RALLIS INDIA LTD., BOMBAY Vs. ITS WORKMAN

JUDGEMENT

(1.) THIS is a reference by the Government of Maharashtra under S. 10(1)(d) read with S. 12(5) of the Industrial Disputes Act for adjudication of a dispute between Rallis India, Ltd., and the workmen employed under it in its head office and allied offices over the following demands : 'The company should pay all its workmen unconditional bonus equivalent to five -twelfths of their earnings including salary, wages, dearness allowance, during the year 1 September 1962 to 31 August 1963.'

(2.) IN the statement of claim by the Rallis India, Ltd., Lower Grade Staff Union, it is stated, inter alia, as follows. The company was incorporated in 1948. It has an all -India distribution and service organization with its head office in Calcutta and branches at various cities and towns in India. For the year ending 31 August 1963, the company has made a profit of Rs. 86 lakhs as against Rs. 44 lakhs for the previous year for which bonus of three moths' basic wage was paid. The union submitted a demand for five months' total earnings as bonus for the year 1962 -63. The union states that having regard to the enormous profit made, the demand is justified.

(3.) THE union refers to the history of the company and its various activities and the merger with it from 1 May 1962 of Teddington Chemical Factory, Ltd. For the year 1962 -63 the company, according to its practice in the past, declared an interim bonus of one month's basic salary. Subsequently it paid further two months' basic wages as bonus to the clerical and lower grade staff. The union wrote to the company that the acceptance of bonus was subject to its demand for adequate bonus when the financial position was known. The company has made a profit of Rs. 79.56 lakhs before charging depreciation. The wages of the workmen are quite inadequate. The union goes on to say that for the purpose of arriving at the gross profit certain items should be added. The company is spending extravagantly on its executive staff. Officers are paid bonus at the same rate and top executives have been paid on a lavish scale. In calculating bonus, bonus to officers drawing over Rs. 500 per month should not be taken into consideration.