GREAVES COTTON AND CO LTD Vs. ITS WORKMEN

JUDGEMENT

(1.) THIS is a reference by the Government of Bombay under S. 12(5) of the Industrial Disputes Act, 1947, for adjudication of a dispute between Greaves Cotton & Co., Ltd., Bombay, and its workmen over the following demand : - 'Every employee should be paid bonus for the year 1956 -57 equivalent to one -half of his basic earnings (inclusive of overtime earnings and acting and comptist allowances) during the year.'

(2.) IN the statement of claim filed on behalf of the workmen by the Greaves Cotton and Allied Companies Employees' Union, it is stated that the wages and salaries of the workmen are quite inadequate and far below the living wage. An adequate bonus should be given towards filling the gap between the existing wage and the living wage. The company has made a large profit during the year. It is spending large amounts on its covenanted staff and the general policy of the company is to benefit more the highly placed officers; bonus to officers should not be taken into account in making the bonus calculations.

(3.) IN the bonus dispute in this company for the year 1955 -56, I awarded bonus equal to one -third of the basic earnings (excluding allowances and overtime) [see award published in the Bombay Government Gazette, dated 6 March, 1958, at p. 1181]. Against this decision, a writ petition was made to the High Court. The parties compromised in the High Court. The consent order was as follows : - 'Without prejudice to the rights, contentions and submissions of either party made in the petition and in the affidavits and also without prejudice to the rights and contentions of either party in respect of bonus of any subsequent year or years, it is agreed that the workmen will accept as bonus for the year in question the amount already offered by the company plus 50 per cent of the excess of the bonus awarded by the first respondent over the amount already offered by the company.' As the order was varied without prejudice to the rights and contentions of both the parties in the writ petition, it has been urged by the company and conceded by Sri Sule on behalf of the union that nothing which has been decided in that bonus case operates as res judicata in the present case. - - - -