Hindalco Industries Ltd vs Association Of Engineering Workers

2) The respondent herein namely, Association of Engineering Workers' Union (hereinafter referred to as "the Union") filed a complaint of unfair labour practice under Item 9 of Schedule IV of the Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971 (hereinafter referred to as "the MRTU and PULP Act, 1971") against Hindalco Industries Ltd. appellant herein (hereinafter referred to as "the Company") before the Industrial Court at Thane. According to the Union, the complainant is a trade union recognized as a representative union of the appellant- company. The Company has engaged employees in unfair labour practices on and from 1971 on a continuous basis from month to month, therefore, the period of limitation is not applicable. However, as a measure of abundant precaution, the Union has filed a separate application for condonation of delay. The Company has engaged about 500 workmen in the manufacture of aluminium and aluminium products. The complainant-Union (respondent herein) is a recognized Union for the establishment of the appellant-Company. In terms of Section 46 of the Factories Act, 1948, the Company is duty bound to maintain a canteen for the benefits of workmen working in an establishment. Accordingly, the Company is maintaining a Canteen at its Kalwa establishment. In order to avoid giving the workmen working in the canteen, permanency and benefits which are applicable to permanent workmen of the Company, the Company is illegally treating the workmen working the canteen as contract workmen. It is the specific case of the complainant-Union that the contract is sham and is a mere arrangement made for the purpose of avoiding permanency and giving wages and benefits as are applicable to permanent workmen of the company.

4) The Company has engaged and is engaging in unfair labour practices by treating its own workmen as workmen on contract. The workmen are entitled for a declaration that they are the workmen of the Company. In order to comply with the technicalities that are required to be done, the Union is simultaneously making an application to the State Contract Labour Advisory Board to abolish the contract system as far as the canteen is concerned in the appellant-Company. The Union is also raising a demand that all the 27 workmen should be absorbed in the Company from the initial date of their employment in the Company and pay them wages and other benefits that are applicable to permanent workmen of the Company.

6) On the above pleadings and on the basis of the oral and documentary evidence, the Industrial Court, by order dated 15.10.1998, allowed the complaint and declared that the Company has committed unfair labour practice under Item 9 of Schedule IV of the MRTU & PULP Act, 1971 and further directed the Company to cease and desist such unfair labour practice. In the same order, the Industrial Court directed the Company to absorb and make the canteen employees referred to in the Annexure as permanent employees of the Company from the date of its order. In addition to the same, the Industrial Court directed the Company to pay them the wages and other benefits like the last category of unskilled workmen in the Company.

7) Aggrieved by the aforesaid order of the Industrial Court, the Company preferred Writ Petition No. 6181 of 1998 before the High Court of Bombay. The learned single Judge, by order dated 25.01.1999, confirmed the order of the Industrial Court and dismissed the writ petition. The said order of the learned single Judge was challenged before the Division Bench of the High Court in L.P.A. No. 58 of 1999. By order dated 22.03.1999, the said L.P.A. was summarily dismissed. Questioning the same, the Company filed an appeal before this Court in Civil Appeal No.6120 of 1999 (@ S.L.P.(C) No. 9244 of 1999). By order dated 25.10.1999, this Court allowed the appeal of the Company, set aside the order passed by the High Court and remitted the matter to the High Court for deciding the same on merits. Pursuant to the said direction, L.P.A. No. 58 of 1999 was restored on its file and heard afresh and the Division Bench by the impugned order dismissed the Letters Patent Appeal and confirmed the order of the Industrial Court. Aggrieved by the aforesaid order of the Division Bench of the High Court dated 20.01.2000, the Company has filed the present appeal.

13) In the earlier part of our judgment, we have referred to the claim of both parties as well as relevant provisions of the the MRTU and PULP Act, 1971. Now let us consider various pronouncements on the point in issue. The earliest decision relied on by the Company is General Labour Union (Red Flag), Bombay vs. Ahmedabad Mfg. & Calico Printing Co. Ltd. and Others, 1995 Supp (1) SCC 175. In that decision, General Labour Union (Red Flag), Bombay had filed a complaint before the Industrial Court under the MRTU and PULP Act, 1971 complaining of the breach of Items 1(a), (b), 4(a), (f) and 6 of Schedule II and Items 7, 9 and 10 of Schedule IV of the said Act. The case of the complainant-union was that the 21 workmen who were working in one of the canteens of the respondent-company, were not given the service conditions as were available to the other workmen of the company and there was also a threat of termination of their services. It is an admitted fact that these workmen were employed by a contractor who was given a contract to run the canteen in question. The complaint was filed on the footing that the workmen were the employees of the company and, therefore, the breach committed and the threats of retrenchments were cognizable by the Industrial Court, under the said Act. The complaint proceeded on the basis as if the workmen were a part of the work-force of the company. The facts on record reveal that the workmen were never recognised by the respondent-company as its workmen and it was the contention of the company that they were not its employees. The Industrial Court dismissed the complaint holding that since the workmen were not the workmen of the respondent- company, the complaint was not maintainable under the said Act. The High Court in writ petition confirmed the said finding and dismissed the petition on the same ground. Hence, the Labour Union approached this Court by filing appeal. This Court has concluded as under:-

26. Considering these factors cumulatively, in addition to the fact that the canteen in the establishment of the Management is a statutory canteen, we are of the opinion that in the instant case, the respondent workmen are in fact the workmen of the appellant Management.

Respective charges are not being deducted from the wages of the employees.

(i) The company is paying maintenance charge and electricity charge and other expenses of the canteen.

(j) All the facilities including premises to the canteen are provided by the company.

(k) The wages of employees of the canteen are reimbursed by the company.

(l) The company is purchasing the food items.

(n) The company is providing three sets of uniforms to the employees and also providing service washermen.

(o) The employer's contribution P.F. is reimbursed by the company.

27) In the light of what has been stated above and in view of abundant factual details as mentioned in para 24 of this judgment as well as the reasonings as laid down in Indian Petrochemicals Corpn. Ltd. case (supra), we reject the stand taken by the appellant-Company. Accordingly, the appeal fails and the same is dismissed. Inasmuch as the Industrial Court has issued directions as early as on 15.10.1998 and not implemented due to court proceedings, we direct the appellant-Company to implement the same within a period of three months from the date of receipt of copy of this judgment. No costs.