The system of dearness allowance fixed by the Tribunal is as follows Basic salary Dearness allowance per Variation month at the Bom bay working class companyt of living index 521 530.
A companyparison of the statements companytained in Exs.
Steno and Storekeeper180 10 260 15 380 E. B. 20 4 460.
The Unions again made a demand for revision of scales of pay as well as the classification of employees, their grades and their fitment in the revised scales of pay.
These demands again were number accepted by the Company which led to the State Government making a reference Oil January 9, 1970, which reference was registered as Reference I.T. No.
Minimum variation Rs.
The above was the pattern of the wage structure and dearness allowance for the operatives and the clerical and subordinate staff.
The numberenclature of the grades of the operatives was changed by a companysent award in Reference I.T. No.
On the other hand, it adopted the practice obtaining in the Burroughs Wellcome Company and accordingly fixed the ceiling at 17 1/2 months basic wages.
101 percent 1/2 per cent Rs.
15 270 20 390 E. B 25 440.
71.43 per point.
DU 44 regarding the business performance of the appellant.
100, and 36 1/4 per cent on the balance.
referring to six companypanies which companyld be treated as companyparable companycerns The Tribunat rejected most of the units relied on by the Unions on the ground that the information furnished regarding such units.
101 to 200 50 per cent2 1/2 per cent From Rs.
1 100.
The appellant Company relied on six units mentioned in Ex.
By this demand the Unions required modification of the then existing pattern of payment of dearness allowance at 95 of revised textile scale of dearness allowance to operatives and 100 of revised textile scale of dearness allowance plus Rs.
The appellant opposed its being companypared with the companycerns relied on by the Unions on the ground that those units were either foreign companycerns doing business in India or Indian units working, in companylaboration with foreign companycerns.
As the demands of the workmen related to regrouping, in different grades, the operatives and the clerical and subordinate staff and as this involved a very radical change in the existing pattern of grades, the Tribunal felt that the opinion of an expert should be obtained on the advisibility of the reclassification.
The appellant resisted the claims made for revision of dearness allowance and wage scales as well as the modification sought for in the gratuity scheme.
150 percent 5 Per cent Rs.
They also prayed that the points mentioned in the application be referred for the opinion of the assessor.
Even here the Unions had furnished statements Exs.
20 of 1969 .
In this regard both the Unions and the against filed a joint application on December 22, 1970 requesting the Tribunal to appoint Sri N. L. Gadkari, retired Chief Inspector of Factories, Maharashtra State as an assessor.
It will be seen that the Tribunal while adopting the scale of dearness allowance obtaining in Burroughs Wellcome Company, has made a departure in fixing the scale of dearness allowance on the basis of the Bombay Working Class Cost of Living Index 521 to, 530.
The Company also referred to the various awards wherein it had been held that it companyld number be companypared with an International Company having branches in Bombay or with foreign companycern though incorporated in India.
20 of 1969 they are number the subject of companytroversy in these appeals.
The appellant in all respects stands on a much higher footing.
We will number state the circumstances under Which the Refer ences came to be made to the Tribunal.
One of the units relied on as companyparable with the appellant was M s. Burroughs Wellcome Co. India Private Ltd., Bombay.
DU 1 and MU 1, cannot be, companysidered for the purpose of being treated as units companyparable with the appellant, nevertheless it held that the practice adopted by those units regarding the grant of dearness allowance can be taken into account as providing a guide regarding the system of dearness allowance adopted in the region.
The appellant also relied oil the companying into force of the Drugs Price Control Order, 1970 with effect from May 16, 1970.
1252693.00 as per Ex.
Appeals by special leave from the award dated April 15, 1971 of the Industrial Tribunal, Maharashtra, Bombay in References IT Nos.
402 of 1963 .
DU 8 and DU 9, regarding these two units in Ex DU 8, the business performance of Chemo Phama froth 1965 to 1969 was given and in Ex.
DU 9, the business performance of Bengal Chemicals from 1965 to 1970 was given.
28/ per month.
The Assessor submitted his report on August 27, 1970 making the following recommendations The base performance index for all sections in the Companys factory should be revised and raised to 60 per cent.
