The Madurai Bench of the Madras High Court has imposed costs of Rs.10,000 on a cashew nut manufacturers' association, even as it dismissed the association's petition challenging a government order of April last year fixing minimum wages for employees of the cashew nut industry.
In his order delivered here, Justice K. Chandru said that as noted in an earlier G.O. of February 2009, the minimum wages paid in the State was far below the rates paid in Kerala.
The South India Cashew Nut Manufacturers' Association, Kollam, Kerala, said the impugned notification of the Tamil Nadu Labour and Employment Department dated April 22, 2010 fixed the minimum rates of wages. A variable dearness allowance at the rate of 20 paise per point over and above 645 points on the basis of consumer price index had been stipulated. The DA is to be paid on the basis of minimum output in respect of each work to be done.
The petitioner contended that as the 2010 notification referred to a 2004 notification and not the one in 2007, it was invalid. It showed non-application of mind.
Increasing the DA from 11 paise to 20 paise was unwarranted. In Andhra Pradesh, Karnataka and north Indian States, wages were very low. It gave them a competitive edge over the Tamil Nadu industry.
Mr. Justice Chandru said the petitioner's alternative contention that DA should be delinked from the fixation of minimum wages could be neither acceptable nor realistic. Section 4(1)(1) of Minimum Wages Act provided fixation of minimum wages linked with the cost of living index. Cashew nut industries had paid such minimum wages from 1996 till the impugned notification. Therefore, the clock could not be put back. Without paying DA if wages were paid it would make labourers suffer even to purchase regular day-to-day household necessities.
The court did not accept the petitioner's contention insofar as fixing minimum wages was concerned. Citing Supreme Court decisions, the Judge said no case was made out to interfere with the impugned order.
He directed the petitioner to pay costs of Rs. 5,000 each to the Labour Progressive Federation and Tamil Nadu Munthiri Paruppu Thozhilalar Sangam (CITU), Kanyakumari district.
