Principles clarified re three broad sets of employers viz. (i) Employers in organised sector like industry; (ii) Employers in public sector undertakings including Boards and Corporations and other establishments which meet test of “State” within meaning of Art. 12 of the Constitution; and (iii) Central and State Governments proper as employers. As far as first category is concerned there are numerous complex factors, some of which are economic like financial status of employer, national economy, etc. while some spring from social philosophy which acknowledges that worker’s wage is force of collective bargaining under Labour laws and wage structure must be tested on anvil of social justice. In respect of establishments which meet parameters of being “State” within meaning of Art. 12 of the Constitution, reiterated that non-revision of pay scale does not violate fundamental rights guaranteed under Art. 21 of the Constitution since under Labour law workman is only entitled to minimum or fair wage and not periodic revision. Besides, economic viability is an important consideration while determining wage structure, and pay revision cannot be claimed when employer is making continuous losses. As far as Central and State Government as employers is concerned, financial and economic implications are very relevant and germane to any policy decision touching administration of Government.

[Punjab State Coop. Milk Producers Federation Ltd. v. Balbir Kumar Walia, (2021) 8 SCC 784]

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