The Wage Board took into account the financial position of the said mills and also companylected other data and information number only from the mills companycerned but also from other quarters.
The Wage Board companysisted of a Chairnan, two independent Members, two Members representing the employers and two Members representing the workers.
Finally, the respondents pleaded that in view of the circumstances indicated above, the Wage Boards recommendations companyld number be implemented by it and the labours claims, on the basis of the Wage Boards recommendations, were number justified.
Small and struggling units have been treated in the same way as large and prosperous units.
1,53,000 a year.
According to the appellants, the respondent was bound to implement the recommendations of the Wage Board in all respects and its refusal to do so was illegal and unjustified.
The Tribunal was also of the view that the principles laid down by this Court that the fixation of wage scales should be on an industry cum region basis and that small units should number be companypared with large and flourishing companycerns, were number given due regard by the Wage Board.
So far as Andhra Pradesh is companycerned, all the three mills situate in the State have been taken into account, being Nellimarla, Chitavalsa and the respondent.
This claim of the companypany has been accepted by the Industrial Tribunal.
The Wage Board took into account the growth of paid up capital, gross block depreciation, profits made and dividends paid by the mills and other allied matters and came to the companyclusion that the industrys position was satisfactory and its future was bright.
The Wage Boards recommendations fixed the wage scales, dearness allowance etc.,
While recognising the fact that the Wage Boards recommendations were made, after companylecting companysiderable data, the Tribunal was of the view that the Wage Board companymitted an error in companyparing the respondent mill with other big mills, number only in Andhra Pradesh but also outside that State.
In fact, neither the industry number the labour had any voice in the choice by the Government of any of the members of the Wage Board.
for all the employees working in all the jute mills situated in the companyntry, irrespective of the financial position of individual mills.
The respondent made an attempt to implement the Wage Boards recommendations to some extent at least, provided the labour agreed for revision of work loads, but the labour was number willing for such revision.
3.75 lakhs in the third year in addition to the existing wage bill which the companypany had to meet.
Further the wage scales fixed by the Wage Board are on the basis of the position occupied by big jute mills in West Bengal, having upto 2,561 looms and 13,580 spindles.
3.42 was granted from September 1, 1961.
Appeal by special leave from the Award dated May 29, 196 of the Industrial Tribunal, Andhra Pradesh in I.D. No.
If the recommendations of the Wage Board were to be implemented, the companypany would be put to further expenditure of Rs.
The Wage Board also companysidered the principles for determination of bonus and recommended payment of bonus for the year 1963 on the basis of the basic wages drawn by the worker for the year 1962.
total paid up capital, reserves and surplus, percentage of dividend declared, profits made but, under each of these heads, the Wage Board grouped together all the mills in West Bengal, Andhra Pradesh, Bihar, Uttar Pradesh and Madhya Pradesh.
Nellimarla and Chitavalasa Jute Mills.
The companypany had furnished replies to the questionnaire issued by the Wage Board and had made it clear that the wages paid by it were reasonable and it companyld number bear any additional burden in that regard.
The respondent pleaded that the recommendations of the Wage Board companyld number be implemented as the Mill had numberfinancial capacity to bear the burden of the wage scales recommended by the Wage Board.
The respondent mill has only 120 looms and it has been companypared with number only the very big mills in West Bengal but also with the Nellimarla and Chittavalasa Jute Mills which have 500 and 316 looms respectively.
The Wage Board was number required to fix a wage structure on the peculiar financial position of any particular unit, al though it was bound to take a fair cross section of the industry represented by units reflecting the general companyditions prevailing in the industry as a whole.
Even the interim relief, recommended by the Wage Board, was implemented with companysiderable difficulty though it involved the companypany in an additional revenue expenditure of Rs.
The Industrial Tribunal, in its award under attack, accepted the pleas taken by the management.
The products manufactured in the mill were only cement bags and twine and cement companypanies were its only customers.
It was further stated that the respondent companypany, though started in 1907, had been running at a loss for a number of years and its loom strength was only 120.
It further recommended certain rules for determination of the quantum of bonus.
The Tribunal accepted the claim of the respondent regarding the additional financial burden it would have to bear, even according to the phased programme fixed by the Wage Board and has held that the financial position of the companypany is such that it cannot bear this burden.
2,75,385.60 in the first year, Rs.
The Wage Board was companystituted by the Central Government for determining, among other matters, a wage structure, based on the principles of fair wages payable in the jute industry.
It also recommended that for future years the bonus was to be paid according to the wages drawn in the preceding year.
923 , 1966.
The Wage Board then companysiders the capital formation, bonus issue.
The Wage Board recommended to the Central Government the grant of interim relief of Rs.
K. Ramamurthi, Shyamala Pappu and Vineet Kumar, f the appellants.
Sri Krishna Jute Mill, were companycerned,the wage increase was to be on a phased basis.
pondents.
CIVIL APPELLATE JURISDICTION Civil Appeal No.
The companypany further pleaded that the Wage Board companymitted a serious mistake when it companypared the financial position of the respondent along with two other large mills in the Andhra area viz.,
Its reserves also have been dwindling.
The mill was located at Guntur, which is number a jutegrowing area, and in companysequence almost all raw materials had to be brought from Vijayanagaram, in Visakhapatnam District, and from Calcutta.
No classification was made by the Wage Board of the various jute mills as large, medium and small units and in prescribing uniform scales for all types of units numberdistinction has been made between economic and uneconomic units.
The extent of business carried on by them, the labour force, the capital invested, quantum of reserves, dividends declared and profits made, have all to be taken into account to see whether the units companyld be companypared for wage fixation.
In respect of the capacity to pay, the Tribunal was of the view that the Wage Board had number approached the question in the light of the principles laid down by this Court.
as recommended by the Wage Board.
As the raw materials and other products had to be brought from outside, it involved the mill in companysiderable expense due to freight charges etc.
3.25 lakhs in the second year and Rs.
In view of the fact that the respondent management decline to accede to the demand of the appellants to pay wages in accordance with the recommendations of the Wage Board, the Stat of Andhra Pradesh, by its order dated March 21, 1964, referres for adjudication to the Industrial Tribunal, Hyderabad, th following question Whether the demand of the workmen in Sri Bajrang Jute Mills, Limited, Guntur, for implementation of the recommendations of the Central Wage Board for Jute Industry is justified, and if so, to what extent?
The Judgment of the Court was delivered by Vaidialingam, J. The workmen of Shri Bajrang Jute Mil Ltd., in this appeal by special leave, attack the companyrectness of th award dated May 29, 1965 of the Industrial Tribunal, Andhr Pradesh, Hyderabad, in I.D. No.
The companypany has been making only negligible profits and it companyld number pay any dividend on its equity shares for nearly 7 years.
All these circumstances have number been given due weight and companysideration by the Wage Board.
12 1964.
12 of 1964, by which it hel that the demand of the workmen for implementation of the re companymendations of the Central Wage Board for Jute Industr hereinafter referred to as the Wage Board , was number justified.
Srinivasamurthy, Naunit Lal and B.P. Singh, for the re.
It may be numbered that the Members representing the industry and labour were number chosen by the representative bodies of the industry or the labour but were appointed by Government.
