MENON BEARING LTD Vs. BHARATIYA KAMGAR

JUDGEMENT

(1.) Rule, by consent of the learned counsel made returnable forthwith. Counsel appearing for the Respondent waives service. With the consent of the learned counsel, the matter is taken up for hearing and final disposal.

(2.) The Petitioner is engaged in the manufacture of bearings for automobiles and is a supplier to automobile manufacturers. A settlement was entered into on 9th April, 2006 with the recognized union under which a graded scale of incentives came to be provided to the workmen. The minimum incentive of Rs. 4,800/- per month is based on a cost of production of Rs. 160 lacs whereas the maximum incentive of Rs. 11,700/- is based on a cost of production of Rs. 230 lacs. The other clauses of the settlement including Clauses 8, 11, 12 and 13 provide for working out the terms agreed upon by the parties for the payment of incentives. Under Clause 11 it has been stipulated that the minimum incentive is based on a manpower strength of 132 persons and the existing complement of machinery. Clause 12 provides that in the event that the workers do not achieve the production norms and the employer has to engage additional work force, the payments to the additional workers shall be adjusted against the incentives. Clause 13 specifically recognizes that the management was contemplating the installation of modern machinery to meet the demands of its customers.

(3.) In pursuance of the settlement, incentives have admittedly been paid to the workers. The incentive charts have been prepared in consultation with the office bearers of the union and are signed on behalf of the management and the union. During the period between January, 2007 and May, 2008 the incentives have ranged between Rs. 4,481/- for the month of September, 2007 and Rs. 11,133/- for the month of May, 2007. The incentives paid are as follows : <p>Months Incentives paid (in Rs.) January, 2007 7476.11 February, 2007 7892.4 March, 2007 10335.08 April, 2007 10990 May, 2007 11133 June, 2007 1.0920.16 July, 2007 4917.6 August, 2007 4630 September, 2007 4481 October, 2007 6253 November, 2007 9191 December, 2007 9910 January, 2008 10483.82 February, 2008 6473 March, 2008 6843.31 April, 2008 5302.76 May, 2008 6686.25