Case: Firestone Tyre and Rubber Company Vs. Its Workmen and Another

These two appeals arise out of an industrial dispute between Firestone Tyre and Rubber Company (hereafter called the company) and its workmen. This dispute had reference to the claim for bonus made by the workmen against the company for the financial year ending 31 October, 1957. They alleged that all employees including temporary workmen and casual labour, discharged, dismissed, retired or retrenched during the said financial year or after should be entitled to this bonus, and according to them the available surplus was so large that the company should pay them nine months basic wages as bonus. This dispute was referred for adjudication before the industrial tribunal by the Government of Bombay under S.12(4) of the Industrial Disputes Act XIIV of 1947. It appears that the company had voluntarily paid to the workmen two months basic wages as bonus for the relevant year. The award passed by the tribunal has directed to pay five months basic wages as bonus in all. In its appeal the company contends that the wages which it pays to its workmen have reached the standard of living wage and so there is no justification for the claim of bonus at all. On the other hand, in their appeal the workmen contended that the wages paid to them are far below the standard of the living wage and the available surplus in the hand of the company is so large that the whole of the claim for bonus made by them should have beenappeals were heard by us along with Civil Appeals Nos. 416 of 1958 and 19 of 1959 - Standard Vacuum Refining Company of India, Ltd. v. Its workmen and vice versa [1961 - I L.L.J. 227] (reported supra) in which we have just pronounced our judgment. Indeed the learned Attorney-General, who appeared for the appellant in this case, also urged substantially the same arguments as in Civil Appeal No. 416 of 1958. We have held in Civil Appeal No. 416 of 1958 that even the average wages amounting to Rs. 370 and odd are much below the standard of a living wage.

Court's reasoning:
That being so, it must follow that the plea made by the company in the present appeal cannot befor the reasons given by us in the Civil Appeal No. 416 of 1958 we must hold that the company has failed to establish its plea that it is paying a living wage to itsthe rest of the period the profits have no doubt fluctuated but they have never gone below Rs. 121 lakhs and have reached the peak of Rs. 213 lakhs in one year. It has been found by the tribunal that the profits for the relevant year are higher than 1955-56 when six months basic wages were awarded as bonus. Prima facie the workmen are, therefore, justified in contending that at least six months bonus should have been paid to them; and that has been the principal argument urged before us both by Mr. Dudhia and by Mr.is possible that if we were dealing with the question of the quantum of bonus ourselves for the first time, we may have been inclined to uphold the workmens claim for six months basic wages for the relevant year; but, as we have repeatedly pointed out, we would not be justified in interfering with awards of this kind merely because we might have awarded a little more or a little less. Our interference would be justified only if we are satisfied that the award suffers from a serious infirmity, and that the tribunal has failed to consider the necessary relevant facts. We have carefully considered the contentions raised before us by the workmen, but on the whole we are not inclined to interfere with the award made by the tribunal in the present case.