Subject NOT available

click here for IIIF manifest

REGISTERED NO. D-221

The Gazette of India

EXTRAORDINARY

PART II—Section 3—Sub-section (ii)

PUBLISHED BY AUTHORITY

No 47 ] NEW DELHI, MONDAY, FEBRUARY 21, 1966/PHALGUN 2, 1887 (SAKA)

Separate paging is given to this Part in order that it may be filed as a separate compilation.

MINISTRY OF LABOUR AND EMPLOYMENT

NOTIFICATION

New Delhi, the 10th February, 1966

S.O. 539.—In pursuance of section 17 of the Industrial Disputes Act, 1947 (14 of 1947), the Central Government hereby publishes the following award of the National Industrial Tribunal, New Delhi, in the industrial dispute referred to the said Tribunal by the notification of the Govern- ment of India, in the Ministry of Labour and Employment No. S.O. 2561 dated the 25th July, 1964, which was received by the Central Government on the 29th January, 1966.

AWARD

CHAPTER I

Introductory

This is an award upon a reference made by the Central Government under Section 10(1A) of the Industrial Disputes Act.

( 185)

2. The constitution of a National Industrial Tribunal and my appoint- ment as its Presiding Officer, were notified bv the Central Government (Ministry of Labour and Employment) in its notification No. S.O. 2560 dated July 25, 1964, and published in the Gazette of India Extraordinary, Part II, Section 3, Sub-section (ii) of the same date. On the same day, by order No. S.O. 2561 published in the same Gazette of India Extraordi- nary, the present reference was made to the Industrial Tribunal thus constituted. This order is in the following terms:

"Whereas the Central Government is of opinion that an industrial dispute exists or is apprehended between the management of Air-India and their workmen, in respect of the matters specified in the Schedule hereto annexed which are either matters in dispute or matters appearing to be connected with or relevant to the said dispute and that the dispute involves questions of national importance and also is of such a nature that the establishments of Air-India situated in more than one State are likely to be interested in, or affected by, such dispute;

And whereas the Central Government is of opinion that the dispute should be adjudicated by a National Tribunal;

Now, therefore, in exercise of the powers conferred by sub-section (1A) of section 10 of the Industrial Disputes Act, 1947 (14 of 1947), the Central Government hereby refers the said dispute to the National Tribu- nal constituted by the notification of the Government of India in the Ministry of Labour and Employment No. S.O. 25f>D, dated the 25th July, 1964 for adjudication.

SCHEDULE

I. (1) Scales and grades of pay.

(2) Fixation in the new pay-scales.

(3) 4-weekly rates of payment of grade pay.

(4) Dearness allowance.

(5) House rent allowance/conditions governing allotment of

accommodation.

(6) Duty allowance.

(7) Machine allowance.

(8) Transport/car/conveyance allowance.

(9) Over-time payment.

(10) Working on schedule "off day"/holidayg

(11) Jet/hazard allowance for ground staff.

(12) Shift allowance.

(13) Licence allowance.

(14) Heavy duty vehicle allowance.

(15) Jet allowance (cabin attendants and flight crew). (16) Overseas operations allowance.

(17) Travelling allowance. CIS) Excesg flying pay/excess duty allowance. (19) Efficiency bonus. f20) Insurance coverage. (21) Provident Fund. (22) Flight duty time and flight time limitations and rest periods. (23) Leave facilities. (24)' Standard force (cabin attendants and flight crew). (25) Compensation for death or injury (relating to cabin attendants and flight crew).

(26) Compensation for loss or damage to baggage of cabin atten- dants and flight crew.

(27) Passage? regulations, (28) Washing allowance. (29) Accommodation layover allowance at layover stations. (30) Medical benefits/facilities. (31) Retirement age. (32) Foreign allowance. (33) Senior Check Pursers" Instructional Allowance. (34) Outstation allowance. (35) Resettlement allowance. (36) Children allowance. (37) Driving allowance. (38) Hours of work. (39) Promotion. (40) Gratuity. (41) Command pay (Senior Captains). (42) 2nd Class Navigators' licence allowance. (43) Radio/Telephone allowance. (44) Check Pilots' allowance. (45) Night flying allowance. <46) Retirement benefits/alternative employment, for medically unfit flight crew. (47) Travel on duty. (48) Flight Engineer Instructors' allowance. (49) Check allowance for check flight engineers. (50) Salary for cadet flight engineers. (51) Special travelling allowance. (52) Emoluments of Check Navigators. (53) Endorsement allowance (Aircraft Maintenance Engineers). (54) Meal allowance. (55) Secondary increments. (56) Date of implementation. (57) Interim relief.

ll. What relationship, if any, should the wage-structure of Air-India bear to the wage-structure of Indian Airlines with reference to comparable categories of workmen performing similar functions?

3. It will be observed that the reference covers almost all aspects of the multiple relationship between employer and employed. The circums- tances, which have given rise to and necessitated such a comprehensive reference, will be narrated in a subsequent chapter of this award, but here I may state at once that during the course of the hearing of this reference, a number of matters were settled by mutual agreement between the parties concerned, and my task has, to that extent, been made lighter. The parties to these proceedings are Party No. 1, Air India Corporation, Bombay (to which it will be convenient to refer as the Corporation or the Management) and its workmen which fall into the following six categories :—

Party No. 2—Air Corporations Employees' Union, Bombay. Party No. 3—Air India Employees' Union, Bombay. Party No. 4—Indian Pilots' Guild; Bombay. Party No. 5—All India Aircraft Engineers' Association, Bombay. Party No. 6—Indian Flight Navigators' Guild, Bombay.

and Party No. 7—Indian Flight Engineers' Association, Bombay.

4. It will be convenient to refer to the various categories of workmen as Party No. 2, Party No. 3, Party No. 4, etc. instead of setting out the full designation each time.

5. The constitution of Parties 4, 5, 6 and 7 is self-evident by their nomenclature. Party No. 2—Air Corporations Employees' Union and Party No. 3—Air India Employees' Union, comprise non-technical as well as technical employees of the Corporation who, broadly speaking, draw salaries of Rs. 650 per mensem and less.

6. Originally, all the employees belonging to these two Unions, were members of Party No. 2 which was and continues to be a recognised Union. A split between the members took place in September 1962, and the dissidents formed themselves into a separate Union calling them- selves the Air India Employees' Union, i.e. Party No. 3. This Union has not so far obtained official recognition from the Corporation, but its mem- bers were represented before me by counsel who have been heard in support of their demands. The members of the six unions (Parties 2 - to 7) comprise all sections of ,the Corporation's employees who fall within the definition of "workman" given in Section 2 (s) of the Industrial Disputes Act, 1&47 which will henceforth be referred to as the Act. Thus, the reference covers not only all aspects of employment and service conditions but embraces all employees of the Corporation of all grades and classes who can be called workmen under the Act,

7. Since these proceedings started in August, 1,064, there has been, as already observed, some modification and reduction in the extent of the dispute, occasioned by a number of agreements reached between the Corporation and some of the parties with regard to a number of matters enumerated in the Schedule annexed to the order of reference. I may straightaway describe the nature of these agreements and the consequences

flowing therefrom, so that the shape and the scope of the matters still in dispute and which "have, therefore, been discussed and disposd of in the following pages, may at once be comprehended:

(i) On December 30, 1964, a joint application on behalf of the Cor- poration and Party No. 2 was made to this Tribunal, stating that an agreement had been reached on the question of interim relief (Item No. 57 in the Schedule), and praying that an award be made in terms of the settlement. A previous application for the grant of an interim award by Party No. 3 had been rejected by me on November 23, 1964, on the ground that I had not before me sufficient material to adjudicate upon the matter. Party No. 3 raised an objection to the application now made jointly by the Corporation and Party No. 2. The application and the objection were heard and after the objection had been rejected, an award based on the agreement was made by me and this was published by the Central Government (Ministry of Labour and Employ- ment) in its notification No. S.O. 651, dated the 15th February 1965. The published award, forming Appendix I to this award, sets out the terms of the settlement, the nature of the objection raised by Party No. 3 and my decision thereon. Thus was dis- posed of the demand under Item No. 57 made not only by Party No. 2 but also by Party No. 3 because the award included within its ambit all employees drawing a salary of less than Hs. 650 per mensem. No demand for interim relief was made by any of the other parties.

(ii) On May 24, 1965, Party No. 4 came to a settlement with the Corporation regarding Item No. 46—Retirement benefits/alter- native employment, for medically unfit flight crew. A joint application was made to this Tribunal for making an award in terms of the agreement arrived at on this item. No orders were passed by me on this application but I propose to accept the settlement and embody it in the present award. The agreement forms Appendix II to this award.

(iii) An agreement similar to the above, relating to the same Item No. 46, was arrived at between Party No. 7 and the Corporation on the 29th May 1965. This settlement also will be made a part of the present award and is printed as Appendix III.

(iv) On July 26, 1965, an agreement was arrived at between the Corporation and Party No. 4 and a settlement was reached in respect of all demands contained in the Charter of Demands submitted by the Indian Pilots' Guild including the items 1 to 5, 15, 16, 18, 19, 21 to 27, 29 to 32, 34, 40 to. 45, 47, 51, 56 and 57, but four matters xffe.. Item No. 21—Provident Fund, Item No. 27— Passage Regulations, Item No. 31—Retirement age and Item No. 40—Gratuity, were not finally disposed of. The decision with regard to them was left for determination by this Tribunal. After this agreement had been reached and, on the same day, a joint application was made by the Corporation and Party No. 4, praying that the Tribunal make an award in terms of the settlement arrived at. The application was allowed and I made an award based on the settlement and directed that the agree- ment form part of my award. The award (Part I) thus made was published by the Government of India on August 16, 1965. Therefore, as far as members of Party No. 4 are concerned, only

the four items enumerated above, remain to be decided. AH other disputes arising out of their demands.have been settled by mutual agreement. The agreement is printed now as Appendix

(v) On the 15th April, 1965 a joint application was made before me by Air-India and the All-India Aircraft Engineers' Association (Parties 1 and 5) requesting an adjudication upon the question whether Assistant Superintendents of the Engineering Depart- ment were workmen within the meaning of the Industrial Dis- putes Act. Another application was made by Party No. 5 on the same subject in respect of Deputy Superintendents. These applications were disposed of by my Order No. 20, dated the 29th June, 1965 in which I held that the Assistant Superin- tendents were to be considered workmen while Deputy Superin- tendents were not to be considered workmen nor could their case be taken up by Party No. 5. A copy of the order issued id at Appendix V. Thereafter the parties entered into negotiations and on October 15, 1965 an agreement was arrived at between Party No. 5 and the Corporation and by this agreement, a num- ber of demands made by Party No. 5 were dropped. The de- mands regarding Item No. 27—Passage Regulations, Item No. 31—Retirement age, Item No. 38—Hours of work and Item No. 40—Gratuity, were left for the decision of the Tribunal and on all the remaining items a settlement was reached. Upon an application made to this Tribunal an award (Part II) has already been made on the basis of this agreement which is printed as Appendix VI.

8. The result, therefore, is that all matters in dispute between the Corporation and Parties 2, 3 and 6 and all except one demand of Party No. 7 remain to be considered and decided ; whereas, only a few of the demands of the remaining Parties 4 and 5 have been left for the decision of the Tribunal while the rest have been disposed of by means of negoti- ations and mutual agreement,

CHAPTER II

Grouping of Items and Preliminary Objections

In August 1964 notices were issued to all the 7 parties to these pro- ceedings, calling upon them to file their written statements within 15 days, so that the hearing of the various matters in dispute could be commenced without delay. But several months were to elapse before the preliminary formalities could be completed and the impediments which are a usual and perhaps inevitable feature of such proceedings were over- come. The first request for extension of the tjme-limit of 15 days came from the Corporation on the ground that a detailed and comprehensive statement of their case on all the 57 items could not be prepared in such a short time. The Corporation prayed for a further period of four weeks. I granted a fortnight's extension ending on September 28, 19(34. Similar requests were made by parties 2, 4, 5, 6 and 7, while Party No. 3 asked for a fortnight's extension. Before the appointed date (September 28, 1964), the Corporation set up a Negotiating Committee on September 18, 1964, for the purpose of discussing its differences with the employees and endea- vouring to arrive at an agreed settlement. This perfectly laudable venture occasioned a great deal of delay for it became a fulcrum for levering up

requests for postponements and extensions of time. Intimation of the formation of the Negotiating Committee was given to the Tribunal on September 21, 1964, and it was explained that it was the intention of the Management to do its very best to resolve the differences between the parties to such extent as was feasible. Parties 2, 4, 5, 6 and 7 now prayed for a further extension r,f four weeks beyond September 28, 1964, basing their request on the new and unanticipated move of the Corporation in appointing a Negotiating Committee. I allowed them a fortnight's exten- sion and directed that the written statements must be submitted by October 12, 1964. The parties were also advised that the submission of written statements of claims and rejoinders thereto did not debar them from carrying on mutual negotiations in order to arrive at a settlement on some or all the matters involved in the dispute, and that such settlement was, in any event to be considered by the Tribunal before it could be implemented and made legally binding. It was, therefore, impressed upon them that the file of the Tribunal should be completed as early as possible. The Corporation and Party No. 3 did, in fact, put in their respective written statements on September 28, 1964, the date already fixed.

2. On October 12. 1964, a telegraphic request for a week's further exten- sion was received from Parties 2, 4 and 7. I was obliged to grant this request. Parties 2, 4, 5, 6 and 7 now filed a preliminary statement raising a legal objection, impugning the Central Government's Order of Reference as void, ultra vires, illegal and contrary to law. Notice of this objection was sent to the Corporation and parties were informed that arguments on this preliminary point would be heard by me on November 6. But there was still another delay of a few days, and I began hearing arguments on the preliminary objection on November 16 at Bombay. On November 23, 1964, I passed an order dismissing the objections and directing the parties to put in their written statements and replications after exchanging their statements. I fixed January 14, 1965, at Bombay for the hearing of the case on merits. A request for extension of time for filing its replication was made by the Corporation. The hearing was, however, not postponed and on the 14th and 15th of January the hearing took place at Bombay. On these dates the matter of Interim Relief was heard and an award based on the agreement arrived at between the Corporation and Party No. 2 was formally made. Also a tentative schedule of further hearings and their scope and the arrangement of the various items into convenient and homogeneous groups were discussed in detail. Item No. 57 having been disposed of, it was decided to group the remaining 56 items as follows : —

I. Pay and Allowances

Item Nos. 1, 3, 4, 5, 6, 7, 8, 11, 13, 14, 15, 18, 19, 28, 33, 36, 37, 41, 42, 43, 44, 48, 49, 50, 51, 52, 53 and 55 of Part I and Part II of the Schedule.

II. Hours of Work, Leave etc.

Item Nos. 9, 10, 12, 18, 22, 23, 38, 45 and 54.

III. Retirement Benefits

Item Nos. 20, 21, 25, 31, 40 and 46.

IV. Transfer, Posting etc.

Item Nos. 17, 29, 32, 34, 35 and 47.

V. Medical and Welfare

Ttem Nos. 26, 27 and 30.

VI. Standard Force and Promotion

Item Nos. 24 and 39.

VII. Fixation and Date of Implementation

Item Nos. 2 and 56.

3. Counsel for all parties suggested that Group III relating to Retire- ment Benefits be taken up for consideration first, and then Groups 11 ana I. and thereafter .arguments and evidence on the remaining Groups should be heard. This suggestion was agreed to, and March 1, 1965, was fixed for hearing the evidence and arguments on merits at Bombay. In all 10 sessions of the Tribunal were held at Bombay each session lasting from 4 to 10 working days. Oral as well as a mass of documentary evidence was adduced by the parties. As many as 355 documents were referred to by counsel for parties and then placed on record. A complete list of these exhibits appears in .Appendix VII. The oral evidence consisted of the statements on oath of five witnesses. L. B. Bhatia, Flight Navi- gator was called by Party No. 6 and Captain Maulik, Chief Pilot, was called by the Corporation, to give evidence on the question of Flight Navigator's status and the nature of nis duties in. modern jet aircraft. V. S. Bhagat, Engineer, called by Party No. 5 and M. P. Kharkar, called by Corporation, were examined on the issue whether Assistant Super- intendents and Deputy Superintendents can be classed as workmen with- in the meaning of Section 2 of the Industrial Disoutes Act. And finally, V. P. Menon was examined to depose to facts having a bearing on the demand for the house rent. All these witnesses were examined and cross-examined at considerable length.

4. The last hearing took place on October 9, 1965. On that date there remained to argue some of the demands made by the All-India Aircraft Engineers' Association, Party No. 5, and for this purpose the hearing was adjourned to October 20, 1965. But before that date, a settlement was reached between the Corporation and Party No. 5 and intimation of this fact was sent to the office of the Tribunal at Delhi, Duly authorised agents of the Corporation and Party No. 5 came to Delhi and placed the agree- ment on the file of the Tribunal after verifying it. I have already made mention of this agreement and the award consequent upon it in Chapter I.

5. Mention has been made of a preliminary objection impugning the validity of this reference and of my order repelling the objection. The order was announced to the parties but was not submitted to the Central Government as an award, nor was it published in the manner awards of industrial tribunals are required to be published under the provisions of Section 17(1) of the Act. Since it might be argued that this order can be construed as an award within the definition of 'award' as set out in Section 2(b) of the Act, and also because the preliminary objection might be revived if the present award is challenged or discussed in another forum, I, out of abundant caution, reproduce my order below in order to give it formal validity, and make it a part of my final award:

"The appointment of this Tribunal was notified by the Central Government (Ministry of Labour and Employment) by its Notification S.O. 2560 on the 25th July 1964. On the same day, by Notification S.O. No. 2561, an industrial dispute between the' management of Air-India and their workmen was referred to the Tribunal for adjudication. The matters in dispute are set out in a Schedule attached to the notification and there are in all fifty-seven items of dispute between the management of

Air-India and their workmen and there is also an item relating to the relationship between the wage structure of Air-India and the wage structure of Indian Airlines, with reference to com- parative categories of workmen performing similar functions.

2. The parties to these proceedings are;

Party No. i Air India Corporation, Bombay, to which it will bo convenient to refer as the ' Corporation' or the ' M a n a g e m e n t'

and

Their workmen which fall into six categories as fol-

lows :

Party No. 3 . . .. Air Corporations Employees' Uniorij Bombay.

Party No. 3 . . .. Air India Employees' Union, Bombay.

Party No. 4 . . .. Indian Pilot's Guild, Bombay.

Party No. 5 . . . A ll India Aircraft Engineers' Association, Bombay

Party No. 6 . . .. Indian Flight Navigators' Guild, Bombay, and

.Party No. 7 . . .. Indian Flight Engineers' Association, Bombay.

It will be convenient to refer to the various categories of workmen as Party No. 2, 3, 4 etc. instead of setting out the full designations.

3. A preliminary objection by Parties 2, 4, 5, 6 and 7 has been raised with regard to the validity of this reference and it has been alleged that the order making the reference is bad in law, illegal, mala fide and inoperative. The grounds upon which this objection is based are set out in the written statement of Party No. 2 and these grounds are supported by the other parties raising the objection. Before discussing the grounds upon which the preliminary objection is based, it is necessary to set out the circumstances which gave rise to the reference.

4. For several years now, certain matters, arising out of wages and other conditions of service have been the subject matter of agreements and settlements between the Management and its workmen. On 1st April 1959 a settlement was arrived at between the Management and Party No. 2 upon certain matters. Certain other matters were referred, with the agreement of the parties, to a Committee of Arbitration on the same day. Upon these matters an award was given and the award was published in the Bombay Government Gazette. Some points in this award which required elucidation were settled by an agreement between the Management and Party No. 2 on 30th November 1961. There was another agreement about certain other matters also between the Manage- ment and Party No. 2, arrived! at on 26th September 1963. There were similar agreements between the Management and Party No. 4 arrived at on 1st January 1960; between the Management and Party No. 5 on 9th September 1960; between the Management and Party No. 6 on 27th March 1961 and between the Management and Party No. 7 on 12th July 1960 and 11th October 1962. The workmen were, however, not satisfied about their wages and conditions of service and a series of demands were made by them. A Charter of Demands, for instance, was presented by Party No. 2 on 30th December, 1963. Party No. 3 served a Notice of Termination of

the Settlement on 21st November 1963 and a Charter was presented on its behalf on 27th January 1964. A memorandum was presented on be- half ol Party No. 7 in 1963 (the exact date is not mentioned in the copy of the memorandum filed before me). I need not here give further details of some other charters and demands which were made by the various parties and it will be sufficient to observe that relations between the Management and their workmen were steadily becoming worse and approaching a crisis. Indeed, on 14th March 1964, Party Nu. 2 issued an Information Bulletin in which the following direction appeared:

"The Regional Committee has further decided that if the above are not heeded by the Management, the Committee would have to, although reluctantly, decide and direct that the rank and file should not continue to extend their co-operation and if the situation so warrants, the ACEU would direct that from 21st March 1964 in respect of certain issues the members would withdraw their co-operation—these may take, to start with, the form of no overtime work, no holiday/Sunday work, confirma- tion of the process of 'no work thru' break', and other forms as may be decided upon by the Union from time to time."

On the same day a letter was addressed to the Assistant General Manager of the Management in which mention was made of the "smouldering dis- content" which would one day result in 'aggressive steps'. On the 19th March 1964, another Information Bulletin was issued on behalf of Party No. 2 in which it was announced:

"We have, therefore, although very reluctantly, decided that from 21st March 1964 onwards the following directive should be followed until further notice. This directive comes into force from 00.00 hours on 21st March 1964:

(1) NO WORK THROUGH BREAKS. (2) NO OVERTIME BEYOND THE SCHEDULED HOURS OF WORK.

(3) NO HOLIDAY AND SUNDAY WORK."

The Government realised the seriousness of the situation and on 24th March 1964, Shri Raj Bahadur, Minister for Transport, made a statement in the Lok Sabha announcing the intention of the Government to appoint a commission to undertake a detailed and comprehensive enquiry into a number of matters. These matters related to the grievances of the work- men and the "obligation cast under the law on the Corporation to offer to the public safe, efficient, adequate and economic air transport service on reasonable charges". On June 6, 1&64, another Information Bulletin was issued on behalf of Party No. 2 in which objection was taken to the steps which the Management was taking to grant interim religf to its workmen. On June 20, matters worsened and in an Information Bulletin issued by Party No. 2, a direction was given that all concerned should follow 'work to rule' policy with effect from 00.00 hours on Sunday, June 21. This, the bulletin said, was merely a preliminary step to demonstrate the workmen's feelings and if their patient and peaceful efforts were not honoured by the Management, the employees would be compelled to "resort to positive steps to assert themselves to secure their justifiable demands". A few days later, another Information Bulletin was issued containing the follow- ing direction: —

"The Action Committee has further decided that in addition to work-to-rule already in force, there should be no overtime

work effective 20.30 hours on 26th J u ne 3964 and no Sunday work with immediate effect."

The work-to-rule directive was, in fact, in operation from J u ne 26, 1964, to July 6, 1964. It was during this period that the Government issued a press-note announcing that a retired High Court Judge had been appointed as Chairman of the Commission of Enquiry adumbrated in the statemeni of the Minister for Transport made on March 24, J964. Matters, however, did not improve and on July 7, 1964, Party No. 2 gave a strike notice to the Management under sub-section (1) of Section 22 of the Industrial Disputes Act. This was followed by another strike notice by P a r ty No. 3 on July 10, 1964. On July 25, the appointment of the present Tribunal was announced and the industrial dispute was referred to it for adjudica- tion.

5. The preliminary objection raised on behalf of P a r ty No. 2 and' Parties 4 to 7 is set out under a number of heads but in the main the- grounds are three-fold:

(i) There is, in fact, no dispute between the Management and the workmen because all agreements and settlements arrived at between them are still valid and in force,

(ii) The strike notice served by P a r ty No. 2 only required the Management to begin negotiations regarding certain matters- and this strike notice, therefore, does not make it obligatory for the government to make a reference of the dispute as re^- quired by the second proviso to sub-section (1) of Section 10 of the Industrial Disputes Act.

(iii) The government had not applied its mind before forming its opinion that an industrial dispute existed or was apprehended within the meaning of sub-section (1) of Section 10. Therefore the reference was unlawful and mala fide.

6. The definition of 'dispute' given in the Shorter Oxford Dictionary is: 'An act of arguing against; controversy; debate; an argumentative contention of a controversy'. The definition includes a difference of opinion and a logical argument. The verb 'dispute' means, 'to contend with opposing arguments or assertions; to discuss; to argue and to hold a disputation. Therefore, whenever two parties are not ad idem upon any matters and hold different opinions which mav lead to further conflict between them, a dispute can be said to exist. The legal scope is even wider and the definition given in Section 2, clause (k) is as follows:

"Industrial dispute means any dispute or difference between em- ployers and employers or between employers and workmen or between workmen and workmen, which is connected with the employment of non-employment or the terms of employment or with the conditions of labour of any person."

Here, we find, there is a difference between employers and all the work- men. There is indeed, a difference even between P a r ty No. 3 and Parties 2, 4, 5, 6 and 7 because P a r ty No. 3 has before me supported the reference whereas a preliminary objection has been raised on behalf of the remain- ing five parties.

Whenever a difference of opinion has to be resolved either by discus- sion or by the intervention of a third party such as a conciliation officer, a tribunal or a court of law, it may be said that a dispute between the

parties exists for, if the dispute is not so resolved an amicable and coope- rative relationship between the parties cannot subsist. If between the employer and the employee there is a difference of opinion about any matter relating to wages, conditions of service etc., such difference of opinion cannot be allowed to persist. It must be resolved or else the relationship will be disrupted or worsened to an extent of which the conse- quences may well be serious not only to the two parlies, but to other persons and the public. There is no doubt at all that in the present ins- tance there were differences upon several matters between the Manage- ment and the workmen. Despite the settlements and binding awards to which a reference has been made in the earlier part of this order, the workmen made certain demands. They wished that either these demands be conceded or discussed and negotiated. This in itself shows that there was a dispute in the sense I have stated above. Indeed the workmen were taking a very serious view of the relationship because they spoke of withdrawing their co-operation, and went to the extent not only of issuing a work-to-rute directive but also giving a strike notice. In view Of this, to say that there was no dispute because the previous settlements and agreements were still in force would be to stretch the meaning of an agreement beyond the strain it can bear. The existence of a valid agree- ment does not rule out a dispute; for an agreement even during its vali- dity may be terminated or disregarded by either party, or there may be a desire to vary its terms. The expresssion of a desire to vary the terms of an agreement gives birth to a dispute. In this case, however, matters went much beyond the expression of a desire to revise the terms of the agreement. There were charter of demands made on behalf of the work- men and these were followed by positive action in the form of a work-to- rule directive and strike notices.

7. All that Section 10 requires is that where the appropriate govern- ment is of the opinion that any industrial dispute exists or is apprehended, it may by order in writing make a reference of the dispute. The opinion of the appropriate government is a subjective matter and no Tribunal or Court can enquire into the nature of the material upon which this opinion was based. The court can, however, hold the opinion to have been un- lawfully formed if there is no material or evidence whatsoever upon which any reasonable person could come to the conclusion that a dispute exists. This, however, is not the case in the instance before me. There is material, and substantial material, showing that the Corporation and its workmen had differences between them and these differences related to their mutual relationship such as conditions of service, wage structure etc., and that being so the opinion of the Central Government cannot be questioned. The law on the point has been clearly laid down in a large number of cases to which it is not necessary to refer here. The circum stances which led to the reference make it abundantly clear that there was material upon which the Central Government was entitled to form an opinion regarding the existence of a dispute.

8. Again it has been argued that the Central Government did not apply its mind to the matter because the Schedule in which the matters in dis- pute are set out omits certain of the demands made on behalf of the work- men. It was further argued that there were certain matters which were not raised by the workmen and which have been referred for adjudica- tion. My attention was drawn to items 7, 16, 17, 20, 23, 24, 25 and 54. Many of these items however overlap and some of the demands made on behalf of the workmen are covered by the items which have actually been referred to the Tribunal and merely because the items in the

Schedule do not correspond in every minor respect with the demands made on behalf of the workmen, it cannot be held that the Central Gov- ernment did not apply its mind to the matter. Indeed if there is any item upon which there is no dispute and there is complete agreement between the Management and the workmen, the Tribunal will not feel the neces- sity of going into it. This apparent superfluity or lack of exact corres- pondence does not affect the validity or legality of the reference in any manner,

9. Finally it was argued that the reference was mala fide because the strike notice was merely intended to call the Management to the negotiat- ing table. I nfid it impossible to take this view. The strike notice clearly says that it was a notice under section 22(1) of the Industrial Disputes Act and such a notice makes it incumbent upon the appropriate govern- ment to refer the dispute under the second proviso to sub-section (1) of Section 10. Apart from this, however, the succession of events which preceded the reference makes it abundantly clear that not only was there an apprehension of a serious dispute arising between the parties, but there was indeed a dispute which required settlement. A work-to-rule direction had already occasioned some dislocation of the air services and consider- able inconvenience to the public. The workmen were making demands which the Management did not feel justified in immediately conceding. Asking for negotiations on certain matters did not mean that there was no dispute. Indeed the circumstances set out above disclose a picture of conflict and a crisis in the industry which clearly demanded instant atten- tion. Government had intervened by announcing the intention to appoint a commission and when this did not improve matters and a strike notice was given, the present Tribunal was appointed.

10. Counsel for the unions cited before me a number for rulings on which reliance was sought to be placed. These rulings, however, do not support the contention that the present reference is invalid. Indeed in none of the cases cited was it held that a reference in similar or even distantly related circumstances was invalid. I may briefly refer to the various cases cited. In 1960(1) Labour Law Journal 491, Supreme Court held that even the members of a minority union may, acting collectively give a notice to terminate an award binding upon the management and the employees. In 1961(1) Labour Law Journal 303, it was held that a settlement under section 18 of the Industrial Disputes Act is binding only if it is arrived at with the assistance and concurrence of the conciliation officer. Counsel for Party No. 3 contended that since the present agree- ments had not been arrived at with the assistance of the conciliation officers, they were not binding and did not need to be terminated. Some of the agreements, however, did bear the signature of the conciliation officer. But this make? no difference to the case,, because here it is not a question of whether the agreement was binding or not but whether there was a desire and the expression of that desire to change the terms of the agreements. Upon this point there can be no two opinions because the workmen had persistently and repeatedly made demands wholly inconsistent with these agreements.

11. In 1P62(1) Labour Law Journal 611, the presentation of a charter of demands was considered enough to terminate the settlement between the two parties. This ruling cited by Party No. 3 who supported the refeience can lend support to the validity of the reference although the facts of the case were somewhat different to the facts of the case before me. In 1953(1) Labour Law Journal 174 there was a dispute between the

Management of a cinema house and its workmen. This was followed by a reference which covered the entire body of workmen in all the cinema houses. The fact that the Prabhat Talkies with which the dispute origi- nally arose settled the dispute with their workmen did not invalidate the reference. The case has hardly any bearing on the matter before me but it does go to show that a dispute may remain a dispute even though some of the workmen enter into an agreement with the management.

12. For the reasons given above, I must find that there was an indus- trial dispute between the Management of Air-India Corporation and its workmen as defined in section 2 of the Industrial Dispute? Act and that the reference made by the Central Government was validly made."

CHAPTER III

Brief History of Civil Aviation In India

For a proper appreciation of the nature of the demands made by the various unions and for making a just assessment of the workmen's real needs, as also of the capacity of the Corporation to bear the additional burden sought to be imposed by these demands, it is relevant to make a quick retrospect of the history of Civil Aviation in India and stPle briefly the manner in which the Air-India Corporation came to be established a>id the circumstances which have contributed to its progress and brought it to its present status.

2. In preparing the narrative which follows, I have borrowed largely from the very lucid and detailed account set out in the report of the Air Transport Enquiry Committee, 1950, and the award made by Shri D. V. "Vvas, who presided over the-Committee of Arbitration entrusted with the consideration of an industrial dispute between the Air-India International, Bombay, and some of the workmen employed by it. That dispute arose •out of demands under 56 heads made by the Air Corporations Employees' Union represented before me by Party No. 2. Many of these demands iorm the subject matter of the present reference, and in the comprehensive and voluminous award made by Shri Vyas, he reviewed the history of civil aviation in India at considerable length. The annual reports of the Corporation have a^so provided a mine of information upon the facts here set out. Counsel for parties relied upon these three sources and a?cepted the accuracy of the data of which I have made use. To these sources I owe a debt of gratitude,

3. The beginning of civil air transport in this country was made in 1931. Aftei an abortive attempt to set up an Indian State Air Service, arrangements were made with the Imperial Airways Limited to operate an air service between Delhi and Karachi under a charter of agreement with the Government of India. The arrangement did not prove satisfac- tory, and on the expiry of the agreement, the Delhi Flying Club was •entrusted with the task of carrying mails, while the transport of passengers by air was for the time being discontinued.

4. A fresh beginning was made in October 1932, when Tata Sons Limited organised a weekly service between Karachi and Madras with Intermediate halts. The aircraft in commission consisted of two light single-engined planes, and their freight was comprised almost entirely of mails carried under contract with the Government of India or offered privately. The Tata Airline soon established a reputation for safety and

regularity, and in 1934 doubled the weekly frequency on the Karachi- Madras route. In the following year, the Company started a weekly service between Bombay and Trivandrum, and in 1937, further extended its activity by starting a bi-weekly service between Bombay and Delhi. In the meantime, another company, the Indian National Airways Limited, came into existence. This company, with its headquarters at Delhi, start- ed a weekly service between Karachi and Lahore, linked with the Impe- rial Airways service at Karachi. The various services mentioned above were operated during fair weather only as ground organisation had not yet been sufficiently developed to permit operation during the rainy season or when climatic conditions were adverse or difficult.

5. The next important stage of development was reached with the intro- duction of what was known as the 'Empire Airmail Scheme.' Under this scheme, the whole of the letter mail between 1 he. Empire countries and the United Kingdom/Australia and United Kingdom/Africa routes was to be conveyed by air. The Government of India in association with the Gov- ernment of Ceylon participated in the scheme which provided facilities for distribution, by air within India, of the mail brought by the Imperial Airways un to Karachi, and for bringing to Karachi Indian mail destined for the Empire countries. A contract was accordinglv entered into in 1938 between the Government of India and Tata Sons Limited pnd the Indian National Airways Limited for the carriage of mails over their res- peel ive routes under the Empire Air Mail Scheme. This contract was to remain in force for 0 period of fifteen years. The scheme stepped up the - frequency of the two air companies, Tata Sons Limited and the Indian National Airways Limited, and furnished an opportunity for the deve- lopment of passenger and freight traffic. The number of miles flown by the Tata Sons Limited and the quantity of mail load carried increased several fold.

fi. At about this time, a third company known as the Air Services of India made its appearance, but the venture was short-lived and after a brief flash of popularity made possible by its attractive, but uneconomic fares policy, the company closed down in 1939, leaving the Tata Sons Limited and the Indian National Airways Limited in complete possession •of the business of internal air transport. These pioneers had by now be- come firmly established concerns, relying mostly on their own initiative and resources. World War II now broke out, and the normal services had to undergo drastic changes owing to the high priority of defence require- ments. After a brief initial curtailment of their services, the two com- panies were entrusted, in collaboration with the Royal Air Force Trans- port Command, with the operation of services in different areas in increas- ing intensity according to the progressive requirements of the Government. Thev were called upon to carry freight, military personnel, mails and civil passengers of high priority. Their scope of activity was steadily extended and intensified; more modern aircraft, made available under the lease-lend scheme, began to be handled, technical personnel was trained and employed in an increasing number, so that when the war ended, an opportunity for operating air transport on a larger scale was available. The lease-lend aircraft were withdrawn and the companies equipped them- selves wilh Dakotas purchased from the United States Foreign Liquida- tion Commission. With bigger aircraft and the addition of further routes, Tata Son? Limited increased the average monthly ton-mileage flown from 1,22,507 in 1945 to 3,09,604 in July 1946 and the monthly average of pas- sengers carried from 1,075 in 1945 to 3,727 in July 1946. The Government

policy at that time was contained in an announcement made in Mayf 1945:'

"The policy of the Government of India is to promote the develop- ment and operation of air transport services, internal and external, by a limited number of sound and reliable private commercial organizations, with their own capital and operated under normal commercial principles of risk of loss and pros- pects 01 gain. The operation of air transport services would be subject to licences granted by Government. Without such a "licence no air transport service can operate. The grant of State assistance in specific cases will be entirely at the discretion of Government and on conditions to be laid down in each case. In specific cases, Government should take a financial interest in the Companies operating air services and appoint a Director on the Board. The Government should not, however, take a con- trolling share in- such cases."

7. There had been no licensing of air transport services in the pre-war period. The selection of routes and the operation of services were left entirely to the discretion of the companies, and this depended upon the availability of ground facilities and the resources of the companies con- cerned. The deficiencies and limitations of this state of affairs, however, raised no serious problems as at that stage the field of air transport was limited and in the nature of a pioneering venture. 'But the services were operated with a medium of efficiency which inspired public confidence, so that the demand for air transport increased. Anticipating competition in the field, the government, in March 1944, assumed powers to license air transport undertakings and to prohibit the operation of air transport with- out a licence, by amending the Indian Aircraft Act. The Air Transport Licensing Board was set up, and in the first few months of 1946, two more air transport companies came into existence, viz., the Air Services of India and the Deccan Airways Limited. The Tata Sons Limited converted its aviation department into a public limited company which came into existence on July 29, 1946, under the name of Air-India Limited. This concern took over the aviation department of the Tata Sons Limited with all its aircraft, equipment, engineering facilities, air mail contracts and trained personnel, with all the experience acquired over a period of fourteen years of air transport.

8. By the end of July 1946, therefore, the following four air transport companies were operating: —

(i) The Air-India Limited; (ii) The Indian National Airways Limited; (iii) The Air Services of India; and (iv) The Deccan Airways.

In 1947, another company, the Himalayan Aviation Limited, was formed to carry out non-scheduled operations and undertake air survey. This company offered to operate night services and the Air Transport Licensing Board gave it a provisional licence for three months beginning October 15, 1949, for operation by night over the Delhi-Nagpur-Madras and Bombay-Nagpur-Calcutta routes. The Kalinga Airlines, a private company established in 1946, was, in May 1949, given a licence for carrying freight. Some other companies also came into the field, and at the end of two years after the coming into existence of the Licensing Board, there were as many as eleven companies including the ones mentioned above. The most important of these, however, was Air-India Limited. It had taken' over

from the Tata Airline a fleet of 15 twin-engined aeroplanes of which four were held on long lease from the American Government. A few aircraft were subsequently purchased, and by 1946, the Air-India Limited was in possession of 24 multi-engined planes. It employed (in 1946) a total staff of nearly 2,650 including 71 pilots of whom 69 were Indian or Ceylonese "nationals.

9. With the partition of India in August 1947, the air route pattern in- evitably underwent a considerable change. One of the companies went into liquidation, another transferred its headquarters to Pakistan, the Air-India Limited, however, continued to extend its activities. A scheme had been submitted by this company for the establishment of an air service between India and the United Kingdom. This scheme contem- plated the formation of a new company, viz., Air-India International with a capital of "Rs. 2-00 crores in which the Government of India was to take 49 per cent, shares, Air-India Limited 10 per cent, shares, and the balance was to be subscribed by other air transport interests and the public. To start with, it was proposed to operate a bi-weekly service from Bombay to London with an intermediate halt at Cairo, with three Lockheed Con- stellation aircraft. Air-India Limited was to act as Technical Manager of the new company in its day-to-day administration, subject to the control of the new company's Board of Directors. The Government approved of the scheme, and in 1948. it (the Government of India) entered into agree- ments with Air-India Limited and Air-India International. Amongst the important provisions of these agreements were the following:

"(1) The Government of India would take up 49 per cent, of the capital of Air-India International and it would have the option to acquire a further 2 per cent, at any time if it so desired;

(2) The Government would reimburse to Air-India International any loss incurred by it after making provision for depreciation for a period of 5 years, the loss in this context being the actual loss as disclosed by the officially audited accounts of the company;

(3) When the company began to make a profit, not less than 50 per cent, of its annual profit would be returned to the Government in repayment of the subsidy, if any, which had been granted to it in earlier vears. The balance could be retained by the company, and out of that balance a dividend of not more than 3i per cent, might be declared until the whole of the subsidy received by the company from the Government had been paid off:

(4) In respect of Constellation operations, Air-India would be paid a Management fee by Air India International for acting as the latter's Technical Manager on a sliding scale, decreasing from 5 annas per mile for the first one million miles to one anna per mile over 2& million miles flown during the year; and

(5) Air-India International would have exclusive rights of operation over all routes to the West of India within a specified zone, for a period of 10 years."

10. Air-India International was registered on March 8, 1948, and Air- Tndia Limited took up its shares to the extent of 10 per cent. Air-India Limited was appointed General Technical Managers and Chief Booking

Agents of Air-India International for a period of ten years. All the administrative and technical services weiv rendered by Aiv-Tndia Limited at the actual cost incurred. The Bombay-London service was inaugurated on June 8. 1948. The first eight months of the wo'-kiug of A'i'-Iiidia Inter- national resuHed in an operational less of Its. 4-00 lakhs. The Central Government in accordance with the term,, of its agreement made good this loss, and aleo made a provision for depreciation. In the year 1049, there was an increase in the frequencies of the services, and in 1950, there was a net operative profit of Rs. 6-72 lakhs. A further improvement was noticed during 1951 and the ton-miles capacity increased from 1,09,03,000 to 1,41,03,900. , The number of passengers flown increased by 61 per cent, over the previous year's figure. The improvement was maintained in the year 1952 though at a lower late. The increase in the number of passen- gers was 3-8 per cent, over the previous year's figure and the ton-miles, operated were 1,43,58,000. In 1953, the air companies were nationalised and Air-India International Corporation took over the assets and liabilities of Air-India International Limited on August 1, 1953.

11. The Air Corporations Bill, 1953, which received the assent of the President on May 28, 1953, contemplated the setting up of two State Cor- porations— (1) Indian Airlines Corporation, and (2) Air-India Corporation, The first Corporation was intended to undertake the operation of domestic and short-range international services to adjacent countries, and th& second was intended to take over the operation of all long-range interna- tional services. The two Corporations came into existence on June 15,. 1953, and on August 1, 1953, as already stated. Air-India took over the assets and liabilities of Air-India International Limited. The other air transport companies were replaced by Indian Airlines Corporation. A slight complication necessitating adjustment arose because of the fact that Air-India Limited which was acting as the Technical Manager of Air-India International was taken over not by Air-India Corporation but by Indian Airlines Corporation. Therefore, the advantages which Air-India Inter- national I ;v\' .-,_} enjoyed on account of this contact with Air-India Lirri"f! ' in respect of technical management and booking agencies were, on nationalisation, lost to Air-India International Corporation which had to employ its own staff and establish its own workshops, booking offices, sales organisation, equipment to handle its own operations etc. This was achieved by making payments to Indian Airlines Corporation and taking over the workshops and enu^rnont which was the property of Air-India Limited. Indian Airlines Corporal ion had a surplus of staff and work- shop equipment which they could not use profitably, and these assets were transferred in lieu of payment to Air-India International Corporation. Since nearly all the personnel on tho roll of Air-India International Limited was in the employment of Air-India Limited, it was transferred to Indian Airlines Corporation. The result, was that only 551 employees, most of whom wove employed at foreign stations, came on to the pay roll of Air-India International Corporation. A gradual transfer of the staff from Indian Airlines Corporation to Air-India International Corporation was undertaken, and eifected step by step till it was completed in Decem- ber 1955. Thus, riearly 1,800 employees, almost all of whom prior to August 1, 1953, were in the employ of Air-India Limited were first taken over by Indian Airlines Corporation and then transferred to Air-India.

12. The following table gives a brief picture of the financial and ope- rational progress made by the Corporation from the time it was incorporated in 1953 upto the end of the financial year 1964-65:

Operating and Traffic Statistics

S E C

.

3

Aug. 1953

( i i ) ]

Particulars 1904.05 1963/64

1960/61

1962/63

1959/60

1961/62

1958/59

1955/56

1956/57

1957/58

1954/55

March 1954 (8 months)

T H E 1

2

10

12

ir

3

6

3

13 4

9

5

7

24,884

37,063

22,354

25,228

26,306

28,842

23,808 19,695

r9,558

27.924

I4>4i3 8,547 1. Revenue Hours.

G A Z E T T E

O F

I

68.830

292.136 252.053

2. Total Available Tonne Kilo- metres (mil- lion)

216.640

93.486

So-248

161.447

56.114

37-450

N D

87-995

18.375 32S.575

I

A

3. Revenue

Tonne Kilo- metres Per- formed (million)

100-016

22-185

(a) Passenger

8-07

51-126

86-239

15-769

58-647

34-806

33-653

3O-794

35-545

71-054

E X T R A O R D

I

2-827

2-081 (6) Mail

5-011

7-456 7-983

4-253

6-257

4-573

3-9<59

7-771

1-034

4-594

(c) Cargo in-

N A R Y

8-803

10-257

6-115

44-156 37-923

cluding Ex- cess Bag- gage

18-773

13644

30-379

8-935

2-504

3-957

25-4O4

O-25C

0-143

0-O4⁸

0-529

0-828 2-167

0-218

(d) Charters .

4-211 1.389 0-458

4-779

0-647

22-057 156-722

31-270

11-657

111-583

(e) Total Rtkm:

47-486

54-241

132-446

44-095

49-853

94-519 76-299

2 0 3

2 0 4

i

10

2

II

12

6

8

9

13 4

3

5

7

1

4- Available Sea Kilometres (Scheduled Services) (million) .

510-647

1133-057

615-401

2047-379 1770-328

671-590

432-296 290-895 2276-22I

697-786

1434-771

155-913

T H E

5- Revenue Passenger Kilometres Flown (million)

385-500 349-218

582-593

I8O-050 9I-OO9 946 104 821-750 692 195

399-658

247-918

I139 847

39O-79O

6.

G A Z E T T E

2O,05O

88,312

123,270

Revenue Passengers carried

165,736

83,868

40,287

79,825 56,445

237,996

156,535

89,385

190.969

O F

I

7-

N D

6-56

18-4!

I Operating Profit (Rs. in Lakhs)

3,62-03 3,84-25

1826

71-67 89-34

1,17-41

34-05

15-85

3,45-44 76-99

A

8.

J-AO

I-3O

1-00

I-21

1-29

1 31

0.97

0 92

1-35

O-9I

Operating Revenue per Atkm (Rs.)

I-19

1-35

9-

I-2O

1-26

1-27

1-20

0-96

0-79

Operating Cost per Alton (Rs.)

o-8o

0-84

I 19

1-30

I - I 3' 1-33

E X T R A O R D

I

1 0.

N A R Y

3,121 2,102

4,070 3,661

Average number of staff em- ployed

6,090

4.596 4>442

5=873

5.259

5>7O3

6,543

[

P A H T

I I

—

13. It will be seen that the operating profit in the year 1963-64 reached the satisfactory figure of Rs. 384-25 lakhs. The annual report for the year 1963-64 shows that the performance of Airi-India has been in almost all respects better than the performance of other world international services. The increase in passenger traffic was 15'2 per cent over the previous year as compared to the figure of 14 per cent in respect of world international services. The number of passengers carried increased by 20 per cent aa compared with an increase of 14 per cent for world international services. Similarly, cargo increased by 25 per cent as compared with 16 per cent for world international services. The annual report for the year 19G4-65 shows that this satisfactory state of affairs has been maintained. There was an increase of 18-1 per cent in Ihe passenger traffic, of 10'-1 per cent in passenger kilometres, of 16-5 per cent in freight tonne-kilometros, of 4-2 per cent in mail tonne kilometres and of 15'4 per cent in the total revenue tonne-kilometres. There was an increase of 12-5 per cent in the total capacity offered during the year 1964-65 but the volume of traffic carried increased by 18-3 per cent. Financially too, the Corporation war. able to maintain a satisfactory position. The operating revenue rose by 12 per cent increasing to Rs. 30-03 crores. And while the operating expenses in- creased by 15 per cent to Rs. 26-41 crores, there was available a balance of operating proiit of Rs. 362 • 03 lakhs. This was a little less than in the year 1963-64 because the expenses on account of the amounts paid to personnel on account of wages etc. had registered an increase. There was also a larger provision for depreciation and obsolescence. The services of the Corporation are now being operated solely by means of eight Boeings 707. It is proposed to add five more Boeings by the purchase of one each year from 1966 onwards. The Corporation has, for three years running, been able to pay interest on Government loans at the rate of 44 per cent and declare a dividend at the rate of 5 per cent on Equity Capital. In looking at this bright picture and the previous history of the Corporation, it must not be forgotten that a great deal of the initial setback has to be made up and the future kept in view. The Corporation is indebted to the extent of Rs. 13-4 crores which is the amount of loan capital received from the Government. Since the agreement of May 9, 1960, an additional anr nual burden of Rs. 64-35 lakhs has been assumed by the Corporation and this is made up of the following items:

(i) Rs. 21'00 lakhs per annum consequent upon the increased pay and allowances and benefits conceded by the agreement of May 9, I960, with Party No. 2 (vide paragraph 8 of the Corporation's written statement);

(ii) Rs. 15-15 lakhs per annum representing the increase in the wages bill resulting from various agreements with Parties 4, 6 and 7 (vide paragraph 9 of the Corporation's written state- ment) ;

(iii) Rs. 4-70 lakhs per annum on account of agreement reached with Party No, 5;

(iv) Rs. 13-00 Iskhs per annum on account of relief given subse- quent to the present reference and before the interim relief . was approved by this Tribunal; and

(v) Rs. 10-50 lakhs consequent upon the award of interim relief mutually agreed upon by the Corporation and Party No. 2.

14. In addition to these amounts, further liabilities have been under- taken by the Corporation in respect of payments to its workmen under the

various agreements mentioned in Chapter I, The extent of these liabili- ties is:

(i) Rs. 14 • 84 lakhs under the agreement dated July 26, 1965, entered into with the Indian Pilots' Guild (Party No. 4); and

(ii) About Rs. 6 • 10 lakhs under the agreement dated October 15, 1965, entered into with the All-India Aircraft Engineers' Asso- ciation (Party No, 5).

15. It is, however, the future which is really important and which must, by reason of the impact of fears and hopes inspired by it, give shape to the present and mould all immediate and proximate action. The Cor- poration has, over the years, acquired a measure of prestige and reputa- tion which have won it pride of place in the ruthlessly competitive field of air transport. This has been made possible by a high standard of effici- ency, a meticulous maintenance service and above all, by a sense of finan- cial security engendered by Government backing at the initial stage. Financial solvency and the building up of adequate reserves for unpredict- able eventualities and a programme of expansion, are even more import- ant at a time when rivalry is becoming fiercer both by an increase in the number of competitors and by the advancement of science which conti- nues to feed the demands of an exacting public for faster, safer and more luxurious air transport. The Corporation is at present operating with eight Boeing 707 aircraft. Already, BOAC with an earlier entry in the air transport business and with larger resources, has acquired what is considered to be a better plane in VC-10. Travel by supersonic aircraft seems to have become a desideratum which will perhaps be realised in the not very distant future. The Concorde Project in France and the construction of supersonic aircraft in the United States of America are beginning to take practical shape and it is hoped that in the early nineteen seventies these new aircraft will begin to operate. The Corporation can- not afford to lag behind other transport companies in acquiring the most upi-to-date machines and providing the latest form of air transport to its customers. In the meantime, the purchase of additional jet equipment, expansion of workshop facilities, the construction of an additional hanger and administrative buildings in Bombay and residential staff quarters at Bombay, Delhi, Calcutta and Madras, are urgent needs. These are not the details of a fantasy but matters of actual reality facing the Corporation. Let me quote a passage from the draft outline of the Fourth Five-Year Plan prepared by the Corporation (Exhibit M-62): *

"The replacement of the fleet of Piston engine aircraft by jet equip- ment and the introduction of jet services on all of the Corpora- tion's routes and the building up of jet frequencies on the Atlantic and other routes constituted the main development programme of Air-India in the 3rd Plan period. The Corpora- tion entered the jet age with a fleet of 3 Boeing 707 Jet aircraft during the last year of the 2nd Plan period with one more Boeing on order to be delivered early in the 3rd Plan period. The operating fleet of the Corporation at the beginning of the 3rd Plan period consisted of 3 Boeings and 9 Super Constella- tions and the programme in the 3rd Plan provided for the pur- chase of 4 additional Boeings. The 4th aircraft ordered in the 2nd Plan period was delivered in April 1961 and the 5th and 6th Boeings were delivered in March and April 1962. The fleet

•NfjTE :—See Aopendix VIII for the objection taken by Air-India to the Admlssibility of the document and the order passed thereon.

of Super Constellations was sold to the Indian Air Force; 4 aircrait were delivered to them during 1961-62 and the remain- ing 5 were delivered during 1962-63. With the disposal of the emire fleet of Super Constellations, Air-India emerged as the first all jet operator in the World with a fleet of 6 Boeings. To meet the expanding requirements, a 7th aircrait was ordered in February, 1963 for delivery in May, 1964, and at present there is a proposal for acquiring an 8th aircraft during the current Plan period. Air-India will then be operating with a fleet of 8 jet aircraft during the closing year of the 3rd Plan period.

Air-India's present fleet is already fully stretched, its current rate of utilisation ol approximately 3750 hours per aircraft per annum being amongst the highest in the World. Its ability, therefore, to secure its legitimate share of the growing market will itself depend on the continuous expansion of the Corpora- tion's fleet in step with the growth of traffic on its existing routes and the extension of its operations to new routes. Tak- ing both factors into account, it has been roughly estimated that during the 4th Plan period, the Corporation will require to add, on the average, about one additional aircraft every year. The development programme during the 4th Plan period consists therefore of the purchase of 5 additional aircraft over and above the 7th aircraft to be delivered in May, 1964, and an 8th aircraft to be ordered shortly for delivery in the summer of 1965.

Looking ahead to the end of the decade and beyond, the advent of supersonic aircraft looms as a highly significant factor to be taken into consideration in assessing the Corporation's future equipment requirements and prospects. The supersonics are generally expected to go into operation early in the 1970s. Consistent with the policy consistently followed with great success all these years to offer the best and most efficient equip- ment competitively, it is a practical certainty that the Corpora- tion will have to place advance orders for some supersonic transports during the 3rd Plan for delivery in the 5th Plan period."

16. The estimated cost of five subsonic jet aircraft is Rs. 27-93 crores including the expenses to be incurred on workshop expansion, hangar, equipment etc. Adding the cost of administrative buildings and staff quarters, the total liability during the period of the Fourth Five-Year Plan is expected to be Rs. 32-43 crores. This, according to the Corporation, is an absolute sine qua non if Air-India is to survive and maintain its present position in the field of air transport. The capacity of the Corpo- ration to pay additional wages and allowances is perforce conditioned and limited by these compulsive and inexorable prognostications.

17. The need for careful planning is further emphasized by a consi- deration of the financial position of the various air transport companies before the date of nationalisation. The Air Transport Inquiry Committee pointed out in 1950 that almost all companies were running at a loss. The Air-India showed a profit for 1947-48 but a small nominal profit only in 1949. The cost of operation was hi^h and this was, to a large extent,"due to high salaries and excessive staff. The Indian National Airways sus- tained a loss for the three years, 1947-48, 1948-49 and 1949-50. The main cause was high co.it of operation and a very high proportion of captains to co-pilots. Indeed the pilots were almost all captains drawing high

salaries. There were some other contributory causes also. The Air Services of India sustained a loss in the years 1946-47 and 1948-49. In 1947-48 there was a profit resulting from the engagement of several Gov- ernment charters to transport evacuees upon the partition of the country. The Deccan Airways sustained a loss in 1947 and 1949 and made only a small profit in 1948, so that during the three-year period 1947—49, there was an overall loss of Rs. 35-00 lakhs. An exception was the performance of Airways (India) which showed a profit. Also there was close control exercised over the strength of the staff which was. kept at a low level. But, the maintenance standards of appearance, passenger comfort and convenience were lower than desirable and below what can be tolerated in a competitive field. The Bharnt Airways sustained a loss during all the three years, 1947, 1948 and 1949, and its financial position was far from satisfactory. The Indian Overseas Airlines sustained a loss during all the threee years as its operating costs were too high. The Himalayan Avia- tion Limited sustained a loss of Rs. 3-83 lakhs in the three years, 1947, 1948 and 1949. The total loss sustained by all the air transport companies during this period of three years was Rs. 110-00 lakhs. The Inquiry Com- mittee found that on the one hand the salaries paid to the staff were high and on the other the fares because of intense competition had been reduced to uneconomic levels. There was only a limited supply of techni- cal personnel available and this resulted in a rise of wages and salaries to levels which made the operation uneconomic.

18. The experience of the past must make us wiser when considering the demands of the workmen and whereas all just and equitable demands should be conceded, a measure of caution is advisable when loosening the purse strings, for it is necessary to ensure that the financial capacity of the Corporation is not taxed beyond endurance in order to satisfy those demands of workmen which are not fully justified by their conditions of service, by their economic requirements, the air transport market and the wages paid to workers with similar qualifications or doing comparable work in other industries and business houses in the country. This is an extremely difficult balancing act and to tread along the tight rope which stretches between industrial discontent and industrial peace is not the sort of performance which wins universal applause.

CHAPTER IV

History of Industrial relations in the Corporation

A brief history of the genesis of the present dispute and its subsequent growth and development may now be stated.

2. Differences between the Management of Air-India Ltd., which, a3 must be clear from the narrative set out in the previous chapter, was for all practical purposes the predecessor of the Air-India Corporation, and its workmen had arisen even before the nationalisation of the air transport industry in August, 1953. These differences constituted an industrial dispute within the mischief of the Industrial Disputes Act, 1947, and were referred by the Government of Bombay to an Industrial Tribunal under Section 10 of the Act. The parties to the dispute, however, arrived at a settlement, and the Tribunal made an award in terms of this settlement on April 26, 1949 (Award No. 15 of 1949 published in the Bombay Govern- ment Gazette on May 12, 1949). This award remained operative with regard to pay scales and conditions of service of the employees of Alt- India Ltd., till the date of nationalisation.

3. Another dispute between Air-India Ltd., and some categories of their employees regarding certain matters, was similarly referred by the Gov- ernment of Bombay to an Industrial Tribunal in 1951. This dispute too, was settled by mutual agreement, and an award, in terms of the settlement arrived at, was made on May 2, 1952.

4. Upon the nationalisation of the air transport industry and the for- mation of the Indian Airlines Corporation for operating the domestic and short-range international routes to adjacent countries and of the Air- India International Corporation for operating all long-range international services, the latter Corporation took over the assets and business oi' Air- India International Ltd., and the former, i.e. Indian Airlines Corporation, took over all the other transport companies. Until this moment the work- shop maintenance equipment and ground facilities used for the business of Air-Indis International Ltd., were owned by Air-India Ltd., who also acted as technical managers of Air-India International Ltd., and who pro- vided all the flying and ground personnel in India, and were, in addition, their chief booking and handling agents in India. These assets automati- cally vested in the Indian Airlines Corporation, the successors of Air- India Ltd. This gave rise to certain difficulties and complications, fcr tho Air-India International Corporation had no workshop or ground facilities of its own, whereas, the Indian Airlines Corporation found that it had a surplus of staff and of workshop equipment inherited from a n u m b er of companies. So, an agreement was arrived at between the two Corpora- tions by which the Air-India International Corporation acquired work- shops and equipment and also such of the surplus staff as the Indian Air- lines Corporation could spare. Only 551 persons came directly on to t he pay roll of the Air-India International Corporation and they were for tho most part employed at foreign stations. The programme of transfer of the surplus staff from tho Indian Airlines Corporation to the Afr-India International Corporation was implemented gradually and completed only in December, 1955. In this manner, 1797 employees, taken over by the Indian Airlines Corporation, were transferred to the Air-India Interna- tional Corporation.

5. This adjustment had been anticipated by the framers of the Air Corporations Act, and Section 20 of the Act was intended to deal with such difficulties and anomalies as might result from the transfer or exchange of personnel between t he two Corporations. Section 20 reads as follows:

" (1) Every officer or other employee of an existing air company (except a director, managing agent, manager or any other per- son entitled to manage the whole or a substantial part of the business and affairs of the company under a special agreement) employed by that company prior to the first day of July, 1952, and still in its employment immediately before the appointed date shall, in so far as such officer or other employee is em- ployed in connection with the undertaking which has vested in either of the Corporations by virtue of this Act, become as from the appointed date an officer or other employee, as the case may be, of the Corporation in which the undertaking has vested and shall hold his office or service therein by the same tenure, at the same remuneration and upon the same terms and conditions and with the same rights and privileges as to pension and gratuity and other matters as he would have held t he same under the existing air company if its undertaking had

not vested in the Corporation and shall continue to do so unless and until his employment in the Corporation is terminated or until his remuneration, terms or conditions are duly altered by the Corporation;

Provided that nothing contained in this section shall apply to any officer or other employee who has, by notice in writing given to the Corporation concerned prior to such date as may be fixed by the Central Government by notification in the Official Gazette, intimated his intention of not becoming an officer or other employee of the Corporation.

(2) Notwithstanding anything contained in sub-section (1), the Central Government may direct either of the Corporations in which the undertaking of any existing air company has vested to take into its employment any officer or other employee who was employed by the existing air company prior to the first day of July, 1952, and who has been discharged from service in that company on or after the said date for reasons which, in the opi- nion of the Central Government, appear to be inadequate for 1 the purpose and where the Central Government issues any such direction, the provisions of sub-section (1) shall apply to such officer or other employee as they apply to any officer or other employee referred to therein.

(3) As from the appointed date the trustees of the provident funds and pension funds or pension schemes of each of the existing air companies shall transfer to the Corporation concerned the balances lying to the credit of each of the employees whose services have been transferred to that Corporation by virtue of this Act and also all other balances of the funds or schemes as shall remain after satisfying all demands and liabilities, and thereupon the trustees shall be discharged of the trusts by virtue of this Act.

(4) Notwithstanding anything contained in this Act or in the Indian Companies Act, 1913 (VII of 1913) or in any other law for the time being in force or in any agreement entered into by an existing air company or in the articles of association of any such company, no director, managing agent, manager or any other person entitled to manage the whole or a substantial part of the business and affairs of the company shall be entitled to any compensation against any existing air company or against either of the Corporations for the loss of office or for the premature termination of any contract of management entered into by him with any existing air company and where any existing air com- pany has, after the first day of July, 1952, and before the commencement of this Act, paid to any such person as is referred to in this sub-section any sum by way of compensation to which the person receiving such compensation would no^ have been entitled if this sub-section were in force at the time of such payment, the existing air company shall be eniitled to claim refund of any sum so paid."

6. The provisions of this Section applied to those persons only who became officers or employees of one of the two Corporations on the appointed day. Those who became employees of the Tpdian Airlines Cor poration were entitled to the same terms and conditions and the samfc

rights and privileges with regard to pension, gratuity and other matters which they had enjoyed when in the employ of Air-India Ltd., or any of the other companies. Similarly, those individuals who became the employees of Air-India International Corporation on the appointed day, became entitled to the terms, conditions, rights and privileges regarding pension, gratuity and other matters enjoyed by them in the previous employment.

7. Despite the guarantee given by Section 20, the prospect of nationali- sation gave rise to certain misgivings in the minds of the employees of the Air-India Ltd.. and on June 13, 1953, the Air-India Employees' Union wrote a letter to the Labour Department of the Government of Bombay urging that the scales of pay and other conditions of service obtaining in the Air- India Ltd., should be made applicable to all workmen employed by Air- India International Ltd. I have mentioned the circumstance particularly because the Central Government's present order of reference includes a determination of the relationship which should subsist between the wage- structure of Air-India and "the wage-structure of the Indian Airlines •Corporation with reference to-comparable categories of workmen perform- "ing similar functions" and also because during the course of the arguments before me, references were frequently made to the pay, allowances and other amenities available to the workmen of the Indian Airlines Corpora- tion. This rivalry and the desire to obtain equal treatment stem from the above described manner in which the personnel of the private companies was transferred to the two Corporations.

8 Almost immediately after the nationalisation of the air transport industry, the Air-India Employees' Union submitted in September 1953, a list of 26 demands to the Corporation including a demand for the con- tinuation of the pay scales and other conditions of service which they had enjoyed while in the employment of Air-India Ltd. A few months later, in April 1954, the same union again wrote to the Corporation submitting a list of 26 demands for settlement. Six months later (in October 1954), the Air Corporation Employees' Union presented a charter in which a demand for the revision of salary grades was included. There was no demand for the application of the previous scales of pay obtaining in Air- India Ltd, for the obvious reason that a complete revision of salary grades was now being demanded. While this charter of demands was under the consideration of the Corporation, the Air Corporation Employees' Union approached the Conciliation Officer in November 1954, for starting conci- liation proceedings, and while the matter was before the Conciliation Officer, a supplementary list of 49 demands was submitted in September 1956. This was followed by a notice of strike by the Air Corporation Employees' Union in January 1957. The Conciliation Officer, however, continued his endeavours to reach a settlement until January 1958, when the proceedings had to be terminated because the Union refused to sign a package deal and the Corporation was unwilling to sign a partial settle- ment, After this failure, the Union, directly approached the Corporation for starting negotiations regarding the demands which had been consi- dered by the Conciliation Officer. The dispute was withdrawn from the Conciliation Officer on April 1, 1958. The Corporation agreed to hold negotiations and constituted a Negotiation Committee for the purpose. "Negotiations between the Corporation and the Air Corporation Employees' Union continued until July 1958, when there was a breakdown because the Union was again not willing to sign an agreement disposing of all the demands and although many of the differences were resolved, the Corpo- ration could not come to a satisfactory agreement upon all matters. In

August 1958, the same Union, i.e., the Air Corporation Employees' Union, presented a re-vised charter containing 57 demands and this dispute was again taken up by the Conciliation Officer. The Conciliation Officer achieved some success this time and many of the demands were disposed of upon an agreement reached by the parties on April 1, 1959. On the same date, another agreement was drawn up by which the dispute regard- ing the remaining items was referred to a Committee of Arbitration con- sisting of two representatives of the Corporation, two representatives of th= Union and an independent Chairman of the status of a Judge of a High Court to be nominated by the Government, Shri D. V. Vyas, a retired Judr^e of the High Court of Bombay was appointed Chairman of this Corvmitteo of Arbitration. I need not go into the details of this somewhat unhappy and unfortunate episode. The facts are contained in the judge- ment of the Bombay High Court reported in 1962-LLJ.I-31 which may be referred to. Hero it is sufficient to' say that in the course of Shri Vyas'a enquiry, the Corporation and the Union arrived at a settlement through their representatives who were members of the Arbitration Committee. The settlement thus reached was signed by the four representatives and wan laid before Shri Vyas for his signature and approval. Khri Vyas, however, declined to sign it or act upon it for he took the view that the representatives of the Corporation on the Committee for Arbitration had no authority to sign a settlement of this nature and also that they had acted under pressure. He, therefore, gave an independent award of his- own. This was set aside by the High Court of Bombay on appeal and the settlement arrived at between the parties on May 9, 1960, was made the basis of an award binding on the Darties for a period of three years, i.e., upto May 9, 1963.

9. This award, following upon an agreement with the Air Corporation Employees' Union, prompted demands from the other \mions and similar agreements were entered into with Party No. 4 in April 1960, Party No. & in September 1960, Party No. 6 in March 1961 and Party No. 7 in July 1960 and October 1962. Each of these agreements was to remain in force for a period of three years.

10. Almost as soon as the agreements expired, and in some cases even before the term of the agreement had run out, memoranda and charters of demands of various kinds were drawn up and submitted to the Corpora- tion., The agreement with the Air Corporation Employees' Union, for instance, was to expire on May 9, 1963.- This agreement governed the con- ditions of service of the employees belonging to Air-India Employees' Union also, for as I have already stated, the Air-India Employees' Union was formed by a group of employees who were originally members of the Air Corporation Employees' Union, and in September 1962, separated and formed themselves into Air-India Employees' Union. On November 21, 1963 the Air-India Employees' Union sent a notice to the Corporation ter- minating th'j agreement of May 9, I960, and in the January following, sub- mitted a charter of 31 demands which included a demand for higher salaries, a 50 per cent, increase in dearriess allowance and a number of other allowances and benefits almost all of which are included under the various items enumerated in the Schedule to the present order of refer- ence. A similar memorandum comprising 27 demands had already been presented by the Air Corporation Employees' Union on December 30, 19fi3, followed by a list of issues relating to Cabin Attendants (who are also members of the Air Corporation Employees' Union) on July 8, 1964. Similar charters or memoranda were sent by the remaining four parties during the months which followed. Pvelations between the Corporation

and its employees were rapidly deteriorating and the Government decided to intervene. The Minister of Transport made a statement in the Lok Sabha on March 23, 1964, announcing the intention of the Government to set up a committee to undertake a detailed and comprehensive enquiry into the grievances of the workmen and other allied matters. On June ], 1964, the Air Corporation Employees' Union, issued an Information Bulletin containing its objections to the steps taken by the Corporation for the grant of interim relief to its workmen and the same union gave a directive on June 20, 1964, to its members to follow a 'work-to-rule¹ policy with effect from June 21, 1964, This was followed, a few days later, by another Information Bulletin calling upon the members of the Union not tn do overtime work from June 26, 1964, and no work on Sundays with immediate effect. These latter directives were, in fact, in operation for the period June 26 to July 26.

11. On July 2, 1964, the Government of India issued a press note announcing that a retired Judge of a High Court had been appointed Chairman of the Committee of Inquiry envisaged in the statement of the Minister of Transport in the Lok Sabha on April 23, 1964. The Air Cor- poration Employees' Union, however, gave a strike notice to the Corpora- tion under sub-section (1) of Section 22 of the Act. Another'strike notice was given by the Air-India Employees' Union on July 10, 1964. The Cen- tral Government then appointed the present Tribunal and made the reference set out in Chapter I above.

CHAPTER V

Principles of wage^structure

In this chapter I propose to examine some general principles and con- siderations which must be borne in mind while determining the wage- structure of the various categories of workmen employed by the Corporation, I shall first attempt to extract a consistent poliry oi" universal application from the opinions expressed by numerous wage boards, committees and sociological and economic experts who have dealt with the question of wage-structure in its different aspects; I shall next discuss a number of authoritative pronouncements of industrial tribunals and of the Supreme Court and finally I shall endeavour to deduce such guiding rules and considerations which have a particular bearing on the wage- stiucture of the workmen of the Air-India Corporation. Let me confess at once that in the very nature of things it is impossible to find a mathe- matically accurate yardstick for calculating the salaries of any class or grade of employees, and any determination of this question must of necessity, be to a laige extent empirical and approximate and the result of a compromise between the seemingly irreconcilable elements of the demands of professedly ill-paid workers, admittedly high prices, the desire to raise the'people's standard of living, the capacity of the industry to pay, the competitive world market and the urgent need of capital forma- tion in a country struggling to advance towards the goal of self-sufficiency and economic and political progress. It is necessary not to lose sight of the complete overall picture of the state of the country as one integral and unified entity, lest, if I may stretch a well worn metaphor, in bestow- ing undue attention and care upon individual trees, we fail to assess and thereby neglect and do injury to the total aggregate of trees constituting the wood.

2, It will not be controverted that whereas there are -sociological, humanitarian and ethical reasons for ensuring that the wages in an;/ indus- try, whatever its nature and location, should not fall below a certain minimum figure, there are no such compelling arguments for or against the raising of salaries of the highest paid individuals, for opulence is in itself a desirable state and any anti-social tendency or the use of talents to amass wealth for utterly jelfish or misanthropic¹ purposes can be pde- quately checked by taxation laws. Therefore, considerations which will be applied to the lower naid workmen are entirely different from those which come into play when we examine the adequacy of the remuneration paid to the upcer strata of wage-earners. I accordingly propose to divide wage-earners into three classes:

(i) workmen at the lower levels whose total emoluments are below Rs. 650 per month;

(ii) workmen at the middle level who are paid salaries ranging be- tween Rs. 650 and Rs. 1,500 per month; and

(iii) workmen at the upper level whose total income exceeds the figure of Rs. 1,500 per month

Wage-structure at lower levels

3. Every workman whatever his grade or occupation, is entitled to an adequate wage. In the case of workmen of the lowest grade, however, the expression "adequate wage" assumes a peculiarly compelling meaning, because there is an absolute minimum below which, whatever the financial state of the employer, it would be wrong to depress the quantum of

remuneration, for the minimum represents the dividing line below which lie poverty and squalor and above which only is it possible to maintain the efficiency of a worker. Starvation wages not only make for discon- tent, unrest and humiliation, but also create conditions in which the com- petence and productivity of the worker suffer and this in turn reacts adversely on the? economy of the industry and of the country as a whole. This danger has been present to-the mind of the economists, enquiry committees and tribunals who have given thought to the matter and' endeavour to discover and declare principles of wage fixation at the lower levels. There are three recent landmarks to which attention must br drawn:

(i) In June 1949, a Committee appointed to examine fair wages,.

prepared its report and this report is known as the Report 0/ the Fair Wages Committee.

(ii) In September 1953, the International Labour Office prepared a report for the Asian Regional Conference of the International Labour Organisation held in Tokyo. This is known as Problems of Wage Policy in Asian Countries.

(iii) In 1957 was held the 15th Indian Labour Conference and certain resolutions were passed by this conference.

3.1. The report of the Committee on Fair Wages has now become the standard declaration of what should be the minimum wage of a work- man in India. Some years earlier, the question of wages was considered by Mr. Justice Higgins of the Australian Commonwealth Court of Con- ciliation in what is known as the Harvester case. He denned the living wage as one appropriate for "the normal needs of the average employee, regarded as a human being living in a civilized community." He fur- ther expressed the view that the living wage, apart from ensuring absolute essentials such as food, shelter and clothing, must, provide for "a condition of frugal comfort estimated by current human standards." The Queensland Industrial Conciliation and Arbitration Act lays down that the basic wage paid to an adult male employee shall not be less than i'j "sufficient to maintain a well-conducted employee of average health, strength and competence and his wife a family of three children in ,\ lair and average standard of comfort, having regard to the condi- tions of livin.fc prevailing among employees in the calling in respect of which such basic wago is fixed, and provided that in fixing such basic wage the eaniinga of the children or wife of such employee shall not be taken into account."

'

3.2. Four types of wages have been defined for the sake of clarity : (i) The poverty level which provides nothing more lhan bare sustenance for the worker and his family. This quantum of remuneration is obviously to be frowned upon and derided. Workmen can often be engaged at such a low wage because of the largo mass of unemployed in the country, hut it cannot maintain the workmen in anv degree of competence or self- respect and no self-.respccLjng nation will countenance such heartless and cruel exploitation of its citizens. The Govern- ment will be obliged to legislate and prohibit the employment oF labour at a wage below a certain level. If an industry is un- able to pay a waec higher than this, it has no right to exist.

(ii) The minimum wage or the need-based wage. This is the* absolute minimum which a civilized country should permit Its

workmen to be paid. The need^based wage is calculated on the basis of the food, clothing and housing requirements of the lowest paid worker consistent with his efficiency and self-respect.

(hi) The minimum plus or fair wage. This provides the workmen with a slightly greater measure of comfort. It aims to ap- proach the living wage consistently with the economy of the country and the financial capacity of the industry.

(iv) The living wage which has already been defined above.

3.3. It is generally recognised that the present low level of our nation- al income does not permit of the payment of a 'living wage' on standards prevalent in more advanced countries. So we are obliged to scale down the wages of our workmen and endeavour to provide them with a fair wage instead of a living wage. A fair wage should on no account be less than the minimum wage and should strive to advance towards the living wage. The Committee on Fair Wages discussed this aspect of the matter and formulated a number of principles which must be borne in mind while determining the wage-structure at the lowest level.

3.4. The main conclusions of the Committee were :

(1) The 'living wage' represents a standard of living which pro- vides not merely for a bare physical subsistence hut for the maintenance of health and decency, a measure of frugal com- fort and some insurance against the more important misfortu- nes (paragraph 7),

(2) The 'minimum wage' must provide not merely for the bare sustenance of life but for the preservation of the efficiency of the worker by providing for some measure of education, medical requirements and amenities (paragraph 10).

(3) While the lower limit of the 'fair wage' must obviously be the minimum wage, the upper limit is set by the capacity of in- dustry to pay. Between these two limits the actual wages will depend on :

(i) the productivity of labour; (ii) the prevailing rates of wages; (iii) the level of the national income and its distribution; and (iv) the place of the industry in the economy of the country (paragraph 15).

(4) It is not possible to assign any definite weight to any of the factors that should be taken into account in calculating fair wages (paragraph 26).

(5) Where a benefit granted by an employer goes directly to reduce the expenses of a worker on items of expenditure which are to be taken into account for the calculation of the fair wage, it must be taken into account for calculating the fair wage payable (paragraph 28).

(6) The standard family should be taken as one requiring three consumption units and providing one wage-earner (paragraph 31).

(7) Fair wages should be determined on an industry-cum-region basis (paragraph 34).

(8) For the lowest categories of wage earners the target should obviously be compensation to the extent of 100 per cent, of the increase in the cost of living. For categories above the lowest, a lower rate of compensation is justifiable but the amount of compensation should be on salary scales or slabs (paragraph 45).

(9) There should be progressive improvement in the fair wage, but such improvement will depend on improvement in the economic conditions of the country and of the industry con- cerned (paragraph 46).

3.5. In the course of its report, the Committee observed :

"The comparatively low level of our national income should not be used as an argument against the prescription by law ot minimum standards below which, on social grounds, no one shall be allowed to fall. But, in adopting measures for the betterment of industrial workers, the interest of the commu- nity as a whole should not be overlooked, because, in the words of the Royal Commission on Labour, it is obviously possible to raise the standards of living of sections of indus- trial workers by methods which would involve the diminution of the national income that is available for other sections of the community."

3.6. In paragraph 11 of the report, the Committee observed:

"The attainment of the living wage is, as we have seen, the direct objective of every civilized State and has been repeatedly em- phasised in various international and national declarations. The preamble to the Constitution of the International Labour Organization lays stress on the need to provide an 'adequate living wage' to labour as one of the means of improving those conditions of labour which have imperilled the peace and har- mony of the world. Our own constitution enjoins on the State the responsibility for securing 'by suitable legislation or economic organisation or in any other way to all workers, industrial or otherwise, work, a living wage, conditions of work ensuring a decent standard of life and full enjoyment of leisure and social and cultural opportunities.' The attainment of the living wage is, therefore, our objective too. But nevertheless it is the duty of this Committee to examine how far the present- day circumstances permit us to approach the living wage and how a wage that might be considered fair could be fixed having regard to the many limitations that prevent the immediate attainment of the objective."

3.7. In April 1950, the Prime Minister made a statement in Parlia- ment announcing that the Government was committed to the principle of fair wages as recommended by the Fair Wages Committee; and a few months later a Bill embodying these recommendations—the Fair Wages Bill (1950)—was introduced. It, however, lapsed on account of the dis- solution of the Provisional Parliament, and was not re-introduced, but the fact remains that the Government stands committed to the conception and principles of fair wages as recommended by the Fair Wages Com- mittee. In the Government Resolutions, issued in 1957, setting up tri- partite wage boards for the textile, sugar and cement industries, the

commitment was, in fact, re-affirmed, and the terms o£ reference of the boards required them to work out a wage-structure based on the princi- ples of fair wages as set forth in the report of the Committee on Fair Wages.,

!

3.8. In September 1953, the Asian Regional Conference of Interna- tional Labour Organisation was held in Tokyo and in the resolution which was passed, the Conference considered that :

" (a) it should be the common objective of governments, em- ployers and workers to establish wages at the highest possible level which the economic condition of each country permits, and in future such wages should aim to provide the worker with a fair share of the increased prosperity of the country as a whole resulting from economic development."

3.9. In the Report which was laid before this Conference, some of the main objectives of wage policy in Asia were stated to be :

" (a) to abolish malpractices and abuses in wage payment;

(b) to set minimum wages for workers whose bargaining position is weak because they are either unorganised or inefficiently organised, accompanied by separate measures to promote the growth of trade unions and collective bargaining;

(c) to obtain for workers a just share in the fruits of economic development, supplemented by appropriate measures to keep workers' expenditure on consumption goods in step with available supplies, so as to minimise inflationary pressures; and

(d) to bring about a more efficient allocation and utilisation of manpower through the operation of wage incentives—particu- larly through wage differentials and, where appropriate, sys- tems of payment by results."

3.10. A few extracts from the abovementioned report will illustrate the thinking behind it:

"The Minimum Wages Act, 1948, was passed. In 1950, the Fair Wages Bill was introduced but consideration of it was post- poned. It provides that wage boards would have to fix mini- mum rates of wages payable to employees in any class of establishment; these rates would have to be sufficiently high to enable the worker to provide a standard family with food, shelter, clothing, medical care, and education of children, ap- propriate to his station in life, but the rates should not exceed the wage-paying capacity of the class of establishment con- cerned. Again, they should not be less-than the minimum wage if such a wage had been fixed for the workers concerned, Fair rates of wages would also have to be related to fair work- loads; if a worker did not turn out a fair quantity of work his wages could be proportionately reduced.'^¹).

ur Office, 1956, p. 51.

"Generally speaking, the problem of selecting the appropriate level for the minimum wage consists in striking a balance between the workers' recognised needs for maintaining a certain mini- mum living standard and the economic and social feasibility of ensuring them such a standard of living."^).

"There would be little sense in simply drawing up a household budget satisfying a number of nutritional, medical, hygieni¹ and cultural standards, and decreeing that the minimum wage should correspond to the total cost of that budget, without considering whether the economy would be in a position to supply the goods and services postulated."(⁸).

"The determination of the workers' normal needs, which minimum wage regulations aim to satisfy, consists essentially in draw- ing up a household budget, taking account of certain nutri- tional, medical and other relevant standards, and computing its cost."(").

"The capacity to pay is not an absolute concept. Another conside- ration affecting general decisions regarding the level of the minimum wage will be the need for savings and investment within the framework of a general programme for economic development." (B).

In the course of the First Five-Year Plan, the Planning Commission

observed that:

"the rate of progress has to be determined not only by the needs of the workers but also by the limitation of the country's re- sources . .. Too rapid changes or changes on a wide scale may result in financial, administrative and other difficulties which endanger new reforms and retard further development." (B).

It is said that a rise in wages results in increased productivity but "less convincing results have been reported in some cases and one author* goes so far as to say that in India a rise in produc- tivity caused by a rise in wage^j 'is the very rare exception rather than the rule'." (*E. Da Costa—Indian Industry Today and Tomorrow—Calcutta, 1947—p. 53). (T).

3,11. With regard to the 15th Session of the Tripartite Indian Labour Conference held in July, 1957, the Government made it clear that the recommendations of the Conference should not be regarded as decisions of the Government. They were not formally ratified by the Central Government. But, there is no doubt that these recommendations are entitled to considerable weight. Briefly spekaing, they are :

"(1) While accepting that minimum wage was 'need-based' and should ensure the minimum human needs of the industrial

(a) Ibid, p. 84

worker the following norms were accepted as a guide for all wage fixing authorities including minimum wage committees, wage boards, adjudicators, etc.:

(i) In calculating the minimum wage the standard working class family should be taken to comprise three consumption units for one earner, the earnings of women, children and adolescents being disregarded.

(ii) Minimum food requirements should be calculated on the basis of a net intake of calories as recommended by Dr. Aykroyd for an average Indian adult of moderate activity.

(iii) Clothing requirements should be estimated on the basis of a per capita consumption of 18 yds. per annum, which would give for the average worker's family of four a total of 72 yds.

(iv) In respect of housing, the rent corresponding to the minimum area provided for under Government's (Industrial Housing Scheme should be taken into consideration in fixing the minimum wage.

(v) Fuel, lighting and other miscellaneous items of expenditure should constitute 20 per cent, of the total minimum wage.

(2) Wherever the minimum wage fixed was below the norms re- commended above, it would be incumbent on the authorities concerned to justify the circumstances which prevented them from adherence to the aforesaid norms.

(3) As regards fair wages, the Wage Board should go into the details in respect of each industry on the basis of the recom- mendations contained in the Report of the Committee on Fair Wages. These recommendations should be made applicable to employees in the public sector also."

3.12. Dr. Aykroyd, Director of the Nutrition Research Laboratories, Coonoor, published his conclusions in Health Bulletin No. 23 which has come to be known as Dr. Aykroyd's Health Bulletin. The diet set out by him is known as improved diet. Dr. Patwardhan and Shri Ranga- nathan made certain changes in the improved diet having regard to the fact that Indian workmen are, for the most part, vegetarians. Dr. Ayk- royd's improved diet provides 2600 calories per day and an adequate measure of proteins, fat, carbohydrates and other ingredients which sustain human life. According to him, this diet can maintain an average unskilled labourer at the level of physical fitness which will enable him to discharge his duties with competence. Dr. Aykroyd's diet has been generally accepted as a sound basis for calculating the cost of foodstuffs and for determining the cost of living index for the average worker's family for the purpose of fixing a minimum wage. In 1937, the Bombay Textile Labour Enquiry Committee calculated that the cost of a well- balanced vegetarian diet for 3 units was Rs. 22-8-0 per mensem in Bombay. Allowing for house-rent and certain other items, the Committee came to the conclusion that a wage of Rs. 55/- per mensem was an ade- quate wage for Bombay.

3.13. In 1940, the Rao Court of Enquiry dealing with the G.I.P. Rail- way, low-paid staff found that Rs. 35/- per mensem was the subsistence level in Bombay for 3 units.

3.14. In 3 946, Mr. Justice Rajadhyakriia dealing with the employees of the Postal Department held that in Bombay Rs. 65/- to Rs. 70/- was the minimum requirement of an average working class family.

3.15. In 1947, the Industrial Court of Bombay dealing with the workers of (iiG cotton textile industry in Bombay found that on the basis of 1939 prices, Rs. 30/- was the minimum wage.

3.16. In 1946-43, the U.p. Labour Enquiry Committee was of the opi- nion that Rs. 30/- p.m., on the basis of the pre-war level of prices, was an adequate wage. The Committee examined the standards of living under the heads:

(i) Poverty level,

(ii) the minimum subsistence level,

(iii) the subsistence plus level, which was described as the level at which the income was sufficient not only for physiological existence, but also for some elementary social necessities, medi- cal attention, carfare (tram), insurance, a modicum of rec- reation, clothing compatible with self-respect as well as sufficient to provide bodily protection, an elementary education for the children and some self-improvement requiring expenditure, and

(iv) the comfort level which was defined as the level at which a family is able to live in a decent house or apartment, modera- tely equipped and decorated having reasonably adequate funds available for such items as insurance, education, vacation, health maintenance and amusements.

3.17, The Committee took the subsistpnce plus level as the criterion for the socially desirable minimum basic standard of living. The Com- mittee called this standard the minimum living wage. It recommended Rs. 30 p.m. on the basis of pre-war level of prices as the absolute .mini- mum wage for an unskilled worker.

3.18. In 1952, the Labour Appellate Tribunal in the Buckingham and Carnatic Mills (195? Labour Appeal Cases, page 490) fixed Rs. 27-11-9 as the minimum wage and also allowed 3 annas per point on account of the rise in cost of living index. The Tribunal observed that the infla- tionary tendency occasioned by an increase in wages must be checked as far as possible.

3 19, In May 1956, the All India Industrial Tribunal dealing with the colliery workers recommended Rs. 69/1/- as the minimum wage based an prices prevailing from Julv 1955 onward. The Labour Appellate Tri- bunal accepted this figure of Rs. 69/1/- but observed:

"We do not for a moment suggest that Rs. 69/1/- adequately caters to the reasonable requirements of a family of 3 consumption units, and if circumstances bad been propitious the workmen would have been entitled to more. But this question of wages has to be considered in the larger context of present day wage levels and the economic structure and, therefore, we take the view that it would be unwise to increase the minimum wage of Rs, 69/1/-,"

3.20. In January 1956, the Rajasthan Cotton Textile Labour Enquiry Committee recommended Rs. 65/- p.m. as the minimum wage in Jaipur on the definition of the minimum wage given by the Fair Wages Com- mittee.

3.21. In October 195B, the Ajmer Cotton Textile Labour Enquiry Com- mittee fixed the figure of Rs. 68/- on the same basis.

3.22. In 1959, the Central Wage Board for Cement Industry found that Rs. 61/- represented the cost of food for a 3 unit family. It recommended a minium wage of Rs. 94/- except in the case of Bombay where the figure recommended was Rs. 101/-.

3.23. The Labour Enquiry Committee pointed out that labour in India, generally speaking, is conscious of its rights but not equally of its res- ponsibilities. There is an unwillingness on the part of labour to do diffe- rent kinds of jobs and an insufficient realisation of a responsibility of putting in a fair day's effort in return for a fair wage and absence of a spirit of love to work.

3.24. Exhibit M-40 is a comparative statement showing scales of pay and emoluments fixed by the various Wage Boarda and Tribunals and one or two instances from this statement will suffice to show that the wages which are being paid by the Air-India Corporation are well above the minimum wages in many other industries.

3.25. The Central Wage Board for Sugar Industry fixed for unskilled workers, Rs. 92.50 as the minimum wage and Rs. 97.50 as the maximum wage.

3.36. The National Industrial Tribunal in Bank disputes fixed Rs. 153.48 as the minimum total emoluments of an unskilled worker and Rs. 197.16 as the maximum.

3.27. The Life Insurance Corporation of India, Bombay, paid its un- skilled employees a minimum wage of Rs. 126.58 and a maximum wage of Rs. 233.30.

3.28. The Second Central Pay Commission's recommendation was that an unskilled worker should receive a minimum total wage of Rs. 120.50 and a maximum of Rs. 141.50.

3.29. The various Tribunals which have had occasion to examine the impact of rise in prices upon wage-structure, have taken the view that full neutralisation of the rise in the cost of living is an unattainable ideal. This was the opinion expressed by the Labour Appellate Tribunal in the case of Buckingham and Carnatic Mills (1952 Labour Appeal Cases, page 490). The Tribunal observed that "the industrial worker should also be called upon to make sacrifices like all other citizens affec- ted by the rise in prices due to abnormal conditions, and complete neut- ralisation would tend to add fillip to the inflationary spiral."

3.30. The Central Wage Board for Cotton Textile Industry- set out its opinion as follows:

T he Board has framed its unanimous decisions so as to ensure that the principles of a need-based formula as enunciated by the Resolution of the 15th Indian Labour Conference were kept

in view, that the gap between the present wage and the need- based wage of the formula was filled to the extent that the industry could bear, that the wage-structure was adjusted so as to present a cohesive movement towards betterment of condi- tions in the industry, towards greater rationalisation resulting in greater productivity and towards higher emoluments to labour and that the consumer was not over-burdened."

3.31. The Bombay Textile Labour Inquiry Committee, as long ago as 1937, sounded a note of doubt and warning. The Committee observed: "What we have to attempt is not an exact measurement of a well-defined concept. Any definition of a standard of living is necessarily descriptive rather than logical. Any minimum, after all. is arbitrary and relative. No completely objective and absolute meaning can be attached to a term like the 'living wage standard' and it has necessarily to bo judged in the light of the circumstances of the particular time and country."

3.32. A final quotation from the Report of the Commission of Enquiry on Emoluments and Conditions of Service of Central Government em- ployees—1957-59, will suffice:

"The minimum wage cannot be of the order of Rs. 125, when on the basis of the national income the average for a family works out only to Rs. 97 per mensem. It is not that the entire national income is available for current distribu- tion; a good percentage of it must go towards building up of capital assets, without undergoing distribution. A minimum wage pitched above the level of per capita income, and inten- ded for very wide applicaiion is obviously one beyond tho country's capacity; in ignoring the vital need for savings and investment, such a wage nives no thought to the future; and a wage that exceeds the highest level, and far exceeds the general level in the organised industries is obviously not one needed for protecting those whose living standards are sub-average." (Chapter VII, paragraph 10).

(i) Supreme Court Decisions

4. I shall now briefly examine the Supreme Court cases cited before me by the parties :'

'

4.1. Clerks of the Calcutta Tramways and Calcutta Tramway Com-

pany, Liviited (1956-II-LU-page 450).

In this case, the Supreme Court dealt with an appeal against the deci- sion of the Labour Appellate Tribunal of India, Calcutta. The matter under consideration was the dearnoss allowance to be paid to the clerks and depot cashiers of the Calcutta Tramway Company Limited. Their grievance was that the doarness allowance allowed was not in accordance with the recommendations of the Bengal Chamber of Commerce, of which the Company was a member. The Supreme Court referred to paragraph 71 of the Report of the Central Pay Commission and also paragraph 43 of the Report of the Committee on Fair Wages. The Central Pay Com- mission had not recommended the neutralisation of the entire hipher cost of living by means of dearness allowance. The Committee on Fair Wages had observed that "for the lowest categories of employees the target should obviously be compensation to the extent of 100 per cent of the increase in the cost of living. For categories above the lowest we agree that the same consideration will not apply."

The Supreme Court said: "We can now take it as settled that in matters of the grant of dearness allowance except to the very lowest class of manual labourers whose income is just sufficient to keep body and soul together, it is impolitic and unwise to neutralise the entire rise in the cost of living by dearness allowance. More so in the case of the middle classes."

The Supreme Court took the view that the Labour Appellate Tribunal had proceeded on correct principles in awarding the dearness allowance to clerks and depot cashiers and declined to interfere.

4.2. Crown Aluminium Works and thdir "Workmen A]958-I-LU-Page 1).

This case arose out of the decision of an industrial tribunal to reduce the wage-structure of the employees of the Crown Aluminimum Works. On appeal the Appellate Tribunal reversed the decision of the industrial tribunal holding that "it has been the convention with industrial tribu- nals not to reduce the existing emoluments of the workmen to their pre- judice." The management appealed to the Supreme Court, and although in the abstract the Supreme Court held that the wage-atructure could in some cases be reduced, the appeal of the employers was dismissed. The Supreme O n rt observed: "We do not think it would be correct to say that in no conceivable circumstances can the wage-structure bo revised to the prejudice of workmen. When we make this observation we must add that even theoretically no wage-structure can or should be revised to the prejudice "f workmen if the structure in question falls in the category of the baie subsistence or the minimum wage." The learnod judges affirmed the rule postulated by the Committee on Fair Wages that if an industry cannot pay a wage higher than the poverty level wage, it has no right to exist.

4.3. Standard Vacuum Refining Company of India, Ltd., and its Work-

men (including clerical staff) and another (1961rI-LLJ-page 227).

In two cross appeals between the Standard Vacuum Refining Company of India Limited and its workmen, the Supreme Court considered the workmen's claim for bonus. The Company had resisted the claim on the ground that it was paying a living wage to its workers. Thev had at the same time admitted their financial capacity to meet the entire claim made. The workers alleged that they were not being paid a living waqe and there was a broad gap between the actual wages received by them and a living wage. The appeals arose out of an award made by the In- dustrial Tribunal, Bombay, upon a reference made bv the Government of Bombay. The Tribunal could not, owing to the paucity of the mate- rial produced before it, come to any conclusion on the question of what was the living wage in Bombay but it awarded 5 months' basic earnings as bonus.

The Supreme Court referred to the observations of Mr. Justice Hig- gins in the Harvester case and to the resolution passed by the 15th session of the Indian Labour Conference held in New Delhi On July 11 and 12, 1957, as also to the report of the Fair Wages Committee. It pointed out that there were three categories of workmen's wages—(i) the minimum basic wage which is also the bare subsistence wage or the need-based wage, (ii) a fair wage which should be adequate to cover the normal needs of the average emplovee regarded ns' a human being in a civilized community and (iii) a livinp wage, which is "sufficient for the normal and reasonable needs of the average employee living in a locality where work under consideration is done or is to be done."

The Supreme Court pointed out that the concept of living wage was not a static concept and varied from place to place and from time to time. The considerations which went to determine the need-based wage were pointed out and the Supreme Court came to the conclusion that the workers were not being paid a living wage. The question mainly discussed was the claim of bonus and both the appeals were dismissed by the Supreme Court. The Supreme Court also pointed out that It was not fixing the wage-structure, and so it did not consider it necessary to go into further details regarding the quantum of whnt WKS a fair wage or a living wage. "We are dealing with the contents of the living wage in the present appeal not for the purpose of fixing a wage-structure; the contention raised by the appellant is that since the wages paid to the respondents have reached the stage of a living wage there is no gap bet- ween the actual wage and'the living wage, and so there is no occasion to make a claim for bonus."

