Case Note & Summary
The petitioner, Ganesh Industries, an employer engaged in trading of Papad, challenged an Award dated 11 June 2019 passed by the Industrial Court, Mumbai, which partly allowed a Reference filed by the respondent-Union, Sarva Mazdoor Sangh, representing the workers. The Reference raised 21 demands relating to wages, allowances, and other service conditions. The Industrial Court adjudicated 15 demands, granting relief on some including ad-hoc rise in basic wages and education allowance. The employer restricted its challenge in the writ petition to only two demands: ad-hoc rise in basic wages and education allowance. The High Court, after hearing both sides, held that the Industrial Court had jurisdiction to grant ad-hoc wage rise based on comparison with similar units, and the employer's challenge on this ground failed. However, regarding education allowance, the High Court found that the union had not led any evidence to establish the prevalent practice in comparable units, and thus the Industrial Court's award on this demand was unsustainable. The High Court partly allowed the petition, setting aside the award on education allowance while upholding the rest.
Headnote
A) Industrial Law - Wage Revision - Ad-hoc Rise in Basic Wages - Industrial Disputes Act, 1947 - The Industrial Court granted ad-hoc rise in basic wages based on comparison with similar units. The High Court held that the Industrial Court has jurisdiction to fix wages and the comparison with comparable units is a valid method. The employer's challenge on this ground was dismissed. (Paras 2-10) B) Industrial Law - Education Allowance - Burden of Proof - Industrial Disputes Act, 1947 - The Industrial Court awarded education allowance without any evidence on record regarding the prevalent practice in comparable units. The High Court set aside this part of the award, holding that the union failed to discharge its burden of proof. (Paras 11-15)
Issue of Consideration
Whether the Industrial Court's award granting ad-hoc rise in basic wages and education allowance to workers is sustainable in law and on facts.
Final Decision
Petition partly allowed. The award of the Industrial Court regarding ad-hoc rise in basic wages is upheld. The award regarding education allowance is set aside.
Law Points
- Industrial Court's jurisdiction under Industrial Disputes Act
- 1947 to adjudicate wage demands
- Ad-hoc wage rise based on comparable units
- Education allowance as part of wages
- Burden of proof on union for allowances
