OUR
DRAFT FOR MINIMUM WAGES
The
basic drawback in the Minimum Wages Act, 1948, is that the
law does not define ‘Minimum wages’, much less indicate the
elements or ingredients of a minimum wage. It is because of this,
that minimum wages as now fixed or revised by the appropriate
governments are pegged so low as not to satisfy even the poverty
line criteria. This has led to a situation in which ‘poverty line’
criterion has become, in some sections of opinion, the basis or
the criterion for fixing minimum wages under the Act.
This
is despite the fact that the 15th Indian Labour
Conference had, way back in 1957, not merely spelt out the
norms of what has now become well known as Need Based Minimum
Wage, but has also laid down that these norms should guide all
wage fixing authorities including minimum wage committees, wage
boards, adjudicators, etc. A catena of decisions of the Supreme
Court of India, over a long period of time, ending with the latest
decision in the Raptakos Bret case, has laid down the law on the
subject. In the last case, the Supreme Court of India added one
additional norm, viz., "(iv) Children’s education, medical requirement,
minimum recreation including festivals, ceremonies and provision
for old age, marriages etc./ should constitute 25% of the total
minimum wage." The court also stressed that the wage structure,
which approximately answers all the components, is nothing more
than a minimum wage at subsistence level.
Therefore,
the demand for fixing criteria or norms for determining the minimum
wage under the Act must be for the Need Based Minimum Wages, as
enlarged in the Raptakos Bret case. Even this is a long way from
the ‘Living Wage’ which is what Article 43 as the Constitution
of India mandates.
It
may be worthwhile to recall that the elements to be taken into
account for determining minimum level of wages in Article 3 of
the I.L.O. Minimum Wage Convention 131, begins with "the needs
of workers and their families, taking into account the general
level of wages in the country, cost of living, social security
benefits and the relative living standards of other groups". The
draft Indian Labour code 1994 prepared by the National Labour
Law Association, after wide ranging consultations and studies
states in section 67 that "in fixing or revising the minimum wage,
the appropriate government should take into consideration only
the basic needs of the employees as specified in Schedule IV and
the cost of living Allowance".