4.4. Express News papers (P) Limited and another and Union of

India 'and others (1961-I-LLJ-pagc 339).

(This case was decided on March 19. 1958, nearly three years before the Standard Vacuum Refining Company v. Its Workmen which was decided on January 20, 1961).

In this case the Supreme Court considered the validitv of an award eiven by the Wage Board and the vires of the working Journalists (Con- ditions of Service and Miscellaneous Provisions) Act, 1955. The award was set aside on the ground that the Board had not taken into considera- tion the capacity of the industry to pay. In the course of his discussion, Bhagwati J. made a number of observations regarding the nature of wages and the manciples which should be taken into consideration in fixing wages. He pointed out that the concept of various types of wages was not fixed and static, it varied and was bound to vary from time to time. "With the growth and develoDment of national economy, living standards would improve and so would our notions about the respective categories of wages expand and become more progressive." The learned Judge enumerated three tvnes of wages after discussing a number of au- thorities, economic and judicial. He pointed out that the wages fall in three classes—(1) Living Wage, (2) Fair Wage and (3) Minimum Wage. In defining a living wage, he quoted with approval the Queensland Industrial Conciliation and Arbitration Act which I have nlreadv set out above (vide paragraph 3-1.).

*

The minimum wage he defined, as a wnee which is sufficient to cover the bare phvsical needs of a worker and his fanvlv and also nrovide for some other essential requirements such as a minimum of education, medical facilities and other amenities. He said that a minimum wage must provide not merelv for the bare subsistence of life but for the pre- servation of the efficiency of the worker. The fair wage lav in between these two standards. He referred to the opinion of the Tndian National Trade Union Congress that a fair wage is a step towards a t>rogressive realization of a living wage. He also quoted with approval the opinion of the Government of Bombay :

"Nothing short of a living wafe nan be a fair wage if under com- petitive condition¹;, an industrv ran be shown to be capable of paying a full living wage. The minimum wage standards set up the irreducible level, the lowest limit or the floor below

which no workers shall be paid A fair wage is settled above the minimum wage and goes through the process of approximating towards a living wage."

He observed that whereas the bare minimum or subsistence wage would have to be fp.ed irrespective of the capacity of the industry to pay, t he minimum wage thus contemplated postulates the capacity of t he industry to pay and no fixation of wages which ignores this essential factor of the capacity of the industry to pay could ever be supported. Ha enumerated three principles of fixation of rates o£ wages:

" (1) that in the fixation of rates of wages which include within its compass to fixation of scales of wages also, the capacity of the industry to pay is one of the essential circumstances to be taken into consideration except in cases of bare subsistence or minimum wage where the employer is bound to pay the same irrespective of such capacity;

(2) that the capacity of the industry to pav is to be considered on an industry-cum-region basis after talcing a fair cross-section of the industry; and

(3) that the proper measure for gauging tho capacity of the indus- try to pay should take into account the elasticity of demand for the product, the possibility of tightening up the organisation so that the industry could pay higher wages without difficulty and the possibility of increase in the efficiency of the lowest paid workers resulting in increase in production considered in conjunction with the elasticity of demand for the product— no doubt against the ultimate background that the burden of the increased rate should not be such as to drive the employer out of business."

4.5. Lipton Limited and their employees (1959-I-LLJ-page 431).

In this case, the Supreme Court decided three appeals filed by Lipton Limited against the decision of the Labour Appellate Tribunal which arose out of an award given by the Industrial Tribunal, Delhi.

The Supreme Court dealt mainly with two questions—Bonus and wage-scales. With regard to wage-scales, it affirmed its previous decision in 1961-I-LLJ-33S—Express Newspapers Ltd. v. the Union of India. The Court reiterated that as far as the bare minimum wage is concerned, no industry has the ri"ht to exist unless it is able to pav its workmen at least a bare minimum wage. The industry-ram-region basis for fixing wage- scales was also affirmed.

4 6 Unichoyi (V) and others and State of Kerala (1961 -l-LhJ-page 631).

In this case, the Supreme Court considered the question of minimum wages notified by the Government of Kerala upon a report made by a committee appointed under the Minimum Wages Act. The Supreme Court reaffirmed its previous decision in the Express Newspapers case (1961-I-LLJ-339) and pointed out that whereas the capacity to pay need not be taken into consideration in fixing a minimum wage which is essen- tial for covering the bare physical needs of a worker and his family and for providing for the preservation of his efficiency by meeting his educa- tional and medical requirements, the paying capacity becomes Important when additions are to be made to the components of the minimum wage

which would take the minimum wage to a point near the lower level of the fair wage. There was nothing fresh laid down in this case and the principles enunciated in the'Express Newspapers case were reaffirmed.

4.7. French Motor Car Company Limited and their workmen (1,962- II-LLJ-pnge 744).

Some matters of dispute between the employer and the workmen were referred to the Industrial Tribunal, Maharashtra, and the award was challenged by the employers in an appeal before the Supreme Court. The facts were briefly as follows :—

In 1948, for the first time, there was an agreement between the employer and the employees fixing scales of wages. Soon after this, an award was made with regard to another concern--United Motors (India) Ltd.—which had the result of fixing higher wage-scales for the workers of that concern. These higher scales were adopted bv two other Motor Car concerns, and 1he workmen of French Motor Car Company Ltd. then made similar demands. In 1953, an award was made by which practically the same wage-scalt's were prescribed as in the other three concerns. In 1954. there was another agreement bv which wage-scales of the clerical staff were fixed. Then, in 1958. arose the dispute that gave ripe to the award under appeal. The Supreme Court dealt with three matters—(i) Wage-scales, (ii) Dcarness Allowance and (iii) Provident Fund.

When dealing with the question of the wage-scales, the Court oserv- ed:

(i) "It is now well settled that the principle of industrv-ewm- region has to be applied bv an industrial court, when it pro- ceeds to consider questions like waee-structure. dearness allowance and similar conditions of service. In applying that principle, industrial courts have to compare wage-scales pre- vailing in similar concerns in the region with which it is dealing, and generally speaking, similar concerns would be those in the same line of business as 1.he concern with respect to which the dispute is under consideration,"

(ii) "It was uraed bv the companv that if it compared with con- cerns in its own line nf business, there would he no iustifica- tion for increasing the wa fe-seales for it is already pavin.7 the highest scales in that line of business. We are of opinion that this argument cannot be accented, for it would then mean that if a concern is paying the hirrhe^t warres in a particular line of business, there can he no incmase in wanes in that concern whatever mav be the economic conditions prevailing at the time of dispute."

(iii) "There ;R. however, difference between workshop employees on the onrt hand and clerical nnd subordinate stnfT on 1he other. for workshop employees generally require a particular skill which is peculiar to the particular industry, while the parrv,? cannot be said to a preat extent with respect to the clerical and subordinate staff."

The Supreme Court referred to its judgment in Lipton Limited vs. their emnlovecs (1959-T-LLJ-43!) and said: "In vttrrt. this decision means that in cawe of employees of the class mentioned therein it mav bo possible to take into account even those concerns which are engaged in

an entirely different line of business, for the work of employees of thl3 class is more or less similar in all concerns".

4.8. Hndustan Tmes Ltd, and ther workmen (1963-I-LLJ-page 108).

A dispute between the Hindustan Times Ltd. and its workmen relai- ing to a number of matters was referred to the Industrial Tribunal, Delhi. An award wan made and appeals by both parties were taken to the Supreme Court.

The Supreme Court considered the nuestion of wage-structure, and pointed out that the Hindustan Times Ltd, was in a sound financial posi- tion; it had been mnking big profits even after implementing the increar.n in wages as directed bv the Award; the balance-sheet showed a profit; the company owned its own aeroplanes and possessed immovable pro- perty of considerable value; it had built up good reserves and was still making good profits; its future prospec+s were good having regard to the progress of education in the country and the increasing new^-mindedness of the people.

Das Gupta, J. who delivered the iudgment of the Court dismissing the employer's appeal, laid-down certain principles of fixation of wage- structure and the following observations were made bv him: "The fix- ation of wage-structure is amone the most difficult tn-ks that industrial adiudication has to tackle. On the one hand not or>lv the demands of social -justice but also the claims of national economy require that attempts should be mnde to secure to workmen a fair share of the national income which they help to produce. On the other hand, care has to be taken that the attempt at a fair distribution does not tend to drv up the source of the national income itself. On the one hand, l^+ter Irvine con- ditions for workmen that can only be possible by giving them a "living wage" will tend to increase the nation's wealth and income. On tbp other hand, unreasonable inroads on the profits of the capitalists might have a tendency in drive capital awav from fruitful employment and even to affect preiudicial]y capital formation itself. The rise in prices that often, results from the rise of the workmen's wages ranv, in its turn, affect other members of the oommunitv and mav even affect rvreiudi- cially the living conditions of the workmen themselves. The effect of euch a rise in price or the country's international trade cannot also be always ignored. Thus numerous complex factors, some of which nre economic and some spring from social philosophv, give rise to conflicting considerations that have to b& borne in mind. Nor does the process of valuation of the numerous factors remain static. While international movements in the cause of labour have for manv veors influenced thinking and sometimes even judicial thinking in such matters, in this country, the emergence of an independent democratic Tndia has influenced the matter even more profoundly".

A reference was mfde to the Standard Vacuum Refining Company case (196T-I-LLJ-227) and the learned Judge observed that (j) at the bottom of the wace-scales was the minimum basic wage and if an industry could aot afford to pay this basic wage, it has no right to exist, (ij) ahow thi? was the fair wacre which roughly approximates to th.e need-bii^d minimum, fiii) the need-based minimum is a waee adequate to cover the normal needs of the average emnloveo regarded as a human bein^ in a civilized society, and (iv) above the Mr wage is +he "living wngo" which was defined bv Phillip Snowden in "The Living Wage" as "a wag" which will maintan the workman in the highest state of industrial

efficiency, which will enable him to provide his family with all the material things which are needed for their health and physical well-being, enough to enable him to quality to discharge his duties as a citizen".

4.9. Indian Oxygen Ltd. and its workmen (1963-IT-LLJ-pat/e 83).

Certain matters including wage-scales of the workmen of Indian Oxygen Ltd. were referred to the Industrial Tribunal, Maharashtra. The Tribunal increased the wages and the employer took an appeal to Lhe Supreme Court. The appeal was dismissed.

The facts briefly were that, in 1949, the wage-scales of the workmen were fixed. In 1957, the workmen made demands for higher wages but these demands were rejected by the Tribunal. Their wage-scales com- pared favourably with the wage-scales prevailing in other engineering concerns. In 1962, the reference under special leave was made.

The Supreme Court held that a case for revision was obviously made out because conditions had changed between 1949 and 1962 and even between 1957 and 1962. It further held that although the Indian Oxygen Ltd. was the only company of its kind carrying on business in Bombay, it was not improper to make comparisons with the wage-scale3 obtaining in other engineering concerns. The comparison with Greaves Cotton & Co. Ltd., a managing agency concern, was not truly apposite; nor with the Imperial Tobacco Co. Ltd., nor with the Associated Cement Co. an the ground that it had no factory in Bombay but only its head office. The Court also held that Oil Refineries stood in a class by themselves. A comparison was made with concerns like Indian Cable Co. Ltd. and Auto- mobile Products. The Supreme Court further held that the Tribunal was right in giving a slightly higher scale in some cases to the workmen of Indian Oxygen Ltd. "apparently in view of the fact that appellant- company was alwHys a leading employer in the matter of wage-scales".

The importance of this decision lies in the fact that though there was no exactly comparable industry, a comparison of the Indian Oxygen L(d. with other engineering concerns was not unreasonable.

4.10. Greaves Cotton & Co. Ltd., and other and their workmen (1964- I-LLJ-page 342).

In this case, the Supreme Court, while dealing with 9 appeals by four campanies under a single control, dealt with the principles which should govern the fixing of wages, dearness allowance and gratuity. Th" dis- pute between the employers and their workmen had been referred to the Industrial Tribunal, Bombay.

The Supreme Court applied the principle of industry-cum-region basis, and observed that where there are numerous industrial concerns of the same kind in the same region, it will be proper to put greater emphasis on the industry aspect of the principle. But, where the number of comparable concerns is small in a particular region, and therefore, trie competition aspect is not of the same magnitude, the regional part of the

industry-cum-region formula assumes greater importance, particularly with reference to cleiical and subordinate staff.

With regard to the dearness allowance payable to the subordinate staff vis-a-vis the clerical stall, the Supreme Court observed as follows: "Time has now coin" when employees getting the same wages should get the same dearness allowance irrespective of whether they are working as clerks, or members of subordinate staff or factory-workmen. The pressure of high prices is the same on these various kinds of employees, further, subordinate staff and factory-workmen these days are as keen to educate their childien as clerical staff and in the circumstances there should be no difference in the amount of dearness allowance between employees of different kinds getting the same wages. Further an em- ployee, whether he is of one kind or another getting the same wage, hopes for the same amenities of life and there is no reason why he should not get them, simply because he is, tor example, a factory-workmen though he may be coming from the same class of people as a member of clerical staff."

In this case, there was no dispute about the ability of the employer to

pay.

4.11. Workmen of Balmer Lawire & Co. Ltd. and Balmer Lawire & Co. Ltd. (1964-I-LLJ-page 380).

This appeal before the Supreme Court arose out of an award made by the Industrial Tribunal, West Bengal, upon a dispute between Balmer Lawrie & Co. Ltd. and their workers. The items of dispute were:

(i) Grades and scales of pay, (ii) privilege leave, (iii) medical leave, and (iv) retiring age.

The Tribunal rejected all the demands but awarded a rise of Rs. 10 • per mensem on the minimum salary. In an appeal to the Supreme Court, the Supreme Court increased the retirement age from 55 to 58, and referred to two previous cases—Guest, Keen, Williams (Private) Lad. v. P. J. Sterling and others (1959-II-LLJ-405) and workmen of Jessop & Co. Ltd. v. Jessop & Co. and others (Civil Application No. 360 of 1961, decided on August 2, 1963). The decision of the Tribunal with regard to privilege leave and medical k-ave was upheld. The question of grades and scales of pay was referred back to the Trihunal for decision according to law.

The Tribunal had held that conditions had not altered since the wages were fixed on the previous occasion and so no increase was justified. In 1949, there had been made an award which was valid for three years. There was a revision- of pay and wages in 1952, and again in 1955. The Tribunal also took the view that since the dearnoss allowance was paid to the workmen under the Bengal Chamber of Commerce formula, no increase was justified. The Supreme Court held that there was no enquiry into whether the dearness allowance afforded complete neutralisation'to the employees against the rise in the cost of living. The Supreme Court further observed that the technicalities of res judtcata did not apply and "if the paying capacity of the employer increases or the cost of living shows an upward trend, or there arc other anomalies, mistakes or errors in the award fixing wage-structure, or there has been a rise in the wage- structure in comparable industries in the region, industrial employees

would be justified in making a claim for the re-examination of the wage- structure and the adjudicator would not normally be justified in rejecting it solely on the ground that enough time has not passed after the making of the award, or that material change in relevant circum- stances had not been proved".

With regard to a comparison with other industries, the Supreme Court observed: "This question is considered in the light of material facts and circumstances which are generally proved by documentary evidence. What is the total capital invested by the concern, what is the extent of its business, what is the order of the profits made by the concern, what are the dividends paid, how many employees are employed by the con- cern, what is its standing in the industry to which it belongs, these and other matters have to be examined by industrial adjudication in deter- mining the question as to whether one concern is comparable with an- other in the matter of fixing wages."

4.12. Gramophone Company Ltd. and its Workmen (1964-II-LLJ-paqe 131).

In this case, the Supreme Court dealt with two appeals which arose out of an award made by the Industrial Tribunal of Bombay upon a reference regarding a number of matters. One of the appeals was by the employers in which questions of gratuity and privilege leave were raised, and the other appeal was by the workmen in which a number of other points were also raised.

1

The Gramophone Company had its headquarters and factory at Dum Dum and a branch office at Bombay where about 72 workmen—both clerks and subordinate staff—were employed. The dispute was raised by the workmen at Bombay, and the Tribunal, inter alia, decided that the company had the financial capacity to sustain the introduction of a Gratuity Scheme. Before the Supreme Court, it was urged by the com- pany that the quantum of profits made by the company did not justify the payment of gratuity to its workmen. The Supreme Court considered the matter and repelled the company's contention that the amount to be pro- vided for taxation and for Development Rebate Reserve should be deducted from the gross profits before considering whether the profits were sufficient to sustain a Gratuity Scheme. Wanchoo, J. who delivered the judgment, observed: "We are of opinion that this is not the correct way of judging the financial capacity of an employer, assuming that the figures in the balance sheets are all accepted as they are. When an indus- trial tribunal is considering the question of wage-structure and gratuity which in our opinion stands more or less on the same footing as wage- structure, it has to look at the profits made without considering provi- sion for taxation in the shape of incntmo-tax and for reserves. The pro- vision for income-lax and for reserves must in our opinion take second place as compared to provision for wage-structure and gratuity, which stands on the same looting as provident fund which is also a retiral bene- fit. Payment towards provident fund and gratuity is an expense to be met by an employer like any other expense including wages and if the financial position shows that the burden of gratuity and provident fund can be met without undue strain on the financial position of the employer, that burden must be borne by the employer."

The judge further observed that a large portion of the burd"n would be compensated by the reduction in income-tax. The Tribunal had

awarded half-a-month's basic salary for each year subject to a maximum of 15 months' of service by way of gratuity.

• The judge also said: " t he grades fixed by the Tribunal are what may be called intermediate grades; they are lower than the highest and higher than the lowest, grades in the region."

The workers' appeal was dismissed by the Supreme Court as also the appeal of the employers.

4.13. All-India Reserve Bank Employees' Association and Another v. The Reserve Bank of India Another (1965-II-LLJ-page 175).

The latest pronouncement of Supreme Court is contained in the judg- ment delivered by Hidayatullah, J. in this case.

The Supreme Court was considering the question of the scales of pay and dearness allowance of the employees of the Reserve Bank of India. The Reserve Bank's position was that it did not wish to get seriously out of step with Government or the commercial banks. The Reserve Bank referred to the Pay Commission's Report and pomted out that the de- mands of the employees took no notice of the state of the Indian economy. The Association of the workers, on the other hand, based its claims on the norms set up by the Fifteenth Tripartite Labour Conference at Naini- tal where the need-based wage formula for Indian workers was evolved. The learned Judge after briefly tracing the history of the events which gave rise to the dispute before the Supreme Court, referred to the Report of the Fair Wages Committee and went on to say:

"The Report of that Committee has been cited over and over again. In the Standard Vacuum Refg. Co. v. Its Workmen this Coiiit elaborately analysed the concept of wages as stated by the Committee. The Committee divided wages into three "kinds—living wage, fair wage and minimum wage. Minimum wage, as the name itself implies, represents the level below which wage cannot be allowed to drop. It was universally re- cognised that a minimum' wage must be prescribed to prevent the evil of sweating and for the benefit of workmen who wero not in a position to bargain with their employers. This re- ceived immediate attention in India, though there was an In- ternational Convention as far back as 1928, and the demand for fixation of minimum wages extended to even the non- sweated industries. The result was the Minimum Wages Act of 1948. The Fair Wages Committee understood the term mini- mum wage as the lowest wage in the scale below which the efficiency of the worker was likely to be impaired. It was des- cribed as the "wage floor" allowing living at a standard con- sidered socially, medically and ethically to be the acceptable minimum. Fair wages by comparison were more generous and represented a wage which lay between the minimum wage and the living wage. The United Provinces Labour Enquiry Com- mittee classified the levels of living as (i) poverty level, (ii) minimum subsistence level, (iii) subsistence plus level, and (iv) comfort level. The concept of fair wages involves a rate sufficiently high to enable the worker to provide 'a stan- dard family with food, shelter, clothing, medical care and education of children appropriate to his status in life but not at a rate exceeding the wage earning capacity of the class of

establishment concerned'. A fair wage thus is related to a fair workload and the earning capacity. The living wage concept is one or more steps higher than fair wage. It is cus- tomary to quote Mr. Justice Biggins of Australia who denned it as one appropriate for 'the normal needs of average em- ployee, regarded as a human being living in a civilized com- munity'. He explained himself by saying that the living wage must provide not merely for absolute essentials such as food, shelter and clothing but for 'a condition of frugal comfort esti- mated by current human standards' including 'provision for evil days, etc., with due regard for the special skill of the workmen'. It has now been generally accepted that living wage means that every male earner should be able to provide for his family not only the essentials but a fair measure of frugal com- fort and an ability to provide for old age or evil days. Fair wage lies between the concept of minimum wage and the con- cept of living wage".

While considering the 3 consumption units formula, the National In- dustrial Tribunal, whose judgement was appealed against, had laid down 2-25 consumption units as just and adequate for calculating the minimum wage. On this point, the Supreme Court observed:

"In our judgment, the tribunal was not wrong in accepting 2-25 consumntion units. But it seems to us that if at the start the family is assumed to be 2-25, it is somewhat difficult to appre- ciate that the family would take 8 years to grow to 3 consump- tion units. We are aware that the Sastri tribunal thought of 3 consumption units at the tenth year and the Sen tribunal at the eighth year but we think these miss the realities of our national life. In our country it would not be wrong to assume that on an average 3 consumption units must be provided for by the end of five years' service. The consumption units in the first five years should be graduated. As things stand today, it is reasonable to think that 3 consumption units must be pro- vided for by the end of five years' service, if not earlier".

The Supreme Court also pointed out that the Reserve Bank was not a profit-making commercial undertaking and its surplus income is handed over to the Government and becomes national income. With regard to rise in prices, the Supreme Court observed:

"Unfortunately, we are constantly finding that basic wage, instead of moving to subsistence plus level, tends to sag to poverty level when there is a rise in prices. To overcome this ten- dency our wage-structure has for a long time been composed of two items, (a) the basic wage, and (b) a dearness allowance which is altered to neutralize, if not entirely, at least the greater part of the increased cost of living. This does not solve the problem of real wage. At the same time, we have to be- ware that too sharp an upward movement of basic wage is likely to affect the cost of production and lead to fall in our exports and to the raising of prices all round. There is a vicious circle which can be broken by increased production' and not by increasing wages. What we need is the introduc- tion of production bonus, increased fringe benefits, free medi- cal, educational and insurance facilities. As a counterpart to this, capital must also be prepared to forego a part of its return.

There is much to be said for considering the need-base formula in all its implications, for it is bound to be our first step to- wards living wage. As in many other matters relating to in- dustrial disputes the problem may, perhaps, be best tackled by agreement between capital and labour in an establishment where a beginning can be safely made in this direction",

(ii) Wage-structure at the Middle Level—between Rs. 650 and Rs. 1,500

per mensem.

5. I now come to the requirements of wage-earners whose monthly emoluments lie between the limits of Rs, 650 and Rs. 1,500. For them, it is not a case of struggling to exist or tackling the wage-price squeeze. They can provide themselves and their families with the bare necessities of life, they have no difficulty in obtaining the type of food which will meet their purely physical needs. But their lot, nevertheless, is by no means enviable. They have other needs and requirements which to them are as essential as the basic ingredients which provide the manual labourer with the irreducible minimum of calories and vitamins to main- tain his efficiency. The workmen of this middle-class are educated, they employ their brains to a much larger extent than their hands. They have to think and plan, to evolve a line of action instead of going through the movements of a dviil and following a set pattern, to find solutions to prob- lems as they arise instead of being furnished with ready-made answers; they have to make suggestions instead of always being told what to do. In the words of the poet, "they think by fits and starts. And when they think they fasten, Their hands upon their hearts". They belong to a higher social stratum, they are accustomed to a better, though by no means a soft, way of life. The recreation thev take is of a more com- plex, sophisticated and expensive variety. They have a desire to better the lot of their children. For them, their food, clothing, transport, school- fees, entertainment and recreation cost much more. Even more than the workmen of the first category, they wish to be secure, for their field of employment is more restricted, both because the number of available jobs is in inverse proportion to the quantum of remuneration attaching to them, and because the better paid jobs tend to become specialised. The rapid rise in prices has made their household budgeting an extremely difficult matter for they have to deprive themselves of almost every tyoe of luxury, though their upbringing, their position in society and tne hopes they entertain with respect to the future of their children entitle them to some amenities in addition to the absolute requirements of a purely physical existence. They, perhaps, have suffered most by the rapid rise in the cost of living. But, in their case too, there is need for caution. In one way or another, their total emoluments have been added to during the course of years. Their demand for an increase in wages and other benefits must be viewed in relation to the change in living con- ditions during the last three or four years, because the present scales and allowances were agreed to by the workmen of Air-India and were con- sidered adequate by them in 1960 or on subsequent dates when the various agreements were entered into. An increase must be justified by even more cogent and convincing evidence than in the case of the lower paid employees who live near the fringe of existence and a slight imbalance in whose razor-edge financial position is productive of deep 'damage. While therefore, no rule of thumb or well-defined guiding principle can be evolved for fixing the wage-structure of this class, we must examine their case with symnathv and circumspection, guarding ourselves alike against emotional vulnerability and an unconscious reluc- tance to give more to those who have.

(iii) Wage-structure at Upper levels

6 In the last class arc the better paid employees whose emoluments are in excess of Ru. 1,500 per mensem. There is at once an involuntary resistance against their demands for we who have committed ourselves to a socialistic pattern of life are inclined to look upon these individuals as people living in a state of affluence. Their case rests on their superior status, their better talents, the greater responsibility they assume and the more specialised contribution they make to the progress and produc- tivity of the industry they serve. Their importance is an admitted fact, for no one disputes that a highly skilled engineer and a competent pilot are of the greatest value and must, therefore, be paid high salaries com- mensurate with the importance of the duties they perform. But, if we assume that they were being paid adequately in say 1960, is there justi- fication for any increase in their emoluments merely because the cost of living has gone up? The money spent on the absolute necessities of life is only a small portion of their total wage packet. It cannot be said that they are affected more than to a small extent by increased prices during the last four years. They certainly cannot afford the more expensive luxuries nor can they put by a great deal of money for a time of emer- gency; but the sacrifice they have to make is not so great nor so distress- ing as the suffering of the lowest paid individuals who are compelled to face squalor or starvation by the rise of a few points in the cost of living index, nor do they live as near the brink of solvency as the workmen of the second class. Indeed, the Government has actually lowered the upper limit of the higher paid officials since 1947, though the cost of living has been steadily going up. Newly appointed Secretaries to the Govern- ment of India and Judges of the High Courts are paid Rs. 3,500 per mensem instead of Rs. 4,000 as formerly. The complaint is not that Rs. 3,500 is not a living wage but that persons of high calibre who are fit to be appointed to such high positions deserve a higher salary because of their special talents. If we are to assume that in the opinion of the chosen representa- tives of this country no one in the public services should be paid more than Rs. 3,500 per month whatever his skill, ability or talents, then, ft must follow that in considering the demands of the workmen whose emoluments fall in the higher category, there is little justification for an automatic rise consequent upon an increase in the prices of essential com- modities. Indeed, we must apply wholly different criteria from those which must be brought into play while fixing the wagerstructure at the lower levels where the cost of iiving is of much greater importance and significance. In their case, the capacity of the industry to pay must be given greater weight, and a resolute stand taken against any attempt to use what has come to be known, "pressure tactic/'. The danger of con- ceding an unreasonable or unjustifiable demand is that it weakens tHe giver and emboldens the receiver, making both of them disregard the perils of an economic nemesis. It has the same lamentable and irretriev- able consequences as result from submitting to blackmail. If in the difficult economic struggle through which we are passing, sacrifices have to be made, they must be made by all, whether they are government ser- vants, private employees or members of an establishment in a public sec- tor. At the same time, it must be remembered that a civil servant of the government enjoys certain rights and privileges which are not available to an industrial workman in the private or public sector. These benefits cannot be assessed in terms of money, but they are sufficiently attractive and rewarding to make government service a desirable vocation. In pri- vate industry high salaries are paid to competent persons because their .special skill increases productivity and profits and high wages do operate

as an incentive to better and harder work on the part of the worker. In considering the wage-structure of the workmen in this class, it is neces- sary to find a balance, a medium, which will take into account these opposing pulls.

(iv) Comparative study of wage-structure

7. A reference to the low productivity of labour has already been made. This circumstance was pointed out in the report on "Problems of Wage Policy in Asian Countries" placed before the International Labour Organisation in Tokyo. The figures given in the report show that the •per capita income in India in 1949 was only $ 57 per annum as compared with $ 100 in Japan, $ 773 in the United Kingdom, $ 849 in Switzerland and $ 1,453 in the United States of America. In the Asian countries, with the exception of Japan and Ceylon, the corresponding figure was $ 27 for China, $ 36 for Thailand, ' $ 36 for Burma, $• 25 for Indonesia and $ 44 for the Philippines. The report points out that since the incomes and living standards of the working population in India are limited by the amount of goods and services they can produce, the solution lies in expanding the volume of total national output as rapidly as possible.

" 7.1. Another important circumstance pointed out in the report is that the average earnings of agricultural wage-earners are lower than those of industrial wage-earners. The following comparative table,

Average Annual Earnings of Agricultural Workers In Seven States In

India, 1949

Agricultural workers

Factory Workers

State

Village

All

per family

Assam

Magupara

Lowest paid industry per earner

1 ndustrics

284'3 339-0

477-il

Bihar

Dorwan

95i 1

261 -6

946-2

444"4

Madhya Pradesh

Khapri

335.9

186-2

312-8'

8419

3^5-4

322.5

Vandalur Madras

Orissa

Khuntunl

726 6

373-8 165.5

i

T267-6M

152-1

527-0

151-7

L347-4* 1

I 1

f754-0' 1

Uttar Pradesh

Khalispur

993.0

280-4

4 488-3" I

652'S

L25I-6⁷ J

West Bengal

Brindabanpur

676 •! 3<54-5

839 •'

/464-6" \

164I-70/

j

printed at page 17 of the report shows that except in the States of Assam and Orissa, even the lowest paid industrial worker receives or earns much more than an agricultural worker. These two States were not highly industrialized in 1949 and the figures of to-day may well be more in conformity with those which obtain the remaining States. The disparity in the greatly industrialized States of Uftar Pradesh and West Bengal ia striking, the industrial worker earning on an average more than double of what his agricultural compatriot earns, The disparity makes a serious inflationary impact on the country's economy by pushing up the prices of consumer goods and thus starting a vicious circle of increased wages and high prices continually chasing each other at a rapid and accelerating pace.

7.2. The Labour Government of Great Britain has for some time now been considering this aspect of the wage policy. It must be remembered that the Labour Government represents, by and large, the working classes of Britain and is, therefore, more sympathetic to the needs and demands of workers than any other Government can be expected to be. The prob- lem of wage policy, however, is not an easy one even in the affluent state of Britain. I may draw attention to some observations made by John Morgan, a writer on economic questions, in an article published in the New Statesman of November 5, 1965. The writer was discussing the demand of the workers for an increase in wages and he observed:

"There would be nothing wrong with this year's increase in wages if it had been accompanied by a rise in productivity that was anything like comparable. Moreover the increases in wages have tended to be in response to market forces and have con- tained little of that element of social justice which advocates of income policy have always regarded as one of its most attractive features. Workers in the public sector remain the most malleable and vulnerable.

The main error was probably to raise expectations too high too quickly. It was all very fine to win the signatures of union leaders and employers to hopeful statements of intent. Unfor- tunately, at the shop floor level other forces were at work. The pound might be in danger, we might be pricing ourselves out of world markets. Meanwhile employers were fighting each other for labour. In engineering, or any industry needing skilled men, intricate, so-called incentive schemes are devised to keep men away from rivals. The incentive is not in the cause of productivity but in keeping the men. The chairman of vast companies will tell tales of bogus overtime awarded as a concealed wage increase. 'Wage drift' takes a thousand forms. Employers, senior trade union leaders tell me, have seldom been so ready to pay out."

7.3. The writer quoted from a comment of the U.S. Council of Economic Advisers:

"For all that, the government is faced with the immediate task of holding back the growth of incomes this winter. It cannot afford to let its policy fail. The alternative—allowing the mar- ket forces from play, as Tory pundits have it—woujd be a classic deflation. Unemployment would quickly become severe; the prospects for new productivity programmes would be thin in a general freeze-up. The government's prospects

would dim with the dimming hopes of t h at economic growth on which its social policies depend. Clearly something n ew has to be tried both to achieve a quick practical result and to reassert the psychology of the policy."

7.4. The opinion of this economic expert, therefore, clearly shows t h at the demand for increase in wages is not always justified on grounds of social justice, and in certain circumstances, the Government may feel the need of keeping down wages in the interests of general economy.

7.5. Again, the calculation of a need-based wage by Justice Higgins as well as by the Committee on Fair Wages has been made on the assump- tion that the average working class family consists of t h r ee adult u n i ts comprising the wage earner, his wife and two children. The earnings of the wife and children h a ve been excluded in drawing up t he family- budget. At the lowest level however, which means, during the early years of a worker in an industry where t h e re is a progressive wage in- crease by increments, it cannot be said t h at the family consists of four individuals. The fresh recruit may be u n m a r r i ed or he may have no more t h an one child in which case the consumption units of his family a re less t h an three. As t he years pass, t h e re are additions to his family and his earnings have also increased. Therefore, it does not seem to me t h at while considering the lowest wage of a worker in Air-India w h e re there is a progressive increse in all grades of salaries by means of incre- ments, we are justified in taking a family to consist of three consump- tion units at the very start of the workman's service. In the Reserve Bank of India case discussed above, the Supreme Court affirmed t he decision of the Industrial Tribunal to assess wages on the basis of 2'25 consumption units per family at the start. Moreover, in the family of an unskilled labourer, it is not uncommon to see t h at the wife and t he adolescent children earn additional income by doing casual work. Women take up part-time household work in towns such as sweeping rooms, cleaning utensils or acting as ayahs or baby-sitters while t he boys r un errands, do shoe-shine work, sell newspapers or help at a shop. To look at these facts is not to take up a callous or even an uncharitable attitude in order to find an excuse for refusing relief to the rjoorer classes or denying them the means of improving their standard of living; it is simply to accept the existence of facts which are matters of common knowledge, of a reality which is to be encountered not only in India but everywhere in the world. Indeed, in the more affluent coun- tries of the West, women and adolescent members of a worker's family relieve t he principal wage-earner's b u r d en to a very large extent. The earnings of teenagers alone in the western countries, were in 1957, com- puted at the high figure of £ 900 millions oer year, The Committee on Fair Wages considered this m a t t er in some detail and observed in paragraph 3 1:

"The Committee examined the figures given in Appendix III which were collected in the course of certain family budget enquiries made in the past. These figures showed that though the n u m b er of persons per family frequently exceeded the figures warranted by three consumption units, the total n u m b er of earners in the famjly was well above one. It was considered that if provision had to bo made for more than three con- sumption units, there was no reason why account should not also be taken of the actual n u m b er of wage earners in t he family."

7.6. In the case of Bombay, the relevant figures taken from Appendix III are as follows:

Earners

Number of persons

State

Children

Total

Adults

per family

Women

Men

Girls

Boys

2

5

6

1

4

7

3

BOMBAY

0 01

0-24

3-96

Bombay

I'28

1-53

Therefore, making allowance for the additional earnings of the family we arrived at the figure 1X3-96 divided by 1-53 = 2-6 as the effective consumer units which must be supported by the wage earners' individual earnings.

7.7. It is a matter of common knowledge that even the lowest paid industrial workers find the means of some elementary luxuries and enter- tainment, e.g., cigarettes, liquor or a weekly visit to the cinema. I say this not in a spirit of carping criticism or disapproval, for I am con- vinced that workers at the lower level need these reliefs and palliatives even more than their more fortunate and better paid colleagues, but I do wish to point out that the industrial workers are not suffering the pangs of hunger and deprivation to the extent they frequently proclaim. A low paid worker is perfectly justified in complaining that the rise in the cost of living has greatly added to the difficulties and problems of his existence; but when it is said on his behalf that he is living a life of utter misery and that he is in a perpetual state of penury and starvation, it is surely an overstatement of his case, and the pitiable pictures of the way he is obliged to live are belied by visual observation. There are millions of our countrymen whose earnings are less than those of an industrial worker, and in the present state of our economy, to push up the wages of the industrial workers must inevitably result in depressing the lot of others, particularly those who are engaged in agriculture, and that, in' view of the urgency and importance of agricultural production, would be calamitous, The lowest, wage of an unskilled labourer in Air- India was fixed at the figure of Rs. 123 (basic wage Rs. 50, dearness allowance Rs, 73) in May 1960, when the consumer price index (base June 1934—100) was 421. The consumer price index in July 1964, when the present reference was made, was 526 and on this basis, the lowest wage should be Rs, 153-6 per mensem. In fact, the lowest pay at pre- sent, after adding the interim relief given on January 1, 1964, is Rs. 138 and Rs. 162 after a year's service, on earning in addition, an ad hoc increment awarded by this" Tribunal on February 15, 1965.

7.8. I shall have occasion to examine this aspect of the matter in greater detail in Chapter VII, but let me here make a brief and rapid

comparison with the minimum wages prevailing in some of the industrial concerns in the public sector and also in Government offices. The un- skilled workers of the lowest grade in (.i) the Atomic Energy Establish- ment, Bombay, (ii) the Bombay Municipal Corporation, (iii) the Civil Aviation Department, Bombay, and (iv) the Posts and Telegraphs Work^ shop, Bombay, are paid only Rs. 120-50 or less per mensem, inclusive of all allowances. The employees of the Maharashtra Government at Bombay are paid Rs. 102 per mensem and the corresponding employees of the Central Secretariat, Delhi, are paid Rs. 120-50 per mensem.

7.9. How can these differences be explained or reconciled? If the need- based wage represents the absolute minimum required to feed, house and clothe an average working class family, and if any lowering of the wage below this minimum gives rise to a yawning gap which draws the worker and his family into the abyss of starvation, penury and misery, why does the Government knowingly commit its servants to such a wretched state? Surely, the same Government which negotiates the payment of a need- based wage to factory workers in the private sector and in some of the public corporations, cannot, in justice, equity and humanity, deny that very minimum to its own servants. Yet, this state of affairs exists. Is the lot of these unfortunate Government servants as miserable as the calculations of Dr. Aykroyd and Dr. Patwardhan would lead us to believe, or is there some error, fallacy or miscalculation in the argument? Have the needs of an unskilled labourer been exaggerated or do hundreds of thousands of Government servants have a standard of living which the Government believes and declares to be below any that even our poor economy should morally permit? Surely, Government servants of the lowest grade, e.g., sweepers, gardeners, chowkidars, night watchmen etc. can boast of no compensating factor of power, dignity and prestige as are enjoyed by the highest officers of the Government who make and imple- ment policies, who exercise patronage and have their hands on the con- trols of power and who therefore, are willing to work at salaries far below those which they could demand for hiring their brains to industries in the private sector. To me, there seems not the slightest reason why Government servants should be paid less than their counterparts in pri- vate offices and industry. If, and let me repeat, if the need-based wage represents the minimum to which a self-respecting worker is entitled so that he may maintain his health and efficiency, is not what is good for the private goose also good for the Government gander? On the other hand, if the Government servants are paid an adequate wage, then the industrial workers, more particularly in the private concerns, are being paid at a rate not justified by the country's economy and by the low level of our national income. No one has ever suggested that the basic needs of fac- tory workers in the private sector are in any way different from or greater than the needs of Government servants in corresponding cate- gories. The conclusion, therefore, is irresistible that the minimum wages which are being paid to the unskilled workers of the lowest grade in many industries in the private sector are extremely generous and approximate to a living rather than to a minimum wage.

7.10. I have so far considered the question of a fair wage for the lowest paid worker from the viewpoint of his basic elementary needs. In a profit-making industry, there may be justification for giving to all work- ers a share of the profits, so that they may feel that they have a stake in the undertaking and have the expectation of a.special reward for contri- buting to increased productivity. It is in the fitness of things that the workers of all grades and classes should have a feeling of "belonging",, of

having an incentive to make greater effort, for more work will mean more production and more profits and an addition to their earnings. This kind of increase in wages, however, constitutes a sharing of profits—a per- fectly legitimate aim—and cannot be treated as the satisfaction of a demand arising out of the basic physical needs of the worker and his family. Profit sharing usually takes the form of bonus and it should not be confused with an increase in wages necessitated solely by a rise in the prices of essential commodities. In their Statement of Claims, the work- ers have demanded a share in the increasing prosperity of the Corpora- tion, and made the quantum of profits earned by the Corporation a ground for claiming higher wages. But, the two matters (i) the demand for higher wages because the present wages are insufficient and (ii) the demand for an increase in wages because the Corporation is earning large profits, must be kept separate and not confused, even though both the demands may be fully justified. Once it is conceded that an industry has no right to exist if it cannot pay its workmen the minimum wage, then the argument of high profits cannot be invoked to demand a minimum wage, for even a non-profit making industry is obliged to pay this minimum. The question of profits becomes relevant when fixing a fair wage above the minimum wage, for then- the "capacity" factor comes into play. If, however, the workers are already being paid a fair wage, then increas- ed profits may be shared in the form of a bonus but not in the form of an increase in wages. To increase wages because of increased profits will open wide the door to economic imbalance, a sense of envy and frustration among workers (doing similar work) in less fortunate undertakings and the evils adumbrated by John Morgan.

(v) Conclusion

8. Summing up the conclusions to be drawn from the above discussion of the various committee reports and Supreme Court judgments, the following general principles may be deduced and borne in mind when endeavouring to formulate a just and reasonable wage-structure for industrial workers of the different grades:

(i) at the lower salary scales the workmen should be paid a fair wage as denned in the Report of the Committee on Fair Wages, due regard being paid to the cost of living as manifested in the consumer price index prevailing at the relevant time. The basis of three consumer units per family cannot, however, be accept- ed as an absolute, invariable hypothesis;

(ii) the capacity of the industry to bear the additional burden if the wage scales are to be raised must be borne in mind if the worker is getting a wage above the poverty level;

(iii) in assessing the capacity of the industry to pay, not only its actual financial state but also its compulsive necessity to pro- gress and expand in the future, must be taken into consideration; (iv) an important rule in the fixation of wage-structure is the indus- try-cum-region basis as being conducive to uniformity and contentment by ensuring the principle of equal wages for equal and similar work;

(v) where an industry has few or no rivals and an industry-wise comparison cannot be made, the regional factor assumes greater importance;

(vi) if there are any special features peculiar to the industry under consideration, e.g., hazards or benefits-not obtaining in other

industries however similar or comparable, due weight must be given to these features; and

(vii) the commercial undertakings in the public sector must be treated on the same basis as private undertakings; no special concession or advantage to the detriment of the worker being allowed merely by reason of the fact that an industry is financed wholly or in part by the Government.

8.1. I shall conclude this chapter by drawing attention to some special considerations which operate in the case of the employees of Air-India and which, therefore, must be kept in view in fixing their wage-structure at the different levels.

3.2. Article 38 of the Constitution directs the promotion of welfare of the people by securing and protecting as effectively as it may a social order in which justice, social, economic and political, shall inform all the institutions of the national life. Article 39(a) draws attention to the right of citizens to an adequate means of livelihood and 39(b) directs that ownership and control of the material resources of the community are so distributed as best to subserve the common good. Article 43 aims at providing a living wage to all workers.

8.3. Article 39(b) has special significance when the case of public corporations and more especially of Air-India is considered. Air-India is a commercial profit-making enterprise controlled and managed by an autonomous Corporation. Its capital is provided entirely by Government It provides transport to its nationals and to foreigners. It makes profits which form part of public revenues and it earns foreign exchange which is very necessary for the development of the country.

8.4. The profits do not go to fill private coffers or to increase the wealth of already rich industrialists. Air-India forms part of the national effort to increase the country's material resources and raise its international status and prestige. The narrative set out in Chapter III describes the contribution made by Air-India in the past and its future rjlans. If the profits arc largo and tend to increase, they will eventually add to the national revenues and improve the state of our foreign exchange reserves. Indeed, there is a compelling necessity to husband present resources, in- crease profits and expand the field of operations, for to stand still in the air transport business is to regress and be left behind. Even to keep in the same place, the Corporation must, in the words of Lewis Carroll's Queen do all the running it can and to make any progress it must run at least twice as fast. Making more profits by the Corporation means earning more foreign exchange, and if these profits are ploughed back to earn larger profits in future, the Corporation will be making an invaluable contribution to the country's plans for economic progress. There is no- thing shameful or degrading in an employee of Air-India drawing a smaller salary than the employee of a foreign airline belonging to a country where the measure of affluence not only permits but demands a higher salary. The case of the employees of the Reserve Bank of India is, to a large extent, similar to the case of the workmen of Air-India. But since the air transport industry is intensely competitive, those employees who come into contact with their corresponding members in other air- lines, e.g. flight crew and the personnel stationed abroad, can be compen- sated by means of special and extraordinary allowances in the same way as our diplomats serving or posted abroad are paid special allowances. Government servants are, on the whole, content to work for smaller wages

than those which obtain in commercial establishments. The case of Air- India which is a profit-earning undertaking in the public sector, is not on all fours with the case of Government servants but it does bear some analogy to it in as much as the profits are not being made by a private undertaking and there is an obligation on everyone working in the Corporation to make a contribution towards the national effort.

8.5. Air-India and Indian Airlines Corporation, have, between them, a monopoly of the air transport business in India and no comparison with other concerns doing the same sort of business is possible. Ita wage-structure, especially in so far as it relates to technical personnel, must be considered and assessed in isolation. There is no doubt that Air-India competes with foreign international airlines, but this competi- tion while it compels a high degree of efficiency and conditions its plans for expansion, does not reflect on the wage structure because living conditions in other countries are vastly different and in no way com- parable. The wages of the employees of Air-India have to be deter- mined in relation to and against the background of Indian economic- conditions and the rates of pay obtaining in the case of workmen belonging to the same or similar (as far as similarity is possible) status, and grade. For instance, a peon, a watchman or a kitchen-boy of Air- India, falling in the class of unskilled workers, cannot be equated with, a peon or watchman or kitchen-boy in the employment of Pan American Airways or British Overseas Airways Corporation, but his wages can be- compared with the wages paid to peons, watchmen or kitchen-boys by public or private concerns in India. Even a pilot or a flight engineer based in India needs less than his counterpart in Britain or America to maintain the same degree of efficiency in his work and the same standard of living. Pilots, flight engineers and flight navigators arc not be found in any other industry. The aircraft maintenance engineers perform tasks which no other engineers in the country are called upon to undertake. Therefore, these workmen cannot be compared with any- workmen in other industries or concerns. Certain guiding lines indicat- ed by their educational qualifications, their innate talents, their training, their acquired skill amd their usefulness to the Corporation, may be observable, but for the most part, the pay of the majority of skilled workers will have to be determined on considerations peculiar to service conditions under the Corporation. This is true, in a greater degree, of the higher and more skilled technical workers and has little or no rele- vance to the unskilled and semi-skilled workmen at the lower scales, cf pay.

8.6. The present position is that the lowest paid unskilled worker .;n Air-India gets a minimum salary of iR's. 138 per mensem (Rs, 162 after ono year's service), rising by progressively increasing annual increments of Rs. 3, Rs. 4 and Rs, 5 to the figure of Rs. 216 per mensem after eleven years of service. This compares, no doubt, unfavourably with what obtains in many industrial concerns, more particularly in the private sector, but it connotes a measure of ease and affluence when compared with the lot of the lowest paid workers in several Government under- takings, e.g. the Atomic Energy Establishment, etc. to which I have already referred, for in these concerns, the corresponding salary is, as already stated, not more than Rs. 12050 per mensem, while workmen doing similar work in the Maharashtra Government Secretariat, draw no more than Rs, 102 per mensem as minimum total emoluments.

8.7. With regard to the higher paid workmen in Air-India, the senior captains at the maximum grade' now (under the latest agreement oi July 26, 1965) draw a total salary of Rs. 4,400 per mensem inclusive of all allowances, the captains draw Rs. 3,217 per mensem. The salary of a High Court Judge is now Rs. 3,500 per mensem and that of a Supreme Court Judge, Rs. 4,000 per mensem, a Secretary to the Central Government draws, if he is a member of the Indian Civil Service and therefore protected by the provision of Article 314 of the Cons- titution, Rs. 4,000 per mensem and in other cases, Rs. 3,500 per mensem. In the United Kingdom, the salaries of High Court Judges and Permanent Secretaries to Government have besn considerably increas- ed in recent years, from i 4,000 to t 8,000 in the case of Judges and from £ 3,000 to t 8,000 in the case of Permanent Secretaries to the Government. In India, the Government, in its wisdom, has actually reduced the higher salaries because of our economic conditions and the low level of our national income. In the circumstances, would the Government be justified, and would it be entitled to take the credit for consistent thinking and consistent acting if it permitted or gave count- enance to maintaining a higher level of salaries in its commercial under- takings or in public corporations which are financed by it? If the beat brains in Government establishments cannot be paid more than Rs. 3,500 per mensem because the country cannot afford to do so, does not the argument apply with equal force to the best workmen in a public cor- poration subject to the same economic conditions, financed by the same tax-payers who provide the funds out of which Judges and Secretaries are paid, and responsible for their efficiency and integrity to the same authority ? To me, it seems not only financially unsound and un- reasonable, but utterly inconsistent to make those invidious distinctions on the ground of economics, whatever other reasons, sound or unsound, may exist for making the discrimination. It has already been men- tioned in Chapter III that the additional burden thrown on the finances of the Corporation by the agreement of July 26, 1965, with the Indian Pilots' Guild, amounts to Rs. 14,84,000 per annum. An additional burden has also been assumed under the agreement dated October 15, 1965, with the All-India Aircraft Engineers' Association and this burden has been calculated at Rs. 6,09,800 per annum. These agreements, however, have stimulated demands for better emoluments for other workmen, and the argument that no invidious distinctions should be made when distributing largess is unanswerable. So, it would be unjust to deny similar increases in salary to those workmen whose negotiating acumen has not brought success to them.

CHAPTER VI

(i) Jet Hazards,

(ii) Workload of Flight Navigators in jet Aircraft

Before dealing with the individual matters set out in the Schedule to the Order of Reference and the various demands of the unions relat- ing to these matters, it is necessary to dispose of two issues of general interest.

(i) The special hazards which are alleged to be a consequence of the introduction and operation of jet aircraft by the Corporation, and the dangers, hardships and difficulties complained of by the workmen of the Corporation and which must be compensated for by the payment of additional allowances.

(ii) An assessment of the additional workload and responsibility claimed to have been undertaken by flight navigators in jet aircraft, by reason of the fact that in a fast moving plane less time is available for performing the same amount of work than in a slow moving plane, and this telescoping of the time factor demands greater competence, more intense concentration, quicker thinking and prompter decisions. Related to this matter is the question of the comparative importance and status of flight engineers and flight navigators in the aircrat crew. A claim ha3 been made on behalf of the Indian Flight Navigators¹ guild (Party No. 6) that the greater importance of a navigator's work in a jet aircraft entitles him to higher status and, therefore, greater remuneration than a flight engineer.

2. These two matters are, to a large extent, concerned with Item No. 11-—Jet/Hazard Allowance for ground staff and Item No. 15—Jet Allowance (cabin attendants and flight crew), but I have chosen to discuss th/?m first because they have a special significance in view of the fact that the Corporation now operates only jet aircraft, and also because they are of wider importance than the demands defined by the nomen- clature of the two items.

(i) Jet Hazards

3. The contention of the workers briefly is that:

(a) Jet propelled aircraft travels at a very fast speed, and rapid travel not only demands greater concentration of work neces- sitating more attention, more rapid performance of routine chores and duties but also imposes physical, psychological and emotional strains by upsetting the day-night and rest-work cycles consequent upon quick changes in clock timings. In travelling west, there is a feeling that time has stood still or is passing very slowly, while in travelling east a sense of time being lost disturbs the mental equilibrium.

(b) The noise of a Jet engine has a damaging effect on both the body and the mind. High altitudes at which the jet aircraft flies expose the crew to the dangers of radioactive particles, wnile the ground staff who come into contact with the plane after its flight while cleaning or refuelling it, run the risk of contamination by radioactive dust. The exhaust fumes of a jet engine are particularly deleterious to health for the fuel used harbours its own dangers and contains irritants which injure the skin. And also there is a possibility of a worker being seriously injured by being sucked into the engine. Lastly the paints used on jet aircraft discharge noxious fumes.

(c) The introduction of jet aircraft has increased the traffic handled by the Corporation and gradually augmented its profits. The workmen are entitled to claim a share in the pro- gress and the prosperity of the undertaking.

4. I may quote a passage from paragraph 80 of the written statement filed by Party No. 3:

"The employees who work on jets have to face certain hazards. The jet aircraft when it reaches high altitude all its exposed parts get covered with radioactive dust. All the mechanics,

cleaners, leading hands, charge hands and examiners when they come in contact with those parts while the plane is on the ground get into contact with the radioactive dust which is injurious to health. The sound of the engine is so great that it affects ear drums and brain of the workmen who work on the plane. These workmen often get pain on the back of the head and neck. The exhaust dust which is discharged from the plane is also injurious to health. Particularly when the plane is reversed the exhaust dust from the engine is thrown forward and those who have to be very near have to inhale the fumes. The fluids used in the jet like *hydralic etc. are also injurious to health. Even if a drop of such fluid falls on the skin, the skin irritates. In order to mitigate this hardship, the employees are provided with the gloves and ointment. 'The workmen have also to go into fuel tank very often for repair work. The fumes of the paraffin are always there in the tank which also affect the health of the persons when they come in contact with those fumes. Normally,, after the draining out of the paraffin, the: tank should be kept empty for at least 48 hours in order to rid it of the fumes completely. Since the plane cannot be made to wait for such a long time em- ployees heve to complete the repair in a short time after the tank is emptied. The paints which are used on the jet also discharge certain fumes while spray painting work is in pro- gress, with the result that the workmen who are carrying out other jobs have to come in contact -with the fumes which is discharged from the paint."

There is also a complaint that employees have to lift heavy equipment weighing more than 120 lbs. and those workmen who handle this equip- ment suffer from slipped discs. The workers who have to use step lad- ders of which the rungs are made from pipes suffer injuries because they have to support the whole of their weight on the middle portion of the foot.

5. On behalf of the All-India Aircraft Engineers¹ Association, it is alleged (paragraph 23 of the written statement filed by Party No. 5) that:

"The vibrations and noise of aircraft, part of which is ultrasonic has effected serious long lasting deterioration of the central nervous system, besides effecting a lasting loss of hearing, nausea, insomnia and a general deterioration in health. The servicing of Jet equipment has brought with it new hazards and the general deterioration of Aircraft Engineers health is the evident result of these. Besides the obvious hazards, the slow effects of constant high noise, vibration, etc., are now becoming clear to us."

6. These contentions are repelled by the Corporation and in para- graph 52 of their written statement it is said:

"The Management submit that all operations in which ground staff are involved, are equally hazardous or equally non- hazardous and it cannot be said that the hazard/danger, if any, can be eMminated by the payment of an allowance though

the element of hazard, if any, is adequately taken care of by the wage structure, provision of required safeguards and the application of safety procedures, which raduce the element of hazard involved, if any, to the minimum."

In paragraph 137 of its replication, the Corporation stated:

"It is common knowledge that the entire fleet of the Corporation consists of Jet aircraft and all the employees of the Corpo- ration are involved, directly or indirectly, in the operation of such aircraft. As in evolving wage structure of the employees of the Corporation all the relevant factors, including job re- quirements, hazards involved in operation and/or dealing with hazardous equipments/situations have been taken into account, there is no case to pay any special allowance separately such as Jet Allowance as demanded."

Tn paragraph 143 of their replication, the Corporation stated that:

"Adequate safetv measures have been taken in this regard and the necessary safety equipment and clothing are provided to mini- mise the element of occupational hazard, if any."

This paragraph also contains an assurance that:

"The Corporation is fully alive to the problem of safety require- ments and has taken appropriate steps for a review of the safety measures from time to time."

In paragraph 145,

"The Corporation emphatically denies that the hazards imposed on personnel engaged in jet aircraft operations and maintenance have resulted in serious, long lasting deterioration of the cen- tral nervous system besides causing a lasting loss of hearing, nausea, insomnia and a general deterioration in health."

The Corporation also points out that the demand on this ground was dropped by Party No. 2 in 1960 when an award in terms of the agreement arrived at with them was made. The demand was also dropped by Party "No. 5 in the agreement with the Corporation reached on October 15, 1965. The pilots did not make this demand at any stage.

7. It must be clearly understood that this demand is not based on the greater competence or skill required to man a jet aircraft, but arises out of some special dangers which are alleged to be occasioned by the oper- ation of jet aircraft. Jet allowance is being paid to pilots but this has no reference to the special hazard allowance which is being claimed under Item No. 11.

8. With regard to jet allowance demanded by cabin attendants and other crew under Item No. 15, this is based on wholly different consider- ations, viz., the mental and physical disturbances caused by rapid changes of atmosphere and environment and not because of any special danger involved in jet travel.

9. The only evidence produced by the Unions in support of their de- mand consists of an extract from an article bv Dr. Kempton Hare of the Medical Department of B.O.A.C. published in the Medical Press of Decem- ber 14, 1960 (Vol. CCXLIV No. 6345). This is Exhibit U-II/40. In this

article the author draws attention to some occupational hazards of" the airline industry. There are one or two references to the special hazards of jet aircraft and only these are relevant for our purposes, I give below the specific passages upon which reliance was placed by the learned counsel for the workmen:

"Kerosene: W'th the introduction of jet and turbojet aircraft gaso- lene has been largely replaced by Aviation kerosene, conse- quent on which attention has been focussed on the dermatitic hazard which may and does arise due to the handling of this compound. Contamination may be acute or chronic.

Acute contamination may occur in the course of the refuelling of aircraft, or by sudden spillage from the fuel tanks. In the event of a person's clothing becoming soaked in kerosene, facilities should be provided for immediate bathing or showering and replacement of contaminated, clothing by clean dry kit. In- structions should be issued to ensure thorough washing off of the affected area and adequate soap and towels supplied.

Chronic contamination may result In a kerosene dermatitis, and is frequently due to careless handling which, once developed, is likely to flare up again on renewed contact as a result of a cumulative sensitivity. This may necessitate permanent re- moval from that specific task.

The use of surplus aviation kerosene for cleansing purpose is de- precated as there is strong evidence to suggest that it is poten- tially more dermatitic than paraffin.

Noise: As the numbers of jet and turbojet airliners in operational use increase, aircraft noise becomes an increasing problem. Sound pressure levels up to 120 decibels may be experienced which, apart from producing impairment of hearing, cause seri- ous interference with communications, changes in individual behaviour, prolonged physiological effects, and an increased accident rate amongst employees,

An overall sound level greater than 85 db S.P.L. must be considered hazardous (Rosenblith Criteria) and necessitates the adoption of a hearing conservation programme. This entails an initial audiometric check coupled with a complete ear, nose and throat examination, noise exposure history and past history of ear trouble.

Audiometric rechecks should be carried out at periodic intervals in order to detect any early hearing loss and to enable preventive measures to be adopted. In view of the audiograms particular attention is devoted to the "Traumatic dip" or 'notch' which occurs round about 4,000 c/s and may well be the first sign of early acoustic trauma.

Engine noise is screened as far as practically possible by construc- tion of blast walls and the use of engine mufflers. Employees are? provided with ear defenders of the 'insert' or ear muff type, which will produce a noise attenuation of between 15—40 db depending on the type used and the noise frequency band ex- perienced.

Radio activity: There is at present no evidence that contamination of high flying jet aircraft by radioactive fall-out is such as to present a significant hazard to ground personnel servicing the aircraft, provided they observe the ordinary rules of personal hygiene.

Periodic checks for radioactive contamination are now being carried out by the major world operators in order that any Increase in contamination may be detected early, and prompt precaution- ary measures adopted, should it be proved necessary. These would entail regular washing of aircraft, safe disposal of waste, and close medical supervision of ground personnel."

Another matter dealt with by the writer of this article is the incidence of radar. He says that no cases of cataract have been reported due to exposure to radar beams.

10. On behalf of Party No. 2, another document U-II/39 was produced but this is merely, a note prepared by someone on behalf of the Union and cannot be treated as a piece of evidence. It is probably based upon the article of Dr. Kempton Hare (U-II/40).

11. It will thus be seen that there is no evidence whatsoever of any radioactive hazard due to high altitude flying in jets. The danger arising frorn the handling of aviation kerosene can be avoided by exercising care and the.usual precautions which, according to the Corporation, are al- ready being observed. The only other inconvenience or hazard mentioned by Dr. Kempton Hare is one arising from the excessive noise of jet en- gines. This hazard too can be avoided by observing the precautions men- tioned by him. Since all aircraft operated by the Corporation are jet- propeUed, there is no special case made out for compensating jet hazards because attendance upon jet aircraft is the normal contractual and in- dispensable feature of service in the Corporation. In so far as service conditions in the Corporation differ from conditions in other industrial concerns because of the incidence of jet aircraft, compensation in this respect will have to be made when fixing the overall salary scales of workmen of the various grades. For instance, Aircraft Maintenance En- gineers may be given an extra allowance, or their salary scales raised, not because they have to attend on jets but because the nature of the duties allotted to them involves a type of work which justifies the pay- ment of higher wages than are paid to engineers in, say, the textile in- dustry or the motor industry. The case of the flight crew is, however, different. They may be entitled to a special jet allowance not becaus3 of any dangers regarding which, as I have pointed out, there is no grievance whatever but because of the more concentrated work and greater atten- tion which is required of them during flight periods. This matter will be considered when I come to discuss Item No. 15. At this stage, it is suffi- cient to observe that there is no justification for giving a special jet allowance to any workman who handles or attends to a jet aircraft. If jet aircraft were to form only a portion of the fleet, operated by the Cor- poration, it might have been possible to argue that there should be a jet allowance on account of the extra work involved or the hazards suffered by those persons who exclusively attend to such aircraft on the ground. But since the Corporation operates only jet aircraft, no such distinction can be made and no case whatsoever has been made for a special allowance in order to compensate the alleged jet hazards. Even Party No. 5 who had made this demand with great vehemence dropped it at the time of

entering into an agreement with the Corporation. I do not feel called upon to say that the necessary precautions are not being taken by the Corporation in order to avoid possible injuries to its workmen from the various causes mentioned in Dr. Kempton Hare's article and I, there- fore, do not consider it necessary to make any observations for the future guidance of the Corporation in this respect. I have no doubt that the Corporation will, in accordance with the available scientific knowledge, take steps to safeguard the health of its workmen,

(ii) Workload of Flight Navigators in Jet Aircraft.

12. The case for the Indian Flight Navigators' Guild is that with the introduction of jets, the importance of flight navigators has increased because a faster speed has imposed a heavier and intenser burden of work upon navigators who are responsible for keeping the pilot informed of the exact position of the aircraft and of advising him upon the route to be followed. On the other hand, it is contended on behalf of the Cor- poration that the faster speed has not increased the workload of the navi- gators, and with the advance in science and with the invention of more and better navigation aids both in the aircraft and on the ground, the navigators are gradually becoming redundant and some of the airlines have been dispensed with their services. The flight engineers have joined issue with the navigators and it was contended on their behalf that they (flight engineers) perform more important and more essential functions during the flight of a jet aircraft than are undertaken by the flight navi- gators. In this tripartite argument, therefore, the Corporation and the flight engineers (Party No. 7) are ranged on one side and the navigators on the other. Both parties have produced oral as well documentary evi- dence in support of their respective claims. I shall first consider the oral evidence which consists of the statements made by Mr. L. B. Bhatia, Presi- dent of the Indian Flight Navigators' Guild on behalf of Party No. 6 and of Captain S. C. Maulik, Chief Pilot of Air-India on behalf of the Corporation. Each of these witnesses put in written affidavits and was later examined orally. Both were also cross-examined by the other party in turn.

13. Mr. Bhatia has considerable flying experience on Boeings. He stated that he has 10,000 hours of flying experience and is, therefore, able to speak of this matter from personal knowledge. The burden of his statement is that the flight navigator's functions on a jet aircraft are ex- tremely important. He is a highly responsible officer. He has to report at the pirport an hour and 15 minutes before the scheduled time of de- parture. He makes the flight plan or checks it if it has a^eady been made by the Flight Despatch Section at the airport. He supplies the meteoro- logical forecast to the commander and, in flight, he navigates the aircraft according to the flight plan or according to a revised plan prepared by him in compliance with instructions received from the ground controllers. This last is the more difficult task because the aircraft may be displaced by as much as 50 miles off its intended track in the space of a few minutes. He has to "fix" his position every half hour, and since wind and temperature conditions vary with altitude, he has to take these factors into consider- ation when advising the commander on the track to be followed. On certain routes, there are several aircraft flying at the same time, and last minute changes may be necessitated by this overcrowding. In Air- India particularly, his functions are more important because Air-India has not so far installed some of the navigation equipment which other airlines have. This equipment consists of the Doppler or the Inertial

Navigator. Mr. Bhatia further says in his affidavit that a diversion on the New York route is sometimes necessary because the Kennedy Airport becomes fog-bound or snow-bound.

14. During his oral examination, Mr. Bhatia had to modify this con- tention to some extent. He admitted that there are three or four lines who no longer carry navigators as part of the flight crew, In the navi- gator's place, a third pilot who has received navigational training is ap- pointed. He admitted that flight plans are nearly always prepared by the Flight Despatch Section at the airport and the navigator's job is merely to check this plan, and although in the past the navigator was re- quired to make a flight plan, this is not a normal feature of his service now. The commander also checks the plan and, therefore, the navigator is not doing any more than the commander so far as the checking of the plan is concerned. He admitted that on the domestic flights, a navigator did not form part of the flight crew. When questioned about the Doppler, he admitted that this instrument gives the continuous drift and the ground speed, but it was only a supplementary aid and could not take the place of the navigator. The Doppler does make the navigator's work easier but it does not make him redundant. In the United States, flight navi- gators are not employed on domestic flights although these flights may be on routes 3,000 or 4,000 miles long. Under rules framed by the Director- General, Civil Aviation, who is responsible for the safety and security of aircraft and its passengers, an aircraft can be flown without a navigator. The witness was questioned about the Middle East—London route and he stated that the navigation work on this route was done by the navigator. He admitted, however, that for about a quarter or half of the sector, there was no work for the navigator, and ground aids lessened his workload.

15. With regard to the preparation of flight plan, he admitted that dur- ing the last two years he had had no occasion to prepare a flight plan himself. The Doppler is normally fixed on the pilot's panel and, there- fore, it is the commander who receives information from it and operates it. The T.W.A. and Alitalia do not carry navigators and the B.O.A.C. is gradually dispensing with the services of their navigators and paying them off.

16. With regard to the preparation of new flight p ^ n, owing to last minute changes, the witness stated that the flight commander himself did this on the domestic routes, but he went on to say that Madras and Karachi could not be compared with New York as the greater familiarity of the pilots operating on internal routes with local geographical features onpblpd thorn to adjust their track if any change became nsccssary. On the Beirut-London route, no navigator was necessary because there were nmplr (ground aids which were used to "fix" the position of the aircraft. He admitted that when the navigators struck work on May 1, 1964, the Director-General, Civil Aviation, gave permission to Air-India to operate their flights without navigators. Mr. Bhatia suggested that the crash of the Alitalia aircraft near Bombay on July 6, 1962, could have been avoided had there been a navigator on board. But, a reference to the report shows that this inference cannot be drawn. At the time of the crash, the com- mander was in complete control and at that final stags he would not, normally, havo called upon the assistance of the navigator had there been one among tine crew. There were two other reasons, viz., the infringe- ment of the prescribed minimum while approaching the airport and the unfamiliarity of the pilot with the terrain of the route. Since in all air- craft it is tiie pilot who takes complete control at the last stage when

landing, it cannot be said that the navigator could have rendered any assistance to the Alitalia commander at that particular juncture. The findings of the Court of Enquiry do not support the contention of Mr. Bhatia.

17. Captain Maulik in his affidavit stated that the flight plan is always prepared by the Flight Despatch Section of Air-India and all other airlines for each flight, and in 99 per cent, of the cases, flights are operated accord- ing to the flight plans which are ready and previously prepared by the Flight Despatch Section at the airport. Indeed, when the navigator and the commander arrive at the airport, the brief-case of each officer, con- taining all necessary papers, is ready, and all that these officers (com- mander and navigator) have to do is to check the documents. The com- mander then flies the aircraft according to this plan. On internal routes. Captain Maulik says, the navigator has been completely dispensed with. On European routes, ground aids are provided and they have reduced the functions of navigators to practically nothing. Most American airlines and European operators have dispensed with navigators. In a jet plane drift angles are reduced, and navigators are now only helpful on long ocean or desert routes.

18. With regard to Kennedy Airport at New York becoming fog/or snow-bound, Captain Maulik said that alternative landing airports have already been prescribed and there is never any occasion or necessity for the navigator to prepare a last minute alternative flight plan in a rush. In his oral examination, Captain Maulik, who is the Chief Pilot of Air- India and a person of considerable experience, stated that he had flown the London-New York route for a period of 2J years. He had never had occasion to make a diversion. He had some experience of Dopplers which, according to him, are fixed on the pilot's panel. He said it is the pilot who uses this instrument, and this makes the work of the navigator redundant. He further stated that on all European routes which do not involve an ocean crossing of more than 600 miles, navigators were now not necessary.

19. With regard to the Air-India routes, he stated that for Cairo- Bombav. Delhi-Moscow, Delhi-Beirut, Beirut-London, Bombay-Hong Kong, and Singapore-Jakarta, no navigator was necessary. When questioned about the Alitalia crash, he said that there was no suggestion in the re- port of the Court of Enquiry that the accident might not have occurred, had there been a navigator on board. He said:

"This accident occurred in the final stages of approach and landing and the navigator's job ends when the aircraft reaches the destination within the approach area. The final navigation to the runway is the pilot's sole responsibility."

Captain Maulik stated that the installation of the Distance Measuring Equipment (DME) had facilitated the problem of navigation to a very large extent and if DME stations were placed every 300 miles, the navi- gator would become redundant. Let me quote from his statement:

"It (DME) helps the pilot to fly airways very accurately. If his position all over areas is placed at 200 miles and if it is 30& miles all along th? airways, the pilot knows his position ac- curately. Then if it is placed at the interval of 300 miles over land areas, then a pilot can fly accurately over these, knowing: every moment his position without the aid of a navigator. The navigator really becomes unnecessary on these planes."

He also stated that on the Atlantic, there are 9 ships or ocean station! Which give information about the weather and also the position of th" aircraft. Whatever route is followed, at least two of these ocean stations are encountered on the way, and so, fixing his position, is an easy matter for the commander. The ground aids, the witness said, are constantly im- proving and the difficulty of fixing VORs (Visual Omni-Range) which require a stable base on ships, was being overcome. The witness was cross-examined about a certain incident which occurred a few months be- fore he appeared in the witness box. I quote below an extract from his statemeni:

"Question: Do you remember one thing, about 2-3 months back, may be a little more, your flight was diverted from Hong Kong to Manila, What happened? Who helped you?

Witness: Over ocean crossing the navigator helps the pilot. In this case, the navigator helped me to Manila.

Question: And you commended him?

Witness: Yes. His work was excellent.

Question: In that flight you went to Tokyo?

Witness: Yes.

Question: Who prepared the flight plan?

Witness: The navigator. It should have been by the Flight Des- patch Section of the Phillippine Airlines but he did not turn up and it was getting late. The navigator helped us and we de- parted more or less as desired."

20. It is, therefore, clear from the evidence of these two witnesses that there is no basis for the navigators' claim that their importance has in- creased with the introduction of jets. On the other hand, it is necessary, for the present, for navigators to be retained by Air-India because so far instrumental navigation aids have not been installed on all the aircraft. Mr, Vimadalal in the course of his arguments made a statement at the Bar that Air-India proposed installing the Doppler or the Inertial Navi- gator on all aircraft in the very near future. We are, however, not con- cerned so much with the future as the present and it is admitted by Captain Maulik that navigators are still being recruited and some per- sons were recently interviewed for the post of flight navigators. For the present, navigators are necessary and will be retained by Air-India.

21. The documentary evidence produced by the parties consists of a tiumber of reports, opinions expressed by experts, articles published in magazines dealing with aeronautical matters etc. The most important and perhaps the most reliable of these are some papers and reports placed hefore the 16th Technical Conference of the International Air Transport Association held at Miami in April, 1965. I shall deal with these first.

(i) A paper presented by the Qantas Empire Airways on the effi- ciency of Doppler as a navigation aid (U-W/l), The conclusion arrived at after a number of tests was stated in paragraph 5 of the paper which in as follows:

"Although Doppler did not fulfil our desires, its merits were re- cognised and Doppler was introduced to our new Sydney/

London via Mexico route in November, 1964 to provide assist- ance to the navigation officers over the long daylight crossing from Tahiti to Mexico, This additional aid was deemed neces- sary because of the limited assistance available from astro- navigation, the paucity of en route surface aids and the uncer- tainty of meteorological forecasting."

The Qantas, it may be said, have not yet dispensed with the services of the flight navigators.

(ii) A survey of inertial navigation mechanizations presented by the United States Air Force Navigation and Guidance Division (U-W/2). In this paper, the use of the electrically supported gyro (ESG) was discussed. The scope of the paper is described as follows:

"A new unconventional inertial navigation system has been under development within the Air Force during the past two yeara as part of a continuing effort to develop better automatic navi- gators to meet the anticipated needs of future manned air- craft. This system has as its heart, the electrically supported gyro (ESG), a component whose design and development spans the last decade.

This paper reviews the principles of operation, advantages, and problems associated with conventional inertial and hybrid systems within the Air Force..,."

The conclusion reached is stated at page 40.

"The ESG is not only extremely accurate, but inherently reliable, and easily maintained."

In the course of the paper, it was observed that to make the instru- ment truly reliable, greater cost would have to be incurred and that if the complexity of the ESG system were reduced, it would be excellent for less stringent accuracy requirements. Nothing Was said about the ques- tion of dispensing with the navigators because the Air Force normally does not have a flight navigator on board the aircraft. The require- ments of the civil aviation are clearly different from those of the Ail Force.

(iii) A paper presented by the KLM on the assessment of the ac- curacy of the Doppler navigation aid. (U-W/5). The results are slated In a graph which shows that the Doppler accuracy is satisfactory and if Doppler card corrections are made, then the task of navigation becomes easier and more accurate.

(iv) A paper presented by David J. Sheftel and Sidney Hirshon of the Systems Research and Development Service, Federal Aviation Agency. (U-W/6). In this paper, an assessment of the inertial navi- gation steering system was made by the Federal Aviation Agency. A summary of the conclusions reached is to be found at page 7:

"Pan Am. operated the equipment on board a DC-8 jetliner during normal passenger schedules and used skilled observers to re- cord the inertial system performance. The inertial system demonstrated feasibility for use as a long distance navigation aid. The majority of flights were performed over the Nortb Atlantic routes."

(v) A paper presented by the United Air Lines containing an assessment of the Doppler (U-W/7).

The conclusion was stated as follows at page 4:

"It was also clear from the evaluation programme that cokpil navi- gation by means of Doppler computer updated by Loran will not eliminate the long distance navigation function per se, since most of the detail of this function must be assumed by the pilot. The navigation function must still be based on the best information available tempered by good judgment if the same level of desired ATS and operational objectives are to be achieved."

(vi) A paper presented by David J. Sheftel of the Systems Research and Development Service, Federal Aviation Agency, on the assessment of the Doppler as a navigation aid. (U-W/8). The data were collected in the first phase from the operations of the Trans World Airlines, and the information furnished by them formed the basis for assessing the navigation accuracies of Doppler navigation equipment. In the second phase, thirteen other airlines participated. The results of both the phases, deduced from the operation of fourteen airlines, are stated in this paper. The relevant information is to be found in Table V at page 13 which gives a statement of the possible errors in navigation arising from Doppler installation. These errors are by no means considerable and errors equal to and larger than 40 Nautical Miles occurred only in 33 per cent, of the cases. With the help of the Doppler, the error occurred in 10 per cent, of the cases and without the Doppler in 90 per cent, of the cases. This paper shows, therefore, that the Doppler is a reliable navigation aid.

(vii) U-W/9 Is a note prepared by the Divisional Operations Manager of Air-India on the Distance Measuring Equipment (DME). It explains that the Distance Measuring Equipment measures the distance directly from the airplane to the ground DME facility and the accuracy of light- weight equipment designed for the general aviation market is claimed by the manufacturers to be within plus or minus one-half mile or 3 per cent, of the actual distance whichever is greater. The maximum effective range of DME is about 100 miles from the station, and the higher the altitude, the greater the effective range.

22. I need not discuss the rest of the documentary evidence in de- tail as it does not add to what is contained in the evidence discussed above. Broadly speaking, the conclusions are that on land where ground DME Stations are available at suitable distances of between 200 and 300 miles, the navigator can be completely dispensed with because the pilot himself can take his "fix" or determine his position without the assis- tance of a flight navigator. On long ocean flights or flights over deserts where no ground DME Stations are available, it is still useful to have a flight navigator. But, with the advance of science, improved instru- ments are being invented and on the Atlantic, there are now nine Ocean Stations which give information of position and weather to flying aircraft. Whicheverone of the recognised routes is followed by an aircraft over the Atlantic, two such Ocean Stations are always available. At the present juncture, Air-India do not propose to discharge their navigators and for some time to come, they will be carried as members of the flight crew. But it is clear that the claim of the navigators that the operation of jets has increased their task and added to their importance, has not

been substantiated by the evidence produced before me. It cannot be said that navigators are indispensable. Some of the airlines have al- ready dispensed with them and are utilising the services of a third pilot who has been trained in the science of navigation. Mr. Vimadalal stated that this is what will happen in Air-India also. My conclusion, therefore, is that the flight navigators are certainly not more important now than they were before. In future, they may become less important or even redundant.

23. The only other point which remains to be considered is the re- lative ranking of navigators and flight engineers. According to Estab- lishment Orders, the seniority of the Commander, First Officer, Navi- gator and Flight Engineer, is in the following order:

(i) Senior Captains or Commanders. They are listed at No. 33. (ii) Two positions junior to them are placed Captains and First

Officers at No. 31.

(iii) Chief Navigators and Navigators are closed at No. 29. (IV) Three places below First Officer and one place below Navi- gator, at No. 28 are placed the Chief Flight Engineer, Assistant Chief Flight Engineer and Flight Engineer.

24. It must be stated at once that the question of ranking Flight Navi- gators and Flight Engineers inter se has not been referred for my de- cision as such. This matter arises only indirectly in relation to the wage-scales of the Flight Navigators and of Flight Engineers. The Flight Engineers have made a representation that their scale must be upgraded because of the added workload, better skill and engineering knowledge required ol them since the introduction and operation of jet aircraft. In arguing their case, their counsel sought strength from the consideration that the function of flight navigators had become much less important than before and comparatively speaking flight engineers were more important. Therefore, so it was argued, the flight engineers must be upgraded and placed above flight navigators in the matter of their salar- ies. The position of the Corporation is that the management is quite agreeable to equating the flight navigators and flight engineers until such tiros as the flight navigators become redundant and are dispensed with.

25. The flight engineers have drawn my attention to the change in their functions since the jets were introduced. It was pointed out, that before World War II, there were no four-engined aircraft in civil avi- ation. After the war, four-engined aircraft came into use and some of them were designed to operate with a flight engineer as member of the crew and some without. Flight navigators formed part of the crew as a matter of course. The DC-6 was designed to fly without a flight en- gineer and was operated by two pilots only. In 1947, there was a series of fatal accidents involving DC-6 and the Civil Aeronautics Board of the United States of America issued a regulation requiring a flight engineer to be on an aircraft whose gross weight exceeded 80,000 lbs. The reasons given by the Board are relevant to the argument of the counsel on be- half of the flight engineers (Party No. 7) and I quote them in full from the document; Exhibit U-VII/1: '

"The Board's reasons and grounds for its conclusions are as set forth hereafter. There are only three aircraft types now be~ ing produced, or expected to be produced m the foreseeable

future, which are in the class of four-engine aircraft certificat- ed for maximum take-off weight in excess of 80,000 pounds. These are the Lockheed Constellation. The Douglas DC-6, and the Boeing 377. Despite the automatic devices which are available and installed in such aircraft, they have so many items calling for the Pilots attention and are so complex in operation that the Pilots' ability to accomplish all duties im- posed upon them may at times be exceeded, if provision is not made for a Flight Engineer. The Flight Engineer will con- tribute substantially to reduction of Pilot fatigue and resul- tant accident provoking sequences. In particular, the Flight Engineer can relieve the Pilot of burdensome mechanical duties which, if required to be performed when the aircraft is being flown on instruments; when there are difficult navi- gational problems, when radio communications are erratic, or when the Pilots are attempting to follow complicated traffic control procedures, and accomplish instrument approaches, would be exceptionally onerous. The Flight Engineer is able to perform important duties and add to safety of flight, even when riding in the jump seat of a plane in which no Flight Engineer station has been provided.

In addition to th? foregoing, the Flight Engineer with a specializ- ed engineer training will be useful in case of fire or other mal- functioning, both in overcoming the difficulty and restoring normal functioning, and in relieving the Pilots of various mechanical duties, particularly those which would require one of them to leave his Pilot's station, while they concentrate on flying the aircraft during any period of emergency. The Flight Engineer will also contribute to the level of safety by assum- ing responsibility for proper completion of ground mainten- ance for the correction of any malfunctioning which has been discovered in flight."

26. Since then, all aircraft whose gross weight exceeded 80,000 lbs. have carried a Flight Engineer as a member of the crew. This was a safety measure which has now been accepted universally. In fact, the Certificate of Airworthiness issued to Boeing aircraft requires that there should be a minimum of three crew consisting of two pilots and one flight engineer.

27. The Civil Aeronautics Board of the United States of America made f. review of the safety factor in reference to Jet Transport Cockpit. The question was whether the cockpit should be designed for two stations meant for two pilots or three stations meant for two pilots and a flight engineer. The Board was thus reviewing two matters:

(i) the configuration of the cockpit and possible alteration in future designs; and

(ii) the size of the crew and the duties of its members.

28. The Board reviewed the practice prevailing in military aircraft and noted that military jets fly with a 2-men crew but since they are equipped with advanced system automation, a 2-men crew was sufficient. This was, however, not possible in civil aircraft because the lengthy pre- flight checks in military aircraft were incompatible with short turn rounds of civil aircraft. So, civil aircraft had to have a 3-men crew— two pilots and a flight engineer. The flight engineer, the Board noted,

had been made necessary by the 80,000-pound rule mentioned above. This rule, however, though it influenced the design of the cockpit, was not the deciding factor because it was felt that in civil aircraft, three men were anyhow necessary to provide passenger comfort and as a measure of safety (heat, pressurisation, etc.), the high density of terminal areas and the relatively greater number of take-offs and landings.

29. The Board considered the possibility of having a 2-men crew to fly jet aircraft. It came to the conclusion that in its present design this was not possible. But, if it were decided to have only a 2-men crew, then certain alterations would have to be made and the flight would be quite feasible, if 80,000-pound rule were also abrogated. Pilots and flight engineers were consulted from this viewpoint and they suggested certain alterations in the design and said that if these alterations were made, it would be possible to fly the jet aircraft with a 2-men crew with its cockpit having two stations only for two pilots.

30. The review further pointed out that originally some of the aircraft also had a radio engineer and a flight engineer as members of the crew. The Board considered the necessity of these men also and pointed out that no domestic flights, flight navigator and radio engineer had already been dispensed with. The Board noted that the introduction of advanced navigation equipment reduced the necessity for a navigator on routes that previously required one. The Board, therefore, left to the Adminis- trator to determine the necessity of carrying a flight radio operator and a flight navigator and pointed out that most of the carriers had only three members of the crew viz., two pilots and a flight engineer or three pilots of whom one held a valid Flight Navigator's Certificate.

31. The learned counsel for flight engineers next went on to demons- trate the importance of flight engineers by producing a summary of the flight experience, qualifications and training required of flight engineers (U-VII-2) and a statement of flight engineer's duties, responsibilities and functions (U-VII-3). I need not discuss these documents in detail be- cause it is not disputed that the flight engineers's duties are manifold and important. The flight engineer has to make certain checks both before and after the flight, and during the flight, he has to attend to a number of important functions. It is quite clear to me that on board, a flight engineer is more important than a flight navigator. The flight engineer's duties are related to the degree of sophistication of the aircraft to which he attends. The more advanced and complex the operation of the air- craft, the more complex and arduous and therefore necessary his duties become. A navigator's task, however, is not in any way different in its nature whatever aircraft he may fly. Indeed, in a jet aircraft, because of its higher speed, it is necessary to have navigation aids, and these, if anything, decrease the burden of the navigator's duties. On some routes, he is not necessary at all. The flight engineer is, however, neces- sary on all routes, short or long, over the land or over the sea. This matter was pointed out by the Civil Aeronautics Board, U.S.A. in the passage quoted above.

32. A few other documents viz., Exhibits U-VII/4, U-VII/8 and U-VII/7. were relied upon and these documents contain a list of the multifarious duties of the flight engineers. I have already stated that some airlines have dispensed with the flight navigators and Air-India does not employ navigators on internal flights. The story of the strlk*

notice given by the flight navigators and the permission granted by the Director-General of Civil Aviation to fly Air-India aircraft without navi- gators, has already been narrated. From this mass of evidence, it was sought to be argued that flight engineers are far more important and far better qualified than flight navigators, and therefore, their salary scale should be raised even higher than the scale of navigators.

33. On the other hand, it was argued on behalf of the navigators that they have always occupied a position superior to that of the flight en- gineers and that there is no reason why this difference should be bridged or the flight engineers placed above them. My attention was drawn to the Report of the Air Transport Euquiry Committee presided over by Mr. Justice Rajadhyaksha, in 1950. The Committee recommended that the navigator's maximum salary should be raised to Rs. 1,750 per mensem and that of flight engineer's to Rs. 1,000 per mensem. The flight naviga- tors were, therefore, considered more important and deserving of higher salary than the flight engineers. This report was, however, made in 1950 when there were no jets in operation and when the flight naviga- tor's functions were more important than the functions of the flight engineers.

34. For the same reason, another document, the Report of the Services Committee of the Indian Airlines Corporation, in 1954, is not strictly rele- vant to the issue before me. That report was also made before the intro- duction of jets and in those days, navigators were considered more im- portant than flight engineers. The grades recommended by the Com- mittee were, Rs. 550-40-750 for flight engineers and Rs. 750-50-1050 for flight navigators. Before 1960, flight navigators were treated better than the flight engineers. At that time, the navigator started with a salary of Rs. 950 and went upto Rs. 1,250. A flight engineer's minimum, salary was Rs. 450 and his maximum salary was Rs. 1,000. After 1960, the gap closed a little. Presently, the navigator's scale is Rs. 950-1450 and the flight engineer's scale is Rs. 750-1300. Adding allowances etc a navigator receives a minimum of Rs. 1,770 and a maximum of Rs. 2,320 while a flight engineer receives a minimum of Rs. 1,545 and a maximum of Rs. 2,155. The Management of Air-India is now willing to equate navigators and flight engineers, and this obviously means the raising of the flight engineer's salary, for in the present proceedings there can be no question of decreasing the navigator's salary. While I am on this point, I may mention that Mr. Vimadalal, on behalf of Air-India, argued that although the salaries of the present navigators cannot be reduced, this Tribunal should make an observation that the Management is at liberty to recruit new navigators at a lower starting salary of Rs. 750. On this point, I can make no observation whatsoever because the matter is beyond my jurisdiction.

35. On behalf of the navigators, a statement U-VI/22, containing a Pay Survey of Navigators in the various International Airlines during the year 1965, was produced. This document, however, cannot be relied upon as material for determining the relative importance of navigators and flight engineers. The data upon which it is based has not been pro- duced before me in full and there is no indication as to whether the salaries are basic salaries or represent total emoluments including allow- ances etc. Also, the salary of a flight engineer does not find mention in this_ statement and so a comparison between the emoluments of flight engineers and flight navigators is not possible.

36. The statement, U-VI/24 which contains a list of the airlines in which the navigator is ranked higher than the flight engineer, is some- what ambiguous because it is not indicated whether the navigator is the specialist navigator or the pilot navigator who obviously ranks above the flight engineer because of his special qualification as a pilot.

37. U-VI/25, is a statement showing the airlines in which the special- ist navigator draws a higher salary than a flight engineers. On the other hand, the flight engineers have produced a document, U-VII/8A contain- ing a list of the airlines in which the flight engineer is paid more than a flight navigator. There are some airlines, e.g. The Japanese and the Qantas in which the night engineers and the flight navigators are paid the same salary. It will be seen that where there have been recent revi- sions of pay based either on agreement or adjudication, the flight engi- neers have been upgraded, and this is an indication of the trend in recog- nising the greater importance of flight engineers on jet aircraft.

38. After considering all the evidence produced in the case and the points raised in the course of arguments, I have come to the conclusion that the flight engineer is a more important member of the crew than the flight navigator in the modern jet aircraft. The flight engineer- has to have knowledge of the engine and its working and he has to conduct certain checks which are extremely important from the safety point of view before and also after the flight. This matter has been sufficiently discussed already. On the other hand, the navigator's task is no more than what it used to be before viz., determining his "position" during the course of a flight. In this, he is better assisted than before because of improved navigation aids e.g. Distance Measuring Equipment (DME), Doppler and Intertial Navigator. The Doppler is fixed on the pilot's panel and the pilot himself can operate it. Over a considerable mileage of the route, ground aids give the requisite information regarding the position of the aircraft, and as scientific research and invention continues, •specialist navigators are becoming less important and even redundant. Indeed, in some of the airlines they have been done away with and their •duties are performed by an extra pilot who has been navigation-oriented. An officer who can perform both functions is more useful, because a third pilot £an relieve the burden of the commander and first officer and also do the work of a navigator. The flight engineer, on the other hand, is indispensable and his duties cannot be taken over by the pilot without straining his capacities beyond the safety measure. There is, therefore, an unanswerable case for upgrading the flight engineers. It seems to me that having regard to all the circumstances of the case, their salaries should be equated with the salaries of the navigators as is being done in some of the airlines, not because I find any equation between the duties or ranks of the navigators and flight engineers inter se, but because I feel that a flight engineer should rank below the first officer and since the flight navigator at present ranks below him and his rank cannot be reduced, a flight engineer will be placed in the same scale and rank as a flight navigator.

CHAPTER VII

Matters in Dispute and discussion of Demands

The matters in dispute set out in the Schedule to the Order of Refer- ence may now be taken up for consideration in detail. It will be con- venient to discuss the various items group-wise rather than seriatim as

the argument will be less prone to become disjointed and discursive. Council for parties suggested this mode of treatment for the purpose of arguing their respective cases and I propose to adopt the same course while dealing with them in my award.

GROUP 1

PAY AND ALLOWANCES

2. Group I comprises the following 28 items :

(0 Item No. I . . .. Scales and grades of pay.

(it) Item No. 3 . . .. 4-wcekly rates of payment of grade pay.

(Hi) Item N o. 4 . . .. Dearness allowance.

(*V) Item No. 5 . . .. House rent allowance/conditions governing

allotment of accommodation.

(v) Item No. 6 . . .. Duty allowance.

(w) Item No. 7 . . .. Machine allowance.

(vii) Item N o. 8 . . .. Tranaport/car/conveyancc allowance.

(viii) Item No. 11 . . . . Jet/hazard allowance for ground staff.

(ix) Item No, 13 . . . Licence allowance.

(x) Item No. 14 . . .. Heavy duty vehicle allowance.

(*0 Item N o. 15 . . .. Jet allowance (cabin attendants and

flight crew).

(xii) Item N o. 16 . . .. Overseas operations allowance.

(xiii) Item No, 19 . . .. Efficiency bonus.

(xiv) Item No. 28 . . .. Washing allowance.

(xv) Item No. 33 . . .. Senior Check Pursers' Instructional allow-

ance.

(xvt) Item N o. 36 . . .. Children allowance.

(xvit) Item No. 37 . . .. Driving allowance,

(xviii) Item No. 41 . . .. Command pay (Senior Captains).

(xix) Item No. 41 . . .. 2nd Class Navigators' licence allowance.

(xx) Item N". 43 . . .. Radio/Telephone allowance.

(xxi) Item No. 44 . . .. Check Pilots allowance,

(xxii) Item No. 48 . . .. Flight Engineer Instructors' allowance.

(xxiii) Item No. 49 . . .. Check allowance for check flight engineers ^ (x.\iv) Item No. 50 Salary for cadet flight engineers.

(xxv) Item No. 51 . . .. Special travelling allowance.

(xxvi) Item No. 52 . . .. Emoluments of Check Navigators.

(.MOIJ) Item N o. J3 Endorsement allowance (Aircraft Main-

tenance Engineers).

(xxviii) Item N o. 5J Secondary increments.

I shall first deal with Item 1—Scales and grades of pay and Item 4— Dearne3s allowance, which are at once the most important and the most difficult matters falling for my adjudication. The demands made by the various parties under these two heads are very far reaching and they have engaged my most anxious and careful consideration. T have been at pains to study the existing position, the present requirements of the workmen as affected by the rise in prices since the prevailing pay scales, were fixed in 1&60 and the financial capacity of the Corporation. I have endeavoured to examine the demands of the workmen in the various grades of pay and relate these demands to their genuine needs, their desire to share in what has been called the progress and prosperity of the Corporation, and- also to the economy, of the country from which,

the economy of the Corporation cannot be be divorced if a realistic image of the industry's future is to be evoked. The present position is stated in Appendices A & B of the Air-India Employees' Service Regulations. Appendix 'A' sets out the various salaries, scales and grades while Appendix 'B' is the statement of the dearness allowance payable at the various stages of the basic pay.

3. The salary scale are as follows:

Pay Scale

Designation Grade No.

1. Rs. 50—3—J9—4—75—5—9° •

Assistant Cook Canteen Vendor Chowkidar Watchman Cleaner Female Worker (Canteen) Gardener Helper Handyman Kitchen Boy Loader Peon Sweeper.

i. R". 7 0 — 5 — 1 0 0 — 1 0 — 1 20 . . ..

, Cook

Heads of Employees in Grade

(1) above.

R s. 9 0 — 5 — 1 0 0 — 1 0 — 1 50 . . ..

3-

Dresser u river Head Cook Loading Supervisor Printers' Assistant.

R s. 9 0 — 5 — 1 0 0 — 1 0 — 1 5 0 — 1 5 — 2 40 .

4-

. Junior Canteen Assistant Junior Catering Assistant Junior Cargo Assistant Junior Clerk Junior Compounder Junior Comptist Junior Mails Assistant Junior Puncher Junior Telephone Operator Junior Teleprinter Operator Junior Time Keeper Junior Traffic Assistant Tracer Typist Typist/Clerk.

R s. 1 0 0 — i o — 1 5 0 — 1 5 — 1 9 5 — 2 0 — 2 55

. Junior Printer

5.

Junior Progress Clerk Junior Storekeeper.

. Senior/Head Driver.

6. R s. 1 2 0 — 1 0 — 1 5 0 — 1 5 — 2 25

R s. 1 4 0 — 1 0 — 1 7 0 — 1 5 — 2 1 5 — - 2 0 — 2 95

Yard Supervisor.

7-

a) R 8. 1 2 0 — 1 0 — 1 4 0 — 1 5 — 2 1 5 — 2 0 — 3 1 5 — E B — 2 0— M u k a d am

8.(

375.

Carpenter Tailor Mason Plumber Mechanic (Cabin Service).

Pay Scale

Designation Grade No.

8. (b) Rs. 155—15—215—20—375 -

. Electrician (Plant) Bench Fitters

(Plant Stores)

Mechanics

(Plant, Air-Conditioning and Teleprinter).

Turners Non-licensed Welders Machinist Miller Painter

(Plant, Transport and Storet

Tinsmith

(Plant and Transport)

Blacksmith.

. Briefing Assistant Rs. 140—10—150—15—225—20—365

•9.

