COLGATE-PALMOLIVE INDIA LTD Vs. THEIR WORKMEN

JUDGEMENT

(1.) THIS is a reference made by the Government of Bombay under S. 10 (2) of the Industrial Disputes Act, 1947 (XIV of 1947 ). The reference concerns a dispute raised by the Colgate-Palmolive Employees' Union, Bombay, on behalf of the employees of the said company regarding bonus for the year 1954. The union claimed bonus equivalent to six months' basic salary of the employees concerned and from that amount, it stated, two months' bonus already paid as annual gratification under the company's notice, dated 21 December, 1954, might be deducted. The company was not willing to pay anything in addition to what it had already paid. At the stage of conciliation both the parties agreed to submit the dispute for adjudication. Government, therefore, made the present reference.

(2.) COLGATE-PALMOLIVE (India), Ltd. , is a private limited concern carrying on business in India in soap and other toilet requisites. The company has its head office and three warehouses in Bombay. It has also warehouses at Calcutta and Madras. At New Delhi it carries on business though its authorized agents. The company gets its products manufactured in factories of other concerns in Bombay. As the company itself does not carry on the manufacturing operations it states that its business consists only in the sale and distribution of products mentioned above. But the union's case is that as the products are manufactured at the instance of the company, the company must be deemed to be a manufacturing concern. But whether this company is a manufacturing concern or only a selling and distributing concern is of little relevance in this case as the employees who have claimed bonus are members of the staff who are not concerned with the manufacturing side of the company's business.

(3.) THE union states that Colgate-Palmolive International of U. S. A. is the parent company of Colgate-Palmolive (India), Ltd. , and owns almost all the shares of the company in India. The number of workmen concerned with the present dispute is estimated to be about 80 in the joint statement submitted by the parties to Government.