IN THE HIGH COURT OF KERALA AT ERNAKULAM
A.K. JAYASANKARAN NAMBIAR, J.
All Kerala Plywood & Block Board Manufacturers' Association – Petitioner
Versus
State of Kerala Rep. by Secretary, Labour & Skilled Department and Others – Respondents
WP (C) No. 11991 of 2015
Decided On : 09-08-2017
1. The petitioners herein impugn Ext.P6 notification fixing revised minimum rates of wages to employees employed in timber and plywood Industries in the State of Kerala. The main ground urged in the writ petition is that the State Government, while issuing the impugned notification did not consider the objections raised by the petitioners and others to the preliminary notification that was published and proceeded to issue the final notifications without adverting to the relevant aspects that ought to have guided the State Government while fixing the minimum rates of wages.
2. I have heard the learned counsel appearing for the petitioners as also the learned counsel appearing for the respondents, in the backdrop of the pleadings before me.
3. Before examining the legality of Ext.P6 notification that fixes the Minimum Wage for workers in the Plywood Industry, it would be apposite to first look at the statutory provisions that govern the fixation of minimum wages and, also examine the extent to which courts are empowered to interfere with a decision taken by the State Government, fixing a minimum wage.
4. Section 3 of the Minimum Wages Act, 1948 [hereinafter referred to as the Act] empowers the appropriate government to fix the minimum rates of wages payable to employees employed in the scheduled employments, and to review, at periodic intervals, not exceeding five years, the minimum wages so fixed. Section 4 of the Act specifies the components that may go into the fixation of minimum wages, and the indexation that may be done for the purposes of ensuring a neutralization of the rise in costs, and to keep the wage packet the same in terms of real money value. Section 5 of the Act deals with the procedure to be followed by the appropriate government while fixing the minimum wages and reads as follows:
“5. Procedure for fixing and revising minimum wages:- (1) In fixing minimum rates of wages in respect of any scheduled employment for the first time under this Act or in revising minimum rates of wages so fixed, the appropriate Government shall either:-
(a) appoint as many committees and sub-committees as it considers necessary to hold enquiries and advise it in respect of such fixation or revision, as the case may be, or
(b) by notification in the Official Gazette, publish its proposals for the information of persons likely to be affected thereby and specify a date, not less than two months from the date of the notification, on which the proposals will be taken into consideration.
(2) After considering the advice of the committee or committees appointed under clause (a) of sub-section (1) or as the case may be, all representations received by it before the date specified in the notification under clause (b) of that sub-section, the appropriate Government shall, by notification in the Official Gazette, fix, or as the case may be, revise the minimum rates of wages in respect of each scheduled employment, and unless such notification otherwise provides, it shall come into force on the expiry of three months from the date of its issue:
Provided that where the appropriate Government proposes to revise the minimum rates of wages by the mode specified in clause (b) of sub-section (1), the appropriate Government shall consult the Advisory Board also.”
5. It is evident from the statutory provisions, therefore, that the State Government has the option of either (i) relegating the task, of gathering the requisite data for fixing the minimum wage, to committees and sub-committees appointed by it, and considering the reports submitted by the said committees or (ii) publishing its proposals for the information of persons likely to be affected thereby, asking them to submit their representations within a period not less than two months from the date of notification of the proposals, and thereafter considering the said representations and taking a decision thereon, after consultation with the Advisory Board constituted in terms of Section 7 of the
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