IMPORTANT POINT
Pay revision – To determine comparability of units applying industry-cum-region test, financial capacity of employer would be a strong factor.

JUDGMENT :

ANIRUDDHA BOSE, J.

1. The two appeals (i.e. Civil Appeal Nos. 2745 and 2754 of 2023) arise out of a judgment delivered by a learned Single Judge of the High Court of Bombay on 25.07.2019 directing, inter-alia, wage revisions pertaining to the workmen of VVF India Limited (“the employer”) working in two units at Sewree and Sion. Civil Appeal No. 2744 of 2023 has been instituted by the employees union (“the union”) against a judgment of the High Court delivered on 22.06.2021 dismissing the union’s petition for review of the judgment passed on 25.07.2019. Argument of the union in the review petition was that their submissions relating to certain allowances were not considered in the main judgment. The employer is the appellant in Civil Appeal No. 2754 of 2023 and the union is the appellant in Civil Appeal No. 2744 of 2023 as also Civil Appeal No. 2745 of 2023.

2. The present proceedings have their origin in a charter of demand raised by the union on 04.03.2008. The demand was in respect of altogether 146 workmen, out of which 80 were engaged at the employer’s establishment at Sewree and 66 of them employed at Sion, both being situated within Mumbai. We find from the judgment delivered on 24.07.2019 (which we shall henceforth refer to as the judgment under appeal) that the original corporate entity VVF Ltd. underwent a demerger process and the units of the company at Sion and Taloja went to VVF India Ltd., the resulting company, during pendency of the reference, arising from the charter of demand.

3. The demands of the Union would appear from the charter of demand and they primarily relate to prayers for revision in pay scale/wages/salaries along with certain allowances such as leave facilities and gratuity. The charter of demand for the year 2008 to 2011 were under the following heads:

“The Charter of Demand for the corresponding year 2008 to 2011 is as follows:

1. Revision in the Pay Scale/Salary: The Old Pay Scale/Salary grade should be replaced by the New or Revised Pay Scale to the Categories of Workmen and Staff, which is annexed hereto as Annexure I & II.

2. Adjustment:

(a) The present basic of employees/staff as in annexure I & II should brought up to the level of minimum of wage-scales wherever they are below.

(b) 'Those whose present wages of basic do not fit in any stages of their respective revised wage-scales and fall in between two stages, they should be stepped up to nearest highest stages in the scales.

(c) On doing so (a) & (b) above every employees/staff should be granted additional increment in their respective wage-scales as indicated below:

(i) Those who have put service of up to 5 years - 1 increment

(ii) Those who have put service of more than 5 years but less than 10 years - 2 increment

(iii) Those who have put service of more than 10 yean but less than 15 years - 3 increment

(iv) Those who have put service of more than 15 years but less than 20 years - 4 increment

(v) those who have put service of more than 20 years but less than 25 years - 5 increment

(vi) Those who have put service of more than 25 years - 6 increment

3. Fixed Dearness Allowance (FDA): The Fixed Dearness Allowance should be revised from Rs. 225/- per month to Rs. 2225/- per month, which shall stand reduced oil prorata on loss of pay.

4. Variable Dearness Allowance: TBC Variable Dearness Allowance should be revised and increased to 50% respective grade wise of the present Variable Dearness Allowance.

5. House Remuneration Allowance: The House Remuneration Allowance to be increased to 20% of the basic wages and Dearness Allowance or to Rs. 2000/- per month, whichever is higher

6. Shift Allowance: The Shift Allowances should be increased in all categories irrespective of any shift he worked, which is as follows:

1st Shift Allowance Rs. 20/-

2nd Shift Allowance Rs. 30/-

3rd Shift Allowance Rs. 50/-

7. Travelling Conveyance Allowance: Tite Travelling Conveyance allowances should be given to all Employees amounting to Rs. 1000 per month.

8. Medical Allowance