SHIVA GLASS WORKS CO LIMITED Vs. THEIR WORKMEN

JUDGEMENT

(1.) This appeal by special leave, impugns the validity and correctness of the reversing judgment and order, dated 20-11-1956, of the Labour Appellate Tribunal of India, Calcutta, whereby it directed the reinstatement, with full wages, of 83 workmen of the appellant company.

(2.) The facts leading up to this appeal may shortly be stated as follows:The appellant is a limited liability company which was incorporated in 1949, with its head office at Calcutta. It has two Factories known as Factory No. 1 and Factory No. 2. We are here concerned with the workmen of Factory No. 1. The Factory employs about 425 workmen, for manufacturing goods. It is stated that at the instigation of outsiders, the workmen took a concerted action of "go-slow", with the result that the production of the Factory began to decline, and by the month of June, 1955, the production went down by 42 per cent. On various dates in June, 1955, the appellant gave notices and warnings to its workmen, but without any result. The workmen also resorted to several "sit-down" strikes, and on 24-6-1955, there was a complete stoppage of work for two hours. As a consequence of the workmen's "go-slow" policy and "sit-down" strikes, the Company suffered a heavy loss. As the appellant's warnings and notices to the workmen proved unavailing, it had no option but to declare a lock-out on 4-7-l955. The matter was forthwith reported to the Labour Commissioner and to the police authorities, with a view to taking security measures. During the pendency of the conciliation proceedings, the Shiva Glass Mazdoor Union, adopted a hostile attitude and threatened strike in Factory No. 2 also, if the lock-out in Factory No. 1, was not withdrawn. The leaders of the said Union resorted to several illegal and violent activities, resulting in a number of criminal cases. But in spite of all this, the majority of the workmen of Factory No. 1, were willing to come back to work peacefully, and as they were not inclined to support the obstructive policy and illegal activities of the Mazdoor Union aforesaid, they formed themselves into another Union named "Shiva Glass Employees' Union", with Janab A. M. A. Zaman, M. L. A., as the President. As the bulk of the workmen were eager to start working in Factory No. 1, they started negotiations through the Labour Commissioner, through whose intervention, a settlement was arrived at on 4-8-1955. It is not necessary for the purposes of this case to set out the terms of the agreement, beyond stating that the workmen were prepared to give a written undertaking that they would work peacefully, observe the discipline of the Company, and by hard word, make good the losses the Company had sustained, and "will give full production according to the Production Order of the Company in force at present". As a result of the agreement, the lock-out was lifted on 6-8-1955, and the Company gave repeated notices to the workmen on several dates between August 6 and 26, 1955 inviting all the workmen to re-join the Factory. The last notice extended time till August 29, for the workmen to join the Works. Most of the workmen joined their posts, and on 1-9-1955, the Company began to engage new hands in place of those workmen who had not chosen to join their posts.

(3.) In the meantime, the Mazdoor Union had been creating trouble in Factory No. 2 also, necessitating the making of a Reference by the Government of West Bengal to the Industrial Tribunal - Reference No. 278/ Dis, dated 20-1-1955. The said Reference culminated in a compromise Award, as a result of which, the workmen in Factory No.2 also, entered into terms similar to those which had been effected by the agreement between the new Union and the Management, as aforesaid. The workmen of factory No. 2 also similarly gave an undertaking to make up the losses in production, and to be of good behaviour.