The classification of employees under the BIR Act hinges on roles and their pay structure, with a focus on basic pay rather than pay scale.

SANDEEP V. MARNE, J.

1. The Petition is filed by the Municipal Corporation of Greater Mumbai through the General Manager of Brihanmumbai Electric Supply and Transportation Undertaking (BEST) challenging judgement and order dated 14 February 2008 passed by the learned Member, Industrial Court, Mumbai allowing Complaint (ULP) No.160 of 2007 filed by Respondent- Union and holding that the Petitioner has engaged in unfair labour practices under Item 9 of Schedule IV of the Maharashtra Recognition of Trade Unions and Prohibition of Unfair Labour Practices Act, 1971 (MRTU & PULP Act). The Industrial Court has directed Petitioner to cease and desist from engaging in unfair labour practice in the matter of withdrawal of incentive bonus payable to officers of B-Grade effective February 2007. The Industrial Court has further directed Petitioner to pay arrears of incentive bonus with effect from February 2007 and to continue to pay the same till such time the said scheme is revised lawfully.

2. The Petitioner is a Municipal Corporation established under the provisions of Mumbai Municipal Corporations Act, 1888. It provides municipal transport service through BEST Undertaking. Respondent is a Union registered under the Trade Unions Act, 1926 and is also a representative and approved union under the provisions of Bombay Industrial Relations Act, 1946 (BIR Act). It was the case of the Respondent- Union that number of settlements were entered into between the employees and BEST from time to time under which the matters relating to the service conditions of the employees employed in the Transport section and in common departments of the Undertaking such as wages, allowances, incentive etc. were settled. By virtue of Settlement dated 21 February 1966 entered into between the Respondent-Union and BEST, it was decided that incentive bonus scheme will be determined for various jobs by negotiations between the Union and BEST. The incentive bonus scheme and its genesis in the principle of job evaluation was part of arbitration award commonly known as ‘Gokhale Award’. Thus, under the settlement dated 21 February 1966, the incentive was being paid to employees employed in different departments and different categories including bus drivers, traffic supervisory staff, working in the Depot, controlling operators, traffic assistants and traffic supervisors of traffic department and maintenance staff including supervisory staff. It is claimed that the employees, whose cause the Union espouses, are actually B grade employees who are glorified as B- Grade officers. It is contended by Respondent-Union that Grade B officers were also covered by various bilateral settlements entered into between the Union and BEST. The B grade officers are placed in three different scales as under:

3. The Chief Personnel Officer of BEST issued communication dated 14 March 2007 discontinuing payment of incentives bonus to officers of Undertaking under various incentive schemes. Aggrieved by the action of the Petitioner in discontinuing the payment of incentive bonus in respect of B Grade offic