Ludhiana-based Hand Tools Association on Thursday said it has moved the Supreme Court challenging the validity of the central government's order directing all employers to pay full wages to workers without any deduction during the lockdown period.
Hand Tools Association President Subhash Chander Ralhan said due to the lockdown amid coronavirus outbreak, the industries are completely closed since March 25 and there is no work happening.
"Due to the closure, we are not able to export goods or sell in the domestic market. There is no earning, so how we can pay wages and salaries. It is not possible," Ralhan, who an engineering goods exporter, said.
He said that the association has approached the Supreme Court under Article 32 of the Constitution challenging the validity and vires of section 10(2)(l) of Disaster Management Act, 2005 and for setting aside of government order dated March 29 issued by the Ministry of Home Affairs.
According to the order, the central government issued directions to ministries/departments, states and Union Territories to implement lockdown measures for containment of the spread of COVID-19, he said.
"This petition only challenges clause (iii) of the said government order which directs all the employers to pay full wages to its workers, without any deduction, during the lockdown period," Ralhan said.
The association has contended in the petition that the Disaster Management Act, 2005 does not empower the centre to direct the private establishments to pay full wages to its workers during the lockdown.
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"Government Order dated March 29, 2020, is in violation of the Industrial Disputes Act, 1948, which provides for payment of 50 per cent wages under natural calamity. The government issued the order in undue haste and without considering financial ability of private establishments to bear the burden of full wages during the period of lockdown," he said.
He added that when hundreds of crore of unclaimed provident fund and Employees State Insurance Corporation contribution lies in banks attracting interest, the direction to private establishments to pay full wages is completely "arbitrary and unreasonable".
"Government order violates Article 14,19 and 300A of the Constitution of India. Government order does not provide any clarification in respect of its applicability to workman class or to all employees of all private establishments, otherwise, this will have grave financial implications on all private establishments.
"Government order suffers from gross arbitrariness, irrationality and hostile discrimination, and liable to be struck down for being unconstitutional," he added.
The association includes sole proprietorship firms, partnership firms and private limited companies, engaged in manufacturing and distribution of hand tools.