Tnnior Artist Ramp Supervisor Senior Catering Assistant Senior Cargo Assistant Senior Clerk Senior Clearing Clerk Senior Compounder Senior Comptist Junior Livestock Attendant Junior Security Assistant Senior Mails Assistant Senior Telephone Operator Senior Teleprinter Operator Senior Puncher Senior Time Keeper Senior Traffic Assistant Stock Verifier Supervisor-cNm-Clerk Transport Assistant.

Senior Progress Clerk.

1 0. Rs. 150—15—225—20—365

. Senior Printer

i r. Rs. 150—15—225—20—3S5

Senior Storekeeper.

, Stenographer.

12, Rs. 140—10—150—15—225—20—405

Ra. 165—15—225—20—345—25—395

13-

Cashier Draughtsman.

14. Rs. 180—15—225—20—345—25—420

Asst, Cabin Supervisor Asst. Transport Supervisor Senior Canteen Assistant Senior Livestock Attendant Chief Catering Assistant Chief Cargo Assistant Chief Customs Clerk Chief Grain Shop Clerk Chief Printer Chief Telephone Operator Chief Teleprinter Operator Chief Traffic Assistant Librarian Office Assistant Section Storekeeper Senior Security Assistant Technical Assistant.

Designation

Pay Scale

Grade No.

•

15-

16. R B, 2 6 0 — 2 0 — 3 40

, Receptionist.

R s. 1 9 5 — 1 5 — 2 2 5 — 2 0 — 3 0 5 — 2 5 — 4 30

. Lcadinft Hand

17-

R B. 2 5 0 — 2 5 — 4 00 . .. .

Teleprinter Technicians Radio Technician Gr. I. Works Supervisor Welders with 2 licences. . Assistant Flight Purser.

18.

19-

2 0. RB. 275—25—550

Assistant Artist Assistant Security Officer Catering Officer Dispensary Supervisor Filing Supervisor Gardening Supervisor

Incharge-Puncher

Personal Assistant/Secretary Production Assistant Progress Supervisor Senior Draftsman Supervisor, Telephones Teleprinter Supervisor Assistant Sccurity-cwm-Firc

Brigade Officer

Supervisor Communications-

, Chargehand

2 1. Rs. 250—25—450—50—600

F VBTTI 1 n^r

Transport Foreman Works Inspector.

2 2. Rs. 350—25—550

Air Hostess

Assistant Chief Air Hostess-

2 3. Rs. 350—25—450—50—600

. A.M.E. Gr. I ll Junior Simulator

Maintenance Engine r Junior Technical Officer Radio A.M.E. Ill/Junior

Radio Inspector.

RB. 310—25—500—50—650

24.

Assistant Administrative Officer

Assistant Chief Cashier Assistant Link Instructor Assistant Station Acountant Assistant Station Superintendent Assistant Superintendent, Stores- Assistant Superintendent,

Machine Room Canteen Manager Deputy Cabin Supervisor Chief Artist Chief Time Keeper Junior Accountant Junior Flight Operations

Officer

Junior Officer Personal Assistant to the

General Manager

Planner Deputy Transport Supervisor Section Officer Security Inspector

Pay Scale

Designation Grade No.

Rs. 350—25—550—50—650

25.

Flight Purser Senior Check Purser Assistant Chief Flight Purser.

Rs. 450—25—500—50—850

26.

Administrative Officer Assistant Office Superintendent Cabin Supervisor Cabin/Catering Supervisor Chief Air Hostess Chief Cashier Chief Instructor, Training

College

Deputy Public Relations Officer Deputy Superintendent, Stores Equipment Planning Officer Flight Radio Telephony

Operator

Insurance Officer Jr. Simulator Instructor Medical Officer Prc-Flight Inspector Security Officer Security Superintendent Senior Accountant Station Accountant Statistician Welfare Officer Technical Publications Officer Transport Supervisor Superintendent! Machine Room Superintendent, Punch Room Signals Officer.

. A.M.E. Gr. II.

27. (0 Rs. 600—50—900—(L.B.)—50—1000

Radio A.M.E. Gr. II Technical Officer.

CM) RS. 600—50—1000 . . ..

. Assistant Accounts Officer Assistant Catering Supdt. Assistant Personnel Officer Assistant Secretary Cabin Maintenance Supervisor Chief Flight Purser Flight Operations Officer Hollerith Officer Link Instructor Office Superintendent Planning Superintendent Regional Accountant Navigation Instructor Senior Audit Officer Senior Deputy Superintendent,

Stores

Simulator Maintenance Engineer Station Superintendent Superintendent, Establishment Synthetic Instrument Instructor Plant Supervisor (Civil En-

gineer)

Transport Engineer.

Rs. 750—50—1000—100—1300

28.

. Accounts Officer A.M.E. Gr. I. Asstt. Chief Flight Engineer Chief Flight Engineer Senior Flight Operations Officer

Pay Scale

Designation Grade No.

Chief Technical Instructor Dy. Communications Superin-

tendent

Establishment Officer Flight Engineer Simulator Instructor Operations Officer Operations Superintenden Radio A.M.E. Gr. I. t Senior Synthetic Instrument

Instructor

Senior Technical Officer Superintendent, Stores Superintendent, Transport Technical Instructor Sr. Simulator Maintenance

Engineer

Senior Medical Officer.

RB. 950—50—1050—100—1450

. Assistant Chief Navigator 29-

Assistant Planning Controller Asstt. Controller of Stores and

Purchases

Chief Flight Despatcher Chief Navigator Internal Audit Officer Navigator Publicity Manager Senior Accounts Officer Sr. Simulator Instructor Station Manager Public Relations Manager.

Rs. 1000—100—1500

30.

. Chief Medical Officer

Personnel Officer Senior Inspector/Assistant

Superintendent,

Rs. 1050—100—1450

3 1.

. Captain (Fir&t Officer).

3 2. Rs. 1200—100—1800

. Assistant Controller of Accounts Communications Superintendent Deputy Chief Inspector Dy. Controller of Stores and

Purchases

Dy. Superintendent/Performance

Engineer

Personnel Manager Secretary Senior Station Manager.

Rs. 1300—100—1800

. Chief Pilot

33-

Flying Instructor Senior Captain (Commander).

Rs. 1500—100—2000

, Chief Inspector

34-

Commercial Manager Dy. Engineering Manager Dy. Controller of Accounts Regional Manager Superintendent/Works Engineer,

Flight Superintendent, Training.

Rs. 1600—100—1900

, . Chief Administrative Officer Rs. 1800—100—2000

35- W 36.

Divisional Operations Manager.

Pay Scale

Designation Grade No.

R s. 1 8 0 0 — 1 0 0 — 2 2 00 . . ..

. Controller of Stores and Pur- 37-

chases.

f Director of Engineering Director of Operations Director of Planning and Inter-

national Relations Emoluments as approved by Government -^ Commercial Director

Financial Controller Technical Director Assistant General Manager Dy. General Manager General Manager.

4. The dearness allowance at the various stages

follows:—

Basic        D.A.       Basic       D.A.       Basic       D.A.        Basic      D.A.
 pay                    pay                    pay                     pay
  Rs.         Rs.        Rs.        Rs.         Rs.        Rs.         Rs.         Rs.
   50         73         175        1 12        360        150         1025       2 20
   51         74         179        H3          365        151         1050       2 22
  53          75         185        "5          370        152         1075       225
   56         76         190        116         375        153         IIOO       2 27
   58         77         195        117         381        154         1125        2 30
  61          78        2 00        118         385        155         1150       2 32
  64          79        2 05        124         395        156         " 75       2 35
  <56         80         2 10       1 25        400        157         1200        237
  68          81         2 15       126         4 10       159         1225        2 40
  73          S3         2 16       127         4 20       161         1250        242
  80          85         2 25       128         425         162        M75         245
   85         87         2 30       129         440         164        1300        247
   88         89         235        130         445         165        1325        250
  95          91         2 40       131         450         166        1350        252
  1 00        93         245        132         460         168        1375        255
  105         95         250        133         475         170        1400        257
 no           96         255        134         480         171        1425        260
  "5          97         260        135         500         175        1450        262
 J 20         98         265        136         525         178        1475        265
 1 25        IOO         2 70       137         550         181        1500        267
 1 30        1 01        275        138         6 00       187         1525        2 70
 135         1 02       2 80        139         800        192         1550        2 72
 140         103         285        140         825         195        1575        275
 1 45        1 05        2 90       141         850         198        1600        2 77
  150        106         3 00       143         875        2 02        1625        2 80
  155                    3 10       144         900        2 05        1650        2 82
  1 60       108         325        145         925        2 08        1700        287
  163        109         335        146         950        2 11        1750        2 92
  165        no          345        147         975        2 14        1800        2 97
  170        I II        350        148        1000        2 17        1850        3 00
                                                                        fl-

   5.  The  demands  made  by  parties  may  also  be  stated. In  the  original
Charter  of  Demands,  Party  No. 2 asked  for  the  following  grades  and  scales
of  pay:
    (n  Rs. 80—10—110—15—170.                                      (7  years)
       1. C Ileaners.
       2.  I 'eons.
       3.  I .loaders.
       4.  I landyman.
       5. £ Sweepers.
       6. C hardeners.
       7. ( Zhowkidars.
       8. ( Colony  Watchman.
       9.  s Vendors.
      10. ] Female  Worker  (Canteen).
      11. < Contract  Labourer.
       12.: Badli/Casual  Labourer.
     (ii)  B Is.  100—10—150—15—195.                                (S  years)
        1. Head  Cleaners.
        2. Head  Peons.
        3. Head  Loaders.
        4. Head  Handyman.
        5. Head  Sweepers.
        6. Head  Gardeners.
        7. Head  Chowkidars.
        8. Head  Watchman  (Colony).
        9. Head  Vendors
       10. Head  Female  Worker     (Canteen).
       11. Heads  of  employees  in  categories  coming  under  (i)
       12. Kitchen  Boy.
        13. Tea  Makers  (Canteen).
        14. Employees  coming  under  (i)  and  handling  or
             operating  machines  in  Engineering  or  other
             Depts.
      (iii) Rs.  120—10—150—15—225.                                  (8  years)
         1. Loading  Supervisors.
         2. Assistant  Cooks  (Canteen).
         3. Dressers.
         4. Cooks  (Canteen).
         5. Employees  in  (i)  working  as  Service  and  equipmen t
             supervisor  in  cabin  and  catering  Dept.

(iv) Rs.  150—15—210—20—310—25         460.                    (15  years)
   1. Head  Cooks.
   2. Drivers.
   3. Yard  Supervisors.
   4. Head/Senior  Drivers,
   5. Printer's  Assistant.
   6. Mukadam.
(v)  ] 3s.  180—15—225—20—305—25-^130—50—730.                  (18  years)
   1. Junior  Clerk.
   2. Junior  Timekeeper.
   3. Typist-Clerk.
   4. Typists.
   5. Junior  Punchers.
   6. Junior  Comptists.
   7. Junior  Telephone  Operators.
   8. Junior  Teleprinter  Operators.
   9. Junior  Compounded
  10. Junior  Canteen  Assistant.
   11. ,  Junior  Mails  Assistant.
  12. Junior  Traffic  Assistant.
  13. Junior  Cargo  Assistant.
   14. Junior  Store-keeper.
   15. Junior  Progress  Clerk.
  16. Junior  Printer.
   17. Tracer.
   18. Senior  Clerk.
   19. Senior  Timekeeper.
   20. Senior  Punchers.
   21. Senior  Comptists.
   22 .  Senior  Telephone  Operator.
   23. Senior  Teleprinter  Operator.
   24. ,  Senior  Compounder.
   25, ,  Senior  Mails  Assistant.
   26 .  Senior  Traffic  Assistant.
   27. .  Senior  Cargo  Assistant.
   28. .  Senior  Storekeeper.
   29. Senior  Progress  Clerk.
   30 .  Senior  Printer.
   31 .  Cashier.
   32 .  Stenographer.
   33 .  Steno-typists.
   34 .  Transport  Assistant.
   35 >. Stock  Verifiers (Stores).
   3€ i.  Draughtsman.

  37. Junior  Catering  Asstt.
  38. Senior  Catering  Asstt.
  39. Supervisor-cum-Clerk.
  40- Junior  Artists (S.T.A.)
  41. Junior  Printer  (Artists).
  42. Senior  Clearing  Clerk,
  43. Senior  Printer (Artists).
  44. Ramp  Supervisor.  !
  45. Senior  Canteen  Asstt.
  46 .  Security  Assistant.
  47. Briefing  (Operations)  Asstt.
  48. Grainshop  Clerk  (Chief),
(vi) Rs.  260—20—300—25—400—50—850.                             (15  years)
   1. Mechanics  (all  trades  aircraft  engineering).
   2. Mechanics  (all  trades  works  engineering).
   3. Mechanics  (all  trades  M.  T.  engineering).
   4. Welders  (non-licences).
   5. ,  Technician  (Teleprinter).
(vii) Rs.  275—25—450—50—850.                                   (15  years)
   1. Asstt.  Cabin  Supervisor.
   2. Chief  Catering  Assistant, i
   3. Librarian.
   4. Chief  Cargo  Assistant.
   5. Chief  Printer. )
   6. Asst.  Transport  Supervisor.
   7. Chief  Customs  Clerk.
   8. Office  Assistant/Empl.  Asst.
   9. Section  Storekeeper.  |
  10. Chief  Telephone  Operator.
  11. Technical  Assistant.
  12. Chief  Traffic  Assistant.
  13. Assistant  Artist.  [
  14. Chief  Printer  (Art  Work).
  15. Asst.  Catering  Supervisor.
  16. Progress  Assistant.
  17. Planning  Assistant.
  18. Senior  Briefing  Asstt.
  19. Senior  Operations  Asstt.
  20, Head  Compounder.
  21. Senior  Cashiers/Sr.  Stenos.
  22. Chief  Comptists.
  23. Chief  Punchers.
  24. Senior  Transport  Asstt.

       8. Transport  Foreman  (M.T.).
       9. Work  Inspector  (Plant  Eng.).
      10. Supervisor-Plant.
      11. Leading  Hands  (aircraft  engineering).
      12. Chargehands  (aircraft  engg.)
      13. Examiners  (DGCA  Approved  aircraft  engineering).
      14. Leadinghand  (Teleprinter).
      15. Chargehands  (Teleprinter).
      16. Foreman  aircraft  engine  Test  house.
    (x)  B :s.  350—25—450—50—700.                                  (9  years}
       1. Receptionists.  |
       2. Lady  Receptionists.
       3. Passenger  Relations  Asstt.
       4. Ground  Hostess.
       5. Incharge-Passport.
   

.tec.  'S(ii)]  THE  GAZETTE  OF  INDIA  EXTRAORDINARY
(ii)  I Is.  150—10—180—15—225—20—345.
(12  years)
1. 2.
3. 4.
5.
6. 7.
8. 9. 10. 11. 12.
13. 14.
Head  Cleaners. Head  Peons. Head  Loaders. Head  Sweepers. Head  Gardeners. Head'  Chowkidar. Head  Watchman  (Colony). Head  Vendors. Head  female  workers  (Canteen). Head  Handyman. Heads  of  employees  in  grade  (i)  above. Kitchen  boy. Tea  makers  (Canteen). Employees  in  grade  (i)  above  who  are  operating or  handling  duplicating  machines  or  other machines  or  processes  in  Engineering  or  other Departments-  i
15. Daftri.
Rs.  170—10—190—15—250—20—370.
(12  years) 
1,
,  Loading  Supervisors.  |
2. Dressers. Assistant  Cooks. ,
3. 4 .  Employees  in  grade  (i)  working  as  Service and/or  Equipment  Supervisor  in  Cabin-Cater- ing  or  other  Departments.
5
5
.  Cooks. , .  Binders.
Mechanic  Helper/Printer  Helper.
7.
(14  years) Rs.  180—10—200—15—260—20—360—25—435.
(iv)
1
2 3
.  Head  Cooks. .  Drivers. .  Printers  Assistant.
Rs.  195—10—215—15—275—20—375—25—450.
(14  years) (v)
1
2
3 4 5
e
.  Yard  Supervisor. .  Senior  Drivers. (.  Head  Drivers. .  Mukadam. •. Mukadam  (Gardening). !. Head/Senior  Dressers. : .  Surgery  Assistant.  (Jr.). .  Despatch  Rider.  |
 
7 8

274  THE  GAZETTE  OF  INDIA  EXTRAORDINARY  LPAHT II—
(vi) Rs.  210—15—300—20—400—30—580—50—680.                      (19  years)
   1. Junior  Clerk.
   2  Junior  Timekeeper. ;
   3. Typist-clerk.  ,
   4. Typists.  |
   5. Junior  Punchers.
   6. Junior  Comptists. )
   7. Junior  Telephone  Operators.
   8. Junior  Teleprinter  Operators.
   9. Junior  Compounder. j
  10. Junior  Canteen  Assistants. I
  11. Junior  Mail  Assistants.
  12. Junior  Traffic  Assistants.
  13. Junior  Cargo  Assistants.
  14. Junior  Cabin  Assistants. \
  15. Junior  Catering  Assistants.
  16. Junior  Security  Assistants.
  17. Tracers.
  18. Ferro-Printer  Operator.
   19. Record  clerk.
(vii) Rs.  225—15—300—20-400—30—580—50—680.                     (18  years)
   1. Junior  Storekeeper.  |
   2. Junior  Progress  Clerks.
   3. Junior  Expeditor.
   4. Junior  Proof  Reader.  |
   5.. Junior  Compositor.
   6. Junior  Plate  Maker. 1
   7. Junior  Camera  Operator.
   8. Junior  Printing  Machine  Operator.
   9. Junior  Printer  (I.B.M-  Composing).
  10. Art.  Work  Asstt. (Printing). ,
   11. Junior  Documentation  Asstt.
  12. Junior  Sales  & Advertising  Asstt.
  13. Junior  Statistical  Asstt.
  14. Drawing  Office  Asstt.  ;
                                                                (16  years)

Rs.  280—20—320—25—395—307575—50—8K
(viii) 1. 2. 3. 4. 5.
Senior  Clerk.  \ Senior  Timekeeper. Senior  Punchers. Senior  Comptists. Senior  Compounders. ] Senior  Telephone  Operators.
6.

6EC.  3(il)j  THE  GAZETTE  OF  INDIA  EXTRAORDINARY  275
7. 8. 9.
10.
11. 12.
13. 14.
15.
16. 17.
18.
19.
20. 21.
22.
23. 24. 25.
Senior  Teleprinter  Operators. Senior  Mail  Asstt. 1 Senior  Traffic  Asstt. Senior  Cargo  Asstt. Stenographer. Steno-typiste Transport  Asstt.  (Junior). Senior  Typist-clerks. Senior  Typists.  ( Senior  Catering  Asstts. ,' Senior  Cabin  Asstt. Junior  Draughtsman. Head  Tracers/Senior  Tracers. Supervisor-cum-Clerk. Junior  Printer  (Art.  Work). Senior  Clearing  Clerk. Ramp/Equipment  Supervisors. Senior  Canteen  Asstts. Junior  Artists.
(ix) Rs.  300—20—320—25—395—30—575—50—825.
(15  years>
1 2 3 4 5 6 7 8
S
1C 11 12
i; 1'
U 11
r
1! 1!
2i 2
.  Senior  Storekeeper. , .  Senior  Progress  Clerk. .  Stock  Verifiers. 1 .  Senior  Expeditor. , .  Senior  Proof  Reader.  | .  Senior  Compositor. .  Senior  Plate  Maker. : !.  Senior  Camera  Operator. 1. Senior  Printing  Machine  Operator. 1. Senior  Printer  (I.B.M.  Composing). ..  Senior  Statistical  Asstt. ',. Senior  Sales  & Advertising  Asstt. ).  Senior  Documentation  Asstt. I.  Record  Asstt. 5.  Draughtsman,  i 3.  Transport  Asstt. 7. Library  Asstt.  | 3.  Asstt.  Cashier. •>. Senior  Printer. 0.  Junior  Briefing  Asstt. 1.  Junior  Operations  Asstt.

276  THE  GAZETTE  OF  INDIA JXTRAORDINARY  [PAHT  II—
(X)  ] rts.  300—20—320—25—395—30—575—50—925.                   (17  years)
    1. Mechanics  (All  Trades)—Aircraft  Engineering.
   2. Mechanics  "(An  Trades)—Work  Engineering,
   3. Mechanics  (All  Trades)—M.  T.  Engineering.
    4. Welders  (non-licenced)
    5. Technicians  (Teleprinter/Telephones).
(xi): Rs.  425—30—575—50—975.                                   (13  years)
   1. Asstt.  Transport  Supervisor.
   2. Asstt.  Cabin  Supervisor.
   3. Chief  Catering  Asstt.
   4. Librarian.
   5. Chief  Cargo  Asstt.  \
    6. Chief  Printer.  |
   7. Chief  Customs  Clerk.
   8. Office  Asstt./Accounts  Superintendent.
   9. Security  Asstt.
  10. Sectional  Storekeeper.
  11. Chief  Teleprinter  Operator.
  12. Chief  Telephone  Operator.
  13. Technical  Asstt.  (Planning  & Previsioning).
  14. Chief  Traffic  Asstt.
  15. Senior  Printer (Art.  Work).
  16. Asstt.  Artists.
  17. Asstt.  Catering  Supervisor.
  18. Progress  Asstt.
  19. Chief  Compounder,
  20. Cashier,
  21. Chief  Comptists.
  22. Chief  Puncher.
  23. Senior  Transport  Aastt.
  24. Briefing  Asstts. ;
  25. Senior  Operations  Asstts.
  26. Chief  Canteen  Asstt.
  27. Employment  Asstt.
  28. Senior  Stenographers.
  29. Senior  Briefing  Asstt.  |
  30. Estate  Asstt. ;
  31. Surgery  Asstt.
(xii) Rs.  500—50—1000—100—1200.                                (12  years)
   1. Filing  Supervisor.
   2. Incharge-Puncher-s.
   3. Asstt.  Security  Officer.
   4. Dispensary  Supervisor.


SEC.  3(11)]  THE  GAZETTE  OF  INDIA  EXTRAORDINARY  2y^
   5. Catering  Officer.
   6. Chief Artist.
   7. Chief  Printer.
   8. Gardening  Supervisor.
   9. Personal  Asstt.
  10. Secretary  to  Departmental  Heads.
  11. Production  Asstt.
  12. Planning  Asstt.
  13. Senior  Draughtsman.
  14. Library  Supervisor.
  15. Supervisor—Telephones.
  16. Teleprinter  Supervisor.
  17. Progress  Supervisor.  :
  18. Supervisor—Communications.
  19. Asstt.  Security-cum-Fire  Brigade  Officer.
  20. Fire  Brigade  Officer
  21. Section  Officer,
  22. Junior  Officer.
  23. Planner.
  24. Chief  Time  Keeper.
  25. Supervisor—Time  Office.
  26. Security  Inspector.
  27. Chief  Store  Keeper.
  28. Supervisor—Stores.
  29. Supervisor  (Colony).
  30. Publicity  Asstt. ;
  31. Works  Supervisor.
  32. Head  Cashier/Senior  Cashiers.
  33. Junior  Accountant, i
  34, Supervisor—Printing.
  35. Chief  Briefing  Asstt.
  36. Chief  Operations  Asstt.
  37. Supervisor—Sales  and  Advertising.
  38. Supervisor—Passport.
  39. Establishment  Asstt.
  40. Supervisor—Canteen.
  41. Comptist—Supervisor.
  42. Inspection  Asstt.
(xiii) Rs.  450—25—500—50—950.                                  (11  years)
   1. Receptionists.
   2. Ground  Hostess.
   3. Passenger  Relations  Asstts.
   4. Live-Stock  Attendants.
   5. Cargo  Attendants.


278  THE  GAZETTE  OF  INDIA  EXTRAORDINARY  [PART  I I-
(xiv) Rs.  450—25—500—50—950.
(11  years)
Asstt.  Flight  Pursers.
(8  years) 
2.
Rs.  500—50—700—100—1100. Air  Hostess. Asstt.  Chief  Air  Hostess.
(xvi) Rs.  500—50—700—100—1400.
(11  years)
1.
2.
3.
Flight  Purser. Senior  Check  Purser. Asstt.  Chief  Flight  Purser.

(12  years)
1.
0
Examiners. Ungraded  A.M.Es./A.R.M.Es
3. Master  Mechanic.
4. Welders  (Licenced).
5. Approved  Welders.
€. Leading  Hands.
7. Charge  Hands.
8. Foreman—Test  House.
9. Foreman—Transport.
10. Works  Inspector  (Plant  Engineering).
Plant  Supervisor  (Works  Engineering).
11.
12. Approved  Inspectors.
Technical  Asstt.  (Technical).
13.
le  demand  of  Party  No.  3  is  as  follows:
7.  Tr
scales  and  Grades  of  Pay.
The  following  categories  of  employees  of  the  Air-India  Corporation should  be  paid  the  scales  of  pay  shown  against  them  replacing  the  exist- ing  scales  of  pay  :
Categorie  Grade  I
CD Cleaners  other  than  those  working  in the  EnRg.  Deptt.,  Stores  Operations and  Printing Press.
• Ra.iOO—10—150—15—210
n
(4) 5) 6
?!
Loaders. Kitchen  Boys. Canteen  Vendor  (other  than  tea maker). Gardener. Sweeper. Female  Worker  (Canteen). Handyman. Helper.
 
9)

flEC. 3(11)]  THE  GAZETTE  OF  INDIA  EXTRAORDINARY  2
Categories  Grade  II
do; Cleaners  (Working  in  the  Engg.  Dcpt.,  "
Stores,  Operations  and  Pant- ing  Press).
-Rs.  120—io—150—15—225—20—285.
(")
fits
Head  of  Employee  In  Grade  I. Peons. Cooks/Tcamaker. Chowkidars/Colony  Watchman.
(14)
Those  who  are  asked  to  operate  the Duplicating  Machine  will  continue  to get  the  present  allowance  except  the full  time operator.  The  full  time operator  should  be  fitted  in  Assistant Printing  Grade.
Grade  III
(15)
•Rs.  140—10—150—15—225—20—305.
• 19) • 20)
Head  Cook. Head  Chowkidar. Head  Peon/Daftarl. Dresser. Loading  Supervisor, Blast  Operator. Head  Cleaner.
21)
Grade  IV
(22)
Drivers
•Ra.  150—15—225—20—323.
Printer's  Assistant.
<*3)
Grade  V.
•Rs.  180—15—225—20—345—25—445.
Senior/Head  Driver Yard  Supervisor Mukadam
(24 (25 (26
Grad*  VI
-Ra.  180—15—225—20—345—25—445.
Typist/Clerk  1 Jr.  Clerk Typist Jr.  Punch  Operator Jr.  Comptists Jr.  Telephone  Operator jr.  Time  Keeper Jr.  Compounder Jr.  Canteen  Assistant Jr.  Mails  Assistant Jr.  Traffic  Assistant Jr.  Tracer Jr.  Cargo  Assistant Jr.  Catering  Assistant.
27 28 29 3° 31 32 33) 34) 35) 36 37 38 39 4°)
Grade  VII
 (4i) Jr.  Teleprinter  Operator              "|
(42) Jr.  Store  Keeper                       y Rs.  195—15—225—20—345—25—470.
 (43 Jr.  Progress  Clerk
(44) Jr.  Printer


280  THE  GAZETTE  OF  INDIA  EXTRAORDINARY  [PART  II—
lategories  Grade  VIII
)  Sr.  Clerk/Clearing  Clerk )  Sr.  Comptists  WJ )  Sr.  Telephone  Operator
•Rs.  225—20—345—25—470—50—570.
Sr.  Compounder Sr.  Mails  Assistant Stock  Verifier Sr.  Traffic  Assistant Sr.  Cargo  Assistant Sr,  Punch  Operator Jr.  Artist Sr.  Catering  Assistant Sr.  Time  Keeper Stenographer Colony  Supcrvlsor/Supervlsor-cKW-Cler Ramp  Supervisor
(45 (46 (47 (48 (49 (50 Cii (52 (53 (54 (55 (56 (57 (58 (59 (6o)  Transport  Assistant
Grade  IX
(61}  Sr.  Teleprinter  Operator                          1
(62)  Sr.  Store  Keeper                                  • R B. 2 4 5 — 2 0 — 3 4 5 — 2 5 — 4 7 0 — 5 0 — - 6 2 0.
(63)  Sr.  Progress  Clerk
(64)  Sr.  Printer

Grade X
65) 66) 67) 68) 69 70
Rs.  265—20—345—25—520—50—720.
71 72 (73 (74 (75
76) 77) 78) 79) 80) 81) (82)
Cashier Draughtsman Section  Store  Keeper Librarian Chief  Traffic  Assistant Office  Assistant Chief  Cargo  Assistant Chief  Printer Asstt.  Transport  Supervisor Asatt.  Cabin  Supervisor Chief  Telephone  Operator Chief  Teleprinter  Operator Sr.  Canteen  Assistant Sr.  Stenographer. Briefing  Assistant Chief  Catering  Assistant Jr.  Cargo  Attendant Chief  Customs  Clerk Security  Assistant
(835
Grade XI
Technical  Assistant  ,
Rs.  285—20—345—25-—520—50—J2O, (84)
H  Grade XII
•  Rs.  350—25—450—50—800.
(85 (86 (87 (88 (89 (90 (91) (92) (93) (94)It (95)
S e c r e t a r y / P e r s o n al  A s s tt Sr.  D r a u g h t s m an  . . .. T e l e p r i n t er  S u p e r v i s or Supervisor  Communication Filing  Supervisor Progress  Supervisor  . . .. Supervisor  Telephone Catering  Officer Sr.  Cashier Sr.  Librarian Production  Assistant Assistant  Artist Incharge-Punch  Operator Gardening  Supervisor Dispensary  Supervisor
 
(97) (98) (99)

SEC.  8(ii)]  THE  GAZETTE  OF  INDIA  EXTRAORDINARY  2"I
Grade  XIII
RB.  280—20—340—25—440 (100)  Receptionists
Grade  XIV
(IQI  Aero  Technicians
IRS.  215—20—335—25—460—50—710.
102  Automobile  Technicians 103  Plant  Technicians I104  Masons/Turners J105  Welders  \  with  one  licence '106  Plumber  /  or  no  licence.
Grade  XV
\ R s.  235—20—335—25—460—50—760.
(107)  Teleprinter  Technicians (108;  Welders  (with  two  licences)
Grade  XVI
licences)  j-Rs.  325-25-450-50-900.
(109  Leading  Hands  (All  trades) ( no  Welders  (with  more  than  two ( in  Charge  Hands/Foreman
Grade  XVII

Rs.  400—25—450—50—700—75—
1000—100—1200.
Employees  in  their  grades  listed  under  Grade  Nos.  VI  and  VII  on reaching  the  maximum  of  their  grades  should  automatically  move  to  the Senior  Grade  Nos.  VIII  and  IX  respectively.
The  salaries  of  employees  shall  be  adjusted  in  the  new  grades  on  the following  basis:
(a)  One  additional  revised  increment  for  every  completed  two years  of  service  after  being  Iltted  in  the  revised  grade.  If there  is  no  point  of  fitment  in  the  revised  grade,  the'  emplo- yees  should  be  fitted  in  next  higher  stage  in  the  new  grade.
(b)  For  the  purpose  of  this  demand,  service  of  an  employee  shall
be  the  total  service  rendered  in  the  Corporation.
(c)  The  above  adjustments  should  be  made  after  fitting  the  em- ployee  in  the  revised  pay  scale.  Those  who  get  more  than the  maximum  as  the  result  of  the  above  adjustment  will  con- tinue  to  get  the  same  and  their  basic  pay  cannot  be  reduced under  any  circumstances.
The  fact  that  an  employee  has  already  obtained  the  maximum  in  the existing  grade  and  has  been  at  that  maximum  for  more  than  one  year SS  n° i Vn  a!ny  w"jy. afff*  Ms  right  to  have  basic  pay  adjusted  in  accord- ance  with  rule  contained  in  "Demand  No. 10."
mA  ln e£d  n ot  s?t  °,ut  t he  d e m a nds  of  Parties  No.  4  and  5  as  a  settle- ™cUhSr  £ ™aTV ed  f  b S t W e en  t he  CorPoration  and  both  these  parties, ana  tneir  demands  no  longer  survive.
a,vigators>  have  claimed  a  salary  scale  of R s9l4Sr tT i LF l i g ht  N
+
S S n S ' f c1^^  ™th  f°r naVigatOrS and a Sakry °f^S"  80°  P"

282  THE  GAZETTE  OF  INDIA  EXTRAORDINARY  [PART  II-
10.  Flight  Engineers,  Party  No.  7,  have  claimed  a  basic  pay  grade  of Rs.  1000—100—1800.  They  also  claim  the  following  allowances  and bonus:—
(1)  (a)  Rs. 300/-  for  the  first  3 years  after  qualification  of  Boeing
aircraft.
(b)  Rs.  500/- for  the  4th  and  5th  years. (c)  Rs.  700/-  for  the  6th  year  and  above.
(2)  An  Overseas  Operations  Allowance  of  Rs. 450/- per  month,  and (3)  An  Efficiency  Bonus  of  Rs.  100/-  per  month.
Dearness  Allowance
11.  With  regard  to  deamess  allowance,  the  claim  of  almost  all  parties Is  that  there  should  be  a  complete  neutralisation  of  the  rise  in  the  cost of  living  since  the  scale  of  the  dearness  allowance  was last  fixed-  Party No,  2 claims  that  dearness  allowance  should  be  calculated  according  to the  following  table: —
Basic pay
D. A.
D.A.
D.A.
R".
Rs. Ps.
R&. Pa.
Ra. Ps.
140
189-00
426
396 '5
150
202-50
406'69
455
170
229'50
416-81
485
200
424-79
270-00
515
215
280-12
430-64
545
293-62
335
575
436'49
307'12
446-24
625
255
320-62
275
675
455'99
295
334-12
725
465-74
320
351-00
•485-24
825
378-00
370
925
504-74
1250
603-12
386-44
395
12.  The  above  table  is  related  to  the  consumer  price  index  between 441  and  450.  If  the  index  figure  rises,  there  should  be  an  addition  of 1 per  cent,  to  5 per  cent,  for  every  rise  of  10 points  according  to  different slabs.
13.  Party  No.  3 demands  that  the  existng  rate  of  dearness  allowance should  be  increased  by  50  per  cent,  with  the  proviso  that  in  no  case should  the  increase  be  less  than  Rs.  50/-,  and  in  future  for  every  rise of 5  points  in  the  cost  of  living  index  figure  the  employee  should  be  corn- .pensated  by  a flat rate  of  Rs. 5/-  per  month.
14.  The  claim  of  Party  No. 6 is  set  out  in  paragraph  15 of  its  written statement  which  is  in  the  following  terms:-—
 
"The Navigators  do not  make  any  specific  claim  as regards  dearness allowance.  Air  India  has  at  present  a  scale  of  dearness allowance,  varying  with  basic  salary.  This  scale  is  in  com- mon  with  the  rest  of  the  flight  crew.  They  demand  that  such

SEC.  3(ii)]  THE  GAZETTE  OF  INDIA  EXTRAORDINARY  283
modifications  in  the  rates  of  clearness  allowance  oJE the  rest of  the  flying  crew  as  may  be  made  from  time  to  time  should be  applied  to  Navigators  also.  The  Navigators  say  that  the dearness  allowance  at  present  paid  by  Air  India  is  not  ade- quate  and  does  not  justify  itself  in  the  present  context  of rising  costs-  It  must,  therefore,  be  improved  so  as  to  neu- tralise  the  rise  in  the  cost  of  living  and  should  be  on  a  scale which  will  vary  in  proportion  to  further  rise  in  the  cost  of living."
15.  As  regards  Party  No.  7,  their  demand  is  as  follows: —
"The  Association  has  not  specifically  asked  for  revision  of  I>.A., but  it  has  asked  for  an  increase  in  salary  and  other  allow- ances  partly  to  compensate  for  the  increase  in  prices,  and this  should  be  taken  into  consideration  while  considering the  demand  of  revision  of  grade  or  other  allowances.  How- ever  should  -there  be  a  revision  of  the  said  Appendix  'B' then  the  Association  demands  that  the  same  be  made  appli- cable  to  the  flight  engineers."
 
16,  A  separate  dearness  (allowance  possessing  a  separate  entity  of its  own,  added  to  the  basic  pay  in  order  to  make  up  the  total  emolu- m e nt  uf  a  workman  is  a  feature  peculiar  to  India.  It  seems  that  in  the hearts  of  men  with  nostalgic  memories,  there  continues  to  subsist  an undying  hope  that  the  days  of  plentiful  supplies  and  cheap  prices  will once  again  come  back.  It  is  strange  that  this  hope  should  continue  to struggle  in  the  face  of  the  most  adverse  experience  and  pragmatic  logic Prices  have  increased  in  relentless  manner  and  continue  to  increase;  no right-thinking  man  now  feels  that  there  will  be  a  substantial  fall  in  the cost  of  living  within  a  foreseeable  time.  In  other  countries  too,  there  has been  a  similar  rise  in  the  cost  of  living,  and  this  has  been  compensated by  scaling  up  the  salaries.  It  seems  to  me  that  the  time  has  come  to  do away  with  the  anomaly  of  maintaining  a  small  basic  pay  and  a  very large  dearness  allowance.  For  instance,  at  the  lowest  grade  for  a  basic pay  of  Rs.  50/-,  the  dearness  allowance  now  is  Rs.  88 which  is  more  than 150  per  cent,  of  the  basic  salary.  At  the  higher  grades  of  pay  the  per- centage  of  the  dearness  allowance  falls  but  remains  substantial.  There Is  perhaps  a  reluctance  to  increase  the  salaries  in  a  way  which  might appear  disproportionate,  but  when  we  consider  the  total  emoluments received  by  a  workman  whether  at  the  lowest,  the  intermediate  or  the highest  grade,  there  seems  very  little  justification  for  dividing  his  total emoluments  in  an  unrealistic  manner  so  that  a  large  portion  of  it  cons- titutes  a  mere  appendage  in  the  shape  of  dearness  allowance.  At  least a  substantial  part  of  the  dearness  allowance  should  now  be.  merged in  the  salary,  This  was  the  recommendation  made  by  the  Gadgil  Com- mittee  and  was  later  supported  by  the  Second  Pay  Commission  1957— 59-  Some  part  of  the  dearness  allowance  was  then  merged  with  the basic  salary.  The  time,  I  feel,  has  come  for  a  further  merger,  partial if  not  complete.  It  may  be  that  there  is  some  possibility  of  prices  fall- ing  to  some  small  extent  if  the  economy  of  the  country  can  be  improved, though  for  myself  I  entertain  very  little  hope  on  this  score  Neverthe- less,  it  raav  be  an  overbold  step  to  merge  the  entire  dearness  allowance into  tho  salaries,  and  I  have,  therefore,  considered  it  advisable  to  upgrade all  the  salaries  and  keep  only  a  portion  of  dearness  allowance  separate. This,  ira  mv  view,  is  a  more  realistic  way  of  dealing  with  the  question of  dearness  allowance  than  keeping  it  wholly  separate  from  the  basic

284  T HE  GAZETTE OF INDIA EXTRAORDINARY  [PART II—
salary  or  effecting  its  complete  merger,  because  keeping  a  small  portion of  it  separate  from  the  salary  enables  it  to  be  increased  or  decreased  with the  rise  or  fall  of  prices.
17.  It  will  be  seen  that  the  demand?  made  by  the  workmen,  parti- cularly  those  who  are  members  of  Parties  No.  2  and  3  are  very  large. They  do  not  appear  to  me  to  bear  any  relation  to  the  actual  rise  in  the cost  o"f  living  nor  to  the  comparatively  greater  profits  earned  by  the Corporation.  I  may  emphasise  this  point  by  relating  briefly  the  history of  the  demands  regarding  salary  scales  since  1959  when  a  reference  to the  Committee  of  Arbitration  was  made  by  an  agreement  between  the Corporation  and  Party  No.  2  on  April  1,  1959.  At  that  time  the  lowest salary  was  that  of  the  female  worker  whose  grade  was  Rs.  26- -2—36. In  addition  to  this,  there  was  a  dearness  allowance  of  Rs.  58/-.  The next  grade  was  that  of  a  cleaner,  loader,  peon,  chowkidar,  etc.  These workmen  are  now  classed  in  Grade  I.  Their  salary  scale  at  that  time was  Rs.  39—3—54—4—66  for  a  sweeper  and  Rs.  39—3—57—4—73  for  a peon  and  a  loader  and  Rs.  39—3—54—4—74  for  a  chowkidar.  In  addition to  this,  there  was  the  dearness  allowance  payable  at  the  different  grades. The  minimum  pay  of  peons,  chowkidars,  cleaners  was  thus  Rs.  97/-.  At that  time  these  workmen  demanded  a  basic  pay  of  Rs.  50—3—59—4—75 —5—90.  In  addition  to  this,  they  claimed  dearness  allowance?  ^t  the following  rate:
Rs.  40/-  or  50  per  cent  of  the  basic  pay  whichever  is  higher  plus Rs-  2-8-0  Tor  every  rise  of  10  points  in  the  cost  of  living index  beyond  250.
In  April  1959  when  the  Arbitration  Committee  was  appointed  as  a result  of  an  agreement  between  the  parties,  the  cost  of  living  index  wa.i 400  (base  June  1934=100)  as  indicated  in  Exhibit  U-III/23  which  is  in extract  from  the  Labour  Gazette  of  February  1965  (page  766)  and  is reproduced  below.

EXHIBIT  U-III/23
C\
Source  :  Labour  Gazette  Feb.  '65
Page  766.
T H E
No-
Average
April
August
De- cembei
Jan.
June
May
Year
Sept. October
Feb.
July
vember i
March
420
401 400 406
418
422
412
420
399
413
39*
1959
427 424
G A Z E T T E
420
41 a
421
422
1960
421
421 418
+21
414
419
423
4^3
O F
420
436
1961
431
428
438
419
43i 433
423
437
435
I
434 434
N D 436 438
450
1962
440
446
448
439 443 447
444
439
454
445
I
A
440
448
1963
438
44S
483 43 R
446
437
437
449
453
454
454
1964
516
526 •529
496
4S5
538
4S9
499 5ii
531
497
543
543
543
1965
53 S
E X T R A O R D
I
N A R Y
[
P A R T
I I
—
 
2 8 5

286  THE GAZETTE OF INDIA EXTRAQKDINARY  [PART II—
Therefore,  the  lowest  pay  demanded  was  Rs.  50+40+37.50  making  t total  of  Rs.  127.50.  Shri  Vyas  after  considering  the  matter  in  great detail  and  basing  his  opinion  upon  the  need-based  wage  came  to  the  con- clusion  that  the  lowest  pay  should  be  Rs.  124, i.e.  Rs.  114 basic  and  Rs. 10 dearness  allowance.  Before  Shri  Vyas  could  give  his  award,  Party  No. 2 came  to  a  settlement  with  the  Corporation.  As  a  result  of  the  settle- ment,  a  minimum  salary  of  Rs.  123  was  fixed  which  was  made  up  of Rs.  50  basic  pay  and  Rs,  73  dearness  allowance.  The  demand  for  higher salaries  was  proportionately  greater  and  the  settlement  did  not  fully concede  the  demand.  The  settlement,  however,  benefited  the  workmen to  a  considerable  extent  and  Shri  Vyas  was  of  the  opinion  that  the  Cor- poration  had  been  compelled  to  yield  to  the  workmen  against  the  dic- tates  of  wisdom.  This  is  what  he  said  about  the  matter:
"The  pressure  thus  brought  by  the  Union  upon  the  Management appears  to  have  been  rjesisted  by  the  Management  for  some- time,  but  ultimately  under  the  coercive  measure  of  a  threat  or intimidation  of  a  lightning  strike,  it  seems  to  have  succeeded with  the  result  that  now,  quite  late  in  the  day—indeed  after my  award  was  ready  and  was  being  typed  for  being  forwarded to  Government—we  have  the  ratification  of  the  four  Arbitra- tors'  Agreement  by  the  Management.  Industrial  peace  is  cer- tainly  a  most  desirable  and  an  excellent  thing  to  have;  but  on the  other  hand,  pressure,  coercion  and  threats  should  also  not be  encouraged  to  traverse  beyond  reasonable  and  rational bounds."
Shri  Vyas  further  observed:
 
"It  is  my  fully  considered  opinion  that  if  there  is  any  case  in  which merits  are  sacrificed  to  an  intimidation  of  an  industrial  unrest and  in  which  the  Management  has  by  sheer  stress  of  circum- stances  felt  obliged  to  honour  a  commitment  into  which  it  was landed  by  its  representatives  on  the  Committee  of  Arbitration who  had  no  authority  or  directive  from  the  Management  to enter  into  any  such  agreement,  it  is  this  case.  If  there  is  any case  in  which  decisions  on  merit  on  the  various  demands,  after the  majority  of  the  demands  were  fully  heard  and  investigated on  merit  during  the  course  of  the  hearings  which  lasted  for 61  days,  have  been  sought  to  be  stifled  by  the  Union  so  that they  might  not  see  the  light  of  thj&  day,  it  is  this  case.  As  I have  said,  industrial  peace  is  doubtless  an  admirable  objective worth  striving  for  everytime  and  all  the  time.  It  is  essential for  the  stability  and  equilibrium  of  the  society  and  for  the contentment  of  the  humanity.  But  even  a  good  thing  has  its own  limitations.  If  industrial  peace  can  be  secured  by  a  reason- able,  rational  and  legitimate  exercise  of  bargaining,  persuasion and  even  pressure,  it  should  certainly  be  striven  for.  But  if pressure  goes  beyond  reasonable  bounds  and  assumes  the  form of  threat,  intimidation  and  coercion,  then  a  question  must  arise sooner  or  later,  sometime  or  other,  at  some  stage  or  other  for the  serious  thought  by  the  thinking  elements  in  the  country  how far  the  forces  of  threat  and  intimidation  should  be  permitted for  encouraged  to  drown  the  merits  of  the  disputes  and dominate  the  field  of  industrial  relations."

Sic.  3(11)]  THE  GAZETTE  OF  INDIA  EXTRAORDINARY  287
Shri  Vyas  was  convinced  that  the  settlement  with  the  Corporation  pend- ing  the  arbitration  was  a  triumph  of  threat  and  coercion  over  reason  and merit,  and  at  the  conclusion  of  his  report  he  gave  expression'to  the following  sentiments:
"We  are  standing  in  the  vestibule  of  a  new  age  in  which  we  must do  our  best  to  lift  the  scourge  of  poverty  and  make  human misery  obsolete.  This  cannot  be  done  without  strengthening our  economic  resources.  Strengthening  of  economic  resources cannot  be  done  without  industrialisation;  and  industrialisation would  remain  only  a  dream  if  the  workers  pitch  the  interests of  their  own  individual  well-being  so  high  as  to  stifle  the industry.  True,  the  workers  as  much  as  the  employers  have a  right  to  walk  the  earth  with  grace,  with  dignity  and  pride. True,  they  together  with  the  employers  constitute  a  great human  family;  but  they  (workers)  must  realise  that  if  they cripple  the  industries  by  their  exhorbitant  demands,  it  would be  making  it  more  difficult  for  the  country  to  emerge  into • economic  independence  and  afnuonce."
18.  I  have  taken  the  liberty  to  quote  the  above  passages,  not  because, with  great  respect  to  Shri  Vyas,  I  subscribe  to  all  the  noble  sentiments expressed  by  him  but  because  they  indicate  clearly  the  effect  which  the settlement  had  upon  Shri  Vyas's  mind.  He  was  firmly  of  the  convic- tion  that  the  demands  made  by  the  workmen  were  excessive  and  that they  were  not  entitled  to  any  more  than  what  he  was  awarding  after  a due  consideration  of  all  the  factors  which  must  be  taken  into  account for  determining  the  wage  scales  of  the  workers.  The  settlement  con- ceded  the  demands  almost  in  1heir  entirety,  and  Shri  Vyas  thought  that the  Management  of  Air  India  had  conceded  far  more  than  it  should  have in  reason  and  consistently  with  iis  financial  capacity.  Be  that  it  may, the  Corporation  has  borne  the  additional  burden  undertaken  in  1960 without  showing  any  signs  of  having  been  crippled  or  even  weakened. On  the  other  hand,  it  has  continued  to  progress  and  to  increase  its  profiis. Participation  in  the  prosperity  of  the  industry  imbues  in  the  workmen a  feeling  of  belonging  and  acts  as  an  incentive  to  greater  effort  leading to  greater  productivity.  Though  it  has  been  said  that  in  India  higher wages  do  not  always  lead  to  greater  productivity,  I  am  not  so  pessimis- tic  as  to  undervalue  the  capacity  or  the  integrity  of  Indian  workmen. A  person  who  feels  that  ho  is  being  underpaid  can  never  put  the  best into  his  work.  The  vicious  mind  which  shirks  work  with  every  rise  in wages  is  a  rare  phenomenon,  and  simply  because  in  the  opinion  of  some economic  experts  productivity  in  India  has  not  always  increased  with rise  in  wages,  we  cannot  refuse  to  compensate  workmen  for  the  rise  in prices.  There  is  no  doubt  that  prices  have  risen  since  1959  when  the reference  to  arbitration  was  made.  The  cost  of  living  index  in  1959  was 400  whereas  in  January  1965  it  was  542.  Nevertheless,  it  does  seem  to me  that  the  demands  which  have  been  made  by  the  workmen  are  in excess  of  what  is  warranted  by  the  rise  in  prices  since  the  wage  scales were  fixed  by  mutual  agreement  and  by  the  slightly  increased  prosperity of  the  Corporation,  The  following  table  gives  some  instances  of  the manner  in  which  the  original  demands  as  made  in  their  charter  were later  augmented.  This  is more  particular  true  of  Party  No. 2.

288  THE  GAZETTE  OF  INDIA  EXTRAORDINARY  [PART II—
GROUP  I.
PARTY  NO.  2.
Item  1.  Grades and  Scales of  Fay
Designation
Existing  scales
Charter  of  Demand Statement  of  claims
80-10-110-15-170
Cleaner  . . ..
50-3-59-4-75-5-90
140-10-170-15-215-
20-315.
70-5-100-10-120 100-10-150-15-195
Head  Cleaner  .
150-10-180-15-225-
20-345.
140-10-I50-15-225- 180-15-225-20-305- 300-20-320-35-395- Stock  Verifier
20-365.
30-575-50-825.
25-430-50-730.
180-15-225-20-305-
Cashier  . . .. 165-15-225-20-345-
425-30-375-50-975.
25-430-50-730.
25-395.
180-15-225-20-345- 275-25-450-50-850.
Chief  Teleprinter  Operator
425-3O-575-5O-975.
25-420.
275-25-450-50-850
Planning  Assistant  .
500-50-1000-100-
••
1200.
325-25-500-50-900
275-25-55O
500-50-1000-100- Assistant  Security  Officer  .
1200.
350-25-450-50-1050
Works  Inspector  (Plant
500-50-1000-100-
••
1200.
Engg.).
Item  4—Dearnesa  Allowance.—Demanded increase  of  50  per  cent  in  the Charter  and this was inflated  in the  Statement  to  100 per  cent for  first 200 and thereafter  slabs 50 • 25 and  12 per cent with  a maximum of 650.
The  union  at  a  later  stage  introduced  new  demands, e.g.
item  36—Children  Allowance—Entirely  new  demand  in  the  Statement.
Item  37—Driving  Allowance—Entirely  new  demand  in  the  Statement.
Item  43—Radio  Telephone  Allowance—Entirely  new  demand  in  the  State-
ment.
Item  51—Special Travelling Allowance—-Entirely new demand in the State-
 
ment. 19. The  demand  for  the  lowest  grade  made  by  Party  No. 3 is  another clear  instance  in  point.  This  demand  is  for  a basic  salary  of  Rs. 100 and dearness  allowance  of  Rs.  125,  that  is  a  total  salary  of  Rs.  225.  The argument  advanced  is the  rise  in the  cost  of  living, and  this was sought  to be  supported  by  Exhibit  U-III/20  which  gives  a  calculation  of  the  need- based  wage.  According  to  this  calculation,  the  minimum  pay  which would  provide  full  compensation  for  the  present  price  level  is Rs, 291.20. There  is  here  a  clear  inconsistency  because  if  the  absolute  minimum wage  upon  which  the  worker  and  the  family  can  subsist  is  Rs.  291.20, then  Party  No. 3 must  be  held  guilty  of  dereliction  of  duty  in  making  a demand  of  only  Rs.  225.  On  the  other  hand,  members  of  this  party having  agreed  to  the  rate  of  Rs.  123  in  May  1960  when  the  consumer price  index  was  421 cannot  in  reason  demand  even  Rs. 225 in  September 1964 when  their  statement  of  claims  was  put  in  and when  the  consumer

SEC.  3(ii)j  THE  GAZETTE  OF  INDIA  EXTRAORDINARY  289.
index  was  no  more  than  531, that  is,  only  26  per  cent  higher  than  in  May 1960.  The  demand  was,  however,  made  in  July  1964  when  the  consumer price  index  was  only  526, that  is, 25 per  cent  higher  than  in  May  1960.  On this  basis,  the  demand  should  have  been  for  Rs.  153.6  (Rs.  123 plus  Rs. 30.6 representing  25  per  cent  of  Rs.  123).  The  argument  holds  good  for  the demand  at  all  stages  of  the  pay  scales  claimed.  In  1959  when  the  Com- mission  of  Enquiry  on  Emoluments  and  Conditions  of  Services  of  Central Government  employees  made  its  report,  the  Commission  recommended  a salary  of  Rs.  120.  It  is  clear  that  in  the  opinion  of  the  Commission,  a workman  could  live  and  support  his  family  on  a  total  of  Rs.  120.  Increas- ing  the  salary  proportionately  to  compensate  a  28  per  cent  rise  in  the cost  of  living  in  July  1964,  the  salary  should  be  no  more  than  Rs.  153 as  I  have  already  observed  in  Chapter  V.  Even  this  figure  is  more  than the  need-based  wage  and  certainly  more  than  the  minimum  wage. Therefore  by  increasing  the  minimum  salary  above  the  figure  of  Rs.  153/-, we  are  moving  towards  a  living  wage  and  certainly  securing  a  fair  wage. The  question  simply  is  what  should  be  the  quantum  of  increase.  The increase  must  clearly  depend  upon  the  financial  capacity  of  the  Corpora- tion  to  pay.  Also  the  repercussion  which  the  increase  may  have  on other  industries  must  not  be  ignored.  The  Corporation  by  entering  into an  agreement  with  parties  No.  4  and  5  has  conceded  its  ability  to  bear an  increased  burden  to  the  extent  of  between  20  and  30  per  cent  of  the salary  of  its  Pilots  and  Ground  Engineers.  It  may  be  that  the  Corpora- tion  was  coerced  into  making  this  concession  but  it  seems  to  me  quite clear  that  the  additional  burden  is  in  no  way  crippling  for  otherwise  the Corporation  would  not  have  seen  its  way  to  assuming  it  even  under  the greatest  coercive  pressure.
20.  The  original  scale  of  the  senior  captains  under  the  agreement  of April  22,  1960,  which  was  in  operation  when  this  reference  was  made, was  Rs.  1300-100-1800.  In  addition  to  this,  senior  captains  received  a  jet allowance  of  Rs.  650,  efficiency  bonus  of  Rs.  100,  command  pay  of  Rs.  200 and  radio  telephone  allowance  of  Rs.  100.  There  was  also  a  navigation allowance  of  Rs.  100  and  overseas  operations  allowance  of  Rs.  400.  The dearness  allowance  was  on  a  sliding  scale,  increasing  from  Rs.  277  at  the lowest  pay  of  the  scale  to  Rs.  300  at  the  highest.  This  does  not  take  into account  the  travelling  allowance  that  is  paid  to  the  pilots  on  duty  abroad for  short  periods.  The  pilot,  or  an  average  therefore,  was  paid  a  salary starting  with  Rs.  3127  and  ending,  when  he  reached  the  maximum  of  the grade  at  Rs.  3,650.
21.  As  the  result  of  the  agreement  arrived  at  on  July  26,  1965,  the basic  salary  became  Rs.  1500-100-2000.  The  jot  allowance  was  increased by  Rs.  350,  efficiency  bonus  by  Rs.  100,  command  pay  by  Rs.  100  and radio  telephone  allowance  by  Rs.  100.  Owing  to  the  rise  in  the  scale, the  dearness  allowance  which  at  the  lowest  salary  in  the  pcale  was Rs.  277  is  increased  to  Rs.  300.  The  senior  captain,  therefore,  now  starts with  a  total  salary  of  Rs. 4,000  and  rises  to  the  maximum  of  Rs. 4,500.  As such,  the  agreement  has  increased  the  senior  captain's  salary  by  almost 28  per  cent.  If,  however,  the  increase  in  jet  allowance  is  left  out  of account  because  of  the  fact  that  jets  had  not  been  fully  commissioned  in April  1960,  when  the  previous  grades  and  allowances  were  fixed,  then the  increase  is  approximately  17  per  cent.
 
22.  The  captains  or  first  officers  have  also  been  benefited  by  the  agree- ment  of  July  26,  1965 but  in  their  case  the  increases  have  been  less.  Their original  grade  was  Rs.  1050-100-1450.  In  addition,  they  received  a  jet

290  THE  GAZETTE  OF  INDIA  EXTRAORDINARY  [PAHT II—
allowance  of  Rs.  400  overseas  operations  allowance  of  Rs.  275,  R/T  al- lowance  of  Rs.  100,  navigational  allowance  of  Rs.  100,  clearness  allowance varying  from  Rs.  232  to  Rs.  272  and  efficiency  bonus  of  Rs.  100.  Their total  emoluments,  therefore,  ranged  between  the  minimum  of  Rs. '2,257 and  the  maximum  of  Rs.  2,697.  Under  the  agreement  of  July,  26,  1965, the  grade  has  been  increased  to  Rs.  1050-100-1650.  The  jet  allowance  has been  increased  to  Rs.  600,  efficiency  bonus  to  Rs.  200  and  R /T  allowance also  to  Rs.  200.  The  dearness  allowance  varies  from  the  minimum  of Rs.  242  to  Rs.  300.  The  total  emoluments  of  a  captain  (first  officer), therefore,  now  rises  from  the  minimum  of  Rs.  2,667  to  Rs.  3,325  exclusive of  the  minor  items  of  travelling  allowance  and  daily  allowance  when abroad.  The  increase  in  the  pilots'  pay,  therefore,  has  been  between 18  per  cent  and'  23  per  cent.
23.  In  the  case  of  aircraft  maintenance  engineers,  the  agreement  of October  15,  1965,  has  resulted  in  increases  of  their  total  emoluments  of between  10 per  cent,  and  36 per  cent.  The  original  scale of Assistant  Super- intendents  was  Rs.  1000-100-1500  whereas  the  new  scale  is Rs.  1200-100-1700 together  with  a  conveyance  allowance  of  Rs.  100.
24.  Grade  I  Aircraft  Maintenance  Engineers  were  originally  in  the scale  of  Rs.  750-50-1000-100-1300.  Their  new  grade  under  the  agreement is  Rs.  1000-100-1500  and  they  are  also  paid  a  conveyance  allowance  of Rs.  50.
25.  Grade  II  Aircraft  Maintenance  Engineers  were  in  the  scale  of Rs.  600-50-900-50-1000  and  their  new  scale  under  the  agrerment  is Rs.  750-50-1000-100-1200  and  a  conveyance  allowance  of  Rs.  50  is  paid  to them.
26.  The  scale  of  Grade  III  Aircraft  Maintenance  Engineers  was "Rs.  350-25-450-50-600  and  their  new  grade  is  Rs,  400-25-450-50-800  and there  have  been  corresponding  increases  in  the  dearness  allowance because  of  the  increase  in  the  basic  salary.
27.  It  may,  therefore,  be  said  that  generally  speaking  the  Aircraft Maintenance  Engineers  are  benefited  to  the  extent  of  between  10 per  cent and  36  per  cent  as  a  result  of  the  agreement  arrived  at  between  the parties.
28.  A  consequence  of  these  two  settlements  is  that  the  other  workmen of  the  Corporation  expect  to  get  similar  increases  in  their  salaries,  both because  they  feel  that  the  Corporation  will  be  able  to  boar  the  pxtra burden  of  these  increases  and  also  because  they  wi]l  resent  being  sub- jected  to  an  invidious  distinction  by  not  being  awarded  similar  benefits. It  has  been  argued  that  the  case  of  pilots  and  engineers  is  distinct  from the  case  of  other  workmen  because  they  are  specialised  and  technical individuals  who  have  a  very  high  market  value.  But  even  among Parties  No.  2  and  3,  there  are  skilled  persons  who  feel  that  they  are entitled  to  similar  increases  for  the  same  reason.  They  have  cited  in support  of  their  case  instances  where  even  unskilled  workers  are  paid higher  salaries.  Therefore  the  skilled  workers  or  the  clerical  staff  who though,  in  no  way,  specially  trained  for  work  in  the  Air-India  Corpora- tion  feel  that  as  members  of  the  same  body  corporate,  they  are  entitled to  be  treated  as  fairly  and  as  liberally  as  the  pilots  and  engineers  who though  standing  In  classes  by  themselves,  are  their  colleagues  and  co- -workers.

tic.  S(il)]  THE  GAZETTE  OF  INDIA  EXTRAORDINARY  2gi
2ft.  At  this  stage,  I  may give  a  few  facts  and  figures  which  are  rele- vant  to  the present  enquiry.  The following  table  gives  the total  wage bill  of  Air-India  from  the  years  1958-59  to  1963-64:
Percentage Year
Account  Head Total
increase in the  Number of  employees
Total number of employees as on 31st  March
Percentage increase in wage  cost over the previous year
over the previous  year
Rupees
2,42,80,702
4558
1958-59  •
••
•• Pay,  Allowances &  Provident Fund  Contri- butions.
4821
5'4? 13 '82
5437 5S02
1173 29'02 I 6 36
3,71,28,276
3.50,02,704
4,07,31,01s
4,41,00,416
1959-60  .                    Do.
1960-61  .                    Do.
1961-62  .                    Do.                                                   5-74
1962-63  .                    Do.                          597°                     2-83
1963-64  .                    Do.                         6239                      4-50

5,I7J95.I97
8-27 17-45
The  total  wage  bill  is  thus  seen  to  be  5-18 crores.  Council  for the Corporation  has  drawn  my  attention  to the document  M-45 which  gives the  additional  burden  of  meeting  the demands  of  all parties.  The total comes  to Rs. 3 '867  crores  made  up of the various  demands  as  follows:™
Party  No. 2—Rs.  3-26 crores. Party  No. 3—Rs.  1 • 25  crores. Party  No. 4—Rs.  -22 crores. Party  No. 5—Rs.  -25 crores. Party  No. 6—Rs.  7,34,000. Party  No. 7—Rs.  5,79,000.
Since  the demands  of  Party  No. 3 are included  in  Party  No. 2, this  iLem should  be excluded  when  adding  the various  demands  to obtain  the total. It  will  be seen  that  if  the demands  of all the parties  are met fully,  there will  be  a  very  great  increr.se  in  the  operational  expenses.  M-44 is  a statement  showing  the  total  wage  burden  of  the  existing  scales  of pay and  the scales  of pay and dearness  allowance  as demanded  by the  work- men.  The statement  may be  summarised  as  follows:
Parties
Additional burden  of pay and D.A.
Existing burden of scale of pay plus  D.A.
1
2
3
Rs.
Party  N o.  2  . . . . ..
Rs. 1,64,42,000
Party  N o.  3
Party^No.  4
Party  N o.  5
Party  N o.  6
Party  N o.  7
.  IJ44.34.OOO 15,28,000 21,00,000 6,65,000 6,98,000
 
86,00,000 48,68,000 3,84,000 4,34,000 1,24,000 89,000

292  THE  GAZETTE  OF  INDIA  EXTRAORDINARY  [PART II—
30.  I  may  now  give  the  results  of  the  agreements  arrived  at  between the  pilots  and  the  engineers,  i.e.  Parties  4 and  5.  According  to  the  Corpo- ration,  the  agreements  which  have  been  arrived  at  between  the  pilots  and the  aircraft  maintenance  engineers  i.e.  Parties  4  and  5,  have  imposed  a heavy  burden  upon  its  finances.  According  to  the  statement  (Exhibit M-45),  the  total  demands  of  Party  No.  4 would  have  entailed  an  additional expense  of  Rs.  22,11,720.  The  total  burden  actually  assumed  by  the  Cor- poration  by  the  agreement  of  July  26,  1965,  is  alleged  to  be  Rs.  14,84,000 {vide  Exhibit  M-63).  This  amount  includes  the  additional  burden  upon all  counts  i.e.  provident  fund,  lay-over  allowance,  etc.
31.  In  the  same  manner,  the  total  demand  of  Party  No.  5  is  alleged to  be  Rs.  24,19,803  (vide  Exhibit  M-45)  and  the  actual  burden  sustained by  the  agreement  of  October  15, 1965, is  Rs.  6,09,800  (vide  Exhibit  M-112).
32.  It  seemed  to  me  at  first  that  these  figures  were  somewhat  inflated and  the  method  of  calculation  given  by  the  Corporation  was  not  the  actu- arial  method.  However,  the  figures  were  not  contested  by  the  parties  and I  mention  them  here  in  order  to  show  the  divergence  "between  the  claims of  the  unions  and  the  plea  of  the  Corporation.
33.  The  Corporation  also  claims  that  it  spends  large  amounts  of  money each  year  on  the  welfare  benefits  of  its  workers.  In  the  year  1963-64.  for instance,  a  sum  of  Rs.  11,30,745  was  spent  as  the  following  table  (Exhibit M-53)  will  show:

03
EXHIBIT  M-S3
Statement  showing average  expenditure  per  employee incurred  by  Air-India  on welfare  amenities
Net  amount  of  expenditure
Average  No. of Average  expenditure per  employee  per
month
employees during  1963-64
incurred  on  welfare  amenities during  1963-64
ffi
Rs.
Rs.
o
( i)  Welfare  expenses  :
(3,00,000*  outside  Tnrjiai
(a)  Medical  expenses  at  Bombay  and Outstations  . 3,30,123
6101
15-44
26,391
(&) Expenses  on Sports  (including  depreciation  on equipment)  . . . . . ..
El o
55,218
(c)  Expenses  on Christmas  Day and other  Celebra- tions  . . . . . . ..
2 >
(2,000  *in  Bombay)
(d)  Other  expenses  such  as tea, refreshments,  free/ concessional  passages  to  staff  on leave, e tc
1^7,393
(e)  Cash  Awards  to  Staff
8,474
5=87,599
(2)  Works  Canteen
>-3 SI > O S) O
i,8o,955
hH
(3)  Subsidised
IJ43J2S7
1,12,462
(4)  Medical  Clinic
I
(5)  Staff  Housing  Colony
199,936
(6)  Gram  shop  . . . . . . ..
f  1 *SI k, 6,5OS!
II.3OJ745
,  KI
*These  figures  were  not included  in the exhibit, but were  indicated  during  the course  of arguments.

294  T H i3  GAZETTE  OF  INDIA  EXTRAORDINABY  [PART II—
34. M-47  is  a  statement  showing  the  ratio  of  wage  costs  to total  costs  in a  number  of  industries  including  Air-India  and  the  Indian  Airlines  Cor- poration.
EXHIBIT M-47
Statement  showing  the  ratio  of  Wage  Costs  to  Total  Cost*  In  Air-India,  Indian
Airlines  Corporation  and  different  undertakings  In  Private  Sector  during  the  year
1963-1964.
Name  of  Organization
Wage Cost Sr. No.
Total Cost
Pcrcenta of  Col.ge4 to  Col.  3
Rs.
Rs.
I
2
5
4
3
(In  lakhs)
1.
25-61 Air-India  . . . . . ..
*588-i8
2293-72
3. Indian  Airlines  Corporation
31-17
1863-75 580-95
Greaves  Cotton  &  Co.  Ltd.
1108-02 65-80 3-
5 94
8  02 Voltas  Ltd.
-  3667-87 294'07 4-
140'89 Tata  Oil  Mills  Co.,  Ltd.  .  .  .  "  .
1360-56
1036 5-
6. Delhi  Cloth  and  General  Mills  Co.  Ltd.
1208
5315-21 641-94
1168-40
Laracn  &  Toubro  Ltd
145'41 7-
12-45
8. Guest,  Keen,  Williams,  Ltd.
2548'43 376-35 14  77
Associated  Cement  Companies,  Ltd.
668-86 18-18 9-
3679'55
10,
217-05
1140-03
19-04 Indian  Oxygen,  Ltd
NOTE  :  1. 1 Wage  Cost  indicated  under  Col.  4 includes  Salaries,  Allowances  and  Em- ployer's  Contribution to  Provident  Fund  or  Pension  Fund,  as  the  case  may be.
*2.  The amount  of Wage Cost in Air India indicated under  Col. 4 includes charges, for  Technical/Traffic  handling  by  other  operators  as  per  Items  N03.  2(e)  and 3(/)  of  the  Profit  and  Loss  Account  for  the  year  ended  31st  March,  1964— Page  26  of  the  Annual  Report  of  Air  India  1963-1964.
35. It  will  be  seen  from  this  table  that  the  percentage  of  wage  cost  and total  cost  is  the  highest  in  the  Indian  Airlines  Corporation,  and  the  per- centage  of  25-61  in  Air-India  is  much  higher  than  in. any  of  the  industries mentioned  in  the  statement,  the  next  highest  being  Indian  Oxygen  Ltd. with  a  percentage  of  19-4.  The  conclusion  that  might  well  be  drawn from  Exhibit  M-47  is  that  the  Air-India  Corporation  pays  high  wages  to its  workmen  and  its  wage  bill  forms  a  very  larg?  portion  of  its  operating expenditure.
30.  Exhibit  M-35  is  another  instructive  statement.  It  shows  the  average per  capita  annual  earnings  of  factory  workers  drawing  Rs.  200  or  less  per month  in  various  industries  including  Air-India.

SEC.  3(ii)]  THE GAZETTE  OF  INDIA  EXTRAORDINARY  295
EXHIBIT M-35
S t a t e m e nt  s h o w i ng  a v e r a ge  per  c a p i ta  a n n u al  e a r n i n gs  of F a c t o ry  W o r k e rs  d r a w i ng
R s.  2 00  or l e ss  p er  m o n th  In v a r i o us  I n d u s t r i es  I n c l u d i ng  A i r - I n d ia
1961
1962 I n d u s t ry
1 9 59
Rs.
R8.
Rs.
•
T e x t i l es
1 3 59
1574
*
C o t t on  m i l ls  . . . . . . ..
1637
1 4 87
1057
*
1092
J u te  m i l ls  . . . . . . ..
P a p er  a nd  p a p er  p r o d u c ts  . . . ..
1212
1314
1254
1Z84
R u b b er  a nd r u b b er  p r o d u c ts  . . . ..
1402
1491
C h e m i c a ls  a nd c h e m i c al  p r o d u c ts  . . ..
I4IO
1393
1447
M a t c h es  . . . . . . . ..
1218 . . *
1570
P r o d u c ts  of p e t r o l e um  a nd C o al  . . ..
2246
1S55
1797
N o n - m e t a l l ic  m i n e r al  p r o d u c ts  . . . ..
*
981
974
1527
*
C e m e nt
B a s ic  m e t al  i n d u s t r i es  . . . . ..
1532
1506
1555
M e t al  p r o d u c ts  , . . . . .,
1278
1367
1315
+
1293
M a c h i n e ry  e x c e pt  e l e c t r i c al
I4I8
E l e c t r i c al  m a c h i n e r y,  e t c.  .  •
1537
1493
1467
T r a n s p o rt  e q u i p m e nt  . . . . ..
1485
1548
I544
E l e c t r i c i t y,  g as a nd  s t e am  . . . ..
1572
1576
1549
A ll  I n d u s t r i es  ( i n c l u s i ve  of  o t h er  i n d u s t r i es  n ot c o v e r ed  a b o v e)  .  . . . . ..
1408
1333
1459
A i r - I n d ia  . . . . . . . ..
1966
2228
2027
Source :  Handbook  of  Labour  Statistics  published  by  the  Employer's  Federation  of
India  (P.  20).
Statistical  Outline  of  India  published  by  the  Tata  Industries  Private  Ltd. (P.  39).
The  Indian  Labour  Year  Book  (p.  44)
•Information  not  available.
 
The  significance  of  this  statement  is  that  Air-India  is  paying  good wage:: to its lower  paid  workers  as compared  with  other  industries.  This fact  is further  emphasised  by a study  01 a statement  M-48 which  gives  a detailed  statement  of th,3 wages  drawn  by various  categories  of  workers in  Air-India  and the other  industries.  The comparison  of  the  industries shows  that  except  for one or two instances,  Air-India  pays  much  higher wages  to similar  categories  of  workmen.  For instance,  a  cleaner  in Air- India  gets  a minimum  salary  of Rs. 138 and a maximum  salary  of Rs.  209 whereas  in many  of the public  sector  industries  such  as Atomic  Energy

296  THE GAZETTE  OF INDIA  EXTRAORDINARY  [PART II—
Establishment,  Bombay  Municipal  Corporation,  Civil  Aviation  Depart- ment,  Indian  Oil  Corporation,  the  minimum  salary  is  no  more  than Rs.  120  or  Rs.  120-50.  In  Hindustan  Steel  Ltd.,  the  minimum  salary  is Rs.  90.  There  are  4 industries—2  in  the  public  sector  and  2 in  the  private sector—in  which  the  minimum  salary  of  a cleaner  is higher  than  the  salary paid  by  Air-India.  But  in  all  these  cases,  the  maximum  salary  of  Air- India  is  higher.  Tha  two  industries  in  the  public  sector  are  Bombay Electric  Supply  and  Transport  Undertaking  where  the  cleaner  draws  a minimum  salary  of  Rs.  163'70  and  a maximum  salary  Rs.  203'7.  Mazagaon Duck  Ltd.  in  which  the  minimum  salary  of  the  cleaner  is  Rs.  164-84  and the  maximum  salary  Rs.  211 • 15.  The  two  private  sector  undertakings  are Premier  Automobiles  with  a  minimum  salary  of  Rs.  160-60  and  a  maxi- mum  salary  of  Rs.  204-30  and  Automobile  Products  of  India,  Ltd.,  where the  cleaner  draws  a  minimum  salary  of  Rs.  163-20  and  a maximum  salary of  Rs.  198-82.  In  ths  Textile  Industry  the  wages  are  slightly  higher,  but there  the  salary  drawn  by  a  cleaner  is  a  uniform  wage  of  Rs.  171-07  and, therefore,  there  is  no  apt  comparison,  A  Tracer  in  Air-India  gets  a  mini- mum  salary  of  Rs.  199  and  maximum  of  Rs.  281. Mazagaon  Dock  Ltd.  is the  only  industry  which  pays  a  higher  salary  viz.,  a  minimum  of  Rs.  220 and  maximum  Rs. 440.  All  the  remaining  10 industries  mentioned  in  this list  pay  the  Tracer  less  than  Air  India.  A  Typist  in  Air-India  draws  a minimum  salary  of  Rs,  199  and  maximum  salary  of  Rs.  395.  Of  the  23 business  concerns  listed  in M-48  (pages  1, 5 and  7)  there  are  some  that  pay a  higher  starting  salary  but  a  lower  maximum  salary,  and  5 which  pay  a higher  starting  salary  and  a  higher  maximum.  Therefore,  out  of  22 indus- tries  with  which  a  comparison  had  been  made,  in  only  5 concerns  is  the Typist  paid  a  higher  salary  throughout  than  in  Air-India.  These  5 are  ths Bombay  Electric  Supply  and  Transport  Undertaking,  Mazagaon  Dock  Ltd. and  the  State  Bank  of  India  in  the  public  sector,  Premier  Automobile Ltd.,  Bombay  and  Richardson  and  Cruddas  Ltd.,  Bombay  in  the  private sector.  It  seems  unnecessary  to  multiply  instances  and  a  close  study  of the  voluminous  statement,  M-48,  leads  to  the  conclusion  that  Air-India  is one  of  those  industries  which  pays  high  salaries  to  various  categories  of workmen.  By  far  the  large  majority  of  industries  pay  much  lower  wages for  similar  work  don?,  The  unions  have  stressed  the  fact  that  Air-India's financial  position  is  very  sound  and  it  has  increased  its  profits  over  the ^years.  The  document  U-IJ/2  which  is  prepared  from  the  annual  state- " ments  of  the  Corporation  gives  the  operational  profits  and  the  surplus carried  to  the  appropriation  account  from  the  1959-60  to  1963-64.  The operating  profit  increased  from  Rs.  18,25,730  in  the  year  1959-60  to Rs.  3,45,44 148  in  the  year  1962-63.  In  1963-64  the  profit  increased  further to  Rs.  3,84,24,651.  There  has  been  a  slight  decrease  for  the  year  1964-65 on  account  of  the  extra  burden  imposed  by  the  Interim  Relief  granted during  these  proceedings,  The  operating  profit  for  the  last  year  was Rs.  3-62  crores,  The  total  disposable  surplus,  however,  compared  well with  the  previous  year.  The  disposable  profit  in  1963-64  was  Rs.  3-06 crores  and  during  the  year  1964-65  it  was  Ra.  3-07  crores.  In  the  year 1965-66,  a  further  improvement  cannot  be  anticipated  because  expenses have  been  increased  by  the  additional  burden  in  salaries  and  allowances imposed  by  the  agreements  of  the  pilots  and  engineers.  The  position,  how- ever,  is  still  satisfactory  and  it  is  this  seeming  affluence  which  prompts the  workers'  unions  to  make  demands  for  substantial  increases  in  their salaries.
 
37.  After  considering  all  the  factors  which  must  have  a  bearing  on wage  structure,  I  have  come  to  the  conclusion  that  the  following  scales  of

33EC. 3(li)i]  THE 'GAZETTE  OF INDIA EXTRA-ORDINARY  297
pay  and  grades  are  not  only  just  but  generous.  I  also  feel  that  the  Cor- poration  has  the  capacity  to  meet  this  additional  liability.  The  general increase  in  the  wages  in  the  new  scales  set  out  below,  is  as  uniform  as  it is possible  to  make  it,  and  with  the  exception  of  a few  unavoidable  but  no more  than  apparent  "inconsistencies,  the  benefits  received  by  the  various workmen  are  of  the  same  measure.  I  have  not  considered  it  necessary  to introduce  the  new  grades  suggested  by  Parties  No. 2 and  3 because  there is  no- justification  for  changing  the  pattern  which  was  not  only  agreed  to by  the  parties  in  I960  but  was  obviously  evolved  after  a  great  deal  of •deliberation  over  the  nature  of  the  duties  performed  by  the  various categories  of  persons  and  their  position  in  the  hierarchy  of  workers.  A careful  study  of  the  present  classification  has  driven  me  to  the  conviction that  it  Is not  only  adequate  but  the  only  one  possible,  with  the  exception of  flight  engineers  who  must  be  upgraded  to  equate  with  the  flight  navi- sgaiors  for  the  reasons  I  have  already  set  out  in  Chapter  VI.
'Grade No.  1  Assistant  Cook,  Canteen  Vendor,  Chowkldar, Watchman,  Cleaner,  Female  Worker  (Canteen), Gardener,  Helper,  Handyman,  Kitchen  Boy, Loader,  Peon,  Sweeper.
Present
New
•R3.50—3—59—4—75—5—90  Rs.  IOO—5—150
38.  The  present  scale  Is  Rs. ^0—3—59--4—75—5—90  with  the  appro- priate  dearness  allowance  mentioned  in  the  Table  (Appendix  'B')  repro- duced  in the earlier  part  of this Chapter.  The new  Grade will be Rs. 100— "5—150 with  a  uniform  dearness  allowance  of  Rs.  65 up  to  the  basic  wage of  Rs.  145 and  Rs.  70 for  the  maximum  wage  of  Rs.  150.  The  minimum total  emoluments  of  a  workman  in  this  Grade  will  be  Rs.  165 rising  by increment  of  Rs. "5 every  year  to  a  maximum  of Us.  220  after  10 years. This  represents  an  increase  of  between  Rs.  38 and  Rs. 44  Dn the  salaries received  by  workmen  of  this  Grade  before  the  present  reference  was -made.  "The salaries  now  proposed  are  also higher  than' those received  by these  workmen  after  the  irtterlm  relief  was  given.  The  percentage  of benefit  varies  between  22-9  per  cent  and  34-1 per  cent.  The  following Table  sets  out  a  complete  picture  giving  the  previous  salary,  the  salary after  the  interim  relief,  the  present  position  and  the  percentage ,of  benefit •at  each  stage:
TABLE  I
Grade  No.  Categories  covered
'Present  :  'J  1  Assistant  Cook,  Canteen  Vendor,  Chowkidar, Watchman,  Cleaner,"" Female  Worker  (Canteen), New:  1  Gardener,  Helper,  Handyman,  Kitchen  Boy,  Loader,
Peon,  Sweeper.
P r" ent  scale
New  scale
100—5—150
"50—3 —-59—4—75—5—9°
1
3
10
8
3
4
9
7
"5
'Pay D.A.
D.A. Total "Increase Total
Pay
Total
Interim Relief
 
r  % IncreaseIOO
42
138
165
73
65
•  50
123
IS
34


298  THE  GAZETTE  OF  INDIA  EXTRAORDINARY  [PART  JI—
2
10
G
I
8
9
3
4
5
7
105
170
162
128
65
75
53
34
33
42
65.
132
166
175
no
56 76
34
33
43-
136
115
171
180
65
S9 77
32 35
44
120
177
141
185
78
35
65
44
31 63
80
135
190
29
182
67
43
147 35
152
2% 81
130'
188
36
71
65 195
43
200
133
42
83 158
65-
27 75
36 195
202
80
140
205
24
40
65.
85 165 37
209
172
2lO
28
87
65
38
85
37
145
179
90
150.
216
70 320
89
37
41
*3
39. It will  be seen that  the  salaries I have proposed  for  this  category of workmen  compare  favourably  with  the  emoluments  which  are  being  paid to  similar  classes  of  employees  by  business concerns  in the private  sectorr whereas, they  are far  higher  than  what  workmen doing similar  jobs in  the public  sector  are  receiving.  The  Bombay  Electric  Supply  and  Transport Undertaking,  Bombay,  and  Mazagaon  Dock  Ltd.,  Bombay,  have' perhaps the  most  liberal  poJiey  of  wage  payments  and  even  in  their  case,  the minimum  and maximum  salaries  paid  to unskilled  workmen  are less  than those  I  have  proposed.  The  minimum  total  salary  of  an  unskilled  worker of  Bombay  Electric  Supply and  Transport  Undertaking  is  R&. 163-70  per mensem  and  the  maximum  Rs.  203-70.  In  Mazagaon  Dock  Ltd.,  the corresponding figures are  Rs.  164-84 and  Rs. 211 -15 respectively,  whereas, an  unskilled  worker  in  Air-India,  will  start  his  service with  a total  salary of  Rs. 165 per  mensem  and  the maximum  of  his  grade  will  be Rs. 220 per mensem.  The  Premier  Automobiles  Ltd.,  Bombay,  pay  a  minimum salary  of  Rs.  166-60 which  is  only  slightly  above  the  minimum  proposed by  me.  But,  their  maximum  being  Rs.  204-30, is  considerably  less  than the  maximum  of  Rs.  220 which  will  obtain  in  Air-India.  In  the  case  of Reserve  Bank  of  India, the  minimum  salary  under  the  award  of  the  Na- tional  Industrial  Tribunal,  has  been  fixed  at  Rs.  170 per  mensem  for  an unskilled  worker  but  this  amount  includes  the  house  rent  allowance  of Rs.  10 which  matter  has  been  considered  separately  in  another  part  of this  chapter.  It  will,  therefore,  be  seen  that  unskilled  workers  in  this category,  in  Air-India,  will  henceforth  be  better  paid  than  their  counter- parts  In  all but  one of  the industries,  public  or  private,  listed  in  Exhibit* M-40  and  M-48, the  solitary  exception  bsing  the  Reserve  Bank  of  India.

SEC.  3(ii)]  THE GAZETTE  OF INDIA  EXTRAORDINABY  299
40.  It  will  be seen  that  in awarding  clearness  allowance,  I  have  fixed wider  slabs  and transferred  a considerable  portion  to the basic pay.  The present  basic pay has been  increased  from  Rs. 50  to Rs. 100,  but  the daarness  allowance  has been  reduced.  This  has been  done  in  order  to give some measure of additional  benefit  as has been given to the engineers and  pilots.  I have  also  taken  into  consideration  the increased  cost  of living and the capacity  of the industry  to pay.  The present  wage will be, in my view, not only a fair  wage but a living  wage and  it makes  ample allowance  for further  increases  in  the  cost  of living  index.  This  scale should  need no revision for many  years  unless  there  is a catastrophic and unanticipated  rise in prices.  If  there  is a steep  decline  in the price  of living  index, the dearness  allowance  will be liable to be reduced  and that is why I have not taken  the full-blooded  step of merging the entire  dear- ness allowance  into the salary  although  such a step might  well have  been consistent  and in  conformity  with  the practice  prevailing  in  other  coun- tries.  The following  Table  gives  the  dearness  allowance  at  the  various stages.
Plan  of salary  scale* and dearaem  allowance  for the workmen  employed by
Alr-IndU.
100—5—150—10—200—15—245—20—385—25—560—40—720—50—1320—60—1500—
100—1700
Basic   D.A.  Total Basic D.A. Total Basic D.A. Total Basic D.A. Total
 100     65    165  200  75    275  510   90   600  1170  100   1270
  5                 15
 105     65    170  215  75    290  535   90   625  1220  100    1320
 no      "5    175  230  75    305  560   90   650  1270  100    1370
                                    40
 "5      65   180   24J  75    320  600   90   690  1320  100   1420
                     20                              50
 120     65    185  265   75   340  640   90   730  1380  100   1480
 125     65    190  285  75    360  680   95   775  144°  100   1540
 130     65    195  305  80    385  720   95   815  1500  100   1600
                                    50               100
 135     65    200  325  80    405  770   95   865  1600  100   1700
 140     65   205   345  80    425  820   95   915  1700  100   1800
  145    65   210   365  80    445  870   95   965
 150     70   220   385  80    465  920   100 1020
  10                25
 160     70   230   410  85    495  970   100 IO7O

170
70
240
520
1020
1120
100
435
85
180
70
100
460
1070
1170
250
85
545
70
190
260
100
1120
1220
470
85
485

3oo  THE  GAZETTE  OF  INDIA  EXTRAORDINARY  [PART  II—
41. It will be seen from  the preceding  statement  that  there is a uniform scale  running  through  all the grades, viz. 100—5—150—10—200—15—245— 20—385—25—560—40—720—50—1320—60—1500—100—1700.  This  will  show that  a  workman  drawing  equal  salaries  will  now receive  equal  incre- ments  in their  pay scales  as also  equal  dearness  allowance.  It  will  also facilitate  the determination  of  position  in  each  scale.  The  remaining grades may now be set out without  further  explanation  except that I have made  no award  with  regard  to Captains  and Senior  Captains  represented by  Party  No. 4 and Aircraft  Maintenance  Engineers  Grades  I to III  and Assistant  Superintendents  represented  by Party  No, 5 because  their  cases are  covered  entirely  by the agreements  of  July  26, 1965 and October 15, 1965 respectively  (Appendices  IV and V).  Their  grades  have,  however, also  been  indicated  in the tables  which  follow  (new grades  21, 24, 25,  27, 28 and 29).  These  tables  have  been  prepared  on  the same pattern  as Table  1 regarding  grade  1 on pages  297-298 and they  set out a  complete picture  giving  the  previous  salary,  the  salary  after  interim  relief  (in- cluding  ad hoc increments)  and the new scales  with  the  percentage of benefit  at each  stage.
TABUI  2
Grade No.
Cattgirits  covered
Froent  :  2
Cook, Head* of Employee* In Grade  (x)
Ntrfv  :  2
Present  scale
New  scale
70-5-100-10-120
130-5-150-10-190
10
8
6
I
2
9
5
3
4
7
Total
Pay
Increase Total
D.A,
Total
Pay D.A.
Interim Relief
T  %
Increase
 70      81      151       37      188      130       65      195       44        it
 75       83      158       37      195     135       65      2OO       42       27
 80       85     i65       37      2 02     140       65      205       40       %z
 85       87      172       37     209      145       65      210       38       22
 90       89      179      37      216      150       70      220       4i       23
 95       91      186       37     223      160       70      230       44       24
100       93      193       38      231      170      70      2 40       47       34

21
180
70
250
206
no
96
243
44
37
42
190
70
260
218
256
120
98
38
19

SEC.  3(11)]  THE  GAZETTE  OF  INDIA  EXTRAORDINARY  301
TABLE  3
Grade No.  Categories  covered
Present  :  3
Dresser,  Driver,  Head  Cook,  Loading  Supervisor,  Printenij
New  :  3  Assistant,
New  scale
Present  scale
150-10-200-15-230
90-5-100-10-150
I
2
10
6
8
5
7
4
9 3
Total
Total
D.A.
Pay D.A.
Total
Increase
Pay
Interim
Relief
0/ T  /0 Increase
216
70
2 30
90
179
150
89
37
41
23
160
2 23
70
230
186
95
37
9*
44 24
1 00
70
170
240
231
38
193
93
47
24
1S0
70
243
no
206
21
96
2 50
37
44
2 60
70
190
120
218
256
98
38
4a
19
2 00
268
130
231
1 01
75
37
375
19
44
215
140
2 90
2 81
243
103
38
75
47
I?
230
150
106 256
293
75
37
3°5 49 19
It will be seen that the workmen In this category are now better off  than similar  workmen  in  other  industries.  A  driver  in  the  Indian  Telephone Industries,  Bombay  Electric  Supply  and  Mazagon  Dock  Limited  receives starting  salary  of  less than  the proposed  salary  of Rs. 220.  The  maximum salary  in two instances  is higher  but  it  seems to me that  the total  benefits over the years is in favour  of Air India.  The maximum  salaries of  drivers in other concerns are well below the maximum  of Rs. 305 proposed by me.

3O2  THE  GAZETTE  OF  INDIA  EXTRAORDINARY  [PAHT II—
TABLE  4
Grade No,  Categories  covered
Preient  :  4  Junior  Canteen  Assistant,  Junior  Catering  Assistant,  Junior  Oinp  Assis- tant,  Junior  Clerk,  Junior  Compounder,  Junior  Comptistj  Junior  Malls New  :  4  Assistant,  Junior  Puncher,  Junior  Telephone  Opirator,  Junior  Tele- printer  Operator,  Junior  Time  Keeper,  Junior  Traffic  Assistant:,  Tracer, Typist,  TypiBt/Clcrk.
       Present scale                           N ew scale
     90-5-100-10-150-15-240             150-10-200-15-245-20-345
  I      2      3       4      5        6      7       8    9      10
Pay    D.A.   Total  Interim Total  Pay     D.A.  Total Increase
                                                                T  /o
                     Relief
                                                                Increase
   90     89    179      37    216    150     70     220     41     23
   95     9i    1&6      37    223    160     70     230     44     24
  100     93    193      38    231    170     70     240     47     24
  no      96    206      37    243    180     70     250     44     21
  120     98    218      38    256    190     70     260     42     19
  130    IOI    231      37    268    200     75     275     44     19
  140    103    243      38    281    215      75    290     47     19
  150     106    256     44    300     230     75    305     49      19
  165    no     275      43    318    245     75     320     45     16
  180    "3     293      44    337    265      75    340     47      16
  195    117    312      43    360    285      75    360     48      15
  210    125    335      43    378    305      80    385     50      15
  225    128    353     43     396    325     80    405     52       15

240
409
131
80
38
371
425
345
54

"toc.  ""!)!]  THE  GAZETTE  OF  INDIA  EXTRAORDINARY  303
TABLE  5
<3rade No.
Categories  covered
Present  :  5           Junior  Printer,  Junior  Progress  Clerk,  Junior  Storekeeper.
N e w:      5
               Present scale                              N ew scale
        100-10-150-15-195-20-255                   180-10-200-15-245-20-365
         I      2       3       4      5       6      7       S       9     10
       Pay    D.A.                   Total   Pay    D.A.                    n/
                     Total  Interim                        Total  Increase  /o
                             Relief                                      Increase
         100     93     i93     38     231     180     70     250     57      30
         no      96     206     37     243     190     70     260     54      26
        1120     98    21-3     33  - 256     200      75    275      57      26
        130     101    231      37    368     215     75     290      59     26
        140     103    243      38    281     230     75     305      62     26
        150     106    256      44    300     245      75    320      64     25
        165    no      275     43     3i8     265     75     340      65     24
        180    H3      293     44     337     285     75     360      67     23
        195    117     312      54    366     305     80     385     73      23
       215     126     341     49     39°     325     80     405      64
                                                                             19
       235             365     44     409    345      80     425     63
               130                                                           17

80
3S9
365
44
433
445
134
56
255
Hi

3 04  TKET GAZETTE  OF  INDIA  EXTRAORDINARY  pPta"  It—
TABLB  6
Grade. NOJ  Categories  covered
Present  :  
Sfenior/PIead  Driver..
New  :  6
Present  sode
New  scale
200-15-245-20345-
120-10-150-15-22 5-
10
6
2
I
3
8 9
4
5"
r
D)A>
Total Pay
Total  Increase Total
D.A.
Pay
Interim Relief
T  % Increase
2 00
26
256-
1 20
 
98 218*
                             38                          75      275        57-
130       IOT      231       37      268      215        75"     2 90       59       2 6,
140      103      243'       36      281      2 30       75      305       62
150       106      156 •     44      3 00     245        75"     320       H         2 5.
165      no                          318      265                340

24,.
43
275
75
65
180
2J
360
28s
67-
337
75
I.I3
29$
44'
36O
80
117
312-
195                          48               305               385        73       23.
2 10     125      335-       43      378      325       80      405        70        2L.
2 25     128      353.       4a      396      345        80      425,      72:       2a.

TABLE  7
Graiie  ATo,
Categories  covered
Present  :  7
Yard  Supervisor.
New  ;  7
New  scale
Present  acalt
230-15-245-20-3B5-25^435 140-10-170-15-215-20-295
10
6.
2.
S-  9i,
1
7"
J
Total Pay D.A. Totali  Increase D.A. 1'otal
Pay
Interim Relief,
% Incrca&t
26,.
28L
i
230 >
243
305.  te i40
3"
 
n320-  64
106
24S
256
37
Z93,
75
150
as.


