MADURAI COAST EMPLOYEES UNION Vs. MADURA COAST LTD.

JUDGEMENT

(1.) THE Industrial Tribunal has ruled on a wage reference that was referred to it for adjudication. The union has confined the challenge before the Court to the award to the extent to which it accepted the plea of the management in a notice of change under Section 9A of the Industrial Disputes Act, 1947 and substituted a fresh scheme for dearness allowance for the existing scheme which had held the field for over 30 years. The existing pattern of providing dearness allowance was based on a dual linkage -linkage based on stabs of basic pay and linked to the Consumer Price Index. As a result of the award, the Tribunal accepted the case of the management and while removing the linkage with basic pay approved the payment of dearness allowance confined only to a variation based on the Consumer Price Index. The Union representing the workmen challenges the award to this extent under Article 226 of the Constitution.

(2.) MADURA Coats Limited came into existence on 1st July 1974 upon an amalgamation of three Companies, J. and P. Coats India Pvt. Ltd., A and F. Harvey Ltd. and Madura Mills Co. Ltd. The establishment at Palton Road, Mumbai, in which a majority of the workmen covered by the reference are employed, was an establishment of J. & P. Coats India Pvt. Ltd. prior to amalgamation. There was an industrial settlement of 1971 and upon its termination, the Union had raised fresh demands on 3rd March 1975. The management issued a notice of change for introducing a new scheme for dearness allowance which was withdrawn and a settlement was entered into in respect of the demands of the workmen in terms whereof an award was passed in an industrial adjudication. Upon the expiry of the award, the last wage settlement was entered into between the Union and the management 25 years ago on 22nd January 1980. There has been no wage revision since then. On the eve of the expiry of the settlement, the Union raised a Charter of Demands on 13th November 1982. On 6th April 1983. the "Dearness Allowance Existing management issued a notice of change under Section 9A of the Industrial Disputes Act, 1947.

(3.) THE management in its notice of change sought the introduction of the following scheme of dearness allowance with effect from 1st January 1983, namely: Basic Pay Slab Bombay Consumer Variation for Price Index 10 points (+) or ( -) Range 1621 -1630 Points "Rs. 1 to 100 1000% 5% Rs.101 to Rs.200 500% 2.5% Rs. 210 to Rs.300 250% 1.25% Rs.301 and above 125% 0.625% Minimum Dearness Allowance: Rs.1000/ -Minimum Variation: Rs. 5/ -"