Settlement .....Minumum Wages...

Dear Experts,
If the Union made a Settlement with Management
If the Basic + DA determined by both parties are more than minimum wages at the time of Settlement + Other Allowances per month ( Settlement is for 3 years )
But if after 01st year the minimum wages has been revised ( Basic + DA ) but the Settlement wages are less than minimum wages ( Basic + DA ) but including all allowances the Wages per month are more than minimim wages then can union ask for revision of Basic + DA though the wages per month are more than Minimum wages prescribed by the Government?

Dear Member,
It is always ideal to match your basic and DA with the government regulation and you can restrict the allowances in total wages. As you may be fully aware, retiral and compensation benefits are based under different labour act in connection with Basic and DA and not on other allowances. It mean statutory enforcement is based on Basic and Dearness Allowances (Except ESI).
If you have a settlement less than the minimum wages as prescribed by the statutory, whereas in total it may be more than the minimum wages. It always look as unfair labour practice and statutory authorities will view this
subterfuge wage settlement.
Any agreement or settlement made less in favour of statutory provisions as specified will be deemed as null and void. Negotiate with the union members and change the structure as per statutoroy requirement.

Dear Sirs
Please read the judgment of the Honourable Supreme Court of India in CASE NO.: Appeal (civil) 4259 of 1999
PETITIONER: AIRFREIGHT LTD. RESPONDENT: STATE OF KARNATAKA AND ORS. DATE OF JUDGMENT: 04/08/1999. The answer to the query of Mr.Ingwale would be found in this judgment. This judgment is available in the website of the Honurable Supreme Court of India.
With regards