Wage settlements in co-operative societies require prior approval from the Registrar, and if modified, must be supported by a valid rationale, ensuring employees’ claims are independently assessed based on merits.

ORDER :

D. BHARATHA CHAKRAVARTHY, J.

This Writ Petition is filed challenging the award passed by the I Additional Labour Court, Chennai, dated 12.08.2025 in O.P.No.216 of 2024. By the Government Order, dated 04.09.2024, the questions as to whether the Demand Nos.1 to 5, raised by the trade union, were justified and if so, to pass further orders, were referred for adjudication by the Labour Court. The Labour Court, by the impugned award, dated 12.08.2025 held that all the four demands raised by the respondent union are justified. Aggrieved by the same, this Writ Petition is filed.

2. The management namely, Tamil Nadu Co-operative Marketing Federation is an apex society registered under the Tamil Nadu Co-operative Societies Act , 1981. It is stated that the primary functions of the management are to identify the agricultural input requirements for the farmers and to arrange for storage and distribution of fertilizers, seeds, pesticides and agricultural implements through the co-operative outlets, to provide market support to the affiliated Member Co-operative Marketing Societies in procuring, storing and marketing of agricultural commodities, to provide storage facilities for perishable agricultural commodities and agro-based products by maintaining cold storage plants, to undertake manufacture of agricultural inputs such as granulated fertilisers, manure mixture, quality seeds and distribution of kerosene.

3. It is stated that the shareholders of the petitioner management are the primary co-operative marketing societies working on the taluk level in the districts of Thanjavur, Thiruvarur and Nagapattinam, the Thanjavur Co-operative Marketing Federation, Thiruvarur, Tamil Nadu Warehousing Corporation and the Government of Tamil Nadu. The first respondent is the trade union registered under the Trade Unions Act , 1926, representing the workmen under the petitioner management. With reference to the employees working under the petitioner management, it is stated that the revision of wages takes place once in five years. By a settlement entered into under Section 12 (3) of the Industrial Disputes Act , 1947, the last wage revision was for the period between 01.01.2017 upto 31.12.2021 and the same was approved by the Registrar of Co-operative Societies on 19.02.2019. Thus, the next wage revision fell due with effect from 01.01.2022.

4. The first respondent union raised several demands with reference to pay hike and several rounds of discussions were held with the management. Thereafter, a dispute was raised and there was conciliation before the Deputy Commissioner of Labour, Chennai and after holding conciliation at the headquarters, a settlement was agreed between the management and the workmen for 30% hike in the wages. Accordingly, a settlement under Section 12 (3) of the Industrial Disputes Act , 1947 was entered into on 14.07.2023. An understanding was reached between the workmen and the management to merge the Dearness Allowance along with the basic wages and to grant 30% hike of such merged wages and accordingly, to send a revised proposal to the Registrar of Co-operative Societies.

5. Pursuant thereto, on 28.07.2023, a detailed proposal was submitted by the management to the Registrar of Co-operative Societies. In the proposal, the details of the turn over of the federation in respect of the years 2019-2020, 2020-2021, 2021-2022, were given. The details of the profit and the expenditure incurred by way of salary