SK.  3(ii)]  THE GAZETTE  OF INDIA  EXTRAORDINARY  305
6
I
5
2
10
8
7
3
9
4
160    10S    268    38    306    265     75    34°    72     27
170    III    281     44    325    2?5    75-   360     79    2&
185    115    300    43    343    30J     80    385     85    2"
200    118    318    48    366    325     80    405     87
                                                              27
215    126    341    49    39°    345     80    425     84    35
235    130    365    44    409    365     80    445     80     22
255    134    389     44    433   385     80    465     76     20
275    I3S .  413    43    456    410     85    495'    82     20
.295   141    436     43    479   435     85    520     84     I9<

TABLE  8
Grade  No.  Categories  covered
Present  :  S(a)
Mukadftm,  Carpenter,  Tailor,  Mason,  Plumber,  Mechanic
Kew  :  8
(Cabin  Service)
Present  scale
N ew  scale
120-10 -140-15-21J-20-315-EB-20-375
20"-i5-245-ao-385-25-5io
1
2
8  9
6
10
3
5
4
7
Total
Total Pay
Total  Increase D.A.  :
D.A.
Pay
Interim Relief
Increaie
200
218
120
38 256
98
26
75 J75  57
268 215
231
IOi
130
26
290  59
37
75
103
230
305  62
287
36
243 44
140
 
75306
107
245
262
320  58
22
44
75
155


306  THE  GAZETTE  OP  INDIA  EXTRAORDINARY  [PAST  II—
I
2
6
4
3
5
7
8
ro
9
  170    111    281     44    325    265     75    340            2l
                                                           59
  185    "5     300     43    343    285     75    360     60     20
  300    118    318     48    366    305    80     385    67     21
  315   126    341     49    3S>o   325     80    405     64
                                                                 19
  *35    13°   365     44    409    345     80    425     60     16
 255    134    389     44    433    365     80    445     56
                                                                 14
 275    138    413     43    456    385     80    465     53
                                                                 13
 ^95    141    436     43    479    410    85    495     59
                                                                14
 315    144   459     42     501   435     85    520     61     13
 335    146   481     37    5i8    460     85    545     64     13
355    148    503     4Q    543    485     85    570     67     13
375    153    528     33    566    5T°     9°    600     72     14

TABLE  9
Grade  No.  Categories  covered
Present  :  8(b)  Electrician  (Plant), Bench  Fitters  (Plant & Stores), Mechanics  (Plant, Air  conditioning  &  Teleprinter),  Turners,  Non-liccnscd  Welders, New  :  9  Machinist,  Milkr,  Painter  (Plant,  Transport  &  Stores),  Tinsmith
(Plant & Transport)., Blacksmith.
N ew scale
Present scale
245-20-385-23 5to
I55-I5-2I5-2O-375
2
I
10
6
5
7 ,
3
8 9
4
Total  Increase
Total
Total
D.A.
Pay
D.A.
Pay
Interim Relief
r  % Increase
22
306
107 262
320
38
44
245 75
 
133325
281
in
170
21
340
265
73
44
59


Stc.  9(11)3  THE  GAZETTE  OF  INDIA  EXTRAORDINARY  307
I
2
ro
8
6
5
9
7
3
4
185      115      300       43      343      285       75      360       60        21
2 00     118      318       48      366      305        80     335        67       21
215      126      341       49      390      325        80      405       64       19
235      130      365       44      409      345        80     4*5        60       16
255               389       44      433      365        80      445       56       14
        , I 34
275       138     413       43      456      385        80      4S5       52       r3
 295      141      436       43      479      4 10      85      495       59       14
315       144     459        42      501      435       85      520       61       13
 335      146      481       37      518      460       85      545       64        13
 355      148      5°3       40      543      485       85      570       67        13
 375      153      52S       38      566      510       90      6oo       7i        14

TABLE  10
Grade No.  Categories  covtred.
Present  :  9  Briefing  Assistant, Junior  Artist, Ramp  Supervisor,  Senior  Catering Assistant,  Senior  Cargo  Assistant,  Senior  Clerk,  Senior  Clearing New  :  10  Clerk,  Senior  Compounder,  Senior  Comptist,  Junior  Livestock Attendant,  Junior  Security  Assistant,  Senior  Mails ^Assistant,  Senior Telephone  Operator,  Senior  Teleprinter  Operator,  Senior ^Puncher, Senior  Time  Keeper,  Senior Traffic! Assistant,  Stock Verifier,  Supcr- risor-CHW-Clerk,  Transport  Assistant.
Present  icale
New  scale
14010-150-15-225-20-365
230-15-245-20-385-25-510
1
2
10
7 89
6
3
4
5
P.y D.A. Total
Total Pay D.A.  Total  Increase
Interim Relief
r  % Increase
140
243
281
2 30
103
26
38
 
75  305  62106
300
150
256
75  3=0  64
345
44
25


3o8  THE  GAZETTE  OF  INDIA  EXTRAORDINARY  [PAOT  II—
2
10
6
8
9
3
4
5
7
165    no     275     43    3X8    265     75    340     65     24
180    113    293     44    337    285     75    360     67     23.
195    "7     312     48    360    305     80    385     73     33
210     125   335     43    378    325     80    405     70     21
225    128    353     49    40a    345     80    425     72     2O
245    132    377     44    421    3S5     80    445    68      iS
265    136    401     44    445    385     80    465     64     16
285    140    425     43    468    410     85    495^    70     17
305    143    448     42    490    435     85    520     72     16
325    145    470     43    S12    460     85    545     75     16'
345    147    492     39    53i    485     85    570     78     16
365    151    516     39    555    510     90    600     84    . 16

TABLE  ii
Grade  No.
Categories  covered.
Present  :  10
Senior  Progress  Clerk
New  :  9
N ew scale
Present scale
245-20-385-25*5x0
150-15-225-20-365
10
8
6
1
2
7
9
5
4
3
Increase
Total
Total
D.A.
Pay
Total
Pay D.A.
Increase
Interim
Relief
330
300 245
256
64
106
75
44
 
150318
no
265
U
75
65
43
34°
275
165


Sue.  3(ii)]  THE  GAZETTE  OF  INDIA  EXTRAORDINARY  309
10
8
6
r
9
4
5
7
3
180    113    293     44    337    285     75    360     67     23
195    117    312     48    360    305     80    385     73.    32
210    125    335     43     378    325    80    405     70      21
225    128    353     49    402    345     80    425     72      20
245    132            44    421            80            63      18

.365
             377                              445
265    136   401     44   445    385     80   465     64     16
285    140   425     43   468    410     85   495     70     17
305    143   448     42    490   435     85    520    73     16
325    145   470     42    5"    460     85    545    75     16
       147   492     39    531   485     85    570    78     16

345-
510
90 600
16
516
84 151
39 555
365
TABLE  12
Grade No.
Categories covtrtd.
"Present  :  11
Senior  Printer,  Senior  Storekeeper.
New  :  11
Pretent  scale
N ew  scale
245-20-385-25-535
150-15-225-20-385
2
I
6
10
8
4
5
7
3
9
Total
Total
D,A.
Pay D.A.
Pay
Total
Increase
Interim
Relief
%
Increase
300
150 106 256
320
44
64
245 75
 
2524
no
318
265
275
165
75
340
43
65
180
360
285
23
44
337
"3
393
75
67


310  THE  GAZETTE  OF  INDIA  EXTRAORDINARY  [PART  II—
2
10
I
6
8
3
4
7
9
5
360
117
23
312
48
80
195
305
385
73
 210    125   335     43    378    325     80    405    70     21
 225    128   353     49    402    345     80    425    72     20
 245    132   377     44    421    365     80   445     68     18
 265   136    401     44    445    385     80    465    64     16
285    140    435     43    468    410     85   495     7°     17
305    143    448     42   490    435     85    520     72     16
325    145    470     43    512   460     85    545     75     16
345    147    492     39    531   485     85    570     78     16
365    151    516    39    555    510     90    600     84     16
385    155    540     37    577    535    90    625     85     16

TABLB  13
Grade  No.
Categories  covered.
Present  :  12
Stenographer.
New  :  12
N ew scale
Present scale
230-15-245-20-385-25-560
14010-150-15-225-20-405
8
2
6
10 1
9
4
3
5
7
Total
Total
D.A.
Increase D.A.
Pay
Total
Pay
T  %
Interim Relief
Increase
62
230
26 243
281
140 103
305
38
75
245
320
300
150 106 256
25;
64
44
 
75340
no
275
318
265
24
65
43
75
165
360
293
180
285
67
44
75
23
337
"3


Sic.  3(ii)]  THE  GAZETTE  OF  INDIA  EXTHAOKUi^AitY  311
10
8
7
I
9
2
5
3
4
195    117    312     48    360    305     80    385    73     23
210    125    335     43    378    325    80    405     75     21
225    128    353     49   402    345     80    425     72     20
245    132    377     44    421   365     80    445     68     18
265    136    401     44    445   385     80    465     64     16
185    140    425     43   46S    410    85    495     70      16
305    143    448     42    490   435     85    520     72     16
325    145    470     42    512    460    85    545     75     16.
 345    147   492     39    53i    485     85    570    78     16
365    151    516     39    555    5io    90    600     84     16
385    155    540     37    577    535    90     625    85     16
405    157    562     40    602    560     90    650     S3     16

TABLE  14
Grade  No.
Categories  covered.
Present  :  13
Cashier,  Draughtsman.
New  :  13
Present scale
N ew  scale
Rs.  165-15-225-20-345-25-395
Rs. 265-20-385-25-535
1
3
6
8
ip 3
4
5
7
9
Pay D.A. Total
Total
Increase
Pay D.A. Total
Interim Relief
r  % [ncrease
no
3i8
340
265
165
275 43
75
 
65 24180
360
285
113
*>3
44
337
75
67


312  THE  GAZETTE  OF  INDIA  EXTRAORDINARY  [PART  II—
10
I
2
4
5
6
7
8
9
3
195    117    312    43     360   3°5     80    385     73     23
210    125    335     43    373   325     80    405     70     21
225    128    353     49    402   345     80    425     72     20
245    132    377     44    431    365    80    445     68      18
265    I3S    401    44    445    385     80    465     64     16
285    140    425     43    468    410     85    495    70     16
305    143    448     42    490    435    85    520     72     16
325    145    470     42    512    460     85    545    75     16
345    147    492     45    537    485     85    570    78     16
37O    152    522     44    566    510     90    600    78     15
395    156    551     45    596    535     90    625    74     13

TABLE  15
Gradt  No.  Categories  covtred.
Present  :  14  Awlitant  Cabin  Supervisor,  Assistant  Transport  Supervisor,  Senior Canteen  Assistant,  Senior  Livestock  Attendant,  Chief  Catering New  :  14  Assistant,  Chief  Cargo  Assistant,  Chief  Customs  Clerk,  Chief  Grain Shop  Clerk,  Chief  Printer,  Chief  Telephone  Operator,  Chief  Tele- printer  Operator,  Chief  Traffic  Assistant,  Librarian,  Office  Awittant, Section  Storekeeper,  Senior  Security  Assiitant,  Technical  Assistant, Operation  Assistant.
Present scale
N ew seale
Rs.  180-15-225-20-345-25-420
Rs. 285-20-385-25-560
10
8
6
1
2
9
7
3 4 5
Total Increase
D.A.
Total Pay
D.A.
Total
Pay
Increase
Interim
Relief
23
360
180
113
285
75
67
293
44
337
80
360
48
117
385
73
"3
305
312
195

s"c.  s(U)]  THE  GAZETTE  or  INDIA  EXTRAORDINARY  313
I
2
10
8
3
9
4
5
6
7
1 10     "5       335      43      378      335      80      4°5       70      ai
         128      353      49      4 02     345      80      425       72      so
245      132      377      44      42i      365      80      445       68      18
         136      401      44      445      335      80      465       64      16
"a5      140    .  433     43      468      410      85      495       70       16
305      143      448       42     490      435       85     520       72       i"
j as     145      47°      42      512      460      85      545       75       16
B45      147     492       45     337      485       83     370        78      itf
S70      152     322       44     566      310       90     600        78      13
395      156     351       45      596     335       90     62s        74       13
420      161     581       44     625      560       90     650        69      1a

TABLE  16
OratU  No.
CatigoHts covtrtd.
Present  :  16
Receptionist.
New  :  15
Present  "cale
New  scale
Ri.  260-20-340
Rs.  410-23-310
2
1
6
3
S
10
4
3
9
7
P"y D.A.
Pay
Total
Total
D.A. Total Increase
%
Interim Relief
In icreaie 260
410
1 00
135
44
395
85
439
 
495280
419
101
320
139
463
44
433
85
34


314  THE GAZETTE OP KTtttA  fiSttUtmmttAtt*-  tPiln  U-I
10
6
8
a
7
5
9
4
3
 103
4
300
484
545
41
143 443
506
570
330
106
85
464
144
485
>3
4*
•
600
510
114
486
340 146
34
90
3$ 5*5
It  will  be  remembered  that  in  the  Charter  of  Demands,  Party  No.  2 claimed  the  pay  scale  of  Rs. 350—25—450—50—700.  In  the  written  state- ment  this  was  increased  to  the  scale  of  Rs. 450—25—^500—50—980.  The grade  awarded  by  me  is  Rs. 410—25—510.  It  is more  advantageous  than the  grade proposed  in the  Charter  of  Demands  and  only  a little  less  than the  grade  claimed  in the  written  statement.  There  is  a  diminition  on  ac- count  of  part  of  the  dearness  allowance  having  been  merged  in  the  pay, but  the  total minimum  salary  of  Rs. 495 and  a maximum  salary  of Rs. 600 is,  in my view,  adequate having  regard  to  the nature  of  the  Receptionist's duties.  The  increase,  it  will  be  seen,  varies  between  23 per  cent  and  25 per  cent.
TABLE  17
Oradt  No.  Cattgorui  eovertd.
Present  i  17
Leading  Hand Teleprinter  Technician* Radio  Technician  Or.  I
New  :  16  Works  Supervisor
Welders  with  2  licences.
Present  Bcale  New  scale
Rs.  193-15-235-20-305-25-430  Rs.  325-20-385-25-560-40-600
2
8
I
6
3
9 10
5
4
7
Total
Total
Total
D.A.
D.A.
Pay
Pay
Interim
Relief
                                                            Increase   %
                                                                 Increase
195    117     312     48    360     325      80    405     93        3
210    135     335     43    378     345      80    425     90        27
225     128    353     49    402     365      80    445     93       26

245
80
421
88
132
35
377
465
385
44
401
265
410
3*
136
85
495
94
44
445

flK-  JHWi  T B*  QAHBETB OT WEKA  EETRAORDINARY  515,
10
I
8
2
6
9
7
3
5
4
2 85     140     423       43     468      435      83      520      93       a"
305      143     448       47              460      85      545      97       2a
                                  495
330      145               43     518      485      85      370      95  .    20
                 475
335      148     503       45     548      5io      90      6 00     97       i"
380     153      533      44               335      90      6a5      93       17

577'
405      157     562       45     607      560       99     650       88       16
430      162     592       44     636      600       90     690       98       17

TAULB  18
Grade No.
Cattgoriu  covtrid
Present  :  18
AMirtant  Flight  Puraei
N ew  :  17
Present  scale
New  icale
Rs.  250-25-400
R".  385-25-535
I
2
10
8
6
9 3
4
7
5
Pay
D.A.
Total
Total
Increase
Total
Pay DA
%
Increase
Interim
Relief
2 50     133      383       50     433      385       80      465       82       21
275      138      413       50      463      4 10      85     495       82       20
3 00     143      443       47      490      435       85      520      77       17
325      145      470       48      518     460       85      545       75       16
3 50     148      498       45      543     485        85     570       72       H
375      153      528       44      5 73     5 10      90     6 00      73

4 00
157
6 02
12
90
6 25
68
45
357
535
NOTB.— Employees  in  this  grade  get  an  additional  jet  allowance  of  Rs.  50/-  p.m.  The
percentage  of  increase  in  their  total  emoluments  is  therefore  substantially  higher
than  the  figures  in  column  10  above.

316  THE GAZETTE OF INDIA EXTRAORDINAKY  [PAH* II-~
Objection  to  the  Treatment  of  Certain  Categories  as  Workman 42.  I  may,  at  this  stage,  dispose  of  an  objection  raised  on  behalf  of Air-India  regarding the  competency  of  this Tribunal  to  deal with  the  case of  certain  categories  of  employees  on  the  ground  that  they  do  not  fall within  the  definition  of  "workman"  as  set  out  in  the  Industrial  Disputes Act,  1947.
43.  In  paragraph  57. of  the  replication  filed  by  Air-India,  it  was  con- tended* that  the  following  categories  of  employees  are  not  "workmen":
(i)  Dispensary  Supervisor, (ii)  Catering  Officer, (iii)  Assistant  Security  Officer, (iv)  Supervisor  of  Telephones, (v)  Teleprinter  Supervisor, (vi)  Junior  Officer, (vii)  Progress  Supervisor,  and (viii)  Chief  Timekeeper,  etc.
The  use  of  the  word  'etc'  after  Chief  Timekeeper,  seemed  to  imply  that the  Corporation  also had  in  mind,  other  categories  of  employees  not  men- tioned  in  paragraph  57 and  who  were  also  to  be  excluded  from  the  scope of  these  proceedings.
44.  Later,  in  its  letter  No.  AI/NT/522  dated  May  17,  1965, the  Corpo- ration  contended  that  the  following  five  categories  of  employees  were  not "Workmen"  and  their  case  could  not  be  considered  by  this  Tribunal:
(i)  Junior  Technical  Officer, (ii)  Technical  Officer, (iii)  Senior  Technical  Officer, (iv)  Assistant  Chief  Flight  Purser,  and (v)  A.-sistant  Chief  Air  Hostess.
45.  Finally,  in  its  letter  No. AI/NT/528  dated  May  20,  1965, some  more categories  of  employees  were  enumerated  and  with  regard  to  these  also, an  objection  on  the  same  ground  was  taken:
(i)  Chief  Artist, (ii)  Assistant  Chief  Flight  Purser, (iii)  Assistant  Chief  Air  Hostess, (iv)  Junior  Officer, (v)  Junior  Accountant, (vi)  Section  Officer, (vii)  Chief  Timekeeper, (viii)  Security  Inspector,  and
(ix)  Planner.
46.  It  will  be  observed  that  there  is  a  certain  measure  of  overlapping in  the three  lists  given  above.  For  instance, Assistant  Chief  Flight  Purser and  Assistant  Chief  Air  Hostess  figure  in  both  the  letters  of  May  17  and 20,  1965.  Junior  Officer  figures  in  paragraph  57  of  the  replication  as  also in  the  letter  of  May  20,  1965.  This  repetition,  however,  has  no  bearing on  the  validity  of  the  argument  and  I  now  proceed  to  consider  the  objec- tion.

&cc.  3(11)]  THE  GAZETTE  OF  INDIA  EXTRAORDINARY  317
47.  The  objection  was  repelled  on  behalf  of  the  Union  and  in  Exhibit U-II/46  filed  before  the  Tribunal,  the  Union  advanced  the  following  argu- ment:
"The  Corporation  contends  that  these  categories  of  persons  are  not workmen  under  the  Act.  The  Union  denies  the  same  and  states that  they  are  workmen  as  denned  under  the  Act  and  are  also covered  by  the  definition  of  the  word  industrial  Dispute.  The scales  of  pay  of  these  categories  have  been  agreed  uponiin  the previous  adjudication  and  have  been  the  subject  matter  in  the award  of  arbitration  and  the  said  award  has  been  implemented by  the  Corporation...."
In  his  argument  before  the  Tribunal,  Mr.  Dudhia  relied  upon  the  judge- ment  of  the  Supreme  Court  made  in  the  All-India  Reserve  Bank  Em- ployees' Association  and  another  v. The  Reserve  Bank  of  India  and  another and  contended  that  workmen  who  are  directly  ;.nd  substantially  inter- ested  in  an  industrial  dispute,  can  include  within  the  reference  a  dispute on  behalf  of  any  person  with  whose  terms  of  employment  or  conditions of  labour  their  own  dispute  is  connected.
48.  The  contention  that  many  of  the  employees  with  regard  to  whom an  objection  was  taken  by  the  Corporation  had  been  the  subject  matter of  the  previous  reference  to  the  Committee  of  Arbitration  and  the  subse- quent  award  based  upon  a  settlement,  is  somewhat  exaggerated.  I  find, on  referring  to  the  agreement  of  April  1,  1959  and  May  9,  1960,  that  only three  of  the  employees  mentioned  in  paragraph  57  of  the  replication  of the_ management,  were  included  in  the  previous  proceedings.  Assistant Security  Officer  and  Chief  Timekeeper  figure  both  in  the  agreements  of April  1,  1959  and  May  9,  1960.  Junior  Officer  figures  in-the  agreement  of May  9,  I960.  The  cases  of  the  remaining  five  employees  were  not  con- sidered  at  that  time.
49.  With  regard  to  some  of  the  employees,  the  Corporation  has  con- ceded  that  it  would  be  prepared  to  accept  the  award  of  this  Tribunal when  they  fell  under  certain  categories.  In  paragraph  70  of  the  replica- tion,  the  Corporation  observed:
"With  regard  to  the  suggestion  made  for  the  revision  of  grades  of officers  other  than  AMEs  who  are  not  workmen,  the  Corpora- tion  submits  that  any  proposal  in  this  behalf  is  ultra  vires  of the  Industrial  Disputes  Act  and  outside  the  jurisdiction  of the  Honourable  Tribunal.  However,  if  as  a  result  of  the  Award made  by  this  Honourable  Tribunal,  the  scales  of  pay  of  AMEs are  revised  in  any  manner,  it  would  be  for  the  Corporation to  consider  as  to  how  the  existing  grades  of  these  managerial posts  should  be  dealt  with  in  consequential  revision."
The  categories  which  are  covered  by  this  offer  of  the  Corporation  arc  (i) Junior  Technical  Officer  who  is  placed  in  Grade  23  along  with  AMEs Grade  III,  (ii)  Technical  Officer  who  is  in  Grade  27  along  with  AMEs Grade  II  and  (iii)  Senior  Technical  Officer  at  present  in  Grade  28  along with  AMEs  Grade  I.  Therefore,  according  to  the  offer  made  by  the ' Corporation,  when  the  salary  scales  of  Grades  23,  27  and  28  in  so  far  as they  relate  to  AMEs  are  revised  either  by  an  award  of  this  Tribunal  or as  a  result  of  an  agreement  reached  between  the  parties,  the  three  above- mentioned  officers  would  also  enjoy  the  benefit  of  the  new  scales.  This is  how  I  read  the  offer  made  by  the  Corporation  in  paragraph  70  of  the replication.

3i8  THE QAEETTE OF INDIA EXTRAORDINARY  WABX &—
50. With  regard  to  the  remaining  categories,  I  may  mention  the  case of  the  Assistant  Chief  Flight  Purser  who  is  placed  in  the  same  grade  as the  Flight  Purser.  The  Flight  Purser  being  admittedly  a  "workman",  will not  be  preferred  to  the  Assistant  Chief  Flight  Purser  merely  on  the ground  that  the  latter  does supervisory  work.  This  is so  quite  apart  from the  argument  that  the  Assistant  Chief  Flight  Purser  will  almost  invari- ably  be  promoted  from  the  grade  of  Flight  Purser  and  Assistant  Flight Purses  both  of  whom  are  admittedly  workmen  within  the  scope  of  the Industrial  Disputes  Act,  and  therefore  his  case  can  be  taken  up  by  the workmen  as  being  'connected'  with  them.  Similar  remarks  apply  to  the Assistant  Chief  Air  Hostess  in  grade  22  who  enjoys  the  same  pay  scale as  the  Air  Hostess  and  from  whom,  therefore,  her  case  cannot  be  distin- guished  when  the  pay  scales  have  to  be  revised.
™ 51.  With  regard  to  all  these  employees,  the  contention  of  the  Unions  is that  the  principle  laid  down  by  the  Supreme  Court  in  the  Reserve  Bank of  India  case  as  also  in  the  Dimakuchi  Tea  Estate  case  applies.  It  seems to  me  that  this  argument  has  considerable  force  and  I,  therefore,  need not  consider  the  nature  of  the  functions  performed  by  these  employees because  the  Supreme  Court's  decisions  in  the  two  abovementioned  cases completely  dispose  of  the  objection  raised  on  behalf  of  the  Corporation.
52.  In  the  Dimakuchi  Tea  Estate  case, it  was  laid  down  that  when  the workmen  raise  an  industrial  dispute  against  an  employer,  the  person  re- garding  whom  the  dispute  is  raised,  need  not  strictly  be  a  "workman" but  may  be  one  In  whose  terms  of  employment  or  conditions  of  labour, the  workmen  raising  the  dispute  have  a  direct  and  substantial  interest.
53.  In  the  Reserve  Bank  case,  the  Supreme  Court  was  considering Whether  the  conditions  of  service  of  certain  categories  of  employees  could be  brought  within  the  scope  of  the  Industrial  Tribunal's  enquiry.  After referring  to the  Dimakuchi  Tea  Estate  case, the  Supreme  Court  observed: "The  definition  of  'industrial  dispute* in  s.  2 (k),  which  we  have  set out  before,  contemplates  a  dispute  between:
(a)  employers  and  employers;
or  (b)  employers  and  workmen; or  (c)  workmen  and  workmen;
but  it  must  be  a  dispute  which  is  connected  with  the  employ- ment  or  non-employment  or  the  terms  of  employment  or  with the  conditions  of  labour  of  any  person.  The  word  'person'  has not  been  limited  to  'workman'  as  such  and  must,  therefore, receive a more  general meaning  Workmen  can, for  example, raise  a  dispute  that  a  class  of  employees  not  within  the  defini- tion  of  workman  should  be  recruited  by  promotion  from  work- men.  When  they  do  so  the  workmen  raise  a  dispute  about  the terms  of  their  own  employment  though  incidentally  the  terms of  employment  of  those  who  are  not  workmen  is involved.  But workmen  cannot  take  up  a  dispute  in  respect  of  a  class  of  em- ployees  who  are  not  workmen  and  in  whose  terms  of  employ- ment  those workmen have no direct  interest  of their  own.  What direct  interest  suffices  is  a  question  of  fact  but  it  must  be  a real  and  positive  interest  and  not  fanciful  or  remote."
 
This  principle  when  applied  to  the  case  of  the  five  categories  mentioned above  brings  the  conditions  of  service  of  these  employees  within  the scope  of  my  enquiry  because  employees  in  all  the  abovementioned  cate- gories  may  be  promoted  from  amongst  the  employees  who  are  strictly

4pt.  "W>]  TP  QAWrre  qr  wp*£  JOOEAGBPfNAflY  319
"workmen"  within  the  definition  set  out  in  the  Industrial  Disputes  Act Their  conditions  of  service  are  intimately  connected  with  the  conditions of  service  of  other  categories  and  it  is  clear  beyond  doubt  that  these employees  are  persons  in  whom  the  workmen  are  substantially  Inter- ested.
54.  Summing up therefore,  it  is seen  that  three  categories  of  employees were  included  in  the  previous  arbitration  and  an  award  made  on  the basis  of  the  settlement  between  the  parties.  With  regard  to  these  three, therefore,  the  Corporation  has,  in  the  previous  agreement,  conceded  that they  were  "workmen"  who  could  raise  an  industrial  dispute  with  the Corporation.  With  regard  to  three  others,  the  Corporation  offered  fo revise  their  pay-scales  in  conformity  with  the  grades  in  which  they  fell. With  regard  to  all,  the  principle  laid  down  by  the  Supreme  Court  in  the two  abovementioned  cases  applies,  and  therefore,  the  case  of  these  per- sons  and  the  demands  made  on their  behalf  cannot  be  excluded  from  the terms  of  the  present  reference.  The  objection  of  the  Corporation  is, therefore,  over-ruled  and  these  categories  are  included  in  the  grade* which  follow.
TABLE  19
Orad* No.  Categories  covered
Pietcm  :  ao  Assistant  Artist,  Assistant  Security  Officer, Catering  Officer,  Dispensary  Supervisor, New  :  18  Filing  Supervisor,  Gardening  Supervisor, Incharge-Puncher,  Personal  Assistant/ Secretary,  Production  Assistant,  Progress Supervisor,  Senior  Draftsman,  Supervisor Telephones,  Teleprinter  Supervisor, Assistant  Sccurity-CMm-Fire  BrigadeO  fficer. Supervisor  Communications.
Present  scale
New  scale
Rs.  410—25—560—40—720 *"•  375—35—330
8
JO I
2
6 .  7
3
4
3
9
D.A.
Interim
 
Total Pay D.A.
Total
Total
Increase
Pty
Relief
Increase
373      138      413      50      463      4 10     83      495       83         20
3 00     143     443      47       490     433      83       5 20      77         17
313      145     470      48       518     460      85       345      75         16
350      148     498      43       343     485      85       370       72
375      153     518      44       573     5io      90       600       72         14

400
90
602
68
12
6 a5
157
45
535
'  557
90
162
560
:i
650
587
425
631
44
63

320  THE  GAZETTE  OJ* INDIA  ttJCTRAORDINAHY  [Piiw  IT—
2
6
to
3
8
4
5
7
9
 450    166     616    44     660     600    90     690      74       12
T475    170    643     43     690     640    90      730     85       13
 300    173    675     43     718     680    93     775     100
                                                                      15
 325    178    703     43     746     730    93     813     112       16
        181    731     40     771             3      815    113       II

TABLE  20
Grade No.  Cattgorw covered
Present:  21  Chargehand
Examine*
New  :  19  Transport  Foreman
Works  Insptctoi
New scale
Present scale
Rs.  410—33—360—40—720—50—770 Rs. 250—33—450—50—600
3
10
6
8
I
5
3
7
9
4
Total
P"y     D.A.   Total  Interim         Pay    D.A.    Total Increase
                       Relief                                        Increase
 350     133    383    5°      433    410     85     495     112        29
 373    138     413    50     4S3     435    85 •    520 .   107       26
 300    T43     443    47     490     460    85      545     ioz        33
323     145    470     48     318     485    85      570     TOO       31
35°     148    498     45     543     310    90     600  ,   102       3O
375     153     528    44     572     535    90      6 2;     Q7       18
400            557    45      602    560     90     650      93        17
       ; 157

690
•T03
TS
600
90
,  163
631
425
44
587
730
640
90
114
690
19
616
74
450

"ic:  3(1101  TBH  GAZETTE  OF  INDIA  EXTRAORDINARY  321
I
2
8
10
6
9
7
3
5
4
5 00     175      675      71       746      680      95       775      TOO          15
550      181      731      71       802      7 20     93       815       84          II
600      187      787      65       85a      770      95       865       78          10

TABLE  21
Oradt  No.  Categories  covered
Present  :  22  Air  Hostess
Assistant  Chief  Air  Hostest N"w:  20
Present  seal*
New  scale
Rs.  485—25—560—40—720—50—770
Rs.  350—25—550
I
2
10
6
8
3
9
4
5
7
Total
Pay
Pay
D.A.
Total
Total
D.A.
Increase
                          Intenm
                          Relief                                                  T  %
                                                                                  Increase
350      148      498      45       543      485      85       570       73          14
375      153      528      44       573      5 10     90       600       72         14
4 00     157      557      45       602      535      90       6 25      68         12
425      162      587      44       631      560      90      650       '"3         11
45°      166      616      44       660     600      90       690       74          12
475      170      645      45       690     640      90       73°       85          13
500      175      675      43       718     6 80     S5       775      lOQ          15
525      178      703      43       746      7 20     95       815      112         16
55°      181      7 3i     40       771      770      95       865      134         iS

NOTE,—Employees  in  this  grade  get an  additional  jet  allowance  of  R".  > 50  p.m.  The percentage  of increase in their  total  emoluments  is therefore  "ub tqntiaDy  higher than  the figures in  column  10 auovc.

322  THE GAOTm Or nraiA  KCTRAORDmAKT  PVW &-
TAILE  "
Grab  No.  Catigorki  ccvtred
Present:  33  A.M.E.  Grade  III,  Junkw  Simulator
Maintenance  Engineer*  Junior  Technical
New;  M  Officer,  Radio  A.M.E,  Ill/Junior  Radio
Inspector.
Present  teak
New  scale  (Agreement)
Rs.  400—25—450—50—800
Ra.  323—25—45c— 5°—600
1
3  .
10
6
8
7
4
3
5
9
Total
D.A.
Increase
 
Pay D.A.
Total
Pay
Total
Interim
Relief
T  %
Increase
350      148      498     45       343      4 00    157      357       59         12
573      153      528     44       372      423     163      587       59         11
4 00     157      357     45       6 02    430      166      616       59         11
425      162      587     44       631      500     173      673       88         15
430      166      616     74       690     55°      181      731     113         19
300      173     675      71       746     6 00     187      787     112         17
350      181     73i      71       802     630      187      837     106          15
6 00     187     787      63       83a     700      187      887     1 00        13
                                           750      187      937
                                            800     193      993

TABLE  23
Grade No.  Categorut  covtnd
Prctent  :  34  Chief  Artist
New:  32
Planner
Junior  Officer
Chief  Time  Keeper
. Junior  Accountant
Section  Officer
^ ^ _ _^  _ ^ _ _ __  Security  Inspector
Present  scale
New  scale
Rs.  300—25—500—50—"so
Rs.  460—23—560—40—720—50—870
1
2
8
6
IO
4
5
3
9
7
D.A.
Total
Total
Pay
Pay
D.A.
Total  :
Increase
Interim
Relief
T  % Increase
3 00
460
85
102
490
143
443
47
545
33

Jtac.  "<10]  THE  GAZETTK  OF  IWfHA  BX^RAORDINAHY  333
I
2
10
6
8
4
5
7
9
3
 325      145     470      48       318      485      8j       570      1 00         31
 35°      I48     498      45      343       510      90       600      102          20
                                                                                 •
 375      153     328      44       57a      535      90       625       97          18
400      157      557      45       602      560      90       650       93          17
425      162      3"7      44       631      600      90       690      103         18
45O      166      616      44       660      640      90       73°      114         19
475      170      645      45       690      680      95       775      130         20
500      175      675      43       718       730     95       815      140         31
350      I8l                        802

8<$5
                  731       71                770      95                 134         IS
600      187      787      65        85*      830      95       915      ia8          16
6 30     187       837      5°       887      870      9$       965       ia8         15

TABLB  34
Grade No.
Caugoriu covertd
Present  :  35
Flight  Purser
Senior  Check  Purter
New:  33  Assistant  Chief  Flight
Purser.
Present  tcale
New  scale
Rs.  350—23—550—30—650
Rs.  485—25—560—40—720—50—870
1
6
1
10
8
3
7
5
4
9
Pay
Total
D.A.
Total
Pay
D.A.
Total
Increase
Interim
Relief
r  %
Increase
350
570
148 498
543
45
85
72
485
 
14510
528
90
600
573
72
153
'  44
375
14
602
90
400
68
625
12
157
557
45
535


324  THE  GAZETTE  OF  INDIA  KXTRAORDINAEY  [PAHT  II—
10
I
2
4
6
7
8
9
3
5
90
11
560
650
16a
425
63
631
44
587
12
90
(56o
450       166      616      44                6 00               690       74
     •
475      170      645       45       690      640      90       730       85          13
5 00      175      675      43       718      680      95        775      1 00         15
         178      7O3      43        746      7 20     95       815       1 12        16
5*3
55°      181      731      71        8 02   •  770     95        865      134          18
6 00     187      787       65       853      820      95       915       128          16
650      187       837      5°       887      870      95        965      ia8          15

NOTE.—Employect  in  this  grade  get  "n  additional  jet  allowance  of  Rs.  50/-  p.m.  T he
percentage  of  increase  in  their  total  emolument*  is  therefore  substantially  higher
thin  the  fijuxe*  in  column  10  abore.
TABLE  25
Gradt  No.  CaUgories covtrtd
Present :  27 (0  A.M.E.  Grade  II, Radio  A.M.E.
Grade  II, Technical  Officer.
New  ;  24.
Preien:  scale
New  scale  (Agreement)
R".  600—50—900—EB—50—1000
R".  750—50—1000—100—•1200
10
2
6
8
1
4
9
3
7
5-
Total
Total
D.A.
Increase
D.A.
Pay
Total I
Pay
Interim
Relief
%
Increase
750
150
852
600
787
187
187
65
19
937
800
192
887
992
650 „
837 50
19
155
ik.187
198
850
161
1048
18
887
700
887
187
••

Sue.  3 (11)]  THE. GAZETTE  OF  INDIA  EXTRAORDINARY  325
I
10
2
6
8
3
9
7
5
4
900
1105
168
18 750 187 937
305
937
192
950
800
992
211
169
1161
WJ
17
1000
1217
850
J048
1048
16 19s
"7
169
••
203
1100
127
900
1105
1105
222
20
1337
1161
1100
1161
an
276
1437
950
"37
M
IOOO
"7
' 1317
1317
TABLE  16
Orad* No.  Categories covtrtd
Pre"eM:  at  A.M.E.  Grade  I,  A.R.M.E.  Gride  I,
Senior  Technical  Officer.
Now:  25
Present scale
N ew  idle (Agreement)
y
Rs. 750—50—1000—400—1300
Rs. 1000—100—1500
10 2
8
1
6
A
7
3
5
9
I Total
Totil
Total
D.A.
Increase
Pay
D.A.
P"y
Interim
Relief
T  %
Increase
217
280
30
IOOO
1217
187 T937
937
75°
992
237
IIOO
1327
800
T992
F192
335
34
1200
104S
1048
198
830
237 1437 389
37
1300
40 IIOJ
1105
205
442
900
247 1547
1400
1657
1161
1161
211
950
496
257
 
43550
217
1217
1500
1767
1000
1317
267
45


j2tf  TOT GAZJC1T* Of  TfTtXA ERTRACTRDIWAKT  t&jart li'*-
I
2
3
3  6
4
7 S 9  10
1327
237 1327
i too
237
I2OO
1437
•• M37
247
1300
1547
1347
••
TABLB  27
Gradt  No.  Caugoriu  covtrtd
Present  :  29  Navigator
Flight  Engineer
New  :  26
P r o em  teak (Navigator)
N ew  scale
Rs. 950—50—1050—100—1450
Rs. 1270—50—1320—60—1500—IOO—1700
1
10 2
8
6
4
3
3
7
9
Total
Total
Total
Increase
Pay
D.A,.
Pay
D.A.
Interim
Relief
%
Increase
1370
1161
1270
IOO
209
211 1161
18 95O
• •
100
1217
1320
217 1217
1420
203
1000
17
1380
1272
1272
1480
208
100
1050
222
16
••
100
1130
1440
1382
1382
1540
158
232
14
-•
100
1250
1492
1500
242
1600
108
1433
7
••
1602
100
352
1602
1600
1700
98
6
1350
1800
100
1450
1712
1700
1712
88
262
5
N ew scale
Present  scale (Flight  Engineer)
Rs. 1270—50—1320—60—1500—100—1700
Rs. 750—-30—1000—100—1300
1
10
6
3
8
5
9
4
3
7
100
1270
1370
187
75o
• •
46
937
937
433
800
1320
1420
100
993
428
192
993
43
830
1048
1380
1048
1480
100
198
432
4i
205
100
900
1105
1105
1440
1540
39
435
1161
1161
1500
211
1600
100
950
38
439
1600
217 1217
1217
1700
40
100
1000
• •
483
1700
227 1327
1800
100
IIOO
I$37
36
473
1800
100
1200
1700
237 1437
363
25
H37
1300
1700
1800
16
100
247
1547
1547
353
NOTE.—Employees  in  this  grade  get  an  additional  jet  allowance  of  Rs.  450  p.m.  The
percentage  of  increase  in  their  total  emoluments  is  therefore  lubntanrUlly  high er
than  the  figures  in  column  10  above.

aut  fff">]  im  GABI***  df  IMCIA ismiAaitDQrAirr  3 i7
TABLE  38
(Trait  JVo.  Catigorbt  covtrtd
Present  1  30
Senior  Inspector/
Assistant  Superintendent.
New  )  27
Proem  scale
New  scale  (Agreement)
•
Rs.  IOOO-IOO-IJOO
Rs.  1200-100-1700
I
IO 2
6
3
7
8 9
4
5
Pay
Total
Total  Increase
D.A.
Total
D.A.
Pay
T  %
Interim
Relief
Increase
3 30 1000
18 2 17
1217
337
1217
1200
••
M37
1100
2 27
2 30 1327
1300
17
1327
347 1547
••
33O 1200
1637
1400
15
1437
357
237 1437
22O 1300 247
1300
14
267 1767
1547
1547
22O 1400
1657
277 1877
1657
1600
13 257
13
2 20 1500
1767
1700
267
287
1767
1987
TABLB  29
Gradt  No.
Categorits  covered
Present  :  31
Captain  (First  Officer)
New  t  38
Present  scak
New  scale  (Agreement)
Rs.  1030-IOO-KS30
Rs.  1050-100-1430
1
2
10
8
6
3
4
3
9
7
 
Pay D.A.
Total
D.A.
Total
Total
Pay
Increase
Interim
Relief
Increue
3 33 1382
8
2 42
1382
1492
no 1050 100
E.B.
1050
200
2 42
1492
2 33
110
1492
1603
7
••
1150 100
E,B.
1150 200

328  THEGAZETTK  OF INDIA  EXTRAORDINARY  ; [PART  H—
i
2
10
6
8.
7
3
4
9
5
1002
1713
1602
no
3 63
7
••
IOO
1250
300
E.B.
1712
36a
no
1822
6
1712
2 72
••
1350
.100
1350
200
H.B.
2 72
1932
no I822
6
1822
2 83
••
1450
100
1450
200
H.B.
3042
1 93
1550
200
2150
3 00
1650
300
TABLE  30
Grud*  No.
augorui  coomrti
Present  ;  33
J  "~X
Mew7:  29
Senior  Captain  (Commander) _ ^ _ _ _ _ ^ _ __
Present  scale
New  scale  (Agreement)
Ri.  1500-100*2000
RB,  1300-100-1800
10 2
1
6
8
9 3
7
4
5
Pay D.A.
Increase
Pay
Total
Total
D.A.
Total
%
Incieate
Interiin
Relief
2300
3 00
377 1877
1877
433
"3
••
1300
100
300
1500
200
300
E.B.T CP.
31
300 3400
1987
4i" 1987
i\  187
••
E.B.3 OP.3
1400
100
200
1600
200
300
300 2500
3097
3097
403
19 a"7
••
1500
100
300
1700
200
300
E.B.
CP.
2600
400 3200
3 00
300
3200
18
••
1800
200
300
1600
100
200
E.B.
CP.
2700
3 00
33OO
3 00
2300
400
17
••
1700
100
200
1900
200
300
E.B.
CP.
2800
3 00
300
24OO
•  400
r  3400
17
••
1800 100 200
2000 200 300
E.B. CP.

Sac.  3(J1)]  THE  GAZETTE  OF  INDIA  EXTRAORDINAilY  329
55.  The  following  table  shows  the  comparative  salaries  of  seven workmen  at  various  grades  and  the  salaries  proposed  by  me  now.  From this  table  it  will  be  clear  that  the  wage-scales  have  been  substantially increased  from  the  time  the  matter  was  referred  to  the  Committee  of Aribitration  in  1959.  It  will  also  be  observed  that  the  demands  then made  by  the  workmen  of  the  various  grades  were  not  conceded  by Shri  Vyas  but  the  settlement  reached  on  May  9,  1960,  was  a  close approximation  to  those  demands  and  the  increases  now  proposed adequately  compensate  the  rise  in  prices  at  various  levels.  The  present demands  would  seem  to  be  out  of  all  proportion  to  the  rise  in  trie  cost of  living  and  the  needs  of  the  'workmen,  The  last  column  gives  the percentage  of  increase  in  wages  of  the  various  workmen.

3
3
Comparative  rtatemaot  of  solarle*  and  rtiai*—i  allowance  of  seven  categories  of  workmen  from  1939 onwards
o
Grades
Vvas  Award
Present  demand Proposed
Percentage Increase  from Before V y" Award
•Demanded then
Settlement of of  9-5-60
C0I.5
1
2
6
8
3
4
7
5
T H E
 
Afin.  A to:.
Min.  Max.
Min.  Max.
Min.  Max.
Min-  Max.
Min.  Max.
Min.  Max.
1. Cleaner
50-3-59-4-63
50-3-59-4-75-5- 140-10-170-15- 100  - 5-  150 Scale
.  39-3-51-4-63
114-4-150-155
(io yrs)
215-20-315
90
G A Z E T T E
40 + 43  40+43
D.A.
10  20
189  334
73  89
65  70 53+5  58+5
O F
I
124  175 123  179
TOTAL  .
329  649 I65  220 90-43  103 + 43
.  92+5  121 + s
34  23
N D
I
A
2.  Cook
70-5-100-10-120
70-5-100-10-120
I3CP-5-I50-IO-200 Scale
125-5-180-10-230
.  504-74  (6 yn)
170-10-190-15- 250-20-370
40+43  42+43
230  378
10  20
81  98
D A.
534-5  62 + 5
65  70
E X T R A O R D
29  19 110 + 43  162+43
400  748 195  273 TOTAL  .
135  250 151  218
I .  103 + 5  136 + 5
4.  Jr. Clerk
N A R Y
I5O-IO-2OO-15- 90-5-100-10-150- 140-10-190-13- 90-5-100-10-150
Scale
.  80-5-100-10-150 15-210
-15-240
245-2O-345
-15-240
335
210-15-200-20- 400-30-580-50- 680
[70  io
10
270  456
45 + 43  60+43
89  131
•  65 + 5  100+3
D.A.
P A R T
 33  15
480  1136 220  425
150  325
I I TOTAL  .
•  145 + 5  310 + 5 135 + 43  3O0 + 43
179  37i
—

S E C
.
Before  Vyas
Settlement of
Proposed
•Demanded Vyas  Award
Grades
Present  demand
3
'
then
9-5-60
Percentage Increase  from C0L5 Award
(
H
) ]
2
i
6
3
3
5
4
7
Mm.  Max.
Min.  Max.
Min.  Max.
.  Mm.  Max.
 
Min.  Max. Afin.  Max.
Min.  Max.
5. Jr.  Progress  Clerk
100-10-150-15-
100-10-150-15-
.  90-5-100-10-150
Scale
-15-210
195-20-255
195-20-255
225-15-300-20- 400-30 5 So-50-
170-10-190-EB- 15-280-EB-20-
180-10-200-15- 245-20-365
400-25-475
680
T H E G A Z E T T E
20
70  80 50+43  64+43
280  456
69 + 5  100 + 5
DA
93  '  134
O F
250  445
193  389 505  1136
TOTAL  .
30  14
190  475
•  159 + 5  310+5 I5O--43  3i9-r43
I
N D
I
10.  ST. Progress  Clerk
A
300-20-320-25-
150-15-210-20-
.  140-10-150-15-
Scale
245-20-485-25- 510 225-20-325
395-30-575-50-
150-15-225-20- 365
35O
210-15-285-EB-
20-405-30-525-
EB-50-625
825
20
.  83 + 5  122 + 5
106  151
53 + 43  88+43
75  9° D.A.
334  435
E X T R A O R D
I
320  600
634  1310
230  625
256  516
25  16 TOTAL  .
•  223 + 5  447 + S 203+43  438 + 43
N A R Y 16. Receptionist
260-20-340
410-25-510 .  200-15-260(1) 260-20-360
310  625
Scale
450-25-500-50- 950
240-20-300(11)  •
D.A.
20
• 85  90 .  98  no 106+5  118 + 5 65 + 43  63 + 43
135  146 397  505
25  24 298  370 .  346+5  418 + 5
230  625
495  600 TOTAL  .
395  486 847  1455
325+43  423+43
 
3 3 1

(JJ
Grades
Vyai  Award
Proposed
Present  demand
•Demanded then
Before  Vyas Award
Settlement of 9-5-60
Percentage Increase  from CoL  5
2
i
8
6  •
3
7
5
4
Afi'n.  -A/ax.
Min.  Max.
Min.  Max.
Min.  Max.
Min.  Max.
Min.  Max.
Min. Max.
21.  6Aorye  Hand
O.
250-25-450-50-
Scale
500-50-1000-100
-1200
435-25-560-40- 720-50-820 325-20-405-25- 605
600
.  245-20-34S-25- 445
210-15-285-EB-
20-405-30-525-
EB-625
30
.  107+5  124 + 5
D.A.
187
82 + 43  75 + 43
417  505 85  95
133
520  915 407+43  680 + 43
917  1705
36  16 TOTAL  .
230  625
787
383
•  352-J-5  569+5
>
*D.A. was demanded  at  the  rate of R&. 40 or  50% whichever  is higher  for  the  salary upto  Rs.  100 plus varying percentages  for  higher  slabs  of  the
salary  plus  Rs.  2-8-0  for  every  rise  of  10 pts.  above  250.
(base  1939=100)
 
f

Sic.  8(11)]  THE GAZETTE  OF  INDIA  EXTRAORDINARY  333
(ii)  Item  No.  3:—i-weekly  rates  of  payment  of  grade  pay.
56.  The  demand  under  this  head  is  made  by  Party  No.  2  only  and it  is  claimed  that  wages  should  be  paid  weekly  by  treating  the  monthly wage  as  representing  the  emoluments  of  a  period  of  4  weeks.  This  would obviously  have  the  result  of  the  workers  becoming  entitled  to  13  months' salary  each  year.  The  demand  is  resisted  by  the  Corporation  and  it  ia contended  that  the  payment  of  wages  every  month  has  been,  deter- mined  by  the  Corporation  under, the  provisions  of  Section  4 of  the  Payment of  Wages  Act  which  is  in  the  following  terms:
"4.  Fixation  of  wage-periods.—  (1)  Every  person  responsible  for the  payment  of  wages  under  Section  3  shall  fix  periods  (in this  Act  referred  to  as  wage-periods)  in  respect  of  which such  wages  shall  be  payable.
(2)  No  wage-period  shall  exceed  one  month."
57.  The  Counsel  for  Party  No.  2  has  not  advanced  any  cogent  argu- ment  for  changing  the  mode  of  payment  of  salaries  which  is  obviously intended  to  increase  the  salaries  in  an  indirect  way  because  by  this means  the  workers  will  get  13  months'  salary  per  year  whatever  the quantum  of  salaries  determined  by  this  Tribunal.  I  see  no  substance whatsoever  in  this  demand,  nor  has  it  been  shown  on  what  ratio  It  haa been  claimed.  I,  therefore,  reject  it.
(iii)  Item  No.  4:  Dearness  allowance.
58.  While  discussing  Item  No,  1,  I  gave  my  reasons  for  merging  a part  of  the  dearness  allowance  with  the  basic  pay.  This  will  Involve some  extra  financial  burden  on  the  Corporation  because  the  impact  of dearness  allowance  is  felt  in  various  ways,  e.g.,  on  Provident  Fund, Gratuity,  Travelling  Allowance,  Overtime,  Holiday  Compensation,  Meal Allowance,  Shift  Allowance,  Settling  down  allowance,  Resettlement  allow- ance  and  clothing  allowance  because  for  these  purposes  the  pay  does not  ordinarily  include  dearness  allowance  and  the  merging  of  some  por- tion  of  the  dearness,  allowance  will  have  the  result  of  suddenly  enhanc- ing  the  basic  pay  and  thus  increasing  the  liability  under  these  heads. The  extra  burden,  however,  is  not  considerable.  As  far  as  Provident Fund  is  concerned,  it  has  already  been  decided]  to  treat  pay  as  being the  total  of  basic  pay.and  dearness  allowance  and  so  it  will  not  matter whether  the  whole  of  the  dearness  allowance  is  merged  with  or  kept separate  from  the  basic  pay  or  only  a  part  of  it  is  thus  merged.  The same  remarks  apply  to  overtime  and,  holiday  compensation.  The  quan- tum  of  gratuity  will  no  doubt  be  enhanced  by  the  merger  of  a  part  of the  dearness  allowance  into  the  basic  pay,  but  I  see  nothing  unjust  in this.  In  other  countries  also,  gratuity  schemes  exist  and  there  too the  graiuity  is  calculated  on  the  basis  of  pay,  and  since  there  is  no separate  dearness  allowance  in  those  countries,  the  amount  of  gratuity has  gone  up  each  time  the  pay  has  been  increased.  The  other  factors do  not  add  an  appreciable  amount  to  the  financial  burden  of  the  Cor- poration  and  the  merging  of  a  portion  of  the  dearness  allowance  Into the  basic  pay  will  make  only  a  small  addition  to  the  total  expenditure of  the  Corporation.

334  THE GAZETTE  OF INDIA  EXTRAORDINABY  [PAHT II—
59.  Dearness  Allowance  will  be  payable  to  the  workers  at  various stages  according  to  the  following  table:  v
Bask  Pay  Dearness  Allowance
From  ioo  to  149- „  150  to  199.
65 7°
„  200  to  299.
75
•„  300  to  399.
80
400  to  499.
85
„  500  to  649.
90
„  650  to  8jy.
y5
„  900  and  onwards  100
60.  The  above  table  does  not  apply  to  workmen  represented  by- Parties  4  and  5  as  they  are  governed  by  the  respective  agreements  con- cluded  by  them  with  the  Corporation.
(iv)  Item,  No. 5:  House  rent  allowance /conditions  governing  allotment
of  accommodation.
61.  All  parties  demanded  that  living  accommodation  should  be  pro- 'vided  for  the  employees  of  the  Corporation  at  a  rental  of  10% of  their basic  salary,  and  whenever  such  accommodation  is  not  available,  they should  be  paid  a  house  rent  allowance  of  20% of  their  salary.  It  is contended  that  house  rents  in  Bombay  and  other  places  in  India  have gone  up  considerably  and the  employees  find  it  impossible  to  obtain  resi- dential  accommodation  in  conformity  with  their  status  at  a  reasonable cost.  Further,  it  was  claimed  that  the  allotment  of  houses  owned  by the  Corporation  should  be  on  the  basis  of  seniority,  and  in  any  event, only  10% of  the  allotment  should  be  made  by  the  Corporation  and 10%  in  consultation  with  the  employees'  representatives.  There  is  also a  demand  for  house-building  loans  at  concessional  rates  of  interest.
62.  The  present  position  is  that  there  are  about  500 tenements  which have  been  built  under  various  schemes  by  the  Corporation  and  these  are let  out  to  the  employees  at  subsidised  rents  under  the  Industrial  Hous- ing  Scheme.  The  Corporation  also  advanced  house-building  loans  at rates  of  interest  which  are  low  as  compared  with  the  market  rate3 pre- vailing.  House  rent  allowance  is  given  to  Aircraft  Maintenance  Engi- neers  who  are  posted  at  out-stations  in  India.  Employees  posted  abroad are  also  given  a  relief  in  the  matter  of  house  rent.
63.  During  the  course  of  the  negotiations  with  the  Corporation,  Party- No.  4  dropped  this  demand.  Party  No. 5  also  dropped  it  when  negotia- ting  their  settlement  of  October  15,  1965.
 
64.  The  demand  was  opposed  by  the  Corporation,  and  it  was  pleaded that  house  rent  allowance  was not  part  of  the  conditions  of  service  of  an employee  and  this  demand,  therefore,  did  not  lie  with  the  definition  of an  industrial  dispute,  and  this  Tribunal  should  reject  it  in  limine-  The same  objection  was raised  with  regard  to  the  demand  for  regulating  the allotment  of  Corporation's  houses  and the  grant  of  loans.  It  was  further pleaded  that  the  provision  of  houses  is  primarily  the  duty  of  the  State Government  or  the  local  authority  and  that  the  Corporation  cannot  be

Bic.  3(ii)]  THE  GAZETTE  OF  INDIA  EXTRAORDINARY  335
expected  to  provide  its  employees  with  houses,  and  finally  it  was  urged that  the  structure  of  the  pay  scale  of  the  employees  of  Air-India  was prepared  after  taking  into  account  the  high  rents  prevailing  in  India  and elsewnere;  there  is,  therefore,  no  justification  for  the  grant  of  house  rent allowance.
G5.  There  is  no  doubt  that  housing  is  a  matter  which  primarily  falls within  the  obligations  of  the  State  Government  or  local  authority.  Many industries  do,  however,  provide  accommodation  for  their  employees though  the  nature  of  this  benefit  is  conditioned  by  the-cost  factor  which, in  Bombay,  with  its  limited  land  and  high  prices,  may  well  present  a retarding,  if  not,  an  insuperable  force  in  the  way  of  building  houses  and tenements.  The  Corporation  has  already  provided  about  500  tenements to  its  employees  at  subsidised  rents  and  is  planning  to  build  more houses.  House-building  loans  are  also  granted  at  concessional  rates  of Interest.  The  cost  of  living  index  takes  into  consideration  the  item  of house  rent.  When  this  matter  was  discussed  in  an  earlier  chapter,  I referred  to  the  mode  of  computing  the  minimum  wage.  The  minimum wage  has  been  increased  on  account  of  the  rise  in  prices  and  the  rise  in prices  includes  a  rise  in  house  rent.  Therefore,  as  the  rise  in  the  cost of  living  index  has  brought  about  a  rise  in  salaries,  the  new  salaries  do take  into  account  the  higher  rents  now  prevailing.  On  behalf  of  the Unions,  the  instance  of  the  Life  Insurance  Corporation  of  India  was cited.  It  was  alleged  that  the  employees  of  this  Corporation  are  paid  a house  rent  allowance.  But,  the  salary  scales  of  those  employees  are  much lower  than  the  salary  scales  of  the  employees  of  Air-India  and  the  total emoluments  of  the  Life  Insurance  Corporation  employees,  inclusive  of house  rent,  do  not  compare  favourably  with  the  salaries  of  Air-India employees.  I  have,  by  means  of  this  award,  substantially  increased  the total  emoluments  of  all  workmen  and'  it  seems  to  me  that  there  is  no further  scope  for  an  increase  on  many  of  the  individual  items.  The house  rent  allowance  is  clearly  one  such  item  because  it  forms  part  of the  normal  budget  upon  the  basis  of  which  the  quantum  of  salary  is fixed.  In  view  of  the  fact  that  whenever  an  employee  is  sent  to  an  out- station  he  is  compensated  by  the  payment  of  house  rent  allowance,  and  in view  of  the  facilities  which  are  provided  by  the  Corporation  both  in  the manner  of  houses  at  subsidised  rents  and  house-building  loans,  I  find  no force  in  the  demands  made  on  this  score.  Both  Parties  No.  4  and  5,  at the  time  of  negotiating  their  agreements,  must  have  seen  the  wisdom  of abandoning  this  demand  and  they  dropped  it.  I  would,  therefore,  decline to  entertain  the  demand  under  this  item  and  reject  it.
(v)  I\em  No.  6:  Duty  allowance.
66.  Certain  categories  of  employees  working  in  the  Engineering Workshop,  are  being  paid  a  special  allowance  called  "Duty  Allowance" which  is  computed  at  10  per  cent  of  their  basic  pay.  This  provision  is contained  in  paragraph  12  of  the  Establishment  Orders  which  is  in  the following  terms:
"12.  Duty  Allowance.—Duty  Allowance  at  10  per  cent,  of  basic will  be  granted  to  the  following  categories  of  staff  who  are required  to  observe  the  working  hours  of  the  Engineering Workshops:
 
(1)  Progress  Clerks, (2)  Inspection  Clerks,

336  THS!  GAZFTTE  OF  INDIA  EXTRAORDINARY  [PAST  II-
(3)  Time  Clerks  working  in  Maintenance  shifts,  and
(4)  Storekeepers  (Junior,  Senior  and  Sectional)  of  the  Stores Department  who  were  on  the  pay  rolls  of  the  Corporation as  on  the  7th  November,  1960."
67.  The  above  paragraph  is  a  result  of  certain  agreements  arrived  at between  the  workers  and  the  Corporation.  Its  history  goes  back  to  1951 when  an  industrial  dispute  between  Air-India  Limited  and  its  workers was  settled  by  an-agreement.  By  this  agreement,  the  hours  of  work  of the  clerical  staff  were  fixed  at  36  hours  per  week.  The  Progress  Clerks, however,  who  used  to  work  only  36  hours,  were  not  affected  and  to compensate  them  for  the  extra  work,  it  was  agreed  to  pay  them  a  duty allowance  of  10  per  cent,  of  their  basic  pay.  In  1959,  there  was  another demand  for  duty  allowance  for  all  non-technical  staff  working  in  the Engineering  and  Stores  Department  who  were  required  to  work  42  hours per  week  instead  of  their  normal  working  hours  of  38  hours  per  week. This  dispute  was  settled  by  an  arbitration  award  on  November  1,  1960, which  provided  that  the  duty  allowance  paid  to  the  Progress  Clerks would  also  be  paid  to  the  Stores  Clerks,  Inspection  Clerks  and  Time Clerks  working  in  the  Maintenance  Shifts.  There  was  another  agree- ment  on  November  30,  1961,  which  re-affirmed  the  previous  agreements and  provided  that  Inspection  Clerks  and  Time  Clerks  working  in  the Maintenpnce  Shifts,  will  be  paid  duty  allowance  at  the  same  rates  as  the Progress  Clerks.  The  Junior,  Senior  and  Sectional  Storekeepers  who were  OP the  rolls  of  the  Corporation  on  November  7,  I960,  were  also brought  within  the  scope  of  this  amenity.
68.  A  comprehensive  demand  is  now  being  made  by  Parties  No.  2  and 3,  and  the  claim  of  Party  No.  2  is  that  all  non-technical  staff  whether working  in  the  Engineering,  Stores  or  other  Departments,  and  whose hours  of  work  are  similar  to  those  of  the  employees  in  the  Engineering shifts,  should  be  paid  duty  allowance  of  20  per  cent  of  their  basic  pay. This  would  mean  that  all  non-technical  staff  who  work  more  than  36 hours  a  week,  will  be  entitled  to  have  their  basic  pay  increase  by  20  p^r cent.  It  is  further  claimed  that  this  increase  should  be  taken  into  consi- deration  when  calculating  the  dearness  allowance.
69. The  demand  of  Party  No.  3 is  that  all  members  of  the  non-technical staff  who  are  required  to  work  more  than  38  hours  per  week  should  be paid  duty  allowance  at  the rate  of  20% of  their  basic  pay  and  this  allowance should  form  part  of  the  basic  pay  for  the  purposes  of  other  calculations.
70. The  demand  is  resisted  by  the  Corporation  on  the  ground  that  there is  no  justification  for  it  and  even  the  employees  who  are  being  paid  duty allowance  now,  are  not  entitled  to  it  on  any  reasonable  ground  and  the whole  concept  of  duty  allowance  needs  to  be  revised  and  no  one  should be  paid  any  duty  allowance.
 
71.  Duty  allowance  is  paid  to  four  categories  of  workmen  only.  Of these,  two  viz..  Progress  Clerks  and  Inspection  Clerks,  are  to  be  found solely  in  the  Engineering  Workshops.  They  work  42-98  hours  per  week which  is  considerably  more  than  other  clerks  in  the  same  Department  or in  any  other  Department  are  required  to  do.  For  this  reason,  they  are paid  a  special  duty  allowance.  Time  Clerks  working  in  the  Maintenance Shifts,  who  are  required  to  observe  the  working  hours  of  the  Engineering

Ssc.  3
Workshops,  are  also  paid  duty  allowance  because  they  are  required  to work  for  longer  hours  and  their  pattern  of  hours  is  the  pattern  of  the Engineering  Workshops.  Time  Clerks  working  outside  the  Engineering Workshops  do  not  work  for  the  same  number  of  hours  nor  do  they  observe the  same  unusual  pattern  of  shifts.  They  are,  therefore,  not  paid  any  duty allowance  evon  if  sometimes  they  have  to  work  for  more  than  36  hours. Normally  speaking,  if  a  Time  Clerk  works  for  more  than  36 hours,  he  gets overtime  pay.  Take  the  instance  of  the  Timekeeper  in  the  Personnel Department.  His  normal  hours  of  work  are  34-38  per  week.  Any  work beyond  this  norm  will  entitle  him  to  overtime  pay.  There  is  no  justifi- cation  for  his  being  paid  a  duty  allowance  also.  With  regard  to  the Storekeepers,  the  duty  allowance  is  being  withdrawn  in  the  case  of  thos" who  joined  the  Corporation  after  November  7,  1960.
72.  The  whole  justification  for  duty  allowance  lies  in  the  fact  that  per- sons  to  whom  it  is  being  paid,  work  for  longer  hours  and  also  observe a  somewhat  unusual  schedule  of  work.  There  is  no  justification  for  ex- tending  this  facility  to  others  who  are  not  required  to  work  in  the  same way  or  to  the  same  extent.  In  view  of  this,  the  demand  of  Parties  No.  2 and  3  seems  to  be  wholly  unjustified.  It  may  be  observed  that  the  hours of  work  of  the  Corporation  personnel  do  not  exceed  the  statutory  maxi- mum  of  40  hours  per  week  and  many  of .the  persons  on  whose  behalf  thi* demand  is  being  made,  work  for  considerably  fewer  number  of  hours.  I accordingly  reject  this  demand  in  toto.
(vi)  Item,  No.  7:  Machine  allowance.
73.  Certain  categories  of  workmen,  who  operate  computors  and  other complex  machines  as  part  of  their  duty,  are  paid  a  machine  allowance  at the  rates  specified  in  paragraph  11  of  the  Establishment  Orders,
74.  Parties  No.  2  and  3  on  whose  behalf  alone  a  demand  under  this head  has  been  made,  claim  that  the  machine  allowance  should  be  in- creased  to  Its.  25/- for  all  employees,  and  a  number  of  other  workmen  who operate  machines,  should  be  paid  this  allowance.  Party  No.  2  says  that Teleprinter  Operators,  Telephone  Operators,  Typists,  Stenographers  and Steno-typists,  should  also  be  paid  this  allowance.  Party  No.  3  .claims that  Punchers  and  Machine  Operators  in  the  Accounts  Department  and workmen  operating  other  types  of  machines  liEe  Duplicators,  Teleprinters, Burrough  Machine,  Friden,  Franking  Machines,  Cameras  and  Calculating Machines,  should  be  paid  machine  allowance.
75.  This  demand  is  resisted  by  the  Corporation  and  it  is  pleaded  on behalf  of  Air-India  that  there  Is  no  justification  for  paying  the  machine allowance  even  for  those  persons  who  are  in  receipt  of  it  under  paragraph 11  of  the  Establishment  Orders.
 
76.  I  paid  a  visit  to  the  offices  of  Air-India  and  saw  some  of  the  com- puters  being  worked.  The  persons  who  punch  and  work  these  computors and  comptists,  are  already  being  paid  a  machine  allowance.  There appears  to  be  no  justification  for  extending  the  provisions  of  paragraph 11  of  the  Establishment  Orders  and  awarding  machine  allowance  to Teleprinter  Operators,  Typists  and  Steno-typists,  They  operate  these machines  as  a  part  of  their  duties  and  their  pay  scales  arc  fixed  on  the assumption  that  they  know  how  to  operate  these  machines  and  will  be operating  them  in  the  normal  course  of  their  duties.  On  behalf  of  Party No.  2  it  was  argued  that  some  categories  of  workmen  are  being  paid  this

3 38  THE  GAZETTE  OF  INDIA  EXTRAORDINARY  [FART II—
machine  allowance  in  the  Indian  Airlines  Corporation  and  the  machine allowance  in  that  Corporation  was  increased  to  Rs.  25/-  per  mensem  with effect  from  October  1,  1963.  I  can,  however,  find  no  justification  for enlarging  the  scope  of  paragraph  11  of  the  Establishment  Orders*  and  I, therefore,  reject  this  demand.
(vii)  Item  No.  ?:  Transport/car/conveyance  allowance
77.  Certain  categories  of  the  Corporation's  employees  enjoy  transport facilities  either  in  the  form  of  transport  allowance  or  in  the  form  of  free or  subsidised  transport.  There  is  a  demand  for  the  extension  and  further liberalisation  of  this  amenity.
78.  The  present  position  is  that  some  of  the  officers  are  paid  a  monthly transport  allowance.  The  members  of  the  flight  crew  are  provided  with free  transport  between  their  residence  and  the  Airport  whenever  they are  scheduled  for  flight  duty.  For  a  large  number  of  other  employees, subsidised  transport  is  provided  from  the  two  railway  stations,  Santa Cruz  and  Kurla  upto  the  Airport.  Further  demands  in  this  behalf  were made  by  Parties  2,  3 and  5.  As  far  as  Party  No.  6 is  concerned,  the  only plea  raised  on  their  behalf  was  that  the  present  transport  facilities  at Bombay  should  continue  to  remain  as  at  present.  Party  No.  5  settled this  matter  and  the  settlement  has  been  embodied  in  the  agreement  arrived at  on  October  15,  1965.  The  agreement  is  in  the  following  terms:
"Conveyance  Allowance shall  he payable  ti the employees  at tho following  rates  :
Assistant  Superintendent  Rs. ioo/-
Aircraft  Maintenance Engineer,  Grade  I/Aircraft Radio  Maintenance  Engineer, Grade  I  Rs. 50/-
Airciaft  Maintenance
Engineer,  Grade  II/Aircraft Radio  Maintenance  Engineer, Grade  II.  Rs. 5°/"
The  remaining  demands  made  by  Party  No.  5  were  dropped.
79.  On  behalf  of  Party  No.  2  it  was  pleaded  that  (i)  all  employees other  than  Cabin  Attendants  who  are  already  provided  with  free  trans- port,  should  be  paid  a  transport  allowance  of  Rs.  25  per  month,  (ii)  all Senior  Check  Flight  Pursers  should  be  paid  a  conveyance  allowance  of Rs.  250/-  per  month,, and  (iii)  in  addition  to  the  existing  transport  faci- lities  for  Cargo  and  Cabin  Attendants,  the  Corporation  should  provide free  transport  to  them  for  all  official  purposes  including  attendance  for training.
 
30,  The  plea  of  Party  No.  3  is  that  it  is  primarily  the  responsibility  of the  Corporation  to  bring  the  employees  from  the  nearest  railway  station to  the  place  of  work  and,  therefore,  all  workers  should  be  provided  with free  transport  and  should,  in  addition,  be  paid  a  transport  allowance  of Rs.  20/-  per  month.  It  was  argued  on  their  behalf  that  the  workers  of the  Indian  Airlines  Corporation,  under  Rule  30  applicable  to  them,  are paid  transport  allowance  varyin  from  Rs.  10/-  to  Rs.  50/-  per  month and  that  similar  allowance  should  be  paid  to  workmen  of  the  All-India Corporation.  Party  No.  3  has  also  raised  a  protest  against  the  raising

SEC.  3(U)]  THE  GAZETTE  OF  INDIA  EXTRAORDINARY  339.
of  the  charges  for  subsidised  transport  from  Santa  Cruz  and  Kurla  rail- way  stations.
81.  These  demands  were  opposed  by  the  Corporation  and  it  was urged  that  it  is  not  the  duty  of  the  employer  to  bring  the  employee  Lu the  place  of  business  and  that  the  wage-structure  of  the  Corporation already  makes  ample  allowance  for  the  incidental  expenses  incurred  in travelling  to  and  from  the  workmen's  place  of  business.  The  increase in  the  charges  for  subsidised  transport  was  attributed  to  a  rise  in  opera- tional  costs.  The  matter  was  agitated  before  the  Committee  of  Arbitra- tion  in  1960,  and  it  was  then  pointed  out  that  although  the  Union,  i.e., Party  No.  2,  was  not  consulted  when  the  charges  were  raised,  the  Cor- poration  was  fully  justified  in  increasing  the  rates  owing  to  the  increase in  cost  as  this  was  done  having  regard  to  the  recommendation  of  the National  Industrial  Tribunal  in  the  case  of  the  Indian  Airlines  Corpora- tion.  The  Corporation  also  filed  a  statement  (M-57)  showing  the amount  of  subsidy  paid  to  its  Transport  Department.  The  subsidy  has increased  from  Rs.  1,26,702/-  in  the  year  195&-60  to  Rs.  1,97,090/-  in  the year  1963-64.  The  workers  are  charged  a  sum  of  Rs.  6-50  from  the  Kurla railway  station  and  Rs.  3-25  from  the  Santa  Cruz  railway  station,  per month.  This,  according  to  the  Corporation,  is  considerably  less  than  the amount  charged  by  the  Bombay  Electricity  Supply  Undertaking  for  the same  journeys.  The  Corporation  further  submits  that  some  officers  are paid  a  conveyance  allowance  but  this  allowance  is  not  solely  for  the  pur- poses  of  bringing  them  from  their  residence  to  the  place  of  work  and there  is  no  analogy  between  the  privilege  enjoyed  by  these  officers  and the  remaining  workmen.  With  regard  to  the  claim  of  Party  No.  6,  the Corporation  has  denied  any  intention  on  its  part  to  withdraw  the  trans- port  facilities  available  to  the  various  categories  of  employees  at  present.
02.  It  was  submitted  by  the  Corporation  that  although  transport allowance  is  paid  by  the  Indian  Airlines  Corporation  to  some  of  their employees,  the  total  emoluments  of  their  workmen,  including  the  trans- port  allowance  for  similar  categories,  are  less  than  the  total  emoluments of  workers  in  the  Air-India  Corporation  and,  therefore,  the  payment  of any  transport  allowance  by  the  Indian  Airlines  Corporation  cannot  be cited  as  a  justification  for  the  payment  of  transport  allowance  to  the workmen  of  Air-India.  No  evidence  regarding  the  payment  of  trans- port  allowance  by  any  other  industry  in  Bombay  or  elsewhere  was  pro- duced  before  me.
83.  Transport  allowance  is  being  paid  only  to  some  categories  of  work- men  because  of  the  peculiar  nature  of  their  work  or  their  status  and  there appears  to  me  no  reasonable  justification  for  extending  this  amenity  or liberalising  it  further.  I  may  repeat  that  as  the  wage-structure  has been  revised  by  me  and  the  workmen  will  be  receiving  substantial  in- creases  in  emoluments  as  a  result  of  this  award,  and  since  the  wage  of a  workman  takes  into  account  the  money  which  he  has  to  spend  on  trans- port,  I  am  not  prepared  to  accept  the  demand  of  Parties  No.  2  and  3 and  I  accordingly  reject  it.
'
(viii)  Item  No.  U;  Jet/hazard  allowance  for  ground  staff.
 
84.  A  demand  under  this  head  has  been  made  by  Parties  No,  2,  3  and 5  Party  No.  5  dropped  it  during  its  negotiations'with  the  Corporation which  culminated  in  the  agreement  of  October  15,  1965  and  the  demands

340  THE GAZETTE  OF INDIA  EXTRAORDINARY  [PAKT II—
of  Parties  No.  2  and  3  only  survive.  In  the  original  charter  of  demands the  claim  of  Party  No.  2  was  as  follows:
"All  employees  involved  in  hazardous  operations  such  as  charging of  oxygen  cylinder  bottle,  charging  of  cylinder  inside  the aircraft,  skydrol  operations,  X-ray  inspection  processes,  handl- ing  of  radio  active  material  etc.  should  be  paid  an  allowance of  Rs.  60  per  month."
In  the  statement  of  claims  filed  before  this  Tribunal,  the  demand  was enlarged  and  the  present  demand  is  set  out  in  paragraph  18  which  is  as follows: —
"(A)  All  operative  staff  of  the  Corporation  who  are  required'  to handle  or  service  jet  airplanes  including  their  run-ups should  be  paid  jet  allowance  of  Rs.  150 per  month.
(B)  All  employees  engaged  in  habardous  operations  such  as  charg- ing  of  oxygen  cylinder  bottles,  charging  of  cylinders  inside the  aircraft,  skydrol  operation,  X-ray  inspection  processes, handling  of  radioactive  materials,  etc.,  should  be  paid  a compensatory  allowance  of  Rs.  60  per  month.
(C)  Chowkidars  and  other  Security  staff  who  are  required  to carry  and/or  operate  fire-arms  including  rifle  while  on  duty should  be  paid  an  extra  allowance  of  Rs.  25  per  month.
(D)  Employees  other  than  cashiers  in  the  Accounts  Department (including  accounts  section  of  the  Traffic  Department  who are  required  to  handle  cash)  should  be  given  an  extra  allow- ance  of  Rs.  25  per  month."
85.  The  demand  of  Party  No.  3  in  the  original  charter  of  demands •waa  as  follows: —
"Hazardous  Duty  Allowance.—Employees  engaged  in  dangerous operations  and  who  are  required  to  do  hazardous  types  of jobs  should  be  paid  an  allowance  of  25  per  cent  of  their basic  pay.  Such  employees  should  also  be  provided  with special  safety  equipment  and  clothing."
This  demand  was  repeated  in  the  statement  of  claims  and  was  support- ed  by  a  statement  of  reasons  setting  out  the  various  dangers  and  risk^ which  are  involved  in  handling  jet  aircraft.  The  Corporation  opposed the  demand  and  pleaded  that  since  Air  India  is  an  all-Jet  Airline,  the scales  of  pay  of  its  various  workmen  are  conditioned  by  this  considera- tion  and  no  extra  allowance  to  ground  staff  is  admissbile,  nor  are  the "workmen  entitled  to  any  allowance  for  handling  fire-arms  or  cash  because -this  is  part  of  their  normal  duties.
 
86.  With  regard  to  the  jet  hazard,  I  have  already  discussed  this  matter at  length  in  Chapter  VI  where  I  have  given  reasons  for  holding  that  no such  allowance  is  admissible  to  the  workmen  of  Air-India.  This  dis- poses  of  demand  (A)  of  Party  No.  2  and  part  of  the  demand  of  Party No.  3.  With  regard  to  the  other  demands  of  Party  No.  2,  I  do  not  see any  substance  in  them.  Cashiers  in  the  Accounts  Department  are required  to  handle  cash  as  part  of  their  ordinary  daily  duties,  and  their salaries  are  fixed  on  the  basis  of  these  duties.  No  extra  allowance  is therefore,  admissible  to  them.  Nor  is  it  possible  to  give  an  allowance to  chowkidars  who  are  required  to  carry  fire-arms.  It  was  argued before  me  that  under  the  Desai  Bank  Award  of  1962,  such  an  allow-

Sue.  3(ii)]  THE  GAZETTE  OF  INDIA  EXTRAORDINARY  3 4J
ance  was  awarded  to  chowkidars  but  on  referring  to  the  award  I  find that  there  is  no  such  allowance  payable  to  workmen  who  are  required to  carry  fire-arms.  The  allowance  referred  to  was  payable  to  all  watch- men,  chowkidars  and  cash  durwans  and  it  had  no  reference  to  their carrying  fire-arms  as  part  of  their  duties.  In  the  Air-India,  chowkidars watchmen  and  peons  are  listed  under  the  same  grade  but  the  chowkidars and  watchmen  of  the  Air-India  are  not  comparable  to  the  watchmen  of a  bank  where  large  amounts  of  money  are  always  stored  and  whose duties  may,  therefore,  be  said  to  carry  a  larger  measure  of  responsibility than  those  of  the  watchmen  and  chowkidars  in  Air-India.  The  total emoluments  payable  under  the  present  award  to  watchmen  and  chow- kidars  have  been  substantially  raised  and  they  compare  very  favour- ably  with  the  emoluments  of  bank  employees.  I  am,  therefore,  not  pre- pared  to  concede  this  demand  and  I  reject  it  in  toto.
(ix)  Item  No.  13:  Licence  Allowance.
87.  A  demand  under  this  head  has  been  made  by  Parties  No.  2  and  3.
88.  The  demand  is  that  Mechanics  who  hold  an  AME's  Licence should  be  paid  a  special  licence  fee  of  Rs.  100  per  month,  and  if  any Mechanic  or  Aircraft  Maintenance  Engineer  obtains  a  Radio  Telephony Licence  granted  by  the  Posts  and  Telegraphs  Department  after  the  appro- priate  examination,  he  should  be  paid  an  allowance  of  Rs.  50/-  per month.  It  is  pleaded  by  Parties  No.  2  and  3  that  such  allowance  are being  paid  by  the  Indian  Airlines  Corporation.
89.  The  demand  was  resisted  by  the  Air-India  Corporation  on  the ground  that  there  is  no  justification  for  it  and  that  Mechanics  who  hold an  AME's  Licence  cannot  make  use  of  the  extra  training  received  by them  until  they  are  promoted  to  the  post  of  an  AME.  A  workman undergoes  extra  training  in  order  to  gain  promotion  and  this  promotion when  received,  is  a  sufficient  reward  for  the  time  and  labour  expended by  him  in  acquiring  the  extra  qualification.  It  was  argued  on  behalf of  the  Management  that  the  granting  of  such  allowances  should  be  left entirely  to  the  discretion  of  the  employer  who  might,  at  any  particular stage,  wish  to  give  special  encouragement  for  the;  acquisition  of  addi- tional  skill  when  it  is  found  that  there  is  a  paucity  of  skilled  persons for  higher  positions.  This  may  be  the  reason  why  the  Indian  Airlines Corporation  is  paying  such  allowances  to  its  workmen.

342  THE  GAZETTE  Or  INDIA  EXTRAORDINARY  [PAST II—
Licence  and  they  put  in  this  extra  labour  in  order  to  obtain  higher  and more  remunerative  appointments.  In  this  view  of  the  matter,  there  is no  justification  for  awarding  a  licence  allowance.  The  labour  carries its  own  reward  in  the  form  of  expectation  of  a  better  and  more  lucra- tive  appointment.  I,  therefore,  reject  this  demand.
It  is  observed  from  the  agreement  of  October  15,  1965  arrived  at  be- tween  parties  No.  1 and  5  that  the  Corporation  has  conceded  under  this item  the  following  concessions  to  the  aircraft  maintenance  engineers: —
(i)  The  Technical  pay  at  the  rates  specified  below  will  be  payable to  the  employees  : —
Assistant  Superintendents  Rs.  250/- p.m.
Aiiaaf!  Maintenance Engineers,  Gr.  I/Aircraft
Radio  Mjtin.cnance
Engineers  Gr. I  Ri.  200/- p.m.
Airciafl  Maintenance Engineers  Gr.  11/Aircraft Radio  Maintenance Engineer  Gr. II  Rs.  100/- p.m.
(ii)  Aircraft  Maintenance  Engineers  Gr.  II/Aircraft  Radio  Mainte- ance  Engineers  Gr.  II  will  be  granted  a  qualification  pay  of Rs.  100/- p.m.  if  they  possess  or  acquire  additional  qualification as  prescribed  in  the  annexure  to  the  agreement.
The  abovementioned  agreement  has  already  been  made  a  part  of  my award.
(x)  Item.  No.  14:  Heavy  duty  vehicle  allowance.
91.  Under  this  head,  a  demand  has  been  made  by  Parties  No,  2  and  3 who  claim  extra  allowances  payable  to  those  persons  who  are  required to  drive  heavy  duty  vehicles  like  tractors,  Fork-Lifters,  etc.  At  present the  Corporation  employs  drivers  at  pays  ranging  from  Rs.  219/-  to Rs.  281/-  inclusive  of  dearness  allowance.  Those  drivers  who  possess licences  for  driving  heavy  duty  vehicles  are  required  to  drive  them whenever  necessary  and  they  are  called  upon  to  do  so  in  rotation.  No extra  allowance  is  paid  to  them.  The  demand  of  Party  No.  2  is  that  an extra  allowance  of  Rs.  60/-  per  month  should  be  paid  to  drivers  of heavy  duty  vehicles  like  tractors,  Fork-Lifters,  etc.  and  such  employees who  are  required  to  drive  trolleys  or  brush  tractors  should  be  given  an extra  allowance  of  Rs.  30/-  per  month.  There  is  also  a  demand  that •members  of  the  engineering  and  store  staff  who  are  required  to  drive "the  Corporation's  vehicles  should  be  paid  an  allowance.  The  demand  of Party  No.  3  is  that  persons  required  to  drive  heavy  vehicles  should  be paid  an  allowance  of  Rs.  50/-  per  month.
 
92.  The  demand  is  resisted  by  the  Corporation  and  it  is  alleged  that the  pays  and  allowances  of  drivers  of  the  Corporation  are  far  more advantageous  than  the  wages  paid  by  the  State  Transport  and  Bombay Electricity  Supply  and  Transport  Undertaking  for  longer  hours  of  work and  fewer  holidays.  The  drivers  in  the  employment  of  the  Corporation do  not  have  to  perform  the  onerous  duties  which  bus  and  truck  drivers of  the  State  Transport  Department  have  to  perform  and,  therefore,  there is  no  justification  whatsoever  for  the  grant  of  an  additional  allowance •for  driving  heavy  vehicles.  With  regard  to  the  demand  for  allowance for  members  of  the  Engineering  and  Stores  staff  who  may  occasionally "have  to  drive  the  Corporation's  vehicles,  the  Corporation  submits  that this  matter  was  raised  before  the  Labour  Directorate  of  the  West  Bengal

fcc.  3(11)]  THE  GAZETTE  OF  INDIA  EXTRAORDINARY  343
Government,  and  the  Government  refused  to  refer  it  to  the  Tribunal  on the  ground  that  an  employee  in  a  scale  of  pay  higher  than  that  of  a driver  is  not  entitled  to  any  driving  allowance  because  whenever  he  is required  to  drive  a  vehicle,  the  time  spent  is  negligible  and  the  skill required  is  Jess  than  that  of  a  mechanic,  so  no  case  for  payment  of  extra allowance  was  made  out.  The  Corporation  has  offered  that  it  is  willing to  pay  an  allowance  of  Re.  1/-  per  working  day  to  those  workmen  in the  lowest  category  who,  being  in  possession  of  a  driving  licence  for heavy  vehicles,  are  required,  allowed  or  permitted  to  drive  t ie  Corpo- ration's  heavy  vehicles  for  the  work  of  the  Corporation.  This  oiler  is contained  in  paragraph  112  of  the  writtjen  statement  of  the  Air-India which  deals  with  the  demand  under  Item  37.  It  seems  to  me  that  this is  a  fair  offer  and  there  is  no  justification  whatsoever  for  awarding  heavy duty  allowance  to  drivers  whose  conditions  of  service  are  much  better than  those  obtaining  in  other  industries  and  in  the  State  Transport Department.  I,  therefore,  reject  this  demand  but  on  the  basis  of  the offer  made  by  the  Corporation  make  an  award  that  workmen  in  the lowest  category  will  be  entitled  to  a  driving  allowance  of  Re.  1/-  per working  day  provided  they  are  in  possession  of  a  driving  licence  for heavy  vehicles  and  are  required  to  drive  the  Corporation's  heavy  vehicles for  the  work  of  the  Corporation.
(xi)  Item  No.  15:  Jet  Allowance  (Cabin  Attendants  and  Flight  Crew).
93.  Under  paragraph  8  of  Schedule—Pay  Scales  and  Allownaces— of  the  Air-India  Employees  Service  Regulations,  no  Jet  Allowance  is payable  to  any  of  the  Cabin  Attendants  and  only  members  of  the  Operat- ing  Crew  are  paid  varying  amount  of  Jet  Allowance.  It  is  provided  hy sub-paras  (ii)  and  (iii)  of  paragraph  8  that  no  Jet  Allowance  should  be admissible  during  the  period  of  training  and  until  the  employee  has obtained  the  necessary  licence  or  endorsement  thereon  for  the  operation of  the  Corporation's  jet  aircraft  and  the  allowance  will  cease  when  the assignment  to  operate  the  jet  aircraft  is  terminated  or  temporarily  sus- pended.
94.  In  the  Charter  of  Demands  a  claim  for  enhanced  jet  allowance was  made  by  Parties  No.  4,  6 and  7,  and  Party  No.  2  also  made  a  demand for  jet  allowance.  Party  No.  4  has  now  settled  this  claim.  Originally the  jet  allowance  payable  to  Commanders  was  Rs.  650/-  per  month  and to  First  Officers  Rs.  400/-.  The  demand  made  by  Party  No.  4  was  that Commanders  be  paid  Rs.  1,050/-  and  First  Officers  Rs.  850/-  by  way  of Jet  Allowance.  In  the  settlement  of  26th  July,  1965  the  Corporation  has agreed  to  pay  Commanders  Rs.  1,000/-  and  First  Officers  Rs.  600/-  as  Jet Allowance.  The  Jet  Allowance  payable  to  members  of  Parties  No.  6  and 7  is  Rs.  300/- p.m.  and  claim  of  Party  No.  6 is  that  it  should  be  enhanced to  Rs.  800/-.  With  regard  to  Party  No.  7,  the  original  demand  WPS that for  the  first  three  years  of  operating  on  the  jet  aircraft,  the  allowance should  be  Rs.  300/-  per  month.  This  should  be  increased  to  Rs.  500/- for  the  4th  and  5th  year  and  from  the  6th  year  onward  the  jet  allowance should  be  Rs.  700/-.  This  was,  however,  later  amended  by  means  of  an application  dated  1st  September,  1965  after  the  Pilots  had  settled  their demand  under  this  head.  The  amended  demand  is  for  a  flat  rate  of Rs.  700  for  all  Flight  Engineers.
 
95.  When  the  Corporation  began  to  operate  jet  aircraft,  it  agreed  to pay  its  Pilots  a  jet  allowance  because  of  the  more  complex  nature  of  the aircraft.  This  has  been  substantially  increased  by  the  last  agreement  of 26th  July,  1965.  On  the  same  ground  the  Flight  Navigators  and  Flight

344  THE  GAZETTE  OF  INDIA  EXTRAORDINARY  |TART 11—
Engineers  are  entitled  to  an  increase  because  I  do  not  see  any  reason  for discriminating  against  them.  They  too  arc  entitled  to  a  substantial increase  in  the  jet  allowance,  and  having  regard  to  the  circumstances  of the  case,  their  scales  of  pay  and  the  nature  of  the  duties  which  they  are required  to  perform  while  operating  a  jet  aircraft,  I  would  increase  the allowance  to  Rs.  450  per  month  as  a  flat  rate.
96.  With  regard  to  Cabin  Attendants,  the  demand  is  opposed  by  the1 Corporation  and  it  is  contended  that  only  the  operating  crew  are  entitled to  any  jet  allowance  because  they  have  to  acquire  additional  skill  and their  duties  on  jet  aircraft  are  of  a  more  complex  nature  than  on  other types  of  aircraft.  The  Cabin  Attendants  have,  however,  urged  that flying  in  jet  entails  extra  strain  and  labour.  My  attention  was  drawn  to- a  passage  in  paragraph  14  of  the  Statement  of  Claims  made  by  Party No.  4 and  it  was  argued  on. behalf  of  the  Cabin  Attendants  that  the  obser- vations  made  in  this  paragraph  apply  with  equal  force  to  Cabin  Atten- dants.  The  relevant  paragraph  is  as  follows:—•
"Aircraft  flight  crews  have  become  exposed  to  many  physical hazards  associated  with  high  speed,  high  altitude,  positive  and negative  acceleration,  rapid  climatic  and  time  zone  changes, anoxia  or  lack  of  oxygen  and  possible  decompression.  Jet flights  have  induced  changes  in  normal  physiological  rhythms affecting  sleep  pattern,  hours  of  rest,  body  temperature,  car- dio-vascular  equilibrium  and  digestive  functions.  Jet  crew  are also  subject  to  danger  from  radar,  high  frequency  radio  radia- tion,  ultrasonic  vibration  and  cosmic  radiation  at  high  alti- tudes.  There  are  in  addition  physiological  factors  of  tension, anxiety  and  emotion  related  to  jet  flight.  At  one  place  tem- perature  may  be  quite  above  25°  C.  and  at  the  other  end  it may  be  well  below* 0°  C.  and  that  too  after  flying  only  about  5 to  6  hours.  This  causes  physiological  strain.  Flying  great  dis- tances  from  East  to  West  involves  rapid  change  in  local  times and  impose5;  severe  strain  on  human  body  to  adjust  to  abnor- mal  conditions  of  day/night  cycle,  Repetition  of  such  strains and  stresses  damages  the  automatic  adjusting  mechanism  of the  human  body.  Frequent  trips  abroad  also  mean  separation from  family  for  long  periods  and  considerable  time  at  home  is spent  in  recovering  from  acute  fatigue,"
 
There  is  no  doubt  that  the  consequences  of  flying  in  jet  aircraft  as  stated in  the  above  paragraph  are  greatly  exaggerated  but  it  cannot  be  denied that  certain  strains,  both  physical  and  mental,  do  result  from  flying  in jet  aircraft  and  there  is  a  constant  disturbance  of  the  diurnal  routine. It  was  argued  before  me  that  some  other  airlines  do  pay  a  jet  allowance to  their  Cabin  Attendants.  The  allowance  is  paid  by  the  Indian  Airlines Corporation,  by  the  Lufthansa  and  the  Malaysian  Airways.  As  far  as the  Indian  Airlines  Corporation  is  concerned,  the  comparison  is  not  apt because  that  Airline  operates  several  types  of  aircraft  and  their  wage structure  is  not  exclusively  related  to  jet  flights.  Therefore  some  allow- ance  is  paid  to  those  Cabin  Attendants  who  are  members  of  a  jet  air- craft  flight  crew.  With  regard  to  Lufthansa  and  Malaysian  Airways,  the complete  details  of  their  service  conditions  were  not  placed  before  me and  it  is  not  easy  to  draw  an  analogy  from  those  airlines.  It  seems  to me,  however,  that  Cabin  Attendants  should  be  paid  a  Jet  Allowance commensurable  with  their  status  and  the  nature  of  their  duties.  Having regard  to  these  circumstances,  I  consider  that  a  jet  allowance  of  Rs.  50

SEC.  3(ii)]  THE  GAZETTE  OF  INDIA  EXTRAORDINARY  345
for  all  Cabin  Attendants  will  be  sufficient  to  nv:'<-:t  this  dt'iiv.nj  and  I award  accordingly.
The  result  i;  thai.  Cabin  Attendants  and  air  ho.>.osse.;  will  be  given a  Jet  A'l.-v-nce  oi'  ils.  50  and  the  exiting  Jst  Allowance  of  Flight  Engi- neers  and  flight  Navigators  will  be  increased  from  Rs.  oOO to  Rs.  450.
(xii)  Item  No,  1G:  Overseas  operations  allowance.
Oil. The  Corporation  pays  an  Overstay  Operations  Allowance  to  come categories  of  employees  who  arc  required  to  carry  ou:  flying  duties.  A demand  Tor the  increase  of  Overseas  Operations  Allowance  has  been  made on  behalf  of  Parties  No. 2, 4, C and  7.  The  demand  by  Parties  No. 4 and  7 has  been  virtually  dropped  as  I  shall  presently  show  and  the  demand* of  Parti;:-;  No.  2  and  0  only  survive.  Th.?  demand  of  Pi lob;  as  made,  in the  charter  of  demands  and  repeated  in  their  statement  or  claims  was that  the  allowance  of  Rs.  400  payable  to  the  Commander  and  Rs.  275  to. the  First  Officer  should  be  increased  to  Rs.  650  and  Rs.  500  respectively.' In  the  agreement  which  was  reached  between  the  Pilots  and  the  Corpo1- ration  on  26th  July,  1965,  it  was  agreed  that  the.  present  rates  will  con- tinue  without,  any  further  increase.  Therefore,  the  demand  for  an increase  was  dropped  by  the  Pilots,  i.e.,  Party  No.  4.  The  demand  origi- nally  made  by  the  Flight  Engineers—Party  No.  7  was  that  Overseas Operations  Allowance  of  Rs.  225  -hou'd  be "increased  to  Rs.  450.  On  the 1st  September,  1965,  however,  this  party  nut  in  an  application  to  amend certain  items  of  their  demands  and  among  these  items  Overseas  Opera- tions  Allowance  was  mentioned.  The  prayer  was  to  amend  the  demand from  Rs.  450  to  Rs.  225,  that  is,  the  prevailing  rn+p.  Therefore,  Party No.  7  has  also  dropped  its  demand  for  an  increase.

34<>  T HE  GAZETTE  OF INDIA  EXTRAORDINARY  [PART I I-
laid  down  in  paragraph  4  of  Schedule  (Pay  Scales  and  Allowances)  t& the  Air-India  Employees'  Service  Regulations  which  reads  as  follows: —
Efficiency  Bonus:
(i)  Subject  to  the  provisions  of  clause  (ii)  'of  this  paragraph.  Effi- ciency  Bonus  at  the  rate^  specified  below  will  be  payable  to Flight  Crew  other  than  administrative  Pilots,  Navigators  and Flight  Engineers,  Chief  Flight  Purser  and  Chief  Air  Hostess;
Rs.  100  per  month  to  Senior  Captains  and  Captains.
Rs.  75 per  month  to  Navigators  and  Flight  Engineers. Rs.  50  per  month  to  Flight  Pursers,  Assistant  Flight  Pursers and  Air  Hostesses.
(ii)  Efficiency  Bonus  may  be  withheld  wholly  or  in  part  for  any specified  period  if,  in  the  opinion  of  the  competent  authority, the  employee  has  committed  any  irregulartiy  in  or  breach  of (light  procedures  or  has  shown  lack  of  responsibility  as  a  mem- ber  of  flight  crew  or  if  his  services  are  found  otherwise  un- satisfactory  or  for  any  act  of  commission  or  omission  detri- mental  to  discipline  or  to  the  interests  of  the  Corporation.
Party  No.  3  made  no  claim  under  this  head  but  demands  were  made  by the  other  parlies.
101.  Party  No.  5,  that  is,  All  India  Aircraft  Engineers'  Association dropped  this  demand  when  they  reached  their  agreement  with  the  Cor- poration  on  October  15, 1965,
102.  Parly  No.  4.  that  is,  Indian  Pilots  Guild,  have  also  settled  this demand  and  their  Efficiency  Bonus  has  been  increased.  The  item  was settled  in  the  following  terms:
"It  is  agreed  that  an  Efficiency  Bonus  of  Rs.  200  per  month  will  be paid  to  Senior  Captains  and  Captains  from  1st  April,  1964 subject  to  the  condition  that  only  half  of  this  efficiency  bonus wili  be  liable  to  be  withheld  in  accordance  with  the  schedule of  Pay  Scales  and  Allowances  under  Regulation  13  of  the  Air- India  Employees'  Service  Regulations."
103.  The  claims  of  Parties  No.  2.  6  and  7  only  survive.  Parties  6  and T may  be  disposed  of  in  one  word.  They  are  members  of  the  Flight  Crew and  they  are  already  in  receipt  of  efficiency  bonus  at  the  rate  of  Rs.  75 p.m.  This  rate  was  fixed  in  accordance  with  agreements  reached  be- tween  the  parties  in  1960  and  1961  and  there  is  no  doubt  that  since  then there  has  been  a  change  in  the  conditions  of  service  owing  to  the  intro- duction  of.  Jets.  Air-India  now  is  an  all-Jet  Airline  and  since  the  Cor- poration  has  agreed  to  a  substantial  increase  of  the  Efncency  Bonus  in the  case  of  Senior  Captains  and  Captains,  it  seems  to  me  only  just  and proper  that  there  should  also  be  an  increase  in  the  Efficiency  Bonus  paid to  Navigators  and  Fli,"h!  Tneir  'ers  whose  case  is,  in  no  wav,  different from  the  case  of  the  Pilois  because  they  too  are  members  of  the  Operat- ing  Flight  Crow  and  on  their  efficiency  too  depends  the  safety  of  the passengers  and  aircraft.  Flying  of  Jet  aircraft  needs  greater  attention and  greater  skill  and  so  I  propose  to  increase  the  Efficiency  Bonus  pay- able  to  Navigators  and  Flight  Engineers'  to  a  sum  of  Rs.  100.
 
