JUDGEMENT
GAJENDRAGADKAR, J. -
(1.) SEVENTEEN demands made by the respondents workmen against their employer, the appellant, the United Salt Works and Industries, Ltd., Kandla, were
referred to the arbitration of Antony and Vaidya under S.10A of the
Industrial Disputes Act XIV of 1947. On these demands parties led their
evidence before the arbitrators and in the end the arbitrators made their
award. Out of the demands awarded by the award, three demands from the
subject-matter of the present appeal which has been filed by the
appellant by special leave in this Court against the said award; they are
housing, contract labour and minimum wages.
(2.) IN regard to housing, the respondents' demand was that each labour family shall have a good tenement to live in without rent, and all the worker
shall have houses within three years. The arbitrators took the view that
the problem of housing the respondents required immediate attention of
the appellant. In cases like the present, observed the arbitrators, where
workers are made to work miles away from human habitation, they must be
provided with good housing accommodation. According to them, it is the
duty of the employers to see that workers are suitably lodged in pucca,
decent and sanitary and well-ventilated houses. Having made these
observations in Para. 16 of the award, the arbitrator decided to give
specific directions in Para. 17 in regard to the demand for housing. It
is against these directions that a serious grievance has been made by Sri
S. T. Desai on behalf of the appellant before us. The problem of housing
and the employer's liability in that behalf have been considered by this
Court in Patna Electric Supply Co., Ltd. v. Patna Electric Supply
Workers' Union [1959 - II L.L.J. 366]. In that case this Court has
observed that it would not be expedient in the present financial
condition of the industries in the country to impose additional costly
burden of providing housing facilities, for, providing housing facilities
should normally be the responsibility of the State. These observations,
no doubt, are not intended to lay down an invariable or inflexible rule.
Exceptions can and should be made where circumstances justify the
departure from the said observations. In the present case the position
has been simplified by reason of the fact that the appellant, while
obtaining an interim stay from this Court, gave an undertaking in the
following terms :"Subject to availability of materials -
(1) we propose to construct within our area during the next two years one-hundred more quarters in brick-cum-galvanized iron sheets of the type now existing; (2) flooring of one hundred and seventy galvanized iron sheet hutments in concrete; and (3) country tiles will be placed on galvanized iron sheet roofs."
We were told by Sri S. T. Desai that the appellant has carried out this undertaking and that the appellant was willing to undertake further to
make reasonable provision for housing for all its permanent employees.
This assurance, we think, would meet the ends of justice in the present
case. Sri Barot for the respondents, did not dispute this position. We
accordingly vary the directions given by the award in the light of the
appellant's undertaking which we accept.
(3.) THE next contention is in regard to contract labour. The demand made by the respondents in this behalf was that the workers must be paid their
wages directly by the management taking their signed receipts. It is
advisable to discontinue the system of so-called contract labour; there
should be no middle man; the contractors should be absorbed as mukaddams
with increased wages. This demand was met by the appellant in this way.
The only real contract work is the mud-work where this is essential.
Mud-work provides alternate employment during commencement of seasonal
repairs and during the season time when field-side activities happen to
be slack; all other jobs of piece-work nature are entrusted to casual
labour recruited, controlled and supervised by mukaddams. If any
alteration is to be made, then mukaddams who act as retainers and are not
workers, will not be required. On these contentions the award has
directed that the present system of paying commission to contractors and
mukaddams, after deducting it out of the wages due to labour, should be
abolished. The workmen should be the direct employees under the company
and each should be paid his due wages. The mukaddams should be taken over
as semi-skilled workmen at Rs. 2-6-0 per day and supervision of jobs by
groups of workmen should be entrusted to them. At the hearing of the
appeal before us Sri Barot agreed that he would have no objection to
contract labour in regard to mud-work. In regard to the mukaddam system
prevailing in work other than mud-work, Sri Barot contended that the
award should not be disturbed. It appears that for all practical purposes
workers whose work is supervised by mukaddams are employed by the
appellant to the workmen individually, the mukaddams deduct their
commission from the said wages, and that, according to the award, must be
stopped. In our opinion this direction is perfectly reasonable. If the
appellant desires that mukaddams are necessary for supervising the work
done by groups of workmen, it is perfectly entitled to do so but the
mukaddams would not be justified in deducting their commission from the
wages earned by the workmen. The mukaddams can and should be taken as
semi-skilled workmen and paid as directed by the award so that the
mukaddam system may continue but the workmen would get the security of
tenure and all other incidental benefits resulting from their employment
by the appellant directly as its workmen. In other words, all workmen
employed by the appellant in its works should be the employees of the
appellant for the purpose even though the mukaddams or contractors may
help the appellant in recruiting them and in supervising their work under
the appellant's directions.Under S. 3(13)(e) of the Bombay Industrial
Relations Act XI of 1947, workmen employed by a contractor, who in turn
is employed by the employer, become the workmen of the employer himself.
This Act is, however, not extended to the appellant's industry. That is
why we think it necessary to make it clear that the continuance of the
system of mukaddams will not affect the position of the workers employed
by the employer company itself. The labour force under the employment of
the appellant is indicated by the appellant in its statement in regard to
the wages paid at Kandla salt works. They are shown under two categories,
departmental and under mukaddams. Workmen shown under both the categories
will be treated as workmen employed by the appellant. That being so, we
do not think it necessary to interfere with the direction issued by the
award in regard to this demand, except that mud work may continue to be
done by contract labour.The last point raised is in regard to the
fixation of minimum wages. The demand of the respondents is set out by
the award in Para. 9 and the appellant's reply in Para. 9(a). The
question is then considered on the merits in the succeeding paragraphs
and in Para. 13 specific directions are issued category-wise. The
arbitrators have observed that the standard of living at Kandla is very
high. They examined the evidence which was led before them and came to
the concluding that the wages prescribed by them should be the minimum
wages payable by the appellant to its employees. The main contention
raised by Sri Desai is that in fixing the minimum wages, the arbitrators
have not considered the material which should be relevant if the problem
is tackled on industry-cum-region basis. Sri Desai, for instance,
referred us to the wage structure prescribed by the Labour Arbitration
Award in respect of salt works in Jamnager; and he contends that the
wages ordered to be paid by the appellant are higher than the Jamnager
wages. We do not think we can entertain this contention. In the demand of
minimum wages, the capacity of the employer to bear the burden is not
relevant. The determination of the question depends on the decision as to
the minimum requirements of the employees for bare subsistence. These
requirements have been duly considered by the arbitrators and they have
fixed the wage structure accordingly. In such a case this Court does not
generally entertain pleas intended to effect slight modification in the
said wage structure. Such questions are questions of fact on which
jurisdiction of this Court under Art. 136 is not generally allowed to be
invoked.;