BARODA BOROUGH MUNICIPALITY Vs. THEIR WORKMEN BHANGI KAMDARS

JUDGEMENT

(1.) This industrial dispute between the Baroda Borough Municipality, Baroda, and the workmen (Bhangi Kamdars) employed under it, was referred under Sub-section (5) of S. 12 of the Industrial Disputes Act, 1947, by the Government of Bombay, Development Department Order No. AJB. 2555, dated 19 April, 1955, for adjudication to the tribunal consisting of Sri Salim M. Merchant. As the services of Sri Merchant have ceased to be available the Government, in exercise of the powers conferred by Sub-section (2) of S. 8 of the Act, was pleased to appoint me in his place. The demand of the workmen is stated in the schedule annexed to the said order of reference and it is as follows :- Schedule Provident fund should be deducted on the basis 1/12 of yearly wages.

(2.) After the usual notices were issued the statement of claim on behalf of the workmen concerned was filed on 27 May 1955 by the secretary of the Baroda City Bhangi Workers' Union. The written statement was filed by the president of the Baroda Borough Municipality on 18 June 1955 on behalf of the municipality.

(3.) The present dispute is as regards contribution of provident fund at the rate of 1/12 of the yearly wages. The contentions raised by the municipality are briefly as follows. That contribution at the rate of one anna in a rupee towards the provident fund is reasonable and forms a substantial retirement benefit; that under the provisions of the Bombay Municipal Boroughs Act the municipality has got to get its rules or amendments or variations thereof duly sanctioned by the Provincial Government; that the financial position of the municipality is so precarious that it can ill-afford to bear any more financial burden; that the demand of the union for contribution at 1/12 of the annual wages including dearness allowance if granted would cripple the municipality and disable it from functioning; that if the demand is awarded the municipality will be obliged to make contributions at the same rate in respect of the other employees serving under it, and that would cast a burden on the municipality which it would be unable to bear, and that a long-range scheme such as a scheme for provident fund should not be lightly disturbed.