarly, the requirements as to clothing and residence which have been recognised in the Tripartite resolution, though appropriate in reference to a need based minimum wage, would have to be widened in relation to a living wage. Ratio |
Besides, in determining the money value of the living wage it would be necessary to take into account the requirements of "good education for children, some amusement, and some expenditure for self development ", and it is hardly necessary to emphasise that the content of these requirements cannot be easily converted i... |
In this connection it may be pertinent to observe that in deciding the question as to whether the living wage has been introduced by any employer normally it would be necessary to examine the wage structure paid to the relevant working class as a whole. Ratio |
It is well established that the claim for bonus is recognised on the basis of the contribution made by the working class as a whole to the profits of the employer, and we think it would be invidious, and on principle unreasonable, to isolate 558 a few cases where higher wages may be paid and to claim immunity from the ... |
In the absence of special circumstances prima facie the most expedient method to adopt would be to take the average of the wages paid to the relevant working class as a whole. Ratio |
It is, however, unnecessary to pursue this matter further and to pronounce a definite decision on it because, as we have just indicated, even taking the clerical category where the average works highest at Rs. 370.11 nP. we feel no hesitation in holding that the said average is much below the standard living wage. Rati... |
The said average is much above the need based minimum and may fall in the medium level of a fair wage; but that itself would show that it is much below the standard of the living wage. Ratio |
Similarly, Rs. 273.65 nP. which is the average of the operatives as well as Rs. 301.16 nP. which is the average of the operatives and the clerical staff taken together may be regarded as constituting wage structure which is above the need based minimum structure and may be treated as approximating to the lower level of... |
One has merely to take into account the various constituent elements of the living wage to realise that these averages fall far short of the standard of the living wage. Ratio |
In reaching such a conclusion it is hardly necessary first to arrive at a concrete determination as to the money value of the living wage. Ratio |
In our opinion, taking the broad aspect of the concept of the living wage into consideration, and bearing in mind its idealistic and expanding character, it would be possible, and not very difficult either, to say about a given wage such as the one with which we are concerned in the present appeal that it does not reac... |
We must accordingly hold that the claim made by the appellant that it is paying a living wage to its employees cannot be sustained. Ratio |
It still remains to consider some of the decisions to which our attention was invited. Ratio |
In Standard Vacuum Oil Company. Ratio |
In that connection the tribunal referred to the Textile Committee 's report and assumed that Rs. 50/ to Rs. 55/ , that is to say, on an average Rs. 52 8 0 represented the money value of a living wage in 1940. Ratio |
On that assumption the tribunal made certain calculations and held that its" award may be regarded as the first approximation towards attaining the living wage standard. Ratio |
The learned Attorney General has relied on this decision in support of his argument that the basis supplied by the Textile Committee 's report was treated as valid for the pur pose of determining the money value of the living wage. ARG |
For the reasons which we have already indicated we must hold that the tribunal was in error in treating Rs. 52 8 0 as the money value of the living wage even in 1940. Ratio |
The same comment falls to be made about the calculations made by the Labour Appellate Tribunal in Burmah Shell, etc., Oil Companies in Madras vs Their Employees (1). PRE |
In that case the Appellate Tribunal thought that if 50% be added to the minimum wage of the employees that may assist them to attain the goal of the living wage, and this conclusion was based on the Textile Committee 's report. PRE |
Similarly, the calculations made by the Industrial Tribunal, Madras, in Workers of section V. O. C. Ltd. (Standard Vacuum Employees ' Union) vs Standard Vacuum Oil Co. Ltd. (2), suffers from the same infirmity. PRE |
Therefore, the three industrial decisions on which the appellant relied cannot assist it in establishing its contention that a living wage is paid to the respondents. Ratio |
In Burmah Shell Oil Storage and Distributing Co. of India, Ltd., Bombay vs Their Workmen (3) the Labour Appellate Tribunal had occasion to consider the content of the living wage. PRE |
In that connection it referred to the Report of the Fair Wages Committee, and observed that the level of national income in India is so low that the country is unable to afford to prescribe by law a minimum wage which would correspond to the concept of a living wage. Ratio |
" The rudder is set in (1) (2) (3) , 72 560 the direction of a living wage", observed the Appellate Tribunal, " but the destination is not yet within sight; the gradual emergence of a welfare State will naturally help but even here progress is necessarily slow ". Ratio |
In our opinion, this statement shows the correct approach to the problem of determining the content of the concept of the living wage. Ratio |
In Standard Vacuum Oil Company vs Their Employees (1) the Labour Appellate Tribunal was called upon to consider the plea that the companies were paying a living wage to their employees. PRE |
In dealing with the said contention the Appellate Tribunal observed that "the measurement of the living wage standard in terms of money has not been prescribed by law of the country, nor, as far as we are aware, has been determined anywhere in any scientific basis ". Ratio |
In its opinion, it was not possible nor necessary to fix the amount with exactitude which should form the minimum living wage after an exhaustive enquiry for considering the question of bonus, because, according to the principle laid down the whole gap between the existing wages and the living wage need not be filled u... |
That is why it thought that it would be sufficient for the purpose if an approximate idea can be formed by taking into account the approximate expenditure on the necessary items of requirements of the living wage standard. Ratio |
On these considerations the plea raised by the companies was rejected. Ratio |
It would thus be seen that the oil companies have been persistently making the claim before the industrial tribunals that they need not be called upon to pay bonus to their employees on the ground that they are paying them a living wage, and this plea has so far been consistently rejected. Ratio |
