The Tamil Nadu Pharmaceutical Manufacturers Association (TNPMA) is planning to file an appeal in the Supreme Court following the Madras High Court's dismissal of its writ challenging a Government Order stipulating Rs.3000 as uniform minimum wages for the medical representatives (MRs) in the state.

Revealing this exclusively to Pharmabiz.com, T.S.Jaishankar, President of TNPMA said, "We will fight it out in the court, and our lawyer is working out the details, and we have to get a copy of the verdict. We will definitely file the appeal within a week's time. It (the verdict) will cause far-reaching consequences and burden to the industry. The medical reps are decently paid by the industry, and this is like a typical trade union initiative. For roaming around for even small distances within Chennai, we are paying them well. We have no choice other than to approach the higher court to save the industry from a crisis" said Jaishankar.

TNPMA had questioned the GO dated 6th November 2000, contending that the committee constituted to recommend a revised basic pay was set up without proper representation to the employers or their association. Further, the revised basic pay would put a lot of financial burden on the industry, especially small-scale units which constitute a majority of the manufacturers in Tamil Nadu. That would lead to closure of many units. The medical reps are paid many allowances such as vehicle allowance, medical and daily allowances etc. besides statutory benefits like PF and gratuity. Hence, the Government decision should be revoked, PMA had contended.

The TN Medical and Sales Representatives Association, the other party in the case, informed the court that PMA, the association of the pharmaceutical manufacturers in the state, was given proper representation in the committee. The association had never objected to the proceedings of the committee and formation of the panel. Before the GO, the basic pay was just Rs.1, 500 and the salary totaled only over Rs.3400, including the allowances. If the GO was implemented, total salary would go beyond Rs.5, 7000, said the sales rep association.

Justice Sathasivam, in his verdict on Monday, had observed that the court was convinced of the Government decision and action, since it had complied with the provisions to the Medical and Sales Representatives under the Minimum Wages Act, in the light of the files and proceedings verified by the court. The minimum wages fixed were acceptable and reasonable. The committee had convened several meetings to get the views of various arms of the industry in different areas, zones, and parties in major towns and cities. As per the minutes of the proceedings, representatives of employees as well as employers had participated in the deliberations of the committee. It cannot be said that the decision was taken 'merely accepting the recommendations of the committee'.

The court also dismissed the association demand to fix the quantum of salary based on classification of industries. The court felt that the basic factor for fixing minimum salary should be the requirement of the workers, and not the capacity of the industry or the employer. Hence, there was no relevance in classifying the industry based on zones. The court also felt that it was improper on the part of the employers to calculate the basic salary considering statutory benefits like PF and ESI contribution, said Justice Sathasivam.