LexWORKMEN EMPLOYED BY INDIAN OXYGEN LTD. versus INDIAN OXYGEN LTD.
Open in Lexace · Ask the AI about this caseJudgment (excerpt)
- - WORKMEN EMPLOYED BY INDIAN OXYGEN LTD. v. INDIAN OXYGEN LTD. May 2, 1985 [D.A. DESAI, V. BALAKRISHNA ERADI AND V. KHALID, JJ.] Ill Labour and Servlces-U.P. Industrial Disputes Act 1947~1ndustrial A B Undertaking an all-lndia concern-Unit of a multi-national Company-Dearness C allowance-Uniformity in dearness allowance for workmen of various units based on all-India average conswner price index-Whether destructive of concept of 'equality'. 'DearnesJ al/owance'-Formula/or a fair and just dearness a/lowanc~ Principles of-Revision of dearness allowance-When arises-Industry-cum-region principle-Application of-·Adjudication and linking of conversion factor- emphasised. Settlement between n1anagement and one of the Unions-Whether could be starting point of revision of dearness formula-Dearness allowance-Linked to cost of living index in the centre where the workn1an is ernployed-Neutralisa- tion-Application of industry-cun1-region principle. In the respondent-Company there were two rival Unions of workmen, namely, Kararnchari Union and Sharmik Sangh. The Karamchari Union espoused the demand of the workmen employed by the Company in its Kanpur unit for upward revision of dearness allowance following an award of the Industrial Tribunal Delhi by which the dearness allowance of the workmen employed in the Delhi unit was Jinked to the consun1er price index for Delhi prepared by Labour Bureau, Simla, which substantially increased the dearness allowance of workmen posted at Delhi. The Company in its attempt to thwart the demand being pursued by the Kararnchari Union, entered into a settlement with the Shramik Sa11gh in respect of dearness allowance and then approached the Labour Commissioner for registering the settlement Failing to obtain the registration, the Company utilaterally enforced the new scheme of dearness allowance linked to a11-Jndia average consumer price index prepared by Labour Bureau, Simla. The Karamchari Union did not accept the revised formula and presSed its demand. The dispute was referred for adjudication. D E F G Before the Tribunal the Company contended : (I) that the settlement would be binding on the members of the Karamchari Union and the dispute H does not require adjudication on merits, and (2) that the Company is desirous of linking dearness allowance to all-India averaie consumer price index for A B c D E F G H 112 SUPREME COURT REPORTS (1985] SU PPL. s.c.a. working class with base 1960-100 and the Tribunal should avoid accepting the demand of a few workmen. The tribunal directed that tho workmen of the Kanpur unit of the Com- pany should be paid dearness allowance linked to the all-India consumer price index (1960-100) for Kanpur Centre compiled by the Labour Bureau, Simla. On the question of neutralisation, no change was allowed. Partly allowing the appeal of the workmen, HELD : I. The workmen of the Kanpur unit of the Company should be paid the dearness allowance according to all-India consumer price index number for Kanpur (1960-100) compiled by Labour Bureau Simla after applying conversion factor also called the linking factor of 4.83. Their dear- ness allowance cannot be linked to all-India average consumer price index. [125 B·CJ 2. The Tribunal Committed a grave error in accepting collusive settle- ment as the starting point of the revision. (122 HJ 3, Uniformity, to an uninformed mind, appears to be attractive. But, sometimes uniformity a1nongst dissimilar persons becomes counter-productive. Uniformity and equality have to be an1ongst equals measured by a common denominator. The implementation or the Constitutional aspiration of 'equal pay for equal work' can be appreciated. In the matter of basic wages it is a consummation devbutely to be wished. But when it conies to dearness allowance any attempt at uniformity between workmen in metropolitan areas and in smaller centres would be destructive of the concept of dearness allowance. [116 G·HJ Dearness allowance is directly related to the erosion of real wages by constant upward spiraling of the prices of basic necessities and as a sequal to the inflationary input, the fall in the purchasing power of the rupee. It is a notorious phenomenon hitherto unquestioned that price rise variee from centre to centre, [117 A] Dearness allowance is inextricably intertwined with price rise, it being an attempt to compensate loss in real wages on account of price rise
Excerpt shown. Read the full judgment & AI analysis in Lexace.