ISSUE:
Whether the management could alter the dearness allowance scheme to prejudice of workmen, based on the claim that the existing system over-compensated them relative to industry standards?
RULE:
Management may revise wages to workers’ disadvantage only if it proves financial inability to sustain current wages, which are above the level of minimum wage.
Minimum wages, covering basic needs and welfare, are a protected right; employers unable to meet them should cease operations.
Dearness allowance must be determined on the basis of current money value of the components of minimum wage, rather than an outdated wage structure, in order to account for inflation.
Wage or dearness allowance restructuring requires proof that current wages exceed minimum living standards and are financially unsustainable.