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AITUC V State of Karnataka (Supporting Judgements)

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13 views2 pages

AITUC V State of Karnataka (Supporting Judgements)

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2182053
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 ABP (P) LTD. v. UNION OF INDIA (Sathasivam, C.

J) 2014 SCC
64. This Court has a limited jurisdiction to look into this aspect.The interference is allowed to a
limited extent to examine the question as to whether the Wage Board has considered the capacity to
pay of the news c agencies. It would be inapposite for this Court to question the decision of the
specialised Board on merits especially when the Board was constituted for this sole purpose.
71. It is useful to refer Section 12 of the Act which deals with the powers of the Central Government
to enforce recommendations of the Wage Board It reads as under:

12. Powers of Central Government to enforce recommendations of the Wage Board (1) As soon as
may be, after the receipt of the recommendations of the Board, the Central Government shall make an
order in terms of the recommendations or subject to such modifications, if any, as it thinks fit, being
modifications which, in the opinion of the Central Government, do not effect important alterations in
the character of the recommendations.

(2) Notwithstanding anything contained in sub-section (1), the Central Government may, if it thinks
fit-

(a) make such modifications in the recommendations; not being modifications of the nature referred to
in sub-section (1), as it thinks fit: Provided that before making any such modifications, the Central
Government shall cause notice to be given to all persons likely to be affected thereby in such manner
as may be prescribed, and shall take into account any representations which they may make in this
behalf in writing: or

(b) refer the recommendations of any part thereof to the Board, in which case, the Central
Government shall consider its further recommendations and make an order either in terms of the
recommendations or with such modifications of the nature referted to in sub-section (1) as it thinks fit.

(3) Every order made by the Central Government under this sectionshall be published in the Official
Gazette, together with the recommendations of the Board relating to the order and the order shall
come into operation on the date of publication or on such date, whether prospectively, or
retrospectively, as may be specified in the order."

72. Thus, it is the prorogative of the Central Government to accept or reject the recommendations of
the Wage Boards. There is no scope for hearing the parties once again by the Central Government
while accepting or modifying the recommendations, except that the modifications are of such nature
which alter the character of the recommendations and such modification is likely to affect the parties.
The mere fact that in the present case, the Government has not accepted recommendations will not
automatically affect the validity the entire Report.
73.Accordingly, we hold that the recommendations of the Wage Boards are valid in law, based on
genuine and acceptable considerations and there is no valid ground for interference under Article 32
of the Constitution of India.
 Federation of Okhla Industrial Association (Regd.) Petitioner;
Versus
Lt. Governor of Delhi and Another … Respondents.
VI. The appropriate government is required to take into account the report and advice rendered by the
Committee/Advisory Board and to apply independent mind and take a balanced decision so far as
fixation or revision of minimum wages is concerned. The Government is not bound by the
recommendations of the Committee. It is open to the Government to accept (wholly or in part) or to
reject the advice of the Board or report of the Committee.

 Report of the Expert Committee on Determining the Methodology


for Fixing the National Minimum Wage
Supreme Court of India (1992)
2.36 Furthermore, the Supreme Court (SC) of India, in the historic Workmen v. Reptakos Brett & Co.
judgment handed down in 1992, suggested that the need-based norms established by the 15th Session
of the ILC (1957) should be considered for calculating the minimum wage, and that other additional
components be included (i.e. children’s education, medical requirements, minimum recreation
including festivals/ceremonies and contingencies such as old age and marriage). These consumption
items should account for 25 per cent of the total minimum wage.
2.37 Apart from its contribution to the determination of minimum wages, the SC, through its various
judicial pronouncements, has played an important role in shaping the wage policy in India. Significant
cases in this respect include the Crown Aluminum Works v. their Workmen (1958), Kamani Mehta
and Alloys v. the Workmen (1967) and People’s Union for Democratic Rights v. the Union of India
(1982). In these cases, the SC ruled that the concept of minimum wages, which are determined by
applying the principle of the subsistence minimum to ensure the sustenance of workers, is a worker’s
legal right. The SC further pronounced that no industry has a right to exist unless it is able to pay its
workmen at least a bare minimum wage (Crown Aluminum Works v. their Workmen, 1958), and that
employment at wages below the minimum wage is forced labour (People’s Union for Democratic
Rights v. Union of India, 1982).

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