104.  As  regards  Party  No.  2,  there  seems  to  be  no  justification  whatso- ever  for  increasing  their  efficiency  bonus.  They  are  not  members  of  the

SEC.  3(ii)J  THE  GAZETTE  OF  INDIA  EiXTEAORDINARY  347
Operating  Crew  and  although-Cabin  Attendants  have  to  maintain  a  high degree  of  efficiency,  it  cannot  be  said  that  their  task  has  become  more onerous  since  Jet  aircraft  began  to  be  flown.  Their  scales  of  pay  have been  increased  and  they  have  also  been  given  a  Jet  allowance.  An  in- crease  of  efficiency  bonus  is,  therefore,  not  justified  and  I  reject  their demands.  The  result  is  that  Efficiency  Bonus  to  Pilots  will  be  governed by  the  agreement  between  them  and  the  Corporation  reached  on July  26,  1965.  The  Efficiency  Bonus  of  Flight  Engineers  and  Flight  Navi- gators  is  increased  to  Rs.  100 per  month.  Party  No,  5 voluntarily  dropped their  demand,  Party  No.  3  made  no  demand  under  this  head  and  the demands  of  Party  No,  2  are  rejected.
(xiv)  Item  No.  28:  Washing  allowance.
105.  A  demand  for  washing  allowance  has  been  made  by  Party  No.  2 only.
106.  The  present  position  is  that  under  paragraph  9  of  the  Establish- ment  Orders,  employees  of  the  Corporation  whose  pay-scale  does  not  ex- ceed  Rs.  150  per  month,  and  who  are  provided  with  uniforms  by  the  Cor- poration,  are  given  a  washing  allowance  of  Rs.  3  per  month  unless arrangements  for  the  laundring  of  the  uniforms  by  the  Corporation  exist. Under  the  present  award  the  corresponding  salary  will  be  Rs.  230  per month.
107.  Party  No.  2  claims  that  the  Corpofation  should  bear  the  expenses incurred  in  washing  or  laundring  of  the  uniforms,  whatever  the  amount of  such  expenses  may  be.
108.  The  demand  is  opposed  by  the  Corporation  and  it  is  contended that  the  present  rule  is  generous  enough  and  was  fixed  as  the  result  of an  agrepmpnt  arrived  at  between  the  Corporation  and  Party  No.  2  on April  1,  lCfn.  There  is  no  justification  for  increasing  this  allowance  .or •extending  it  to  employees  whose  proposed  pay-scale  exceeds  Rs.  230  p.m. It  is  contended  that  the  Indian  Airlines  Corporation  pays  a  washing allowance  of  Rs.  3  per  month  to  many  other  categories  of  employees than  persons  who  are  in  receipt  of  such  allowance  in  the  Air-Tndia  Cor- poration.  The  pay-scales  of  the  Corporation's  employees  are,  in  my view,  sufficiently  generous  to  provide  for  washing  of  uniforms  and  any increase  in  the  present  allowance  is  not  justified.  The  comparison  with the  conditions  prevailing  in  the  Indian  Airlines  Corporation  is  not  exact because  the  pay-scales  in  the  two  Corporations  differ.  I,  therefore,  reject this  demand.
fxv)  Item  No.  33:  Senior  Check  Pursers'  Instructional  allowance.
109.  A  demand  under  this  head  has  been  made  on  behalf  of  Check Puma's  and  Senior  Check  Pursers  who  are  members  of  Party  No.  2.  The original  claim  in  the  Charter  of  Demands  was  that  a  special  allowance of  Rs.  200  should  be  paid  to  the  Senior  Check  Pursers'  and  a  further allowance  of  Rs.  125  for  carrying  out  instructional  duties.  In  the  State- ment  of  Claims  filed  subsequently  before  this  Tribunal,  the  demand  was enhanced.  Now  it  is  claimed  that  all  Check  Pursers  should  be  paid Rs,  200 per  month  as  Instructional  Allowance  and  Rs.  200  as  Check  Allow- ance  and  Senior  Check  Pursers  should  also  get  the  same  allowance.
 
110.  The  demand  is  resisted  by  the  Corporation,  and  it  is  pleaded  that the  claim  of  Check  Pursers  cannot  be  considered  under  this  head  because

348  THE  GAZETTE  OF  INDIA  EXTRAORDINARY  [PAST  l i-
the  reference  is  only  in  respect  of  Instructional  Allowance  claimed  by Senior  Check  Pursers.  On  merits  it  is  pleaded  that  the  Senior  Check Purser  Ls  already  being  paid  an  allowance  of  Rs.  100  lor  his  addrtional responsibility  and  the  extra  duties  which  he  is  required  to  perform,  and so  there  is  no  justification  for  conceding  the  demand  now  being  made.
111.  The  claim  of  Check  Pursers  cannot  be  considered  by  me  because it  does  not  fall  within  the  scope  of  the  present  reference.  In  any  event, I  am  ncrt  prepared  to  admit  it.  Appendix  'A'  to  Schedule  to  paragraph  1 of  the  Air-India  Employees'  Service  Regulations  does  not  mention  Ciieck Pursers  generally.  The  Senior  Check  Purser  is  listed  at  grade  25  and it  is  the  demand  of  this  workman  that  is  before  me.  The  present  pay scale  of  the  Senior  Check  Purser  is  Rs.  350—25—550—50—650.  In  addi- tion  to  this  he  is  being  paid  a  special  allowance  of  Rs.  100.  For  his  grade of  pay  and  for  the  type  of  additional  duties  which  he  is  called  upon  to perlorm,  the  Senior  Check  Purser,  in  my  view,  is  being  paid  adequately and  I  am  not  convinced  of  the  justification  for  an  increase  in  the  allow- ance,  nor  for  awarding  an  Instructional  Allowance  because  giving instruction  to  Pursers  is  part  of  the  ordinary  duties  of  a  Check  Purser and  no  extra  labour  or  responsibility  in  the  instructional  part  of  his duties  is  involved.  I,  therefore,  reject  this  demand  in  toto.
(xvi)  Item  No,  36:  Children  allowcnice.
112.  A  demand  for  a  special  children  allowance  has  been  made  on behalf  of  Parties  No.  2  and  3  o'nly.  No  claims  on  this  ground  were  filed by  the  remaining  four  Parties.
113.  The  demand  of  Party  No.  2. is  that  a  children  allowance,  at  the rate  of  Ks.  15  per  month  per  child  subject  to  a  maximum  of  Ks.  45  per month,  should  be  admissible  to  an  employee  and  this  allowance  shru'M be  increased  on  completion  of  the  fourth  year  of  the  child  to  Rs.  45  per month  per  child.  The  demand  of  Party  No.  3 is  confined  to  the  first  part of  the  demand,  viz.,  the  payment  of  children  allowance  at  t ie  rate  of Rs.  15 p.m.  per  child  subject  to  a. maximum  of  Rs. 45.
114.  The  demand  is  resisted  by  the  Corporation  on  the  ground  that there  is  no  justification  for  it  and  the  pay  scales  are  fixed  after  taking into  consideration  the  size  of  a  normal  family.  It  will  be  remembered that  when  the  question  of  tlie  fixation  of  minimum  wages  was  consider- ed,  the  family  unit  was  taken  to  be  3,  viz.,  the  employee,  his  wife  and two  children.  This  was  the  basis  for  fixing  the  minimum  pay  at  lower stages  of  the  time  scale.  Successive  increments  which  are  a  feature  of the  Air-Indin  wage  pattern  sufficiently  provided  for  the  increase  of  the family  and  the  additional  expenses  which  the  employee  is  called  upon to  incur.
115.  The  income-tax  rebate  on  account  of  children  sufficiently  com- pensates  the  earning  man  with  a  family,  and  I  find  nn  justification whatsoever  for  awarding  a  special  children  allowance.  It  was  contend- ed  before  me  that  the  Bank  of  India  and  the  Reserve  Bank  do  "oay  this allowance  but  the  warr^  "f  Air-India  workmen  are  sufficiently  high  and, I  am  not  prepared  to  conc^jr  this  demand.  I  therefore,  reject  it-
(xvii)  Item,  No.  37:  Driving  allowance.
 
116.  This  demand  is  identical  with  the  demand  made  under  item  No. 14—Heavy  duty  vehicle  allowance.  Mr.  Dudhia  while  arguing  the  case

SKC.  Z(ti)]  THE  GAZETTE  OF  INDIA  EXTRAORDINARY  349
on  behalf  of  Party  No.  2  conceded  that  the  two  items  could  not  be  con- sidered  separately  and  that  only  one  allowance  is  admissible,  either  un- der  Item  No.  14 or  under  Item  No.  37.  I  have  already,  while  disposing  of Item  No.  14,  made  an  award  on  the  basis  uf  the  oiler  made  by  the  Cor- poration.  There  is  no  ground  for  further  extension  of  this  benefit  and I,  therefore,  reject  this  demand.
(xviii)  Item  No.  41:  Command  Pay  (Senior  Captains).
117.  A  demand  for  a  higher  command  pay  was  made  on  behalf  of Senior  Captains.  This  demand  has  now  been  settled  and  the  dispute  does not  survive.  Under  the  agreement  reached  with  the  Pilots  on  July  26, 19fi!i,  command  pay  has  been  fixed  at  Rs.  300  with  effect  from  1st  April, 10fi4.  The  agreement  has  already  been  made  an  award  of  this  Tribunal and  so  nothing  further  need  be  said  on  this  matter.
(xix)  Item  No.  42:  2nd  Class  Navigator's  Licence  Allowance.
118.  Demands  under  this  head  have  been  made  by  Parties  No.  2  and 4.  The  subitance  of  their  demands  is  that  Pilots  and  members  of  the ground  staff  who  have  taken  the  trouble  to  work  and  obtain  a  Second Class  Navigators'  Licence  should  be  paid  a  special  licence  allowance. Under  an  agreement  reached  on  April  20,  1960,  Senior  Captains  and  Cap- tains  are  being  paid  a  Second  Class  Navigators'  Licence  allowance  of Rs.  100.  The  demand  of  Party  No.  4 is  that  this  allowance  should  not  be discontinued,  and  Party  No.  2  have  claimed  that  the  benefit  should  also be  extended  to  members  of  their  Union.  As  regards  Par.y  No.  4,  the matter  has  been  settled  by  the  agreement  reached  on  Jv1--  26,  1965,  and it  has  been  agreed  that  this  allowance  shall  continue  tt  be  payable  to those  pilotb  who  hold  a  Navigator's  Licence.  The  inter'ion,  according to  Shri  Vimadalal  Counsel  for  Air-India,  is  that  future  recruits  will  not be  paid  this  allowance.
 
119.  It  is  contended  on  behalf  of  the  Corporation  that  when  the  Indian Aircraft  Rale-;  were  amended,  all  pilots  who  now  apply  for  either  the Commercial  Pilot's  Licence  or  the  Senior  Commercial  Pilot's  Licence, are ,expected  to  pass  an  examination  in  those  very  subjects  which  com- prised  the  syllabus  of  the  Second  Class  Navigator's  Licence  Examination e.g..  Air  Roculatiuiis,  Air  Navigation,  Aviation  Meteorology,  Signals  etc. The  Second  Class  Navigator's  Licence  Examination  has  been  abolished by  the  Director  General  of  Civil  Aviation,  and  it  is  obligatory  on  all pilots  to  Mi.s^ess  knowledge  of  navigation  before  they  can  qualify  to  be appointed  pilots.  In  view  of  this  change,  so  it  was  argued  on  behalf  of the.Corpo] at'on.  there  is  no  justification  for  paying  a  special  licence  fee of  Tl".  100  which  was  introduced  in  order  to  encourage  pilots  to  acquire knowledge  of  navigation.  As  already  discussed  in  an  earlier  chapter,  , Flight  Navigators  are  gradually  becoming  redundant.  Some  airlines have  already  dispensed  with  the  services  of  Specialist  Navigators  and the  Air-India  Corporation  also  proposes  to  instal  instrumental  naviga- tion  aids  on  all  aircraft  after  which  a  Specialist  Navigator  will  not  be rer]uiin"d  to  form  part  of  the  l.'ight  crew.  This  contention  of  the  Corpora- tion  was  not  challenged  by  Party  No.  2.  In  the  circumstances,  there seems  to  be  no  justification  for  awarding  a  Second  Class  Navigator's Licence  allowance  to  a  member  of  the  ground  staff  who  may  have  taken the  trouble  to  acquire  this  licence.  There  is  no  need  to  encourage  the ground  staff  to  acquire  this  skill  because  an  employee  who  is  in  posses- sion  of  a. Second  Class  Navigator's  Licence  can  make  no  use  of  it.  If he  takes  the  trouble  to  receive  instruction  in  the  science  of  navigation

350  THE  GAZETTE  OF INDIA  EXTRAORDINARY  [PART  II—
and  acquire  a  licence,  hs  is  doing  so  with  a  view  to  getting  a  better appointment,  and  that  should  be  sufficient  reward  for  his  labour.  In  the circumstances,  I  am  not  prepared  to  accept  the  demand  of  Party  No.  Z and  reject  it.  The  demand  made  by  Party  No.  4  has  already  been  con- ceded  by  the  Corporation  in  the  agreement  of  July  26,  1965.
(xx)  Hem  No.  43:  Radio/Telephone  allowance.
120.  IThe  demand  for  a  radio  telephone  allowance  was  made  by Parties  No.  2.  4  and  6.  I  may  say  at  once  that  the  demand  of  Pai'ty No.  G is  cxi'iro'y  misconceived  au  Jts  members  have  asked  to  be*  provided with  free  telephones.  The  matter  referred,  however,  relates  to  a demand  iniide  on  account  of  the  knowledge  of  radio  telephony.  An allowance  under  this  head  was  paid  to  pilots  who  were  required  to  ope- rate  radio  telephony  on  aircraft.  By  means  of  the  agreement  daic:>_i July  26,  1965, it  has  been  agreed  that  with  effect  from  1st  April,  1964,  an allowance  of  Rs.  200  will  be  payable  to  pilots  holding  Flight  Radio Telephone  Operator's  Licence.
121.  With  regard  to  Party  No.  2,  the  claim  is  that  workmen  holding a  radio/telephone  licence  or  certificate  should  be  paid  a  special  allow- anct  of  Rs.  50  per  month.  There  is,  however,  no  justification  for  this demand.  A  Radio  Telephone  licence  may  add  to  the  efficiency  of  a member  of  the  flight  crew.  But  it  can  in  no  way  add  to  the  value  of  a ground  workman  who  has  no  occasion  to  make  use  of  his  knowledge. Other  workmen  may  wish  to  improve  their  status  by  acquiring  addi^ tlonal  knowledge  but  this  labour  is  amply  rewarded  when  a  person  hold- ing  such  a  licence  is  promoted  to  a  post  where  his  knowledge  will  be useful  to  him.  There  appears  to  be  no  justification  for  giving  special encouragement  to  the  acquisition  of  this  particular  knowledge  and  I find  no  substance  in  the  claim  made  by  Party  No.  2.  As  regards  Party No.  6 the  item  is  not  intended  to  cover  the  case  of  providing  telephones at  residences.  I  therefore  reject  the  claims  of  Parties  No.  2  and  6.
(xxi)  Item  No.  44:  Check  Pilots  allowance.
122.  Thi^  demand  which  was  made  only  by  Party  No.  4  no  longer survives  as  it  was  settled  by  the  agreement  dated  July  26,  1965  and  it is  agreed  that  an  allowance  of  Rs.  200  per  month  will  be  payable  from 1st  Januaiy,  1965  to  Senior  Captains  who  are  designated  as  check  pilots. Nothing  further  therefore  remains  to  be  said  on  this  item.
(xxii)  Item  No.  48:  Flight  Engineer  Instructors'  allowance.
123.  A  demand  under  this  head  has  been  made  by  Party  No.  7  only and  the  claim  is  that  Flight  Engineer  Instructors  should  be  granted  an Instruction  Allowance  of  Rs.  200  per  month.  In  the  original  Charter  of Demands  presented  on  April  6,  1S64,  the  Flight  Engineer  Instructor  was not  defined  and  in  Section  III  paragraph  3(h)(i)  a  demand  was  made  for Instruction  Allowance  of  Rs-  200  per  month.  In  the  Statement  of  Clr.ivas it  was  stated:
 
"a  flight  engineer  instructor  is  a  flight  engineer  snecKxvUy appointed  by  the  e^nle-yer  to  perform  instruction  nnH  tr?in- ms;  duties.  These  Instructors  have  to  

Ssc.  3(ii)]  THE  GAZETTE  OF  INDIA  EXTRAORDINARY  351
ings,  etc..  which  are  enjoyed  by  rank  flight  engineers.  Fur- ther  at  times  these  Instructors  have  to  undertake  schedule flying  duties  under  exigencies."
On  this  ground  a  demand  was  made  for  an  Instruction  Allowance  of Rs.  200  per  month.  The  demand  was  opposed  by  the  Corporation  and it  was  contended  that  it  war  based  on  a  rrusconrepticn.  In  paragraph 134  of  their  written  statement,  the  Corporation  stated: —
"Probably  Party  No.  7 refers  to  the  Chief  Technical  Instructor  and the  Technical  Instructors  employed  by  the  Corporation.  They come  under  the  category  of  Executive  (Administrative)  Flight Engineers.  The  ""  '  submit  that  they  are  not 'workmen'  and  ,  scope  of  this  reference.  These categories  are  already  entitled  to  a  special  pay."
This  statement  was  not  questioned  and  no  replication  was  filed  by  Party Nc.  7.  In  the  course  of  the  ar^u^ents,  I  was  referred  to  page  6 of  Exhi- bit  U-VII/3.  This  exhibit  is  merely  a  statement  of  the  duties,  responsi- bilities  and  functions  of  Flight  Engineers  prepared  by  Party  No.  7.  No authority  has  been  mentioned  for  the  contents  of  this  document  and  on page  6  the  demand  made  in  the  written  statement  is  repeated  almost verbatim.  It  seems  to  me  that  there  is  some  miscon<-ep''on  on  this  point. The  Chief  Technical  Instructor  and  the  Technical  In JU actors  are  not  en- titled  to  any  Instruction  Allowance  because  their  pay  scales  already take  the  nature  of  their  duties  into  account.  It  may  be  that  Flight  Engi- neers  are  from  time  to  time  deputed  to  give  instructions  to  other  Flight Engineers  on  the  ground  or  in  an  aircraft.  Such  duties  do  not  warrant the  payment  of  additional  Instruction  Allowance.  Flight  Engineers  are paid  wages  in  accordance  with  their  scale  and  status,  and  I  am  not prepared  to  accept  this  demand.  I,  therefore,  reject  it.
(xxiii)  Item  No.  49:  Check  allowance  for  check  flight  engineers.
124.  This  demand  is  made  on  behalf  of  Party  No.  7  only.
125.  The  demand  is  that  all  Check  Flight  Engineers  should  be  paid a  special  allowance  of  Rs.  150  per  month.  Check  Pilots  are  now  being paid  a  special  allowance  of  Rs.  200  p.m.  Check  Flight  Engineers  assume extra  responsibilities  and  for  this  extra  burden  they  must  be  compen- sated.  I  consider  that  a  special  allowance  of  Rs.  100 p.m.  to  Check  Flight Engineers  will  adequately  meet  the  demand  with  regard  to  this  item and  I  award  accordingly.
(xxiv)  Item  No.  50:  Salary  for  cadet  flight  engineers.
126.  This  demand  has  been  made  on  behalf  of  Party  No.  7  only  as none  of  the  other  Unions  have  any  concern  with  it.
 
127.  Cadet  Flight  Engineers,  whether  they  are  recruited  directly  or are  chosen  from  the  category  of  Aircraft  Maintenance  Engineers, receive  a  basic  'salary  o'i  !?••  500  during  their  period  of  training,  before they  become  full-fledged  Flight  Engineers.  This  salary  was  fixed  by mp.jns  of  an  agreement  a^-ived  at  in  I960  and  came  into  effect  from Octtber  1,  1959.  It  was  then  agreed  that  the  Cadet  Flight  Engineers would  receive  a  basic  sa^pry  of  Rs.  500  and  dearness  allowance  of  Rs.  155. The  rate'  of  dearness  allowance  have  since  been  increased  and  Cadet Flight  Engineers  now  receive  a  basic  salary  of  Rs.  500,  dearness  allow- ance  of  Rs.  175  and  interim  relief  of  Rs.  15  granted  during  the  course  of thjese  proceedings  i.e.,  a  total  of  Rs.  690  per  month.  The  demand  is  that

352  THE  GAZETTE  OT INDIA  EXTRAORDINARY  [PART  l i-
the  basic  salary  of  a  Cadet  i'ny.nt  Engineer  should  be  revised  and  en- hanced  to  Rs.  750  per  month.
128.  In  view  of  the  fact  that  the  salary  scales  are  b:; iE!  revised  by me  and  there  will  be  a  general  increase  in  the  wages,  1  \  nuld  increase the  basic  st-hiy  of  a  C?.det  Flight  Engineer  to  Rs,  655.  He  will,  there- fore,  get  a  basic  salary  of  "Rs. 655, clearness  allowance  of  Rs.  95 i.e.',  a  total of  Rs.  750.  This  Ferris  to  me  to  be  an  adequate  salary  for  Cadet  Flight Engineers.
129.  It  is  to  be  observed  that  where  an  Aircraft  Maintenance  Engineer is  chosen  for  training,  he  will  receive  his  own  salary  if  it  is  higher  than Rs.  750/-.  Therefore,  the  award  is  that  the  Cadet  Flight  Engineer  will receive  a  basic  salary  of  Rs.  655 unless  he  is  already  in  receipt  of  a  higher salary  in  which  case  the  higher  salary  together  with  the  adequate  dear- ness  allowance  will  be  paid  to  him.
(xxv)  Item  No.  51:  Special  travelling  allowance.
130.  Special  Travelling  Allowance  payable  to  Commanders  and  First Officers,  was  introduced  in  1961.  It  is  alleged  that  the  reason  for  paying this  allowance  was  that  the  Corporation  had  agreed  to  operate  their  jets with  thiee  pilots,  but  owing  to  the  limitations  of  cabin  construction,  it became  necessary  to  reduce  the  number  of  piJots  to  two.  On  account  of the  extrn  burien  placed  on  pilots,  the  Corporation  agreed  to  pay  a  Spe- cial  Travelling  Allowance  of  twenty  shillings  to  a  Commander  and fifteen  shillings  to  a  First  Officer  while  on  flying  duty  for  each  com- plete  period  of  24  hours  spent  away  from  his  permanent  or  temporary- piece  of  posting.  This  agreement  was  embodied  in  paragraph  36  of  the Establishment  Orders.
131.  Flight  Engineers,  Navigators  and  Cabin  Attendants  contended  that they  should  be  treated  in  the  same  manner  as  Commanders  and  First  Offi- cers  and  they  too  should  be  paid  a  Special  Travelling  Allowance  for  the period  which  they  spend  away  from  their  place  ot  posting.  On  behalf  of Cabin  Attendants,  Spscial  Travelling  Allowance  at  the  rate  of  twenty shillings  for  each  complete  period  of  24 hours  is  claimed.  In  the  original demand  made  by  Party  No.  4,  the  Commanders  claimed  £  3  per  day  and Co-pilots  or  First  Officers  £  2  per  day.  Party  No.  6  claimed  £  2  per  day and" Party  No.  7  £  2 per  day.  The  pilot  settled  this  demand  in  the  agree- ment  of  July  26,  1065,  and  it  has  now  been  agreed  that  Commanders  will  - be  paid  £2-10-0  per  day  and  First  Officers  £  1-15-0 per  day,  as  Special  Tra- velling  Allowance.  The  question  remains  whether  Flight  Engineers,  Flight Navigators  and  Cabin  Attendants  should  also  be  paid  a  Special  Travelling Allowance.
132.  The  Special  Travelling  Allowance  is  in  addition  to  the  Lay-over Allowance  which  is primarily  intended  to  meet  the  expenses  which  travel entails  and  it  is  contended  that  the  Special  Travelling  Allowance  paid  to pilots  has  no  relation  to  such  expenses  but  is  being  paid  on  the  special grounds  mentioned  above.  This  contention  finds  ample  support  in  the letter  No.  GM/100(10)B/4473  dated  November  28,  1961  (U/VII/10),  which was  sent  by  the  Chief  Administrative  Officer,  Air-India,  to  the  General Secretary,  Indian  Pilots'  Guild,  wher^  was  clearly  stated  that  the  terms suggested  were  "subject  to  a  final  settlement  that  the  Boeings  would  be operated  with  two  pilots".  Among  the  terms  was  the  acceptance  of  the Special  Travelling  Allowance  demand.
 
133.  The  contention  of  the  Corporation  has  not  been  challenged  and since  the  pilots  are  being  paid  this  special  allowance  for  special  reasons

SEC.  3(H1J  THE  GAZETTE  OF  INDIA  EXTRAORDINARY  353
I  see  no  justification  for  entertaining  the  demand  of  the  oth?r  members of  the  crew.  The  Flight  Engineer?  had  made  a  similar  demrmd  in  1.962, but  t^ey  dropped  it.  The  el Aim  was  abandoned  according  to  the  Corpp- rati  .i,  when  the  circum.ybncoi;  und^r  which  it  was  b?ing  paid  to  the pilots  were  explained  to  Lhem, n::d  on  the  grounds  of  Emergency  then  sub- sisting.  Be  that  as  it  may,  there  a w ns  to  be  no  substance  in  this  demand and  I  see  no  reason  for  conceding  it.  I  accordingly  reject  it.
(xxvi)  Hem  No.  52:  Emoluments  of  Check  Navigators.
134.  A  demand  under  this  head  has  been  made  by  Party  No.  6  only because  none  of  the  other  parties  are  concerned  with  this  matter.
135.  The  demand  is  that  Check  Flight  Navigators  who  arc  required to  supervise  the  work  of  Flight  Navigators'  training  or  while  doing  route familiarisation,  should  be  paid  additional  remuneration.  Similar  demands were  made  by  Party  No.  4  on  behalf  of  Check-pilots  under  item  No.  44 and  on  behalf  of  Check  Flight  Engineers  by  Party  No. 7 under  it.im  No. 49. Check  pilots  are  now  being  paid  an  allowance  of  Us.  200  a  month  under the  agreement  of  July  2fi,  1965. and  I  have  awarded  a  special  allowance  of Rs.  100  per  month  to  Ch?ck  Flight  Engineers.  I  feel  that  the  case  of Check  Flight  Navigators  is  similar  and  so  award  a  special  allowance of  Rs.  100  per  month  to  Check  Flight  Navigators  also.
(xxvii)  Item  No.  53:  Endorsement  allowance  (Aircraft  Maintenance Engineers).
136.  A  demand  under  this  head  was  made  by  Parties  No.  2  and  5. The  demand  is  similar  to  the  demand  under  Item  No.  13  which  has  al- ready  been  dealt  with.
137.  In  their  negotiations  with  the  Corporation,  Party  No.  5  dropped the  demand.  As  far  as  Party  No,  2  is  concerned,  I  do  not  think  they come  within  the  scope  of  this  Item  because  this  item  clearly  relates  to Aircraft  Maintenance  Engineers  and  to  none  others.
138.  Those  member?,  of  Party  No.  2  who  are  not  Aircraft  Maintenance Engineers,  cannot  make  a  demand  under  this  head.  In  any  event,  I  find no  justification  for  this  demand.  The  Corporation  has  resisted  it  and  it has  been  urged  on  its  behalf  that  Party  No.  2  cannot  represent  Aircraft Maintenance  Engineers  and  if  a  workman,  who  is  not  an  AME.  holds  an AME's  Licence,  it  is  of  no  use  Lo the  Corporation,
139.  I  have  discussed  this  matter  in  detail  while  dealing  with  Item No.  13  and  I  am  not  prepared  to  concede  this  demand  I,  therefore,  re- ' ject  it.
(xxviii)  Item  No.  55:  Secondary  Increments.
140.  The  grant  of  secondary  increment  is  provided  by  paragraph  15B of  the  Air-India  Employees'  Service  Regulations  which  is  in  the  follow- ing  terms:
"15B.  Secondary  Increments:
 
(i)  Subject  to  the  general  conditions  laid  down  in  Regulation  15(i) and  to  the  provisions  of  Sub-Regulation  (ii)  hereof,  the  follow- ing  categories  of  employees  shall  be  eligible  for  a  secondary

354  THE  GAZETTE  OF  INDIA  EXTRAORDINARY  [PAW  It-
increment  for  every  3  years'  service  from  the  date  on  which they  reach  the  maximum  of  their  grade:
(a)  Employees  in  grades  the  maximum  of  which  does  not  exceed Rs.  550  p.m.
(b)  Flight  Pursers,  Examiners  and  Chargehands.
(ii)  The  rate  en  the  secondary  increment  shall  be  the  rate  of  the increment  last,  drawn  by  them  and  the  numbf-  -if  such  incre- ments  shall  not  exceed  three  in  any  one  grade."
141.  A  demand  under  this  head  was  made  by  Parties  No.  2  anrl  5. Party  No.  5 dropped  the  demand  when  the  affrevment  of  October  15, 19G5, was  negotiated  The  demand  of  Party  No.  2  is  that  'every  3  years'  in paragraph  15B  quoted  abov°,  shall  mean  "on  the  third  anniversary  date of  the  increment  including  tlip  last  increment  drawn  date"  and  these  words should  be  substituted.  No  justification  has  been  sliown  for  this  demand, but  the  workers  who  will  under  this  award  he  in  the  grade  of  which the  maximum  does  net  vy^.pd  Rs.  770 will  be  entitled  to  secondary  incre- ments  according  to  term  of  para  15B  quoted  above  because  the  old  figures of  Rs.  550  will  now  correspond  to  Rs.  770.
142.  The  present  rule  is  the  result  of  an  agreement  reached  on  Novem- ber  30,  1961  between  Party  No.  2  and  the  Corporation.  I  may  mention that  the  rule  in  the  Indian  Airlines  Corporation  also  permits  a  maximum, of  three  secondary  increments  which  accrue  every  three  years  after  the1 employee  has  reached  the  maximum  of  his  grade.
143.  There  is  no  force  in  this  demand  and  I  reject  it.
GROUP  II-^-Hours  of  work,  leave,  etc.
144.  This  group  comprises  the  following  9  items:
1.  Item  No.  9—Over-time  payment.
2.  Itjem  No.  10—Working  on  scheduled  "off  day'Vholidmy.
3.  Item  No.  12—Shift  Allowance.
4.  Item,  No.  18—Excess  flying  pay/excess  duty  allowance.
5.  Ttem  No.  22—Flight  duty  time  and  flight  time  limitation!  and
rest  periods.
8.  Item  No.  23—Leave  facilities.
7.  Item  No.  38—Hours  of  Work.
8.  Item  No.  45—Night  flying  allowance.
9.  Item  No.  54—Meal  allowance.
1,  Item  No.  9—Over-time  payment.
145.  Under  Section  59 of  the  Factories  Act,  1948, v/hen  a  worker  wo-rks for  more  than  9  hours  on  any  dsv  or  for  more  than  48  hours  in  a  week, he  is  entitled  to  wu.^?  at  tv"Hor> the  nrdinarv  r?te>  for  the  additional  lime put  in  by  him.  The  ordinary  rate  of  wage  has  been  defined  as  the  basic wa£e  plus  the  usual  allowances.
 
146.  Workers  in  thf>  Air-Tndia  Corporation  are  called  UDon,  from  time to  time,  tn  work  br>yond  the  m?Timum  quota  of  hours  fixed  for  th^m. Rules  for  overtime  payment  in  respeot  of  such  extra  work  have  been  laid down  by  the  Corporation  under  Section  45  of  the  Air  Corporations  Act^

SEC.  3(ii)]  THE  GAZETTE  OF  INDIA  fcXTRAORDINABY  355,
1953.  These  rules  provide  for  the  payment  of  double  the  normal  quantum- •f  wages  to  certain  classes  of  workmen  who  are  mentioned  in  Appendix 'A'  of  the  Service  Regulations  and  Establishment  Orders.  The  hourly  rate is  determined  by  dividing  the  monthly  wages  by  200.  This  is  done  on the  basis  of  an  agreement  reached  between  the  employees  of  the  Indian Airlines  Corporation  and  the  Air  Corporations  Employees  Union  some years  ago.  The  divisor  of  200  represents  the  total  work  for  25  days  in  a month  at  the  rate  of  8  hours  a  day  although  in  actual  practice,  an  em- ployee  may  be  working  for  fewer  hours.  For  certain  other  categories, listed  in  Appendix  'B',  overtime  payment  is  made  on  a  slightly  different basis.  For  the  first  \  hour  of  the  overtime  work  no  extra  allowance  is paid.  For  every  completed  period  of  15  minutes  of  work  done  upto  one hour  beyond  the  half  hour  just  mentioned,  wages  are  paid  at  the  rate  of 150  pjer  cent  of  the  hourly  wage,  and  for  every  completed  period  of  15 minutes  of  overtime  done  beyond  L|-  hours  (half-an-hour  of  cushioning and  half-an-hour  of  overtime  at  150 per  cent  of  the  normal  wages),  over- time  payment  is  made  at  the  rate  of  170 per  cent  of  the  hourly  wage.  The hourly  wage  is  calculated  by  dividing  the  monthly  wage  by  165.  These- regulations  have  been  in  force  since  October  9,  1963, and  are  a  continua- tion  of  the  previous  scheme  of  overtime  payment  which  was  agreed  to  on May  9,  1960.  According  to  this  agreement,  it  was  settled  that  the  rules prevailing  in  the  Indan  Airlines  Corporation  for  overtime  payment  should apply  to jthe  employees  of  the  Air-India  Corporation  also.  This  agreement,, as  alrjeady  observed,  was  made  the  basis  of  a  consent  award,  and  has  been ki  force  since  then.
147.  The  main  demand  of  the  employees  now  is  that  the  distinction between  the  categories  listed  in  Apendices  'A'  and  'B'  should  be  removed and  that  all  employees  should  be  paid  for  overtime  work  at  the  same  rate viz.,  double  the  normal  wages.  It  is  also  claimed  that  some  categories  of employees  who  are  not  entitled  to  overtime  payment  under  the  Factories Act,  should  also  get  the  benefit  of  overtime  payment,  and  the  employees should  get  the  same  rate  of  overtime  payment  whether  they  work  at  head- quarters  or  at  outstations, and  finally  the  cushioning period  of  half-an-hour should  be  eliminated  and  in  the  case  of  all  employees,  overtime  should be  counted  in  full.  The  demands  were  made  originally  on  behalf  of  Par- ties  2,  3  and  5  but  in  the  agreement  arrived  at  between  the  Corporation and  Party  No.  5,  this  demand  was  dropped.  It  now  survives  on  behalf' ®f  Parties  2  and  3  only.
 
148.  The  demand  has  been  resisted  by  the  Corporation  and  it  has  been alleged  that  the  maximum  hours  of  work  fixed  by  the  Corporation  are  far moge  favourable  than  the  maxima  contemplated  by  the  Indian  Factories Act  and  since  conditions  of  work  in  Air-India  are  better  than  in  the  majo- rity  of  industrial  concerns,  payment  for  overtime  work  need  not  be  un- duly  liberal.  In  any  event,  it  is  urged,  the  rules  for  overtime  payment  are already  very  generous  and  having  regard  to  thje  nature  of  the  work  and ether  conditions  of  scrvhe,  there  is no  ground  whatsoever  for  further  libe- ralising  these  ri'les  in  order  to  m?p.i  the  uniustifiablje  demand  of  the Urr'ons.  If-  has  been  ur?ed  that  the  Unions  have  not  advanced  any  cogent symund= for  claiming  additional  overtime  payment.  With  regard  to  certain categories  such  a?  As~:~tant  SiT'erin^endents  and  Technical  Officers,  it  has boen  urged  that  they  are  not  workers  within  the  meaning  of  the  Indian Factories  Act,  their  work  is  of  a  supervisory  nature  and  they  are  hand- somely  paid.  They  are,  therefore,  not  entitled  to  any  overtime  payment. With  regard  to  them,  it  is  also  urged-that  these  officers  are  responsible  for initiating  the  grant  of  overtime  payment  to  other  workmen  and  if  they

356  THE  GAZETTE  OF INDIA  EXTRAORDINARY  [PAOT  II-
were  also  to  be  paid  for  overtime  put  in  by  them,  they  would  be  passing orders  in  their  own  favour  and  this  would  result  in  abuso  and  malpractices. A  general  argument  advanced  on  behalf  of  the  Corporation  is  that  too liberal  t  grant  of  overtime  payment  acts  as  a  disincentive  to  work and  workers  are  apt  to  do  less  work  during  the  normal  working  hours  so that  in  ordfer  to  complete  the  tasks  allotted  to  them,  they  have  to  sit beyond  the  normal  hours  and  they  do  this  in  order  to  gel  more  payment. It  is  also  urged  that  the  additional  financial  burden  imposed  by  granting the  dftmands  would  not  be  commensurate  with  the  advantages  gained and  would  indeed  cause  unjustifiable  loss  to  the  Corporation,  because  the output  of  work  would  decrease  and  the  amount  of  wages  paid  would  in- cifcase.  Aa  a  final  argument,  it  was  urged  by  Mr.  Vimadalal  that  only  a few  years  ago  the  employers  and  the  employees  entered  into  a  firm agreement  which  is  still  in  force  and  there  is  no  ground  for  revising  the conditions  of  service  which  were  accepted  by  the  Unions  just  three  years before  the  fresh  demands  were  put  forward,  for  in  the  meantime,  nothing had  happened  to  necessitate  a  change,
149. The  m^in  contention  of  the  Unions  is  that  there  is  no  justification whatsoever  for  making  any  discrimination  between  the  categories  set out  in  Appendices  'A'  and  'B'  nor  was  therje  any  justification  for  treat- ing  differently  the  employees  at  headquarters  and  the  employees  at  out- stations.  The  demand  made  by  Party  No.  5  is  no  longer  before  me  and I  need  not  refer  to  or  discuss  the  arguments  which  were  advanced  on their  behalf  before  the  agreement  of  October  15,  1965,  was  reached.
150.  With  regard  to  the  clerical  staff,  the  demand  is that  any  one  work- ing  beyond  36  hours  should  be  paid  for  'overtime  at  double  the  ordinary rate.  These  demands  prompted  a  counter  offer  by  the  Corporation  Coun- sel  who  submitted  that  overtime  payment  would  be  made  to  clerks  as well  as  to  other  workers  if  a  40-hour  week  were  accepted  by  them.  He maintained  that  if  there  is  to  be  no  discrimination  in  the  rate  of  overtime payment,  there  should  be  no  discrimination  in  thje  matter  of  normal hours  of  work,  and  .since  Engineers  work  frequently  for  more  than  40 hours  a week,  the  clerks  should  also  accept  a  40-hour  week.  Any  increase of  working  hours,  however,  is  not  acceptable  to  any  of  the  unions  and this  offer  was  rejected  out  of  hand.  I  n)aed  not,  therefore,  pursue  it further.
 
151.  The  main  point  for  my  consideration  is  whether  the  distinction between  the  categories  listed  in  Appendices  'A'  and  'B'  should  be  abolish- ed.  This  would  automatically  entail  the  ifemoval  of  all  distinctions  be- tween  employees  at  headquarters  and  employees  at  outstations.  It  has been  urged  that  overtime  payment  is  not  being  made  in  accordance  with the  Indian  Airlines  Corporation's  rules  which  were  accepted  by  the  par- ties  and  which  should  be  th-"  bnsis  of  the  present  practice.  The  award which  is  nt;W  in  fnree  clearly  lays  down  that  overtime  payment  shouM bo  made  at  the  rates  which  obtain  in  the  Indian  Airlines'  Corporation. It  is  not  within  my  province  to  enquire  into  the  non-compliance  of  the terms  of  the  award.  For  this  there  irc  another  forum  available  to  the unions.  The  point  for  my  consideration  is  whether  there  are  grounds for  going  beyond  the  terms  agreed  to  by  the  partijes  and  making  the rule  of  overtime  payment  more  favourable  than  the  scheme  of  the  Indian Airlines  Corporation.  The  distinction  which  obtains  in  the  IAC  scheme has  an  historical  origin.  The  nature  of  work  performed  by  the  different types  of  workmen  is  different.  Some  type  of  work  is  more  exacting than  others.  Ou1 station  workmen  are  not  called  upon  to  work  as  hard

SEC.  3(ii)]  THE  GAZETTE  OF  INDIA  EXTRAORDINARY  3 57

358  THE GAZETTE  OF INDIA  EXTRAORDINARY  [PART  l i-
on  their  weekly  "off  day" which  may  or  may not  be  a  Sunday according  to  the  roster  pattern  or  which  may  be  a  night  "off".
(ii)  Declared  Holidays
A  workman  required  to  work  on  a  declared  holiday  is  eligible  for compensation  at  double  the  ordinary  rate  of  wages  for  the actual  hours  of  work  performed  on  such  a  holiday.  He  is  not given  any  substituted  holiday.  The  manner  of  computing  th" overtime  payment  due  is  set  ou1  in  paragraph  15  of  the  Estab- lishment  Orders.
156.  No  demand  under  this  item  was  made  by  Parties  3,  4,  6  and  7. Party  No.  5  dropped  the  demand  during  the  course  of  negotiating  the agreement  of  October  15,  1965,  with,  the  Corporation.  The  only  matter that  now  survives  is  the  demand  of  Party  No.  2.  This  demand  is  two- fold.  In  the  first  place,  it  is  claimed  that  workmen  who  are  required to  work  on  a  scheduled  "off  day",  must  be  paid  for  that  day  at  double the  ordinary  rate  and  should  also  be  allowed  a  "compensatory"  off  day. The  work  on  an  "off  day"  must  be  considered  to  be  a  full  day's  work even  if  the  actual  hours  spent  on  work  are  less.  In  the  second  place,  It Is  claimed  that  overtime  payrnpnt  for  working  on  a  declared  holiday must  continue  and • in  addition,  a  "compensatory"  off  day  must  also  be allowed.  It  is  also  claimed  that  the  roster  should  not  be  altered  so  as to  give  a  workman  his  normal  holiday  when  in  the  original  roster  he was  required  to  work  on  it.
157.  These  demands  are  resisted  by  the  Corporation  and  it  is  urged that  the  present  arrangement  is  the  result  of  an  agreement  between  the "parties  arrived  at  on  May  9,  1960.  In  this  agreement  it  was  settled  rbat with  regard  to  work  on  Sundavs.  the  existing  practice  should  continue and  with  regard  to  work  on  holidays,  the  practice  which  obtained  in  the Indian  Airlines  Corporation  should  be  adopted.  The  present  scheme  was formulated  on  the  basis  of  this  agreement  and,  there  has  been  no  change of  circumstances  to  warrant  a  revision.  It  is  also  urged  on  behalf  of the  Corporation  that  the  present  terms  are  very  generous  and  are  much better  than  those  which  prevail  in  other  industries,  With  regard  to working  OP a  holiday,  it  was  contended  that  a  holiday  is  normally  paid for  at  the  full  rate  and  if  a  workman  is  required  to  work  on  such  a holiday,  he  is  paid,  in  addition,  at  double  the  ordinary  rate.  So,  in  the result,  he  is  paid  three  times  the  normal  rate  for  work  on  a  holiday. There  is,  therefore,  no  justification  whatsoever  for  compensating  him further  by  allowing  a  substituted  holiday.
 
158.  With  regard  to  the  work  on  a  Sunday,  the  case  of  the  Corpora- tion  is  that  the  prc  ""it  practice  is  in  accordance  with  the  requirements of  the  Indian  Factories  Act  which  does  not  cotemplate  the  payment  of any  compensation  for  working  on  a  "off  day"  if  a  substituted  "off  day" is  allowed.  The  allowing  of  such  a  substituted  holiday  for  the  weekly holiday,  is  obligatory.  This  holiday  is  required  for  rest  and  the  rest even  if  it  is  postponed  by  a  few  days,  does  not  justify  the  payment,  of extra  compensation.  On  the  other  hand,  it  is  alleged  by  the  union  that by  being  required  to  work  on  a  weekly  "off  day",  the  normal  rhythm  of the  workman's  life  is  UDset.  Ho  cannot  makW  plans  for  taking  part  in any  social  or  cultural  activity  which  is  only  possible  on  Sundays  or scheduled  "off  days".  If  he  wishes  to  jro for  a  picnic  or  attend  some  other function,  he  must  do  so  with  his  friends  and  relatives  who  would  be  free

SEC.  3(ii)]  THE  GAZETTE  OF  INDIA  EXTRAORDINARY  35*
•on  a  Sunday  or  the  normal  scheduled  "off  day".  By  being  deprived  of this  amenity,  he  loses  something  which  must  be  compensated  for,  not merely  by  his. being  allowed  a  substituted  holiday,  but  also  by  monetary- payment.  With  regard  to  work  on  holidays,  Counsel  for  the  union  could not  adduce  any  cn^en.t  arguments.  Declared  holidays  are  on  a  different footing  from  the  weekly  "off  days"  which  must  be  observed  compulsorily. A  worker  may  be  deprived  of  a  declared  holiday  provided  He is  adequate- ly  compensated.  Such  compensation  is,  in  fact,  given  to  him  at  double the  normal  rate  of  his  wage.  There  is,  therefore,  no  justification  for giving  him  an  additional  substituted  holiday.  If  a  substituted  holiday is  to  be  given,  there  should  be  no  payment  at  all  for  working  on  a holiday.
159.  Let  me  first  consider  the  question  of  compensation  due  for  being required  to  work  on  a  declared  holiday.  Exhibit  M-28  is  a  statement showing  the  practice  obtaining  in  some  of  the  other  industries.  In  only 3  out  of  a  total  of  18  industries  is  a  substituted  holiday  allowed  in  addi- tion  to  some  monetary  compensation  for  working  on  a  declared  holiday. In  all  other  cases,  compensation  is  paid  in  the  form  of  additional  wagea for  the  work  performed  on  a  holiday.  The  three  exceptions  are:
(i)  Bombay  Electric  Supply  and  Transport  Undertaking  where  for the  first  four  hours  a  substituted  weekly  "off  day"  is  given  with no  monetary  compensation.  But,  for  work  exceeding  four hours,  overtime  payment  is  made  and  a  susbtituted  holiday  is also  given.
(ii)  Premier  Automobiles  Ltd.,—workmen  ore  given  monetary  com- pensation  in  the  form  of  "half  day's  normal  wages  and  if  the* holiday  is  a  fosLival  one, full  day's  wages. They  are  also  allowed a  compensatory  holiday.
(iii)  Garlick  and  Co.  Private  Ltd.,—workmen  who  are  required  to work  on  a  holiday  arc  paid  11 times  the  normal  salary  and  are allowed  a  compensatory  "off-day".
160.  No  statement  showing  Ihe  practice  obtaining  in  other  international airline  companies  was  plpced  before  me  though  ot  the  time  of  the  argu- ments,  I  asked  the  pariios  to  furnish  this  information  as  it  would  have had  considerable  persu.^ivc  value  in  deciding  the  issue.
161.  With  regard  to  working  on  Sundays,  the  case  of  the  unions  must I  feel,  be  viewed  with  a  little  more  sympathy.  There  is  no  doubt  that  the Factories  Act  requires  only  the  allowing  of  a  substituted  holiday.  In practice,  the  Corporation  pays  a  meal  allowance  to  the  clerical  and  ad- ministrative  establishment  and  25  per  cent  of  the  wage  allowance  to  the engineering  staff  of  certain  categories  set  out  in  paragraph  16  of  the Establishment  Orders,  There  is,  however,  force  in  the  argument  that the  normal  routine  of  workmen  who  are  to  work  on  a  Sunday  or  the scheduled  "off  day"  is  upset  and  he  cannot  plan  any  social  or  cultural activity  on  that  day.  The  weekly  holiday  must  be  considered  as  a  right rather  than  as  an  amenity  which  the  employer  grants  to  the  workmen •and  the  deprivation  of  a  right  needs  to  be  compensated.
 
162.  Exhibit  M-27  is  a  statement  showing  the  practice  in  18  industries including  Air-India  and  Indian  Airlines  Corporation.  In  most  of  them, the  only  compensation  is  a  substituted  holiday.  In  some  of  Ihem,  mone- tary  compensation  is paid  in  lieu  of  a  substituted  holiday.  There  are  some

3<5o  THE  GAZETTE  OF  INDIA  EXTRAORDINARY  [PART  II—
instances  in  which  some  monetary  compensation  is  paid  in  addition  to  a substituted  holiday.  These  are:
(i)  Mazgoan  Dock  Ltd.,—the  subordinate  stall  are  paid  some  com- pensation  ot  which  the  amounts  are  set  out  in  Exhibit  M-27  in addition  to  the  substituted  holiday.
(ii)  Mackinnon  Mackenzie  & Co. Private  Ltd.,—when  the  employees arc  required  to  work  on  a  Sunday,  they  are  paid  at  the  rate  of 50 per  cent,  of  their  salary  in  addition  to  the  compensatory"  olr day.
(lii)  Larsen  and  Toubro  Ltd.,—workmen  when  called  to  work  on  a weekly  "off  day"  are  paid  li  times  the  normal  daily  wages  in addition  to  "compensatory"  oil  day  without  wages.  Thus,  the monetary  compensation  is  only  half  of  the  normal  daily  wage if  allowance  is  made  to  the  non-payment  of  th  • wages  on  the substituted  holiday.  This  Management  pays  a  d.^y's  normal wages  and  a  paid  "compensatory"  day  off  to  the  office  staff  and draughtsmen.
(iv)  Scindia  Workshop  Ltd.,—workers  attached  to  shops,  are  paid compensation  at  the  rate  of  50 per  cent,  of  their  wages  in  addi- tion  to  a  "compensatory"  day  off.
(v)  Garlic  &  Co,  Private  Ltd.,—employees  are  pair*  !J  times  their normal  wages  for  working  on  weekly  "off  drys'1  in  addition  to being  allowed  a  "compensatory"  off  day.
Therefore,  it  is  clear  that  some  industries  do  recognise  the  workmen's • claim  to  monetary  compensation  in  addition  to  a  "compensatory"  off  day when  he  is  required  to  work  on  the  usual  weekly  "off  day".
163.  Mly  attention  was  drawn  to  the  observations  made  in  the  Norms Committee  Report.  Page  62  deals  with  the  industries  in  Bomaby.  The Committee  was  of  the  opinion  that  if  a  workman  is  required  to  work  on a  weekly  holiday,  he  is entitled  to  a monetary  compensation  at  the  rate  of 50  per  cent,  of  his  normal  wage  and  is  also  entitled  to  a  substituted  holi- day.  I  may  quote  the  relevant  passage  giving  the  reasons  of  the  Com- mittee:
"A  holiday  by  way  of  a  weekly  off  is  intended  to  enable  workmen not  only  to  have  reet  and  recreation  at  regular  intervals  but also  to  enable  them  to  engage  themselves  in  social  activities— the  essential  social  needs  o£ workers  as  human  beinga.  A  sec- tional  or  general  holiday  has  a social, religious  or  political  signi- ficance.  To  deprive  workmen  of  their  weekly  off  or  sectional and  religious  holidays  is  to  disturb  their  normal  expectation  and ups:?t their  plans  and  programmes.  Realising  this  need  of  work-' mem  employers  in  progressive  countries  like  the  United Kingdom  grpnt  some  monetary  compensation  in  addition  to  a substituted  or  compensatory  holiday.  This  principle  of  mone- tary  compensation  has  been  accepted  by  Tribunals  in  Bombay."
 
164.  Party  No.  5 representing  the  Engineers,  as  I  have  observed,  abon- doned  their  demand.  According  to  the  rules,  engineers  and  store  staff receive  a  compensation  of  "!>  per  cent,  of  the  hourly  rate  of  their  basic pay  in  addition  to  the  substituted  "off  day",  It  seems  to  me  fair  and  just that  this  facility  should  be  extended  to  members  of  Party  No. 2 also.  My award  with  respect  to  their  demand  is  that  members  of  the  clerical  and administrative  staff  will  be  compensated  by  payment  of  25  per  cent,  of

Sic.  3(ii)]  THE  GAZETTE  OF  INDIA  EXTRAORDINARY  36I
the  hourly  rate  of  their  basic  pay  in  addition  to  the  substituted  oft  day". The  meal  allowance  which  is  paid  to  employees  drawing  salary  of  less than  Rs.  650/-  will  continue  to  be  paid  as  before.
165.  Two  other  questions  now  remain—
(i)  whether  monetary  compensation  should  be  paid  for  a  complete day  even  though  the  workmen  are  reqiured  to  work  for  a  part of  the  day  only;  and
(ii)  whether  the  Management  may  not  alter  the  usual  roster  to allow  a  workman  to  enjoy  a  holiday  even  though  according  to the  roster  he  should  have  worked  on  that  day.
166.  According  to  the  Corporation,  these  demands  are  unreasonable and  there  is  no  basis  whatsoever  for  entertaining  them.
167.  The  Management  is perfectly  within  its rights  in  altering  the  roster so  that  the  person  scheduled  to  work  on  a  holiday  can  be  told  that  he  can enjoy  the  holiday.  The  Management  should  not  be  compelled  to  retain him  and  pay  him  for  that  day  when  there  is  no  work  for  him  and  for  the same  reason,  a  part  of  the  day's  work  cannot  be  considered  a  whole  day's work  if  the  workman  is  to  be  paid  at  the  overtime  rates.  Work  on  a  de- clared  holiday  (other  than  the  weekly  "off  day")  is  treated  as  overtime work  and  is  paid  for  at  double  the  normal  rate.  The  holiday  is  already a  paid  holiday.  So,  the  compensation  is  ample  and  there  is  no  justi- fication  for  making  it  more  liberal.
168.  The  result  with  regard  to  the  demand  of  Party  No.  2  under  this heading  is  that  the  members  of  the  clerical  and  administrative  staff  will be  compensated  by payment  of  25 per  cent,  of  the  hourly  rate  of  their  basic pay  in  addition  to  the  substituted  "off  day".  The  other  demands  made  by them  are  rejected.
3.  Item  No.  12—Shift  Allowance.
169.  There  are  certain  operations  in  the  industry  which  must  be  per- formed  round-the-clock.  Planes  arrive  at  all  hours  of  the  day  and  night, the  airport  has  to  remain  open  all  the  24 hours,  and  the  engineering  staff must  be  available  at  all  hours  in  case  their  services  are  needed.  In  order to  meet  this  contingency,  shifts  have  been  fixed  for  various  types  of  duties Some  operations  are  performed  in  three  shifts  and  some  in  two  shifts  Iii the  case  of  three  shifts,  the  shifts  are:
(a)  Morning  Shift
..  6  A.M. to  2  P.M.
(b)  Afternoon  Shift
. .  2  P.M. to  10 P.M.
(c)  Night  Shift
..  10  P.M. to  6  A.M.
The  normal  shift  is  from  8  A.M. to  5  P.M. on  week  days  and  8 AM  to 1  P.M. on  Saturdays.  There  is  also  a  relief  which  comes  into  opera- tion  from  1.30  P.M. to  8.30  P.M.  The  different  patterns  of  these  shifts are  set  out  in  detail  in  Exhibit  U-II/11  which  may  be  referred  to  and  I will  here  mention  one  or  two  instances  only  to  explain  the  nature  of  these patterns.
 
170.  In  pattern  1,  there  is  a  cycle  of  four  weeks.  An  employee  works m  the  morning  shift  on  Mondays  and  Tuesdays,  on  the  afternoon  shift  on Wednesdays  and  Thursdays,  on  the  relief  shift  on  Friday,  on  the  nifiht shift  on  Saturday  and  takes  Sunday  "off".  This  completes  his  first  week

3&t  THK GAZETTE  OF INDIA  EXTRAORDINARY  [PAW 11^
During  the  second  week,  he  works  on  the  afternoon  shift  on  Monday, relief  shift  on Tuesday,  on night  shift  on Wednesday,  on morning  shift  on Thursday  and  Friday,  on relief  shift  on  Saturday  and  takes  Sunday  'off1. In  the  third  week,  the  pattern  of  the  first  week  is  repeated  and  in  the fourth  week  the  pattern  of  the  second  week  is  repeated.  Therefore, during  the  course  of  the four  weeks,  he  has four  'off'  days,  eight  morning shifts,  six  afternoon  shifts,  six  relief  shifts  and  four  normal  shifts.  This cycle,  therefore,  does  not  entail,  any  night  shifts  for  the  workmen.
17*L. The cycle  in pattern  2 involves  night  shifts.  On Mondays  and Tues- days  there  is  the morning  shift,  on  Wednesdays  and Thursdays,  an  after- noon  shift,  then  on  Fridays,  Saturdays  and  Sundays  follow  night  shifts, during  the  second  week  tHfere  is  a  night  'off'  on  Monday  and  a  day  'off' on  Tuesday.  On Wednesdays  and Thursdays,  there  are two morning  shifts and  on  the  next  three  days,  afternoon  shifts.  In  the  third  week,  on Mondays  and  Tuesdays,  there  are  night  shifts,  on  Wednesday  there  is a night  'off',  on  Thursday,  there  is  a  day  'off'.  Then  follow  three  morning shifts  on  Friday,  Saturday  and  Sunday.  The fourth  week  begins  witk afternoon  shifts  on Monday  and  Tuesday  followed  by two night  shifts  on Wednesday  and  Thursday;  then  there  is  a  night  'off'  on  Friday  and two days  'off'  on  Saturday  and  Sunday.  Thus,  for  a  worker  who falls  in  this pattern,  there  are  7 night  shifts,  7 morning  shifts  and  7  afternoon  shifts. Theru  are  three  nights  'off'  and  four  days  'off'.  The night  shifts  are in- variably  followed  by a  night  'off'  and a  day  'off'  to  provide  rest  for  the 2 or  3 night  shifts  as  the  case  may happen  to be.
172. The third  pattern  is made  up of morning,  afternoon  shifts  and day 'offs'.  There  are  1!J morning  shifts,  11 afternoon  shifts  and 5' 'off'  days.
173. These  patterns  though  complicated  at  first  sight,  have  been  design- ed  to promote  efficiency  and to  avoid  imposing  too much  strain  upon  the workmen.
174.  There  is  no  doubt  at  all  that  conditions  of  service  in  Air-India make  it  necessary  for  some  employees  to  work  on  shifts  of  this  type and, therefore,  to be at  their  jobs  during  hours  which  are not normal  hours of work.  There  is  a  certain  measure  of  inconvenience  caused  and  to com- pensate  this  inconvenience,  the  Management  has  evolved  & scheme  of compensation  called  "Shift  Allowance"  described  in  Establishment  Order No.  19, which  provides  as  follows.
175.  For  each  morning  or  afternoon  shift,  the  worker  is  paid,  in  addi- tion  to his normal  wages,  l/8th  of the normal  basic  pay.  For a night  shift, he  is  paid  3/8th  of  the  normal  basic  pay.  But,  no  shift  allowance  is admissible  in  respect  of  any  shift  which  begins  at  or  after  7 A.M.  or  ends at  or before  8 P.M.  This  is subject  to modification  by the General  Manager in  suitable  or  deserving  cases.
176.  It  will,  therefore,  be  clear  that  the  scheme  of  compensation  is desgined  to  give  compensation  in  those  cases  only  where  there  is  genuine inconvenience  or discomfort  caused.  The employees  are not satisfied  with this  scheme  and Parties  2 and 5, whom  alone  this  scheme  affects,  make additional  demands.
177.  Party  No. 5 virtually  dropped  the  demand  during  the  course  of negotiating  the agreement  of  October  15, 1965. The matter  was deaft  with in  the following  manner:
 
"There  will  be no  change  in  the existing  provisions  on  the  subject. It  is,  however,  agreed  that  Assistant  Superintendents  in  the

" ".  3(11)]  THE  GAZETTE  OF  INDIA  EXTRAORDINARY  .  jtfa
Maintenance  Division  of  the  Engineering  Dept.  who  are  regular- ly  rostered  in  shifts  will  be  paid  a  compensatory  allowance  of Rs.  150/-  per  month  in  lieu  of  Shift  Allowance."
T78.  On  behalf  of  Party  No.  2,  the  demand  is  as  follows.
179.  Morning  and  afternoon  shifts  must  count  as  one  hour's  overtime and  night  shift  count  as  1J  hours'  overtime.  A  demand  for  compensation for  a  normal  shift  for  those  working  in  shift  patterns  is  also  made  and  it is  claimed  that  a  normal  shift  should  also  be  counted  as  one  hour's  over- time.  The  workmen  claim  that  the  scheme  should  go  beyond  its  present scope  and  should  embrace  such  shift  or  other  type  of  rotational  shift  or shift  workers  who  are  required  to  alter  their  scheduled  shift  pattern  as in  Transport  or  Maintenance  shiftE.
180.  The  demand  is  resisted  by  Air-India  and  it  has  been  argued  on  its behalf  that  no  other  industry  in  the  country  pays  a  shift  allowance  of the  type  paid  by  the  Corporation.  It  is  further  urged  that  the  Factories Act  makes  no  provision  for  the  payment  of  shift  allowance.  All  that  Sec- tion  57  provides  is  that  a  holiday  which  follows  a  night  shift  will  mean  a period  of  24  consecutive  hours  beginning  with  the  end  of  a  night  shift. The  Corporation  hay  placed  on  record  two  statements  (Exhibits  M-16 and  M-24)  containing  information  regarding  the  payment  or  non-pay- .wient  of  shift  allowance  by  a  number  of  industrial  concerns.  Exhibit  M- 16  contains  a  list  of  24  industries  including  Air-India  and  the  Indian  Air- lines  Corporation.  Of  the  remaining  22,  19  are  in  the  public  sector  and three  in  the  private  sector.  Not  a  single  industry  in  the  private  sector pays  any  shift  allowance.  In  the  public  sector,  there  are  four  industries •which  pay  small  amounts  of  shift  allowance  but  this  shift  allowance  is ipaid  only  for  night  shifts  and  not  for  morning  or  afternoon  shifts.  For instance.  Bombey  Electric  Supply  and  Transport  Undertaking  pays  night shift  allowance  at  the  rate  of  5 per  cent  of  the  basic  salary  to  those  work- ers  who  work  permanently  on  night  shifts.  The  Hindustan  Shipyard "Ltd.,  pays  shift  allowance  to  those  employees  who  are  required  to  work upttj  and  after  midnight  and  these  employees  are  paid  ] /10th  of  the  basic salary  in  addition  to  their  usual  wages.  The  Hindustan  Insecticides  Ltd., jjavs  twenty-five  paise  per  day  to  those  employees  who  work  on  the  shift between  10  P.M. and  6  A.M. and  finally  the  Indian  Telephone  Industries !,td.,  pays  twenty-five  paise  per  day  to  its  employees  who  work  in  shifts. Exhibit  M-24  is  a  statement  showing  that  in  no  less  than  10  instances shift  allowance  was  rejected  where  the  employees  had  made  a  demand for  it.  The  demand  was  in  respect  of  night  shifts  or  second  or  third shifts.
 
181.  On  the  other  hand,  it  has  been  argued  on  behalf  of  the  union  that Ihe  air  transport  industry  is  a  peculiar  industry  and  in  this  industry  shift allowance  is  invariably  paid.  Apart  from  Air-India  and  the  Indian  Air- lines  Corporation,  a  number  of  foreign  airlines  pay  shift  allowance.  Ex- hibit  U-II/12  is  a  statement  showing  that  as  many  as  14 air  transport  com- panies  in  various  parts  of  the  world  pay  shift  allowance  at  various  rates. According  to  this  statement,  the  quantum  of  shift  allowance  is  not  a  per- rcntaee  of  the  workers'  wages  but  is  a  nxed  sum  determined  by  agree- ment  between  the  employers  and  the  employees.  The  Eastern  Airlines for  instance,  pay  7  cents  per  hour  in  the  case  of  afternoon  shifts  and  12 cents  per  hour  'for  night  shifts.  As  no  information  regarding  the  total emoluments-of  the  employees  in  this  company  is  known,  it  is  not  possible to  make  a  comparison  between  the  shift  allowance  paid  by  the  Eastern

364  THE  GAZETTE! OF INDIA  EXTRAORDINARY  [PART  I I-
Airlines  and  by  the  Air-India  Corporation.  I  am  unable,  therefore,  to say  whether  the  shift  allowance  paid  by  these  companies  Is  more  advan- tageous  to  the  workers  than  the  amount  paid  by • Air-India.  However,  it is  clear  that  shift  allowance  is  being  paid  by  as  many  as  14 air  transport companies  and  it  may  well  be  that  the  air  transport  industry  is  a  special type  of  business  in  which  the  workers  expect  and  the  employers  are  pre- pared  to  pay,  shift  allowance.  So,  we  may  disregard  the  somewhat  half- hearted  plea  made  on  behalf  of  Air-India  that  on  a  reconsideration  of the  entire  wage-structure,  shift  allowance  should  be  completely  eliminat- ed.  The  shift  allowance  is  being  paid  and  it  seems  to  mo  that  it  must continue  to  be  paid.
182. With  regard  to  the  quantum  of  the  allowance,  there  are  two  points for  my  consideration.  The  contention  of  Party  No.  5  is  that  shift  allow- ance  should  be  calculated  on  the  basis  of  the  total  salary  and  in  the  agree- ment  made  on  May  14,  1948, it  was  settled  between  the  Air-India  Limited and  the  Air-India  Employees'  Union  that  shift  allowance  would  be  a  pro- portion  of  the  wages  and  wages  must  be  assumed  to  include  all  allow- ances  such  as  dearness  allowance.  On  the  other  hand,  it  is  contended by  the  Corporation  that  "wages"  in  this  context  means  basic  wages  and shift  allowance  calculated  as  a  percentage  of  the  basic  pay  has  been  re- gularly  paid  to  those  workmen  who  are  entitled  to  it  and  no  objection on  this  ground  has  ever  been  raised  by  anyone.  My  attention  was  drawn to  the  consent  award  filed  before  Shri  Vyas  in  1960 in  which  it  was  agreed that  employees  working  on  shift  shall  be  paid  shift  allowance  at  the existing  rates.  The  existing  rates  at  that  time  were  the  rates  set  out  at the  beginning  of  this  item  viz.;  l/8th  of  the  basic  salary  in  respect  of morning  and  afternoon  shifts  and  3/8th  of  the  basic  salary  :n  respect  of night  shifts.  My  attention  was  also  drawn  to  the  recommendations  of the  Pay  Commission  that  allowance  for  night  shift  should  be  calculated on  the  basis  of  basic  pay  plus  the  dearness  allowance.
183.  Another  argument  urged  was  that  payment  of  shift  allowance should  be  extended  to  all  workers  at  all  places  in  India.  At  present,  this allowance  is  being  paid  only  to  workers  at  Bombay,  Calcutta,  Delhi  and certain  types  of  workers  at  Madras.  This  demand  is  resisted  by  the  Cor- poration  on  the  ground  that  the  condition*  of  work  at  other  places  differ and  at  Bombay,  Calcutta  and  Delhi,  the  shifts  entail  greater  inconveni- ence  to  the  workers  than  at  other  places  and  at  these  places  the  shift3 are  very  infrequent  and  no  compensation  for  those  working  on  shifts  is * justified
 
184.  In  order  to  determine  the  quantum  of  shift  allowance,  we  must take  into  consideration  a  number  of  circumstances.  In  the  first  place,  the very  nature  of  the  air  transport  industry  involves  the  performance  of certain  functions  round-the-clock.  It  is  the  Engineers  who  are  called upon  to  perform  these  functions  and  they  know  when  they  enter  service, that  they  will  be  required  to  work  early  and  late  and  sometimes  at  night. In  other  industries  where  the  work  is  continued  round-the-clock,  no  shift allowance  is  paid  except  in  a  few  industries  where  a  small  allowance  is paid  in  respect  of  night  shifts  only.  The  air  transport  companies  m  other parts  of  the  world,  do  make  an  extra  payment  for  morning,  afternoon and  night  shifts,  but  the  amounts  which  they  pay,  cannot  be  compared to  the  amounts  paid  by  the  Air-India  Corporation  because  no  information regarding  the  total  wages  earned  by  the  employees  of  those  companies has  been  placed  before  the  Tribunal.  The  Engineers  have,  m  their  agree- ment  of  October  15,  1965,  conceded  the  adequacy  and  reasonableness  of

SEC.  3 (II) j  THE  GAZETTE  OF  INDIA  EXTRAORDINARY  365
the  prevailing  rates  of  shift  allowance  by  giving  up  the  demand  and accepting  a  slight  modification  in  the  case  of  Assistant  Superintendents  in the  Maintenance  Division  only.
185.  My attention  was  also drawn  to  another  grievance  of  the  employees viz.,  that  those  who  work  on  shifts  are  occasionally  put  to  unneces- sary  inconvenience,  Exhibit  U-II/19  which  was  placed  before  me  con- tains  the  details  of  an  incident  which  took  place  on  August  15, 1962, when certain  employees  of  Air-India  detailed  to  report  at  a  late  hour  pf  the night  (223C)  were  told  on  arriving  at  the  airport,  that  their  services  were not  required.  If  these  facts  are  correct,  then,  a  certain  measure  of  in- convenience  must  necessarily  have  been  caused.  It  seems  to  me  however, that  this  is  an  isolated  instance  and  may  either  have  been  the  result  of an  error  or  was  a  consequence  of  unforeseen  circumstances.  The  matter has  been  brought  to  the  notice  of  the  Management  and  I  have  no  doubt at  all  that  action  is  being  taken  upon  it  and  if  the  employees  concerned have  a  genuine  grievance,  the  Management  will  give  them  redress  or relief.  Occasional  instances  of  this  kind  arej  perhaps,  inevitable  and  un- avoidable  and  a  solitary  instance  brought  to  my  notice  does  not  warrant the  making  of  general  remarks  or  the  giving  of  any  specific  directions  on my  part,  and  I refer  to  it  only  because  some  capital  was  sought  to  be  made out  of  it  during  the  course  of  arguments.
186.  After  considering  this  matter  most  carefully,  I  am  unable  to  hold that  the  present  rules  need  to  be  amended  or  liberalised.  The  Engineers have  thought  it  fit  to  accept  the  present  conditions  and  I  reject  the  de- mand  of  Party  No.  2  under  this  item. 4.  Item  No.  18-~Excess  flying  pay/excess  duty  allowance.
187.  Owing  to  the  strain  imposed  by  long  hours  of  flying,  limitations on  flying  hours  have  been  laid  down.  If  these  hours" are  exceeded,  an excess  flying  allowance  is  paid.  The  rules  now  in  force  were  made  In 1960  after  the  introduction  of  jet  aircraft.  Under  these  rules,  a  com- mander  was  being  paid  Rs.  20  for  each  hour  in  excess  of  80 hours  in  any consecutive  30  days.  The  first  officers,  flight  navigators  and  flight  engi- neers  are  paid  Rs.  15  per  hour.  Flight  pursers  are  paid  Rs.  6  and  assist- ant  flight  pursers  and  air  hostesses  are  paid  Rs.  5  per  hour.  By  the agreement  with  the  pilots  these  rates  were  revised  and  whereas  the  flying time  limitations  remain  at  80  hours  for  30  consecutive  days,  commanders are  to  be  paid  at  the  rate  of  Rs.  50  for  each  hour  in  excess  of  50  flying hours  and  first  officers  are  to  be  paid  Rs. 35 per  hour  m  excess  of  50  hours per  month.
188  There  was  no  demand  by  Party  No.  3  and  Party  No.  5  and  the dPmands  bv  the  remaining  parties  had  relation  to  duty  time  rather  tnan flS  time7  Flying  tmie  if  defined  as  the  total  time  from  the  moment  an S ft  first  taxies'out  under  its  own  power  for  t h e P u ^ o se  of  take-off to  the  moment  it  conies  to  rest  at  the  end  of  the  flight  -Th^is  also  can *>d "block  to  block"  or  "chock  to  chock"  time.  The  duty  time  is  a  nttie !onger  and  b e gS  when  the  flight  crew  reports  at  the  airport  and  ""fa
are:
(i)  Rs.  60  per  hour  by  commanders, (ii)  Rs.  45  per  hour  by  first  officers, (iii)  Rs.  50  per  hour  by  flight  navigators,  and (iv)  Rs.  35 per  hour  by  flight  engineers  (as  subsequently  amended).

3 66  THE  GAZETTE  OF  INDIA  EXTRAORDINARY  [FART  If-
Party  No.  2  claimed  an  allowance  for  every  hour  flown  in  excess  of  of flying  hours  at  the  iollowing  rates:
(a)  Cargo/live  stock  attendants—Rs.  10  per  hour.
(b)  Assistant  flight  purser  and  air  hostess.—Rs.  10  per  hour.. (c)  Flight  pursers—Rs.  12 '50  per  hour.
The  Corporation,  while  not  conceding  the  demand  made  by  the-  unions expressed  its  willingness  "to  consider  marginal  adjustments  in  the  rates of  excess  flying  pay  presently  in  force,  to  certain  categories  of  flight  crew."1
189. It  was  urged  on  behalf  of  the  unions  that  the  rates  of  excess  flying;

SEC.  3(iD]  THE  GAZETTE  OF  INDIA  EXTRAORDINARY  367
30  consecutive  days.  It  may  be  assumed  that  the  Director-General  of Civil  Aviation  had  taken  into  consideration  the  results  nl  modern  scienti- fic  investigation  into  the  type  of  fatigue  to  which  members  of  the  fllight crew  are  subject  in  jet  airplanes.  The  Federal  Aviation  Agency  of America  has  also  laid  down  rules  and  I  may  quote  from  Civil  Air  Regu- lations  (FAA—USA)  No.  41.321.  This  rule  was  revised  on  March  1, 1963:
"41.321,  FLIGHT  TIME  LIMITATIONS  FOR  AIRPLANES  HAVING TWO  PILOTS  AND  ONE  ADDITIONAL  FLIGHT  CREW MEMBER.
(,a)  A  pilot  may  not  be  scheduled  to  fly  a  total  of  more  than  12 hours  during  any  24 consecutive  hours.
(b)  When  a  pilot  has  flown  20  hours  or  more  during  any  48  con- secutive  hours,  or  24  hours  or  more  during  any  72  consecutive hours,  he  must  receive  at  least  18  hours  of  rest  before  being assigned  to  any  duty  with  the  air  carrier.  In  any  case  eacn pilot  shall  be  relieved  from  all  duty  for  not  less  than  24  con- secutive  hours  during  any  7  consecutive  days.
(c)  A  pilot  shall  not  fly  as  a  member  of  the  flight  crew  more  than 120  hour's  in  any  30  consecutive  days  or  300  hours  in  any  90 consecutive  days.  !
(d)  A  pilot  shall  not  fly  as  a 'member  of  the  flight  crew  more  than 1,000  hours  in  any  12-month  period."
192.  On  behalf  of  the  workmen,  a  number  of  documents  have  been placed  on  record.  These  are  copies  of  articles  and  reports  published  in various  magazines  and  their  purport  merely  is  that  jet  crew  fatigue  is  an important  matter  to  be  taken  into  consideration  as  it  concerns  the  safety of  the  passengers  and  of  the  flight  crew.  I  need  not  discuss  the  various arguments  given  in  these  articles  as  it  Is  now  generally  accepted  that the  jet  imposes  greater  strain  than  the  piston-engined  aircraft  because  of the  former's  faster  speed  and  more  complex  mechanism.  All  the  parties demanded  a reduction  in  the  maximum  hours  of  flight  time  and  flight  duty time,  and  an  increase  in  the  rest  periods.  The  pilots  entered  into  an agreement  with  the  Corporation  on  July  26,  1965,  as  already  stated,  and under  the  terms  of  this  agreement,  certain  limitations  were  fixed.  Broad- ly  speaking,  flight  time  limitation  was  fixed  at  9  hours  and  flight  duty lime  at  12  hours-  It  was  also  provided  by  this  agreement  that  no  pilot will  be  made  to  fly  for  more  than  2  consecutive  nights.  The  periodic flight  time  limitations  were  (a)  35  hours  for  7  consecutive  days,  (b)  50 hours  for  15  consecutive  days,  (c)  80  hours  for  30  consecutive  days,  and (d)  800  hours  for  one  calendar  year.  The  total  hours  of  duty  for  any  30 consecutive  days  was  limited  to  200  hours.  The  length  of  rest  periods enroute  was  also  fixed  by  this  agreement.
 
193.  Flight  engineers,  flight  navigators  and  cabin  attendants  have  ask- ed  for  even  lower  limitations  of  night  time  and  flight  duty  time.  It seems, however,  that  the  case  of  flight  engineers  and  flight  navigators  does not  merit  more  favourable  consideration  than  the  case  of  pilots.  The strain  of  manning  the  aircraft  is  greatest  upon  the  pilot.  The  limitations fixed  in  the  agreement  referred  to  above,  are  well  within  tne  limitations sanctioned  by  the  Federal  Aviation  Agency  of  the United  States  of  America in  which  the  safety  factor  has  been  abundantly  provided  for.  In  the  cir- cumstances,  it  cannot  be  said  that  the  flight  engineers  or  flight  navigators

3g8  THE  GAZETTE  OF INDIA  EXTRAORDINARY  [PAHT II—
will  not  be  able  to  operate  efficiently  if  the  limitations  which  obtain in  the  case  of  the  pilots  are  made  applicable  to  them  also.
194.  The  flight  navigators  were  negotiating  with  the  Corporation  in 1962  and  the  Corporation  wrote  a  letter  (Exhibit  M-92)  to  the  Indian Flight  Navigators'  Guild,  on  October  11, 1962,  agreeing  to  the  scheduling of  navigators  on  the  basis  of  9  hours  flight  time  and  12 hours  flight  duty- time  ajid  16  hours  flight  duty  time  during  any  consecutive  24  houra  in order  to  cover  delays.  This  was  accepted  by  the  navigators  on  December 19,  1962,  on  a  tentative  basis,  in  view  of  the  National  Emergency  then existing.  Whatever  little  evidence  of  other  airlines  has  been  produced, shows  that  flight  engineers  and  flight  navigators  are  usually  bracketed with  regard  to  flight  time  and  flight  duty  time  limitations  and  since  the crew  flies  as  a  unit,  it  seems  to  me  just  and  reasonable  that  the  flight engineers  and  flight  navigators  should  be  governed  by  the  same  rules with  regard  to  flight  time  and  flight  duty  time  limitations  and  rest  periods as  the pilots  under  the  agreement  of  July  26, 1965, and I  award  accordingly.
195.  With  regard  to  the  cabin  attendants,  it  seems  to  me  that  there  is no  need  tn  fix  any  limitations.  They  are  not  subject  to  the  same  stresses and  strains  as  the  members  of  the  operating  crew.  In  practice,  how- ever,  the  limitations  will  work  out  to  be  the  same  as  those  which  obtain in  the  case  of  the  operating  crew.  There  may,  however,  be  cases  in  which these  limits  are  exceeded  in  the  case  of  the  cabin  attendants  and  I  do not  wish  to  hamper  the  working  of  the  schedules  unnecessarily.  No safety  factor  is  involved  as  far  as  the  working  hours  of  the  cabin  atten- dants  are  concerned.  I  see  no  force  in  their  demand,  and  I  reject  it.  No harshness  will  result  from  this  rejection  because  as  I  have  already  stated, in  practice,  they  will  enjoy  the  same  privileges  and  benefits  in  this matter  as  the  members  of  the  operating  crew.
6-  Item  No.  23—Leave  facilities
196.  The leave  facilities  provided  by the  Corporation  are  set  out  in  regu- lations  22  to  29  of  the  Air-India  Employees'  Service  Regulations.  These regulations  are  based  on  the  terms  of  an  agreement  arrived  at  between the  parties  on  April  1, 1959.  No  demand  by  Party  No. 2 was  made  during the  course  of  the  arbitration  proceedings  before  Shri  Vyas.  Briefly speaking,  leave  is  of  the  following  types :
(i)  Casual  Leave  which  is  allowed  upto  a  maximum  of  10 days  per year  but  not  more  than  3  days  can  be  taken  at  any  one  time. Holidays  intervening  are  counted  as  casual  leave  but  not  holi- days  prefixed  or  suffixed  to  casual  leave.
(ii)  Special  Casual  Leave—where  an  employee  being  a  representa- tive  of  an  Association  of  the  Employees  recognised  by  the  Cor- poration,  is  required  to  attend  an  annual  general  meeting  or executive  meetings  or  any  international  meetings  or  conferen- ces,  this  type  of  leave  is  allowed  upto  10  days  per  year.  Any excess  is  debitable  to  the  normal  casual  leave.
 
(iii)  Privilege  Leave  is  allowed  at  the  rate  of  30  days  per  12  months of  continuous  service  and  after  the  first  12 months,  at  the  rate of  24  days  per  month.  This  leave  can  be  accumulated  upto  a maximum  of  90  daysj

SEC.  3(ii)]  THE  GAZETTE  OF  INDIA  EXTRAORDINARY  369
(iv)  Sick  Leave  to  the  extent  of  14  days  per  year  in  the  case  of flight  crew  and  10 days  per  year  in  all  other  cases.  Sick  leave can  be  accumulated  upto  45  days  with  full  pay  and  may  be availed  of  on  half  pay  for  double  the  period  i-e., upto  90  days-
(v)  Special  Sick  Leave —this is  given  at  the  rate  of  15 days  per  year of  completed  service  to  the  operating  crew  on  full  pay  and  30 days  on  half  basic  pay  to  employees  of  other  categories.  This leave  is  granted  only  in  cases  where  employees  are  suffering from  tuberculosis,  leprosy  or  cancer.  The  leave  can  be  accu- mulated  upto  a  maximum  of  180 days,
(vi)  Exgratia  sick  leave  is  granted  at  the  discretion  of  the  General Manager  for  a  period  of  30  days  on  half  pay  (basic)  and  half dearness  allowance  for  every  two  years  of  completed  service subject  to  a  maximum  of  60  days  during  the  entire  period  of the  employee's  service.
'
{vii)  Disability  leave  is  allowed  to  an  employee  who  is  injured  in  or during  the  course  of  his  employment  or  contracts  an  occupa- tional  disease.
(viii)  Study  Leave—Leave  without  pay  (if  there  is  no  leave  standing to  the  employee's  credit)  is  granted  for  purposes  of  study. (ix)  Maternity Leave  is  granted  to  women  employees  in  accordance with  the  local  laws—according  to  the  scheme  of  social  or  health insurance  and  if  such  a  scheme  does  not  obtain,  leave  is  gran- ted  for  a  period  not  exceeding  90  days  or  upto  the  end  of  six weeks'  from  the  date  of  confinement  whichever  is  earlier.
(x)  Quarantine  leave  is  granted  for  a  period  not  exceeding  30  days. This  leave  is  not  granted  to  an  employee  who  himself  is  suffer- ing  from  an  infectious  disease  and  to  him  the  normal  casual sick  or  privilege  leave  as  may  be  due,  is  granted.
(xi)  Sports  Leave  is  granted  to  an  employee  selected  to  represent the  country,  State  or  the  Corporation  in  some  competitive  sport upto  a  maximum  of  30 days  in  any  financial  year.
(xii)  Extraordinary  Leave  is  granted  on  compassionate  grounds  by the  General  Manager.
197.  All  parties  made  demands  under  this  item  and  claimed  more  libe- ral  leave  facilities.  In  the  agreement  with  the  pilots  arrived  at  with  the Corporation  on  July  26,  1965, the  demand  was  dropped  and  it  was  agreed that  the  leave  rules  obtaining  at  present  would  continue  to  operate.  The aircraft  maintenance  engineers  too  did  not  insist  upon  any  major  change when  they  settled  their  demands  on  October  15, 1965.  This  is  the  manner in  which  the  item  of  leave  facilities  was  dealt  with  in  the  agreement:
"It  is  agreed  that  if  an  employee  who  is  granted  disability  leave  for 90  days  under  the  existing  provisions  is  declared  medically  un- fit  to  resume  duties,  he  may  be  granted  at  the  discretion  of  the General  Manager  an  extension  of  such  disability  leave  for  a further  period  not  exceeding  274  days  which  shall  be  on  half basic  pay  plus  dearness  allowance."
 
The  All-India  Aircraft  Engineers'  Association,  therefore,  abandoned  its demands  with  regard  to  the  increase  in  the  quantum  of  the  various  types of  leave.  The  remaining  four  parties,  however,  persisted  in  their  demand

370  THE  GAZETTE  OF  INDTA  EXTRAORDINARY  [PART  II—
and  generally  speaking  on  their  behalf,  the  demand  is  that  they  should be  allowed  to  earn  the  leave  at  the  rate  of  48 days  per  year  af  service  and this  should  be  allowed  to  aaccumulate  upto  a  period  of  180  days.
198.  With  regard  to  casual  leave,  the  claim  is  that  the  maximum  period- should  be  5  days  at  a  time  and  not  3.  They  claim  that  sick  leave  should be  earned  at  the  rate  of  21  days  per  year  and  its  accumulation  upto  a period  "of  95  days  should  be  allowed.  They  also  claim  that  employees should  be  entitled  to  take  study  leave  on  certain  terms.  On  behalf  of the  cabin  attendants,  it  is  urged  that  they  should  be  entitled  to  the- same  privileges  as  the  members  of  the  flight  operation  crew.
199. The  Corporation,  in  its  written  statement,  conceded  that  privilege leave  may  be  allowed  to  be  accumulated  upto  a  period  of  120  days  and that  with  regard  to  sick  leave,  all  members  of  the  flight  crew  may  be governed  by  the  same  rule.  The  remaining  demands  on  this  item  were opposed  by  the  Corporation.
200.  There  is  also  a  demand  that  privilege  leave  which  has  not  been taken  should  be  allowed  to  be  cashed.  The  Corporation,  on  March  9, 1965, offered  to  all  members  of  the  operation  crew  that  they  could  take  leave on  double  pay  but  the  period  o{  leave  should  not  be  more  than  half  of the  total  leave  standing  to  the  credit  of  the  employees  concerned.  This offer,  however,  was  made  for  a  limited  period  and  was  not  intended  to remain  permanently  open.  The  encashment  of  leave  which  has  been earned  but  not  enjoyed  in  this  manner  is  not  an  outrageous  demand.  It may  be  that  leave  had  been  refused  because  o|  the  exigencies  of  service or  because  a  particular  man  could  not  be  spared  from  his  duties.  Leave rules  entitle  him  to  certain  periods  of  rest  on  full  pay  and  he  can  be  com- pensated  by  being  given  half  the  amount  of  leave  due  on  double  pay,  or merely  by  permitting  him  to  cash  his  leave.  Such  encashment,  however, can  only  take  place  at  the  end  of  service  by  retirement  or  resignation or  in  the  event  of  a  disability.  It  is  in  the  nature  of  leave  granted  to a  Government  servant  after  retirement  when  it  has  not  been  possible  to permit  him  to  take  leave  during  his  service.  On  refusal  of  leave  applied for,  a  Government  servant  is  permitted  to  take  leave  which  is  due  to  him and  which  can  be  taken  according  to  rules,  after  the  date  of  retirement. There  is  no  reason  why  this  facility  should  not  be  made  available  to  the workmen  of  Air-India.  The ^quantum  of  leave  permissible  under  the  re- gulations  is,  in  my  view,  adequate  and  there  is  no  justification  for  increa- sing  either  the  amount  of  casual  leave, privilege  leave,  sick  leave  or  special leave,  With  regard  to  study  leave,  there  appears  to  be  no  need  to  say anything  because  study  leave  may  be  granted  by  the  General  Manager according  to  the  procedure  prescribed  by  him.  I  am  not  satisfied  that the  present  state  of  affairs  is,  in  any  way.  unjust  or  harsh  with  regard  to study  leave.  I,  therefore,  make  my  award  as  follows.
201.  Privilege  leave  may  be  accumulated  upto  a  period  of  120  days. All  members  of  the  flight  crew  will  be  entitled  to  equal  treatment  under Regulation  24A.  Leave  earned  but  refused  to  a  workman  during  his service  will  be  allowed  to  be  cashed  when  the  service  of  the  workman comes  to  an  end  either  on  retirement  or  resignation  or  on  disability.  The remaining  demands  of  the  parties  on  this  item  are  rejected.
7.  Item  No.  38—Hours  of  work.
 
202.  The  present  position  is  governed  by  paragraph  11 (iv)  of  the Corporation's  Regulations  and  the  various  orders  issued  from  time  to

Stc.  3(ii)]  THE GAZETTE  OF INDIA  EXTRAORDINABY  3yr
time.  The  maximum  number  of  hours  of  work  laid  down  for  all  catego- ries  of  employees  is  48 hours  per  week.  An  employee  may,  however,  be required  to  work  overtime  in  which  case  payment  for  such  overtime  is- made  according  to  the  rules  made  by  the  Corporation.
203.  In  fact,  there  is  a  very  small  number  of  employees  who are  called, upon  to  perform  their  duties  for  the  maximum  period  of  48  hours  per week.  The  statement  (Exhibit  M-18)  shows  the  working  hours  of  differ- ent  categories  of  employees  in  the  Corporation  and  this  shows  that  the- working  hours  vary  from  30-96  hours  to  48  hours.  The  48-hour  week, obtains  only  in  the  case  of  drivers,  chowkidars,  etc.  The  clerical  an
204. A statement  placed  before  the Tribunal  (Exhibit  U-II/16)  by  Party No.  2,  shows  that  the  clerical  staff  work  on  an  average  34-38  hours  net (excluding  mea]  times,  tea  intervals  etc.)  while  the  single-shift  workers. work  40-34  hours  per  week.  Men  working  on  two-shifts  system  work 38  62 hours  per  week  and  on  the  three-shift  system  35-66  hours  per  week.
205.  No  demand  in  respect  of  this  item  was  made  by  the  pilots  (Party- No.  4).  Party  No.  5  reached  no  settlement  regarding  it  and  the  matter was  left  for  my  decision.
206. The demand  of  Parties  2, 3 and  5 is for  the  reduction  of  the  work- ing  hours.  On  behalf  of  Party  No. 2, it  is  claimed  that  the  weekly  work- ing  hours  including  the  half-an-hour's  break  should  not  exceed  36  hours for  the  clerical  and  administrative  staff  and  40 hours  for  the  works  staff.. They  also  demand  a  five-day  working  week  and  work  on the  two  remain- ing  days  to  be  treated  as  if  it  were  work  on  the  scheduled  "off"  days.. Further,  it  is claimed  that  at  Indian  outstatlons,  the reporting  hour  should be  one  hour  before  the  flight  and  two  hours  after  the  flight  time.  Or, in1 the  alternative,  the  weekly  hours  should  be made  the  same  as  in  the  case- of  the  workers  at  Bombay.  It  is  also  claimed  that  a  duty  roster  should be  prepared  for  all  classes  and  categories  of  employees  and  notified  be- forehand.  These  duty  rosters  should  indicate  the  rest  period  for  each- shift  or  relay,  and  finally,  it  \a  claimed  that  the  existing  shift  working, in  the  Maintenance  Division  or  in  departments  which  follow  Mainte- nance  working  pattern  should  be  worked  9Ut  within  the  five-day  work- ing  week  without  affecting  the  entitlement  of  a  'night  off'  for  any  conse- cutive  two  or  three  nights  within  the  five-day  week.
207.  On  behalf  of  Party  No.  3  (Air-India  Employees'  Union),  it  is- cjaimed  that  the  maximum  working  hours  per  week  should  be  35J hours- (net)  for  the  clerical  and  administrative  staff  and  39£ hours  for  the  engi- neering  and  technical  staff.
 
208.  On  behalf  of  Party  No. 5,  there  ia  a  demand  for  a  40-hour  week and  for  certain  adjustments  to  be  made  in  the  shift  patterns  to  avoid

373  THE  GAZETTE  OF  INDIA  EXTRAORDINARY  [PART II—
inconvenience  to  the  employees.  It  is  alleged  on  behalf  of  Party  No.  5, that  changes  are  made  by  the  Corporation  without  "giving  proper thought  and  consideration  to  the  convenience  of  the  engineers  and  the facilities  for  transport  available  to  them."  Lastly,  they  claim  that  the rest  period  should  be  not  less  than  12  hours  and  that  it  should  increase pro  rata  when  the  engineer  is  required  to  work  overtime.
209.  These  demands  are  vehemently  repelled  by  the  Corporation  and it  ha*  been  contended  by  Shri  Vimadalal,  Counsel  for  the  Corporation, that  no  case  whatsoever  has  been  made  out  for  any  reduction  in  the  work- ing  hours.  He  pointed  out  that  the  matter  was  considered  last  on  May 9,  1960,  in  the  agreement  placed  before  Shri  Vyas.  Previously,  there  was an  agreement  on  May  4,  1959,  on  this  matter  and  it  was  decided  to  post- pone  its  consideration.  The  matter  then  came  up  for  consideration  dur- ing  the  course  of  the  reference  before  Shri  Vyas  and  it  was  agreed  that the  previous  practice  with  regard  to  the  number  of  working  hours  per vreek  should  continue.  Shri  Vimadalal  argued  that  since  this  agreement was  reached,  conditions  had  in  no  way  changed  and  there  was,  therefore, no  justification  whatsoever  for  reducing  the  number  of  hours.  He  sub- mitted  that  the  Corporation  was  in  favour  of  a  universal  40-hour  live- day  week  applicable  to  all  employees  of  the  Corporation.  On  this  basis, the  parties  had  a  meeting  of  the  Labour  Relations  Committee  on  Septem- ber  25,  3964.  At  this  meeting,  representatives  of  the  Corporation  and  of the  employees  were  present.  The  Committee  recommended  that  the experiment  of  a  five-day  week  may  be  tried  in  some  units  of  the  Corpo- ration  which  observe  normal  working  hours  in  such  a  way  that  their total  weekly  hours  did  not  exceed  the  existing  figures.  The  workmen are  not  agreeable  to  any  increase  in  the  number  of  hours  if  the  five-day 40-hour  week  would  entail  such  increase  in  the  case  of  any  of  the  em- ployees,  even  though  in  the  case  of  many  more,  a  net  reduction  may  be the  consequence.
210  Shri  Vimadalal  went  on  to  point  out  that  in  recent  years,  the  Cor- poration  has  undertaken  considerable  additional  financial  burden  of  a recurring  type.  For  instance,  as  the  result  of  an  agreement  made  on May  9  I960,  an  extra  expenditure  of  Rs.  21-00  lakhs  per  annum  had  to be  incurred.  As  a  result  of  subsequent  agreements  with  the  representa- tives  of  the  flight  crew,  another  addition  of  Rs.  15-15  lakhs  per  annum was  made  to  the  wage  bill.  As  a  result  of  an  agreement  made  with  Party No  5  an  annual  expenditure  of  Rs.  4-70  lakhs  is  being  incurred.  Interim Relief  invoWmg  a ^ e x t ra  expenditure  of  Rs.  10-50  lakhs  p e r a n n u m h as been  granted  The  agreements  with  the  pilots  (July  26,  1965)  and  air-
would  entail  additional  cost  without  any  just  cause.
211  Shri  Vimadalal  pointed  out  that  the  Factories  Act  laid  down  a  48- hour  week  as  also  did  the  Shops  Act.  In  a  large  number  of  industrial concerns  weekly  hours  of  work  are  much  more  than  those  observed  by -the  employees  of  the  Corporation.  For  instance,  in  Zandu  Pharmaceuti-
 
i ^ rk  464  hours  per  week.  The  employees  of  Sigma  Laboratories  work

Sic.  3(il)]  THE GAZETTE  OF INDIA  EXTRAORDINARY  373.
47  hours  per  week  and  the  employees  of  Khandelwal  Laboratories  work 47  hours  per  week.  These  figures  are  given  in  the  Meher's  Award—re- ported  in  the  Industrial  Court  Reporter,  November  1964, pages  717-718 and  Bombay  Law  Reporter—page  373.

