LexGREAVES COTTON AND CO. AND OTHERS versus THEIR WORKMEN
Open in Lexace · Ask the AI about this caseJudgment (excerpt)
1963
November U
362
SUPREME COURT REPORTS
(1964]
GREAVES COTTON AND CO. AND OTHERS
v.
THEIR WORKMEN
{P.B. GAIBNDRAOADKAR, K.N. WANCHOO AND
K.C. DAS GUPTA JJ.)
Industrial Dispute-Wage Scales-Industry-cum-region formu-
la--Applicability-Division of unskilled workers into two classes,
if permissible-Dearness allowance-Incremental scales-Adjust-
ment.
The disputes between the appellant companies and the workmen
w~dch were referred to the Industrial Tribunal for adjudication,
related to wages, dearness allowance and gratuity.
The companies
raised objections to the award of the Tribunal on various grounds.
Held: (i) The reference in the award to the recommendations
of the Tripartite Conference wherein the need-based minimum
wage was evolved, did not vitiate the award, as the final decision
was based not on them but on a consideration of the wages pre-
valent in comparable concerns so far as clerical and subordinate
staff were considered.
(ii) In applying the industry-cum-region formula for fixing
wage scales the Tribunal should lay stress on the industry part of
the formula if there were large number of concerns in the same
region carrying on the same industry, but where the number of
industries of the same kind in a particular region was small, it
wa" the region part of the formula which assumed importance
particularly in the case of clerical and subordinate staff.
In the present case, the Tribunal was right in leaning more
on the region part of the industry-cum-region formula and less
on the Industry part.
Workman of Hindus;an Motors v. Hindustan MotorJ, [1962] 2.
L. L. J. 352 and French Motor Car Company v. Their Workman
[1963] Supp. 2. S.C.R. 16 considered.
(iii) The Tribunal was not justified in creating two classes of
higher unskilled and lower unskilled in the category of unskilled
factory-workmen in the matter of fixation of wage-scales.
(iv) Employees getting same wages should get the same scales
of dearness allowance irrespective of whether they were working
as clerks, or members of subordinate staff or factory-workmen.
(v) In fixing the same rates of dearness allowance for factory-
.,
workmen as for clerical staff, it was necessary for the Tribunal when
ma1fog comparisons to take into account the total wage packet
and then compare it with the total wage packet of comparable
-
•
5 S.C.R.
SUPREME COURT REPORTS
363
concerns and thus arrive at a just figure for basic wage for each
1963
category of factory-workmen.
(vi) There is nothing in law to prevent an industrial tribunal Greaves Cotton
from granting adjustments to the employees in the revised wage
and Co. and
scales even in a case where previously pay-scales "ere in existence,
Others
but this has to be done sparingly, taking into consideration the
v
facts and circumstances of each case.
Their Workmen
CIVIL APPELLATE JURISDICTION: Civil Appeals
Nos. 272 to 280 of 1962.
Appeals by special leave from the Award dated
June 3, 1960, in reference (IT) Nos. 84 and 251 of
1959, June 15, 1960, in References (IT) Nos. 112
and 252 of 1959, June 16, 1960, in References (IT)
Nos. 121 of 1959, and 7 of 1960, June 15, 1960, in
References (IT) Nos. 123, 180 and 236 of 1959 of the
Industrial Tribunal, Maharashtra at Bombay.
S. V. Gupte, Additional Solicitor-General N. V.
Phadke, J.B. Dadachanji, 0. C. Mathur and Ravinder
Narain for the appellants (in all the appeals).
M.C. Setalvad, K.T. Sule, Madan G. Phadnis,
Jitendra Sharma and Janardan Sharma, for the res-
pondents (in C.A. No. 272/1962).
K.T. Sule, Madan G. Phadnis, Jitendra Sharma
and Janardan Sharma, for the respondents (in C. As .
Nos. 273-280/62).
November 14, 1963. The Judgment of the Court
was delivered by
WANCHOO J.-1hese nine appeals by special
Wanchoo J.
leave arise out of the awards of the Industrial Tribunal
Bombay and will be dealt with together.
Ther~
wer~ disputes between the four appellants--com-
pames and the respondents, their workmen which
we!e referred . for adjudication to the Iddustrial
Tnbunal by rune reference-orders on various dates
bet:ween April. to December 1959. The main dispute
which gave nse to the references was with respect
to wages, . dearness allowance and gratuity. The
references i_ncluded other items also but we are not
concerned m the present appeals with those items
Of the four companies who are the appellants betor~
364
SUPREME COURT REPORTS
[1964]
1963
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