COOPER ENGINEERING LTD. Vs. B.B. VAGYANI

JUDGEMENT

(1.) THIS petition raises an interesting question as to whether a notice of change reducing the number or working days from six to five days a week and converting the sixth working day into a day of leave without wages would be a change within the meaning of Section 9A read with the fourth schedule of the Industrial Disputes Act, 1947.

(2.) THE question arises under the following circumstances: The petitioner Cooper Engineering Limited is a company manufacturing diesel oil engines, looms etc. situate at Satara Road in the District of Satara. It appears that because of the serious slump during the years 1969 -70 by March 1970 as many as 5,500 diesel oil engines which were manufactured by the factory remained unsold and the number went to 12,000 by the end of May 1970. Having regard to this state of slump in the manufacturing industry all over India, while some of the factories actually closed business, it appears that the petitioner -company tried to negotiate with their employees in a bid to avoid retrenchment. Alternate suggestions were made by the representatives of the employees' union. Ultimately on May 9, 1970, the petitioner -company gave a notice of change about its intention of introducing a five day week scheme and grant of unpaid leave scheme. The matter was thereafter taken in conciliation and there was a failure report submitted on May 22, 1970. The Government however, refused to make a reference.

(3.) THE petitions were naturally resisted by the employer. It was contended on behalf of the employer in all the cases that since the change in the conditions of service of workers from six day working week to five day week and one day leave without wages was brought about by following the procedure provided by Section 9A of the Act, the authority under the Payment of Wages Act, had no jurisdiction to proceed with the applications under the Payment of Wages Act.