High Court Orders State Govt To Convene Stakeholders' Meeting On Region & Industry-Wise Minimum Wage Classification In Madhya Pradesh

In a significant development, the Indore bench of the Madhya Pradesh High Court has directed the state government to convene a meeting of all stakeholders to discuss the classification of minimum wages according to different regions and industries. This directive comes amidst ongoing deliberations about the fairness and applicability of a uniform minimum wage across diverse industrial zones in the state.

The case was heard by Justices Sushrut Arvind Dharmadhikari and Duppala Venkata Ramana.

The petitioner challenged the legality, validity and propriety of the notification dated 04.03.2024 revising the minimum wages in respect of various scheduled employees. The petitions, filed in April 2024, sought a revision of minimum wage policies to reflect the varying economic conditions across different industries and regions in Madhya Pradesh.

The primary legal issue revolves around the state's authority to classify and fix minimum wages both industry-wise and region-wise. The petitioners argue that a uniform minimum wage does not account for the differing costs of living and economic conditions across various zones, thereby necessitating a more nuanced approach to wage classification.

In the earlier hearing the petitioner stated that they are facing problems in implementing the aforesaid notification, therefore, till the matter is heard finally, the effect and operation of the notification be stayed. Per contra, learned counsel for the respondent/State opposed the prayer for interim relief with great vehemence by submitting that if the notification is stayed, the same would amount to granting final relief.

During the hearing, L.P. Pathak, Deputy Labour Commissioner and Officer-In-Charge of the case, informed the court that the state government is open to fixing minimum wages on an industry-wise basis and is willing to discuss region-wise classification with the petitioners.

The court stated, "In such circumstances, the respondent/state is directed to convene a meeting with the petitioners and all stakeholders for consideration of classification region-wise after issuing proper notices informing them about the date, time, and venue. Thereafter, appropriate orders in respect of classification industry-wise and region-wise be passed. Let the aforesaid exercise be completed within a period of two months."

The interim order, which maintains the status quo, will continue until the next date of hearing.

State Labour Minister Prahlad Patel earlier commented, "We have said earlier that we are ready to classify minimum wages based on industries. However, we are not yet ready to classify it according to different zones, but we can consider it."

Girish Patwardhan, representing the Madhya Pradesh Textile Mills Association, emphasized the need for differential wage rates, stating, "The cost of living varies in different zones of the state. Therefore, it is unfair to fix a uniform minimum wage for all zones."

Case title: Madhya Pradesh Textile Mills Association Vs The State Of Madhya Pradesh And Others

Case No: WP-10772-2024

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