High Court Of Madhya Pradesh
P. V. Dixit, C. J. and K. L. Pandey, J.
HARRIS MINERAL SUPPLY CO. - Appellant
Versus
SALIM M.MERCHANT - Respondents
Misc. Petn. 394 Of 1964
Decided On : 04/08/1965
In fixing the bare subsistance of the minimum wage the capacity of the employer need not be considered because it is the duty of the industrial employer to pay the basic minimum to his employees. Where a fair wage has to be fixed, the capacity of the industry to pay is one of the essential factors to be taken into consideration, and the capacity to pay is to be determined on industry cum-region basis after taking into account a fair cross-section of the industry. In determining the capacity of the industry to pay, a note has also to be taken of the elasticity of demand for the product and the possibility of tightening up or rationalising the organisation. AIR 1958 SC 576, AIR 1959 SC 676, AIR 1962 SC 12 AIR 1963 SC 1327, AIR 1964 SC 689, AIR 1964 SC 728 & AIR 1964 SC 861 referred to [Para 6
(2) Industrial Disputes Act, 1947-Ss. 25-4, 25-C-applicabilty of mine industry not working throughout the year-section not applicable-absence of declaration that it is 'seasonal' not material-lay off compensation or retention allowance not payable.
Provisions of section 25-C of the Act do not apply to a mine industry which cannot carryon the work during rainy season. Absence of a declaration by Central Government regarding the industry as seasonal does not affect the position. Under section 25-A read with section 25-C layoff compensation cannot be granted to workers in that industry. An award directing payment calling it 'retention allowance' will be invalid. [Para 8
(3) Industrial Disputes Act, 1917-S.10-Mines Act, 1952 –S. 49 -sick leave to workers-when may be allowed.
Grant of 7 days' sick leave under an award to workers who h3.ve been made permanent and who have out in 180 days' attendance in the year is not invalid. Chapter VII of the Mines Act does not bar grant of such sick leave under an award, while section 49 of that Act permits it. [Para 9
(4) Industrial Disputes Act, 1947-S. 2 (5)-workman-who is-designation is not the decisive factor-nature of work to be seen,
In determining whether an employee is or is not a manager, excluded from the definition of workman, what is decisive is not his designation but the nature of the work done by him. [Para 7
( 2 ) THE petitioners are owners of ochre mines situated in Jaitwara area of district satna. The employees of the mines presented as many as thirty-two demands against the petitioners and raised an industrial dispute. When the dispute could not be settled in conciliation proceedings, the Central Government, by an order made on 15th June 1962 under Section 10 (1) (d) of the Act referred to the industrial Tribunal Bombay, for adjudication ten matters arising out of the dispute and specified in a schedule annexed to the order. The Industrial Tribunal gave an award on those matters on 18th June 1964. The petitioners question the award in respect of the following issues:'
"1. Whether the present wage rates of the following categories of workmen employed in the ochre mines of Jaitwara area of the aforesaid employers are satisfactory; if not, to what revision of wage rates they are entitled and from which date: (1) Assistant Managers (ii) Clerks and Supervisors (iii) Mates (iv) Time-rated male labour (v) Time-rated female labour (vi)Piece-rated male labour (vii) Piece-rated female labour. (2) Whether the persons who are employed as mine managers in the ochre mines of the aforesaid employers in Jaitwara area are 'workmen' under the provisions of the Industrial Disputes act; and if so, whether they are entitled to the revision of their wage rates and to what extent and from which date? (3) Whether the workers employed in the ochre mines of the aforesaid employers are entitled to wages, lay-off compensation or any other relief during the period the mines were and are closed in rainy season; and if so, the quantum of such relief and the date from which the said relief is admissible? (4) Whether the employers who employ less than 100 workers are liable to make the workers permanent; and if so, what should be the eligibility for such permanency and to what relief the existing workers are entitled? (5) Whether the workers employed by the aforesaid employers are entitled to any sick leave; if so, at what rate?"
( 3 ) THE Tribunal has found that the petitioners employ between 400 to 600 workmen of whom 25p. c. are time-rated and the remaining are piece-rated; that the total number of mines worked by them is twenty-five; and that the ochre mine industry is seasonal as the mines cannot be worked during the rainy season and they remain closed during that period. On the first question relating to wage-rates, the Tribunal, after examining the capacity of the industry to pay the wages demanded by the employees and the work done by a worker each day, and after taking into account the "nature and existing conditions of work in the ochre mines", formed the view that the present wages to the workmen were inadequate and did not even fulfil the minimum wage requirements and concluded by observing that "taking into consideration the facts and circumstances of the case, the nature of the work, the financial position of the industry, and the level of wages in the region in other industries particularly the iron ore mining", it would be fair to fix the minimum wage for the daily rated workmen atRs. 2. 12 np. per day inclusive of dearness, allowance, and that those working in the gallaries, if daily rated, should be paid an extra allowance of Rs. 0. 12 np. per day. After finding that there were no Assistant Managers employed in the mines, the Tribunal then proceeded to fix the wages of other categories of workers, namely, clerks and supervisors, mates, time-rated male and female labour, and piece-rated male and female labour. The Tribunal then considered the second question, namely, whether the persons employed as. 'mine manag
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