MODISTONE LIMITED Vs. MODISTONE EMPLOYEES UNION

JUDGEMENT

(1.) THIS petition under Article 226 of the Constitution of India challenges the order dated 29-3-1995 passed by the Industrial Court, Mumbai in Complaint (U. L. P.) No. 478 of 1976, a proceeding initiated under the provisions of the Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971, hereinafter referred to as the M. R. T. U. and P. U. L. P. Act.

(2.) THE petitioner is a company engaged in manufacture of automobile tyres, tubes and flaps. The 1st respondent is the union and represents the workers of the petitioner company. A settlement dated 28-9-1973 was signed between the petitioner and the Firestone Tyres employees union then representing the employees of the petitioner company revising the service conditions and also agreeing payment of bonus. Under Clause 27 of the said settlement the company agreed to continue the rate of payment of bonus at 20% without ceiling to all employees and also agreed to pay at the rate of 2% of the annual earning and the bonus was declared accordingly for the years ending on 31-10-1973 and 31-10-1974. In the year 1975 the company, however, paid bonus with a salary ceiling as well as bonus ceiling as per the Payment of Bonus Act, 1975, hereinafter referred to as the Bonus Act. The management of the company took up a stand that as a result of the amendment to the Bonus Act by 1975 Ordinance the existing settlement became non-est.

(3.) COMPLAINING the failure on the part of the company to pay bonus as per the settlement amounts to unfair labour practices falling under Item 9 Schedule IV of the M. R. T. U. and P. U. L. P. Act, respondent union lodged a Complaint (U. L. P.) No. 478 of 1976 under Chapter VI of the M. R. T. U. and P. U. L. P. Act. The contention of the union was that ever since the Ordinance under the Bonus Act was promulgated in 1965 the company was paying to its employees bonus at the rate stipulated irrespective of the ceiling that is the ceiling of Rs. 1800/- per annum to those drawing the salary between Rs. 750/- to Rs. 1600/- per month and introduction of the system was done unilaterally, and, therefore now the right is accured to those employees becoming a part of the service contract. It was urged that in a dispute between the company and the employees, a settlement was arrived on 6-11-1969 culminating in an award whereby under Clause 29 (1) it was specifically agreed between the parties and there was also an assurance by the company to the employees that all the existing benefits in previous award, settlement, custom and usage except as modified by the said settlement shall continue. The union contended that this commitment on the part of the company was honoured by them and the bonus was paid to the employees including employees drawing monthly salary above Rs. 750/- or Rs. 1600/- per month as per the custom, usage and the contract confirmed by the award and thus even those employees continued to earn advantage of 20% bonus on their salary without ceiling. By the settlement dated 28-9-1973 under Clause 27 the company agreed to pay bonus without any ceiling and 2% of the annual earning as additional payment to all the employees and the bonus was declared accordingly, for the years ending on 31-10-1973 and 31-10-1974. The union complained that by withholding 2% to all the employees the payment of excess above the ceiling to those falling within Rs. 750/- and 1600/- range and also depriving the employees who are in grade of above Rs 1600/- although the settlement speaks of the payment to all of them, the company has indulged in unfair labour practice as complained of and hence suitable directions under the relevant Act, were being sought for.