KIRLOSKAR OIL ENGINES LIMITED Vs. ITS WORKMEN

JUDGEMENT

(1.) This appeal by special leave arises between M/s. Kirloskar Oil Engines Ltd. (hereinafter called the appellant) and its workmen who fall in three categories. The first two are represented by two unions respectively and the last one who are not represented by any union. These workmen will hereafter be called the respondents. The appeal is in respect of the latter's claim for bonus for the year ended 31-3-1955. The appellant is a public limited company and does business of manufacturing oil engines at Kirkee, Poona. The appellant was registered under the Indian Companies Act, 1913 in the year 1946, and it went into production from June 1949. The accounting year of the appellant ends on March 31. The appellant has adopted for its workmen the wage-structure prescribed by the Standardisation Committee (Engineering), Bombay, and it pays to its workmen, in addition to their normal wages and dearness allowance, production incentive bonus and attendance bonus. Besides, the appellant gives other amenities to its workmen. In the result the appellant claims that on the whole the wages paid by it to its workmen amount almost to a living wage.

(2.) The respondents disputed this last allegation. They contended that the wages paid to them together with the production bonus and attendance bonus as well as other amenities provided for them fall far short of a living wage and they were entitled to claim bonus from the available surplus of the trading profits of the appellant. They accordingly made a demand for bonus for the year in question equal to 1/3 of their earnings of that year immediately and without attaching any condition.

(3.) The industrial dispute to which this demand gave rise was referred to the conciliation officer under S. 12 (4) of the Industrial Disputes Act, 1947 (14 of 1947) by the Government of Bombay. The attempt at conciliation however failed; and on receiving the report of the conciliation officer the Government referred the dispute to the Industrial Tribunal, Bombay, under. S. 12 (5) of the said Act. By its award delivered on 9-1-1957, the tribunal directed the appellant to pay to the respondents bonus equal to 1/8 of their basic earnings (exclusive of allowances and production bonus) within a period of two months from the date the award would become enforceable subject to two conditions specified in the award. It is against this award that the appellant has preferred the present appeal.