(1.) On 4-6-1964 the workers of the Visakhapatnam Port Trust, through the General Secretary, The Visakhapatnam Harbour and Port Workers Union, issued a notice to the Chairman, Visakhapatnam Port Trust, informing him that if the demands listed in the Annexure to the notice were not settled, the workers would be compelled to go on strike. The workers complained to go on strike. The workers complained that the administration was indifferent to their grievances and was not taking any steps to have them settled by negotiation. Pursuant to the notice the workers went on strike from 8-7-1964 to 12-7-1964. On 13-7-1964, a settlement was reached between the Port Trust authorities and the Union of Workmen which was recorded by the Conciliation Officer. The Chairman of the Port Trust agreed that the demands of the workers should be referred for adjudication under the Industrial Disputes Act and the Union agreed to call off strike. Clause 4 of the terms of settlement reads as follows: -
(2.) The principal submission of Mr. Srinivasamurthi, learned Counsel for the Port Trust is that the Authority under the Payment of Wages Act has no jurisdiction to adjudicate upon questions relating the legality or reasonableness of a strike when the management is not attempting to penalise the workers in addition to deducting wages for the days of absence from duty.
(3.) Section 7(1) prescribes that the wages of an employed person shall be paid to him without deduction of any kind except those authorised by or under the Act. Section 7 (2) enumerates the kinds of deductions that may be made in accordance with the provisions of the accordance with the provisions of the Act. Item (b) with which we are concerned is `deduction for absence from duty. Sections 8 to 13 prescribe the conditions subject to which the deductions permitted by Section 7(2) may be made. In particular Section 9(1) explains `absence from duty for the purposes of Section 7 to mean only absence from the place where the employee is required to work under the contract of employment: Section 9(2) provides that the amount of deduction that may be made for absence from duty is proportion to the wage period. The proviso is Section 9(2), however, enables the employer to make a further deduction of an amount not exceeding wages for eight days if ten or more persons acting in concert, without due notice and without reasonable cause absent themselves from duty. In other words, the proviso to Section 9(2) enables the employer to make a penal deduction where ten or more employees go on an unjustified strike. It may be noticed that Section 9(2) does not prohibit any deduction from wages for absence from duty due to strike, justified or unjustified on the other hand, the proviso authorises a further deduction where workers absent themselves due to illegal strike. This does imply that ordinary deduction from wages for absence from duty is permissible where such absence is due to strike, justified or unjustified.