Fair wageIndustry cum regionSupreme Court of India

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

  1. 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 234

Reported: https://indiankanoon.org/doc/1157179/. This is an educational summary, not the judgment itself. Cite the reported version in professional or academic work.