STANDARD VACUUM REFINING COMPANY OF INDIA LTD Vs. THEIR WORKMEN

JUDGEMENT

(1.) This is a reference by the Government of Bombay under S. 10(1) of the Industrial Disputes Act, 1947, for adjudication of a dispute between the Standard Vacuum Company of India, Ltd., Bombay, and the workmen employed in refineries under it over the following demand :-

(2.) In the statement of claim, filed by the Petroleum Refineries Employees' Sabha, it is stated that the sabha has as its members a majority of the workmen employed by the company, that on 27 April, 1957, the Sabha made a demand for abolition of contract labour. While the demand was in conciliation the company terminated the contract of one of the contractors, viz., Gowri Construction Company, and replaced them by the Ramji Gordhan and Company. By the termination of contract of the former the company threw out of employment of about 67 workmen of whom 40 were subsequently taken up as fresh employees through the Ramji Gordhan and Company who have been given the contract for cleaning and maintaining the building and premises within the refinery. The work is of a permanent and continuing nature. Workmen employed through the contractor have no security of service. Their wages are low compared with those of regular workmen of the company and they do not get other benefits such as provident fund, gratuity, privilege leave, medical facilities, subsidised food and housing, etc., for which the regular workmen of the company are eligible. The union has pointed out that various commissions of inquiry have expressed themselves against contract labour. In this case the contractors' supervision over their employees is purely technical, the real employers being the refinery company. 3. The company has by its written statement replied that the work entrusted to the Ramji Gordhan and Company is not germane to the manufacturing process. So it is given to the contractor. The contract specifies the work to be performed and the company is not concerned with the number of persons employed by the contractor or the period of service for which they are engaged. Security of service, wages and other conditions of service are a matter of agreement between the contractor and his workers. A comparison of wages paid by the contractor with those paid in the refinery is irrelevant since the jobs are not comparable. In any case, existing legislation affords adequate protection to labour, whether contract or otherwise. The company is not concerned with any labour that the Ramji Gordhan and Company may engage for the fulfilment of the contract. Commissions of inquiry have not categoricaily recommended abolition of contract labour. The true test as to when it becomes necessary to employ contract labour is that given in the case decided by the Labour Appellate Tribunal, 1957 -I L.L.J. 287 (sic), wherein the test laid down is :

(3.) The company has further submitted that the nature of the contract makes the contractor responsible for payment of all benefits under legislation, that the company does not exercise any supervision or control over the contractor's employees.