Southern States - Tamil Nadu   

GO on minimum wages for medical reps upheld

By Our Staff Reporter

CHENNAI SEPT. 9. The validity of a Government Order fixing Rs. 3,000 as uniform minimum wages for medical representatives in the State has been upheld by the Madras High Court.

Justice P. Sathasivam, dismissing a writ petition by the Pharmaceutical Manufacturers Association of Tamil Nadu, said: "The committee (constituted to recommend revised basic pay for medical representatives) has convened meetings to get the views of parties concerned in several areas, zones, all main and major cities. Therefore, it cannot be contended that the Government has merely accepted the report of the committee without applying its mind."

Ruling that the minimum wages fixed by the Government was ``reasonable and acceptable,'' the judge said that "in the light of the materials placed, particularly the files relating to the constitution of the committee and fixation of minimum wages, I am satisfied that the Government has fully complied with the provisions of the Medical and Sales Representatives under the Minimum Wages Act."

The petitioner-association challenged the GO dated November 6, 2000, on the ground that the general pay scales for medical representatives, in addition to other allowances such as vehicle maintenance, medical and daily allowances, put a huge burden on the already weak industry. If the GO was given effect to, it would lead to the closure of several drug units. The committee itself was constituted without any proper representation from the association, it said.

Denying the contention, the TN Medical and Sales Representatives Association said the manufacturers association did have a representation in the committee and it participated in the proceedings without objecting to the constitution of the panel. Prior to the GO, their basic pay was Rs. 1,500 and it totalled over Rs. 3,400 if all allowances were taken into consideration. As per the order, the medical representatives would get Rs. 3,000 as basic pay and the total salary would be around Rs. 5,700. Mr. Justice Sathasivam said that as per the minutes of the committee proceedings, representatives of the employees as well as the employers participated in the meetings. The judge also rejected the petitioner-association's call for classification of industries to fix the quantum of salary, saying ``there is no necessity to classify the industry based on its size or zone.'' "The relevant factor for fixation of minimum wages is based on the requirement of the workmen and not the capacity of the industry or the employer." The employer's contributions such as the provident fund and the ESI contributions were made under the statutes and they could not be cited as reasons to implement the minimum wage, the judge noted, before dismissing the writ petition.

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