374  THE GAZETTE  OF INDIA  EXTRAORDINARY  [PART  I I-
217.  Party  No. 5 is  willing  to  accept  the  flve-day  40-hour  week  because the  members  of  this  Union  all  work  for  more  than  40  hours  per  week and  therefore,  the  acceptance  of  the  Corporation's  offer  will  be  beneficial to  members  of  Party.No.  5.
218.  After  giving  the  matter  my  earnest  consideration,  it  seems  to  m" that  the  present  system  of  working  hours  is  in  the  best  interests  of  the Corporation  from  the  point  of  view  of  productivity  and  efficiency,  as  also m  the  interest  of  the  workmen  who  are  not  prepared  to  accept  a'40-hour week  if  it  entails  any  increase  in  the  weekly  hours  of  work.  To  fix  a .five-day  week  involving  40  hours  of  work,  would  reduce  the  productivity (or  increase  the  cost  by  the  incidence  of  overtime  pay)  of  the  engineers, besides  such  a  measure  is  wholly  unacceptable  to  Parties  2  and  3.  In "the  circumstances,  I  would  let  the  present  state  of  affairs  continue  and reject  the  demand  of  all  parties.
8.  Item  No.  45—Night  flying  allowance.
219.  Since  a  great  deal  of  flying  by  the  aircraft  of  the  Corporation  is 'done  during  the  hours  of  night,  a  demand  has  been  made  that  a  special night  flying  allowance  be  paid  to  the  workmen  who  are  members  of  the •flight  crew.  There  is  no  demand  on  this  score  by  Parties  3 and  5.  It  may be  mentioned  that  the  workmen  who  are  likely  to  be  affected  by  this benefit  are  also  members  of  Party  No.  2  and,  therefore,  cabin  attendants ~who  fly  at  night  have  made  their  demand  through  Party  No. 2.  No  mem- bers  of  Party  No.  5  are  likely  to  be  engaged  on  night  flying  and  so  no demand  on  their  behalf  can  be  expected.  The  demands  of  the  ather  par- ities  may. be  set  out  as  follows: —
220.  Party  No.  2  claims  that  :
(i)  weightage  should  be  given  for  flight  duty  by  night  at  the  rate of Is  times  for  every  hour  flown;
(ii)  no  cabin  attendant  should  be  scheduled  for  more  than  two nights  of  flying  in  succession;  and
(iii)  flight  pursers  should  be  paid  a  night  flying  allowance  of  Rs.  8 per  hour  and  assistant  flight  pursers  and  air  hostesses  an  allow- ance  of  Rs.  6 per  hour.
221.  On  behalf  of  Party  No.  4,  it  is  claimed  that  weightage  should  be given  to  pilots  for  flying  by  night  at  the  rate  of  11 times  for  every  hour flown,  commanders  should  be  given  Rs.  10 per  hour  and  first  officers  Rs. 8 per  hour.  Similar  demands  are  made  by  Parties  6  and  7.  Party  No.  6 claims  night  flying  allowance  at  Rs.  10  per  hour  and  Party  No.  7  claims weightage  at  the  rate  of  1$ times  for  every  night  hour  flown  and  a  night allowance  of  R£.  10  per  hour.
 
222  The  demand  is  resisted  by  the  Corporation  and  it  is  pleaded  on  its behalf  that  such  allowance  is  not  justified  because  whatever  physical  or mental  strain  is  involved  in  night  flying  is  taken  Into  account  in  deter- mining  the  flight  and  duty  hours  of  flight  crews  with  appropriate  pro- visions  for  rest  periods.  It  is  further  contended  that  some  night  flying is  inherent  in  the  very  business  of  an  international  airline  and  a premium  rate  of  payment  either  in  the  form  of  allowance  or weightage  is  totally  unjustified.  Lastly,  it  was  contended  that  the  total emoluments  of  flight  crews  are  determined  on  taking  this  factor  mto consideration.  It  was  argued  that  owing  to  international  agree- ments  and  requirements,  a  good  deal  of  international  flying  has  to be  done

SEC.  3(il)]  THE  GAZETTE  OF  INDIA  "EXTRAORDINARY  375
at  night  and,  therefore,  night  flying  is  normal  feature  oE the  international air  transport  business.  On  behaK  of  the  unions  it  was  contended  that  at least  two  other  airlines,  viz.,  the  Indian  Airlines  Corporation  and  the KLM  give  night  flying  allowance  by  weighing  the  hours  of  night  flying  as compared  with  the  hours  of  day  flying,  Apparently  no  other  airlines  pro- vide  this  extra  benefit  to  members  of  the  flight  crew  for  no  evidence  to this  effect  was  produced  before  me.  Even  the  contention  with  regard  to KLM  was  not  supported  by  any  documentary  evidence.  However,  even if  it  is  accepted  that  the  Indian  Airlines  Corporation  and  the  KLM  give a  certain  measure  of  weightage  on  account  of  night  flying,  it  cacinot  be taken  as  a  ground  Tor enhancing  the  rate  of  night  flying  in  the  case  of  the Corporation  crews,  The  routes  of  the  Indian  Airlines  Corporation  are, with  two  exceptions,  internal  routes  and  no  question  of  international  re- quirements  or  agreement  is  involved,  Thus,  it  may  be  assumed  that day  flying  is  the  normal  pattern  and  so  some  additional  compensation is  paid  on  account  of  night  flying.  The  evidence  with  regard  to  KLM  is not  at  all  definite  and  I  was  not  shown  any  document  from  which  the special  reason  for  paying  such  allowance  may  be  gathered.  There  seems to  be  no  justification  for  departing  from  the  general  rule  of  other  airlines and  for  introducing  this  additional  benefit  in  the  case  of  the  Air-India Corporation.  When  the  case  of  the  pilots  was  being  negotiated,  they dropped  this  demand.  The  case  ot  the  other  members  of  the  flight  crew is,  in  no  way,  deserving  of  more  favourable  consideration  and  I  am  not satisfied  that  cogent  grounds  exist  for  awarding  night  flying  allowance to  any  member  of  the  flight  crew.  This  demand  mu3t,  therefore,  be rejected  and  I  reject  it.
9.  hem  No.  54—Meal  allowance.
223.  The  present  position  is  stated  in  paragraph  18 of  the  Establishment Orders  which  may  be  quoted  in  full:
"18,  Meal  Allowacne:
(i)  Subject  to  the  provisions  hereinafter  contained.  Meal  Allowance at  the  rates  specified  in  clause  (ii)  may  be  granted  to  an  em- ployee  based  in  India,  in  a  scale  of  pay  the  maximum  of  which does  not  exceed  Rs.  650  per  month,  if— (a)  he  is  required  to  work  on  a  Sunday  or  a  Holiday  prescrib- ed  under  Regulation  12(ii)  or  on  a  Saturday,  if  it  be,  half working  day,  upto  2 P.M.
(b)  he, being  on normal  shift,  is required  to  work  beyond  9  P.M. on  a  week  day,
'  or
(c)  he  is  required  to  work  during  his  meal  interval  if  he  is  not given  a  corresponding  time  'off1.
(it)  Meal  Allowance  will  be  paid  at  the  following  rates: Basic  Pay  Lunch/Dinner
Rs.  50-00—199-GO  Rs.  150 Rs.  200  00—399-00  Rs.  2 50 Rs.  400-00—650-00  Rs.  3-75
(iii)  An  allowance  at  50  per  cent  of  the  rate  mentioned  in  clause  (ii) may  be  granted  if  an  employee  is  required  to  work  through the  breakfast  hours,  i.e.  6.30  A.M.  to  9.00  A.M.,  when  the  break- fast  hours  do  not  form  part  of  his  scheduled  duty  hours.

376  THE  GAZETTE  OF  INDIA  EXTRAORDINARY  (TART II—
(iv)  Allowance  under  the  foregoing  clauses  may  be  also  granted  to an  employee  when  he  is  required  to  be  away  from  his  normal place  of  work  on  duty  during  the  period  of  Lunch/Dinner/ Braeakfast  hours.
(v)  No  allowance  under  the  foregoing  clauses  will  be  granted  in cases  where  Overtime  Allowance  or  Holiday  compensation  is payable  in  respect  of  the  same  period  (of  work)  for  which  the Allowance  is  claimed.  Likewise,  Meal  Allowance  will  not  be admissible  if  an  employee  is  required  to  work  on  Sunday, Holiday  or  Saturday,  as  a  result  of  his  shift  duties.
(vi)  Where  absence  from  normal  place  of  work  during  meal,  recess is  so  frequent  as  to  form  a  normal  feature  of  the  employee's duties,  he  may  be  paid  a  consolidated  Meal  Allowance  at  a monthly  rate  to  be  determined  by  the  General  Manager  with due  regard  to  the  circumstances  of  each  case.  The  monthly  meal allowance  will  be  payable  during  all  kinds  of  leave  with  pay other  than  privilege  ieave."
!
224.  No  claim  has  been  filed  by  Parties  3,  4,  6  and  7  on  this  matter. Parties  2 and  5 filed  a  claim  but  Party  No.  5  dropped  it  when  the  agree- ment  dated  October  15,  1965, was  reached.  The  main  contention  of  Party No.  5 was  that  the  benefit  with  regard  to  Meal  Allowance  should  be  ex- tended  to  employees  drawing  a  salary  of  more  than  Rs.  650  per  month and  the  quantum  should  be  substantially  increased.  This  was  resisted by  the  Corporation  on  the  ground  that  better  paid  employees  could  welt afford  to  buy  a  meal  when  the  need  arose.  This  appear  to  have  been conceded  by  the  union  and  the  demand  was  dropped.  The  only  demand before  me  now  is  the  demand  of  Party  No.  2  which  is  in  the  following terms:  i
"61  (A)  Meal  Allowance  should  be  paid  when  employees  are  re- quired  to  work  on  their  scheduled  'off'  days  including  weekly off  days.
(B)  The  allowance  should  also  be  payable  when  the  employee  is away  on  duty  from  his  normal  place  of  work  or  reporting. (C)  The  allowance  should  be  admissible  in  the  event  of  working on  a  Saturday,  which  is  a  half  day,  beyond  2  F.M. or  beyond 8.30  P.M. on  a  weekday.
(D)  The  allowance  should  be  admissible  notwithstanding  the  fact that  the  employee  concerned  is  entitled  to  'off'  overtime  or holiday  overtime  or  compensatory  allowance.
(E)  The  meal  allowance  should  also  be  paid  in  case  of  'work through  break'  in  addition  to  payment  of  overtime  for  suoh period."
 
I 225.  These  demands  were  vehemently  contested  by  the  Management and  it  was  urged  that  the  (jiving  of  meal  allowance  is  a  special  benefit which  Air-India  provides  for  its  employees.  No  other  industry  gives  any meal  allowance  and  late  hours  or  delays  are  compensated  in  other  ways, e.g., overtime  payment.  It  is  also  contended  that  the  present  practice  is  in pursuance  of  an  agreement  arrived  at  between  the  parties  on  April  1. 1959,  and  since  this  agreement  was  entered  into,  no  change  of  circum- stances  has  taken  place  and  no  ground  whatsoever  has  been  shown  why the  scheme  which  was  agreed  to  a  few  years  ago,  should  be  revised  and liberalised.  It  was  pointed  out  that  Party  No.  2  had  not  included  this demand  in  its  original  charter  upon  the  basis  of  which  the  present  refe- rence  was  made.  Party  No.  2  has  now  chosen  to  make  this  demand following  the  example  of  Party  No.  5.  Finally,  and  perhaps,  this,  accord-

SEC.  3(ii)]  tHK  OAZETTK  OF INDIA  EXTAAOftDlNABY  3 77
ing  to  Air-India,  is  the  strongest  argument  against  the  acceptance  of  the demand,  the  Corporation  is  already  doing  a  great  deal  for  its  employees in  providing  them  cheaper  meals.  In  addition  to  the  restaurant  at  the Santa  Cruz  airport  which  is  open  to  everyone  and  at  which  the  charges are  moderate,  there  is  a  subsidised  restaurant  which  is  available  to  the employees  and  at  this  restaurant,  the  meals  are  extremely  cheap  and  well within  the  purse  of  the  lowest  paid  employees.  Information  regarding this  restaurant  or  canteen  was  placed  before  the  Tribunal  and  a  Staff Notice  No." 54/61-62  dated  March  30, 1961, sets  out  the  extent  to  whjeh  this canteen  is  being  subsidised.  In  1955-56,  a  deficit  of  Rs.  33,665  was  made up  by  the  Corporation.  In  the  following  year,  the  loss  was  more  than Rs?. 57,000.  In  1957-58, the  subsidy  rose  to  more  than  Rs.  70,700  and  in  the year  1959-60,  the  extent  of  the  subsidy  was  Rs.  1,47,582.  Shri' Vimadalal stated  at  the  Bar  that  in  the  last  year.,  the  subsidy  was  about  Rs.  2.00 lakhs.  A  tariff  of  the  various  foodstuffs  available  in  the  canteen  and  the price  charged  for  them,  is  attached  to  the  Staff  Notice  and  a  perusal of  it  shows  that  the  charges  are  extremely  low.  For  instance,  sandwiches whether  of  egg,  mutton,  fish  or  vegetable,  cost  only  fifteen  paise  each.  A dish  of  egg,  mutton  or  fish  curry  or  fried  fish  is  only  twenty-five  paise. A  dish  of  mutton  or  fish  cutlet  costs  only  twenty-five  paise.  Even  such standard  articles  as  cigarettes  are  slightly  cheaper  in  the  canteen  thari in  the  market.  A  whole  meal  comprising  2  balls  of  rice,  1  wati  dal,  1 watl  vegetable,  2  chappatis  or  4  purees  and  1  papad  can  be  had  for  as little  as  35  paise.  A  non-vegetarian  meal  is  available  for  60  oaise.
226.  It  was  said  that  the  canteen  is  open  during  certain  hours  only and  that  if  an  employee  is  delayed  at  his  work,  he  cannot  avail  himself of  the  services  of  the  canteen.  Perhaps,  the  Corporation  can  see  its  way to  extend  the  hours  of  the  canteen  though  this  must  depend  on  the  volume of  actual  demand.  It  is  obvious  that  the  canteen  and  its  entire  staff  can- not  be  made  available  for  the  sake  of  one  or  two  employees  only.  Also, this  would  add  to  the  cost  and  further  increase  the  quantum  of  subsidy. This  is  a  matter  which,  I  am  sure,  can  be  settled  between  the  Corpora- tion  and  the  employees  and  is  scarcely  within  the  scope  of  my  enquiry.
227.  A  meal  allowance  of  this  type  is  not  intended  to  be  an  extra benefit  or  an  excuse  for  increasing  the  emoluments  of  the  employees.  It is  intended  to  compensate  to  some  extent  the  inconvenience  or  extra expense  occasioned  by  a  disturbance  in  the  normal  working  hours  or place  of  business.  The  meal  allowance  is  paid  because  the  employee  is away  from  his  normal  place  of  business  or  is  delayed  at  work.  The lower  paid  workman  needs  this  compensation  more  because  for  him  the margin  of  extra  expenses  is  smaller  than  for  a  higher  paid  employee. There  is,  therefore,  some  justification  for  fixing  a  wage  limit  below  which only  the  meal  allowance  is  admissible.  It  must  be  remembered  that  the Air-India  Corporation  is  the  only  concern  which  provides  this  benefit  to. its  employees.  It  was  frankly  conceded  before  me  by  Counsel  for  the Unions  that  to  their  knowledge  meal  allowance  is  not  paid  by  any  other industry  in  India.  For  the  same  reason,  the  quantum  of  this  allowance should  bear  adequate  proportion  to  the  status  of  the  employee  and  the sort  of  meal  he  would  normally,  have  and  the  amount  of  money  he  would normally  spend  if  he  were  buying  a  meal  for  himself.
 
228.  It  was  argued  on  behalf  of  the  Corporation  that  if  a  workman drawing  a  salary  of  less  than  Rs. 650 p.m.,  to  suit  his  own  convenience  and not  when  he  was  on  the  business  of  the  Corporation,  had- to  buy  a  meal,. he  would  not  ordinarily  spend  more  than  the  amount  which  has  been  fixed

378  THE GAZETTE  OP  INDIA  EXTRAORDINARY  tPAKT  I I-
by  paragraph  18 of  the  Establishment  Orders.  It  would,  therefore,  be  un- just  to  increase  the  meal  allowance  and  so permit  a  luxury  to  an  employee which  he  would  ordinarily  enjoy  merely  because  he  has  been  delayed  at work  or  had  to  go  out  on  the  business  of  the  Corporation,  The  incon- venience  of  working  late  or  having  to  go  out  is  compensated  by  other means  viz.,  overtime  payment  or  shift  allowance  if  he  happens  to  be  one of  those  workmen  who  work  in  shifts.  The  case  of  the  flight  crew,  it  was urged,  was  entirely  different  and  the  nature  of  their  duties,  entitles  them to  the  special  privilege  of  being  provided  their  meals  or  being  paid  the •expenses  incurred  by  them.
229.  After  considering  the  matter  very  carefully,  I  am  of  the  opinion that  only  one  of  the  demands  has  any  force  viz.,  the  demand  that  where an  employee  has  to  be  away  on  duty  from  his  normal  place  of  work  or reporting,  he  should  be  given  a  meal  allowance  under  paragraph  18  even if  his  case falls  under  clause  (v)  i.e., when  he  paid  an  overtime  allowance or  holiday  compensation.  The  question  to  be  considered  is,  what  is  the nature  of  a  meal  allowance,  is  it  intended  to  be  a  compensation  for  out  of pocket  expenses  or  is  it  aimed  at  providing  monetary  compensation  for the  inconvenience  caused  by  working  on  Sundays  or  being  required  to •work  at  a  place  other  than  the  normal  place  of  work.  In  my  view,  a meal  allowance  should  do  no  more  than  relieve  the  extra  expenditure involved  in  buying  a  meal  owing  to  unusual  hours  or  place  of  work. Considered  in  this  context,  I  find  that  the  present  regulations  are  suffi- ciently  liberal  and  the  only  alteration  I  would  make  is  to  remove  the exemption  in  sub-clause  (v)  when  applied  to  cases  falling  under  sub- clause  (iv).  This  will  mean  that  when  an  employee  is  required  to  be sway  from  his  normal  place  of  work  on  duty  during  the  period  of  lurich, dinner  or  breakfast  hours,  he  will  be  paid  a  meal  allowance  despite  the :fact  that  he  is  in  receipt  of  overtime  allowance  or  holiday  compensation foi  the  same  period.  There  is  no  force  in  the  other  demands  of  Party No.  2 and  I  am  not  prepared  to  accept  them.
230.  I  may  add  that  no  evidence  with  regard  to  payment  of  meal allowance  on  such  liberal  terms  in  any  other  industry  was  produced  before me  and  these  rates  compare  very  favourably  with  the  rates  prevailing  in the  Indian  Airlines  Corporation.
GROUP  III—-Retirement  Benefits.
231.  This  group  is  concerned  with  certain  benefits  arising  from  death, •accident  and  special  causes  or  on  retirement.  It  comprises  the  following items:
1.  Item  No.  20—Insurance  coverage. 2.  Item  No.  21—Provident  fund. 6.  Item  No.  46—Retirement  benefits/alternative  employment,  for attendants  and  flight  crew).
4.  Item  No.  31—Retirement  age. 5.  Item  No.  40—Gratuity.
6.  Item  No.  46.—Retirement  benefits/alternative  employment,  for
medically  unfit  flight  crew.
1.  Item  No.  20.—Insurance  coverage.
 
232.  This  item  and  item  No.  25  (Compensation  for  death  or  i n j u r y- relating  to  cabin  attendants  and  flight  crew)  may  be  considered  together

SEC.  S(ii)]  THE? OAZETTiE  OF  INDIA  EXTRAORDINARY  37^
as  they  are  intimately  related  and  the  demands  with  respect  to  them  were made  by  the  various  parties  as  if  they  presented  one  problem.  They  were also  argued  together  by  Counsel  for  the  parties.
233.  The  present  position  is  governed  by  Service  Regulation  No.  31 .and  Establishment  Orders  48  to  54.  Service  Regulation  No.  31  reads  as follows:
"31.  Compensation: In  the  event  of  death  or  disablement  while  on  duty,  by  an  accident to  an  employee  not  governed  by  the  Workmen's  Compensation Act,  or  the  Employees'  State  Insurance  Act,  or  in  the  event  of loss  or  damage  to  the  personal  belongings  caused  while  the  em- ployee  is  travelling  on  duty,  the  Corporation  may  pay  compen- sation  to  him  or  to  his  legal  representatives  as  the  case  may  be, at  such  rates  and  on  such  conditions  as  it  may  lay  down  from time  to  time,  unless  such  accident,  loss  or  damage  is  attribu- table  to  his  own  negligence,  default  or  breach  of  instructions."
 
•'234.  I  need  not  set  out  the  Establishment  Orders  48  to  54  in  full  but their  general  effect  is  that  members  of  the  flight  crew  are  insured  aaginst the  risk  of  death  or  personal  injury  by  accident  on  a  world-wide  twenty- .four  hour  basis  for  various  sums  of  money  ranging  from  Rs.  15,00OA in  the case  of  cabin  attendants  to  Rs. 55,000/- in the  case  of  the  Operations  Mana- ger.  There  is  also  a  provision  for  payment  of  various  sums  of  money  if death  is  caused  to  the  members  of  the  flight  crew  whilst  on  duty,  either while  flying  in  the  Corporation's  or  any  other  aircraft  or  travelling  in  any surface  transport  provided  by  the  Corporation  or  its  agents  or  from  con- tact  with  any  movable  part  of  the  aircraft  while  it  is parked  on  the  ground. In  case  of  injury  from  an  accident  resulting  in  disablement,  total  or  partial a  varying  scale  of  compensation  is  provided.  To  employees  other  than members  of  the  flight  crew,  compensation  up  to  a  maximum  of  36  times the  basic  pay  is  payable  when  he  dies  or  is  disabled  as  a  result  of  an  acci- dent  while  flying  on  duty  in  the  Corporation's  aircraft  or  any  other  licen- sed  aircraft.  Where  employees  are  entrusted  with  the  transportation, protection  and/or  handling  of  the  Corporation's  cash,  they  are  further protected  by  a  provision  which  guarantees  the  payment  of  compensation on  death  or  injury.  The  maximum  in  these  cases  is  60 times  the  basic  pay of  the  employee.  Lastly,  there  is  a  provision  for  indemnifying  the  em- ployee  against  any  loss  which  he  may  sustain  on  his  personal  insurance policy  by  suffering  death  or  injury  as  a result  of  an  accident  to  the  aircraft In  which  he  is  flying  on  duty  under  conditions  which  may  invalidate  his policy.  One  other  broad  feature  of  the  insurance  and  compensation Scheme may  be stated.  No employee  is insured  against  natural  death,  and even  members  of  flight  crew  are  not  insured  against  such  risk.  In  the case  of  the  members  of  flight  crew,  the  insuracne  against  the  risk  of accident  is  in  addition  to  the  compensation  payable  on  death  or  injury caused  as  a result  of  accident  while  on  duty.  Any  private  insurance  policy taken  out  by  any  employee  is  not  to  be  taken  into  consideration  while -assessing  the  measure  of  compensation  or  insurance  money  payable  to  the employee.  The  amount  of  compensation  payable  by  the  Corporation  is, however,  limited  to  the  balance,  if  any,  remaining  after  deducting  any insurance  amounts,  damages  or  compensation  recoverable  by  an  emp^yee or  his  legal  representatives  from  any  transport  carrier  or  under  the  Work- men's  Compensation  Act.  According  to  Air-India,  its  present  scheme  of insurance  and  compensation  is  adequate  and  indeed,  very  generous.  The unions  have,  however,  made  demands  for  better  treatment  On  behalf  of

380  THE  GAZEWfiOB1  INDIA  EXTHAOKDItfAIffc'  CRAw-Eh"-
 
Party  No. 2, the  Air  Corporations  Employees'  Union,  it  is urged  that, the ground  staff  of  the  Corporation  should  be  insured  against  risk  of  death or  personal  injury  by  accident  on  a  continuous  basis  for  Rs. 20,000/- plus 36 times the basic pay and substantive allowances in the, event of death and at  150 per  cent,  of  these  amounts  in  the  case  of  permanent  disablement. The  union  further  claims  that  all  cabin  attendants  and  cargo/live  stock attendants  should  be  covered  by  insurance  on,  a  continuous  basis  for Rs. 30,000/- plus 36 times  the basic pay  and substantive  allowances, against death ,and  for  150 per  cent,  of  these  amounts  against  permanent  disable- ment.  It  is claimed  compensation  should  also be  paid  to  cabin  attendants when  the  liability  arises  while  the  seat  belt  sign  is  on,  It  is  submitted that  the  insurance  policies  should  be  individual  and  personal  and  should continue in the event of retirement  or cessation  of employment  on medical grounds, and on maturity, the policy should be handed over to the employee concerned.  On  behalf  of  Party  No.  3, it  is  demanded  that  drivers,  coach cleaners  and  other  employees  who  are  involved  in  hazardous  operations* should  be  adequately  covered  by  insurance  against  risk  while  on duty  and the  Corporation  should  provide  free  legal  aid  to  the  drivers  of  vehicles in case legal  proceedings are  taken  against  them.  The union  makes  a  fur- ther  claim  to  the  effect  that  any  fines  imposed  on  the  employees  *for breaches  of  rules  under  the  Motor  Vehicles  Act,  should  be  paid  by  the Corporation.  Party  No.  5  demands  that  its  members  should  be  covered in the same manner  as members  of  the flight crew.  Its  claim with Respect to  insurance  coverage  for  the  aircraft  engineers  on duty, whether  they  are part  of the  crew or not, and when they take  part  in test flights  or training ferry,  charter,  schedule  and non-scheduled  or Air Force flights, is that  they should  be  insured  for  a  sum  of  Rs. 20,000/- plus  36 times  the  gross  salary and  be  also  indemnified  against  invalidation  of  their  own  personal  insu- rance.  Further,  the  Union  demands  insurance  against  ground  risk  and it  is  contended  on  its  behalf  that  there  are  far  more  risks  on  the  ground than  in  flight  and  the  anxiety  resulting  from  attending  to  aircraft  "con- siderably  affects  the  life  of  all  Engineers.  The  noise  and  tension  at  the airport  exposes  the  aircraft  engineers  to  severe  hazards."  The  Uniori, therefore,  demands that there should be" ground risk  coverage to the  extent of  36 times the  gross  salary  for  loss  of  life  and  a proportionate  amount  of compensation  for  any  disabilities  suffered  as  a  result  of  any  accident  in the course of  employment.  Party  No. 6 demands that  the insurance  cover- age  should  be substantially  increased.  The  Union  claims  that  in  the  case of flight navigators, the amount of insurance should be raised to Rs. 50,000/- and  in  the  case of  cadet flight navigators, to  Rs. 30,000/-.  The  Union also- claims  that  the  Corporation  should  pay  compensation  for  death  up  to  a maximum  of  36 times  the  navigator's  monthly  pay  (if  death  occurs  while travelling  on  duty  in  an  aircraft  or  by  surface  transport  provided  by  the Corporation  or  its  nominated  agents).  The  Union  demands  that  the  in- surance  should  be in line with the  cover provided  by the New India  Assu- rance  Company  Limited,  i.e.  an  insurance  cover  of  Rs.  60,000/-  or  Rs. 30,000/- as the case may  be on a twenty-four  hour  world-wide basis  cover- ing  all  flights  and  ground  risks.  Lastly,  Party  No,  7  claims  that  the present  Insurance  coverage  should  be  broadened  to  include  the  risk  of natural  death  and  the  insurance  limit  should  be  increased  to  Rs  50 000/- for  flight  engineers  and  Rs.  25,000/-  to  cadet  flight  engineers  In addition  to  this  insurance,  the  Union  claims  the  payment  of  compen- sation  on  death  up  to  a  maximum  of  36  times  the  employee's  monthly pay  if  such  death  occurs  on  duty  in  the  circumstances  mentioned n  the  circular  No.  INT/A-313/57  dated  December  30,  1957  or  while travelling  on  duty  by  surface  transport  provided  by  the  Corporation or  its  nominated  agents,  such  compensation  to  be  calculated  on  a  sliding

ftitc. sen)]  mm  dAiffiftt  OF hflbu  EXT&Atmt>iNASY  38*
"cale  as  provided  by  the  abovementioned  circular.  The  capital  sum  men- tioned  in  the  circular  should  be  taken  to  mean  36  times  the  pay  plus Rs.  50,000/-  in  the  case  of  flight  engineers  or-Rs.  25,000/-  in  the  case  of teadet  flight  engineers.
235.  The  Corporation  has  repelled  these  demands  and  it  has  been  con- tended  on  its  behalf  that  the  present  provisions  are  more  than  adequate. With  regard  to  the  hazards  to  which  employees  other  than  the  members i>f the  flight  crew  are  subjected  while  they  undertake  air  journeys ^n  the business  of  the  Corporation,  it  is  alleged  that  in  addition  to  the  provisions for  compensation,  the  employees  are  entitled  to  the  benefits  provided  by the  Warsaw  Convention.  Employees  who  are  not  members  of  the  flight crew  are  issued  tickets  and  the  holder  of  a  ticket  is  entitled  to  recover  a sum  oi' approximately  Rs.  42,000  from  the  carriers  in  case  of  an  accident. The passenger  is not  required  to prove  negligence  on the part  of  the  carrier and  the  liability  arises  out  of  the  presumption  of  a  fault.  A  statement was  made  at  the  Bar  that  in  case  of  an  accident,  air  carriers  pay  out  this sum  to  the  legal  representatives  of  all  those  who  are  killed  in  the  course of  the  accident  unless  it  can  be  definitely  proved  "that  there  was no  fault". This  may  happen  if  sabotage  by  a  third  party  can  be  proved  beyond  a reasonable  doubt.  With  regard  to  the  claim  for  insurance  against  natural death  and  the  insurance  policy  being  made  personal  and  valid  even  after retirement  in  the  case  of  the  flight  crew,  it  is  contended  that  this  would amount  to  the  giving  of  benefits  not  warranted  by  the  employer-employee relationship  nor  would  such  benefit  have  any  relation  whatsoever  to  the hazards  which  the  employment  occasions.  No  other  industry  provides  such a  benefit  and  indeed,  the  benefits  provided  by  the  Corporation  are  far  in excess  of  those  provided  by  other  industries.  On  behalf  of  Party  No.  2i a  fear  was  expressed  that  when  an  air  hostess  does  not  observe  the  seat- belt  direction,  she  may  be  accused  of  negligence  and  therefore,  it  may  be- held  that  she  is  not  entitled  to  any  compensation  or  insurance  money. Against  this,  it  has  been  said  that  an  air  hostess  is  supposed  to  attend  to the  passengers  and  if  in  the  discharge  of  her  duties  she  does  not  comply with  the  seat-belt  direction,  she  cannot  be  accused  of  negligence  and  she would  not,  therefore,  be  debarred  from  the  benefits  accruing  to  her  under the  insurance  and  compensation  scheme.  This  clarification  was  accepted by  the  Counsel  for  Party  No. 2.
236.  The  questions  that  require  consideration  therefore,  are:
(1)  Whether  there  should  be  insurance  coverage  against  the  risk of  natural  death  in  the  case  of  members  of  the  flight  crew,  .
(2)  Whether  the  members  of  the  ground  staff  should  be- insured  by the  Corporation  against  the  risk  of  death  or  injury  by  accident on  continuous  basis;  if  so,  what  should  be  the  extent  of  such insurance?
(3)  Whether  the  insurance  policies  should  be  in  the  individual names  of  the  employees  and  should  remain  valid  even  in  the event  of  retirement,  or  cessation  of  employment  on  medical grounds,  and  whether  on  maturity  the  policies  should  be  hand- ed  over  to  the  employees.
(4)  Whether  drivers,  coach  cleaners  etc.  should  be  insured  by  the Corporation  against  death  or  injury  while  performing  their duty.1
 
(5)  Whether  the  Corporation  should  provide  free  legal  aid  to  drivers in  all  cases  of  legal  proceedings  arising  out  of  an  accident  or  a breach  of  Motor  Vehicles  Act,  and  whether  the  Corporation

382  THE  GAZETTE  OF INDIA  EXTRAORDINARY  [PAHT II—
should  compensate  the  drivers  to  the  extent  of  penalties  im- posed  on  them  by  courts  of  law.
(6)  Whether  the  aircraft  engineers  should  be  treated  on  a  par  with flight  engineers  in  the  matter  of  Risk  Insurance.
(7)  Whether  engineers  who  are  not  members  of  the  flight  crew- should  have  an  insurance  coverage  of  Rs.  20,000  plus  36  times their  gross  salary  while  undertaking  flights  as  a  part  of  their duty.
(8)  Whether  there  should  be  an  insurance  coverage  against  acci- dent  on  the  ground  and  if  so,  what  should  be  the  extent  of  this insurance?
237.  The  pilots'  demand  that  the  risk  of  natural  death  should  be  in- cluded  in the  insurance  coverage, was  dropped  while negotiating  the  agree- ment  of  July  26,  1965,  and  it  was  settled  that  the  terms  with  regard  to compensation  for  death  or  injury  should  remain  as  laid  down  in  the  rele- vant  Establishment  Order  read  with  Reguation  31 of  Service  Regulations. The  aircraft  engineers'  agreement  also  dealt  with  this  matter  and  now it  is  agreed  that  if  an  aircraft  engineer  is  required  to  travel  on  duty  as  a supernumerary  crew,  he  will  be  provided  with  an  insurance  cover  of Rs.  35,000  against  death  by  accident  while  flying  as  a  member  of  such crew  apart  from  the'compensation  as  admissible  to  him  under  the  existing rules.  Also,  it  is  agreed  that  compensation  for  ground  risks  will  be  in. accordance  with  the  award  of  this  Tribunal.
238.  The  only  evidence  produced  by  the  parties  consists  of  a  statement (Exhibit  M-5)  filed  by  the'Corporation  relating  to  21  concerns,  including Air-India  and  the  Indian  Airlines  Corporation.  The  statement  show3 that  apart  from  these  two  concerns,  there  is  no  provision  for  insurance in  any  industry  or  concern.  The  Bombay  Port  Trust  gives  an  ex  gratia compassionate  allowance  to  dependents  of  an  employee  or  himself  if  pro- vident  fund  and  special  contribution  is  not  sufficient  in  the  opinion  of  the Board.  The  amount  thus  paid  is  entirely  in  the  discretion  of  the  Board. The  Bombay  Electric  Supply  and  Transport  Undertaking  provides  insu- rance  coverage  to  those  employees  who  are  governed  by  the  Bombay  In- dustrial  Relations  Act,  and  who  are  called  upon  to  furnish  securities  by way  of  fidelity  insurance  policies.  None  of  the  remaining  17  concerns which  include  the  State  Bank  of  India,  Bombay,  the  Indian  Oil  Cor- poration,  the  Fertilizer  Corporation  of  India,  the  Hindustan  Machine Tools  Limited,  Bangalore,  the  Hindustan  Steel  Limited.  Rourkela,  in  the public  sector  and  the  Scindia  Steam  Navigation  Company  Limited, Godrej  and  Boyce  Manufacturing  Limited,  Bombay,  the  Premier  Auto- mobiles  Limited  etc.  in  the  private  sector,  have  any  provision  for  giving any  benefits  to  its  employees  by  way  of  insurance  coverage.  The  unions did  not  bring  to  my  notice  any  evidence  to  show  that  there  are  any industrial  concerns  which  provide  insurance  coverage  of  the  type  inclu- ded  in  their  charters' of  demands.
239.  The  points  enumerated  above  may  now  be  disposed  of :
 
(1)  There  seems  to  be  no  ground  for  extending  the  insurance  coverage to  the  risk  of  natural  death.  The  whole  basis  of  insurance  as  between employer  and  employee  is  the  relationship  of  master  and  servant  If  the servant  runs  any  risk  or  hazard  in  the  course'  of  his  employment,  his master  compensates  him  by  providing  him  insurance  coverage.  Natural death  is  an  act  of  God  and  bears  no  relation  whatsoever  to  the  conditions of  employment  or  the  master-servant  relationship,  and  I  see  no  reason

SEC.  3(ii)]  THE  GAZETTE  OF  INDIA  EXTElAORDINARY  385
whatsoever  for  acceding  to  this  demand  of  the  workmen.  Also,  I  am  of the  view  that  the  amount  of  insurance  coverage  for  members  of  the flight  crew  is  quite  adequate  and  there  is  no  justification  for  increase  in the  case  of  cabin  attendants  and  air  hostesses.
(2)  The  demand  of  the  ground  staff  for  insurance  coverage  against the  risk  of  death  or  injury  by  accident  on  a  continuous  basis,  stems  from? a  similar  provision  made  for  pilots.  The  case  of  pilots  is, however,' totally different  from  that  of  the  ground  staff  and  there  is  no  reason  why"  there should  be  continuous  accident  insurance  in  their  case.  If  death  or  injury is  caused  in  the  performance  of  the  employee's  duties,  there  is  ample- provision  for  compensation  under  the  Workmen's  Compensation  Act. The  ground  staff  do not  run  any  special  risk  as compared  with  the  hazards, encountered  in  other  vocations  and  industries,  and  simply  because  the employees  are  attached  to  the  air  transport  industry,  they  cannot  claim special  advantages  which  have  no  relation  whatsoever  to  flying  or  the risks  of  flying.  I  am,  therefore,  not  prepared  to  concede  this  demand.
(3)  For  the  same  reasons,  the  demand  of  the  workmen  that  the  insu- rance  policies  should  be  in  their  individual  names  and  should  continue even  after  retirement  or  cessation  of  employment,  on  medical  grounds,  is. wholly  unreasonable.  There  is  no  reason  for  adding  to  the  retirement benefits  by  extending  an  insurance  policy  which  will  remain  in  force after  the  employee  has  ceased'to  be  subject  to  the  hazards  which  it  was, intended  to  cover.  In  the  event  of  retirement  or  cessation  of  employment on  medical  grounds,  the  employee  receives  his  provident  fund  and'  a. gratuity  if  a  gratuity  scheme  exists,  and  I  find  myself  unable  to  concede- this  demand.
(4)  Death  or  injury  caused  to  drivers,  coach  cleaners  etc.  while  per- forming  their  duty,  is  compensated  under  the  Workmen's  Compensation Act.  The  argument' given  above,  applies  to  this  demand  also  and  I  can see  no  reason  fox  giving  preferential  treatment  to  the  drivers  and  coach cleaners  of  Air-India  as  compared  with  men  in  a  similar' employment  in other  industries.
.(5)  The  demand  for  legal  aid  to  drivers  when  legal  proceedings  'are started  against  them,  would  place  a  premium  on  reckless  and  negligent driving.  When  a  driver'is  at  fault  there  is  no  reason  why  the  Corpora- tion  should  provide  him  with  legal  aid.  If,  however,  proceedings  are taken  against  a  driver  who  is  not  at  fault,  then  'the  Corporation  will willingly  compensate  him  with  expenses  that  might  have  been  incurred by  him  in  those  proceedings.  I  am  informed  that  this  is  already  being done  but  if  there  is  any  doubt  or  exception,  I  would  say  that  the  workman is  entitled  to  full  compensation  on  his  acquittal  by  the  court.  If  he  i" convicted  and  has  to  pay  a  penalty,  it  must  be  because  he  was  negligent or  contravened  the  Motor  Vehicles  'Act,  and  the  Corporation  cannot  be expected  to  compensate  him  for  such  wilful  default  or  negligence.
 
(6)  I  have  already  referred  to  the  additional  benefits  gained  by  the aircraft  engineers  under  their  agreement  with  the  Corporation,  dated October  15,  1965.  There  appears  to  be  no  reason  for  extending  this  bene- fit  further  and  treating  them  on  a  par  with  flight  engineers  in  every  res- pect.  Flight  engineers  incur,  while  flying,  special  risks  and  aircraft  engi- neers  run  no  such  risks.  I  have  already  pointed  out  that  when  employees who  are  not  members  of  the  crew  undertake  air  'journeys  on  duty  they are  covered  bv  the  Warsaw  Convention.  There  is  a  move  to  increase  the amount  payable  under  the  Warsaw  Convention  and  the  increase  will  bene-

384  THE  GAZETTE  OF INDIA  EXTRAORDINARY  [PART II—
fit  all  workmen  of  the  Corporation  who  are  provided  with  air  travelling tickets.
(7)  The  case  of  engineers  who  undertake  flying  as  part  of  their  duty although  they  are  not  members  of  the  crew  has  been  partly  covered  by the  agreement  of  October  15,  1965,  and  there  is  no  justification  for  pro- viding  them  with  any  extra  coverage.
(8)  This  issue  is  covered  by  the  Workmen's  Compensation  Act,  ana if  deatfl  or  injury  is  caused'as  a  result  of  an  accident  on  the  ground,  the employee  is  covered  by  the  provisions  of  that  Act.  The  case  of  an  Air- India  workman  is  in  no  way  different  from  that  of  an  employee  in  any other  industry  and  I  see  no  reason  to  extend  insurance  coverage  in  terms of  the  demand  made.
240.  The  result,  therefore  is  that,  the  position  in  regard  to  insurance coverage  will  remain.as  before  except'to  the  extent  it  has  been  modified by  the  agreement  of  the  All-India  Aircraft  Engineers  with  Air-India  dated October  15,  1965,  and  the  drivers  of  the  Corporation  will  also  be  entitled to  compensate  themselves  to  the  extent  of  the  expenses  incurred  or  loss caused  if  they  are  acquitted  by  courts  of  negligent  driving  or  any  breach of  the  Motor  Vehicles  Act,  for  which  legal  proceedings  were  taken against  then.
2.  Item  No.  21—Provident  fund
241.  The  present  position  is  governed  by  the  Air-India  Employees'  Pro- vident  Fund  Regulations,  1954.  The  relevant  articles  are  Rule  2(b)  which defines  pay,  Rule  14  which  sets  out  the  rate  of  subscription  by  the  . em- ployees  and  contribution  by  the  employer,  Rule  20  which  deals  with  pay- ments  and  Rule  22  which  states  certain  consequences  of  an  employee • ceasing  to  be  a  member  of  the  provident  fund  scheme.  The  net  result of  these  rules  is  that  every  member  or  employee  is  obliged  to  make  a contribution  to  the  fund,  each  month,  at  a  rate  not  less  than  8-1/3  per cent,  and  not  exceeding  20  per  cent,  of  his  pay  and  allowances  (but  ex- cluding  dearness  allowance).  The  Corporation,  at  the  same  time,  makes a  contribution  equal  to  the  amount  contributed  by  the  subscriber  or  em- ployee  but  not  exceeding  8-1/3  per  cent,  of  the  pay  earned  by  the  em- ployee  during  the  month  to  which  the  contribution  relates.  Out  of  the funds  so  formed,  payments  are  made  to  the  employees  on  their  ceasing to  be  members.  If  the  employee  has  been  a  member  for  less  than  five years,  then,  the  amount  contributed  by  him  is  paid  out  in  full  and  the amount  contributed  by  the  employer  is  forfeited  to  the  fund.  But,  if  he has  been  a  member  for  more  than  five  years,  then,  the-entire  amount standing  to  his  credit  consisting  of  his  own  contribution  and  the  contri- bution  made  by  the  employer  is  paid  to  him.  With  regard  to  the  forfeit- ed  amount,  it  is  credited  to  what  is  called  the  Lapse  Fund  Account.  This is  administered  by  a  Board  of  Trustees  and  is  used  for  providing  berierits and  amenities  to  the  employees  including  the  payment  of  interest  to  the members  of  the  fund  at  a  rate  higher  than  that  fixed  under  the  Rules. If,  however,  a  member  is  dismissed  for  serious  or  wilful  misconduct,  the Board  may  forfeit  the  employer's  contribution  together  with  the  inter°~t thereon  in  respect  of  the  entire  service  of  the  employee  or. for  such  short- er  period  as  may  be  decided  by  the  authority  competent  to  dismiss  the employee.  The  employee's  own  contribution  in  such  cases  is  paid  to him  in  full  with  interest.  The  employee  is  given  an  opportunity  to  show cause  against  the  forfeiture  and  the  cause  shown  by  him  must  be  taken iato  consideration  before  final  orders  of  forfeiture  are  passed:

OEC. 3(11)]  THE  GAZETTE  OF  INDIA  EXTRAORDINARY  385
242.  The  demand  with  regard  to  the  provident  fund  figured  in  the original  demands  made  by  the  employees  in  1960.  When  during  the arbitration  proceedings  an  agreement  was  reached  between  the  Corpora- tion  and  its  workmen,  the  question  of  provident  fund  was  not  settled  and this  demand  was  referred  to  Shri  Vyas  as  sole  arbitrator.  I  have  already n a r r a t ed  the  circumstances  in  which  the  award  of  Shri  Vyas  was  set  a3ide and  so  the  issue  of  provident  fund  remained  alive  up  to  the  moment  of the  present  reference.
243.  The  demand  in  respect  of  provident  fund  now  being  made  by  the various  unions  of  the  employees  is  (a)  an  increase  in  the  employer's  con- tribution  to  an  amount  greater  than  the  present  8-1/3  per  cent,  and  (b) that  it  should  be  calculated  not  only  on  the  basis  of  pay  and  allowances but  also  on  the  dearness  allowance.  Parties  2,  4,  6  and  7  demand  that  the contribution  of  the  employer  should  be  10  per  cent,  of  the  basic  pay  and allowances,  including  dearness  allowance.  P a r ty  No.  3  demands  that  t he employer's  rate  of  contribution  should  be  8-1/3  per  cent,  of  the  basic pay  and  dearnes  allowance.  No  demand  has  been  made  by  P a r ty  No.  5, There  is  a  further  demand  by  P a r ty  No.  2  that  to  the  Lapse  Fund  Account, the  Corporation  should  make  an  annual  allocation  of  not  less  than Rs.  50,000  and  the  fund  should  be  administered  as  a  benelit  fund  by  a Board  of  Trustees  who  should  consult  the  workers'  representatives through  'the  various  unions  and  Guilds.  Finally,  there  is  a  demand  that the  employees'  contribution,  as  well  as  the  employer's  contribution, should  be  paid  to  the  workmen  on  the  termination  01  his  services  irres- pective  of  his  period  of  service.
244.  The  argument  advanced  on  behalf  of  the  unions  is  that,  under Section  6  of  the  Employees'  Provident  Fund  Act,  the  employer's  contri- bution  has  been  fixed  at  6^  per  cent,  of  the  basic  wage,  dearness  allow- ance  and  retaining  allowance.  Therefore,  the  Act  contemplates  the  in- clusion  of  t he  dearness  allowance  in  the  amount  on  the  basis  of  which t he  employer's  contribution  is  to  be  calculated.  Extending  the  argument, it  is  submitted  on  behalf  of  the  unions,  that  the  contribution  made  by the  Corporation  whether  it  is  at  the  rate  of  8-1/3  per  cent  or  more,  should be  calculated  on  the  basic  wage  and  the  dearness  allowance  taken  toge- ther.  The  unions  have  cited  a  number  of  instances  in  which  the  em- ployer  makes  a  contribution  of  8-1/3  per  cent,  or  more  of  the  basic  pay and  allowances.  The  document  filed  on  behalf  of  P a r ty  No.  3  (Exhibit U | I I I | ])  contains  a  list  of  17  industries  of  which  in  12  cases  dearness allowance  has  been  included  for  calculating  the  employer's  contribution. .But,  of  these  12,  only  8  are  cases  in  which  t he  full  dearness  allowance has  been  included.  In  3  cases,  only  half  the  dearness  allowance  has  Deen taken  into  account  for  calculating  the  employer's  contribution  and  in  one case,  the  employer's  contribution  is  only  6^- per  cent,  of  the  baf;Ic  pay  and dearness  allowance.  Therefore,  of  the  17  cases,  there  are  only  8  in  which the  employer's  contribution  is  made  at  the  rate  of  8-1/3  per  cent,  or  more of  the  total  amount  of  basic  wage  plus  dearness  allowance.  There  are 6  cases  in  which  the  contribution  is  more  than  8-1/3  per  cent.  viz..  10 per  cent.  But,  of  these  cases,  there  is  only  one  in  which  dearness  allow- ance  has  been  included.  In  the  remaining  5,  the  employer's  contribution ie  10  per  cent,  of  the  basic  pay  only.  There  are,  thus,  less  than  half  the total  number  of  case3  cited  in  which  dearness  allowance  has  been  includ- ed  in  the  amount  on  the  basis  of  which  the  employer's  contribution  at t he  rate  of  8-1 /3  per  cent,  or  more  is  being  made.
 
245.  As  against  this,  the  Corporation  has  filed  a  statement  (Exhibit M-l)  giving  the  details  of  28  industries  of  which  22  are  in  the  public  sec-

386  THE  GAZETTE  OF  INDIA  EXTRAORDINARY  [PART  I I-
tor  and  6  in  the  private  sector.  There  is  no  case  in  which  the  contribu- tion  of  the  employer  exceeds  8-1/3  per  cent,  and  there  are  9  casea  in which  the  contribution  of  the  employer  to  the  provident  fund  is  at  the rate  of  8-1/3  per  cent,  of  pay  and  dearness  allowance  and  two  cases  In which  the  amount  contributed  is  8. per  cent,  of  pav  and  dearness  allow- ance.  There  are  also  some  cases  in  which,  for  the  lower  category  of  em- ployees,  the  contribution  is  calculated  at  the  rate  of  8-1/3  per  cent,  ot pay  and  dearness  allowance.
246.  The  factors  which  must  be  taken  into  consideration  for  determin- ing  this  matter  are:
(a)  the  general  wage-structure  of  the  employees; (b)  the  financial  capacity  of  the  employer;  and (c)  the  conditions  prevailing  in  other  industries  of  a  similar  nature in  the  same  region.
247.  I  have  already  dealt  with  items  (a)  and  (b)  at  some  length  when discussing  some  general  principles  of  wage-structure  in  Chapter  V  and also  when  considering  the  items  in  Group  I.  The  business  of  the  Corpo- ration  has  been  expanding  and  the  quantum  of  profit";  hat>, over  the  years, increased.  Although  there  was  a  small  diminution  in  the  net  profits  in the  year  1964-65, it  seems  to  me  that  the  Corporation  possesses  the  capa- city  to  meet  the  additional  burden  resulting  from  a  liberalisation  of  the provident  fund  rules.
248.  With  regard  to  item  (c),  the  question  to  be  considered  is  with what  other  industries  can  a  comparison  be  made.  For  the  purpose  of  pro- vident  fund,  a  comparison  of  the  workmen  of  Air-India  can  reasonably  be made  with  the  employees  of  any  other  industry  because  the  employer's contribution  to  this  fund  is  a  subsidiary  benefit  which  bears  no  relation to  the  nature  of  work  involved.  There  are,  as  many  as  17  cases  in  the public  and  private  sector,  in  which  the  employer  is  making  e  contribu- tion  at  the  rate  of  8-1/3  per  cent,  of  the  pay  and  allowances  including the  dearness  allowance  of  the  employee.  It  seems  to  me  tnat  there  is good  ground  for  making  the  same  provision  in  the  case  of  Air-India.  It may  be  mentioned  that  by  virtue  of  an  amendment  to  the  Employees' Provident  Fund  Act  of  1952  in  January  1963,  in  certain  industries,  en- gaged  in  the  manufacture  of  mechanical  or  general  engineering  products, iron  and  steel,  paper  etc.,  the  employer  is  obliged  to  make  a  compulsory contribution  of  8 per  cent,  of  the  salary  plus  dearness  allowance.  This  Act does  not  apply  to  Air-India  nor  does  the  direction  issued  by  the  Central Government  in  the  Ministry  of  Finance  O.M.  No. F.l(3)-PC/65  dated  April 29,  1965.  But,  the  policy  of  the  Government  is  sufficiently  indicated  in this  order  and  I  deem  it  just  and  reasonable  to  hold  that  Air-India  should make  a  contribution  equal  to  the  contribution  made  by  the  employee subject  to  a  maximum  of  8-1/3  per  cent,  of  the  pay  including  dearness allowance.1.  Pay  for  this  purpose  would  be  as  defined  m  Rule(2)  of  the Air-India  Employees'  Provident  Fund  Regulations.
249.  As  already  stated  earlier,  Party  No.  5  had  not  made  any  claim under  this  item.  Even  so,  it  has,  in  its  agreement  of  October  15,  1965, with  the  Corporation,  agreed  to  be  content  with  the  present  scheme  of the  Provident  Fund  subject  to  their  technical  pay  and  qualification  pay where  admissible,  being  treated  as  pay  for  the  purpose  of  the  Air-India Employees'  Provident  Fund  Regulations.  The  members  of  this  party  will, therefore,  be  governed  by  their  agreement,  which  has  already  been  made a  part  of  my  award.

Src.  3(11)]  THE  GAZETTE  OF  INDIA  EXTRAORDINARY  387
250. Thre  is  no  substance  in  the  demand  that  the  employer's  contribu- tion  should  be  paid  to  the  workman  on  the  termination  of  his  service even  when  he  has  not  been  a  member  c£ the  Provident  Fund  Scheme  for a  period  of  5 years  or  more,  A  workman  who  leaves  aitc-v a  short  period of  employment,  is  not  entitled  to  the  special  benefit  of  the  tmployer'a contribution.
3.  Item  No.  25—Compensation  for  death  or injury  {relating  to  cabin  atten-
dants  and  flight  crew).
251.  This  matter  has  already  been  discussed  and  disposed  of  under  Item.
No.  20,  and  nothing  further  needs  to  be  said.
4.  Item  No.  31—Retirement  age.
252.  At  present,  the  retirement  age  of  the  Air-India  employees  is  gov- ernend  by  Service  Regulations  No.  46  and  47.  Service  Regulation  No. 46t is  as  follows:
"46.  Retirement  Age:
(i)  Subject  to  the  provisions  of  sub-regulation  (ii)  hereof,  an  em- ployee  shall  retire  from  the  service  of  the  Corporation  upon, attaining  the  age  of  58 years,  except  in  the  following  cases  when. he/she  shall  retire  earlier;
(a)  Any  employee,  upon  becoming  medically  unfit  for  carrying
out  his/her  duties;
(b)  A  member  of  the  flight  crew,  upon  his  licence/endorsement
bsing  cancelled  or  withdrawn;
(c)  An  Air  Hostess,  upon  attaining  the  age  of  30 years  or  on  mar-
riage,  whichever  occurs  earlier.
(ii)  The  General  Manager  may  require  an  employee  to  retire  after- he  attains  the  age  of  55  years  on  giving  three  months'  notice- without  assigning  any  reason.  An  employee  may  also  retire voluntarily  after  attaining  the  age  of  55  years  on  giving  three- months'  notice."
253.  Regulation  No. 47 provides  for  a  further  extension  of  the  employee beyond  the  age  of  retirement  for  an  aggregate  period  not  exceeding  two years except  in  the  case of  Air  Hostesses  where  the  services  can  be  extend- ed  upto  a  period  of  5  years.  The  extension  is  granted  on  the  employee being  found  medically  fit.
 
254.  The  general  demand  of  the  employees  is  that  the  retiring  age should  be  fixed  at  60,  The  Unions  are  opposed  to  the  provision  whereby the  services  of  an  employee  can  be  terminated  after  he  attains  the  age  of 55  on  giving  3 months'  notice  without  assigning  any  reason.  The  Union3, therefore,  want  that  part  of  Regulation  46 to  be  abrogated.  On  behalf  of the  air  hostesses,  it  is  claimed  that  the  retiring  age  should  be  raised  to  35 and  a  provision  should  be  made  for  further  extension  of  service  upto  3, years.  In  the  case  of  pilots,  the  Management  has  opposed  the  demand, and  it  is  contended  on  its  behalf  that  the  age  of  retirement  was  recently increased  from  55 to  58.  This  was  done  in  1963 and  became  effective  from December  1, 1962.  The  Management  defends  its  right  of  retiring  any  of  its employees  after  the  age  of  55  on  giving  him  or  her  three  months'  notice. This,  it  is  alleged,  is  essential  in  the  interest  of  efficiency.  In  the  air  trans- port  business,  the  highest  measure  nf  efficiency  is  demanded  and  the  least

388  THE  GAZETTE  Or  INDIA  EXTRAOHDINAKY  [PAJIT II—
lapse  may  entail  grave  risks  to  life  and  property.  $o,  the  Management wants  only  the  moat  competent  employees  to  handle  the  duties  assigned to  them.  It  has  been  argued  on  behalf  of,Air-India  that  although  some men  are  physically  and  mentally  fit  even  after  the  age  of  55, there  is,  in general,  a  decline  in  competence  and  efficiency,  and  wherever  such  decline is  noticeable,  the  Management  should  have  the  power  to  retire  the  em- ployee.  It  has  been  argued  that  the  analogy  with  other  industries  and with  pe/sonnel  handling  air  transport  in  other  countries  is  not  relevant because  although  recently  there  has  been  an  improvement  in  the  average age  and  health  of  Indians,  the  efficiency  of  an  Indian  after  55  on  account of  climatic  and  other  factors  is  not  so high  as the  efficiency  of,'say,  a  West- ern  European  or  an  American.  This  is  not  to  say  that  Indians  are  not  as skilful  or  as  intelligent,  but  merely  that  owing  to  climatic  and  working "conditions,  there  is  a  marked  deterioration  in  their  health,  and  since  seve- ral  types  of  jobs  in  the  air  transport  industry  require  the  most  accurate co-ordination  between  mind  and  body  and  a  measure  of  alterntness  which •enables a pilot  or  a  flight  engineer  to react  promptly  to  unanticipated  even- tualities,  it  would  be  dangerous  to  run  the  slightest  risk  of  imperilling .the lives  of  human  beings by  an  undue  measure  of  leniency  in  this  respect,
255.  It  has  been  argued  on  behalf  of  the  Unions  that  the  power  to  retire an  employee  after  the  age  of  55 is  liable  to  abuse  and  that  if  an  employee has  displeased  his  superior,  he  may  be  retired  on  grounds  other  than  those upon  which  an  order  of  retirement  can  legitimately  be  made.  By  way  of .answer  to  this  argument,  Air-India  have  placed  on  record  a  statement (Exhibit  M-13)  showing  the  number  of  cases  in  which  the  option  regard- ing  the  retiring  of  an  employee  after  the  age  of  55 was  used.  This  state- -ment  shows  that  since  the  new  regulation  came  into  force  in  December, 1962,  there  have  been  only  3  retirements  among  workmen  at  the  age  of 55 as  against  18 workmen  who  were  allowed  to  continue  beyond  55  years. Among  employees  other  than  workmen,  there  have  been  no  cases of  retire- ment  at  the  age of  55 while  as  many  as  9 persons  were  allowed  to  continue beyond  the  age  of  55.  Thus,  the  percentage  of  retirement  at  the  age  of  55 is  extremely  small—being  just  about  10  per  cent  of  the  total  employees who  attain  the  age  of  55  or  over.  It  cannot,  therefore,  be  said  that  the power  to  retire  between  the  age  of  55 and  58 was  abused.  I  asked  Councel for  the  unions  if  there  had  been  any  instance  of  employees  protesting against  retirement  before  attaining  the  age1 of  58 and  I  was  informed  that there  had  been  no  such  case  and  the  retirement  order  had  been  accepted without  protest  or  demur.  Thia  shows  that  the  power  of  the  Management under  Regulation  46 (ii)  has  been  used  only  in  the  interest  of  efficiency, and  the  decisions  of  the  Management  have  not  been  questioned.  There  is no  ground  for  believing  that  there  is  any  likelihood  of  the  power  being abused  in  future  and  indeed,  if  an  employee*  is  competent,  thf  Manage- ment  will  not  want  to  retire  him  and  will  wish  to  retain  his  services  as long  as  possible.  No  employer  wants,  without  reason,  to  retire  or  termi- nate  the  services  of  an  experienced  and  competent  employee.'

SEC.  3(il)]  THE  GAZETTE  OT  INDIA  jXTRAQflDINARY  389?
leave  the  service.  Counsel  for  the  Corporation  placed  before  me  a  table (Exhibit  M-14)  which  shows  that  the  average  service  of  an  air  hostess  for the  5  years  between  1960  and  1965  was  only  two  years.  Only  2  air  hos- tesses  reached  the  age  of  30.  None  was  retired  at  the  age  of  30 and  in  all, 70 air  hostesses  resigned  before  reaching  the  age  of  retirement.  The  total number  of  air  hostesses  at  present  is  87  and,  therefore,  it  will,  at  once,  be seen  that  most  of  them  chose  to  leave  service  of  their  own  free  will.  It was  argued  that  the  extension  of  age  to  35  will  not  make  any  substantial difference  and  that  the  only  result  will  be  to  benefit  one  or  Jwo  air hostesses  who,  perhaps,  do  not  possess  in  adequate  measure,  those  quali- fications  which  make  a  good  air  hostess.  There  were,  indeed,  two  cases in  which  the  extension  was  granted  and  so  it  will  be  seen  that  in  a  pro- per  case, the  Management  is  willing  to  extend  the  serice  of  an  air  hostess for  a  suitable  period.
257.  With  regard  to  the  age  of  retirement  for  employees  in  general,  my attention  was  drawn  to  the  remarks  made  by  the  Supreme  Court  in  Guest,, Keen,  Williams  (Private)  Ltd.  and  Sterling  (P.J.)  and  others—1959-11- LLJ-page  405.  This  was  a  dispute  between  the  Management  of  Guest, Keen,  Williams  (Private)  Ltd.,  and  46 workmen  who  had  been  retired  on attaining  the  age of  55 years  or  over.  The  previous  history  of  employment by  this  Management  shows  that  at  the  start  no, age  of  superannuation  had been  fixed  but  subsequently  by  a  Standing  Order  which  was  certified,  the retirement  age  was  fixed  at  55.  The  matter  was  taken  before  the  Labour Tribunal  and  it  was  held  that  the  age  of  compulsory  retirement  should be  55  in  regard  to  persons  employed  subsequent  to  the  certification  of  t he Standing  Order.  But,  there  should  be  no  age  of  retirement  in  regard  to the  prior  employees  and  so  the  Appellate  Tribunal  directed  that  the  47 workmen  who  had  been  compulsorily  retired  should  be  reinstated  on  cer- tain  conditions.  The  matter  was  taken  before  the  Supreme  Court  and  it was  held  that  the  rule  of  retirement  for  previous  employees  should  be  60' but  that  the  rule  of  55 should  apply  to  all  employees  entering  service  after the  Standing  Order  came  into  force.  Gajendragadkar,  J.  who  delivered the  judgment  of  the  Court,  went  on  to  observe:
"In  fixing  the  age  of  superannuation,  industrial  tribunals  have  to- take  into  account  several  relevant  factors:  What  is  the  nature- of  work  assigned  to  the  employees  in  the  course  of  their  em- ployment?  What  is  the  nature  of  the  wage-structure  paid  to them?  What  are  the  retirement  benefits  and  other  amenities available  to  them?  What  is  the  character, of  the  climate  where- the  employees  work  and  what  is  the  age  of  superannuation fixed  in  comparable  industries  in  the  same  region?  What  is  the general  practice  prevailing  in  the  industry  in  the  past  in  the- matter  of  retiring  its  employees?  These  and  other  relevant facts  have  to  be  weighed  by  the  Tribunal  in  every  case  when  if is  called  upon  to  fix  the  age  of  superannuation  in  an  industrial dispute."
 
In  the  case  before  it, the  Supreme  Court  approved  of  the  retiring  age  of 55- in  respect  of  those  employees  who  had  entered  service  after  the  certifica- tion  of  the  Standing  Order.  With  regard  to  the  47 workmen  who had  con- tested  the  order  of  retirement,  they  could  not  be  reinstated  because  none of  them  was  then  below  the  age  of  60.  The  ratio  of  this  ruling  was  that  in respect  of  47 workmen  no  age  of  superannuation  had  been  previously  fixed and  so the  workmen  were  under  the  impression  that  they  would  be  allow- ed  to  continue  in  service  till  the  age  of  60.  The  Supreme  Court  did  not think  that  the  retirement  at  the  age  of  55  in  that  industry  was  at  all  un-

390  T HE  GAZETTE  OF  IITOIA  EXTRAORDINARY  Li'AHT 11—
fair  or  unjust.  This  ruling,  therefore,  does  not  support  the  case  of  the •employees.  My  attention  was also  drawn  to the  decision  in  the  Bank dis- pute  set  out  in  the  award  made  by  K. T.  Desai,  Chief  Justice,  Gujarat  in June  1962.  The concluding  portion  of the  chapter,  dealing  with  the  retire- ment  age, may  be  quoted:
"15.13.  Taking  every  relevant  factor  into  consideration,  I  am  in- clined  to  take  the  view  that  the  provisions  contained  in  the Sastry  Award  are  reasonable  and  that  at  present  no  change  is called  for.  I  accordingly  direct  that  after  a  workmen  has reached  the  age of  55 years,  he may be  retired  after  giving him two  months'  notice  in  writing,  in  case  his  efficiency  is  found  by the  employer  to  have  been  impaired.  Subject  to  this  rule  and also  subject  to any rule  under  an  existing  pension  fund,  a  work- man  should  not  be  compelled  to  retire  before  he  is  58  years old."
258.  This  is  analogous  to  the  regulation  46 framed  by  Air-India.  Shri Yimadalal  pointed  out  that  the  demand  with  regard  to  the  age of  retire- ment  was  before  Shri  Vyas  and  when  several  items  of  the  dispute  were .settled  by  means  of  an  agreement,  the  demand  with  regard  to  the  age of retirement  (Item  No. 37)  was  dropped  by  the  employees.  He,  therefore, argued  that  the  employees  could  not  re-agitate  this  question  especially because  since  that  agreement  was  reached,  a  new  regulation  had  raised the  retiring  age  from  55 to  58; and  because  the  right  of  retiring  an  em- ployee  after  55 is exercised  only  in  very  rare  cases  and  only  when  the  effi- ciency  of  the workmen  is found  to have  been  impaired,  the workmen  have no  real  grievance.
 
259.  On  behalf  of  the  employees,  reliance  has  been  placed  on  a  state- ment  filed  before  the  Tribunal  according  to  which  the  retirement  age in six  companies  has  been  fixed  at  60.  In  one  of  them,  the  retirement  age >of  the  clerical  staff  is  60 years  and  for  other  workmen,  58 years.  On  the other  hand,  the  Management  has  filed  a  statement  containing  a  list  of 28 'companies  in the public  and private  sectors.  Of these,  10 are in the  public :sector  and in most  of them  the age of retirement  has been  fixed  at 58.  Out •of  these,  in  the  Indian  Telephone  Industries  Ltd.,  Bangalore,  the  age  of retirement  is 55 years  but service  may be extended  upto  60 if  the employee is  found  medically  fit.  But,  this  extension  is  granted  only  at  the  discre- tion  of  the  Management.  In  the  Fertilizer  Corporation  of  India  Ltd., the retirement  age is  58 but  extensions  of  an  aggregate  period  of 2 years may "be  granted  at  the  discretion  of  the  Managing  Director.  In  the  Overseas Communication  Service,  the  retirement  age  for  Class  IV  service  em- ployees  is  60  years  but  for  tho  remaining  staff,  it  is  58  years.  In  the National  Instruments  Ltd.,  for  non-industrial  staff,  retirement  age  is  58 years  but  this  is  subject  to  retirement  on  one  month's  notice  after  55 years  if  the  employees  is  found  unfit.  For  industrial  workers,  the  re- tirement  age  is  60 years,  but  in  their  case  too,  a  month's  notice  may  be given  for  retirement  after  55 years  if  the  employee  is  found  unfit.  In two  companies  only,  the retirement  age is 60, viz.,  Life  Insurance  Corpora- tion  of  India  and  Indian  Oil  Corporation.  Of  the  10  companies  in  the private  sector,  in  six  instances  the  retirement  age  is  58  years  or  under. In  four  cases,  the retirement  age  is  60.  Shri  Vimadalal  contended  that  In •the  public  sector,  the retirement  age is  generally  fixed  at  58.  Government servants  of  the  Central  Government  as  also  of  all  the  State  Governments now  retire  at the age of  58 and, therefore,  it  was contended  that  the retire-

SBC. 8(U)]  TUB  GAZETTE  OF  INDIA  EXTRAORDINARY  391
raent  age  for  the  employees  of  Air-India  should  not  be  higher  than  58, and the  present  retiring  age  keeps  the  employees  on  a  par  with  other  Govern- ment  servants.  His  strongest  argument,  however,  was  the  desirability  of a  very  high  degree  of  efficiency  required  from  the  employees  of  Air-India because  of  the  peculiar  nature  of  the  work  entrusted  to  them.  This  argu- ment  naturally  does  not  apply  to  certain  class  of  employees,  e.g.  chowki- •dars,  sweepers,  clerks,  who  have  no  direct  connection  with  the  arrange- ments  in  respect  of  flights  and  who  do  not  handle  aircraft  or  machines connected  with  the  aircraft.  I  may  mention  here  that  the  demand  was considered  by  Shri  Vyas  although  in  the  agreement  arrived  at  between "the  parties  the  demand  had  been  dropped.  Shri  Vimadalal  discussed  the matter  at  some  length  and  then  submitted  that  it  merited  rejection.
260.  In  my  view,  no  case  has  been  made  out  for  raising  the  age  of  re- tirement  and  in  cases where  the  efficiency  of  the  employee  is  not  impaired, there  is  suitable  provision  under  regulation  47  for  extending  his  service upto  the  age  of  60.  As  observed  above;  there  have  been  no  complaints  ot any  employee  being  made  to  retire  under  the  provision  of  clause  (ii)  of regulation  46.  I  am  satisfied  that  this  provision  is only  used  in  the  interest of  efficiency  which  must  merit  the highest  consideration  in tbje air  transport industry.  The  retirement  age  obtaining  in  Air-India  is  in  no  way  less favourable  to  the  employee  than  in  any  of  the  other  industries.  This demand,  therefore,  cannot  be  granted  and  I  reject  it.
5.  Item  No.  40—Gratuity
261.  A  brief  history  of  the  dispute  relating  to  this  item  is  set  out  in paragraphs  107  1o  110  of  the  statement  filed  by  Party  No.  3  and  para  116 •of  the  statement  of  Air-India.
 
262.  Before  the  nationalisation  of  the  air  transport  industry,  gratuity -was  being  paid  to  the  employees  of  Air-India  Ltd.,  and  also  to  be  em- ployees  of  the  Air  Services  of  India  Ltd.  Upon  nationalisation,  the  Air- India  Ltd.  The  Corporation,  however,  continued  the  Gratuity  Scheme panies  to  which  it  succeeded  viz.,  Air-India  International  Ltd." and  Air- India  Ltd.  The  Corporation,  however,  continued  the  Gratuity  Scheme because  the  conditions  of  service  of  the  employees  who  had  been  trans- ferred  to  Air-India  were  protected  under  Section  20  of  the  Air  Corpora- tions  Act.  This  state  of  affairs  continued  upto  1959.  Thereafter,  the  Cor- poration  framed  a  new  regulation  under  Section  45  of  the  Air  Corpora- tions  Act  and  the  payment  of  gratuity  was  discontinued.  The  gratuity matter  was  one  of  the  items  which  was  referred  to  arbitration  under  the agreement  of  May  9, 1960.  Shri  Vyas  dealt  with  the  matter  in  his  volumi- nous  award,  and  after  framing  a tentative  scheme,  rejected  the  demand  on the  ground  that  under  the  agreement  of  May  9,  1960,  the  Corporation would  not  be  able  to  shoulder  the  financial  burden  of  the  gratuity.  As already  observed  above,  Shri  Vyas'  award  was  challenged  by  the  workmen in  the  Bombay  High  Court  and  the  award  was  set  aside.  The  High  Court observed  that  the  reasons  which  had  been  given  by  Shri  Vyas  for  reject- ing  the  claim  for  gratuity  were  dubious  and  extraneous.  The  matter  was, liowever,  left  undecided  and  the  employees  sought  the  procedure  of  con- ciliation  on  this  point.  The  Conciliation  Officer,  however,  refused  to  con- sider  the  matter  of  gratuity  on  the  ground  that  it  had  been  covered  by  the consent  award  of  May  9,  1960.  Against  this  decision  of  the  conciliation officer,  the  workmen  hied  a  Petition  for  Writ  in  the  Bombay  High  Court. While  the  matter  was  pending  in  the  High  Court,  the  Corporation  offered to  introduce  a  gratuity  scheme  and  suggested  that  the  Writ  Petition  may

aga  THte GAZETTE OF INDIA  EXTRAORDINABY  IPAm II—
be  withdrawn.  On  October  18, 1962, the  Corporation  wrote  to  Party  No. 2 confirming  that  the  Management  was  agreeable  to  the  introduction  of  a gratuity  scheme.  On  receiving  this  assurance,  Party  No.  2 withdrew  the petition  from  the  Bombay  High  Court.  The  scheme  prepared  by  the  Cor- poration,  however,  was  not  acceptable  to  Party  No. 2 and  upto  the  present day,  there  is  no  gratuity  scheme  in  Air-India.  The  demand  for  gratuity has  been  made  by  all the  parties  and has  not  been  settled  by  the  two  agree- ments  reached  between  the  pilots  and  the  Corporation  and  the  All-India Aircraft  Engineers'  Association  and  the  Corporation,  respectively.  The matter  has,  therefore,  remained  unsettled  with'  respect  to  all  parties  and I  now  proceed  to  consider  it.
263.  The  various  unions  have  set  out  their  demands  in  their  written statements,  and  generally  speaking  (with  a  few  variations  to  which  I shall  presently  refer),  their  claim  is  that  gratuity  should  be  paid  at  the rate  of  one  month's  salary  per  year  of  service,  and  salary  should  include all  allowances  in  addition  to  the  dearncss  allowance.  The  individual claims  of  the  various  parties  are  as  follows.
264.  Party  No.  2  claims  that  gratuity  should  be  paid  at  the  rate  of  one month's  pay  as last  drawn,  for  every  year  of  service  subject  to  a  maximum of  30 month's  pay.  The  word  'pay'  should  include  substantive  allowances, The  minimum  qualifying  length  of  service  for  the  payment  of  gratuity should  be  5 years  of  continuous  service,  except  in  the  case  of  air  hostesses for  whom  the  minimum  qualifying  service  should  be  3 years;  and  service should  include  previous  service  in  the  company  to  which  the  Corporation succeeded.  Gratuity  should  also  be  payable  to  those  workmen  who  have retired  on  or  after  the  coming  into  force  of  the  Corporation's  regulation published  in  1959,  and  should  further  be  paid  to  such  employees  who resigned  on  grounds  of  health  after  5 years'  minimum  service  or  who  died after  December  5,  1959.
265.  The  claim  of  Party  No.  3 is  that  an  employee  who  has  completed 5  years  of  minimum  service  should  be  paid  gratuity  at  the  rate  of  one month's  pay  (including  dearness  allowance)  for  each  year  of  service  on his  ceasing  to  be  in  the  service  of  the  Corporation.'  For  the  purpose  of  cal- culating  the  amount  of  gratuity  the  jperiod  of  service  should  be  taken  to begin  on  the  date  when  he  first  joined  the  service.  If,  however,  the  ser- vices  of  an  employee  are  terminated  before  he  completes  5  years  of  ser- vice, he  should  be  paid  a minimum  of  4 months'  salary  including  dearness allowance  and  in  case  of  death,  a  certain  minimum  gratuity  should  be paid  even  if  the  service  was  less  than  5  years.  The  gratuity  scheme should  cover  all  employees  who  cease  to  be  in  the  service  of  Air-India after  the  introduction  of  the  Service  Regulations  in  December  1959.
266.  Party  No.  4 claims  that  gratuity  should  be  paid  at  the  rate  of  one month's  pay  for  every  year  of  service  and  pay  should  include  basic  pay and  all  allowances  but  not  dearness  allowance.  Gratuity  should  also  be paid  in  case  of  death  or  mental  or  physical  disability  and  also  in  case  of dismissal  for  misconduct.
267.  Party  No.  5 claims  gratuity  at  the  rate  of  one  month's  gross  salary- l e a n i ng  basic  salary  plus  all  allowances)  at  the  rates  last  drawn  for every  year  of  the  employee's  service.  The  gratuity  should  be  payable  up- on  termination  of  service  whether  by  resignation,  superannuation  or  any- other  cause.

BKC.  S (11) ]  THE  GAZETTE  OF  INDIA  EXTRAORDINARY  393
268.  Party  No.  6 claims  gratuity  at  the  rate  of  one  month's  gross  salary last  drawn  for  each  year  of  service.  Gratuity  should  become  payable  on termination  of  employment  for  any  reason  whatsoever.
269.  Party  No.  7  claims  gratuity  at  the  rate  of  one  month's  pay  for every  year  of  service  in  case  of  death,  disability,  retirement,  resignation  or termination  of  service  as  the  case  may  happen  to  be.  Pay  should  include basic  pay  and  all  allowances  except  clearness  allowance  and  foreign  allow- ance.  Gratuity  should  also  be  paid  in  the  case  of  dismissal  for  misconduct.
270.  It  may  be  mentioned  that  in  the  original  charter  presented  before the  reference  was  made,  Party  No.  2  did  not  claim  any  gratuity  but  the demand  was  made  by  it  in  the  statement  flled  after  the  reference.
271.  Provident  fund  and  gratuity  have  now  come  to  be  recognised  as retirement  benefits  to  which  all  workmen  are  entitled  and  which  they  may legitimately  claim.  The  Corporation  is  agreeable  to  the  drawing  up  of  a suitable  scheme  which  would  not  unduly  strain  its  finances.  The  tentative scheme  drawn  up  by  the  Corporation  was  not  acceptable  to  Party  No.  2 and  from  the  above  narrative  it  is  clear  that  the  demands  of  all  parties  are considerably  more  than  what  was  offered  by  the  Corporation.  Instances of  other  industries  and  business  concerns  were  cited  during  the  course  of the  arguments,  and  several  statements  giving  the  lists  of  a  number  of "industries  and  the  gratuity  schemes  drawn  up  by  them  either  voluntarily or  as  a  result  of  agreements  reached  between  the  Managements  and  their workmen,  have  been  placed  on  record.  A  study  of  these  statements reveals  that  in  many  of  the  firms,  a  gratuity  scheme  prevails  but  there  is no  evidence  to  show  whether  there  is  any  liberal  provident  fund  scheme also.  Messrs.  Mackinnon  Mackenzie  & Co.  Private  Ltd.,  have,  perhaps, the  most  liberal  gratuity  and  provident  fund  scheme.  They  pay  a  gratuity at  the  rate  of  one  month's  salary  for  each  year  of  continuous  service  sub- ject  to  a  maximum  of  30  months'  salary  and  also  make  a  contribution  of 8,1/3  per  cent,  of  basic  pay  to  the  employees'  provident  fund.  The Scinr1.ia  S'-eam  Navigation  Co,  Ltd.,  pays  a  gratuity  of  one  month's  salary for  each  completed  year  of  service  subject  to  a  maximum  of  15  months' salary.  The  company  also  makes  a  contribution  of  8.1/3  per  cent,  of  the employees'  pay  and  dearness  allowance  to  the  provident  fund.  Thrre  is one  other  company  viz..  The  Glaxo  Laboratories  Private  Ltd.,  where  the workmen  cnjny  a  gratuity  of  one  month's  salary  for  each  completed  year of  service  upto  15 years  of  service  and  after  15  years,  J  month's  pay  for each  year  of  service  subject  to  a  maximum  of  20  months.  The  Manage- ment  also  makes  a  contribution  of  10  per  cent,  of  the  employees'  basic pay  towards  provident  fund  for  higher  staff  and  74 per  cent,  of  basic  pay in  the  case  of  subordinate  staff.  In  the  other  concerns  of  which  evidence is  placed  before  me,  the  gratuity  schemes  are  not  so  favourable  to  the workmen.
272.  Generally  speaking,  in  most  of  these  companies,  gratuity  is  paid at  the  rate  of  one  month's  salary  for  each  completed  year  of  service  upto a  maximum  of  15 years.  In  some  of  the  companies,  the  rate  is  4 month's salary  for  each  year  of  completed  service.  The  maximum  varies  from  15 to  20 or  22J  months,  in  2 companies  the  maximum  is  30 month's  salary  and in  2  companies,  no  maximum  has  been  provided.  Some  companies  com- pute  gratuity  on  a  slab  system  e.g. for  the  first  10  or  15  years  at  the  rate of  a full  month's  salary  for  each  completed  year  of  service  and  subsequent- ly,  I  month's  salary  or  1/3  of  the  month's  salary  for  each  completed  year of  service.  The  gratuity  scheme  of  the  BOAC  provides  for  a  maximum of  15  month's  basic  wage.

394  ™E  GAZETTE  OF INDIA  EXTRAORDINARY  [PART II—
273.  The  existing  provident  fund  scheme  has  been  liberalised  by  this award,  and  since  gratuity  and  provident  fund  are  both  retirement  bent- fits,  the  quantum  of  gratuity  cannot  be  considered  in  isolation.  There  is also  the  all-important  question  of  the  capacity  of  the  Corporation  to  meet the  heavy  liability  resulting  from  the  acceptance  of  the  demand  in  its entirety.  The  statement  (Exhibit  U/II/6)  shows  that  the  gratuity  burden on  the  Corporation  per  annum  calculated  on  the  basis  that  the  maximum gratuity  payable  will  be  30  months'  basic  salary,  is  Rs.  9.72  lakhs  as  far as  Pasties  2  and  3  are  concerned.  It  is  not  easy  to  lay  down  an  exact principle  for  fixing  gratuity,  and  to  a  large  extent,  a  rule  of  thumb  must inevitably  be  applied.  However,  taking  into  consideration  the  conditions prevailing  in  most  of  the  industries  and  in  the  BOAC,  and  also  keeping in  view  the  financial  capacity  of  the  Corporation,  I  feel  that  the  follow- ing  scheme  is  both  fair  and  just:.
(i)  continuous  service  in  the  last  preceding  integrated  airline  will be  treated  as  service  qualifying  for  gratuity  if  the  employee  >s still  in  the  service  of  the  Corporation;
(ii)  the  gratuity  scheme  will  be  introduced  with  retrospective  effect from  April  1,  1962,  i.e.  employees  who  have  retired  or  died  en or  after  that  date  will  also  be  eligible  for  benefits  under  this scheme;
(iii)  the  employee  will  be  eligible  for  gratuity  (a)  on  reaching  the age  of  superannuation  or  on  voluntary  retirement  on  com- pleting  15  years  of  continuous  service,  (b)  in  case  of  termi- nation  of  service  on  medical  grounds  or  abolition  of  post,  pro- vided  a  minimum  of  5  years  of  continuous  service  has  been rendered,  and  (c)  in  case  of  death  whilst  in  service  and  in  case of  termination  of  service  on  account  of  permanent  incapacity due  to  bodily  or  mental  infirmity;
(iv)  the  amount  oc  gratuity  will  be  equal  to  one  month's  basic  pay for  every  completed  year  of  service  subject  to  a  maximum  o* 15 months'  basic  pay  or  Rs.  30,000  whichever  is  less.  The  basis for  this  purpose  being  the  average  of  the  basic  pay  drawn during  the  12  months  preceding  the  retirement,  death  or  ter- mination  of  the  service:
(v)  the  gratuity  in  case  of  death  will  be  subject  to  the  following minima:
If  death  occurs—
(1)  during  the  first  year—2  months'  pay; (2)  after  1  year  but  before  5  years—6  months'  pay; (3)  after  completion  of  5  years  of  service—12  months'  pay.
(vi)  in  the  case  of  an  employee  whose  services  are  terminated  for misconduct,  a  deduction  may  be  made  from  the  gratuitv  dua to  him  up  to  the  extent  to  which  loss  was  caused  to  the  Corpo- ration  by  the  misconduct  for  which  he  was  dismissed.
 
274.  It  will  be  seen  that  the  above  scheme  is  a  slight  modification  of the  provisional  scheme  prepared  by  the  Corporation  during  its  negotia- tions  with  Party  No.  2.  This  scheme  is  more  liberal  than  the  scheme which  obtains  in  the  BOAC  which  is  the  only  comparable  concern.  There is,  at  present,  no  gratuity  scheme  in  force  in  the  Indian  Airlines  Corpora- tion,  and  Air-India  in  its  statement  has  submitted  that  there  should  be a  single  scheme  of  gratuity  applicable  to  the  aviation  industry  as  a  whole

SKC.  8(il)]  THE  GAZETTE  OF  INDIA  EXTRAORDINARY  395
It  was  also  submitted  by  the  Corporation  that  there  should  be  no  distinc- tion  between  the  ground  staff  and  the  flight  crew.  I  see  no  reason  for  dis- criminating  between  them  and  Ihe  above  scheme  will  apply  to  all  work- men  of  Air-India  whose  case  is  before  me  irrespective  of  whether  they are  members  of  the  ground  staff  or  of  the  flight  crew.  It  will  be  for  the Corporation  to  extend  the  scheme  to  those  employees  who  are  not  "work- men"  within  the  meaning  of  the  Industrial  Disputes  Act,  and  whose  case is,  therefore,  not  before  me.
6.  Item  No.  46—Retirement  benefits /alternative  employment,  for  ihedicaU
ly  unfit  -flight  crew,
275.  The  workmen  who  come  within  the  ambit  of  this  item  are:
(i)  pilots  (Party  No.  4); (ii)  cabin  attendants  (Parties  2  and  3); (hi)  flight  navigators  (Party  No.  6);  and (iv)  flight  engineers  (Party  No.  7).
The  aircraft  maintenance  engineers  (Party  No.  5)  have  also  put  in  their claim  but  it  is  quite  clear  that  they  arc  not  covered  by  this  item  because they  are  not  members  of  the  flight  crew.  This  item  relates  specifically to  retirement  benefits/alternative  employment  for  medically  unfit  mem- bers  of  the  flight  crew  and  to  none  others.  The  claim  of  Party  No.  5, therefore,  merits  dismissal  without  further  consideration.
276.  Parties  4  and  7  have  arrived  at  an  agreement  with  the  Corpora- tion  with  regard  to  this  demand.  I  need  not,  therefore,  discuss  the  merits of  their  demand  as  made  in  their  respective  written  statements.  I  have stated  in  the  earlier  part  of  this  award  that  the  agreement  of  the  pilots arrived  at  on  May  24,  1965,  and  of  the  flight  engineers  on  May  29,  1965, are  just  and  reasonable  and  I  propose  to  make  my  award  on  the  basis  of these  agreements.
277.  With  regard  to  the  flight  navigators,  they  have  made  no  specific demands  and  have  merely  submitted  that  owing* to  the  great  hazards  of tiying  in  jets,  provision  should  be  made  for  those  navigators  who  become medically  unfit.  The  claim  nn  behalf  of  cabin  attendants  was  that  they should  be  provided  with  suitable  alternative  employment  and  if  the  Cor- poration  is not  able  to  offer  a  suitable  post  or  if  a cabin  attendant  is  unable to  accept  the  post  or  the  terms  offered,  h,e  or  she  may  be  retired  and  by way  of  compensation,  paid  65  per  cent  of  the  emoluments  which  he  or she  would  have  received  until  attaining  the  age  of  normal  retirement.  It is  further  claimed  that  where  alternative  employment  on  the  ground  is offered,  the  rates  of  emoluments  should  be  as  follows:
Length  of  service
Percentage  of  pay
and  substantive
allowances  last
drawn,  as  emolu-
ments
5  years  or  less  .  •  •  •  •  •  •.
Over  5  years  but  less  than  8  years  .
10  years  or  more  (in  case  of  fiir  hostess)
Over  8  years  but  leas  than  15  years  .
15  years  or  more  .  . . , . , .. 65%
80%
100%
90%
 
100%

3 96  THE  GAZETTE  OF INDIA  EXTRAORDINARY  [PART II—
278.  The  navigators  have  placed  on  record,  a  document  (Exhibit U/VI/17A)  which  is  a  long  note  written  by  Richard  H.  Beck,  Chairman of TWA,  24  Air  Safety  Committee.  In  this  article,  the  author  has  analysed the  various  types  of  jet  hazards  such  as  fatigue,  nervous  and  emotional strain.  It  is  not  necessary  to  discuss  this  document  in  detail,  and  it  seems to  me  that  if  the  same  benefits  are  given  to  the  flight  navigators  as  have been  obtained  by  the  pilots  and  the  flight  engineers  under  their  respec- tive  agreements  with  the  Corporation,  the  demands  of  the  navigators  will be  sufficiently  met.  A  similar  provision  should,  in  my  view,  be  made  for the  benefit  of  the  cabin  attendants  who  become  medically  unfit  conse- quent  upon  their  flying  duties  in  jet  aircraft.  The  Corporation  has  op- posed  the  claim  of  the  cabin  attendants  on  the  ground  that  they  are  not licensed  members  of  the  operating  crew.  The  Corporation  contends  that if  cabin  attendants  become  medically  unfit  to  perform  their  flight  duties or  become  redundant,  their  claims  for  any  alternative  employment  on  the ground  either  of  medical  unfltness  or  retrenchment,  are  to  be  dealt  with In  accordance  with  the  general  policy  of  the  Corporation  in  such  matters, because  the  cabin  attendants'  vocation  does  not  prevent  them  from  finding suitable  alternative  employment  on  ground  if  they  are  otherwise  qualified. It  seems  to  me,  however,  that  merely  because  cabin  attendants  are  not licensed  members  of  the  operating  crew,  they  should  not  be  deprived  of the  benefits  which  other  members  of  the  flight  crew  enjoy.  I  propose, therefore,  to  make  an  award  in  their  favour  on  terms  similar  to  those which  will  cover  the  case  of  pilots,  night  engineers  and  navigators.  I consider  it  unnecessary  to  discuss  this  matter  further  because  the  pilots and  flight  engineers,  after  prolonged  negotiations  with  the  Corporation, have  arrived  at  an  agreement  which  has  been  accepted  by  all  parties.
279.  The  relevant  extracts  from  the  pilots'  agreement  of  May  24, 1965, dealing  with  this  item  are  as  follows:
" (1)  All  Pilots  who  are  found  medically  unfit  for  flying  duties  may be  provided  suitable  ground  jobs  in  the  Corporation  until  they attain  the  superannuation  age,  their  consolidated  salary  being fixed  at  not  less  than  75  per  cent  of  their  last  drawn  basic  pay. Such  Pilots  shall  have  opportunities  for  progress  and/or  for advancement  in  their  ground  jobs  equal  to  those  of  other  em- ployees  of  the  Corporation.
(2)  Alternatively,  such  Pilots  can  opt,  subject  to  the  conditions mentioned  below,  for  an  annuity  payable  at  60 per  cent,  of  their last  drawn  basic  pay  until  they  attain  the  age  of  55:
(a)  No  annuity  will  be  admissible  if  the  total  service  of  the  Pilot in  the  Corporation  immediately  prior  to  being  declared medically  unfit  does  not  exceed  five  years.
(b)  The  annuity  shall  be  payable  until  he  attains  the  age  of  55 or
the  date  of  death,  whichever  is  earlier.
(c)  The  annuity  will  be  paid  monthly  on  normal  salary  disburse-
ment  day.
(d)  The  oayment  of  annuity  or  the  appointment  to  a  ground  job will  commence  from  the  date  of  disablement  due to  persona] injury,  illness,  disease  or  disability  of  the  Pilot  which  pre- vents  him  from  attending  to  his  occupation  as  a  Pilot  as declared  by  the  Medical  Board  and  as  such  taken  oflf  his flying  duties  by  the  Medical  Board  but  only  after  he  has exhausted  all  his  casual  leave,  sick  leave,  privilege  leave and  special  sick  leave  standing  to  his  credit.

Sic.  3(ii)]  THE  GAZETTE  OF  INDIA  EXTRAORDINARY  397
(3)  Notwithstanding  the  provisions  of  Clauses  (1)  and  (2)  above, a  Pilot  will  not  be  entitled  to  the  benefits  contained  therein  if he  is  declared  medically  unfit  for  flying  duties  as  a  direct  or indirect  result  of:
(a)  Intentional  self-injury, (b)  Attempted  suicide, (c)  Provoked  assault, (d)  Venereal  disease,  or (e)  Chronic  alcoholism  or  habitual  taking  of  narcotic  drugs.
(4)  A  Pilot,  after  being  granted  benefits  under  Clause  (1)  or  (2) of  this  Agreement,  in  the  event  of  regaining  his  medical  fitness as  certified  by  the  Medical  Board,  shall  re-offer  his  service  as  a Pilot  to  the  Corporation  who  will  then  reinstate  him  in  the grade  and  seniority  held  by  him  prior  to  his  disablement.  The payment  of  annuity  to  him  will  cease  from  the  date  he  is  so  re- employed  by  the  Corporation.  Similarly,  a medically  unfit  Pilot who  becomes  medically  fit  again  will  not  be  entitled  to  the annuity  if  he  accepts  a  flying  job  outside  the  Corporation."
280.  I  make  an  award  in  terms  of  the  above  agreement  as  far  as  the pilots  are  concerned.
281.  The  relevant  extracts  from  the  agreement  entered  into  with  the flight  engineers  by  the  Corporation  on  May  29, 1965, are  as  follows:
" (1)  All  Flight  Engineers  who  are  found  medically  unfit  for  flying duties  may  be  provided  with  suitable  ground  jobs  in  the  Cor- poration  until  they  attain  the  superannuation  age,  their  consoli- dated  salary  being  fixed  at  not  less  than  75  per  cent  of  their last  drawn  basic  Pay.  Such  Flight  Engineers  shall  have  oppor- tunities  for  progress  and/or  for  advancement  In  their  ground jobs  equal  to  those  of  other  employees  of  the  Corporation.
(2)  Alternatively,  such  Flight  Engineers  can  opt,  subject  to  the conditions  mentioned  below,  for  an  annuity  payable  at  60  per cent  of  their  last  drawn  Basic  Pay  until  they  attain  the  age  of 55:
(a)  No  annuity  will  be  admissible  If  the  total  service  of  the Flight  Engineer  in  the  Corporation  immediately  prior  to being  declared  medically  unfit  does  not  exceed  five  years.
(b)  The  annuity  shall  be  payable  until  he  attains  the  age  of  55 or
the  date  of  death,  whichever  is  earlier.
(c)  The  annuity  will  be  paid  monthly  on  normal  salary  disburse-
ment  day.
(d)  The  payment  of  annuity  or  the  appointment  to  a  ground  job will  commence  from  the  date  of  disablement  due  to  perso- nal  injury,  illness,  disease  or  disability  of  the  Flight  Engi- neer  which  prevents  him  from  attending  to  his  occupation as  a  Flight  Engineer  as  declared  by  the  Medical  Board  and as  such  taken  off  his  flying  duties  by  the  Medical  Board  but only  after  he  has  exhausted  all  his  casual  leave,  sick  leave, privilege  leave  and  special  sick  leave  standing  to  his  credit.
 
