While hearing a petition filed by various employers’ associations, the Karnataka High Court observed that employers are stakeholders when it comes to wage-related issues or decisions. Instead of treating employers as outsiders, the government should treat them as stakeholders as they are significantly affected by minimum wage decisions or revisions. In fact, they should be allowed to have a say in the matter otherwise the entire exercise becomes rather unfair and arbitrary.
Chief Justice N V Anjaria and Justice K V Aravind stated that when minimum wage is fixed or revised, obligations as a result of such decisions arise for employers. It was also highlighted that several factors are taken into account while making decisions pertaining to minimum wage, and therefore, employers should also be allowed to give their opinions and be permitted to take a stand.
The notification in question was issued by the government in July under Section 3(1)(b) read with Section 5(1)(b) of the Minimum Wages Act, 1948, revising the minimum wages for jobs in the Foundry-with or without machine shop.
Live Law reports that following this, a petition was filed by All India Trade Union Congress (R), Karnataka State Committee, and Engineering & General Works Union due to which the notification had been set aside, and the government was asked to redo the same.
As per the employers associations, the minimum wage was revised/fixed without their participation in the discussion despite the fact that they had represented before the advisory board before the issue of notification. They maintained that they should have had a chance to present their case.
