5.

Category-D employees

2182

10. 50

2182/411 = 5. 30

5. 20

198. 11

6.

Category-E employees

2020

10. 50

2020/411=4. 91

5. 59

213. 84

category of Employee basic Pay fixed under G. 0. 53 cl. Aat rates fixed in the G. O. 53 (Per point increase above 411 points subject to a limitation FRs. 10. 50ps claper point at rates calculated as per the formula applied by this Hon'ble Court in Writ Petition No. 9248/91 for 100% neutralization difference of Column 4 and 5 percentage of neutralization under G. O. 53

( 33 ) SRI Srinivas basing on the above chart contended that as the chart shows that the increase of neutralization of VDA is more than 100% in respect of all six (6) categories of employees, such increase cannot be sustained in view of the judgment of the Supreme Court in Shri Chalthan vibhag Khand Udyog Sahakari Mandali Limited (supra 1) and the Judgments of the karnataka, Maharashtra and Gujarat High court in Aspinwal and Co. Ltd. v. State of karnataka, in Sangli Distt. Powerloom owners' Association Ltd. v. State of maharashtra and in Sanrashtra Paper and board Mills Pvt. Ltd. , v. State of Gujarat. The correctness of the calculation as reflected in the above extracted chart is hotly contested by the Government as was as the 2nd respondent union. In the additional counter- affidavit filed on behalf of the Government, it is contended that the increase of neutralization of VDA works out to 33% only. Similarly, Sri Vidya Sagar, in the course of his submission before us on behalf of the 2nd respondent-trade union sought to show the wrong calculation made by the petitioner-Association. In paras (5), (6) and (7) of the additional counter-affidavit filed on behalf of the Government, it is stated thus:"5. It is pertinent to note that the last revision of minimum wages in the employment of Hotels, Restaurants and Eating Houses was made vide g. O. Ms. No. 89, Women Development, child Welfare and Labour (Lab. II) department, dated 25-5-1991. When the minimum wages were fixed in g. O. Ms. No. 89, the CPI numbers were neutralized at 186 points (base 1982- 100 ). In the year 1998, when the Draft notification was issued vide g. O. Rt. No. 599, Labour, Employment, training and Factories (Lab. II) department, dated 23-3-1998, the wages were proposed neutralizing the consumer Price Index numbers at 309 points. This Draft Notification was placed before the A. P. State Minimum wages Advisory Board in its 13th meeting held on 27-6-2000 for its recommendations. By that time the existing CPI is at 411 points i. e. , there is an increase of 102 points and the same shall be taken into consideration for fixing the special allowance. It is pertinent to note that by virtue of g. O. Ms. No. 36, dated 15-3-1989 and g. O. Ms. No. 37, dated 15-3-1989, the workmen are entitled to draw special allowance in accordance with the VDA notifications issued periodically by the commissioner of Labour, basing on the Industrial Workers C. P. I, numbers. Thus, the workmen have already been drawing special allowance up to 411 points (i. e. , from 186 points to 411 points on the existing G. O. Ms. No. 89, dated 25-5-1991) by June 2000 basing on the relevant C. P. I, numbers. The minimum Wages Advisory Board recommended 20% increase on draft wages at 309 points i. e. , taking into consideration the C. P. I. number as on 23-3-1998. 6. It is submitted that when the Board suggested 20% increase over the draft wages, the Board wanted that the neutralization of C. P. I, numbers should be at 309 points. If the same was implemented, it would result in decrease of wages since the VDA at c. P. I numbers 411 points has already been allowed to the workmen In the circumstances, it is felt that it is not in the interest of the workmen and, therefore, Government while issuing final notification took into consideration the latest C. P. I, numbers at 411 points. The difference of 309 points and 411 points comes to 102 points and it constitutes the increase of 33% of VDA above the draft