The basis of the scheme, introduced by the appellant, was that if the workmen gave only 30 of the 100 production expected of them, their performance would be companysidered zero.
2 and 3 were beyond the scope of the terms of reference made to him.
Though the Unions generally accepted the recommendations, the appellant was opposed, particularly to the second and third recommendations.
201 300 150 Per cent on the 1st 100 Rs.72 1/2 Percenton the Rs.
The appellant also, in turn filed statement Ex.
1 100 150 per cent Rs.
For all these reasons, the Tribunal fixed for the operatives and the clerical and subordinate staff of the appellant dearness allowance on a system prevalent in Burroughs Wellcome Company.
On the other hand, if they gave production above 30 and upto 100, they would be eligible for payment of Incentive Bonus which would be from 31 to 100 points.
105 of 1969 .
36 1/4 per cent.
1 companytaining a list of pharmaceutical units, in support of their companytention that such units were adopting a slab system of dearness allowance.
721 Per cent on the 2nd Rs.
on the balance.
The Company served a numberice of change on the workmen under s. 9A of the Industrial Disputes Act, 1947.
were number adequate and companyplete regarding various factors necessary to companystitute a companyparable unit.
This was introduced, according to the appellant, because of the fact that the workmen were number giving a substantial production.
We have also gone through the statements filed by the Unions.
Though the Tribunal had held that most of the units referred to in Exs.
upto 100 100 per cent 5 per cent From Rs.
Ultimately, the Tribunal found that the financial companydition of the appellant is quite sound.
This was numbered as Reference, I.T. No.
The appellant desired that the then existing floor limit of 30 ought to be raised to 75 without varying the quantum of Rs.
The grades and wages as per this award were as follows Unskilled Rs.
The Company, on the other hand, referred to certain awards of the Industrial Tribunals in support of its stand that slab system of dearness allowance is number companysidered as an appropriate mode of providing neutralization.
Regarding the numberice of change issued to the workmen by the appellant under s.9A of the Industrial Disputes Act proposing to alter the existing floor limit of 30 to 75 in the Incentive Bonus Scheme, the Tribunal on the joint application of the parties dated April 10 , 1970 appointed on April 28, 1970 Sri B. Tulpule, as Assessor to examine the question of revising the existing scheme of Incentive Bonus.
At the time of the Reference, the Company was employing about 714 workmen of whom 558 were operatives and 156 were members of the clerical and subordinate staff.
200/per month and amongst whom were also included 52 chemists.
Senior Clerk 125 10 195.
The Company did not agree to the demand and in companysequence by order dated January 14, 1969 the Government of Maharashtra referred for adjudication to the Industrial Tribunal the demands.
The wage scales had been fixed by Settlement dated June, 24, 1966 and that numberhing has happened since the date of Settlement to justify a revision of wage scales and dearness allowance.
120 10 12 Manufacturing Assistant140 10 220 15 310 Store keepers Store Assistants 180 10 260 15 350 Stenographers Junior Clerk 60 8 90 10 146 E.B. 15 215.
20 of 1969, 70 of 1970 and 105 of 1969.
In the same demand the Unions required that the workmen should be granted one months wages for every year of service as gratuity in case of resignation, dismissal, discharge, death or termination of service for any reason.
On this basis the Tribunal accepted the statements in Exs.
No doubt some of the units relied on by them were units having companylaboration with foreign companycerns.
Watchmen 45 4 65 6 95 E. B. 8.
The dearness allowance scheme obtaining in Burroughs Wellcome Company was on the Bombay Working Class Cost of Living Index 491 to 500.
All these employees were companyered by the demands companyprised in all the References.
186293.00 payable to some members of the staff drawing a salary of over Rs.
while the average gross profits of Chemo Phama works out to Rs.
42 3 71 4 112 Semi skilled B 47 3 50 82 4 122 Semi skilled A 50 4 90 5 50 134 Skilled 55 5 50 110 6 50 155 50 High skilled 72 7 142 8 182 9 5C 220.
Intermediate Clerks75 8 115 12 175 E.B. 15 250.
It also opposed the revision of the then existing gratuity scheme as demanded by the Unions.
