Hindustan Times Ltd. v Their Workmen
AIR 1963 Supreme Court 1332; (1964) 1 SCR 23419632 min read
The case in brief30-second read
- Facts
- An industrial dispute between the Hindustan Times, New Delhi and its workmen was referred to the Industrial Tribunal, Delhi in 1958. The award was made on 16 March 1959.
- Issue
- Whether the Tribunal's revision of the wage structure, dearness allowance and leave rules was justified.
- Held
- Fixing a wage structure must secure workers a fair share of the national income they help produce, while taking care not to dry up the source of that income or drive capital away.
- Principle
- Wage structures are fixed on an industry-cum-region basis with careful regard to the industry's capacity to pay. Workers should get a fair share of the national income without the source of that income being dried up.
Facts
- An industrial dispute between the Hindustan Times, New Delhi and its workmen was referred to the Industrial Tribunal, Delhi in 1958. The award was made on 16 March 1959.
- The company challenged the revised wage scales and other parts of the award. The workmen appealed on other points, including retirement age.
- The company compared its burden with the wage scales of the Times of India, Delhi and the Statesman, Delhi.
Issue
- Whether the Tribunal's revision of the wage structure, dearness allowance and leave rules was justified.
Held
- Fixing a wage structure must secure workers a fair share of the national income they help produce, while taking care not to dry up the source of that income or drive capital away.
- The problem must be considered on an industry-cum-region basis, with careful consideration of the industry's ability to pay (following Crown Aluminium, Express Newspapers and Lipton).
- The Tribunal's wage scales were upheld.
- Dearness allowance should ordinarily be on a sliding scale, not fixed at a flat figure, since its purpose is to neutralise a rise in the cost of living.
- The Employees' State Insurance Act does not remove the need for paid sick leave. The Court fixed 12 days a year of sick or casual leave with full pay, not accumulating.
Ratio decidendi
Wage fixation proceeds on an industry-cum-region basis, giving careful consideration to the industry's capacity to pay. The aim is a fair share for workers without drying up the source of national income.
Exam use
How to use it in an answer
- Authority for the industry-cum-region approach and capacity to pay in wage fixation.
- Pair with Express Newspapers (capacity to pay) and Unichoyi (minimum, fair and living wage).
- Also usable on dearness allowance (sliding scale) and on sick leave alongside ESI.
- Key line: "In Hindustan Times v. Their Workmen (1963), the Supreme Court upheld the wage scales because wage fixation proceeds on an industry-cum-region basis with careful regard to the capacity to pay."
Cite this
Citation
Hindustan Times Ltd. v. Their Workmen AIR 1963 Supreme Court 1332; (1964) 1 SCR 234Reported: https://indiankanoon.org/doc/1157179/. This is an educational summary, not the judgment itself. Cite the reported version in professional or academic work.