Case Note & Summary
The dispute arose from a reference made by the Government of West Bengal to the Industrial Tribunal concerning the curtailment of unpaid festival holidays in the appellant company, which was engaged solely in the production of brakes and signalling equipment for the Indian Railways. The company had been declared a public utility service under Section 2(c)(vi) of the Industrial Disputes Act, 1947, and an essential service under the Defence of India Rules. The company employed about 1650 workmen across three factories in Calcutta. It granted ten paid holidays per year and an additional nine unpaid festival holidays, a practice not followed in any other major industry in the region. The company sought to discontinue the nine unpaid holidays, contending that they caused loss of wages and production and adversely affected the economy. The workmen opposed the curtailment, arguing that the practice was time-honoured and that discontinuance would provoke discontent and labour unrest. The Industrial Tribunal, by award dated March 11, 1968, held that there was no evidence that the Railways depended on the company to such an extent that production was suffering due to the number of holidays, and that long-standing facilities should not be curtailed. On appeal by special leave, the Supreme Court allowed the appeal and set aside the award. The Court held that the Tribunal was wholly oblivious of present-day conditions and the necessity for increased production, particularly in utility companies and companies producing essential services for the Railways. The Court observed that it is generally accepted that there are too many public holidays in India, and when the need for industrial production is urgent and paramount, it may be advisable to reduce the number of such holidays. The Court stated that a necessary step in the direction of increasing the country's productivity is the reduction of the number of holidays. It relied on Pfizer (P) Ltd. Bombay v. The Workmen and Associated Cement Staff Union v. Associated Cement Company, where holidays were reduced. The Court directed that the system of unpaid holidays would not continue with effect from January 1, 1973, and made no order as to costs.
Headnote
A) Labour Law - Curtailment of Unpaid Festival Holidays - Industrial Disputes Act, 1947, Section 2(c)(vi); Factories Act, 1948; Shops and Establishments Act; Employees' State Insurance Act, 1948 - The appellant, a unit of the engineering industry declared a public utility service and an essential service, sought to discontinue nine unpaid festival holidays in addition to ten paid holidays; the Industrial Tribunal refused curtailment relying on long-standing practice and absence of evidence of production loss; Supreme Court held that the tribunal was oblivious to present-day conditions and the necessity for increased production, particularly in essential services, and that reduction of holidays is a necessary step to increase productivity; accordingly set aside the award and directed that the system of unpaid holidays would not continue from January 1, 1973, without costs (Paras 831-834). B) Industrial Adjudication - Relevant Considerations - Productivity and Essential Services - Industrial Disputes Act, 1947, Section 2(c)(vi); Defence of India Rules - The court held that industrial adjudication must consider the urgent and paramount need for industrial production and that too many public holidays are generally accepted as detrimental; past practice of granting unpaid festival holidays could not outweigh the national interest in increased efficiency and production; followed Pfizer (P) Ltd. Bombay v. The Workmen and Associated Cement Staff Union v. Associated Cement Company where holidays were reduced (Paras 833-834).
Issue of Consideration
Whether the nine unpaid festival holidays allowed by the appellant company to its workmen in addition to ten paid holidays should be continued or curtailed.
Final Decision
The Supreme Court allowed the appeal, set aside the award of the Industrial Tribunal, and directed that the system of unpaid holidays would not continue with effect from January 1, 1973. No order as to costs was made.
Law Points
- Reduction of holidays is a necessary step to increase productivity
- industrial adjudication must consider present-day conditions and the needs of essential services
- long-standing practice alone is not decisive
- too many public holidays are detrimental to industrial production.