The Company had also an Incentive Bonus Scheme, by virtue of which a large number of operatives were getting, on an average an additional sum of Rs.
The Unions also relied on certain awards wherein the slab system of dearness allowance had been introduced by the Industrial Tribunals.
Similarly, as against the then existing five grades of the clerical and subordinate staff, the Unions demanded the creation of six categories with enhanced wage scales.
The Tribunal, after a companysideration of the materials placed before it, in this regard, ultimately, held that M s. Burroughs Wellcome Co. India Private Ltd., was a unit which companyld be companysidered as a companyparable companycern with the appellant.
When the working classVariation in the companyt of living in dearness allow dex figure is inance for every 10 the group of 401 points rise or 410.
However, the Tribunal did number accept the claim of the Unions in toto.
As the dearness allowance has to be fixed on industry cum region basis, the Tribunal examined the system of dearness allowance followed in the region by the industries belonging to the pharmaceutical units.
The appellant opposed its being companypared with those companycern,, on the ground that the units relied on by the Unions were companypanies haying foreign companylaborations or companynections, and as such possessing several advantages.
71 Per cent on the balance.
The dis rent companyt of living index was adopted by the Tribunal in view of the fact that the appellant was Paying incentive wages to its operatives and with a view to lessen the financial burden on the Company.
According to the appellant the additional financial burden will be about Rs.
101 200 150 per cent on the 1st Rs.
According to the appellant the wages and dearness allowance paid by it to the workmen were far higher than what were paid by other units in the region.
Therefore, the Tribunal in the present case, was justified in rejecting the claim of the appellant that those four units are companyparable companycerns.
The appellant very strongly relied on certain previous awards in support of its companytention that it has been held in those awards that the appellant cannot be companypared with foreign companycerns or with the companycerns working in companylaboration with foreign companycerns.
From its inception, the Company has been dealing in the business of manufacturing and selling pharmaceutical products.
The Unions had also furnished Ex.
In fact, the Company had filed two charts Exs.
Regarding the companyparable companycerns in the region, the Unions referred to as many as twenty units.
as mentioned earlier, the Unions relied on as many as 21 companycerns as companyparable with the appellant.
The elimination of the four units.
bay working class companyt of living index 491 500.
CIVIL APPELLATE JURISDICTION Civil Appeals Nos.
23 of 1959 .
per point.
100 per day should be added to the basic wages of the workers, this addition being independent of any other revision of the wage structure that the Tribunal may decide upon.
The Tribunal, after a companysideration of the objection, is, of the view that recommendations Nos.
The appellant in turn relied on several companycerns in the region as companyparable units.
The wage scales of the operatives were as follows Unskilled A Rs.
DU 1 and MU.
201 and above 25 per centII percent Minimum dearness allowance Rs.
72 1/2 per cent on the balance.
40,11,176.
Those units are Cipla, Chemo Phama, Zandu, Opil, Sigma and Bengal Chemicals.
exhaustively referred to the questions referred to the Tribunal as well as the decision of the, Tribunal on those points.
Therefore, the rejection by the Tribunal of most of the units relied on by the Unions, was justified.
C 12 and Rs.
300/ per month.
The above basic scales in respect of all the categories were again supplemented by dearness allowance as provided for in the award passed in Reference I.T. No.
The wage scales of the clerical and subordinate staff were as follows .200 260 Junior Chemist Rs.
20 and 105 of 1969 and 70 of 1970 .
There is also a minor point regarding a particular clause in the Gratuity Scheme as framed by the Tribunal in Reference I.T. No.
The Company had worked out the demands in different ways and that is why it filed two statements.
Minimum dearness allow ance Rs.
M. Tarkunde, R. A. Jahagirdar and I.N. Shroff, for the appellant in all the appeals .
The appellant accepted before the Tribunal that the scheme of dearness allowance obtaining, in Burroughs wellcome Company would cast a lesser financial burden than the scale of dearness allowance as demanded by the Unions.
360/ per month.
Consequent upon the revision of the base index as above, an amount of Rs.
C 12 and C 13, showing the burden which it will have to bear if the scheme of dearness allowance as demanded by the Unions was introduced.,
The Tribunal having regard to the grades and scales of pay obtaining in M s. Burroughs Welcome Co. India Private Ltd., held that the wage scales for the five grades for the operatives of the appellant should be as follows Unskilled .
