Date:27/08/2008 URL: http://www.thehindu.com/2008/08/27/stories/2008082750360100.htm

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Wages: court dismisses petitions

Special Correspondent

CHENNAI: The Madras High Court on Tuesday dismissed petitions seeking a stay on the operation of a government order of the Labour and Employment department of June this year fixing a minimum wage for plantation workers.

In his order, Justice P.Jyothimani said that wages of Rs.100 per day could not be assailed as arbitrary by any stretch of imagination considering the present cost of living.

A batch of writ petitions challenged the rates of minimum wages for employment in plantations maintained for the purpose of growing cinchona, rubber, tea or coffee, issued by the government dated June 15 confirming the preliminary notification dated March 14 this year. While the government order was challenged in the writ petitions by various plantation farmers associations, individual owners had also filed some cases. The petitioners said the plantation industry was reeling under an acute financial crisis for the past eight years due to various reasons, including the government policies on globalisation and liberalisation of trade. If the managements were compelled to pay a minimum wage of Rs.102.32 and also to provide the welfare benefits, it would tantamount to double jeopardy and the managements would be forced to incur all-in-wage costs. This would further go up due to adjustment of D.A. calculated on the spiralling cost of living index.