As we have already pointed out it may partly be because of this trend of industrial decisions that in the present proceedings the tribunal did not think it necessary to deal with the point elaborately or to make a definite finding. Ratio |
Before we part with this appeal we ought to add that if we had upheld the appellant 's claim it would have been necessary for us to consider the relevance (1) 561 and validity of the respondents ' alternative claim that in case living wage is paid by the appellant to them they should be allowed a share in the profits m... |
It is true that industrial adjudication so far has consistently emphasised the fact that the payment of bonus is intended to fill the gap between actual wages and the living wage. Ratio |
Obviously no occasion has so far arisen to consider whether a claim for bonus can be made even after the standard of living wage has been attained because no employer has so far succeeded in showing that a living wage standard has been reached. Ratio |
We are making these observations because we wish to make it clear that our decision in the present appeal should not be taken to mean that as soon as a living wage standard is reached no claim for bonus can be made by the workmen; that is a question which may have to be considered on its merits if and when it arises. R... |
Until the stage is reached where a plea that living wage is paid can be reasonably made and proved it is desirable that industrial adjudication in regard to the payment of bonus should not be unnecessarily complicated by raising such a plea from year to year. Ratio |
That takes us to the appeal preferred by the respondents. Ratio |
The tribunal did not think it necessary to work out calculations because, according to the bonus formula, it was conceded that the available surplus in the hands of the appellant was very large. Ratio |
It, however, took into account the wage scales and salaries in the appellant 's concerns and other relevant factors and concluded that awarding five months ' bonus " strikes a fair balance between the conflicting standards of the workmen and the company ". Ratio |
Mr. Gokhale contends that five months ' bonus is too meagre and that the respondents were entitled to a much higher rate of bonus. ARG |
On the other hand the learned Attorney General contends that we should put a ceiling in the matter of awarding bonus so that excessive claims for bonus would be discouraged. ARG |
In our opinion it would be inadvisable and inexpedient to put such a ceiling in the matter of awarding bonus. Ratio |
562 It is now well established that in awarding bonus industrial adjudication has to take into account the legitimate claims of the industry, its shareholders who are entitled to claim a return on the investment made by them and the workmen. Ratio |
This Court has consistently refused to lay down any rigid rule or formula which would govern the distribution of the available surplus between the three claimants. Ratio |
The decision of this question must inevitably depend on a proper assessment of all the relevant facts. Ratio |
If wages are small and the profits are high then the workmen would be entitled to have a high rate of bonus. Ratio |
Indeed, if an employer makes consistently high profits and the wages continue to be low it may justify the increase in the wage structure itself ; in other words, the award of bonus would have some relation to the wages paid to the employees. Ratio |
It is also true that unreasonably high or extravagant claims for bonus cannot be entertained just because the available surplus would justify such a claim. Ratio |
As has been observed by the Labour Appellate Tribunal in Burmah Shell Oil Storage and Distributing Co. of India Ltd., Bombay vs Their Workmen (1) care must be taken to see that the bonus which is given is not so excessive as to create fresh problems in the vicinity that upset emoluments all round or that it creates ind... |
The impact of the award of bonus in an industrial dispute on comparable employments or on other employments in the region cannot be altogether ignored, though its effect should not be over estimated either. Ratio |
Having regard to the fact that the distribution of available surplus must inevitably depend in each case on its own facts this Court has generally refused to interfere with the decision of the tribunal on the ground that any decision on the question of distribution should be left to its discretion. Ratio |
In the present case the (1) 563 tribunal has considered all the relevant factors and has come to the conclusion that five months ' bonus would meet the ends of justice. Ratio |
We do not see any reason to interfere with this award. Ratio |
In the result both the appeals fail and are dismissed. RPC |
There will be no order as to costs in both the appeals. RPC |
Appeals dismissed. RPC |
Appeal No. 490 of 1957. FAC |
Appeal from the judgment and decree dated March 22,1954, of the Allahabad High Court in Civil Misc. FAC |
Writ No. 7854 of 1951. FAC |
G. section Pathak, section N. Andley, J. B. Dadachanji, Rameshwar Nath and P. L. Vohra, for the appellant. FAC |
C. B. Agarwala, G. C Mathur and C. P. Lal, for respondents Nos. 1 and 3. FAC |
March 6. FAC |
The Judgment of section K. Das, M. Hidayatullah, J. C. Shah and N. Rajagopala Ayyangar, JJ. was delivered by J. C. Shah, J. K. C. Das Gupta, J. delivered a separate, Judgment. FAC |
SHAH, J. FAC |
In 1981, the appellant was admitted to the police force of the United Provinces and was appointed a Sub Inspector of Police. FAC |
He was later promoted to the rank of Inspector, and in 1946 was transferred to the Anti corruption department. FAC |
In 1947, he was appointed, while retaining his substantive rank of Inspector, to the officiating rank of Deputy Superintendent of Police. FAC |
Shortly thereafter, complaints were received by the Chief Minister and Inspector General of Police ' U. P. charging the appellant with immorality, corruption and gross dereliction of duty. FAC |
In a preliminary confidential enquiry, the Inspector General of Police came to the conclusion that "a prima facie case" was made out against the 20 154 appellant. FAC |
He then directed that a formal enquiry be held against the appellant and passed orders reverting the appellant to his substantive rank of Inspector and placing him under suspension. FAC |
An enquiry was held into the conduct of the appellant by the Superintendent of Police, Anti corruption department. FAC |
The report of the Superintendent of Police was forwarded to the Government of U. P., and the Governor acting under r. 4 of the Uttar Pradesh Disciplinary Proceedings (Administrative Tribunal) Rules, 1947 herein after called the Tribunal Rules referred the case for enquiry to a Tribunal appointed under r. 3 of the Tribu... |
The Tribunal framed three charges against the appellant, and after a detailed survey of the evidence recommended on February 4, 1950, that the appellant be dismissed from service. FAC |
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