(3)  Notwithstanding  the  provisions  of  Clauses  (1)  and  (2)  above, a  Flight  Engineer  will  not  be  entitled  to  the  benefits  contained

398  THE  GAZETTE  OF INDIA  EXTRAORDINARY  [PART  II—
therein  if  he  is  declared  medically  unfit  for  flying  duties  as  a direct  or  indirect  result  of:
(a)  Intentional  self-injury,
(b)  Attempted  suicide, ^c)  Provoked  assault, (d)  Venereal  disease,  or
^e)  Chronic  alcoholism  or  habitual  taking  of  narcotic  drugs.
(4)  A  Flight  Engineer,  afier  being  granted,  benefits  under  Clause (1)  oi'  (2)  of  this  Agreement,  in  the  event  of  regaining  his medical  fitness  as  certified  by  the  Medical  Board,  shall  re-offer nis  services  as  a  Flight  Engineer  to  the  Corporation  who  wilt Then  reinstate  him  in  the  grade  and  seniority  held  by  him  prior to  his  disablement.  The  payment  of  annuity  to  him  will  cease irom  the  date  he  is  so  re-employed  by  the  Corporation.  Simi- larly,  a  medically  unfit  Flight  Engineer  who  becomes  medically fit  again  will  not  be  entitled  to  the  annuity  if  he  accepts  a  flying job  outside  the  Corporation."
282.  It  will  be  seen  that  this  agreement  is  excatly  the  same  as  the agreement  entered  into  with  the  pilots.  I  make  an  award  in  favour  of  the Flight  Engineers  in  terms  of  the  above  agreement.
283.  I  make  a  similar  award  in  favour  of  the  cabin  attendants  and flight  navigators,  and  the  terms  which  govern  the  case  of  pilots  and flight  engineers  will  apply  to  them  inutatis  mutandis.
GROUP  IV—Transfer,  Postings,  etc.
284.  This  group  consists  of  the  following  six  Items:
1.  Item  No.  17—Travelling  allowance.
2.  Item  No.  29~-Acc&mmodation  layover  allowance  at  layover
stations.
3.  Item  No.  32—Foreign  allowance.
4.  Item  No.  34—Outstation  alloivance.
5.  Item  No.  35—Resettlement  allowance.
6.  Item  No.  47—Travel  on  duty.
1-  Item  No.  17—Travelling allowance
285.  A  demand  with  regard  to  travelling  allowance  has  been  made  by Party  No.  2  only.  In  their  original  charter  of  demands,  the  workmen falling  in  this  clause  had  demanded  an  allowance  of  fifteen  shillings  for nil  cabin  attendants  in  addition  to  the  normal  outstation  allowance  for every  day  spent  at  an  outstation.  In  the  written  statement,  however,  a new  claim  has  been  made,  and  the  previous  claim  of  fifteen  shillings  per clay has  been  made  under  Item  No.  51—.Special travelling  allowance.  The new  claim  in  the  written  statement  is  as  follows:
" (a)  Employees  deputed  for  emergency  duties  within  India  or  out- side  India  which  could  not  bo  classified  as  a  temporary  transfer should  be  deemed  to  be  on  duty  as  if  the  employee  concerned had  been  on  tour  or  on  temporary  transfer  for  the  purposes  of eligibility  to  benefits  of  travelling  allowance  under  the  existing rules.
(b)  The  existing  rules  governing  the  terms  and  conditions  for  the grant  of  travelling  allowance  should  be  subject  to  periodical review  through  joint  consultations.

SEC.  3(ii)]  THE  GAZETTE  OF  INDIA  EXTRAORDINARY  399
(c)  The  existing  rules  governing  personal  baggage  (by  Air—while on  tour)  should  also  be  applicable  to  flight  crow  (Cabin  Atten- dants)  on  flight  duties."
38fi.  The  reply  of  the  Corporation  is  that,  with  regard  to  items  (a)  and (c)  above,  the  present  rules  are  in  conformity  with  the  demand  and  that an  employee  deputed  for  emergency  duties  1.3 treated  as if  he  were  on  tour. AJso.  tin'  rules  with  regard  to  personal  baggage  oJ'  flight  crew  on  Hying duties  ,'ipply  to  them  and  are  quite  liberal.  With  regard  to  (b),  the  Cor- porat.'jn  opposes  it  on  the  ground  that  triers  is  no  jastiiication  for  a  consul- taTion  each  lime  the  rules  are  revistd.  Whenever  the  circumstances just'fy,  a  review  of  lhe=
2vj'i. I  see  no  fore-  whatsoever  in  this  demand.  It  was  not  even  put foiwari  in  the  original  charter  presented  by  Party  No. 2, and  no  claim  on this  account  has  been  made  by  any  ol'  the  other  parties.  1,  therefore, reject  it.
2.  Hem  No.  29 —Accommodation  layover  alloicancc  at  layover  staiions
?S8.  Members  of  the  flight  crew  have  occasionally  to  spend  some  time at  a  Elation  away  from  their  place  of  permanent  or  temporary  posting  in tho  ctj.irse  of  their  Dying  duties.  In  order  to  compensate  them  for  the extrv  expense  incum-d,  the  Corporation  pays  what  is  called  a  layover allowance  and  also  provides  accommodation  at  a hotel.  The  present  rate  of layover  allowance  is  on  a  sliding  scale,  if  the  number  of  hours  so  spent is  above  a  minimum  of  4  hours,  the  maximum  being  £  2-10-0  for  every 24  hours.  The  demand  of  all  parties,  i.e.  pilots,  flight  engineers,  flight navigators  and  cabin  attendants,  is  that,  this  amount  should  be  increased to  £  4-10-0  except  in  the  case  of  U.S.A.  and  Russia  where  the  amount should  be  not  less  than  $ 18  and  15  roubles  respectively,  per  day.  The demand  is  based  on  1he  ground  that  since  the  rate  was  last  fixed,  prices at  stations  abroad  have  increased  and  the  amount  now  paid  does  not  suffi- ciently  compensate  them  for  the  expenses  which  they  have  to  incur.  In the  agreement  arrived  at  with  the  pilots,  the  amount  has  been  raised  to £  4 in  the  case  of  all  stations  excepting  New  York  and  Moscow.  At  New York,  the  rate  now  is  $ 14  and  at  Moscow,  the  rate  is  12  roubles.  This allowance  is  paid  for  a  period  of  over  16  hours  upto  24 hours.  No  allow- ance  is paid  for  a stay  of  less  than  4 hours,  and  for  periods  of  4 to  8 hours, 8  to  16 hours  and  16 to  24 hours,  the  rates  are  60 per  cent,  80 per  cent  and 100  per  cent  of  the  full  rate.  In  the  case  of  co-pilots,  the  amounts  are £  3-10-0  for  all  stations  excepting  New  York  and  Moscow,  for  which  the rates  are  $ 13  for  New  York  and  11  roubles  for  Moscow  with  a  propor- tionate  reduction  for  shorter  periods.  Hotel  accommodation  is  provided at  the  expense  of  the  Corporation  in  all  cases.
2F.3.  The  Corporation  opposed  the  demand  and  pleaded  that  the  present rate  was  quite  generous  and  there  was  no  justification  for  an  increase.  I should  have  been  inclined  to  take  the  view  that  a  layover  allowance  of £  2-10-0 for  a Deriod  of  24 hours  with  a  proportionate  reduction  for  shorter periods  would  have  been  enough  in  view  of  the  fact  that  accommodation and  breakfast  are  provided  bv  the  Corporation  in  all  cases.  Since,  how- ever,  the  rate  has  boon  substantially  increased  in  the  case  pilots.  I think  it  is  only  just  and  proper  that  there  should  be  a  proportionate increase  in  the  layover  allowance  of  other  members  of  the  crew.
 
290.  In  making  their  demand  the  workmen  have  sought  to  justify  it  on tho  ground  that  they  have  a  right  "to  share  in  the  progress  and  prosperity

400  THE  GAZETTE  OF  INDIA  EXTRAORDINARY  [PART  II—
of  the  undertaking."  This  reason  has  been  given  by  the  parties,  parti- cularly  Party  No.  2, to  support  almost  all  the  demands  made  in  this  refe- rence.  Not  to .give  a  corresponding  increase  to  the  flight  engineers,  flight navigators  and  cabin  attendants,  would  savour  of  unfair  discrimination and,  I,  therefore,  propose  to  make  a  slight  increase  in  their  case  also.  It is  agreed  that  since  ail  members  of  the  night  crew  stay  in  the  same  hotel, they  incur  the  same  expenses  and  arc  entitled  to  the  same  layover  allow- ance.  There  is  force  in  the  contention,  and  though  flight  navigators,  flight engineers  and  cabin  attendants  rank  below  the  first  officer,  they  can  legi- timately  claim  the  same  allowance  as  is  being  now  paid  to  first  officers under  the  terms  of  the  agreement  between  Air-India  and  Party  No. 4.  I accordingly  fix  the  layover  allowance  of  flight  navigators,  flight  engineers, cabin  attendants  and  air  hostesses  according  to  the  scale  now  applicable  to first  officers.
291.  Another  demand  made  by  the  workmen  is  that,  they  should  be provided  with  first  class  hotel  accommodation  and  the  members  of  the flight  crew  should  be  consulted  with  regard  to  the  nature  of  the  accommo- dation  provided.  The  plea  of  the  Corporation  is  that  according  to  the present  rules,  accommodation  of  first  class  a standard  is  provided  for  mem- bers  of  the  crew.  The  Corporation  further  undertakes  to  take  into  account the  view  of  the  parties  in  regard  to  accommodation  provided  at  the  various layover  stations  (mde  paragraph  220  of  the  replication  filed  by  the  Corpo- ration).  In  view  of  this  statement,  I  do  not  propose  to  make  any  award on  this  part  of  the  demand.  I  have  no  doubt  that  the  Corporation  will take  into  consideration  the  views  of  the  members  of  the  crew  and  treat them  with  a liberality  which  has,  in  the  past,  characterised  its  dealings with  the  workmen.
3.  Item  Wo. 32—Foreign  allowance
292.  Workmen  of  the  Corporation,  when  they  are  posted  to  a  place outside  India,  Pakistan  and  Ceylon,  on  permanent  transfer,  are  paid  a foreign  allowance  according  to  the  scale  laid  down  in  paragraph  2  ut the  Establishment  Orders.  There  is  a  basic  foreign  allowance  and  a surcharge  for  certain  stations  where  the  higher  cost  of  living  warrants higher  foreign  allowance.  Members  of  the  operating  crew,  including pilots,  first  officers,  flight  navigators  and  aircraft  maintenance  engineers of  Grade  II  and  above,  are  paid  a  basic  foreign  allowance  of  Rs.  800/-. All  other  categories  of  employees  are  paid  Rs.  600/-.  The  surcharges at  the  various  stations  are  set  out  in  sub-paragraph  (iii)  of  paragraph 2.  For  instance,  in  Australia,  there  is  a  surcharge  of  35%  of  the  basic foreign  allowance,  in  Czechoslovakia  60%,  in  France  80%  and  in  Ger- many  50%  etc.  The  surcharge  has  now  been  revised  and  increased. The  surcharge  in  Australia  is  now  55%  of  the  basic  allowance,  in Czechoslovakia  it  is  80%  (instead  of  60%),  in  France  it  is  90%,  (instead of  80  per  cent)  and  in  Italy  it  is  80  per  cent  (instead  of  40  per  cent). • They  have  been  corresponding  increases  for  other  foreign  stations  also. As  a  result  of  the  agreement  arrived  at  with  the  pilots,  the  commander's basic  foreign  allowance  was  increased  to  Rs.  1,000/-.  The  allowance of  the  captains  (first  officers)  remained  at  its  original  figure  of  Rs.  800/-. No  claim  was  made  by  Party  No.  5  representing  the  aircraft  mainten- ance  engineers  and  so,  in  the  agreement  arrived  at  with  them,  no  men- tion  was  made  on  this  item.
 
293.  Party  No.  3  also  made  no  claim  and  the  claim  by  Party  No.  2 was  that  the  basic  allowance  should  be  fixed  at  Rs.  800/-  per  month. The  demand  of  the  flight  navigators  is  that  their  foreign  allowance

SKC.  3(Ii)]  THE  GAZETTE  OF  INDIA  EXTRAORDINARY  401
should  be  increased  by  60%  for  all  existing  bases.  lhis  would  increase their  total  foreign  allowance  to  Rs.  1,280/-  p.m.  Party  No.  7,.  flight engineers,  claim  an  increase  of  5O'yh of  the  surcharge  on  allowance  at all  foreign  stations.  But  since  for  most  of  the  stations  the  surcharge is  already  in  excess  of  50'A ,  it  will  bo  seen  that  the  demand  of  the  flight engineers  has  already  been  conceded  by  the  Corporation.
294.  The  Corporation  opposes  any  further  increase  and  submits  that the  basic  rates  of  foreign  allowance  have  been  fixed  with  reference  to the  grades  of  employees  concerned,  while  the  surcharge  on  foreign allowance  is  determined  and  periodically  reviewed  after  taking  into account  the  changes  in  the  cost  of  living  in  various  countries.  Recently, the  surcharge  in  foreign  allowance  was  substantially  raised  with  retros- pective  effect  from  April  1,  1964.  The  Management  has  also  placed  on record  a  comparative  statement  (Exhibit  M—101)  showing  the  total foreign  allowance  paid  by  the  Corporation  at  some  of  the  foreign  sta- tions  and  the  foreign  allowance  paid  by  the  Central  Government  to  the members  of  the  diplomatic  staff.  A  few  items  from  this  document may  be  mentioned.
295.  Commanders  at  Paris  now  receive  a  total  foreign  allowance  of Rs.  1,900/-.  The  highest  allowance  paid  by  the  Central  Government to  the  Counsellor  at  Paris  is  Rs.  1,255/- for  married  officers  and  Rs. 1,050/- for  single  officers.  In  London,  the  commander  receives  Rs.  1,200/- whereas  the  Minister  (Economics)  of  the  Central  Government  receives Rs.  1,020/-  if  married  and  Rs.  875/-  if  single.  The  High  Commissioner and  the  Deputy  High  Commissioner  are  paid  considerably  higher  rates. But,  their  diplomatic  status,  which  is  not  at  all  comparable  to  the  status of  a  commander/pilot,  entitles  them  to  a  higher  allowance.  They  have to  maintain  a  higher  standard  of  living  and  a  more  elaborate  personal staff  as  they  have  to  entertain  foreign  potentates  and  diplomats.  There- fore,  the  case  of  the  High  Commissioner  and  the  Deputy  High  Commis- sioner  cannot  be  considered  as  a  basis  for  determining  the  various  allow- ances  of  the  workmen  of  the  Corporation.  In  Geneva,  a  commander  of the  Corporation  is  paid  a  total  foreign  allowance  of  Rs.  1,800/-  whereas our  Consul  General  is  paid  Rs.  1,650/-  if  he  is  married  and  Rs.  1,440/-  If he  is  single.  In  Rome  also,  the  commander  gets  Rs.  1,800/-  whereas  the Counsellor  of  the  Government  of  India  receives  Rs.  1,525/-  if  married and  Rs.  1.285/-  if  single.  In  Sydney,  a  commander  gets  Rs.  1,550/- whereas  the  First  Secretary  of  the  Government  of  India  gets  only Rs. 705/- if  married  and  Rs.  610/-  if  single.
296.  It  will,  therefore,  be  seen  that  the  foreign  allowance,  including the  surcharge  paid  to  the  commanders,  compares  very  favourably  with the  foreign  allowance  paid  to  important  officers  of  the  Government  of India  when  posted  abroad.  When  the  demands  were  being  negotiated, the  first  officers  did  not  appear  to  have  pressed  their  demand  arid  their basic  foreign  allowance  was  not  increased  from  the  original  figure  of Rs.  800/-.  Tn  the  circumstances,  it  appears  to  me  that  the  flight  navi- gators  and  the  flight  engineers,  who  rank  below  the  first  officer,  have really  no  ca<^  for  an  increase.  As  pointed  out  by  the  Corporation,  the surcharge  at  the  various  foreign  stations  is  reviewed  from  time  to  time and  if  the  rise  in  prices  justifies  an  increase,  the  surcharge  is  corres- pondingly  raised.
 
297.  The  case  of  the  cabin  attendance  and  other  officials  who  are posted  abroad,  is  in  no  wav  stronger  than  the  case  of  the  flight  engineers and  flight  navigators.  Their  basic  foreign  allowance  at  preslnt  is

02  THE  GAZETTE  OF INDIA  EXTRAOBDINARY  [PAHT II—
Rs  600/-  and  this,  together  with  the  surcharge,  in  my  view,  compensates them  adequately  for  the  extra  expense  which  they  have  to  incur  when they  are  posted  abroad  permanently.
293.  In  the  circumstances,  1 am  not  prepared  to  concede  the  demands of  Parties  2,  6  and  7,  and  reject  them.
4.  Item  No.  34—Outstation  allovoance
299. "When  a  workman  of  the  Corporation  posted  temporarily  at  an outstation  either  within  India,  Ceylon  or  Pakistan,  or  in  any  other  coun- try,  he  is  paid  an  outstation  allowance.  Temporary  posting  has  been defined  as  a  posting  of  rue  mere  than  one  year,  and  the  allowance  is paid  for  the  entire  period  ol  one  yesi1.  The  rated  for  the  period  in  Lhe beginning  are,  however,  higher.  These  rates  are  set  out  in  paragraphs 38'and  39  of  the  Establishment  Orders-  No  agreement  regarding  theie rates  has  ever  been  reached  with  any  of  thu  parties  except  with  Pariy No.  2  with  whom  an  agreement  was  reached  on  May  9,  I960,  and  certain rates  were  determined.  Subsequently,  the  Corporation  revised  these rates  on  two  occasions.  I  need  not  give  all  the  details  of  the  rates  preva- lent  at  present,  but,  it  will  be  sufficient  to  cite  a  few  instances  to  give an  overall  impression  of  this  particular  benefit  provided  to  those  work- men  who  are  posted  at  an  outstation.  To  a  workman  posted  at  Bom- bay,  Calcutta,  Delhi,  Madras,  'Karachi,  Lahore,  Peshawar,  Rawalpindi and  Colombo,  outstation  allowance  is  paid  at  the  rate  of  Rs.  12-50  per day  if  his  basic  salary  is  below  Rs.  200/-;  for  a  workman  drawing  a salary  between  Rs.  200/-  and  Rs.  399/-,  the  allowance  is  Rs.  20/-  and by  a  sliding  scale,  the  allowance  is  increased  to  Rs.  45/-  a  day  for  per- sons  drawing  salaries  from  Rs.  1,200/-  to  Rs.  1,800/-  and  to  Rs.  55/- per  day  for  heads  of  departments  etc.  in  the  grade  the  minimum  of which  is  Rs.  1,500/-.  This  allowance  is  paid  for  the  first  45  days  of  the temporary  posting.  Thereafter,  the  monthly  rate  applies.  The  monthly rate  for  the  lowest-rated  workmen  (drawing  less  than  Rs.  200/-  p.m.) is  Rs.  125/-  and  at  the  highest  level  for  heads  of  departments  etc.  it  is Rs.  550/-.  Allowance  at  this  rate  is  paid  for  the  remaining  portion  of one  year  of  temporary  posting.  The  rates  for  less  expensive  stations are  slightly  lower  ranging  from  Rs.  10/-  to  Rs.  44/-  as  daily  allowance and  from  Rs.  100/-  to  Rs.  440/-  as  monthly  allowance.  For  postings abroad,  that  is  outside  India,  Ceylon  and  Pakistan,  the  rates  are  higher and  they  are  set  out  in  Appendix  'B'  at  pages  98—102  of  the  Service Regulations.  The  rates  for  each  country  are  different  and  have  been fixed  after  taking  into  consideration  the  cost  of  living  at  those  places. For  instance,  the  daily  allowance  for  places  in  U.S.A.  varies  from  fifteen dollars  a  day  for  employees  drawing  a  salary  of  less  than  Rs.  250/-  per month  to  $  27-50  a  day  for  officers  in  the  grade  with  a  minimum  of Rs.  1,500/-  and  above.  The  rates  for  London  are  £  7  a  day  for  the highest  paid  and  £  3-10-0  for  the  lowest  paid  workmen  i.e.  those  draw- ing,  a  salary  of  less  than  Rs,  250/-  per  month.  For  the  flight  crew, when  posted  abroad,  the  rates  are  understandablv  somewhat  lower because  flight  crew  members  are  compensated  by  the  payment  of  lay- over  allowance.  At  thp  time  this  reference  was  made,  the  ratp  was £3  oer  day  for  the  first  90  d ^n  and  thereafter  at  lhc  applicable monthly  rate  at  which  foreign  allowance  was  payable.
300.  Party  No,  2  had  made  no  demand  on  this  score  in  their  charter but  when  written  statements  were  called  for  they  made  an  elaborate demand  for  a  substantial  increase  in  daily  allowance  for  all  postings.

SEC.  3(11))  THE  GAZETTE  OF  INDIA  EXTRAORDINARY  405.
The  Union  also  wanted  some  further  advantages  in  the  matter  of  out- station  postings,  such  as  that  when  an  employee  on  ground  service  is- detailed  for  duty  from  his  normal  or  shift  duty  for  emergency  duties  at an  outstation,  he  should  be  considered  to  be  on  duty  even  while  travell- ing  for  the  purposes  of  overtime  payment  and  the  allowance  should  be admissible  even  during  privilege  leave.  It  may  be  mentioned  here  that outstation  allowance  is  'paid  during  sick  leave  or  casual  leave  when taken  at  an  outstation.
301.  Party  No.  3  also  asked  for  an  increase,  as  also  Parties  4,  5  and  7. The  original  claim  of  Party  No.  6  in  the  charter  was  for  an  allowance cif  £  5  per  day  for  temoorary  postings,  but  subsequently,  they  demanded thoi,  they  should  be  paid  outstation  allowance  at  the  rate  of  £  6  per day  for  a  period  of  90  days  which  should  be  the  maximum  length  of temporary  posting.  In  the  settlement  reached  between  pilots  and  the Corporation,  this  item  was  disposed  of  as  follows.  Commanders  would recehf  a  daily  outstation  allowance  of  £ 5,  co-piluis  an  allowance  of £ 4-10.  The  rates  for  Moscow  and  U.S.A.  were  left  as  previously.  In the  agreement  cf  the  engineers  (Party  No.  5)  with  the  Corporation dated  October  15  1965,  this  demand  was  dropped  by  the  aircraft  engi- neers-  We  are,  therefore,  now  left  with  the  demands  of  Parties  2,  3, 6  and  7.
 
302.  The  demand  of  Party  No.  2  is  so  excessive  that  it  is  clearly- unreasonable  and  cannot  be  entertained.  It  is  demanded  that  the  low- est  category  of  workmen  should  be  merged  with  the  next  higher  cate- gory,  that  the  staff  drawing  a  basic  salary  of  Rs.  249/-  and  below  should be  paid  at  th;e  same  rate  as  the  staff  drawing  a  basic  salary  of  less  than R's.  750/-  but  including  and  above  Rs.  250/-  per  month.  It  is  further demanded  that  the  daily  allowance  should  be  increased  by  90%.  This will  lead  to  the  result  that  a  workman  drawing  a  salary  of  Rs.  50/-  posted in  India,  Ceylon  or  Pakistan,  will  receive  a  daily  allowance  of  Rs.  76/-. This  is  quite  out  of  proportion  to  the  amount  of  additional  expenses  he would  have  to  incur  for  being  posted  away  from  his  normal  place  of business.  The  other  increases  demanded  are  also  unduly  excessive. Indeed,  I  do  not  think  there  is  any  justification  whatsoever  for  increas- ing  the  already  generous  rates.  Workmen  drawing  below  Rs.  200/- are  paid  an  additional  salary  of  Rs.  300/-  at  the  cheaper  stations  and Rs.  375/-  at  the  more  expensive  ones,  e.g.  Bombay,  Calcutta,  Madras, etc,  This  should  more  than  compensate  the  workmen  for  the  incon- venience  and  extra  expenses  consequent  upon  being  posted  at  an  out- station.  The  foreign  rates  also  do  not  appear  to  be  in  any  way  inade- quate.  They  were  last  revised  in  August  1964.  A  review  of  these rates  is  made  frequently  and  it  seems  to  me  that  the  Corporation  has been  liberal,  if  not  generous,  in  paying  outstation  allowance.  The  out- station  allowances, paid  by  the  'Corporation  compare  very  favourably with  similar  allowances  paid  bv  other  firms  in  the  private  and  Dublic sectors.  The  details  of  some  of  these  firms  are  given  in  Exhibit  M—103 filed  by  the  Corporation.  The  Indian  Telephone  Industries  Limited pays  no  more  than  Rs.  3-30  per  day  to  personnel  of  the  4th  grade  wlvse maximum  pay  scale  does  not  exceed  Rs.  110/-  and  for  higher  scales Rs.  0-50  for  everv  Rs.  12-50  of  pay  for  nersonnel  drawing  a  salarv  of more  than  Rs.  220/-  but  less  than  Rs.  800/-  subject  to  a  minimum  of Rs.  8/-  and  maximum  of  Rs.  13-30.  The  corresponding  category  in Air-India  is  paid  from  Rs.  20/-  to  Us.  40/-  per  day  depending  on  the

4O4  THE  GAZETTE  OF  INDIA  EXTRAORDINARY  [PAHT  II—
quantum  of  wage.  The  highest  outstation  allowance  paid  by  the  Indian Telephone  Industries  is  Rs.  18-75  for  officers  drawing  a  salary  of  more than  Rs.  1,000/-.  The  corresponding  amount  in  Air-India  is  Rs,  55/- per  day.  Indeed,  the  outstation  allowances  paid  by  other  industries appear  to  be  insignificant  and  derisive  when  compared/with  similar allowances  paid  by  Air-India.  I  can,  therefore,  find  no  ground  for making  any  increase  in  the  outstation  allowances  except  in  the  case  of the  fljght  crew  and  this  is  justifiable  only  on  the  ground  that  pilots  have been  given  a  slight  advantage  over  the  previous  conditions.  The  ori- ginal  outstation  allowance  paid  to  commanders  was  £  3 per  day.  Under the  agreement,  it  has  been  raised  to  £  5  in  the  case  of  commanders  and £4-10-0  in  the  case  of  co-pilots.  Throughout  these  proceedings,  I  have classed  flight  engineers  and  flight  navigators  as  workmen  of  equal status,  ranking  below  the  first  officers-  In  this  view  of  the  matter,  it is  proper  to  fix  the  outstation  allowance  for  members  of  these  two unions,  i.e.  Parties  6  and  7,  at  £4-0-0  per  day.  The  outstation  allowance paid  to  cabin  attendants,  in  my  view,  is  adequate  and  does  not  need enhancement.
303.  The  result,  therefore,  is  that,  except  for  the  slight  increase1  in the  outstation  allowance  paid  to  flight  engineers  and  flight  navigators, this  demand  is  rejected-
5.  Item  No.  35—Resettlement  allowance
304.  Under  the  Standing  Orders,  two  types  of  allowances  on  transfer are  paid  by  the  Corporation.  Paragraph  45  deals  with  settling  down allowance  which  is  paid  to  employees  on  permanent  transfer  from  any station  in  India,  Pakistan  or  Ceylon  or  from  one  foreign  station  to another  foreign  station.  Under  paragraph  46,  a  re-settlement  allowance is  paid  to  an  employee  on  transfer  from  one  station  to  another  within India-  There  are  two  scales  of  the  settling  down  allowance.  For employees  drawing  a  salary  of  Rs.  750/-  and  above,  a  sum  of  Rs.  1,000/- if  unmarried  and  Rs.  1,200/-  if  married,  is  allowed.  For  employees drawing  a  salary  below  Rs.  750/-,  the  settling  down  allowance  is  Rs.  750/- in  the  case  of  an  unmarried  employee  and  Rs.  900/-  in  the  case  of  a married  employee.  Resettlement  allowance  is  payable  only  to  em- ployees  drawing  a  salary  of  Rs.  700/-  and  under  and  the  scale  is  as follows:
(a)  employees  drawing  a  salary  less  than  Rs.  90/-  p.m.^Rs.  50/-; (b)  employees  drawing  a  salary  between  Rs.  90/-  and  Rs  249/-
p.m.—Rs.  100/-J
(c)  employees  drawing  a  salary  between  Rs.  250/-  and  Rs.  499/-
p.m.—Rs.  150/-;  and
(d)  employees  drawing  a  salary  between  Rs.  500/-  and  Rs  700/-
p.m.—Rs.  200/-.
This  scale  was  settled  by  an  agreement  between  the  parties  arrived  at on  May  9,  1960.
 
305.  In  the  present  reference,  no  demand  was  originally  made  by Parties  4,  5,  6  and  7  although,  subsequently,  in  the  written  statement, Party  No.  5 made  a  claim  for  an  increase  in  resettlement  allowance.  The resettlement  allowance,  it  will  be  seen,  is  paid  only  on*  transfer  from one  station  to  another  within  India,  and  properly  speaking,  this  allow- ance  alone  has  been  referred  to  me.  The  settling  down  allowance which  if  paid  on  transfer  to  stations  abroad,  Is  not  a  subject  matter  of

SEC.  3til)]  THE  GAZETTE  OF  INDIA  EXTRAOBDINARY  405
the  present  reference,  and  therefore,  any  demand  in  respect  of  it  cannot be  considered,  as  it  is  beyond  the  scope  of  these  proceedings.  In  the agreement  of  October  15,  1965,  Party  No,  5  specifically  dropped  the demand  of  a  resettlement  allowance.
306.  The  demand  of  Party  No.  2  is  that  resettlement  allowance  or  a settling  down  allowance  of  Rs.  1,500/-  in  the  case  of  unmarried  employ- ees  and  Rs.  1,800/-  in  the  case  of  married  employees  drawing  a  salary below  Rs.  750/-  should  be  paid  and  for  employees  drawing  a  salary  of Rs.  750/-  and  above,  the  corresponding  amounts  should  be  Rs.  1^800/- and  Rs.  2,000/-,  It  seems  that  there  was  some  misconception  regard- ing  the  true  nature  of  this  item,  for  a  resettlement  allowance  has  been interpreted  as  a  settling  down  allowance  whereas  the  two  allowances arc  distinct  and  separate  matters.  If  in  para  42  of  its  written  state- ment  Party  No.  2  makes  a  demand  for  settling  down  allowance,  the demand  must  be  rejected  as  being  beyond  the  scope  of  this  referenca.
307.  If,  on  the  other  hand,  the  demand  is  for  a  resettlement  allow- ance,  then,  it  is  quite  clear  that  the  amounts  claimed  are  excessive  and bear  no  relation  to  reality.  Party  No.  3  has  demanded  substantial increases  in  the  present  scale  of  resettlement  allowances,  The  present scales  and  the  scales  demanded  are  as  follows:
Basic  Pay
Present  Demanded
R s.  R s,
L e ss  t h an  R s.  9 0 /-  . ..
.  .  5 0 /-  3 5 0 /-  ^ 5 0 /-
B e t w e en  R s.  9 0 /-  a nd  R s,  2 4 ' j /-
.  .  i  0 0 /-  4 5 0 /-  5 5 ° /-
B e t w e cn  R s.  2 5 0 /-  a nd  R s.  4 9 9 /-
•  150/-  5 0 0 /-  0 5 0 /-
A b n vc  R s.  5 0 0 /-  . ..
.  .  2 0 0 /-  6 5 0 /-  7 5 0 /-
308.  The  scale  in  force  now  was  fixed  by  means  of  an  agreement  and conditions  have  not  altered  to  such  an  extent  as  to  justify  a  change. The  Corporation  has  opposed  the  demand  and  has  placed  before  me  a comparative  statement  (Exhibit  M—105)  which  shows  that  in  no  other industry  are  conditions  in  any  way  better  than  those  which  obtain  in Air-India.  The  statement  contains  a  list  of  15  industries  besides  Air- India  of  which  13  are  in  the  public  sector  and  2  in  the  private  sector. In  11  cases,  no  resettlement  allowance  is  paid  to  the  employees.  In the  remaining  4  cases,  the  resettlement  allowance  is  less  than  that  paid by  the  Corporation.  No  evidence  was  produced  before  me  to  support this  demand,  no  cogent  arguments  have  been  advanced  beyond  the  sub- mission  that  the  cost  of  living  has  gone  up  and,  therefore,  there  should be  an  increase  in  this  allowance  and  the  workmen  should  be  allowed to  share  in  the  progress  and  prosperity  of  the  undertaking.  This  fre- quently  repeated  argument  cannot  be  made  the  basis  of  increasing  every demand,  for  the  cumulative  effect  of  an  all-round  increase  would  be to  cripple  the  finances  of  the  Corporation.  Substantial  increases  in salaries  and  other  allowances  have  been  made  by  this  award  and  I  see no  justification  for  conceding  an  increase  in  the  resettlement  allowance. I,  therefore,  reject  the  demand.
6. Item  No.  47—Travel  on  duty
309.  The  present  rules  with  regard  to  travel  on  duty  are  laid  down in  the  Establishment  Orders.

406  THE  GAZETTE  OF INDIA  EXTRAORDINARY  [FAFT  I I-
310  Under  the  regulations,  employees  axe  allowed  to  ,travel  first class  or  economy  class  according  to  their  status.  When  travelling  on duty,  they  arc  given  a  definite  passenger  seat  in  the  class  to  which  they are  entitled,  unless  no  accommodation  is  available  and  in  that  event, they  are  provided  with  seats  in  the  lower  .class.  While  travelling  by train,  similar  rules  apply.  Employees  drawing  a  salary  of  Rs.  1,200/- and  above,  are  entitled  to  'air-conditioned  class  if  available,  otherwise, first  class.  Employees  drawing  above  Rs.  400/-  and  below  Rs.  1,200/- are  e"titled  to  travel  in  the  first  class.  Employees  drawing  a  salary of  more  than  Rs,  50/-  and  less  than  Rs.  400/-  are  entitled  to  travel  in the  second  class  and  employees  drawing  a  salary  of  less  than  Rs.  50/- are  entitled  to  travel  in  the  third  class.  There  are  similar  rules  with regard  to  travel  by  sea  and  all  employees  drawing  a  salary  of  Rs.  400/- and  above,  are  entitled  to  the  highest  class  In  the  ship  on  whichf  they travel.  Three  days'  joining  time  for  temporary  transfers  and  seven days'  joining  time  for  permanent  transfers  are  allowed  to  all  employees. There  are  also  provisions  for  free  baggage  allowance,  contained  in  para- graph  43  of  the  Establishment  Orders.
311.  No  demand  has  been  made  under  this  item  by  Parties  3,  5  and  6. Th^  claim  of  Party  No.  2  is  very  extensive  and  is  set  out  in  paragraph 54  of  the  written  statement  ot  the  Party.  The  various  itoms  are  as follows:
"(A)  For  determining  salary  for  the  entitlement  of  class  of  travel substantive  abowances  should  be  included  along  with  basic pay-
(B)  Class  of  travel  as  determined  under  (A)  above  as  per  exist- ing  provisions  should  also  be  admissible  in  cases  where  an employee  is  required  to  attend  Court  cases  or  proceedings or  in  cases  where  he  is  required  to  attend  police  stations.
(C)  Free  baggage  allowance  should  be  2,000  kilos  for  married and  1,200  kilos  for  unmarried  employees,  and  all  packing charges  to  the  docks  and  airport  are  to  be  borne  by  the Corporation.
(D)  The  family  of  the  employee,  on  permanent  posting,  should
be  provided  with  definite  seats.
(E)  For  employees  on  ground  services,  'flying  time'  and  'waiting time',  in  the  event  of  emergency  or  temporary  duties  to other  stations,  should  be  taken  into  account  to  determine overtime  work  for  the  purpose  of  overtime  payment. (F)  In  the  event  of  travel  on  duty—either  on  emergency  or  tem- porary  or  permanent  posting—the  employee  concerned should  have  the  following  joining  time:
(i)  3  clear  days  (excluding  the  period  of  actual  travel)  on  tem- porary  posting.
(ii)  10  clear  days  (excluding  the  period  of  actual  travel)  on permanent  posting.
(G)  The  entitlement  to  class  of  travel  should  also  be  admissible
in  cases  of  mutual  or  voluntary  transfers.
 
(H)  In  the  event  of  an  employee  not  being  able  to  undertake pny  journey  by  air,  he  should  be  allowed  to  travel  by  rail in  the  event  of  posting  or  transfer  within  India."

SEC.  3(11)]  THE  GAZETTE  OF  INDIA  EXTRAORDINARY  407
312.  The  pilots  claim  that  they  should  be  given  a  definite  first  class seal  when  they  are  travelling  on  duty  and  a  similar  claim  was  made by  flight  engineers.  In  the  agreement  which  was  arrived  at  with  the pilots  on  July  26,  1965,  no  change  was  made  in  the  conditions  prevail- ing  at  present  and  it  was  merely  provided  that  a  pilot  travelling  as  'staff an  duty'  will  be  provided  with  a  definite  passenger  seat.  I  have  given this  matter  my  most  earnest  consideration  and  I  am  unable  to  accept the  demand  made  by  Party  No.  2.  The  present  rules  appear  to  me  to be  generous  in  all  respects.  Taking  their  demands  seriatim,  tfiere  is no  justification  for  including  all  allowances  for  determining  the  class of  travel  to  which  the  employee  is  entitled  and  as  by  this  award  a substantial  portion  of  the  dearness  allowance  has  been  merged  with the  salary,  the  demand  will  largely  be  conceded.  The  case  of  employees travelling  in  order  to  attend  court  is  already  provided  for  by  paragraph 29  of  the  Establishment  Orders  and  no  change  is  warranted  in  this  res.- pect.  The  free  baggage  allowance  at  present  is  1080  kilos"  for  an employee  with  family,  when  he  draws  a  salary  of  Rs.  1,200/-  and  above, and  if  he  travels  without  his  family,  the  corresponding  allowance  is 540  kilos.  For  employees  drawing  a  salary  oi  above  Rs.  400/-  and below  Rs.  1,200/-,  the  allowances  are  810  kilos  when  travelling  with family  ?nd  405  kilos  when  travelling  without  family.  Employees drawing  a  salary  between  Rs,  50, -  and  Rs,  400/-,  are  allowed  540  kilos when  travelling  with  family  and  270  kilos  when  travelling  without family.  For  employees  drawing  a  salary  below  Rs.  50/-,  the  allowances are  270  kilos  when  travelling  with  family  and  135  kilos  when  travelling without  family.  There  are  no  employee's  of  the  Corporation  drawing a  salary  below  Rs.  50/-  and  so,  the  last  category  is  now  redundant.  These figures  are,  in  my  view,  adequate  and  the  demand  of  Party  No.  2  must be  rejected.
313.  With  regard  to  item  (D),  this  is  already  being  done  and  nothing further  need  be  said  about  the  matter.  There  is  no  justification  for treating  any  waiting  period  as  overtime  work  for  purposes  of  overtime payment  and  if  an  employee  arrives  at  his  place  of  work  in  the  morn- ing,  shortly  before  his  duty  begins,  the  intervening  period  cannot,  by anv  stretch  of  meaning,  be  said  to  be  a  period  of  overtime  work  parti- cularly  when  it  is  considered  that  the  employees  are  entitled  to  joining time  whether  the  transfer  is  permanent  or  temporary.  Ten  days'  join- ing  time  is  now  being  claimed  by  Party  No.  2  on  permanent  transfer. It  seems  to  me  that  seven  days  is  quite  adequate  for  this  purpose  and the  present  rules  do  not  need  any  change,  The  class  of  travel  to  which an  employee  is  entitled  on  a  mutual  or  a  voluntary  transfer  is  decided at  the  discretion  of  the  Management,  and  since  this  is  a  transfer  at  the instance  of  the  employee  himself,  T do  not  think  that  there  is  any  justi- fication  for  altering  the  present  rule.  "With  regard  to  the  last  d e m a n d- that  in  the  event  of  an  employee  not  being  able  to  undertake  journey by  air  he  should  be  allowed  to  travel  by  rail—the  Corporation  sub- mitted  that  if  the  necessity  of  travelling  by  rail  arises  on  account  of the  ill-health  of  the  employee,  the  Corporation  is  always  willing  to accommodate  him.  But  in  other  cases,  the  employee  cannot  be  given this  concession  because  the  Corporation's  business  is  air  transport  and the  normal  mode  of  travel  should  be  in  the  Corporation's  planes.  This demand  too,  merits  dismissal.
314.  The  result  is  that,  the  demands  of  all  parties  on  this  item  are' rejected.

4o8  THE  GAZETTE  OF INDIA  EXTRAORDINARY  [f ART II—
GROUP  V—Medical  and  Welfare
315.  This  Group  comprises  the  following  three  items:
(i)  Item  No.  2ti--Compensation  for  loss  or  damage  to  baggage  of Cabin  Attendants  and  flight  crew; (ii)  Item  No.  27—Passage  Regulations;  and (iii)  Item  No.  30—Medical  benefits/facilities..
316. .(i)  Item  y,o. 26.—The  matter  is  dealt  with  in  paragraph  55(ii)  of the  Establishment  Orders  issued  by  the  Corporation  where  it  is  provided that  when  loss  or  damage  occurs  lo  the  personal  baggage  of  a  member  of the  flight  crew  flying  as  such  member,  compensation  will  be  payable  upto a  limit  of  Rs.  500.  Provided  that  no  compensation  will  be  payable  if  it  is established  that  the  member  of  the  flight  crew  had  failed  to  comply  with, any  orders  or  instructions  issued  by  competent  authority  in  regard  to carriage  of  crew  baygage.
317.  The  demand  made  on  behalf  of  all  Parties  i.e.  Cabin  Attendants^ Pilots,  Flight  Engineers  and  Flight  Navigators,  is,  that  the  limit  of  Rs.  503 should  be  raised  to  Rs.  1,000.  Also,  the  Corporation,  at  present,  makes  an advance  of  £ 6  to  make  the  purchase  of  clothing  and  other  toilet  items when  the  baggage  is  lost  and  the  member  of  the  crew  is  inconvenienced at  an  outstation.  The  demand  of  all  parties  concerned  is,  that  this  amount should  be  raised  to  £  20.  It  is  further  claimed  that  compensation  for  loss of  baggage  should  be  paid  within  a  stipulated  period  of  45  days.
318.  Under  the  agreement  entered  into  by  the  pilots,  their  claim  was conceded  by  the  Corporation  und  it  has  been  agreed  that  pilots  will  be compensated  upto  a  maximum  of  Rs.  1,000  for  loss  or  damage  to  their baggage  and  their  claims  will  be  settled  within  a  period  of  3 months.  The pilots  will  also  be  entitled  to  an  advance  of  £  20 to  buy  the  requisite  neces- sities  i i  case  the  loss  is  discovered  at  an  out-staticn.  With  regard  to  the disposal  of  articles  so  bought,  the  present  procedure  is  to  continue.  The Corporation  conceded  the  demand  of  the  other  members  of  the  Cabin' ere w to  the  same  extent.  Therefore,  the  limit  of  Rs.  500 will  be  raised  to Rs.  1,000  in  the  case  of  all  members  of  the  crew  and  the  limit  of  £  6 for  the purchase  of  requisite  articles  will  be  raised  to  £  20.  • With  regard  to  the fixation  of  period  during  which  claim  for  compensation  must  be  settled in  case  cf  loss  of  luggage,  the  Corporation  at  first  opposed  the  demand  on the  ground  that  investigation  into  the  factum  of  the  loss  and  the  quantum of  the  value  of  the  goods  lost  must  be  made.  Party  No.  4  pointed  out  an instance  of  a  delay  of  1J  years  which  occurred  when  members  of  the crew  lout  their  luggage  by  an  aircraft  catching  fire  at  the  Bombay  Air- port.  11 was  pointed  Out  that  although  compensation  for  the  loss  of luggage  of  passengers  was  paid  within  15  days,  the  delay  of  1J  years  in the  case  of  the  members  of  the  crew  was  wholly  unjustified.  Since  the Corporation  has  agreed  to  fix  a  limit  of  3 months  in  the  case  of  pilots,  a similar  limit  may  reasonably  be  fixed  for  all  members  of  the  crew.  I would,  accordingly,  make  an  award  in  terms  of  the  agreement  arrived at  with  the  pilots  and  these  terms  will  apply  to  all  the  members  of  the crew.  The  disposal  of  goods  purchased  with  the  advance  will  be  govern- ed  by  the  present  regulations  i.e.,  the  goods  may  either  be  returned  to the  Corporation  or  retained  by  the  member  of  the  crew  concerned  at half  the  cost  incurred.
 
(ii)  Item  No.  27—Passage  Regulations. 319.  The  workmen  of  the  Corporation  enjoy  certain  privileges  with regard  to  free  and  concessional  passages.  These  concessions  are  set  out  in Regulation  4  of  the  Air-India  International  Employees'  Passage  Regula-

SEC.  3(ii)]  THE  GAZETTE  OF  INDIA  EXTEAORDINARY  409
tions,  19U3.  Broadly  speaking,  an  employee,  after  3 years  of  service  in  the Corporation,  earns  one  free  passage  per  year  and  three  other  passages  at concessional  rates.  On  completing  four  years  of  service,  he  is  entitled  to two  free  passages  and  two  at  concessional  rates.  The  scheme  provides for  more  liberal  concessions  for  more  senior  officers  and  after  completing 10  years  of  satisfactory  service,  a  workman  is  entitled  to  two  free  pass- ages  and  two  concessional  passages  on  payment  of  10  per  cent  of  the passage  money  each  year.
320.  There  are  some  restrictions  with  regard  to  routes  and  times.  The routes  on  which  the  passages  are  available  are  set  out  in  paragraph  (2)  of Regulation  4.  Also,  these  concessions  are  not  made  available  during  the peak  travelling  periods  and  they  are,  at  all  times,  subject  to  the  load factor  i.e.  the  passages  are  not  booked  definitely  and  are  made  available if  thL? load  permits.  The  workmen  are  given  economy-class  passages.
321.  Party  No.  3  has  made  no  claim,  but  the  remaining  parties  have all  demanded  further  liberalisation  of  these  regulations.  Broadly  speak- ing,  the  demands  arc? that  there  should  be  increase  in  the  number  of  free passages  and  there  should  be  no  limit  to  the  number  of  90  per  cent  con- cessional  passages.  It  is  further  claimed  that  definite  bookings  should  be made  on  payment  of  10 per  cent  of  the  passage  money,  and  the  restriction regarding  the  non-availability  of  these  concessions  during  peak  periods should  be  removed.  It  is  also  claimed  that  the  definition  of  the  word "family"  should  be  enlarged  and  passages-should  be  made  available during  any  type  of  leave  including  casual  leave,  and  finally,  on  retire- ment,  one  passage  should  be  granted  each  year.
322.  These  demands  have  been  opposed  by  the  Corporation  on  two grounds.  In  the  first  place,  it  is  urged  that  passage  concessions  are  not  a part  of  the  workmen's  conditions  of  service,  and,  therefore,  do  not  come within  the  scope  of  thif  reference.  In  the  second  place,  it  is  alleged,  that the  existing  provisions  are  very  liberal  and  it  would  not  be  possible  for the  Management  to  increase  the  number  or  to  make  the  passages  which are  subject  to  load  any  more  definite  than  they  are,  as  that  would  involve loss  of  revenue  from  fare  paying  passengers  or  the  uplift  of  revenue earning  cargo  or  the  Corporation's  stores.
323.  I  do  not  propose  to  discuss  the  legal  objection  and  it  will  be sufficient  to  say  that  the  matter  has  been  referred  to  me  and  I  am  not inclined  to  reject  the  demand  in  limine,  particularly,  as  I  consider  the demand  not  reasonable,  The  present  passage  concessions  ar_e, in  my  view, very  liberal  and  the  restrictions  relating  to  the  load  factor  and  the  peak travelling  period,  are  necessary  in  the  interest  of  the  revenues  of  the Corporation.  The  Corporation  has  prepared  a  statement  (M-105)  indi- cating  the  total  loss  of  revenue  which  will  result  if  these  demands  are met.  I  am  not  convinced  that  the  calculations  have  proceeded  on  a  sound basis  and  the  figure  of  Rs.  1 • 00 crore  representing  the  loss  in  revenue  may well  be  greatly  exaggerated.  Be  that  as  it  may,  I  consider  that  the  present concessions  are  sufficiently  liberal  and  I  find  no  justification  for  conceding any  part  of  this  demand  to  any  of  the  Unions,  and  therefore,  reject  it.
(iii)  Item  No.  30—Medical  Benefits/facilities.
 
324.  Those  employees  of  the  Corporation  who  come  within  the  pur- view  of  the  Employees'  State  Insurance  Act,  are  entitled  to  receive medical  benefits  provided  by  the  Employees'  State  Insurance  Corpora- tion.  For  all  other  employees,  the  Air-India  Corporation  has  prepared  a scheme  of  medical  benefits.  A  brief  account  of  the  benefits  for  these  two

4IO  THE  GAZETTE  OF  INDIA  EXTRAORDINARY  [PART  II—
classes  of  employees  may  be  given  before  coming  to  the  demands  of  the workmen  made  now.
325.  The  medical  benefit  scheme  under  the  Employees'  State  Insurance Act,  is  a  contributory  scheme.  The  details  of  the  medical  benefits  pro- vided  are  set  out  in  the  Indian  Labour  Year  Book  1963.  These  benefits cover  all  classes  of  maladies.  For  instance,  a  tuberculosis  patient  is entitled  to  medical  care  for  about  a  year  following  the  date  on  which  he become's  disentitled  to  it  provided  he  had  two  years'  continuous  service to  his  credit  at  the  time  T.B.  was  diagnosed.  Medical  benefit  is  provided either  in  the  form  of  out-patient  treatment  at  a  dispensary  or  at  a  clinic of  an  Insurance  Medical  Practitioner,  or  other  institution  or  by  visits  to the  home  of  the  injured  persons  or  as  in-patients  in  a  hospital  or  insti- tution.  Important  among  the  other  benefits  provided  to  injured  persons are  (i)  payment  of  conveyance  charges,  and  or  compensation  for  lows of wages  to  injured  persons  called  to  appear  before  a  medical  board,  referee or  a  hospital,  (ii)  supply  of  spectacles  on  a  no-profit  no-loss  basis, (iii)  supply  of  spectacles  free  of  cost  in  case  of  impairment  of  vision  re- sulting  from  employment  injury,  and  (iv)  supply  of  dentures  free  of cost  in  case  of  loss  of  teeth  due  to  employment  injury.  There  is  an  inde- pendent  hospital  at  Bombay,  M.G.M.  Hospital,  containing  60  beds  for  use of  the  injured  employees.  The  scheme  is  being  gradually  extended  and is  financed  by  contributions  made  both  by  the  employees  and  the employers  and  also  by  the  State  Governments.
 
326.  For  those  employees  who  are  not  covered  by  the  Employees'  State Insurance  Act,  the  Corporation  prepared  an  extended  medical  benefit scheme  which  became  operative  on  October  19,  1962.  This  scheme  does not  extend  to  the  family  of  the  employee  but  provides  the  employees with  a number  of  medical  facilities.  An  employee  is  entitled  to  irec  con- sultation  and  out-patient  treatment  at  the  Corporation's  dispensary  when he  falls  ill  and  the  Corporation  reimburses  the  medical  expenses  in- curred  by  an  employee  when  he  is  on  authorised  leave  at  a  place  in  India where  the  Corporation  has  not  arranged  medical  facilities.  The  Medical Officer  of  the  Corporation  will  visit  the  sick  employee  at  his  residence and  the  medicines  prescribed  by  the  Medical  Officer  are  dispensed  at  the Corporation's  ' dispensary.  If  such  medicine  is  not,  however,  available  at the  dispensary,  then  the  cost  of  purchasing  it  in  the  market  is  reim- bursed.  The  Medical  Officer,  may  in  a  suitable  case,  recommend  a  sick employee  to  receive  indoor  treatment  or  undergo  a  surgical  operation  at a  local  hospital  and  the  cost  of  such  treatment  or  operation  is  borne  by the  Corporation.  The  employee  may,  with  the  prior  approval  of  the Medical  Officer,  have  himself  operated  upon  by  a  surgeon  of  his  own choice  and  in  such  a  case  too,  the  Corporation  will  reimburse  the  cost incurred  upto  the  extent  of  the  amount  which  the  Corporation  would otherwise  have  paid  if  the  operation  had  been  performed  in  a  hospital recognised  by  the  Corporation  or  named  by  the  Corporation's  Medical Officer.  An  employee  suffering  from  tuberculosis  will  be  reimbursed  in respect  of  any  charges  incurred  by  him  for  his  treatment.  Pathological or  X-Ray  examination  of  an  employee  may  be  made  at  a  local  hospital  at the  direction  of  the  Medical  Officer  and  the  cost  of  such  examination  is borne  by  the  Corporation.  The  Medical  Officer  may  send  a  sick  employee to  a  specialist  for  consultation  and  the  cost  of  such  consultation  or  exami- nation  is  borne  by  the  Corporation  in  some  cases.  In  the  case  of  an employee  suffering  from  tuberculosis,  the  cost  of  fruits  purchased  by him  on  the  advice  of  the  Medical  Officer  or  injections  administered  to him,  will  be  reimbursed.  The  cost  of  hospitalising  an  employee  suffering

SEC.  3
from  leprosy  is  also  borne  by  the  Corporation.  In  the  case  of  an  employee suffering  from  diabetes,  the  cost  of  medical  treatment  is  reimbursed  for a  maximum  period  of  one  year.  When  an  employee  falls  sick  during  office hours,  he  is  provided  free  of  charge,  the  necessary  conveyance  to  the hospital  or  his  residence  at  the  discretion  of  the  Medical  Officer.  An employee  injured  during  the  course  of  his  duties  not  arising  out  of  his negligence  or  default,  is  provided  with  all  reasonable  medical  aid  or expenses  as  certified  by  the  Medical  Officer,
327.  To  the  above  must  be  added  the  terms  of  the  agreement  arrived st  between  the  Corporation  and  the  Pilots  and  the  Aircraft  Maintenance Engineers.  This  item  was  disposed  of  in  the  following  manner:
"It  is  agreed  that  the  present  medical  benefits  to  Pilots  will  con- tinue.  Further,  the  Management  has  agreed  in  principle  to evolve  in  consultation  with  the  Guild,  at  an  early  date,  a contributory  scheme  for  extending  a  prescribed  amount  of medical  facilities  to  the  family  of  a  pilot".
The  agreement  with  the  Aircraft  Maintenance  Engineers  is  in  the  same terms.
'
i
328.  The  demands  made  by  the  various  Unions  whose  case  now  re- mains  to  be  considered  are  very  extensive.  I  cannot  do  better  than  quote the  relevant  passage  from  the  written  statement  of  Party  No.  2  (para- graph  37):
" (A)  Best  available  medical  treatment  including  treatment  by  specia- lists  and  hospitaliKation  provisions  at  approved  hospitals  and/or  nursing homes  should  be  provided,  for  staff  and  family,
(B)  A  panel  of  specialists  should  be  appointed  in  consultation  with the  Union.
(O  Hospitalisation.—Beds  should  be  reserved  in  different  hospitals/ Nursing  homes  and  admission  should  be  readily  available  to  all  the employees  according  to  trWr  entitlements,  specially  to  lower  categories of  staff.  No  staff  ::hould  be  sent  to  free  ward.  StaiT  drawing  Rs.  500  per month  and  above  should  be  entitled  for  the  I  Class  Ward,  and  those drawing  below  Rs.  500  per  month  should  be  entitled  for  II  Class  Ward. All  facilities  including  diet  charges  be  paid  in  case  of  indoor  treatment. The  employees  should  be  given  the  choice  to  select  his  own  specialist/ consultant/Institution/Hospital  and  Nursing  homes.
(D)  For  the  convenience  of  the  employees.  General  Practitioners/ Physicians  should  be  approved  by  the  Corporation  in  each  area.  An employee  or  any  member  of  his/her  family  requiring  treatment  will  be entitled  to  go  directly  to  this  doctor  or  hospital  or  Nursing  home  or  if  bed- ridden  or  unable  to  move  out,  will  be  entitled  to  call, such  doctor  to  his/ her  residence.  All  expenses  for  such  treatment  including  transportation charges  should  be  borne  by  the  Corporation.
(E)  The  fit  certificate  issued  by  the  personal  doctor  should  be accepted  by  the  Corporation.
(F)  An  employee  desirous  of  consulting  the  Medical  Officer  or  Practi- tioner  of  the  Corporation  at  his/her  residence,  may  do  so  provided  he/she is  unable  to  go  to  the  Medical  Officer  due  to  his/her  illness.

4 I3  THE  GAZETTE  OF  INDIA  EXTRAORDINARY  Li'ART 11—
(G)  The cost  of  all  hospitalisation/nursing  home  facilities  including visit  fees  of the physicians/specialists  and also  including  treatment,  medi- cines,  diet  including  prescription  prescribed  by the  approved  doctor should  be  reimbursed  on presentation  of  bills  within  a  period  ol  two weeks.  Bills for the services  rendered  by hospital/nursing  home  including costs  of  medicines  etc.  should  be reimbursed  within  two weeks.
(H)  The Medical  Officer  of  the  Corporation  or  on the advice  of  the approved  doctor  when  he  considers  it  necessary  for  indoor  treatment  or for  surgical  operations,  the  cost  for  such  indoor  treatment  should  be borne  by  the  Corporation.
(I)  Injury  while  on  duty.—All  expenses  including  transportation charges  to and fro 1.o hospital  should  be  borne  by the Corporation,  Appli- ances  such  as  glasses,  dentures,  cossets,  crutches  should  be paid  by  the Corporation.
(J)  Maternity  bfrie/Us.—All  facilities  including  antenatal-prenatal and  confinement  treatment  in  recognised  Hospitals/Nursing  homes should  be  provided.
(K)  All  pathological/radiological  investigation  when  recommended by  the  Medical  Officer  of  the  Corporation  or  of  the  approved  doctor should  be paid  by the Corporation  A list  of Pathologist/Radiologist  should be  displayed  for  information  of  all  staff.
(L)  The Medical  Officer  or  on  the  recommendation  of  the  approved doctor  may refer  the employee  to  specialists  for  consultation  and  treat- ment.  Artificial  dentures  or  spectacles  or  hearing  aids  when  recom- mended  or  necessarv  should  be provided  by the Corporation  or  costs re- imbursed.
(M)  Beds  should  be reserved  in  Sanatorium  and in T.B. Hospitals  for T.B.  patients.  T.B., Leprosy,  cancer  or any malignant  diseases  should  be given  special  attention  by  the  Corporation  as  regards  the  treatment  (in- cluding  admission,  operations  etc.)  leave,  special  diet  etc.  should  be  paid to  the extent  until  he is  declared  fit.  Diabetes  patients  should  be  treated for  one year  free  of  cost  but  investigation  and  any  complication  second- ary  to  diabetes  should  be treated  regularly.
(N)  The General  Manager  may at  his discretion  grant  the  employee concerned  leave  with  full  pay beyond  the period  of  leave  to  which  the employee  might  be  eligible,  in  cases  covered  under  (M)  above  or  at hia discretion  in  other  cases  if  necessary.
(O)  The medical  benefits/facilities  admissible  under  this  item  would be  applicable  in  India  and  abroad.
No  demand  was  made  by  Party  No.  3  and  the  demands  made  by Parties  No. 6  and  7 are  somewhat  similar  in  terms  though  not  quite  so extensive  and far-reaching  as  the  demands  of  Party  No. 2.
 
329.  Even  a  cursory  examination  of  the  demands  of  Party  No, 2 set nut  above,  will  show  that  it  is impossible  to concede  demands  of  such  an extensive  nature  without  imposing  a  massive  financial  burden  upon  the Corporation.  It was stated  on behalf  of the workmen  that  in  other  indus- tries  and airlines,  medical  facilities  far  better  and far  more  satisfactory than  those  provided  by  Air-India  Corporation,  are available.  No evidence on  this  point,  however,  was produced  before  me and I am unable  to  accept their  contention  that  other  business  concerns  or  other  airlines  have  more liberal  schemes  for  providing  medical  benefits  to  their  employees.  It

Sic.  3(ii)]  THE  GAZETTE  OF  INDIA  EXTRAORDINARY  413
seems  to  me  that  best  way  of  dealing  with  this  question  is  the  manner  in which  the  pilots  and  Aircrafts  Maintenance  Engineers  have  dealt  with  it. There  is  no  doubt  that  medical  facilities  should  be  available  to  employees at  reasonable  cost.  But,  the  burden  for  this  cannot  be  imposed  entirely upon  the  employer  and  the  answer  to  the  problem  is  to  formulate  a  Con- tributory  Health  Scheme.  Such  a  scheme  exists  for  the  benefit  of  the Central  Government  servants  and  has,  on  the  wrinlc,  proved  satisfactory. There  appears  to  be  no  justification  for  making  an  award  which  would result  in  imposing  an  unduly  heavy  burden  on  the  Corporation  and.I  am satisfied  that  Parties  No.  2,  6  and  7  would  be  sufficiently  benefited  if  in their  case  too,  a  contributory  health  schemes  of  the  type  which  is  under consideration  to  cover  the  case  of  pilots  and  Aircraft  Maintenance  En- gineers,  is  prepared  by  the  Corporation  in  consultation  with  the  em- ployees  who  do  not  come  within  the  scope  of  the  Employees'  State  Insur- ance  Act.  These  latier  will  continue  to  receive  the  medical  benefits  pro- vided  by  the  Employees'  State  Insurance  Corporation.
330.  The  Corporation  raised  a  preliminary  point  that  the  demand  for medical  benefits  was  not  connected  with  employment  or  terms  of  employ- ment  or  conditions  of  employment  and,  therefore,  does  not  give  rise  to  an industrial  dispute.  This  preliminary  objection  was  argued  somewhat half-heartedly  on  behalf  of  the  Corporation,  and  in  view  of  the  fact  that the  Corporation  has  entered  into  an  agreement  with  the  pilots  and  the Aircraft  Maintenance  Engineers  with  regard  to  this  demand,  it  is  clear that  the  Corporation  has  already  waived  this  preliminary  objection.  I find  no  force  in  it  when  considered  in  relation  to  the  other  workmen whose  case  is  before  me.  My  award  therefore  is  that  the  present  medical benefits  will  continue  to  bo  provided  by  the  Corporation,  until  such  time as  a  suitable  Contributory  Health  Scheme  applicable  to  all  classes  of employees  can  be  devised  and  implemented.
Gnoup  VI—Standard  Force  and  Promotion
331.  This  Group  comprises  two  items:
(i)  Item  No.  24—Standard  Force  (Cabin  Attendants  and  Flight
Crew).
and
(ii)  Item  No.  39—Promotion.
332.  (i)  Item  No.  24.—The  substance  of  this  demand  is,  that  the Standard  Force  or  the  total  number  of  personnel  engaged  in  any  parti- cular  class  of  work,  should  be  determined  by  the  Management  in  consul- tation  with  the  workmen  and  in  agreement  with  them.  The  reference  re- lates  to  only  the  Cabin  Attendants  and  flight  crew  and  the  determination of  the  Standard  Force  of  other  categories  of  workmen  is  completely  be- yond  my  jurisdiction.  The  nature  of  the  demand  made  by  the  Pilots and  the  Flight  Engineers,  is  worded  in  almost  identical  terms.  Para- graph  28  of  the  statement  filed  by  Party  No.  4  which  corresponds  with paragraph  25  of  the  statement  filed  by  Party  No.  7,  is  in  the  following terms:
 
"The  Guild  states  that  it  is  desirable  that  the  total  workload  of  the pilots  should  be  so  determined  as  to  ensure  the  safety  and efficiency  of  the  flight  and  the  health  of  pilots.  The  existing strength  of  pilots  is  not  adequate  and  does  not  meet  the  re- quirements  of  Standard  Force,  the  determination  of  which must  take  into  account  the  periodic  flight  and  duty  time  limi- tations,  standby  duty,  simulator  training,  refresher  courses,

414  I*HE  GAZETTE  OF  INDIA  EXTRAORDINARY  [PART  II—
leave,  etc.  The  inadequacy  of  the  number  of  pilots  required to  meet  this  total  workload  is  evident  from,  the  fact  that  al- though  the  maximum  for  accumulating  privilege  leave  is  90 days,  many  pilots  have  now  to  their  credit  leave  ranging  from 120 to  200  days  due  to  the  inability  of  the  Corporation  to  grant leave  for  the  last  three  or  four  years.  The  Guild  is  a  les- ponsible  and  recognised  organisation  of  pilots  and  is  best  suit- ed  to  express  its  opinion  on  standard  force  based  on  its  own experiences.  Joint  consultations  are  necessary  and  determin- ation  of  standard  force  cannot  be  regarded  as  purely  manage- ment  function  when  safety  of  pilots  and  passengers  are  vitally concerned  and  pilots  are  the  men  of  the  spot.  The  Guild therefore  demands  that  the  Corporation  should  agree  to  de- termine  the  Standard  Force  jointly  with  the  Guild  and  its demand  as  mentioned  below  is  justified.
•"A  statement  of  the  Standard  Force  of  Administrative  Posts  in the  Operations  Department  of  the  Corporation  and  of  pilots  in the  rank  of  Commanders  and  First-Officers  will  be  furnished to  the  Guild  once  in  eagh  financial  year.  The  Guild  will  be consulted  and  suggestions,  if  any,  will  be  considered."
333.  The  Corporation,  while  expressing  its  willingness  to  take  into account  the  view  of  the  workmen  concerned,  in  respect  of  the  factors like  duty  time  limitations,  rest  periods,  leave  facilities  etc.,  which  go  to determine  the  strength  of  the  various  categories  of  flight  crew,  claims  that the  final  determination  of  the  Standard  Force "must  rest  with  the  Manage- ment.  There  can  be  no  two  opinions  about  this  matter  and  since  the Management  has  expressed  its  willingness  to  consult  the  workmen  con- cerned,  nothing  further  need  be  said  on  this  matter.
334.  In  the  agreement  which  the  Pilots  entered  into  with  the  Cor- poration,  this  item  was  disposed  of  in  the  following  manner:
"It  is  agreed  that  the  standard  force  of  Administrative  posts  in  the Operations  Department  of  the  Corporation  and  of  Pilots  in  the rank  of  Commanders  and  Co-pilots  shall  be  furnished  to  the Guild  once  in  each  financial  year.  The  Guild  will  be  consult- ed  in  this  matter  before  such  figures  are  furnished."
335.  Therefore,  the  pilots  clearly  dropped  their  demand  that  an agreement  must  be  reached  before  the  Standard  Force  could  be  deter- mined.  This  matter  was  not  dealt  with  in  the  agreement  with  Party No.  5.  The  demand  on  this  score  is  contained  in  paragraphs  20  and  21 of  the  written  statement  in  which  the  two  closely  related  matters  of standard  force  and  overtime  payment  are  discussed.  Party  No.  5  ex- plicitly  dropped  the  demand  with  regard  to  overtime  payment  and  it is  clear  that  the  demand  relating  to  standard  force  was  also  intended to  be  dropped,  it  being  inseparable  from  the  question  of  overtime  pay- ment.  We  may,  therefore,  assume  that  Party  No.  5  thought  it  wise  to drop  the  demand  on  this  score.  The  remaining  classes  of  flight  crew  can- not  claim  a  higher  privilege  than  that  claimed  by  the  Pilots.  I,  there- fore,  reject  this  demand  with'the  observation  that  the  Management  will, in  accordance  with  the  statement  made  before  this  Tribunal,  consult  the workmen  concerned  before  the  quantum  of  standard  force  in  the  var- ious  categories  is  determined.  The  final  arbiter  in  the  matter  must, however,  be  the  Management.

SEC.  3(ii)]  THE  GAZETTE  OF  INDIA  EXTRAORDINARY  4T5
(ii)  Item  lio.  39—Promotion.
336.  The  plea  of  tho  workmen  is,  that  promotion  is  npt  always  made upon  considerations  of  merit  and  seniority  and  thut  there  are  frequent cases  of  favouritism  and  nepotism.  Party  No.  5  (Aircraft  Maintenance Engneers)  and  Parly  No.  6  (Flight  Navigators)  have  worded  their  de- mands  in  the  present  reference  in  a  very  vehement  manner.  It  is  clear that  these  two  parties  consulted  each  other  before  preparing  their  written statements  because  their  demands  are  in  identical  terms.  I  may  quote paragraphs  42  and  43A  and  43B  of  the  written  statement  filed  by  Party No.  5:
"42.  The  Air-India  has  an  outstanding  record  of  favouritism  in  the administration  of  personnel.  No  opportunity  is  lost  by  some persons  holding  administrative  posts  in  the  Corporation  to attempt  to  push  their  favourites  into  higher  positions  and  give opportunities  for  the  same  jumping  the  claims  of  seniors.
43-A.  The  Association  says  that  in  every  case  of  a vacancy  occurring in  a  higher  post,  opportunity  must  be  available  to  the  man immediately  following  to  step  into  it.  This  alone  will  find persons  holding  administrative  posts  in  the  Corporation  to this"  public  undertaking.  The  Engineers,  therefore,  demand as  follows:
"The  promotions  should  be  on  the  basis  of  seniority.  When  an engineer  is  promoted  or  appointed  to  a  higher  grade,  his position  of  entry  in  the  new  grade  should  be  so  fixed,  that his  total  emoluments  including  allowances  are  not  less  than the  total  emoluments  drawn  by  him  before  such  promotion  or appointment.  When  a  vacancy  is  to  be  available,  such vacancy  should  only  be  filled  up  by  staff  available  within  the department  on  seniority  basis.  A  seniority  list  should  be maintained  and  a  copy  given  to  the  Association."
43-B.  In  case  of  a  private  undertaking  an  employer  always  keeps in  view  the  progress  of  the  undertaking.  It  can,  therefore,  be assumed  that  his  judgment  of  men  would  be  governed  strictly on  the  intrinsic  worth  of  each  and  his  capacity  to  contribute to  the  prosperity  of  the  undertaking.  There  would,  therefore, be  little  opportunity  for  favouritism.  In  a  Corporation  like the  Air-India  where  those  in  management  have  no  personal stakes  at  all,  there  is  great  danger  that  administrative  dis- cretion  may  be  misused  for  self-aggrandizement  or  on  extrane- ous  consideration."
337. Despite  this  strong  stand  taken  by  Party  No.  5,  when  negotiations for  an  agreement  were  being  conducted,  Party  No. 5  deemed  it  wise  to drop  this  demand  completely  and  this  fact  was  specifically  mentioned  in the  settlement  of  October  15,  1965.  No  demand  were  made  by  Parties No.  4  and  7.
338.  With  regard  to  Party  No.  2,  it  may  be  mentioned  that  they  made a  somewhat  similar  demand  some  years  ago  but  it  was  dropped  when the  agreement  dated  May  9,  1960,  was  entered  into.  They  made  ro  de- mand  on  this  score  in  their  charter  but  in  their  written  statement,  multi- farious  demands  on  this  head  have  been  made.  Party  No.  3,  it  may  be ^membered,  was  originally  a  cart  of  Party  No.  2.  A  demand  for  pro- /v-iUon  on  grounds  of  seniority  has  now  been  made  by  this  Party.

4i6  THE  GAZETTE  OF INDIA  EXTRAORDINABY  [FART U—
339.  The  contention  of  the  Corporation  is  that  some  of  the  demands made  by  Party  No.  2 are  not  covered  by  the  definition  of  promotion  and are,  therefore,  no,t  the  subject  matter  of  this  reference,  they  are,  there- fore,  beyond  the  jurisdiction  of  the  Tribunal.
340.  With  regard  to  the  demands  of  the  other  parties,  the  contention of  the  Corporation  is,  that  the  promotion  policy  is  based  on  very  sound and  equitable  grounds  and  the  efficiency  of  the  industry  being  the  most important  consideration,  no  change  is  necessary.  This  contention  was sought  .to  be  substantiated  by  placing  on  record  a  number  of  circulars in  which  the  promotion  policy  is  clearly  set  out.
341.  I  shall  first  deal  with  the  demands  of  Party  No.  2  because  it  is clear  that  some  of  these  demands  are  beyond  my  jurisdiction.  .The  de- mands  of  this  party  are  contained  in  paragraph  46  of  their  written  state- ment  and  are  as  follows:
"46.  (A)  Fresh  entrants  should  be  in  the  basic  grade.  For  the  existing employees  vacancies  in  the  basic  grade  should  be  filled  on practical  test.  Establishment  strength  should  be  subject  to half-yearly  review  in  consultation  with  the  union.
(B)  Promotions  to  higher  posts  or  grades  should  be  on  thr  basis of  seniority  with  satisfactory  record  of  service  for  the  im- mediate  two  years  preceding  promotions.
(C)  Maximum  period  of  probation  should  be  six  months. (D)  In  all  cases  of  upgrading,  seniority  of  service  should  have precedence  over  merit.  Selection  will  be  in  agreement  with the  Union."
It  is  clear  that  neither  the  demand  contained  in  paragraph  (A)  nor  ths demand  contained  in  paragraph  (C)  above,  has  any  bearing  on  the  ques- tion  of. promotion.  The  Corporation  is  fully  alive  to  the  importance  of taking  seniority  and  merit  into  consideration  while  promoting  its  work- men  to  higher  posts.  Appointments  to  Grade  I  and  Grade  III  to VI  are  made  by  direct  recruitment.  Promotion  to  Grade  II  is  made  on grounds  of  seniority  and  merit  as  also  promotion  to  Grade  VII,  VIII  and IX.  The  policy  of  the  Corporation  is  contained  in  the  following  circulars (U/II/fil):
(i)  Circular  No.  7/55-56,  dated  February  9,  1956; (ii)  Circular  No.  GM/51-19/3,  dated  March  16,  I960;  and (iii)  Circular  No.  GM/61-1/5519,  dated  October  22,  1963.
342.  A  few  extracts  from  these  circulars  will  indicate  that  the  policy of  the  Corporation  is  a  very  sound  and  just  one.  Paragraph  4  of  the  first circular  is  in  the  following  terms:
"When  vacancies  are  to  be  filled  otherwise  than  by  promotions, they  must  be  advertised,  and  existing  staff  should  be  permitted to  apply  in  answer  to  open  advertisements.  Applications  re- ceived  from  time  to  time  should  also  be  considered  along  with those  in  answer  to  such  advertisements."
Paragraph  d provides  that  promotion  should  be  considered  on  a  merit- cum-seniority  basis.  Paragraph  10  requires  that  for  purposes  of  pro- motions,  Departmental  Promotion  Committee  should  be  set-up  by  each department  with  a  representative  of  the  Personnel  Office  in  each  such committee.

Sue.  3(ii)]  THE  GAZETTE  OF  INDIA  EXTRAORDINARY  417
343.  The  second  circular  of  March  16,  1960,  contains  the  following direction:
"The  correct  method  is  that  when  a  Department  Head  finds  senior people  suitable  for  promotion  on  merit  no  further  action  is  re- quired  except  to  promote  them  accordingly.  It  is  only  when supersession  on  seniority  is  involved  that  a  need  to  appoint  a Committee  will  arise  and  the  Department  Head  should  appoint a  committee  and  indicate  to  the  committee  how  many  people are  to  be  interviewed.  In  indicating  this  number  everybody senior  to  the  juniormost  mentioned  by  the  Department  Head must  necessarily  be  interviewed."
344.  The  third  circular  of  October  22,  1963,  is  even  more  explicit  and direct.  Paragraph  2  provides:
"The  promotions  will  be  on  the  basis  of  seniority,  subject  to  the rejection  of  the  unfit.  In  other  words,  the  overwhelming  con- sideration  in  these  cases  would  be  seniority.  The  question  of superseding  the  senior  employee  will  arise  only  if  he  is  con- sidered  unsuitable  for  the  higher  post.  If  on  the  basis  of  his work  and  conduct  the  senior  employee  is  not  declared  unfit  for promotion,  the  promotion  will  go  to  him,  even  when  there  is an  employee  of  superior  merit  available  below  him  in  the seniority  list.  If  there  is more  than  one  promotion  to  be  made, the  candidates  promoted  will  continue  to  retain  their  existing order  of  seniority  in  the  higher  grade;  that  is,  the  employees  in the  lower  grade  who  are  not  considered  unfit  for  promotion, will  be  promoted  according  to  their  seniority."
345.  If  the  directions  given  in  the  above  circulars  are  implemented, there  can  be  no  case  of  favouritism  and  nepotism.  In  order  to  satisfy myself  of  the  allegations  made  by  Parties  No.  5  and  6  whose  written statements  have  been  quoted  above,  I  asked  Counsel  for  the  workmen to  mention  instances  of  such  favouritism.  None  were,  however,  men- tioned  by  them  and  no  evidence  whatsoever  has  been  produced  to  sup- port  the  contention  that  promotions  are  not  made  in  a  just  and  equitable manner.  The  demand  that  seniority  should  be  taken  into  consideration is  already  being  given  effect  to  although  it  is  quite  clear  that  promotion cannot  depend  entirely  upon  seniority  because  merit  must  not  be  ignored if  the  efficiency  of  the  administration  is  to  be  maintained  at  a  high  level. The  fact  that  Party  No.  5  which  set  out  its  demand  in  very  vehement terms  chose  to  drop  it  when  negotiating  its  settlement,  shows  that  the allegations  of  nepotism  and  favouritism,  were  not  made  in  earnest  and the  parties  found  themselves  unable  to  substantiate  them.
346.  A  reference  may  be  made'  to  certain  observations  made  on  the question  of  promotion  made  in  the  report  of  the  Central  Pay  Commission of  1947  at  page  64:
 
"The  general  formula  of  seniority-cum-merit  was  formally  accept- ed  by  all,  but  the  advocates  of  seniority  interpreted  it  to  mean that  seniority  should  prevail  except  when  a  person  has  been declared  to  be  unfit.  We  do  not  think  it  right  to  put  such a  limited  interpretation  on  the  principle.  The  purpose  of promotion  is  not  merely  to  give  the  public  servant  more  pay, but  also  to  give  him  more  responsible  position  and  more  exten- sive  authority.  The  question  must,  therefore,  be  judged  both from  the  public  interest  and  from  the  interest  of  the  individual concerned.  The  principle  of  seniority  assumes  that  all  mem-

4l8  THE  GAZETTE  OF INDIA  EXTRAORDINARY  [PART  l i-
bers  of  a  particular  grade  are  equally  fit  for  promotion.  Such an  assumption  may  not  do  much  harm  in  the  lower  grades  of the  service  but  it  cannot  be  generally  accepted  when  dealing with  promotion  in  or  to  the  top  grades  ... .In  the  higher  grades of  the  service,  considerations  of  fitness  must  have  precedence over  the  claim  of  seniority."
In  the  circumstances,  the  claims  of  Parties  No.  3  and  6  do  not  appear to  me  to  have  any  force  whatsoever.  The  Management  has  taken  ade- quate  measures  to  safeguard  ths  interests  both  of  the  workmen  and  of the  Management  with  regard  to  efficiency.  It  may  be  repeated  that Party  No.  2,  on  a  previous  occasion,  dropped  this  demand  and  did  not make  it  in  their  original  charter  of  demands  which  gave  rise  to  this reference.
347.  I  need  not  discuss  this  point  further  and  the  quotations  given /from  the  circulars  of  the  Management  clearly  show  that  the  Manage- ment  does  follow  a  policy  which  reduces  to  a  minimum  any  risk  of  un- due  favouritism.  This  demand  is  accordingly  rejected.
GROUP  VII—Fixation  and  Date  of  Implementation.
.348.  This  group  comprises  the  following  items:
1.  Item  No.  2—Fixation  in  the  new  pay-scales,
2.  Item  No.  56—Date  of  implementation.
1.  Item  No.  2—Fixation  in  the  new  pay-scales.
349.  All  workers  will  be  fixed  in  the  new  pay-scales  according  to  the length  of  their  service.  For  instance,  a  workman  in  Grade  I,  in  his  fifth year  of  service, will  draw  a basic  pay  of  Rs. 120 and  the  dearness  allowance of  Rs.  65 i.e.  a  total  of  Rs.  185, his  present  emoluments  including  interim relief  being  Rs. 177.  As  the  categories  covered  by  the  existing  grades  have not  been  altered  and  the  pay-scales  have  been  framed  on  the  basis  of  year- ly  increments,  there  will  be  no  difficulty  or  complexity  in  applying  the new  pay-scales  to  all  workmen  of  various  grades.  Fixation  in  the  case  of Parties  4 and  5, will  however,  be  done  in  accordance  with  their  respective agreements.
2.  Item  No.  56—Date  of  implementation.
350.  Nearly  all  parties  demanded  that  the  award  should  be  implement- ed  retrospectively  and  not  from  the  date  of  its  publication  by  the  Govern- ment.
351  Party  No  2  for  instance,  claimed  that  the  decisions  with  regard  to items  1 to  19, 21, 23, 28, 29, 31 to  38, 40, 43, 45; 46,  51, 54 and  55, should  be implemented  with  effect  from  November  7, 1963.
352  Party  No. 3 made  the  same  claim.  It  also  claimed  that  the  gratuity scheme  should  be made  effective  from  December  1959 when  the  old  scheme applicable  to  ex-Air  India  and  ex-Air  Services  of  India  Limited  employees was  terminated.
353  With  regard  to  Party  No.  4,  the  agreement  with  the  Corporation itself  makes  provision  for  the  date  of  implementation  although  its  original demand  was  that  the  award  should  be  made  effective  from  January  1, 1963.
354.  Parties  5  and  6  made  no  demands  on  this  score.

SEC.  3(ii)]  THE GAZETTE  OF INDIA  EXTRAORDINARY  419
355.  The  claim  of  Party  No.  7  was  that  the  award  should  be  given retrospective  effect  from  January  1, 1963.
356.  With  regard  to  Parties  2  and  3, it  must  be  stated' that  they  were granted  interim  relief  with  effect  from  January  1, 1964, and  the  relief  thus given,  went  to  satisfy  the  demands  of  these  parties  to  a  large  extent.
357.  Under  the  agreement  with  Party  No.  4,  the  new  terms  settled between  the  pilots  and  the  Corporation,  oecame  effective  with  regard  to seme  matters  on April  1, 1964, and  with  regard  to  other  matters  on, January 1, and  March  1, 1965.  For  instance,  Item  Nos.  1, 2, 15, 19, 41, 43 and  51; be- came  effective  from  April  1,  1964.  Item  Nos.  18  and  44  became  effective from  January  1,  1965, and  Item  Nos.  29,  32  and  34,  came  into  effect  from March  1, 1965.  The  dates  given  in  the  agreement  are  the  proper  dates  for implementing  the  various  matters  settled  by  this  agreement.
358.  The  agreement  of  Party  No. 5 also  provides  for  the  implementation of  the  settlement  upon  various  matters.  Some  of  the  matters  are  to  be- come  effective  from  April  1,  1964,  and  others  with  effect  from  January  1, 1965.  It  seems  to  me  just  and  proper  that  the  dates  of  implementation  for similar  items  in  the  case  of  Parties  6  and  7,  should  be  the  same  as  for Parties  4  and  5.  My  award  with  regard  to  these  parties,  therefore,  will become  effective  upon  those  dates  upon  which  the  parties  have  already agreed.
359.  With  regard  to  Parties  2  and  3,  I  have  already  stated  above  that a  measures  of  relief  was  given  to  them  and  in  their  case,  I  feel  that  there 13 no  further  justification  for  making  the  entire  award  retrospective  except with  regard  to  the  gratuity  scheme  which  will  become  effective  from  April 1,  1962.  Such  of  the  other  items  e.g.  Item  Nos.  15,  18,  19,  29,  34,  49  and 52,  as  have  been  conceded  to  these  parties  and/or  to  Parties  6  and  7,  on the  analogy  of  the  treatment  accorded  to  Party  No.  4  in  its  agreement with  the  Corporation,  will  become  effective  from  the  same  dates  as  have been  prescribed  in  its  agreement  with  that  party.
360.  The  pay  scales  and  dearness  allowance  prescribed  by  me  for Parties  2,  3, 6  and  7  will  become  enforceable  from  July  25,  1964,  the  date upon  which  this  Tribunal  was  appointed  and  the  reference  was  taken  up. The  remaining  items  of  the  award  shall  become  effective  from  the  date of  the  publication  of  this  award.  This,  I  feel,  is  the  most  just  and  equit- able  way  of  dealing  with  the  matter  of  date  of  implementation.
Item  Nb.  57:  Interim  Relief,
361.  I  have  already  given  a  brief  account  of  the  manner  in  which  a settlement  with  regard  to  Interim  Relief  was  arrived  at  Here  for  the sake  of  completion,  I  repeat  the  narrative  in  greater  detail.
 
u  i.36u  £!van  e a r,ly  S t a ge  °f  t he  Proceedings  an  application  was  made  on behalf  of  the  workmen  represented  by  Party  No.  3  that  the  demand  relat- ing  to  interim  relief  may  be  heard, immediately  or  else  the  purpose  of  that demand  would  be  frustrated.  This  application  was  heard  on  the  18th November,  1964.  Its  main  substance  was  a  demand  for  a  30  per  cent increase  m  the  dearness  allowance  of  workman  earning  a  salary  between Rs.  51  and  Rs.  650.  After  hearing  arguments  of  botrT  sides  I  held  tS there  was  not  sufficient  material  on  record  before  me  to  come  to  a  con elusion  that  the  interim  relief  claimed  must  be  granted  at  once  The only  point  raised  before  me  was  that  there  had  been  a  substantial increase  in  the  cost  of  living  index  and  this  necessitated  the  grant  of

42o  THE  GAZETTE  OF INDIA  EXTRAORDINAHY  [PAHT II—
interim  relief  by  this  Tribunal.  I  did  not  feel  justified  in  passing  orders regarding  the.  grant  of  interim  relief  until  further  details  and  evidence to  substantiate  the  claim  were  produced.
363.  On  30th  December  1964,  a  joint  application  was  filed  on  behalf  of the  Air  India  Corporation  and  the  Air  Corporations  Employees'  U n i o n- Party  No.  2  according  to  which  an  agreement  had  been  reached  between the  two  said  parties  that  one  ad  hoc  increment  should  be  granted  to  the workmen  on  the  following  eonditions:
(i)  Subject  to  what  is  stated  heroin  below,  one  ad  hoc  increment  in the  existing  scale  of  pay  would  be  granted  with  effect  from  1st April  1964  to  those  workmen  whose  basic  pay-scale  does  not exceed  Rs.  650  per  month.
(ii)  The  said  ad  hoc  increment  would  be  added  to  the  basic  pay  as on  1st  April  1964  in  the  existing  grade  of  those  workmen  who are  in  the  permanent  service  of  the  Corporation  on  the  said  date, at  the  rate  at  which  next  immediate  increment  may  be  due,  but where  no  such  increment  is  due  by  reason  of  the  fact  that  a workman  has  reached  the  maximum  of  his  pay-scale,  the  said increment  shall  be  paid  to  him  as  though  it  were  a  'secondary increment'  due  within  the  meaning  of  Regulation  15B  of  the Air-India  Employees'  Service  Regulations.
(iii)  The  ad  hoc  increment  will  also  be  payable  to  temporary  work- men  with  effect  from  1st  April  1964  provided  they  had  com- pleted  one  year's  continuous  service  on  that  date.  In  the  case of  temporary  workmen  or  probationers  who  had  not  completed one  year's  service  but  had  been  in  continuous  service  on  1st April  1964,  the  ad  hoc  increment  will  be  payable  to  them  with effect  from  the  date  of  confirmation  or  on  the  completion  of one  year's  service  after  1st  April  1964  whichever  is  earlier.
(iv)  In  respect  of  the  workmen  drawing  a  basic  pay  of  Rs.  101—120 as  on  1st  April  1964  the  interim  relief  will  be  Rs.  25  on  and from  1st  April  1964  instead  of  Rs.  20 + Rs.  10  special  allowance sanctioned  under  Staff  Notice  No.  15/64-65  dated  1st  June  1964. (iv)  It  is  further  agreed  that  for  the  purpose  of  fixation  of  pay,  if any,  on  the  basis  of  the  award  to  be  made  by  the  Honourable Tribunal,  the  existing  pay  of  the  employees  will  be  taken  as  the pay  which  they  would  have  drawn  but  for  this  agreement  i.e. without  the  addition  of  the  ad  hoc  increment.
(vi)  Any  payment  made  as  an  ad  hoc  increment  with  accretion  of dearness  allowance  thereto  would  be  set  off  or  adjusted  against any  monetary  benefit  which  may  be  payable  under  the  Award of  the  Honourable  Tribunal  or  recovered  in  any  other  manner if  no  such  monetary  benefits  are  payable  under  the  Honourable Tribunal's  Award.
364.  It  was  distinctly  understood  between  the  parties  that  the  said  ad hoc  increment  as  above,  should  be  deemed  to  be  an  increase  in  Interim Relief  in  settlement  of  the  demand  made  by  the  Air  Corporation  Em- ployees'  Union,  under  item  No.  57 of  paragraph  1 of  the  Schedule  append- ed  to  the  Government  of  India,  Ministry  of  Labour  and  Employment's Order  dated  25th  July  1964,  and  the  aforesaid  demand  of  the  said  Union for  Interim  Relief  shall  no  longer  survive.
 
365  The  above  mentioned  application  was  heard  on  the  14th  January 1965 and  an  award  was  made  in  terms  of  the  said  agreement.  This  award

SEC.  3(ii)]  THE  GAZETTE  OF  INDIA  EXTRAORDINARY  42.I
has  already  been  published  in  the  Gazette  of  India  S.O.  651 dated  the  15th February  1965 and  is  now  printed  as  Appendix  I.
PART  II—What  relationship,  tf  any,  should  the  wage-structure  of  Air  India
bear  to  the  wage-structure  of  Indian  Airlines  with  reference  to
comparable  categories  of  workmen  performing  similar  functions?
366.  Let  me  confess  at  once  that  I  find  myself  in  somewhat  o£ a  quan- dary  while  dealing  with  this  part  of  the  reference.  The  order,  essentially refers  for  my  adjudication,  a  dispute  between  the  Management  of  Air- India  and  its  workmen  only.  Nothing  is  said  about  any  dispute  between Air-India  and  the  Indian  Airlines  Corporation  or  between  Indian  Airlines Corporation  and  its  employees.  For  this  reason,  I  did  not  choose  to  make either  the  Management  of  the  Indian  Airlines  Corporation  or  its  workmen, parties  to  these  proceedings.  Notice  of  the  proceedings  was  sent  to  them and  when  their  representatives  appeared  before  me,  I  told  them  that  they would  not  have  the  righi  to  address  me  upon  the  57 items  of  Fart  I  because they  were  not  directly  concerned  with  the  dispute  relating  to  these  items, the  dispute  refered  for  adjudication  being  exclusively  between  the Management  of  Air-India  and  its  workmen.  There  was,  however,  the question  of  Part  IT  in  which  I  was  asked  to  determine  the  relationship which  the  wage-structure  of  Air-India  should  bear  to  the  wage-structure of  Indian  Airlines  Corporation  and  on  this  point,  all  parties,  viz.,  the Managements  of  Air-India  and  Indian  Airlines  Corporation  and  the workmen  of  both  concerns,  had  a  right  to  be  heard.  I,  accordingly,  gave them  the  opportunity  to  make  their  representation  before  me  when  I  had all  but  concluded  my  hearing  of  Part  I.
367.  Shri  G.  B. Pai  appeared  on  behalf  of  Indian  Airlines  Corporation, while  on behalf  of  the  workmen,  Captain  A. S. Brar  represented  the  Indian Commercial  Pilots'  Guild.  He  pleaded  for  an  adjournment  to  enable  their Counsel  to  come  and  argue  their  case  before  me.  I,  however,  suggested that  Captain  Brar  could  himself  put  forward  the  case  of  his  Union.  Captain Brar  then  said  that  there  were  certain  points  which  he  wished  to  elabo- rate.  He  referred  to  the  point  about  foreign  allowance  or  overseas  opera- tions  allowance  paid  by  Air-India  to  its  pilots  and  pleaded  that  the  pilots of  the  Indian  Airlines  Corporation  should  also  be  paid  a  similar  allowance. It  may  be  mentioned,  that  Party  No. 2 in  the  proceedings,  i.e. Air  Corpora- tions  Employees'  Union,  has,  as  its  members,  workers  of  the  Indian  Air- lines  Corporation  as  well  and  on  their  behalf,  Shri  Buch  appeared  and made  his  submissions  to  which  I  shall  briefly  refer.  Shri  Ramaswamy appeared  on  behalf  of  Party  No. 3.
368.  An  objection  was  raised  on  behalf  of  Parties  2 and  3 that  Part  II •of  the  Schedule  could  not  properly  be  referred  to  me  because  it  did  not amount  to  an  industrial  dispute  and  there  was  never  any  dispute  between the  Air-India  Corporation  and  its  employees  as  to  what  should  be  the relationship  between  the  wage-structure  of  the  two  Corporations.  None of  the  demands  raised  by  the  Unions  had  any  reference  to  the  subject matter  of  Part  II  of  the  Schedule  and  the  Government  of  India,  therefore, had  no  power  to  refer  this  matter  to  the  Tribunal.  Shri  Ramaswamy contended  that  when  there  is  no  dispute  regarding  a  matter,  it  cannot  be referred  to  an  Industrial  Tribunal  for  making  an  award.  Shri  Buch  con- tended  that  whatever  decision  was  made  by  this  Tribunal  could  not  bind the  employees  of  the  Indian  Airlines  Corporation  because  they  were  not parties  and  they  had  not  been  heard  on  each  of  the  items  of  Part  I.

422  THE GAZETTE  OF INDIA  EXTRAORDINARY  [PART  I I~
369.  The  stand  1aken  by  the  Indian  Airlines  Corporation  and  the Air- India  Corporation,  on  the'other  hand,  is  that  this  is  a  fit  matter  for  my adjudication  and that  a reference  having  been  made, I must  give my  award thereon.  Shri  Pai  stated  before  me  that  generally  speaking,  the  Manage- ment  of  the  Indian  Airlines  Corporation  was  prepared  to  grant  the  same pay  and conditions  nf  service  with  minor  modifications  to its  employees  as obtained  in  the  Air-India  Corporation,  particularly  with  regard  to  pilots, flight  crew  and  the  engineering  staff.  With  regard  to  the  traffic  staff  and other  graund  staff,  his  contention  was  that  there  were  certain  differences, because  whereas  the  employees  of  Air-India  worked  only  in  Bombay, Delhi,  Calcutta  and Madras,  the  employees  of  the  Indian  Airlines  Corpora- tion  worked  in  many  other  places  where  conditions  of  service  were different.  With  regard  to  pilots,  Shri  Pai  conceded  that  the  IAC  pilots will  be  entitled  to same  pay and allowances  as the pilots  of  Air-India  with the  exception  of  Overseas  Operations  Allowance  to  which  the  pilots  of IAC  were  not  entitled  because  they  operated  on  internal  routes  only.  On this  point,  on  behalf  of  the  pilots  of  IAC, it  was  contended  by  Captain Brar,  that  the total' emoluments  of  pilots  in  both  the  Corporations  should be  the  same.  His  contention  was  that,  the  overseas  operations  allowance was  not  a  separate  allowance  to which  only  pilots  operating  on the  inter- national  airlines  were  entitled,  but  was a part  of  the total  emoluments  the various  portions  of  which  had  been  suitably  adjusted  in  order  to  obtain an  adequate  total  sum.  In  other  words,  he  meant  to  imply  that  the  basic salary  of  pilots  in  Air-India  had  been  slightly  undervalued  in  order  to introduce  an  overseas  operations  allowance  which  brought  their  total emoluments  to the requisite  sum.  I  find  it  difficult  to  accept  this  argument because  pilots  who  operate  on  international  routes  are  entitled  to  an additional  allowance  because  of  the  peculiarities  of  their  service  and  also of  the  additional  expenditure  incurred  by  them.  It  is  not  enough  to  say that  the  additional  expenses  are  amply  compensated  by  their  layover allowance  or  their  overseas  operations  allowance  because,  as  already  stat- ed  by  me in  an.earlier  part  of  this  award,  the  pilots  of  Air-India  compete with  pilots  of  other  international  airlines  and  they  do not  wish  to  ieel  a sense  of  inferiority  when  comparing  themselves  with  others  who  are similarly  placed  and  who  are  not  more  skilled  or  more  efficient  in  the performance  of the same  type  of  duties.
 
