PREMIER AUTOMOBILES LTD Vs. ENGINEERING MAZDOOR SABHA

JUDGEMENT

(1.) This petition is directed at an order passed by the Industrial Court at Bombay on two complaints made under S. 28(1) of the Maharashtra Recognition of Trade Unions and Prevention of unfair Labour Practices Act, 1971 (hereinafter referred to as "the Act") and the decision of this petition turns on the construction of an agreement dated 31st December, 1966 entered into between a trade union by name Engineering Mazdoor Sabha and the petitioner, the Premier Automobiles Ltd. (hereinafter referred to as "the employer").

(2.) The agreement of 31st December, 1966 provides for a revision of incentive benefits payable to workmen in the employment of the employer. One of the various departments in the factory of the employer is known as Motor Production Department. In 1964, there was a settlement which resulted in a production incentive scheme and to that settlement, the employer and the Engineering Mazdoor Sabha were parties. It was this settlement which was varied by the settlement of 31st December, 1956. When the settlement of 31st December, 1966 was made, the Motor Production Department of the employer had 425 workmen. The settlement which can be better referred to as "the agreement" provided extra payment at the rate of 3.5% for 25 units over the basic production of 650 units up to the first target which was fixed at 900 units. Thus if the target of production reached 900 the increase in wages was to be 35%. In the second stage, the target was fixed at the level of 1250 units and the incentive payment was to be 4% for every 25 units over 900. Thus if the target of 1250 was reached, the additional wages would be increased by 56%. In a given case, therefore, if the maximum target was reached at 1250, the maximum production bonus payable to the employees was to be 91%.

(3.) For reasons which are not material for the purpose of this petition, the recognition of them Engineering Mazdoor Sabha was withdrawn some time in 1968. In September, 1970, 27 more persons were added in the Motor Production Department. The recognised union in 1970 was known as the Association of Engineering Workers (hereinafter referred to as the "recognised union"). A new agreement was arrived at on 9th January, 1971 between the employer and the recognised union. Certain changes were introduced in the scheme as contemplated by the 1966 agreement. In place of the initial base of 650 units, the initial base was raised to 725 units. The second stage target was raised to 1325 units in place of 1250 units, though the percentage per 25 units was retained as in the 1966 agreement.