Case Note & Summary
The dispute involved various textile mills that were nationalized under the Sick Textile Undertakings (Nationalization) Act, 1974, and subsequently transferred to the National Textile Corporation Ltd. (NTC). The staff and sub staff of these mills claimed 'equal pay for equal work' compared to their counterparts in corporate offices, highlighting a significant disparity in pay scales that had grown from 159% in 1987 to 642% in 2000. The matter was initially referred to the National Industrial Tribunal, which found that while there were similarities in work, the functions performed were not equivalent, thus denying the claim for equal pay. The Sathyam Committee later endorsed this finding but acknowledged the unjust treatment of mill workers due to prolonged litigation and lack of pay revisions. The Union of India argued against any financial relief due to ongoing rehabilitation schemes under the Board of Industrial and Financial Reconstruction (BIFR). However, the court emphasized the statutory liability of the Central Government to ensure wages and salaries for the workers and rejected the argument that rehabilitation schemes could justify the denial of relief. The court directed the Central Government to determine the extent of relief to be granted to the mill workers, ensuring a hearing for both management and workers, with a decision to be made within four months (Paras 1-6).
Headnote
A) Labour Law - Equal Pay for Equal Work - Claim for Pay Revision - Sick Textile Undertakings (Nationalization) Act, 1974, Section 5 - The court found that while the nature of work was not equal, the staff in mills had not received pay revisions for years, leading to significant disparity. The court directed the Central Government to assess and provide appropriate relief to the staff/sub staff working in the mills (Paras 1-6).
Issue of Consideration
Whether the staff/sub staff of the mills are entitled to equal pay for equal work compared to staff in corporate offices.
Final Decision
The court directed the Central Government to assess and provide appropriate relief to the staff/sub staff working in the mills, ensuring a hearing for both management and workers, with a decision to be made within four months and implemented within two months thereafter.
Law Points
- equal pay for equal work
- statutory liability
- Sick Textile Undertakings (Nationalization) Act
- 1974
- discrimination in pay scales
- rehabilitation schemes
