MANAGEMENT OF CHITTIVALASA JUTE MILLS Vs. PRINCIPAL SECRETARY TO GOVERNMENT LABOUR EMPLOYEMENT TRAINING AND FACTORIES DEPT GOVT OF A P

JUDGEMENT

(1.) This writ petition is filed seeking a Mandamus declaring the action of 1st respondent in issuing the impugned G.O.Rt. No. 1265 Labour Employment Training and Factories (Lab.I) Department dated 20.8.2009, prohibiting lockout declared by the petitioner-Company in its factory at Chittivalasa village, Bheemunipatnam Mandal, Visakhapatnam District as arbitrary, illegal and violative of principles of natural justice; consequently, to set aside the said G.O.

(2.) Petitioner is the Management of M/s Chittivalasa Jute Mills Limited, Chittivalasa, Bheemunipatnam Mandal, Visakhapatnam District. According to the petitioner, it manufactures jute products and about five thousand workers are employed in it. The financial position of the jute mill is not so sound. They are in crisis in view of competition with polythene bags. There are various industries, which were previously using jute bags for package of the products manufactured by them, now using polythene bags. Thus, the financial position of the jute industry has become precarious. Only the most efficient and low cost production mills are likely to survive. Further, there is acute shortage of raw material - jute and multi-fold rise in the price of raw-material year after year. Whereas, there is no proportionate increase in the unit price of finished product, to commensurate with the increase in the cost of raw-material. Thus, the petitioner- company was incurring heavy losses, year after year. Therefore, it became imperative on the part of the petitioner-company to reduce overheads including cost of production in all fronts, by taking various remedial measures by way of reorganization, re-engineering, rationalization etc. on par with other jute mills in India, to compete with the market and survive in the business,

(3.) While that being so, the Eastern Power Distribution Company Limited (EPDCL) imposed power cuts for the industries, with effect from 9.3.2009, including the petitioner- company, with proposal to give power holidays for two days continuously and also imposed restrictions not to consume power between 1,8.00 hours and 23.00 hours daily, until further orders. In order to overcome the power cut imposed by EPDCL, petitioner-company was left with no other option but to reorganize the shifts in the factory, for the optimum utilization of manpower and machinery during the time of supply of power. It is very costly affair to carry manufacturing operation with alternative fuel in the absence of power supply. Therefore, in order to minimize the losses, the petitioner-company reorganized the shifts in the factory by reducing the shifts, from three to two, w.e.f. 20.4.2009, in accordance with Section G(1) of Certified Standing Orders of the Company and also as per Clause 4 of the Settlement under Section 12(3) of the I.D. Act, 1947 between the petitioner-company and the then recognized Union, dated 23.8.1996. Accordingly, the petitioner-Company displayed a notice about reduction of shifts from three to two, by notice dated 18.4.2009 i.e. Saturday. On Monday i.e. 20.4.2009, the workmen, instead of reporting to duty as per the revised shift timings, reported as per the earlier shift timings, created unruly situation and attempted the following acts: