The principles of natural justice require stakeholder participation in wage fixation processes, and failure to include employers renders the decision arbitrary.

JUDGMENT :

N.V. Anjaria, C.J., K.V. Aravind, J.

In all the captioned appeals, 52 in numbers, not only common facts and identical issues are involved, also all the appellants have challenged the same judgment and order of learned Single Judge dated 26th September 2023 passed in writ petition No.3632 of 2023. Therefore, all the appeals which were heard together, are treated simultaneously by this common order for their disposal.

2. Similarly as in the case of first captioned writ appeal No.23 of 2024 where the appellant is an association of employers registered as Trade Union under the Trade Unions Act, 1926, in all other appeals also the appellants are employers or the association of employers representing the employers. All these appellants were not party to the main proceedings of writ petition decided by learned Single Judge. The respective applications filed by them for leave to appeal were granted by this Court as per order dated 2nd August 2004 and they were permitted to prosecute their appeals.

2.1 As per the impugned judgment and order which is a common challenge, learned Single Judge set aside Notification dated 28th July 2022 issued by the Government under Section 3(1)(b) read with Section 5(1)(b) of the Minimum Wages Act, 1948, whereby the minimum rates of wages for the employments in the Foundry-with or without machine shop, came to be revised.

2.2 After setting aside the said Notification, learned Single Judge directed thus,

“The respondent shall redo the Notification impugned in the writ petition following strictly the procedure and norms fixed by the Hon’ble Apex Court in the case of Reptakos Brett in determining the rates of wages. The redone Notification will be given effect from 28th July 2022.”

2.3 The Government was directed to complete the entire process within an outer limit of two months.

3. Before adverting to the controversy, the case in the original petition filed by two Trade Unions of the employees namely All India Trade Union Congress (R), Karnataka State Committee, and Engineering & General Works Union, Bengaluru, may be noticed in brief. The prayer was advanced by the said employees Unions to set aside the abovementioned Notification dated 28th July 2022 fixing the rates of minimum wages for the workers in accordance with guidelines prescribed by the Hon’ble Supreme Court in Workmen vs. Reptakos Brett & Co. Ltd. [(1992) 1 SCC 290].

3.1 It was contended inter alia that both the petitioner Unions were concerned in relation to the fixation of rates of minimum wages for their member workers in the scheduled employments, that the fixation of rates of minimum wages is of statutory character and that guidelines are prescribed by the Supreme Court in Reptakos Brett (supra). Section 3 of the Minimum Wages Act, 1948 (hereinafter ‘the Act’), deals with fixation of new rates of wages and Section 4 which is about minimum rate of wages, came to be relied on, to submit that the provisions thereof would cover fixation of minimum rates of wages for the first time as well as periodical review thereof.

3.2 With regard to the challenge to the Notification dated 28th July 2022, it was the case sought to be elaborated by the petitioners that the rates of minimum wages proposed in the draft Notification did not have scientific or realistic basis and that no data was collected from the market survey in respect of food items essential for calorie requirements. It was contended that the revision of rates of minimum wages by adding 5% to 10% over the rates fixed in the earlier Notification of 2015-16 was unacceptable and was arbitrary, contending further that the principles stated in Reptakos Brett (supra) were not followed while issuing Notification.

3.3 At this stage, the decision in Reptakos Brett (supra) of the Supreme Court may be noticed. The said decision arose from the decision of the Industrial Tribunal. The Reptakos Brett & Company Limited was engaged in the manufacture of pharmaceutical and dietetic spe