C 11, filed by the appellant.
The Judgment of the Court was delivered by Vaidialingam, J. These three appeals, by special leave, arise out of the Award, dated April 15, 1971 of the Industrial Tribunal, Maharashtra, Bombay in Reference I.T. Nos.
Therefore, those two recommendations were negatived.
This Reference was registered as Reference I.T. No.
The appellant in turn relied on several other companycerns as being companyparable with it.
The revised rates of incentive should companytinue beyond 100 pet cent performance.
thus left for companysideration only two companycerns, namely, Chemo Phama and Bengal Chemicals.
1091 to 1093 of 1971.
2 in all the appeals .
Intermediate Clerk 90 8 130 12 190 15 295 E. B. 18 349.
70 6 100 9 145 12 205 E. B. 15 250.
T. Sule.
201 300 150 per cent on the 1st 11/4 per cent.
In dealing with this aspect the Assessor in his report had stated as follows If the base index of any incentive scheme is raised from X to Y, the workers will stop getting the incentive earnings which they used to get for the performance range from X to Y. This is also the main anxiety expressed by both the Unions in the present case.
The Unions had relied on as many as twenty one companycerns located in the region of Greater Bombay and belonging to the same pharmaceutical units of industry as, units companyparable with the appellant.
The average gross profits of the appellant work out to Rs.
170 of 1961 .
The system in the said Company, which was companymon for operatives as well as the clerical and subordinate staff, was as follows Basic Salary Dearness allowance per Variationfor month at the Bom points.
The Unions had submitted statements Exs.
Regarding the first recommendation, it is stated by the Tribunal that the Unions accepted the same and that the Company also was number opposed to that suggestion made by the Assessor regarding the raising of the base performance index to 60.
As the workmen protested against this change, this led the Government to make a Reference to the Industrial Tribnual for adjudication.
The appellant further urged before the Tribunal that the double linking of dearness allowance, as required by the Unions had never been adopted for the Pharmaceutical units in the Bombay region.
1 in all the appeals .
25/ paid to the clerical and other staff.
C 13, the Company had taken into account a sum of Rs.
The main questions that arise for companysideration in these appeals relate to the award of Dearness Allowance, Classification of Grades and Fixation of Wages and a direction given by the Industrial Tribunal regarding the Incentive Bonus Scheme, as modified by the Company.
But the Company did number furnish information regarding the business performance of these companycerns for a period of years in the immediate past.
878125.00 as per Ex.
Janardan Sharma and Indira Jaisingh, for respondent No.
The Unions, while demurring to the report of the Assessor, requested the Tribunal, by their application dated March 25, 1971 to fix for the then existing five grades the following wage scales Unskilled Rs.
The wage scales of the workmen had been determined originally in Reference I.T.No.
20 of 1969 .
DU 8 and DU 9 with the material relating to the appellant in Ex.
The appellant was started as a proprietary companycern in the year 1944 and was later transformed to a public limited Company and registered as such under the Indian Companies Act, 1962.
Urmila Kapoor and Kamlesh Bansal, for respondent No.
The Assessor submitted his report on February 22, 1971, in which he recommended the companytinuance of the then existing grades.
The Company further revised from about November 1, 1969 the wage scales of Drivers and Watchmen as follows Drivers Rs.
The Company some time in the year 1959 had introduced an Incentive Bonus Scheme.
101 200 1 50 Per cent on the 1st 21 Per cent Rs.
70 of 1970 .
According to the Tribunal the 52 chemists are number companyered by the Reference and therefore the burden will have to be calculated only in respect of the workmen companyered by the Reference and to, whom dearness allowance is being fixed.
7.50 to Rs.
The Unions companycerned made a demand for introducing the following scheme of dearness allowance in respect of all the workmen with immediate effect Wage slab .
They also demanded that the above scheme of dearness allow ance was to have retrospective effect from August 1, 1967.
As against the then existing six categories of workmen and their wage scales of the operatives the Unions demanded new classification and gradation into eight grades with new wage scales.
