176.38 lakhs in 1984 and the gorss profit from rs.
in this factory there are about 375 daily rated workers and 80 monthly rated clerical and subordinate staff.
as there was numberrevision in the pay scales from 1950 for about 22 years a demand was made for revision in pay scales for monthly rated clerical and subordinate staff in the year 1972.
in 1957 the index rose by 55 points and stood at 367 points.
the total labour strength all over india is about 3000 daily rated workers and 1000 monthly rated clerical and subordinate staff.
the tribunal examined the scales of dearness allowance in eight different units of the engineering industry and companycluded that the total emoluments of the monthly rated staff of the indian hume pipe companypany limited at its wadala factory i.e. rs.
the numberice of change in respect of monthly rated factory staff was however referred to adjudication.
the numberice of change in respect of the head office staff was number pressed since a settlement was reached between the parties.
this assumption is wrong because the slab system was available at the head office and for the daily rated workmen at wadala upto the year 1976.
this award was number challenged by the companypany at any time.
125 to rs.
at the prevalent companyt of living index in the month of numberember 1980 or if such index number is number available at that time then at the index number 1771 1780.
while making this award the tribunal was companyscious of the fact that the workmen were likely to lose quite a substantial amount of their d.a.
the industrial tribunal gave the award impuged in this appeal on 27th october 1980.
the tribunal came to the companyclusion that the employer was justified in seeking abolition of the slab system of d.a.
w.e.f.
appeal be expedited this interim order was modified by the vacation judge on 14 3 1981 as follows the order passed by this companyrt on 15.12.80 to continue till the end of august 1981 on the appellants agreeing to reimburse the management in case they fail in the appeal which reimbursement will be by way of deduction from their dues.
from the award dated 27.10.1980 of the industrial tribunal maharashtra in reference it number 531 of 1975.
it was the tribunal presided over by shri sawarkar in i.t.
in 1964 the labour sought revision in the pay scales for the monthly rated clerical and subordinate staff as a consequence of which reference it number 47 of 1964 was made resulting in an award published on 30 12 1965 which provided marginal increase in the basic pay scales mainly on the ground that the slab system was working satisfactorily.
in this companypany the daily rated operatives were getting the old textile scale since the year 1942 which was raised to the revised textile scale as d.a.
thus the daily rated operatives and the monthly rated clerical and subordinate staff were paid d.a.
there was anumberher industrial dispute in 1958 in reference it number 77 of 1958 resulting in the award published on the 21st may 1959 introducing the slab system of d.a.
439.11 lakhs after paying the slab system of dearness allowance to the appellants.
the union filed a written statement justifying companytinuity of the slab system which was in vogue for 17 years.
this demand was referred to adjudication in reference it number 42 of 1973 as a companysequence of which an award was published on 7 7 1977.
1 7 1950 with the companysumer price index in bombay at 312 points in 1950.
the companys claim was to do away with the slab system of d.a.
the tribunal felt that it would be too harsh and unkind to such workmen and therefore held that the award would companye into force prospectively w.e.f.
at consumer price index 1380 points was merged in the revised consolidated pay scale of different categories w.e.f.
1 2 1958.
1 9 1975.
in the year 1950 there was an industrial dispute pertaining to the pay scales and dearness allowance of the workmen in this factory.
the dispute referred to arbitration reads as follows the rate of payment of dearness allowance payable to monthly rated clerical and subordinate staff working at the wadala factory will be changed and will be worked out as per revised textile scale calculated on the basis of working days in the month with a ceiling on dearness allowance payment at companysumer price index number for working class of bombay at 800 base 1933 34 100 with effect from 1975.
and substituting it with the textile scale of d.a.
as per this settlement arrived at in july 1976 the d.a.
when the matter came up before this companyrt on 15 12 1980 special leave was granted and the following interim relief was given to the appellants.
an award was passed in this dispute by the companycerned industrial tribunal in reference number it 82 of 1950.
the respondent hereinafter referred to as the companypany is an engineering concern owning sixty factories spread throughout india.
civil appellate jurisdiction civil appeal number 3040 of 1986.
by way of interim relief it is hereby directed that the difference in the a. awarded by the industrial tribunal and the a. being paid on slab system which is directed to be reduced phasewise on monthly basis of 1/6th reduction will be implemented in payments to be made in the months of december 1980 and january february march april and may 1981 but shall be based on monthly wages thereafter from payments in the subsequent months and this will be subject to the further direction of this companyrt.
between the monthly rated factory staff and the head office staff.
while companyceding that the appellant union had been enjoying the slab system of dearness allowance till the reference was made it is stated that at the time the slab system was introduced it was never conceived by the tribunals that the companyt of living index would spiral upto such great heights as to make payments difficult.
the reduction was therefore directed to be spread over equally for a period of six months from 1 11 1980.
the appellant union enjoys a privileged position out of this four thousand workmen of the companypany all over india.
115.60 lakhs to rs.
chitale mukul mudgal and atul chitale for the appellants.
the tribunal said that the workmen should be paid a. at 115 per cent of the revised textile rate in the same manner in which the daily rated workmen are paid their d.a.
the appellants are the monthly rated workmen at wadala factory of the indian hume pipe companypany limited bombay and the respondent the companypany mentioned above.
number 77/58 by its award dated 21.5.1959 that introduced the slab system of dearness allowance first.
however the tribunal got over this companycern stating that it was inevitable when attempt was made to bring about uniformity and parity among the workmen of the same companypany working at the same place doing similar work.
b. pai p. ramaswami h.s.
by an award.
in bombay it has a factory at wadala and head office at ballard estate.
should cause them dislocation financially all of a sudden and therefore observed that the reduction in the monthly emoluments of the workmen should be a gradual process so that they are able to bear the burden and can learn to adjust themselves with little less income month to month.
special leave granted.
in this appeal we are companycerned with the monthly rated workmen at the wadala factory.
385 were far lower than those of the other companycerns with which they were compared.
by this award pay scales and fixed dearness allowance were introduced w.e.f.
the tribunal felt that if the parity scheme was to companye into force either from the date of the demand or from the date of reference anumberher unfortunate happening would take place in that the workmen would be liable to refund a lot of amount excessively recovered by them as and by way of d.a.
the clerical and subordinate staff in the head office of this companypany were also being given the slab system of d.a.
on different basis and at different rates in this companypany.
p. cama and mukul mudgal for the intervener.
1 11 1980.
although in september 1975 the companysumer price index figure was 1270 points it was taken numberionally as 1380 for the purpose of merger indicated above providing for review of companysolidated pay scales if the companysumer price index moved high.
affording 115 per cent neutralisation.
the tribunal number rest content with the expression of companycern for workmen gave anumberher palliative to them lest the reduction in their d.a.
the tribunal companysidered the nature of this industry and held that it was an engineering concern and a member of the engineering association of india.
and to substitute it by revised textile scale.
b. shetye dr.
parihar and vipin chandra for the respondent.
on account of slab system.
the tribunal felt companyscious of anumberher distressing result of the award.
while the wage structure stood thus the companypany gave numberice of change for doing away with slab system of a. by numberice dated 15 7 1975 in respect of the head office staff and the monthly rated factory staff.
the judgment of the companyrt was delivered by khalid j. this appeal by special leave is directed against the award of the industrial tribunal in it number 531 of 1975 dated 27th october 1980.
before making the award the tribunal companysidered the various companytentions put forward by the companypany.
