In a temporary relief to the automobile engineering industry, including automobile servicing and repairing works, the High Court of Karnataka on Monday stayed the State's notification of increasing minimum wages by more than 100 per cent for labourers in this sector with retrospective from April 1, 2015.
The court, however, said that the petitioner industries should increase wages prospectively to labourers at the rate of 75 per cent of the revised wages proposed in the July 30, 2015 notification issued by the State government. The July notification had revised wages for labourers in automobile engineering (including serving and repair works).
Justice A.S. Bopanna passed the interim order on the petitions filed by Akshara Motors Pvt. Ltd. and 85 other automobile dealers, automobile servicing and repair centres across the State.
While ordering issue of notice to the All India Trade Union Congress, the court also asked the petitioners to implead other relevant unions of labourers for effective adjudication of the issues raised in the petition.
‘Arbitrary hike’
Pointing out that usually minimum basic wages are revised once in five years with 20 per cent to 30 per cent increase, the petitioners complained that the increase in basic wages as per the July 30, 2015 notification would be by 280 per cent when compared to earlier basic pays revised in 2009. The increase, after inclusion of variable DA, would be in the range of 68 per cent to 89 per cent and the gross hike would be more than 100 per cent when the other indirect hikes in provident fund, ESI and leave encashment are added to basic wages.
Making it clear that they were not opposing a fair increase in wages, the petitioners contended that the constitution of advisory board for examining hike in minimum wage itself was legally flawed.
They questioned the retrospective hike in minimum wages, while pointing out that as per the normal procedure the increase in wages have to prospective.
They contended that they cannot be forced to pay arrears as they cannot collect additional charges, due to hike in wages, from their customers retrospectively.
