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1996 Supreme(Online)(SC) 99

SUPREME COURT
, J
H. M. T. Ltd. v. H. M. T. Head Office Employees' Assocn. and Others
C. A. No. 1722, 1723, 1724, 1725, 1726 of 1990, 13380 of 1996



Advocates:
For the Appellants/Petitioners: Mr. Narayan B. Shetye
For the Respondents: Mr. Jitendra Sharma

Workmen are not entitled to wages during an illegal strike; minimum wage must reflect parity with similar undertakings while considering existing agreements.

Headnote:(A) Industrial Disputes Act, 1947 - Section 10 - Wage parity and minimum wage determination - Award by National Industrial Tribunal regarding demands for wage parity with another public sector entity was challenged - Tribunal ruled that minimum wage for unskilled workers should be Rs. 500/- and awarded 35% wages during strike period despite strike being illegal - Settlement agreements and previous decisions regarding wage adjustments were pivotal in addressing the claims and the implications of illegal strikes and lockouts. (Paras 15-32)

(B) Labor Relations - The determination of minimum wage is influenced by settlements across similar public sector undertakings, but demands must still align with existing agreements and legal stipulations for fair labor practices. (Para 15)

Facts of the case:
Unions of five Bangalore based public sector undertakings demanded wage parity with that of BHEL; after negotiations and strikes, awards from the Tribunal were contested regarding minimum wage and obligations during strikes. The Tribunal awarded Rs. 500 as the new minimum for unskilled workers while addressing legality and justification of strikes and lockouts.

Findings of Court:
While the Tribunal's minimum wage was upheld, the directive on strike wages was deemed improper due to the illegality of the strike.

Issues: The legality of the wage demands in context to existing agreements, the justification of the strike, and the appropriate wage adjustments during lockouts were central to the dispute.

Ratio Decidendi: Wages during an illegal strike cannot be awarded, but minimum wage must reflect fair parity; adjustments based on settlements should consider ongoing negotiations and agreements across public sector entities.

Result: Appeals partly allowed; the Tribunal's conflict on wage parity was upheld, while the illegality of strike affected wage awards during that period.

Table of Content
1. background of wage parity demands (Para 2 , 3 , 4 , 5 , 6 , 9)
2. strike developments and conciliation efforts (Para 10 , 11 , 12)
3. unions' demands for wage structure revision (Para 13 , 14)
4. tribunal's consideration of rival claims (Para 15 , 16)
5. evaluation of strike legality and entitlement (Para 19 , 20 , 21)
6. legal principles regarding wages during strikes (Para 22 , 23)
7. legality of the lock-out as response to illegal actions (Para 24)
8. management perspectives on wage adjustments and agreements (Para 25 , 26 , 27 , 28)
9. tribunal ruling on cca and wage structures (Para 29 , 30 , 31)
10. conclusions on strike wages and cca policies (Para 32)

1. Leave granted.

2. The award of the National Industrial Tribunal, Bombay (hereinafter referred to as 'the Tribunal') adjudicating on the demands o the unions of five Bangalore based public sector undertakings for parity in minimum wage with the minimum wage payable to the employees of another public sector undertaking namely; Bharat Heavy Electricals Limited (hereinafter referred to as 'BHEL') is challenged by the managements as well as the workmen in these appeals.

3. The minimum wage of the lowest cagetory of workmen of five Bangalore based public sector undertakings namely; Bharat Electronics Limited (hereinafter referred to as 'B.E.L.'), Bharat Earth Movers Limited (hereinafter referred to as 'B.E.M.L.'), Indian Telephone Industries Limited (hereinafter referred to as 'I.T.I.') Hindustan Aeronautics Limited (hereinafter referred to as 'H.A.L.') and Hindustan Machine Tools Limited (hereinafter referred to as 'H.M.T.') was the same in all these public sector undertakings. By settlements entered into on various dates in 1974 between managements and the workmen of these five undertakings except I.T.I., the minimum wage of the lowest category of workmen was fixed at Rs. 300/- consisting of basic pay of Rs. 200/- + Dearness Allowance of Rs. 100/- which was linked with Local Consumer Price Index. The minimum wage in I.T.I. was also fixed at Rs.300/-. As dearness allowance was linked with All India Consumer Price Index, on the basis of the Index prevailing as on 1-12-1973, the Dearness Allowance payable on the basic wage of Rs. 200/- came to Rs. 91/- and, hence in order to bring uniformity in the minimum wage, the employees of the I.T.I. were paid City Compensatory Allowance (hereinafter referred to as 'C.C.A.') of Rs. 9/- at 41/2% of the basic pay. The settlements in these five undertakings were to be in force till 31-12-1976.

4. In BHEL, with whom parity was being claimed by the workmen of these five industries, an agreement dated 17/18-9-73 had been entered into whereby the minimum wage was fixed at Rs. 258. 70/- comprising of basic pay of Rs. 200/- and Dearness Allowance of Rs. 58/- at the All India Consumer Price Index of 200 points for industrial workers with 1960 base. A revision was effected by agreement dated 17/18-1-1974 and the minimum wage of the workers of BHEL was fixed at Rs. 300/-. This minimum wage, and the wage structure constructed on this basis, came into force with effect from 1-9-1973 and was to be in force for a period of four years. This agreement expired at the end of August 1977 and negotiations for the review and revision of the same w.e.f. 1-9-1977 were commenced between the management and the workers in March, 1978. A final agreement between the management and the workers was reached on 8/9-1-1980. By this agreement, the wages as on 1-1-1978 for an unskilled employee in BHEL at the lowest level was fixed at Rs. 500/- per month at All India Consumer Price Index of 327 points. This agreement was to be effective from 1-1-1978 and was implemented in April, 1980.

5. The 1974 settlements between the managements of B.E.L.., I.T.I., H.A.L., and B.E.M.L. expired on 31-12-1976 and hence the workmen unions submitted charters of demands in early part of 1977. Conciliation proceedings were held between the managements of five public sector undertakings




















































































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