BRITANNIA BISCUIT COMPANY LTD. Vs. ITS WORKMEN

JUDGEMENT

(1.) THIS is a reference by the Government of Bombay for adjudication of a dispute between the Britannia Biscuit Company, Ltd., Bombay, and the workmen (excluding clerical staff) employed under it over the following demands : -

(2.) IN the statement of claim filed on behalf of the workmen by the General Kamgar Union (Red Flag) it has stated that the company was started in January 1925 with head office and factory at Calcutta. At that time it was a limb of a British concern, Peak Freerst, Ltd. The Bombay factory was put up in 1938 and is the largest of its kind in Bombay and was further expanded with modern automatic machines in 1953. The auto plant was installed at a cost of Rs. 7 1/2 lakhs. The Company has another factory at Delhi. The Calcutta factory was also expanded with the installation of two auto plants, and the head office was remodeled at a cost of Rs. 30 lakhs in 1953. The Company is the premier concern in the biscuit manufacturing industry in India and has been enjoying prosperity. The Bombay factory employs about 250 daily rated workmen and 40 monthly -rated workmen (excluding clerical staff), while the Calcutta factory employs about 600 workmen. The company has, on a capital of Rs. 46 lakhs, built up reserves to the tune of Rs. 32 lakhs. The sales have been going up every year and the company has been paying handsome dividends to the shareholders. As a result of the policy of Government to protect indigenous products from competition by imported goods, there are good prospects for the industry. The workers' wages have been stagnated to a certain level of wages fixed 10 to 12 years ago. The minimum wage is Rs. 1 -4 -0 per day and so the gap between the actual wage and the living wage is large.

(3.) THE Company has in its written statement stated that in spite of its fluctuating profits it has paid to its workmen bonus equivalent to one -sixth of their earnings for several years except from the year 1952 -53 when bonus equivalent to one -twelfth of the total Basic earnings was given. The company is struggling hard to obtain a foothold in the export market. It has to encounter serious competitions with other manufacturers. The wages and dearness allowances of the workmen were revised as recently as 8 March 1956 by the award of the Late Shri. S. H. Naik, in reference (I.T.) No. 4 of 1955 1956 I.C.R. 883. The Company has been paying dearness allowance at the rate of the revised textile scale, which is not the case with the other biscuit companies. It has also been providing free medical aid to the workmen, and has both provident fund and gratuity schemes. The company has further stated that according to the Full Bench Formula of the Labour Appellate Tribunal there is a deficit of Rs. 10 lakhs for the year 1954 -55 and Rs. 7 lakhs for the year 1955 -56 The workmen have been receiving not only a fair but a very generous deal because according to the formula of the Labour Appellate Tribunal the workmen would not have been entitled to receive the bonus which they have been given in the past years. The Company has denied that the gap between the actual wage of the workmen and the living wage is large. Only a small percentage, not exceeding 30 per cent of the total number of workmen, are in the unskilled category and they are on scales of Rs. 1 -4 -0 per day going up to Rs. 1 -12 -0 per day. Only permanent workmen get the minimum of Rs. 1 -4 -0 per day. The company has submitted that there is no justification for paying any more bonus than the bonus already paid.