Settlements with recognized unions bind all employees, regardless of union membership, and employers cannot impose conditions for benefits.

JUDGMENT:-

1) These Petitions are filed by Electropneumatics and Hydraulics India Pvt. Ltd. challenging two separate Judgments and Orders passed by Industrial Court Pune, on 2 May 2023, by which Petitioner-Company is directed to give wage rise to the Respondents as per settlement dated 30 June 2010 and 7 September 2013 alongwith arrears from the date of respective settlement agreements. Writ Petition No. 9522 of 2023 arises out of dispute relating to Memorandum of Settlement dated 30 June 2010 executed with the recognized union relating to the period from 1 July 2010 to 30 June 2013. Writ Petition (St) No.16992 of 2023 arises out of the Memorandum of Settlement dated 4 September 2013 executed with recognized union in respect of period from 1 September 2013 to 31 August 2016. The issue is about entitlement of the Respondents, who are not members of the recognized union, to receive the benefits under the Memorandum of Settlement without signing the undertakings provided for in the settlement.

2) Briefly stated, facts of the case are that the Petitioner-Company is engaged in the activities of manufacture of machine tools and operates a factory at Chakan, District Pune. Petitioner had apparently engaged 280 workmen. The workers of Petitioner have formed a union name Electropneumatics & Hydraulics Workers Union, which is duly recognized under the provisions of Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act 1971 (MRTU & PULP Act). Petitioner had signed a Settlement dated 3 May 2005 with the said recognized Union, which was binding on all the workmen employed in the establishment and was in force upto 30 April 2008. It appears that some of the workers formed another union named Bhartiya Kamgar Karmachari Mahasangh which Union, according to the Petitioner, resorted to illegal strike from 5 September 2009 to 23 April 2010.

3) It is Petitioner’s case that based on the Charter of Demands submitted by the recognized Union prolonged negotiations took place. Bhartiya Kamgar Karmachari Mahasangh (BKKMS) filed Complaint (ULP) No. 161 of 2010 for restraining the Petitioner and the recognized Union from arriving at and signing any settlement. Petitioner and the recognized Union arrived at a Settlement on 30 June 2010, under which, Petitioner agreed to give average rise of Rs.3,200/- per month from 1 July 2010 to 30 June 2011, Rs.700/- from 1 July 2011 to 30 June 2012 and Rs.700/- from 1 July 2012 to 30 June 2013. The Memorandum of Settlement contained a covenant for execution of Letter of Acceptance/Undertaking by the workmen as a precondition for grant of benefits flowing out of Memorandum of Settlement. According to the Petitioner, the members of the recognized Union submitted such undertakings and 160 workmen were granted the benefits flowing out of the Memorandum of Settlement.

4) After the Settlement was signed, the said BKKMS submitted Notice of Documents on 7 September 2010 demanding copy of the Settlement. It is Petitioner’s case that all the workmen were already provided with the copies of the Settlement and one copy thereof also displayed on the notice board. Respondents, who are members of BKKMS, refused to sign the acceptance letters/undertakings, on which count Petitioner refused to extend them the benefits flowing out of the settlement. In the above background, Respondents in Writ Petition No. 9522 of 2023 filed Complaint (ULP) No. 210 of 2012 before Industrial Court, Pune for grant of wage rise as per Memorandum of Settlement dated 30 June 2010. The Complaint was resisted by Petitioner by filing Written Statement.

5) During the pendency of Complaint (ULP) No. 210 of 2012 relating to Memorandum of Settlement dated 30 June 2010, it appears that another Settlement dated 7 September 2013 was executed of between Petitioner and the recognized Union. While members of the recognized Union signed the necessary undertakings as per the Settlement were granted wage rise and other benefits flowing therefrom,