Hindustan Times Ltd. v. Their Workmen
Rule established
Fair wage is determined by the industry-cum-region formula. Comparable wages in similar industries in the same region set the benchmark for fair wage fixation.
Facts
- Workers demanded wage revision based on wages paid in comparable newspaper establishments
- Hindustan Times argued its financial capacity did not permit the demanded wages
- Industrial Tribunal applied the industry-cum-region formula to fix wages
- Employer appealed
Issue
- What is the correct method for determining fair wages? Industry comparison, regional comparison, or both?
Held
- Fair wage is determined by the industry-cum-region formula
- Primary comparison: what do comparable establishments in the same industry pay?
- Secondary comparison: what is the wage level in the same region for comparable work?
- Industry is the dominant factor; region is secondary
- Employer's capacity to pay is relevant but not determinative at the fair wage level
Ratio Decidendi
Fair wage is fixed by the industry-cum-region formula: comparing wages in similar industries in the same region. Industry is the primary comparator, region the secondary. Capacity to pay is a relevant but not overriding factor.
How to use it in an exam
- Authority for the industry-cum-region formula for fair wage
- Pair with Express Newspapers (capacity at fair wage level) and Unichoyi (three-tier)
- Key line: "In Hindustan Times v. Workmen (1963), the Supreme Court applied the industry-cum-region formula: fair wages are determined by comparing what similar industries in the same region pay."
Source
Source: AIR 1963 SC 1332; verified from chapter content
This is an educational summary, not the judgment itself. Cite the reported version in professional or academic work.