The beleaguered United Progressive Alliance (UPA) government has decided to give a Diwali gift to Indian journalists. The Union Cabinet on Tuesday approved the final Majithia Wage Board recommendations, which will benefit more than 45,000 journalists and non-journalists in the country.
The revised wages, with hikes ranging from 10 per cent to 30 per cent, will come into force with retrospective effect from July 2010. Allowances, such as transport, house rent and hardship shall be effective from the date of notification of the awards in the Gazette.
The move comes in the wake of the Supreme Court refusing earlier this month to stay the Wage Board recommendations.
The government had constituted two wage boards in May 2007 under the provisions of Section 12(1) of the Working Journalists and other Newspaper Employees (conditions of Service) & Miscellaneous Provisions Act, 1955. The Chairman of the Wage Boards, Justice GR Majithia submitted the final report to the Government on December 31, 2010. The recommendations contained in Chapter XIX and XX of the final report will be published in the Gazette of India for implementation by the newspaper establishments and news agencies.
In July, the Supreme Court had asked the Union government not to go ahead with the implementation of the recommendations of Justice Majathia Wage Board. The apex court bench, however, did not pass any formal order restraining the Union government from implementing the recommendations. The court order came in the course of the hearing of a petition by the Anandabazar Patrika media group, which contended that the wage board recommendations were being sought to be implemented without them being given a copy of the report.
On September 21, the Supreme Court permitted the Union Cabinet to take a decision on implementing the recommendations. Any decision would, however, be subject to the outcome of the case filed by ABP Pvt Ltd, the Indian Newspaper Society, Bennett Coleman & Co Ltd, and two others challenging the board’s final report submitted in December 2010, the two-member bench said. The matter was listed for final hearing on October 11. The court refused to stay the wage relief.
The newspaper managements had argued that the wage board recommendations, if implemented, would cause chaos in the industry. They also challenged the validity of the Working Journalists and Other Newspaper Employees (Conditions of Service and Miscellaneous Provisions) Act, under which the board was formed, and wanted it declared null and void and ultra vires the Constitution. They sought a direction to restrain the Centre from taking any decision based on the board’s “faulty and flawed” recommendations.
The Centre justified the report and said the wage structure had been determined on the basis of the employer’s capacity to pay. Though it was constituted specifically to fix or revise wages, the board, in its wisdom, made recommendations on retirement age and other issues also. The Centre rejected the charge that the recommendations would infringe the petitioner’s right to freedom of speech and expression guaranteed under the Constitution.
Newspapers have been classified into eight categories and news agencies into four on the basis of their gross revenue. Newspapers with a gross revenue of Rs 1,000 crore and above have been put in the top category of Class I, Rs 500 crore (II), Rs 100 crore and above but less than 500 crore (III), Rs 50 crore and above but less than Rs 100 crore (IV), Rs 10 crore and above but less than Rs 50 crore (V), Rs 5 crore and above but less than Rs 10 crore (VI), Rs 1 crore and above but less than Rs 5 crore (VII) and less than Rs 1 crore (VIII). In the case of news agencies, those with gross revenue of Rs 60 crore and above have been put in the top category of Class I while those above Rs 30 crore but less than Rs 60 crore (II), Rs 10 crore and above but less than Rs 30 crore (III) and less than Rs 10 crores (IV).
House rent allowance (HRA) will be applicable at the rate of 30, 20 and 10 per cent respectively for the X, Y and Z cities, while the same in the case of transport allowances will be at the rate of 20, 10 and 5 per cent. Night shift allowances of Rs 100 per night will be paid to employees of newspaper establishments in classes I and II, Rs 75 per night in classes III and IV and Rs 50 per night for V to VIII. The employees of news agencies falling in classes I and I shall be paid Rs 100 per night shift and those falling in classes III and IV Rs 50. Hardship allowance of Rs 1000 would be paid for the first four classes of newspaper establishments and first two classes of news agencies and Rs 500 for the remaining classes. Medical allowance of Rs 1000 would be paid per employee per month to top two classes of newspapers and news agencies and Rs 500 for III and IV categories in newspapers.
