The Federation of South Indian Pharmaceutical Manufacturers Association (FOSIPMA) is pursuing a writ petition with the High Court of Kerala against the Kerala government for its move to implement fixed minimum wages for the sales promotion employees (medical representatives) in the pharmaceutical products sector.

The FOSIPMA and two individual companies in Tamil Nadu have received a stay order from the High Court on implementation of minimum wages fixed by the state government and the next hearing is expected to be in the month of October, according to industry sources.

The Government of Kerala, in one of the pioneer attempt to pay heed to the requests of the Federation of Medical Representatives Association of India (FMRAI), has fixed pay scale of 7100-15-7850 along with dearness allowance to the sales promotion employees in pharma sector through a notification in the end of May, 2009.

The petitioners claim that the peculiar features with respect to employees recruited in the sales promotion of pharmaceutical products are such that the major portion of the emoluments is constituted by the commission payable on the sales effected. Hence, the employees who are able to perform well are getting handsome remuneration as commission. However, the state government has not kept this fact in mind while issuing the notification, allege the petitioners in their submission to the High Court.

"We are taking this as a major issue now, as this could set precedence to many other states for bringing in minimum wages for the sales promotion employees. The medical representatives are paid at present according to their performance and they are getting allowances and commission even at present. Further, the drug prices are already fixed and we would find it difficult to include the fixed salary of the sales employees in our business," said T S Jaishanker, past president of FOSIPMA and the chairman of Confederation of Indian Pharmaceutical Industry (CIPI). FOSIPMA is a member of CIPI.

According to the government notification, the sales promotion employees are entitled to be paid dearness allowance calculated on the basis of the consumer price index in respect of concerned district headquarters centre published by the department of economics and statistics, Government of Kerala for each month at the rate of Rs 21.32 per point above 147 points in the new series.

The employees, who have completed not less than five years of service in an establishment, shall be paid service weightage adding to their basic wages at the rate of one increment in the scale of pay for every completed five years of service. The daily wage in respect of the employees may be calculated by dividing the total monthly wages by 26 and the notification also suggests that the employees who are getting higher wages than the minimum wages fixed under the notification shall be entitled to be paid such higher wages in future.

Though the industry association has added Kerala Medical Sales Representatives Association - the state affiliate of FMRAI - as a respondent in the case, the association has not yet represented itself infront of the court, informs the sources.