370.  Any  award  that  I  make  with  regard  to  Part  II  of  the  Schedule cannot  be  said  to  have  the  same  binding  force  as  my  award  on  Part  I which  is  between  two parties  who have  been  exhaustively  heard  on  each and  every  item.  Under  law, both  Air-India  and  its  workmen  are  bound by  my  award.  The IAC is  not  a  party  to  these  proceedings  nor  are  its workmen.  In  the  circumstances,  my  award  cannot  be binding  in  the  same sense  as  my  award  en  Part  I.  Shri  Pai,  nevertheless,  said  that  the  IAC would  accept  my  adjudication  with  regard  to  Part  I  also  and  implement it.  It is clear  that  no question  of a workman  refusing  to be bound  by  what I  say can  arise  unless  the workman  is adversely  affected  by  it.  I  feel  that it  would  be  improper  for  me  to  lay  down  categorically  the  relationship which  should  exist  between  the  wajge-structures  of  Air-India  and  Indian Airlines  Corporation.  At  the  same  time,  I  do  feel  that  the  two  Corpora- tions  are  so  similar  both  in  their  constitution  and  in  their  objective  that there  should  be not  only  a  similarity  in  their  wage-structure,  but  as  close a  parity  as it  is  possible  to  maintain,  having  regard  to the  local  and  other differences.  Both  Corporations  operate  in  the  public  sector,  and the  funds of  both  are  provided  by  Government.  Both  are  air  transport  industries. The  pilots  of  Air-India  are mostly  chosen  from  pilots  of  Indian  Airlines Corporation.  Although  the  pilots  of  Air-India  travel  over  international

SEC.  3(il)]  THE  GAZETTE  OF  INDIA  EXTRAORDINARY  42?1
routes  and  perform  their  landings  and  take-offs  from  congested  airports, the  duties  of the pilots of IAC have  their  own peculiar  complexities.  They have  to land  and take-off  much  more  often,  and their  routes  being  shorter, the  strain  is perhaps  not, in any way, less  than  the strain  which  the  duties of  the  pilots  of  Air-India  impose.  The  IAC  now  proposes  to  introduce more  jets  on  its  routes  and  its  engineering  staff  is  required  to  perform the  same  sort  of  duties  as the engineering  staff  of  Air-India.  Thus,  as far as  the  flight  crew  and the  engineers  are  concerned,  there  is  a  close  simi- larity  between  the  duties  of  the workmea  of  the  two  Corporations. •  This has  been  admitted  by Shri  Pai on behalf  of IAC and he has conceded  that the  Corporation  is willing  to  accept  the  salary  scales  which  this  Tribunal will  award  to  the workmen  of  Air-India.
371. I would,  therefore,  say that  there  should  be a parity  or near  parity between  the  workmen  of  Air-India  and  the  workmen  of  Indian  Airlines Corporation  with  regard  to comparable  categories  of  workmen  performing similar  functions.  In  the  case  of  Air-India,  the  flight  crew  are entitled  to an  additional  overseas  operations  allowance  to  which  the  pilots  of IAC will  not be  entitled.  The engineering  staff  of  both  the  Corporations  per- form  similar  duties  and  their  wage-structure  should  be  the  same.  With regard  to  the  other  ground  staff,  the  wage-structure  of  workmen  at Bombay  and  at  Delhi  are to be the  same  but  elsewhere  minor  differences may  exist  because  of  local  conditions.  These  must  be  worked  out  by negotiation  between  the  Management  of  the  Indian  Airlines  Corporation and  its  workmen  or  if  negotiation  cannot  lead  to  any  satisfactory  agree- ment,  by reference  to a Tribunal.  I  am informed  that  many  of  the  agree- ments  between  the  Indian  Airlines  Corporation  and  its  workmen  are shortly  to  expire  and  fresh  negotiations  will  have  to  be  undertaken, These  negotiations  will,  no  doubt,  be  influenced  by  my  remarks  while dealing  with  Part  II  of  the  Schedule.  I  do  not  feel  unduly  inhibited  in giving  an  answer  to this  part  of  reference  because  Shri  Pai has  conceded that  the Management  of the Indian  Airlines  Corporation  would  be  prepar- ed  1-> accept  whatever  suggestions  I  make  in  this  regard  and it  was  quite prepared  to pay its  workmen  salaries  similar  to  thi se which  will  be  paid to  the workmen  of  Air-India  with  some  slight  exceptions,  e.g., with  regard to  overseas  operations  allowance  and  the  ground  staff  located  at  places other  than  Delhi  and Bombay.
372. In conclusion  I cannot  help  observing  that  complaints  are  frequent- ly  heard  of  the  slow  and inefficient  service  rendered  by the employees  of IAC  who, conscious  of  the  privileges  and  the  security  conferred  by the' monopoly  enjoyed  by  them,  are  prone  to  become  slack  and  flabby  in attending  to  their  customers.  In  Air-India,  on  the  other  hand  the  inci- dence  of competition  and a strict  management  control  keeps  the employees, if  I  may use  a  colloquial  expression,  constantly  on  their  tojss  so  thot  the Air-India  service  efficiency  is  very  much  higher.  If  the workmen  of IAC claim  to  be  paid  the  same  emoluments  as  their  opposites  in  Air-India, they  must  shake  themselves  out of the lethargy  of  monopolistic  smugness and  strive  to  become  more  efficient.
373.  This  disposes  of  all  the  matters  which  were  specifically  referred to  this  Tribunal.  Four  other  matters  were  raised  before  me  during  the course  of  the  proceedings  on  behalf  of  Party  No, 3.  These  matters  were referred  to  the Ministry  of  Labour  and  Employment,  and the  party  was directed  tn -raise  them  before  the  Tribunal,  It  was  claimed  that  the members  of  this  party  should  be  given:
 
(i)  upkeep  allowance, (11)  graduate  allowance,

424  THE  GAZETTE  OF INDIA  EXTRAORDINARY  [PART II—
(iii)  cash  allowance,  and (iv)  rifle  allowance.
374.  I  have  already  disposed  of  the  last  two  items  viz.,  cash  allowance and  rifle  allowance,  and  havte  given  my  reasons  for  rejecting  these  two demands.
375. With  regard  to  the  other  two  also,  there  is  very  little  substance  in the  dwmand.  The  salaries  paid  by  Air-India  are  adequate  and  the  ground upon  which  upkeep  allowance  is  sought  is,  that  some  workmen  have  to maintain  clean  uniforms  and  wear  better  clothes,  and  for  this  reason,  they o.iould  be  paid  an  extra  allowance.
376. With  regard  to  graduate  allowance,  the  submission  made  was  that wherevar  an  employee  has  a  higher  educational  qualifications,  he  should be  paid  a  higher  salary.
377.  I  see  no  justification  for  granting  these  two  allowances  and  reject them.
CHAPTER  VIII
Conclusions
I  am  now  sum  up  and  restate  my  award  on  the  various  items.
Item  No.
1.  Scales  and  grades  of  pay.
The  pay  scales  will  be  as  follows: —
Pay Scale
Grade No.
Designation
i. Rs.  103—5—150  .
Assistant  Cook Canteen  Vendor Chowkidar Watchman Cleaner F.'mile  Workar  (Canteen) Gardener Helper Handyman Kitchen  Boy Loader Peon Sweeper
2. Rs,  130—5—J50—10—190
,  Cook
Heads  of  Employees  in  Grade  (I)
above.
Rs.  150—10—200—15—230
Dresser Driver Head  Cook Loading  Supervisor Pri nters'  Assistant.

few:. 3(il)]  Tttfc  GAZETTE  OF  INDIA  EXTRAORDINARY  425
Designation
Pay  Scale
Grade No.
R".  ISO^-IO—.200—15—245—20—345  . •  Junior  Canteen  Assistant Junior  Catering  Assistant Junior  Cargo  Assistant Junior  Clerk Junior  Compounder Junior  Comptist Junior  Mails  Assistant Junior  Puncher Junior  Telephone  Operator Junior  Teleprinter  Operator
Junior  Time  Keeper Junior  Traffic  Assistant Tracer Typist
Typist/Clerk,
Rs.  180—10—200—15—245—20—345 .  Junior  Printer
5-
Junior  Progress  Clerk Junior  Storekeeper.
Senior/Head  Driver.
Rs.  200—15—245—20—345
•6.
Rs.  230—15—245—20—385—25—435
Yard  Supervisor.
7-
Rs.  200—15—245—20—385—25-  510 .  Mukadam Carpenter Tailor Mason Plumber Mechanic  (Cabin  Service).
.  Electrician  (Plant)
Rs.  245—20—385—25—510
Bench  Fitters  (Plant  Sc  Stores) Mechanics  (Plant,  Air-Conditioninf  k
Teleprinter)
Turners faon-licenscd  Welders Machinist Miller
Painter  (Plant,  Transport  &  Store*) Tinsmith  (Plant  &  Transport) Blacksmith Senior  Progress  Clerk.

436  THE  GAZETTE  OF  INDIA  EXTRAOBDINARY  [PART  I I—
Grade No.
Pay  Scale
Designation
10. Rs,  230—15—245—30—385—25—510 ,  Briefing  Assistant
Junior  Artist Ramp  Supervisor Senior  Catering  Assistant Senior  Cargo  Assistant Senior  Clerk Senior  Clearing  Clerk Senior  Compounder Senior  Comptist Junior  Livestock  Attendant Junior  Security  Assistant Senior  Mails  Assistant Senior  Telephone  Operator Senior  Teleprinter  Operator Senior  Puncher Senior  Time  Keeper Senior  Traffic  Assistant Stock  Verifier Supcrvisor-CMOT-Clerk Transport  Assistant.
I I. Rs.  245—20—385—25—535
Senior  Printer Senior  Storekeeper.
Rf.  230—15—245—20—385—25—560 .  Stenographer.
12.
.  Cashier
R".  265—20—385—25—535  .
13.
Draughtsman.
R".  285—30—385—25—560
14-
Asstt.  Cabin  Supervisor Asstt.  Transport  Supervisor Senior  Canteen  Assistant Senior  Livestock  Attendant Chief  Catering  Assistant Chief  Cargo  Assistant Chief  Customs  Clerk Chief  Grain  Shop  Clerk Chief  Printer Chief  Telephone  Operator Chief  Teleprinter  Operator Chief- Traffic  Assistant Librarian
Office  Assistant Section  Storekeeper Senior  Security  Assistant Technical  Assistant,
.  Receptionist.
Ri.  410—25—310  . . ..
 
15-

SEC.  3(ii>]  TH1E  GAZETTE  OF  INDIA  EXTRAORDINARY  427
Pay  Scale
Grade No.
Designation
R s.  3 2 5 — 3 0 — 3 8 5 — 2 5 — 5 6 0 — 4 0 — 6 00  .
16.
Leading  Hand Teleprinter  Technicians Radio  Technician  Gr. Works  Supervisor  7
•  Welders  with  2  licences.
Assistant  Flight  Purser.
17. R s.  3 8 5 — 2 5 — 5 35  . . ..
18. Rs.  410—25—560—40—720  .
Assistant  Artist Assistant  Security  Officer Catering  Officer Dispensary  Supervisor Filing  Supervisor Gardening  Supervisor Incharge-Puncher Personal  Assistant/Secretary Production  Assistant Progress  Supervisor Senior  Draftsman Supervisor  Telephones Teleprinter  Supervisor Assistant  Security-cwm-Fire
Brigade  Officer
Supervisor  Communications.
Rs,  410—25—560—40—720—50—770
Chargchand Examiner1 Transport  Foreman Works  Inspector.
Rs.  485—25—560—40—720—50—770
20.
Air  Hostess Assistant  Chief  Air  Hostess.
Rs.  400—25—450—50—800  (Agreemen
2 1.
A.M.K.  Gr.  I ll Junior  Simulator  Maintenance
Engineer.
Junior  Technical  Officer Radio  A.M.E.  Ill/Junior Radio  Inspector.
Chief  Artisr.
Rs.  460—25—560—40—720—50—870
2 2.
Chief  Time  Keeper Junior  Accountant Junior  Officer Section  Officer Planner Security  Inspector.
.  Flight  Purser
Rs.  485—25—560—40—720—50-870  .
23.
Senior  Check  Purser Assistant  Chief  Flight  Purser.

428  THE  GAZETTE  OF  INDIA  EXTRAORDINARY  [PAST  II-
Pay  Scale
Designation
Grade No.
Rs.  750—50—1000—100^-1200  (Agreement)
24.
A.M.E.  Gr. II Radio  A.M.E.  Gr. II Technical  Officer
Rs.  1000—100—1500  (Agreement1)  ,
A.M.E.  Gr.  I Radio  A.M.E.  Gr.I Senior  Technical  Officer.
Rs.  1270—50—1320—60—500—100—1700 Navigator
2 6.
Flight  Engineer.
Rs.  I20O—I00—1700  (Agreement)
"7.
Senior  Inspector Assistant  Superintendent.
2 8. Rs.  1050—TOO—1650  (Agreement)  .
Captain  (First  Officer).
Senior  Captain  (Commander).
2 9. Rs.  1500—100—2000  (Agreement)  .
Item No.
2.  Fixation in the new pay  scales.
Each  worker  will  be fixed  in the new scales  according  to the number of  years  of his service  except  in  cases  of Parties  4 and 5 which  will be governed  by the terms  of their  respective  agreements  with  the Corpora- tion.
3.  4-Weekly  rates of payment  of  grade pay.
Demand  rejected.
4.  Dearness Allowance.
The  rates  of dearness  allowance  will  be as follows  except  in the case of  Parties  4 and 5 wlvch  will  get D.A. according  to the terms  of  their agreements  with  the Corporation.
Dearntss
Allowance
Batic Pay
F r om  1 00 to  1 49  .
65
F r om  1 50 to  1 99  .
70
F r om  2 00 to  2 99  . . ..
75
So F r om  300  to  399  .
F r om  400  to  499  . . ..
"5
F r om  300  to  649  .
90
F r om  650  to  899  .
95
100 F r om  900  a nd  onwards  .
5.  Bouse  rent  allowance /conditions  governing  allotment  of accommoda-
tion.
Demand  rejected.

SEC.  3(li)]  THE  GAZETTE  OF  INDIA  EXTRAORDINARY  439
Item  No.
6.  Duty  allowance.
Demand  rejected.
7.  Machine  allowance.
Demand  rejected.
8.  Transport/car/conveyance  allowance.
Demand  rejected  except  for  the  demand  of  party  No.  5  who  will receive:  a  conveyance  allowance  as  follows*:.—
Ri.
Assistant  Superintendent
100
Aircraft  Maintenance  Engineer,  Gr.  I ~\ Aircraft  Radio  Maintenance  Engineer  Grade  I  .  .  .  •  J Aircraft  Maintenance  Engineer Aircraft  Radio  Maintenance  Engineer  Grade  II
"\ J 9.  Overtime  payment
Demand  rejected.
10.  Working  on  schedule  "off  day"/holidays.
Members  of  the  clerical  and  administrative  staff  will  be  compensated by  payment  of  25%  of  the  hourly  rate  of  their  basic  pay  in  addition  to the  substituted  "off  day".  The  other  demands  are  rejected.
11.  Jet /hazard  allowance  for  ground  staff.
Demand  rejected.
12.  Shift  allowance.
Demand  rejected  except  that  Assistant  Superintendents  in  the  Main- tenance  Division  of  the  Engineering  Department  who  are  regularly rostered  in  shifts  will  be  paid  a  compensatory  allowance  of  Rs,  150/- per  month  in  lieu  of  Shift  Allowance*.
13.  Licence  Allowance.
Demand  rejected  except  that  in  the  case  of  Party  No.  5 Technical  Pay at  the  rates  specified  below  will  be  payable  to  the  employees.
Assistant  Superintendents  Rs.  250/-  p.m.
Aircraft  Maintenance  Engineer,  Gr.  I/Aircraft  Radio  Main-
tenance  Engineer,  Gr.  I  Rs.  200/-  p.m.
Aircraft  Maintenance  Engineer,  Gr.  II/Aircraft  Radio  Main-
tenance  Engineer,  Gr.  II  Rs.  100/-  p.m. Aircraft  Maintenance  Engineering  Gr.  II/Aircraft  Radio  Maintenance Engineer,  Gr.  II  will  also  be  granted  a  qualification  pay  of  Rs.  100/- per  month  if  they  possess  or  acquire  additional  qualification  as  prescribed under  the  agreement*.
14.  Heavy  duty  vehicle  allowance.
 
Workmen  in  the  lowest  category  will  be  entitled  to  a  driving  allow- ance  of  Re.  1/-  per  working  day  provided  they  are  in  possession  of  a

4 3O  THE  GAZETTE  OF  INDIA  EXTRAORDINARY  [PART  II—
driving  licence for heavy  vehicles  and are required  to drive  the Corpora- tion's  heavy  vehicles  for  the  work  of  the  Corporation.  The  remaining demand  is rejected.
Item No.
15.  Jet  allowance  (cabin attendants and flight crew).
Jet  allowance  will  be admissible  at the following  rates: —
Commanders  Rs. 1,000 per month  "I First  Officers  Rs. 600/- per month  J Flight  Navlgatorst  & Flight  Engineer*  .  .  Rs. 450/- per  month.
Cabin  attendant*  R".  5°/- per  month.
16.  Overseas Operations Allowance.
Demand  rejected.
17.  Travelling allowance.
Demand  rejected.
18.  Excess flying pay/Excess  duty allowance.
Flying  duty in excess of 50 hours  a month  to be paid  at the following rates: —
Commanders  R&! 5°/- per flying hour  T First  Officers  Rs. 35/- P"  flyidg  hour  J Flight  Navigators  Ra. 25/-  Do.
Flight  Engineers.  ,  .  .  .  ,  .  Rs. 25/-  Do.
Flight  Purser*  Rs. 10/-  Do.
Asstt.  Flight  Purser  and Alt  Hostess  .  .  .  Rs. 7-50  Do.
19.  Efficiency Bonus.
Efficiency  Bonus  will  be payable  at the following  ratesf: —
Senior  Captains  a nd Captains       .     .    ..      R s, 2 0 0 /-  p . m.
Flight  Navigators  &  Flight  Engineers           .     .   R s. 100/- p . m.
D e m a nd  of P a r ty  N o. Z  .   .      .     .      .   Rejected.

Party  N o. 5  d r o p p ed  their  d e m a nd
20,  Insurance Coverage.
Demand  rejected  except  that—
(1)  Drivers  will  be entitled  to compensation  if  acquitted  by courts of  breach  of  Motor  Vehicles  Act; and
(2)  Aircraft  Maintenance  Engineers,  will  according  to their  agree- ment, be provided  with  insurance coverage of Bs. 35,000/- wher Hying as a member  of supernumerary  crew*.

SEC.  3(ii)]  THE  GAZETTE  OF  INDIA  EXTBAORDINARY  431
Item  No.
21.  Provident  Fund.
Air  India  will  make  a  contribution  enqual  to  the  contribution  made by  the  employee  subject  to  a  maximum  of  8  1/3%  of  the  pay  and  dearness allowance  except  in  the  case  of  Party  No.  5  who  will  be  governed  by the  terms  of  their  agreement  and  in  whose  case  the  Technical  Pay  and Qualification  Pay  where  admissible  will  be  treated  as  pay  for  the  purpose of  Air  India  Employees'  Provident  Fund  Regulations.*
22.  Flight  duty  time  and  flight  time  limitations  and  rest  periods.
Pilots,  Flight  Navigators  and  Flight  Engineers  will  all  be  governed by  the  rules  set  out  in  the  agreement  of  July  26,  1965  between  the  Pilots and  the  Corporation  which  broadly  aret: —
Flight  time  limitation  will  be  fixed  at  9  hours  and  flight  duty  time at  12  hours.  No  members  of  the  operating  crew  will  be  made  to  fly  for more  than  2  consecutive  nights.  The  periodic  flight  time  limitations  will be—
(a)  35  hours  for  7  consecutive  days, (b)  50  hours  for  15  consecutive  days, (c)  80  hours  for  30  consecutive  days,  and (d)  800 hours  for  one  calendar  year.
With  regard  to  rest  periods,  en-route  if  a  flight  cannot  be  concluded within  the  agreed  flight  time  duty  limitations,  the  Commander  will declare  the  lay-over  at  an  en-route  station  to  ensure  8  hours  of  clear rest  before  continuing  to  fly  to  the  destination  or  the  designated  creVy change  station.  The  routes  with  regard  to  rest  periods,  at  crew  change and  terminal  station  ether  than  base  and  at  base  will  be  same  as  pres- cribed  for  pilots  in  the  above-mentioned  agreement.  The  rest  facilities on  aircraft  for  relief  crew  and  the  rules  regarding  the  transhipment  will also  be  the  same.
23.  Leave  Facilities.
Privilege  leave  may  be  accumulated  up  to  a  period  of  120  days.  All members  of  the  flight  crew  will  be  entitled  to  equal  treatment  under Regulation  24A.  Leave  earned  but  refused  to  a  workman  during  the service  of  the  workman  comes  to  an  end  either  on  retirement  or  resigna- tion  or  disability.  The  remaining  demands  are  rejected  except  in  case of  Party  No.  5*  in  whose  case  if  an  employee  who  is  granted  disability leave  for  90  days  under  the  existing  provisions  is  declared  medically unfit  to  resume  duties,  he  may  be  granted  at  the  discretion  of  the  General Manager  an  extension  of  such  Disability  Leave  for  a  further  period  not exceeding  274  days  which  shall  be  on  half  basic  pay  plus  dearness allowance.
24.  Standard  force  (cabin  attendants  and  flight  crew).
Demands  rejected  except  that  the  Corporation  will  consult  the  work- men  concerned  before  determining  the  quantum  of  standard  force  in  the various  categories |\
25-  Compensation  for  death  or  injury  (relating  to  cabin  attendants  and
flight  crew).
Matter  disposed  of  under  item  No.  20—Insurance  Coverage.

432  THE GAZETTE  OF INDIA  EXTRAORDINARY  [PAH* tt~"
Item  No.
26.  Compensation  for  loss  or  damage  to  baggage  of  cabin  attendants  an4
flight  crew.
Benefits  conceded  by  the  Corporation  to  the  Pilots  in  the  agreement with  them  will  apply  to  all  members  of  the  crew  and  cabin  attendants, viz.,  they  will  be  compensated  up  to  a  maximum  of  Rs. 1,000 for  loss  or damage  to  their  baggage  and  their  claim  will  be  settled  within  a  period, of  3  months.  They  will  also  be  entitled  to  advance  of  £,20  to  buy clothing  and  other  toilet  items  in  case  the  loss  is  discovered  at  an out^ stationf.
27.  Passage  regulations.
Demand  rejected.
28.  Washing  allowance.
Demand  rejected  except  that  the  pay  limit  has  been  extended  tQ correspond  with  the  new  scales.
29.  Accommodation  layover  allowance  at  layover  stations.
The  layover  allowance  would  be  as  follows: —
All  places ex-
cept  New York &  New York  Moscow
Moscow
Commanderst  .  .  £4-"—°  SJ4  N-  Rbs-  I 2 0a
Oo-Pilot"t  •  •  • "1 Flight  Navigators  .  .  [  />_io—o  $13  N. Rbs.  n-oo Flight  Engineers  •  • f  *" Cabin  attendants  .  . J 30.  Medical  benefits j  facilities.
The  Corporation  should  in  consultation  with  the  workmen  prepare  * contributory  health  scheme  to  cover  the  cases  of  those  employees  who, do  not  come  within  the  scope  of  Employees'  State  Insurance  Actf.
31.  Retirement  age
Demand  rejected.
32.  Foreign  allowance.
Demand  rejected  except  for  Commanders  for  whom  the. rate  will  bfe increased  to Rs.  l,000|.
33.  Senior  Check  Pursers'  Instructional  allowance.
Demand  rejected.
34.  Outstation  allowance.
The  rates  of  daily  outstation  allowance  will  be, as  follows: —
C o m m a n d er  .
£  5 — 0 —0  "1
C o - P i l ot
£  4 ^ 1 0 -0  J No  change  in the  case  of  cabin  attendants.

SHC,  3(ii)]  THE GAZETTE  OF  INDIA  EXTRAORDINARY  433;
Item  No.
35.  Resettlement  allowance.
Demand  rejected.
36.  Children  allowance.
Demand  rejected.
37.  Driving  allowance.
Demand  rejected.
38.  Hours  of  work.
Demand  rejected.
39.  Promotion.
Demand  rejected.
40.  Gratuity.
Gratuity  will  be  payable  at  the  rate  of  one  month's  basic  pay  of  every completed  year  of  service  subject  to  a  maximum  of  15 months  basic  pay or  Rs.  30,000  whichever  is  less.  The  scheme  will  be  effective  from  1st April,  1962.
41.  Command  Pay  (Senior  Captains).
Senior  Captains  will  receive  a  command  pay  of  Rs.  300/-  p.m.f.
42.  2nd  Class  Navigators'  licence  allowance.
Demand  rejected  except  for  pilots  who  will  continue  to  receive  the allowance  of  Rs.  100/- for  holding  Navigators'  Licences  in  accordance  with their  agreementf.
43.  Radio/Telephone  allowance.
Demand  rejected  except  for  pilots  who  will  receive  an  allowance  of Rs.  200/-  p.m.  for  holding  a  flight  radio  telephone  operator's  licencef.
44.  Check  Pilots'  allowance.
Check  pilots  will  receive  an  allowance  of  Rs.  200/-  per  month  with effect  from  1st  January,  1965t.
45.  Night  Flying  allowance.
Demand  rejected.
46.  Retirement  benefits  > alternative  employment  of  medically  unfit  flight
crew.
The  terms  of  the  agreement  arrived  at  between  the  Pilots  and  the Corporation  will  apply  to  the  Flight  Navigators,  and  cabin  attendants mutatis  mutandis,  viz.-f.
(\)  those  found  medically  unfit  for  flying  duties  with  suitable ground  jobs  until  they  attain  the  age  of  superannuation,  their salary  being  fixed  at  not  less  than  75f,c  of  their  last  drawn  basic pay.

434  THE GAZETTE OF INDIA EXTRAOBDINARY  [PART II—
(ii)  alternatively,  they  can  opt  for  an  annuity  payable  at  60% of their  last  drawn  basic  pay until  they  attain  the age of 55.
Flight  Engineers  will  similarly  be  covered  by  the  agreement  between -them,  and  the  Corporation.
Item  No. 47.  Travel  on  duty.
Demand  rejected  except  in  the  case  of  pilots, who when  travelling  as "staff  on  duty"  will  be  provided  with  a  definite  passenger  seatf.
48.  Flight  Engineer  Instructors'  allowance.
Demand  rejected.
49.  Check  allowance  for  check  flight  engineers.
Check  Flight  Engineers  will  be paid  a special  allowance  of Rs. 100 per month.
50.  Salary  for  cadet  flight  engineers.
Cadet  Flight  Engineers will receive  a total  salary  of Ra. 750/- inclusive of  Rs.  95/- dearness  allowance.
51.  Special  Travelling  allowance.
Demand  rejected  except  for  Commanders  and  Co-Pilots  who  will  get £2-10-0  and  1-15-0 respectively  while  on flying  duties  for  each  completed period  of  24 hours  spent  away  from  their  permanent/temporary  place of postingf.
52.  Emoluments  of  Check  Navigators.
Check  Navigators  will  be paid  an  allowance  of Rs. 100/- per  month.
'53.  Endorsement  allowance  (Aaircraft  Maintenance  Engineers).
Demand  of  Party  No. 2 rejected.  Party  No. 5 dropped  their  demand
54.  Meal  allowance.
When  an  employee  is  required  to  be  away  from  his  normal  place  of work  on  duty  during  the  period  of  lunch,  dinner,  breakfast,  he  will  be paid  the meal  allowance  despite  the fact  that  he is in receipt  of  overtime allowance  or  holiday  compensation  for  the same  period.
.55.  Secondary  increments.
Demand  rejected  except  that  the  pay  limit  has  been  extended  to correspond  with  the  new  scales.
56.  Date  of  Implementation.
This  award  shall  become  enforceable  from  the  date  of  its  publication under  Section  17  of  the  Industrial  Disputes  Act,  1947,  subject  to  the following  exceptions: —
(i)  The  Gratuity  Scheme  will  be  effective  from  April  1, 1962, for all  parties.
(ii)  The pay scales  and dearness  allowance  for  Parties  2, 3, 6 and 7 will  be  effective  from  July  25, 1964.

SEC.  3(ii)]  THE  GAZETTE  OF  INDIA  EXTRAORDINARY  435
(iii)  In  the  case  of  Parties  4  and  5,  the  dates  prescribed  for  the implementation  of  the  various  items  in  their  respective  agree- ments  shall  apply.
(iv)  In  the  case  of  such  of  the  items  which  have  been  conceded  by this  award,  on  the  analogy  of  the  treatment  accorded  to  Party No.  4,  the  date  of  Implementation  would  be  the  same  as  pres- cribed  for  that  party  viz.:
Item  No.  15—Jet  allowance  (cabin  attendants  and  flight  crew)—Partiea 2,  6  and  7
1-4-1964 Item  No.  18—Excess  flying  pay/excess  duty  allowance—Parties  2,  6 and  7
1-1-1965 Item  No.  19—Efficiency  bonus  —Parties  6 and  7  . . ..  1-4-1964 Item  No.  29—Accommodation  layover  allowance  at  layover  stations  —
Parties  2,  6  and  7
1-3-1965 Item  No.  34—Outstation  allowance—Parties  6  and  7  .  .  .  .  1-3-1965 htm  No.  49—Check allowance for  check flight engineers— Party No.  7 .  1-1-1965 Item  No.  52—Emoluments  of  check  navigators—Party  No.  6  .  .  1-1-1965 Item  No. 57.  Interim relief.
The  matter  was  disposed  of  by  my  award  dated  February  1, 1965.
58.  PART II—Relationship  between  Air-India  and  Indian  Airlines  Corpora- tion.
There  should  be  a  parity  or  near  parity  between  the  workmen  of  the two  Corporations  with  regard  to  comparable  categories  of  workmen  per- forming  similar  functions.
59.  Additional  items  raised  during  the  course of  the  proceeding*.
(i)  Upkeep  allowance
Demand  rejected.
(ii)  Graduate  allowance.
Demand  rejected.
(iii)  Cash  allowance  and  Rifle  allowance.
Demand  already  rejected  under  item  11.
€0.  Costs.
Demand  rejected.
In  the  above  summary  wherever  I  have  used  the  expression  'demand rejected'  it  should  be  interpreted  as  meaning  that  the  state  of  affairs prevailing  at  the  time  the  present  reference  was  made  will  continue.
*  As  per  agreement  dated  15-10-65  between  the  Corporation  and  Party  No.  5.
t  As  per  agreement  dated  26-7-65  between the  Corporation  and  Party  No,  4.

436  THE GAZETTE OF INDIA  EXTRAORDINARY  [PART II—
CHAPTER  IX
Costs
The  only  point  which  remains  to  be  decided  is  the  question  of  costs. Parties  2, 3 and  7 have  put  in  claims  for  costs  to  be  allowed  to  the  unions for  the  expenses  incurred  by  them  in  these  proceedings.  I  enquired  from Air-India  whether  the  Management  had  provided  any  facilities  to  the unions fee  conducting  their  case before  the  Tribunal.  I  am  informed  iand this  is  admitted  by  the  Unions)  that  the  Management  released  three  office- bearers  of  each  of  the  Parties  2  and  3  to  attend  the  hearings,  and  three members  of  the  staff  were  made  available  to  each  party  for  rendering clerical  and  typing  assistance.  With  regard  to  Party  No.  7, two  members were  relieved  of  their  duties  to  enable  them  to  attend  the  hearings  of  the case  and  two  of  their  members  were  not  scheduled  for  flying  duties  during the  course  of  the  hearings.  Parties  4,  5  and  6  have  not  made  any  claim for  costs.
2.  With  regard  to  the  case  of  Partles  2 and  3, I  have  already  stated  that the  demands  us originally  made  in  the  charter  by  Party  No. 2 were  grossly inflated  in  the  Statement  of  Claims.  The  demands  made  by  them  were out  of  all  proportion  to  what  has  been  ultimately  awarded  by  the  Tribunal on  a just  and  fair  basis.  An  objection  was  raised  at  the  very  outset  of  the proceedings  to  the  legality  of  the  reference.  This  objection  was  found  to be  groundless  and  rejected.  It  seems  to  me  that  Parties  2  and  3  have conducted  these  proceedings  in  a manner  which  did  not  promote  a  speedy conciliation  between  the  parties.  Party  No. 7 also  made  very  exaggerated demands  and  having  regard  to  all  the  circumstances  of  the  case.  I  con- sider  that  no  case  is  made  out  for  awarding  costs to  any  of  the  parties.
CHAPTER  X
Acknowledgments
Before  I  take  leave  of  this  matter,  I  should  like  to  express  my  sincere thanks  for  the  courtesy  shown  by  Shri  Salim  M.  Merchant,  Presiding Officer  of  the  Central  Government  Industrial  Tribunal,  Bombay,  in  placing his  chamber  and  his  court  room  at  my  disposal  whenever  it  was  required. He  did  this  at  some  inconvenience  to  himself  at  times  and  I  am  deeply obliged  to  him  for  the  consideration  shown.
2.  I  must  also  express  my  appreciation  of  the  assistance  given  to  me by  Counsel  for  all  parties  throughout  these  proceedings.  The  lucid  anct able  presentation  of  their  respective  cases  were  of  the  greatest  help  to niL- in  understanding  the  complexities  of  this  dispute.
3.  I  should  also  like  to  place  on  record  my  appreciation  of  the  excellent work  done  by  Shri  A. L.  Handa,  Secretary  to  the  Tribunal,  His  extensive knowledge  of  industrial  disputes,  his  unfailing  courtesy  and  hard  work, and  his  administrative  ability,  were  of  inestimable  value  to  me  in  the conduct  of  these  proceedings  and  the  preparation  of  my  award.
4.  I  was  very  ably  and  competently  assisted  by  the  staff  attached  to the  Tribunal  and  they  gave  me  unstinted  assistance  wherever  it  was required.
G.  D.  KHOSLA,
Presiding  Officer,
National  Industrial  Tribunal,
(Air-India  dispute).
NEW  DELHI;
Dated, January  28, 1966.

SEC.  3(il)]  THE  GAZETTE  OF  'NDIA  EXTRAORDINABY  437
Appendix  I
MINISTRY  OF  LABOUR  &  EMPLOYMENT
NOTIFICATION
New  Delhi,  the  15th  February,  1965.
S.O.  651.—In  pursuancs  of  Section  17  of  the  Industrial  Disputes  Act, 1947  (14  of  1947),  the  Central  Government  hereby  publishes  the  follow- ing  award  of  the  National  Industrial  Tribunal,  New  Delhi  in  tne  indus- trial 'dispute  between  the  Air  India  and  their  workmen  which  was  receiv- ed  by  the  Central  Government  on  the  3rd  February,  1965.
BEFORE  THE  NATIONAL  INDUSTRIAL  TRIBUNAL
NEW  DELHI.
[Reference No.  NIT-i  of  1964].
PAKTIES  :
Employers  in  relation  to  Messrs  Air  India,  Bombay,
and
Their  Workmen
PRESENT  :  Shri  G.  D.  Kho"la,
Presiding  Officer.
-AlTLARANCES  ;
On  behalf of  Employers  .  .  .  Shri  S.  D.  Vimadala,  B"r-at-L"w,
with Shri  S.  K. Wadia,  Solicitor, Shri  A.S.  Banavalikar, Personnel  Manager,  and Shri  S.N.  Roy  Chowdhury, Establishment  Officer,  Air  India.
On  behalf of  Workmen .  .  .  (1)  Shri  D.  H.  Buch,  Advocate,
with
Shri  George  Clement,  Regional  Secretary,  Air  Cor-
porations  Employees'  Union.
(ii)  Shri  K.K.  Singhvi,  Advocate,
with Shri  K.  T.  Laxmanan,  and Shri  P.  G.  Kaikhanis, Air  India  Employees'  Union.
(iii)  Shri  C.  L.  Dudhia,  Bar-at-La\r,
with
Captain  Narendra,  General  Secretary,-  Indian  Pilots'
Guild.
(iv)  Shri  P.  D.  Kamerkar,  Advocate,
with Shri  K.R.N.  Swami,  and Shri  A.  C,  Sen,  All  India  Aircraft  Engineers'  As"o- cialion.
(u)  Shri  P.  D.  Kamerkar,  Advocate,
with Shri  S.  N.  Bajpai  and Shri  L.  B. Bhatla,  Indian  Flight  Navigators'  Guild.
(vi)  Shri  C.  I..  Dudhia,  Bar-at-I^w,
with
Shri  D.  H.  Dallas,  President  and Shri  A.  K.  Chakravarty,  General  Secretary,  Indian Flight  Engineers'  Association.
Industry :  Airlines.
Place :  Bombay.
Dated  at  Bombay,  the  15th  lanuary,  1965.

438  THE GAZETTE OF  INDIA EXTRAORDINARY  [PART II—
AWARD
The  appointment  of  this  Tribunal  was  notified  by  the  Central  Gov- ernment,  Ministry  of  Labour  and  Employment,  by  its  notification  S.O. 2560  on  the  25th  July,  1964.  On  the  same  day  by  notification  S.O.  2561 an  industrial  dispute  between  the  Management  of  Air  India  and  their workmen  was  referred  to  the  Tribunal  for  adjudication.  The  matters  in dispute  are  set  out  in  a  schedule  attached  to  the  Notification  and  there are  in  all  57  items  of  dispute  between  the  Management  of  Air  India  and their  workmen  and  there  is  also  an  item  relating  to  the  relationship  bet- ween  the  wage  structure  of  Air  India  and  the  wage  structure  of  the  Indian Airlines  with  reference  to  comparative  categories  of  workmen  performing similar  functions.
2.  The  parties  to  these  proceedings  are:
Party  No.  1.—Air  India  Corporation,  Bombay,  to  which  it  will  be convenient  to  refer  as  the  'Corporation'  or  the  'Management'
and
Their  workmen  which  fall  into  six  categories  as  follows:
Party  No.  2—Air  Corporations  Employees'  Union,  Bombay.
Party  No.  3.—Air-India  Employees'  Union,  Bombay.
Party  No.  5.—All  India  Aircraft  Engineers'  Association,  Bombay.
Party  No,  6.—Indian  Flight  Navigators'  Guild,  Bombay,  and
Party  No.  7.—Indian  Flight  Engineers'  Association,  Bombay.
3.  An  application  on  behalf  of  Party  No.  3  was  made  to  this  Tribunal that  the  demand  relating  to  Interim  Relief  (item  57  in  the  Schedule attached  to  the  Reference  Order  of  the  Government  of  India)  may  be heard  and  adjudicated  immediately.  This  application  was  heard  at Bombay  on  the  18th  November,  1964  and  orders  were  passed  that  more material  and  further  details  and  evidence  to  substantiate  the  claim shouM  be  produced  before  this  item  could  be  adjudicated  upon  by  the Tribunal.  The  parties  were  directed  to  file  further  material  as  had  a bearing  on  the  matter  and  to  produce  evidence  in  support  thereof.
4. An  application  has  now  been  made  by  the  Air  India,  namely,  Party No.  1  to  these  proceedings  and  the  Air  Corporations  Employees'  Union. namely,  Party  No.  2 praying  that  an  agreement  arrived  at  between  them with  regard  to  interim  relief  (item  No.  57  in  the  schedule  annexed  to  the order  of  reference)  should  be  made  an  award  of  the  Tribunal.  Objection is  taken  to  this  application  on  behalf  of  Party  No.  3,  namely,  the  Air India  Employees'  Union.
5.  The  details  of  the  agreement  are  set  out  in  the  copy  of  the  agree- ment  annexed  hereto.  Briefly  by  this  agreement  interim  relief  is  sought to  be  given  to  employees  of  the  Air  India  drawing  a  salary  of  less  than Rs.  650/-  per  mensem.
 
6.  Before  the  present  dispute  was  referred  to  this  Tribunal,  the  Air India  gave  some  interim  relief  by  Staff  Notice  No.  15/64-65,  dated  the 1st  June,  1964.  The  relief  then  given  had  retrospective  effect  from  1st

Sue.  3(11)]  THE  GAZETTE  OF  INDIA  EXTRAORDINARY  439
January,  1964.  Representations  were  made  to  the  management  by  the Air  Corporations  Employees'  Union  subsequently  and  the  agreement which  is  now  before  the  Tribunal  was  arrived  at  and  the  present  reliel is  proposed  to  be  given  with  effect  from  1st  April,  1964.
7.  Before  coming  to  the  objections  raised  on  behalf  of  Party  No.  3,  it is  necessary  to  state  that  interim  relief  is  not  a  final  determination  of  the salaries  and  wages  which  are  considered  adequate  for  employees  of  this category.  This  matter  is  sub-judice  and  will  be  finally  determine*  when all  the  evidence  of  the  parties  has  been  taken  and  Counsel  for  parties have  been  heard.  Interim  relief  in  the  very  nature  of  things  is  a  tem- porary  relief  which  is  given  because  some  immediate  relief  is  considered necessary.  Such  relief  cannot  in  the  very  nature  of  things  be  finally adequate  because  the  adequacy  of  relief  is  the  very  subject  matter  of inquiry.  Another  factor  which  must  be  noted  is  that  the  employees  of the  Air  India  are  stationed  at  various  places  in  India  and  the  conditions- prevailing  in  Bombay  cannot  be  the  sole  criteria  for  determining  the interim  relief  to which  the  employees  are  entitled.  Therefore  the  analogy of  employees  of  other  industrial  concerns  in  Bombay  will  not  be  very relevant.
8. The  nature  of  the  relief  granted  under  this  agreement  may  be  gaug- ed  from  the  following  brief  table  showing  the  basic  salary,  the  present dearness  allowance,  interim  relief  under  the  Staff  Notice  of  1st  June, 1964  and  the  relief  now  being  given:
Present  Dearness
Present  Relief
Basic salary
Allowance
Interim  Relief under Stuff Nonce  of 1-6-1964
30
75
34 53
30
36
78
63
30
83
37 75
1 00
38
03
3°
1 20
98
30
3"
It  will  therefore  be  seen  that  in  every  case  the  relief  now  given  is  sub- stantially  more  than  what  was  given  by  the  Staff  Notice  of  1st  June, 1964.  The  main  argument  raised  on  behalf  of  Party  No. 3 by  Mr.  Singhvi who  appeared  on  their  behalf  was  that  the  relief  which  is  now  being given  is  extremely  inadequate.  I  may  mention  here  that  Party  No.  3 was  not  a  party  to  the  agreement  although  the  members  of  this  Union are  employees  drawing  salaries  under  Rs.  650/-  per  mensem.  Original-^ ly  there  was  only  one  recognised  union,  namely,  Party  No.  2,  which  em- braced  all  employees  drawing  a  salary  below  Rs.  650/-.  This  Union  was recognised  in  1957.  Subsequently  it  appears  there  was  a  split  among  the employees  in  September  1962,  and  Party  No.  3  was  formed.  I  am  told, although  no  evidence  was  produced  before  me,  that  the  membership  of Party  No.  2  is  in  the  neighbourhood  of  2800  whereas  the  membership  of Party  No.  3  is  considerably  less,  being  not  more  than  a  thousand.  Be that  it  may  the  fact  remains  a  large  majority  of  workmen  ailected  by this  agreement  are  party  to  the  agreement.  Mr,  Buch  who  appeared  on behalf  of  Party  No.  2  supported  the  agreement  and  prayed  that  it  be made  an  award  of  the  Tribunal.

4 40  THE GAZETTE  OF INDIA EXTRAORDINARY  [PAKT II—
9.  Mr.  Singhvi  drew  my  attention  to  the  case  of  two  other  industrial concerns,  namely,  the  Firestone  Tyre  and  Rubber  Company  Private Limited  and  the  General  Electric  Company  of  India  Private  Limited. A  reference  to  the  dearness  allowance  determined  by  the  Industrial Tribunal  at  Bombay  on  7th  November  1962,  is  contained  in  paragraphs •67 to  69  of  the  written  statement  filed  by  Party  No.  3.  Briefly  speaking, Mr.  Singhvi's  contention  is  that  the  workmen  of  the  Firestone  Tyre  and Rubber  Company  Private  Limited  were  granted  dearness  allowance  at the  ra*e  of  125 per  cent  of  the  salaries  uptb  (R's. 100/-.  There  was  a  fur- ther  provision  that  as  the  index  of  cost  of  living  rose  they  would  be  en- titled  to  an  increase  of  5 per  cent  of  the  basic  salary  for  every  10  points. In  the  case  of  the  General  Electric  Company  of  India  the  figures  were •even  higher.  The  dearness  allowance  was  determined  at  145  per  cent •of  the  basic  salary  for  all  workmen  drawing  a  salary  upto  Rs.  100/-  per -mensem  and  an  increase  of  5  per  cent  was  to  take  effect  for  every  ten- point  rise  in  the  cost  of  living  index.  I  have  already  indicated  that  the wages  fixed  for  other  industrial  concerns  have  very  little  relevance;  also it  must  be  repeated  that  we  are  at  present  considering  interim  relief  and not  a  final  determination  of  the  workmen's  wages.  Even  so  we  find  that tor  the  lower  paid  workmen  interim  relief  now  given  under  the  agree- ment  between  Air-India  and  Party  No.  2  is  better  than  the  relief  given •to the  workmen  of  the  Firestone  Tyre  and  Rubber  Company  and  General Electric  Company.  A  workmen  drawing  a  basic  salary  of  Rs.  50/-  was entitled  to  dearness  allowance  to  the  extent  of  Rs.  62.50  and  an  increase of  Rs.  25/- on  account  of  a  rise  of  100  points  in  the  cost  of  living  index. Thus  his  total  dearness  allowance  came  to  Rs.  87.50.  In  the  case  of  an Air-India  employee  drawing  a  salary  of  Rs.  53/-  the  dearness  allowance under  the  agreement  comes  to  Rs,  105/-.  Similary  for  a  person  drawing a  salary  of  Rs.  60/-  in  Firestone  Tyre  and  Rubber  Company  would  get  a dearness  allowance  of  Rs.  105/-  corresponding  to  the  dearness  allow- ance  of  Rs.  112/-  given  under  the  agreement  under  consideration.  The dearness  allowance  payable  to  the  workmen  of  General  Electric  Com- pany  of  India  Is  Rs.  97.50  for  an  employee  drawing  a  salary  of  Rs.  50/- and  Rs.  117/-  for  an  employee  drawing  a  salary  of  Rs,  60/-,
10.  It  is,  therefore,  seen  that  for  the  lower  paid  employees  who  need interim  relief  the  most  the  agreement  entered  into  between  the  Air- India  and  Party  No.  2  is  more  beneficial  than  the  award  given  by  the Bombay  Tribunal  to  the  employees  of  the  Firestone  Tyre  and  Rubber Company  and  the  General  Electric  Company.  I  am  assuming  that  the figures  with  regard  to  the  rise  in  cost  of  living  given  by  Mr.  Singhvi are  correct.  According  to  him  the  cost  of  living  index  in  May  1960  was 421  wheras  in  November  1964  it  is  543.  There  has,  therefore,  been  an increase  of  122  points.  The  Industrial  Tribunal  at  Bombay  determined the  wages  in  November  1962  when  the  index  of  cost  of  living  must  have been  higher  than  in  1960.  I,  therefore,  find  that  If  we  look  upon  the benefits  given  under  the  agreement  as  nothinp  more  than  in  the  neture of  a  temporary  and  interim  relief  it  cannot  be  said  to  be  so  wholly  inade- quate  as  to  warrant  rejection  by  this  Tribunal.  It  must  be  remembered that  a  very  large  body  of  workmen  affected  by  this  agreement  has  con- sented  to  it  and  wishes  the  agreement  to  be  made  an  award  of  the  Tri- bunal.
11.  Another  point  raised  by  Mr.  Singhvi  was  that  Air-India  had  made a  very  large  profit  in  the  year  1963-64  and  that  therefore  greater  relief to  the  workmen  Is  justifiable.  There  is  no  doubt  that  the  financial condition  of  an  industry  bears  relation  to  the  wages  of  its  workmen.

SEC.  3(il)]  THE  GAZETTE  OF  INDIA  EXTRAORDINARY  441
But  this  is  a  matter  which  is  sub-judice  and  under  inquiry,  and  merely because  the  last  balance-sheet  of  the  Air-India  Corporation  shows  a  sub- stantial  profit  there  is  scarcely  justification  for  giving  increased  in- terim  relief  without  regard  to  other  matters  which  have  even  greater relevance  to  the  question  of  wages  than  the  profits  earned  by  the  Cor- poration.
12.  Another  point  urged  by  Mr.  Singhvi  was  that  the  agreement should  have  been  made  effective  from  1st  January,  1964  and  not  from 1st  April,  1964.  I  have  already  pointed  out  in  the  earlier  part  qf  this award  that  a  substantial  relief  was  given  to  the  workmen  with  effect  from 1st  January,  1964  under  the  Staff  Notice  of  1st  June,  1964.  The  present relief  which  is  slightly  higher  becomes  effective  from  1st  April,  1964.  I see  no  reason  for  holding  that  the  date  of  1st  April,  1964  is  in  any  way unjust  or  harsh  to  the  workmen.
13.  According  to  the  written  objections  filed  by  Party  No.  3  the  mode of  application  of  the  agreement  to  temporary  employees  was  unjust.  This point  was  not  raised  before  me  except  in  passing  and  it  seems  to  me that  there  is  nothing  invidious  or  unjust  in  the  provision  that  the  ad  hoc increment  payable  under  the  agreement  will  also  benefit  temporary workmen  provided  they  had  completed  one  year's  continuous  service  on 1st  April,  1964.  There  can  be  no  question  of  earning  an  increment  in  the normal  way  or  as  an  ad  hoc  increase  in  salary  unless  the  workman  has served  the  management  for  a  year  which  is  the  normal  period  for  earn- ing  an  increment.
14. I  am  therefore  satisfied  that  the  agreement  which  is  before  me  pro- vides  adequate  relief  to  workmen  drawing  salaries  upto  Rs.  650/-  p.m. and  since  the  majority  of  the  workmen  affected  by  it  are  party  to  the agreement  and  wish  it  to  be  made  effective.  I  make  an  award  in  terms of  the  agreement  and  submit  it  to  the  Government.
15. In  the  circumstances  of  the  case  I  make  no  order  as  to  costs.
Sd./-  G.  D.  KHOSLA, The  1st  February,  5 965.
Presiding  Officer.
BEFORE  THE  NATIONAL  TRIBUNAL,  NEW  DELHI (iRef.  No.  NIT-1  of  1964) In  the  matter  of  the  industrial  dispute  before  the  National  Tribunal between  Air-India  and  the  workmen  as  represented  by  Air  Corpora- tions  Employees  Union,  Bombay.
May  it  please  your  Lordship:
The  parties  named  above  respectfully  submit  as  follows:—• By  Staff  Notice  No.  15/64-65,  dated  June,  1,  1964,  the  Management  of Air-India  announced  the  grant  of  Interim  Relief  on  the  scale  mentioned in  Appendix  A  and  the  said  Relief  is  being  paid  to  the  workmen  draw- ing  a  basic  pay  upto  Rs.  650/-  per  month  covered  by  the  above  reference with  retrospective  effect  from  1st  January,  1964.
2.  In  view  of  the  representation  made  to  the  Management  by  the  Air Corporations  Employees  Union,  which  is  a  party  representing  workmen in  the  above  said  dispute,  an  agreement  has  been  reached  between  the Management  of  Air-India  and  the  Air  Corporations  Employees'  Union that  one  ad  hoc  increment  should  be  granted  to  the  workmen  represent- ed  by  the  said  Union,  on  the  following  conditions:—
 
(i)  Subject  to  what  is  stated  herein  below,  one  ad  hoc  increment  In the  existing  scale  of  pay  would  be  granted  with  effect  from  1st  April,

442  THE GAZETTE OF INDIA EXTRAORDINARY  [PAHT II—
lljt54  to  those  workmen  whose  basic  pay-scale  docs  not  exceed  Rs.  650/- per  month.
(ii)  The  said  ad  hoc  increment  would  be  added  to  the  basic  pay  as  on 1st  April,  1964  in  the  existing  grade  of  those  workmen  who  are  in  the permanent  service  of  the  Corporation  on  the  said  date,  at  the  rate  at which  his  next  immediate  increment  may  be  due,  but  where  no  such  in- crement  is  due  by  reason  of  the  fact  that  a  workman  has  reached  the maximum  of  his  pay-scale,  the  said  increment  shall  be  paid  to  him  as though  it  were  a  'secondary  increment'  due  within  the  meaning  of  Re- gulation  15B  of  the  Air-India  Employees'  Service  Regulations.
(iii)  The  ad  I'.oc increment  will  also  be  payable  to  temporary  work- men  with  effect  from  1st  April,  1964  provided  they  had  completed  one year's  continuous  service  on  that  date.  In  the  case  of  temporary  work- men  or  probationers  who  had  not  completed  one  year's  service  but  had been  in  continuous  service  on  1st  January,  1964,  the  ad  hoc  incrcament will  be.payable  to  them  with  effect  from  the  date  of  confirmation  or  on the  completion  of  one  year's  service  after  1st  April,  1964  whichever  is earlier.
(iv)  In  respect  of  the  workmen  drawing  a  basic  pay  of  Rs.  101—120 as  on  1st  April,  1964  the  interim  relief  will  be  Rs.  25/-  on  and  from  1st April,  1964  instead  of  Rs.  20 + Rs.  10  special  allowance  sanctioned  under Staff  Notice  No.  15/64-65,  dated  1st  June,  1964.
(v)  It  is  further  agreed  that  for  the  purpose  of  fixation  of  pay,  if  any, on  the  basis  of  the  award  to  be  made  by  the  Honourable  Tribunal,  the existing  pay  of  the  employees  will  be  taken  as  the  pay  which  they  would have  drawn  but  for  this  agreement,  i.e.,  without  the  addition  of the  tti  hoc  increment.
(vi)  Any  payment  made  as  an  ad  hoc  increment  with  accretion  of clearness  allowance  thereto  would  be  set  off  or  adjusted  against  any monetary  benefit-  which  may  be  payable  under  the  Award  of  the  Honour- able  Tribunal  or  recovered  in  any  other  manner  if  no  such  monetary benefits  are  p.nyable  under  the  Honourable  Tribunal's  Award.
3.  It  is  distinctly  understood  between  the  parties  that  the  said  al  hoc increment  as  above,  shall  be  deemed  to  be  an  increase  in  Interim  Re- lief  in  settlement  of  the  demand  made  by  the  Air  Corporations  Em- ployees'  Union,  under  item  No.  57 of  paragraph  1 of  the  Schedule  append- ed  to  the  Government  of  India,  Ministry  of  Labour  and  Employment's Order,  dated  25th  July,  1964, and  the  aforesaid  demand  of  the  said  Union of  Interim  Relief  shall  no  longer  survive.
4,  The  parties  pray  for  the  orders  of  the  Honourable  Tribunal  on  this aDplication,  which  may  be  passed  as  an  Award  on  the  dispute  on  item 57  of  the  Schedule.
For  &  on  behalf  of  Air-India  Corporation.
(Sd.)/-  A.  S.  BANAVALIKAR,
Personnel  Manager. For  &  on  behalf  of  Air  Corporations  Employees'  Union.
(Sd.)/-  G.  CLEMENT,
Regional  Secretary.
Witness: 1.  Sd./- 2.  Sd./-
Dated:  Bombay,  the  SOth December,  1964.

SEC.  3(ii)]  THE  GAZETTE  OF  INDIA  EXTRAORDINARY  443
Appendix  'A'
Scale  of  Interim  Relief  payable  under  Staff  Notice  No.  15/64-65,  dated 1st  June,  1964.
Quantum  of
interim relief
Basic pay
Rs.
Rs.
1580
5 0—
20  +  10 5 1 — 1 20
1 2 1 — 2 50
25 2 5 1 — 3 50  . . . ..
20 351—650
15
NOTE  :—The  interim  relief  payable  to  employees  in  the  pay  slab  of  Rs.  51—120  will  be Ra. 20/- plus  a  Special  Allowance  of  Ks.  10/- .  This  Special  Allowance  will  be  admissible  with effect  from  1-1-64 provided  the  employee  has  completed  one year's  service  on  that  date. Those  in  service  on  1-1-64  and  huve  not  completed  one  year's  service  will  be  eligible for  this  allowance  with  effect  from  the  date  of completion  of  one year  of service.  It  will* not  be  payable  to  those  who  entered  service  subsequent  to  1-1-1964.
[No.  17/2/64/LRIV.]
O.  P.  TALWAR,  Under  Secy.
Appendix  II
BEFORE  THE  NATIONAL  INDUSTRIAL  TRIBUNAL,  NEW  DELHI
(Ref  No.  NIT-1  of  1964)
In  the  matter  of  the  Industrial  disputes  before  the  National  Industrial
Tribunal  between  Air-India  and  workmen  as  represented  by  the
Indian  Pilots'  Guild,  Bombay.
May  it  please  your  Lordship:
The  Parties  named  above  respectfully  submit  as  follows:
In  the  agreement  dated  22nd  April  1960,  reached  with  the  Indian Pilots'  Guild  (Party  No.  4)  a  provision  was  made  regarding  alternative employment  for  medically  unfit  Pilots,  as  indicated  in  Appendix  'A'.
2.  In  Section  III  of  their  Memorandum  No.  IPG/GM/M384,  dated  20/ 29  April  1964, for  revision  of  service  conditions,  the  Indian  Pilots'  Guild made  a  demand  relating  to  alternative  employment  of  medically  unfit Pilots.  As  a  result  of  the  negotiations  held  by  the  Management  with Party  No. 4 on  the  said  demand,  an  Agreement  in  full  and  filial  settlement of  the  said  demand  has  been  reached  as  set  out  hereunder:
(1)  All  Pilots  who  are  found  medically  unfit  for  flying  duties  may  be provided  suitable  ground  jobs  in  the  Corporation  until  they  attain  the superannuation  age,  their  consolidated  salary  being  fixed  at  not  less  than 75  per  cent  of  their  last  drawn  Basic  Pay.  Such  Pilots  shall  have  oppor- tunities  for  progress  and/or  for  advancement  in  their  ground  jobs  equal to  those  of  other  employees  of  the  Corporation.
(2)  Alternatively,  such  Pilots  can  opt,  subject  to  the  conditions  men- tioned  below,  for  an  annuity  payable  at fiO per  cent  of  their  last  drawn Basic  Pay  until  they  attam  the  age  of  55.
(a)  No  annuity  will  be  admissible  if  the  total  service  of  the  Pilot in  the  Corporation  immediately  prior  to  being  declared  medi- cally  unfit  does  not  exceed  five  years.

444  THE  GAZETTE OF INDIA EXTRAORDINARY  [PART II—
(b)  The  annuity  shall  be  payable  until  he  attains  the  age  of  55  or the  date  of  death,  whichever  is  earlier.
(c)  The  annuity,  will  be  paid  monthly  on  normal  salary  disburse- ment  day.
(d)  The  payment  of  annuity  or  the  appointment  to  a  ground  job will  commence  from  the  date  of  disablement  due  to  personal injury,  illness,  disease  or  disability  of  the  Pilot  which  pre- vents  him  from  attending  to  his  occupation  as  a  Pilot  as  de- clared  by  the  Medical  Board  and  as  such  taken  off  his  flying duties  by  the  Medical  Board  but  only  after  he  has  exhausted all  his  casual  leave,  sick  leave,  privilege  leave  and  special  sick leave  standing  to  his  credit.
(3)  Notwithstanding  the  provisions  of  Clauses  (1)  and  (2)  above,  a Pilot  will  not  be  entitled  to  the  benefits  contained  therein  if  he  is  declared medically  unfit  for  flying  duties  as  a  direct  or  indirect  result  of:
(a)  Intentional  self-injury, (b)  Attempted  suicide, (c)  Provoked  assault, (d)  Venereal  disease,  or (e)  Chronic  alcoholism  or  habitual  taking  of  narcotic  drugs.
(4)  A  Pilot,  after  being  granted  benefits  under  Clause  (1)  or  (2)  of this  Agreement,  in  the  event  of  regaining  his  medical  fitness  as  certified by  the  Medical  Board,  shall  re-offer  his  service  as  a  Pilot  to  the  Corpora- tion  who  will  then  reinstate  him  in  the  grade  and  seniority  held  by  him prior  to  his  disablement.  The  payment  of  annuity  to  him  will  cease from  the  date  he  is  so  re-employed  by  the  Corporation.  Similarly,  a medically  unfit  Pilot  who  becomes  medically  fit  again  will  not  be  entitled to  the  annuity  if  he  accepts  a  flying  job  outside  the  Corporation.
(5)  It  is  further  distinctly  understood  between  the  Parties  that  this Agreement  is  in  full  and  final  settlement  of  the  demand  made  by  the Indian  Pilots'  Guild  (Party  No. 4)  under  Item  46  of  paragraph  1 of  the Schedule  appended  to  the  Government  of  India,  Ministry  of  Labour  and Employment  Order  No.  S.O.  2561, dated  25th  Julv  1964,  and  the  aforesaid demand  of  the  said  Guild  for  Retirement  Benefits/Alternative  Employ- ment  for  medically  unfit  flight  crew  shall  no  longer  survive,
3.  The  Parties  pray  for  the  orders  of  the  Hon'ble  Tribunal  on  this application  which  may  be  passed  as  an  Award  on  this  dispute  under  Item 46  of  the  Schedule.
For  and  on  behalf  of  Air-India  Corporation,
(Sd.)  A.  S.  BANAVALIKAB,
Personnel  Manager.
For  and  on  behalf  of  Indian  Pilots'  Guild,
(Sd.)  Capt.  NARENDRA,
General  Secretary.
Witness:
(1)  (Sd.)  V.  D.  Moorthi,  Ops.,  Air-India. (2)  (Sd.)  P.  M.  Thakur,  Persl.  Air-India.
Dated: Bombay,  the  24th  May  1965.

SBC.  a(il)]  THE  GAZETTE  OF  INDIA  EXTRAORDINARY  445
Appendix  HI
BEFORE  THE  NATIONAL  INDUSTRIAL  TRIBUNAL,  NEW.  DELHI
(Ref:  No.  NIT-1  of  1964)
In  the  matter  of  the  Industrial  disputes  before  the  National  Industrial
Tribunal  between  Air-India  and  workmen  as  represented  by  the
Indian  Flight  Engineers'  Association,  Bombay.
May  it  please  your  Lordship:
The  parties  named  above  respectfully  submit  as  follows:
In  the  Agreement  dated  12th  July  1960,  reached  with  the  Indian Flight  Engineers'  Association  (Party  No.  7)  a  provision  was  made regarding  alternative  employment  for  medically  unfit  Flight  Engineers, as  indicated  in  Appendix  'A'.
2.  In  Section  IV  of  their  memorandum  contained  in  their  letter  No. IFEA/AI/64154,  dated  6th  April  1964,  for  revision  of  service  conditions, the  Indian  Flight  Engineers'  Association  made  a  demand  relating  to alternative  employment  of  medically  unfit  Flight  Engineers.  As  a  result of  the  negotiations  held  by  the  Management  with  Party  No.  7 on  the  said demand,  an  Agreement  in  full  and  final  settlement  of  the  said  demand  has been  reached  as  set  out  hereunder:
(1)  All  Flight  Engineers  who  are  found  medically  unfit  for  flying duties  may  be  provided  with  suitable  ground  jobs  in  the  Corporation  until they  attain  the  superannuation  age,  their  consolidated  salary  being  fixed at  not  less  than  75  per  cent  of  their  last  drawn  Basic  Pay.  Such  Flight Engineers  shall  have  opportunities  for  progress  and/or  lor  advancement In  their  ground  jobs  equal  to  those  of  other  employees  of  the  Corporation.
(2)  Alternatively,  such  Flight  Engineers  can  opt,  subject  to  the  con- ditions  mentioned  below,  for  an  annuity  payable  at  60 per  cent  of  their last  drawn  Basic  Pay  until  they  attain  the  age  of  55.
(a)  No  annuity  will  be  admissible  if  the  total  service  of  the  Flight Engineer  in  the  Corporation  immediately  prior  to  being  de- clared  medically  unfit  does  not  exceed  five  years.
(b)  The  annuity  shall  be  payable  until  he  attains  the  age  of  55  or the  date  of  death,  whichever  is  earlier.
(b)  The  annuity  will  be  paid  monthly  on  normal  salary  disburse- ment  day.
(d)  The  payment  of  annuity  or  the  appointment  to  a  ground  job will  commence  from  the  date  of  disablement  due  to  personal injury,  illness,  disease  or  disability  of  the  Flight  Engineer which  prevents  him  from  attending  to  his  occupation  as  a Flight  Engineer  as  declared  by  the  Medical  Board  and  as  such taken  off  his  flying  duties  by  the  Medical  Board  but  only  after he  has  exhausted  all  his  casual  leave,  sick  leave,  privilege leave  and  special  sick  leave  standing  to  his  credit.
(3)  Notwithstanding  the  provisions  of  Clauses  (1)  and  (2)  above,  a Flight  Engineer  will  not  be  entitled  to  the  benefits  contained  therein  if he  is  declared  medically  unfit  for  flying  duties  as  a  direct  or  indirect result  of:
 
(a)  International  self-injury,

446  THE GAZETTE  OF INDIA EXTRAORDINARY  [FAHT II—-
(b)  Attempted  suicide,
(c)  Provoked  assault,
(d)  Venereal  disease,  or
(e)  Chronic  alcoholism  or  habitual  taking  of  narcotic  drugs.
(4)  A  Flight  Engineer,  after  being  granted  benefits  under  Clause  (1) or  (2)  of  this  Agreement,  in  the  event  of  regaining  his  medical  fitness  as certineS  by  the* Medical  Board,  shall  re-offer  his  services  as  a  Flight Engineer  to  the  Corporation  who  will  then  reinstate  him  in  the  grade and  seniority  held  by  him  prior  to  his  disablement.  The  payment  of annuity  to  him  will  cease  from  the  date  he  is  so  re-employed  by  the  Cor- poration.  Similarly,  a  medically  unfit  Flight  Engineer  who  becomes medically  fit  again  will  not  be  entitled  to  the  annuity  if  he  accepts  a flying  job  outside  the  Corporation.
(5)  It  is  further  distinctly  understood  between  the  Parties  that  this Agreement  is  in  full  and  final  settlement  of  the  demand  made  by  the Indian  Flight  Engineers'  Association  (Party  No.  7)  under  Item  46  of paragraph  1  of  the  Schedule  appended  to  the  Government  of  India, Ministry  of  Labour  and  Employment's  Order  No.  S.p.  2561, dated  25th July  1964,  and  the  aforesaid  demand  of  the  said  Association  for  Retire- ment  Benefits/Alternative  Employment  for  medically  unfit  Flight  Crew shall  no  longer  survive.
3.  The  Parties  pray  for  the  orders  of  the  Honourable  Tribunal  on  this application,  which  may  be  passed  as  an  Award  on  the  dispute  under Item  46  of  the  Schedule..
For  and  on  behalf  of  Air-India  Corporation
(Sd.)  A.  S.  BANAVALIKAR,
Personnel  'Manager.
For  and  on  behalf  of  Indian  Flight  Engineers'  Association,
(Sd.)  A.  K.  CHAKRAVARTY,
General  Secretary,.
Witness:
(1)  (Sd.)  V.  D.  Moorthi,  OPS,  Air-India. (2)  (Sd.)  S.  V.  Lalla,  Flight  Engineer.
Dated: Bombay,  the  29th  May  1965.
Appendix  'A*
Provisions  regarding  alternative  employment  for  medically  unfit,  Flight
Engineers  as  contained  in  the  Agreement,  dated  12th  July  1960
reached  with  the  Indian  Flight  Engineers'  Association.
"Whilst  the  Corporation  cannot  guarantee  alternative  employment  to medically  unfit  Flight  Engineers,  every  effort  will  be  made  to  accommo- date  such  Flight  Engineers  in  alternative  posts  on  ground  subject  to vacancies  being  availabe,  length  of  service,  suitability  and  service  record of  the  Flight  Engineers  concerned.
 
The  selected  candidate  will  be  given  training  in  the  ground  post before  arriving  at  any  assessment  regarding  his  suitability."

SEC.  3(ii)]  THE GAZETTE  OF INDIA  EXTRAORDINARY  447
Appendix  IV
BEFORE  THE NATIONAL  INDUSTRIAL  TRIBUNAL,  NEW  DELHI
(Ref.  No. NIT-1 of 1964)
In  the  mater  of  the  Industrial  dispute  before  the  National  Industrial
Tribunal  between  Air-India  and  the  workmen  as  represented  by  the
Indian  Pilots'  GuilJL (Party  No.  4).
May  it  please  your  Lordship:
The  parties  named  above  respectfully  submit  as  follows: —
In  their  Memorandum  No.  IPG/GM/N284,  dated  20/29Lh  April,  1964, the  Indian  Pilots'  Guild  (Party  No. 4)  made  a  number  of  demands  relat- ing  to  wages  and  other  service  conditions,  out  of  which  the  items  speci- fied  below  have  been  referred  to  this  Hon'ble  Tribunal  for  adjudication as per  Schedule  appended  to  the  Government  of  India,  Ministry  of  Labour and  Employment  order  No.  S.O.  2561, dated  25th  July  1964.
Without  prejudice  to  the  submissions  of  the  respective  parties  to  this Hon'ble  Tribunal  on  the  said  items,  the  representatives  of  the  Manage- ment  and  the  Guild  (Party  No.  4)  have,  in  the  meantime,  carried  on negotiations  on  all  the  demands,  including  the  items  referred  to  herein, and  as  a  result  of  the  negotiations  so  held  between  the  Management  and Party  No.  4,  an  Agreement,  in  full  and  final  settlement  of  the  said demands,  including  the  items  specified  in  the  Schedule  referred  to  above, has  been  reached.
The  Agreement  so  reached  between  the  Management  and  party  No. 4 on  the  items  before  this  Hon'ble  Tribunal,  are  set  out  hereunder: —
Agreement  on  items  in  the  Schedule  to  Order  No,  S.O.  2561  dated 25-7-1964  issued  by  the  Ministry  of  Labour  and  Employment,  Govern- ment  of  India.
Item  1-—Scales  and  grades of  pay
(i)  Senior  Captain  (Commander)  Rs.  1,500—100—2,000.
(ii)  Captain  (Co-pilot/First  Officer)  Rs.  1,050—100—1,650.
Item  2—Fixation  in  the  new  pay  scales
(a)  The  basic  pay  of  a  pilot  shall  be  fixed  in  the  scales  referred  to above,  with  effect  from  1-4-1964,  after  adding  one  increment to his basic  pay  as  on that  day.
(b)  In  the  case  of  a  pilot  who  has  reached  the  maximum  in  the existing  scale  of  pay,  the  next  increment  in  the  revised  scale will  become  due  on  completion  of  one  year's  service  from  the date  of  fixation.
(c)  In  the  case  of  a pilot  who  had  not  reached  the  maximum  of  the existing  scale  of  pay  prior  to  1-4-1964,  the  date  of  his  next  in- crement  in  the  revised  scale  of  pay  will  be  on  the  due  date  of increment  in  the  existing  scale  of  pay.
 
(d)  When  a  co-pilot  is  promoted  as  Commander,  his  basic  pay  in that  scale  will  normally  be  fixed  at  the  next  higher  stage  with reference  to  his  pay  in  the  co-pilot's  scale.  If  the  stage  so

448  THE GAZETTE OP  INDIA EXTRAORDINARY  [PART  I t-
arrived  at  exceeds  the  pay  of  the  junior-most  Commander  (i.e. Commander  drawing  the  lowest  salary),  then  his  basic  pay will  be  fixed  at  the  same  figure  as  the  pay  of  the  junior-most Commander.
Illustration:—If  a  Co-pilot  is  drawing  a  basic  pay  of  Rs.  1650, his  pay on  promotion  will  be  fixed  at  Rs.  1,700.  But  if  the  junior-most  Comman- der  is  drawing  a  basic  pay  of  Rs.  1,600,  his  pay  on  promotion  will  be restricted  to  Rs.  1,600.
Item  4—Dearness  Allowance:
The  dearness  allowance  shall  be  payable  according  to  the  following scale: —
Basic pay  plus  efficiency  bonus  and  command
Deamess  Allowance
RfL
pay  (where  applicable)  on  which  D.A. ia  payable. Rs.
2 33
115°
1250
34a
353
135°
26a
145°
IJJ°
2 73
1650
2 83
3 93
175°
1E00
297
1850  and  above
300
Item  5—House  Rent  Allowance/conditions  governing  allotment  of
accommodation:
Dropped.
Item  15—Jet  Allowance:
Pilots  operating  Boeing  707  type  of  aircraft  shall  be  eligible  for  the following  additional  allowance  effective  1st  April  1964: —
Commanders
R".  ijOOO  per  month
Firat  Officers
Ra.  600  per  month
Item  16—Overseas  Operation  Allowance:
Senior  Captain
R".  400  per  month
Captain
Ra.  275  per  month
Item  18—Excess  Flying  Pay:
Flying  duty  in  excess  of  50  hours,  in  a  month  will,  with  effect  from 1st  January  1965, be  paid  for  at  the  following  rates: —
Commanders
Rt.  50/-  per  flying  hour
Flrat  Officer*
 
R".  35/-  per  flying  hour

S"C.  8Cii)]  THE  GAZETTE  OF  INDIA  EXTRAORDINARY  449
Item  19—Efficiency  Bonus:
It  is  agreed  that  an  efficiency  bonus  of  Rs.  200 per  month  will  be  paid to  Senior  Captains  and  Captains  from  1st  April  1964, subject  to  the  condi- tion  that  only  half  of  this  efficiency  bonus  will  be  liable  to  be  withheld in  accordance  with  the  Schedule  of  Pay  Scales  and  Allowances  under Regulation  13  of  Air-India  Employees'  Service  Regulations.
Item  21—Provident  Fund:
The  benefits  of  provident  fund  will  be  as  per  Award  of  the  .National Industrial  Tribunal.
Item  22—Flight  Duty  Time,  Flight  Time  and  Rest  Periods  for  Pilots:
(a)  Definitions:
(i)  Flight  duty  time:  The  total  time  commencing  from  the  time  of reporting  at  the  airport  and  ending  with  the  termination  of  a  flight  or  a series  of  flights  (chocks  on  plus  15 minutes),  unless  broken  by  a  period of  rest  as  stipulated  in  para  e(ii)  hereunder: —
(ii)  Flight  Time:  The  total  time  from  the  moment  an  aircraft  first taxies  out  under  its  own  power  for  the  purpose  of  take-off  to  the  moment it  comes  to  rest  at  the  end  of  the  flight.  Flight  time  is  synonymous  with "Block  to  Block  Time"  or'"Chock  to  Chock  Time".
(iii)  Total  hours  of  djxty:  The  period  during  which  a  pilot  is  perform- ing  any  function  assigned  by  the  Corporation.
(iv)  Rest  Period:  The  period  during  which  a  pilot  is  not  assigned  any function  by  the  Corporation.
(v)  Clear  Rest:  The  period  commencing  from  the  time  a  room  is allotted  for  occupation  at  the  hotel  upto  the  call  time,  which  would  nor- mally  be  one  hour  before  pick-up  time.
(vi)  Layover:  The  period  spent  between  "chocks  on"  and  "chocks  off" at  an  outstation.
(vii)  Standby  Crew:  A  pilot  who  is  required  to  standby  during  a specified  period,  fully  prepared  and  ready  to  undertake  a  flight  when called  upon.
(viii)  Crew  Base.—A  place  where  a  pilot  is  posted  either  on  a  tem- porary  or  permanent  basis.  The  word  "Base"  used  signifies  "Crew  Base".
(ix)  Crew  Change  Station.*—Where  a  layover  or  scheduled  change  of crew  takes  place.
(b)  Limitations:
Flight  Times:  & hours  (scheduled) Flight  Duty  Time:  12  hours
(i;  Flight  duty  time  beyond  12  hours  can  be  increased  en  route  by 2  hours  at  the  discretion  of  the  Commander,  provided  he  is  fully  satisfied that  such  action  is  not  likely  to  jeopardise  the  safety  of  the  operation.
(ii)  Once  the  flight  has  commenced,  the  flight  duty  time  will  be  the only  governing  factor  even  though  the  flight  time  may  exceed  due  to adverse  winds,  diversions,  etc.

4 5O  THE  GAZETTE  OF  INDIA  EXTRAORDINARY  [PAST  II—
NOTE:
(i)  For  any  charter  flight  a  realistic  schedule  will  be  made  calculated on  headwind  factor.  Such  schedule  will  not  be  less  than  the  time shown  in  the  time-table  of  other  airlines  operating  the  route  with  simi- lar  aircraft.
(ii)  In  case  of  delayed  departure  on  flights,  the  pilots  of  the  flights and  standby  pilots  will  bo  informed  at  about  pick-up  time/standby  time of  such  delay  to  enable  them  to  utilise  the  delay  towards  their  rest.  If the  Pilots  concerned  are  not  so  informed  at  about  the  pick-up  time,  the flight  duty  time  of  the  said  pilot  will  be  deemed  to  have  commenced from  the  normal  reporting  time  of  the  flight.
(c)  Night  Flying:
No  pilot  will  be  made  to  fly  for  more  than  two  consecutive  nights  (in local  time).
(d)  Periodical  Flight  Time  Limitations:
(0  7  consecutive days      .    .     .    .    .    .     ..        35 hours
    15  consecutive days     .    .    .     .    .    .    ..         50 hours
    30  consecutive days     .    .    .     .    .    .     ..        80 hours
    One  Calendar year                                                     800 hours

(it)  Total  hours of  duty :
30  consecutive  days  . . . . . . ..  aoo  hours
N O TE  :  T he  limitation  of  200  hour*  per  calendar  month  shall  take  into  account  the  t i me spent  in  travelling  as  a  passenger  or  purpose  of  positioning.
(e)  Rest  Periods:
())  Rest  period  en  route.—If  a  flight  cannot  be  concluded  within  the agreed  flight  duty  time  limitations,  the  commander  will  declare  a  lay- over  at  an  en  route  station  to  ensure  8  hours  of  "clear  rest",  before  con- tinuing  the  flight  to  the  destination  or  the  designated  crew  change Station.
(ii)  Rest  Period  at  crew  change  and  terminal  station  other  than
base: —
Flight  Duty  time
Minimum  rest period  for delayed  flights.
Minimum'"rest period  for normal  flight
(Clear  Rest)
(Clear  Rest)
10  hours
8  hours 6  hours  or  lees  . . ..
10  hours
12  hours
Above  6  hours  and  upto  11  hours
12  hours
16  hours
Above  11  hours  and  unto  12  hours  .
NOTE.—(1)  In  case  of  flight  duty  time  exceeding  12 hours,  rest  period will  be  20  hours  clear  rest.
(2)  In  the  case  of  delayed  flights,  where  the  re3t  period  availed  of  is less  than  the  minimum  for  normal  flights  laid  down  above,  the  layover allowance  and  the  special  travelling  allowance  will  be  paid  as  if  the minimum  normal  rest  period  shown  was  availed  of.

SEC.  3(11)]  THE  GAZETTE  OF  INDIA  EXTRAORDINARY  45r
(3)  In  the  case  of  flights  over  the  Atlantic,  which  are  rerouted,  the layover  period  will  be  counted  from  'chocks  on'  at  the  first  point  of  call on  the  continent  of  North  America.
(iii)  (a)  If  8 hours  of  "clear  rest"  in  accordance  with  para  e (i)  above is  availed  of  en  route,  these  8  hours  shall  be  deducted  from  the  total flight  duty  time  calculated  from  the  time  of  reporting  at  the  first  point of  duty  to  "chocks  on"  at  destination,  and  the  rest  period  at  crew  change station/destination  shall  be  in  accordance  with  para  e(ii)  above.
(b)  If,  however,  as  a  result  of  engineering  or  any  other  reasons,  the clear  rest  period  at  an  en  route  station  is  20  hours  or  more,  the  night will  be  deemed  to  have  commenced  afresh  from  that  station  for  the  pur- pose  of  calculating  flight  duty  time  and  flight  time.
(f)  Rest/Time  off  period  ai  base
(i)  The  minimum  rest/time  off  period,  after  return  from  a  flight,  will be  equal  to  half  the  number  of  hours  spent  away  from  the  base  on  that flight  plus  24 hours  subject  to  a minimum  of  one  calendar  day  or  36 hours, whichever  is  more.  Where  the  rest  period/time  off  due  at  base  is  one calendar  day  or  36 hours  whichever  is  more  and  where  such  flights  arrive (chocks  on)  at  base  between  2344  and  2359  hours  (local  time),  the  rest period/time  off  at  base  will  be  restricted  to  36  hours  only.
During  the  minimum  rest/time  off  period,  a  pilot  cannot  be  called upon  to  perform  any  duty  whatsoever  and  there  will  be  no  restriction; on  his  movements.
But,  in  case  where  exigencies  of  operation  demand,  the  rest/time  oft period  at  base  may  be  reduced  to  24  hours  provided  that  the  pilot  is  so- informed  at  the  time  of  debriefing.  However,  in  case  of  a  pilot  return- ing  from  a  long  flight  involving  more  than  3  days'  absence  from  base, the  rest/time  off  period  can  be  reduced  to  the  said  24  hours  under  the said  circumstances  provided  the  duration  of  his  subsequent  flight  so scheduled  will  not  exceed  3  days  from  base.  The  unexpired  portion  of the  rest/time  off  period  shall  be  added  to  the  next  rest/time  off  period at  base.
(ii)  Further,  in  case  of  following  flights,  a  minimum  of  12 hours  clear rest  will  be  given  to  a  Pilot: —
(a)  Domestic  (within  India)  flights  involving  6  hours  or  less  flight
time;
(b)  A  sector  or  sectors  of  international  flights  within  India
involving  6  hours  or  less  flight  time;  and
(c)  Any  other  sector  flights  which  involve  less  than  6  hours  of
flight  duty  time  and  less  than  24  hours  away  from  base.
A  pilot  will  not  be  scheduled  to  do  more  than  two  such  consecutive flights,  after  which  the  normal  stipulated  rest  period  at  base  will  apply.
(iii)  A  pilot  who  is  scheduled  to  undertake  a  flight  or  Is  "Standby" will  not  be  called  upon  to  undertake  any  other  duties  12  hours  prior  to the  "reporting  time"  of  the  flight.
(iv)  On  all  postings,  a  temporary  or  permanent,  and  on  return  from such  postings,  a  Pilot  will  be  given  a  minimum  rest  period  of  24  hours from  the  time  of  his  arrival;  however,  on  assignments  for  local  flight training,  the  minimum  rest  period  will  be  14  hours  after  arrival.

4 52  THE  UAZKiTE  OF  INDIA  EXTRAORDINARY  [ P +"  H—
(g)  Rest  Facilities on  Aircraft  for  relief  Crew. In  the  event  of  a  Pilot  at  an  outstation  being  unable  to  undertake  a flight  and  a  relief  being  required  to  proceed  to  that  station  in  order  to operate  that  flight  immediately  on  arrival,  facilities  for  horizontal  rest or  first  class  seat  will  be  provided  to  the  relief  pilot.
(h)  Transhipment: Crew  scheduling  will  be  planned  in  such  a  manner  that  transhipment of  crew  from  one  station  to  another  will  be  avoided  as  far  as  possible. Transhipment  by  other  carriers,  when  necessary,  will  be  as  far  as possi- ble,  by  I.A.T.A.  member  carrier  using  multi-engined  modern  aircraft. This  period  will  be  counted  towards  total  hours  of  duty. Hem  23—Leave  facilities:
As  at  present,  which  are  contained  in  the  Service  Regulations.
Item  24—Standard  Force:
It  is  agreed  that  the  standard  force  of  Administrative  posts  in  the Operations  Department  of  the  Corporation  and  of  pilots  in  the  rank  of Commanders  and  Co-pilots  shall  be  furnished  to  the  Guild  once  in  each financial year.  The  Guild  will  be  consulted  in  this  matter  before  such figures  are  furnished.
Item  25—Compensation  for  death  or  injury:
As  at  present,  which  are  contained  in  the  relevant  Establishment Orders  read  with  Regulation  31 of  Service  Regulations.
Item  26—Compensation  for  loss/or  damages to  baggage of  pilots:
It  is  agreed  that  pilots  will  be  compensated  upto  a  maximum  of Rs-  1,000/-  for  loss  of  or  damage  to  their  baggage.  Such  claims  will  be settled  within  a period  of  three  months.  In  case  the loss  of  such  baggage is  discovered  at  an  outstation,  the  pilot  will  be  advanced  £20/-  to  buy the  requisite  necessities.  The  disposal  of  the  articles  so bought  shall  be in  accordance  with  the  existing  procedure.
Item  27—Passage  Regulations:
It  is  agreed  that  passage regulations  will  be  as  decided  by  the  Nation- al  Industrial  Tribunal.
Item  2ft—Accommodation  and  layover  allowance at  layover stations:
(a)  It  is  agreed  that  outside  India  the  accommodation  will  be  on  bed and  breakfast  basis  and  the  layover  allowance  outside  India  applicable to  pilots  for  a  layover  of  over  16  hours  and  upto  24  hours  shall,  with effect  from  1st  March,  1965, be  the  equivalent  of  the  following  amounts in  local currency  in  all  layover  stations  except  New York  and Moscow: —
C o m m a n d e rs  . . .. Co-Pilots
r  A.n-o ".  •.  £3-10-0 The  rates  of  layover  allowance  applicable  to  New  York  and  Moscow flhall be  as  follows: —
Commanders  Co-Pilots
$13-00  * New York  $14-00 Moscow  N.Rbs.  1200  N.  Rbs. H OT
J (b)  Rates  for  fractional  periods  of  4 to  8 hours,  8 to  16 hours  and  16 to  24 hqurs  will  be 60 per  cent,  80 per  cent  and  100 per  cent  respectively of  the  applicable  rates.

Sue.  3(ii)]  THE  GAZETTE  OF  INDIA  EXTRAORDINARY  453.
(c)  No layover  allowance  will  be  payable  as  at  present  for  a  layovw not  exceeding  4  hours.  However,  where  the  layover  exceeds  24  hours, layover  allowance  at  the  lowest  fractional  rate!  (i.e.,  for  4  hours  to  8 hours)  will  be  payable  even  when  the  period  of  layover  in  excess  of  24 hours  is  less  than  4 hours. Item  30—Medical  benefits/facilities:
It  is  agreed  that  the  present  medical  benefits  to  pilots  will  continue. Further,  the  Management  has  agreed  in  principle  to  evolve  in  cojisulta- tion  with  the  Guild,  at  any  early  date,  a  contributory  scheme,  for  ex- tending  a  prescribed  amount  of  medical  facilities  to  the  family  of  a  pilot. Item  31—Retirement  Age:
It  is  agreed  that  the  retirement  age  of  pilots  will  be  as  per  Award  of the  National  Industrial  Tribunal.
Item  32—Foreign  Allowance:
It  is  agreed  that  the  basic  rate  of  foreign  allowance  admissible  to  a Commander  on  permanent  transfer  to  a  place  outside  India,  Pakistan and  Ceylon  will  be  increased  to  Rs.  1000/- per  month  effective  1st  March 1965. Item  34—Outstation  Allowance;
(a)  It  is  agreed  that  the  daily  outstation  allowance  admissible  on temporary  posting  of  a  pilot  to  a  place  outside  India,  Pakistan  and Ceylon,  will,  with  effect  from  1st  March  1965, be  as  follows:—
Commander  . . . . ..  .  £  5-0-0 Co-Pilot  .
^  4-10-0
This  allowance  will  be  payable  throughout  the  period  of  temporary posting.
(b)  Existing  rates  of  daily  outstation  allowance  for  Moscow  will remain  unchanged.
Item  40—Gratuity;
It  is  agreed  that  gratuity  benefits  will  be  as per  Award  of  the  Nation- al  Industrial  Tribunal. Item  41—-Command  Pay  (Sr.  Captain):
Command  pay  of  Rs.  300/-  per  month  shall  be  payable  to  Senior Captains  with  effect  from  1st  April  1964.
Item  42—Second  Class  Navigator's  Licence  Allowance:
An  allowance  of  Rs.  100/-  per  month  shall  continue  to  be  payable to- pilots  holding  Navigator's  Licences.
Item  43—Radio  Telephone Allowance:
Effective  1st  April  1964 an  allowance  of  Rs.  200/-  shall  be  payable  to pilots  holding  Flight  Radio  Telephone  Operator's  Licences. Item 41 •• Chock Pilot's Allowance:
'  >
An  allowance  of  Rs.  200/-  per  month  shall  be  payable  from  1st  Janu- ary  1965  to  Senior  Captains  who  are  designated  as  Chock  .Pilots. Item  45—Night  Flying  Allowance:
Dropped.
Item  46—Retirement  benefits /alternative  emvlovment  for  medicnlUi
unfit  pilots:

4 54  THE  GAZETTE  OF  INDIA  EXTRAORDINAEY  [PAHT  II—
This  is  a  matter  of  separate  settlement  dated  24th  May,  1965  which has  been  jointly  submitted  to  this  Hon'ble  Tribunal.
Item  47—Travel  on  duty:
A  Pilot  travelling  as  "Staff  on  Duty"  will  be  provided  with  a  definite passenger  seat.
Item  51—Special  Travelling  Allowance:
It"is  agreed  that  the  rates  of  special  travelling  allowance  admissible to  pilots  while  on  flying  duties  for  each  completed  period  of  24  hours spent  away  from  his  permanent/temporary  place  of  posting  shall,  with effect  from  1st  April  1964,  be  as  follows: —
Commanders Co-Pilots
£  2-10-0 £  1-15-0
In  calculating  the  completed  periods  of  24  hours  in  a  calendar  month, the  fraction  of  a  completed  period  will  be  rounded  up  as  follows: —
L e ss  t h ai  12  h o u rs  . . . . . ..  N il 12  h o u rs  or  m o re
,  .  O ne  c o m p l e t ed
p e r i od  of  24  h o u r s.
Item  56—Date  of  implementation:
It  is  agreed  that  except  to  the  extent  provided  under  items  1, 2,  15, 18, 19,  29,  32,  34,  41, 43, 44  and  51, this  agreement  will  have  no  retrospective effect.
Further,  this  Agreement,  which  has  been  reached  in  full  and  final settlement  of  all  the  demands  contained  in  the  Indian  Pilots'  Guild's (Party  No.  4)  Memorandum  No.  IPG/GM/N/284  dated  20th/29th  April, 1964,  'including  the  item  Nos.  1,  2,  4,  5,  15,  16,  18.  19,  21,  22,  23,  24,  25, 26,  27,  29,  30,  31,  32,  34,  40,  41,  42,  43,  44,  45;  46;  47;  51;  56  and  57;  as enumerated  under  Part  I  of  the  Schedule  appended  to  Order  No.  SO/2560 dated  25th  July,  1964,  will  remain  in  force  for  a  period  of  three  years from  the  date  of  publication  nf  toe  Award  to  be  made  by  this  HonHble Tribunal.
The  Parties  pray  for  the  order  of  the  Hon'ble  Tribunal  on  this application,  which  may  be  passed  as  Award  of  the  disputes  under  vari- ous  items  of  the  Schedule  indicated  above.
For  and  on  behalf  of  Air  India  Corporation.
(Sd.)  A.  S.  BANAVALIKAR,
Personnel  Manager.
For  and  on  behalf  of  Indian  Pilots  Guild.
(Sd.)  CAPT.  NARENDRA, General  Secretary.
WITNESS :
<1)  (Sd.)  D.  H.  Dallas,  F/E,  AI.
(2)  (Sd.)  S.  N.  Roy  Chowdhury,  P.O.  (Opf.),  AI.
Vated,  Bombay,  the  26th  July,  1965.

SEC.  S(ii)]  THE  GAZETTE  OF  INDIA  EXTRAORDINARY  455
Appendix  V
BEFORE  THE  NATIONAL  INDUSTRIAL  TRIBUNAL,  NEW  DELHI
In  the  matter  of  a  reference  under  sub-section  (1A)  of  Section  10  0/  the Industrial  Disputes  Act,  1947  (14  0/  1947)
(Reference  No.  NIT-1  of  1964)
PARTIES: Employers  in  relation  to  Messrs  Air  India,  87,  Mahatma  Gandhi  Road, Bombay
and Their  workmen  as  represented  by  All  India  Aircraft  Engineers'  Associa- tion,  Bombay.
PRESENT:
Shri  G.  D.  Khosla,  Presiding  Officer.
Appearances  at  Bombay
For  the  Employers:
Shri  Sohrab  D.  Vim^dalal,  Bar-at.-Law,  with  Shri  S.  K.  Wadia,  Solicitor and  Shri  A.  S.  Banavalikar,  Personnel  Manager.
For  the  Workmen: Shri  P.  D.  Kamorkar  with  Shri  K.  R.  N.  Swami  of  the  All  India  Aircraft Engineers'  Association.
ORDER  NO.  20
There  are  two  applications  before  me  which  raise  a  preliminary  point. The  first  application  has  been  made  jointly  by  Air-India  and  the  All  India Aircraft  Engineers'  Association.  The  Parties  have  jointly  requested  an adjudication  by  the  Tribunal  upon  the  question  whether  Assistant  Superin- tendents  in  the  Engineering  Department  are  "workmen"  within  the  mean- ing  of  the  Industrial  Disputes  Act.  The  second  application  is  made  by  the All  India  Aircraft  Engineers'  Association  and  in  this,  a  similar  prnyer  has been  made  with  regard  to  the  status  of  Assistant  Superintendents  and Deputy  Superintendents.  Since  it  was  necessary  to  decide  the  point  to enable  the  Parties  to  proceed  further  in  the  negotiations  which  have  been undertaken,  I  agreed  to  hear  these  petitions  as  a  preliminary  matter.  The question  for  my  decision  is  whether  Assistant  Superintendents  and  De- puty  Superintendents  in  the  Engineering  Department  of  Air  India  are "workmen".
2.  The  Parties  were  given  an  opportunity  to  produce  oral  and  documen- tary  evidence,  before  Counsel  addressed  the  Court.  Affidavits  were  filed by  both  the  Parties.  The  Union  filed  the  Affidavit  of  Mr.  V.  S.  Bhagat, Assistant  Superintendent  in  the  Maintenance -Division  of  the  Engineering Department  of  the  Corporation  and  the  Management  filed  the  Affidavit,  of Mr.  M.  P.  Kharkar,  Deputy  Superintendent  in  the  Maintenance  Division of  the  Engineering  Department.  Both  the  deponents  were  orally  examin- ed  and  cross-examined  at  considerable  length  with  regard  to  the  nature  of the  duties  which  Assistant  Superintendents  and  Deputy  Superintendents have  to  perform.  Counsel  then  addressed  me  and  referred  to  a  number  of reported  decisions  bearing  upon  the  matter.
 
3.  There  is  no  doubt  at  all  that  both  the  Assistant  Superintendents  and Deputy  Superintendents  are  called  upon  to  do  work  of  a  highly  technical

456  THE GAZETTE OF INDIA  EXTRAORDINARY  [PAHT II—
nature.  Nearly  all  of  them  (one  exception  was  mentioned  during  the course  of  the  evidence)  are  qualified  Aircraft  Engineers,  they  have  had special  training  and  have  gained  experience  in  dealing  with  the  various aspects  of  aircraft  maintenance.  The  personnel  of  the  Maintenance Division  consists  of  the  following  categories:
(a)  Superintendents, (b)  Deputy  Superintendents, (cf)  Assistant  Superintendents,  and (d)  Aircraft  Maintenance  Engineers  of  Grades  I,  II  and  III.
There  Is  no  dispute  that  Aircraft  Maintenance  Engineers  of  all  three grades  are  "workmen"  within  the  meaning  of  the  Industrial  Disputes Act  because  they  have  10  work  with  their  own  hands.  Nor  has  it  been questioned  at  this  stage  that  the  Superintendent  exercises  duties  of  a mainly  supervisory  nature  and,  therefore,  is  not  a  "workman".
4.  The  pay  scale  of  the  Assistant  Superintendents  was  fixed  by  an agreement  entered  into  between  the  Air-India  International  and  the  All India  Aircraft  Engineers'  Association  which  became  effective  on  July  2, 1960.  According  to  the  pay  scale,  the  basic  salary  is  Rs.  1,000—100—1,500 together  with  Dearness  Allowance  rising  from  Rs.  217  for  the  minimum salary  of  the  scale  to  Rs.  267  for  the  maximum.  There  is  in  addition  a car  allowance  of  Rs.  100.  Thus,  the  grade  of  the  Assistant  Superintendent may  be  taken  to  be  Rs.  1317—1867.  The  pay  scale  of  the  Deputy Superintendent  is  Rs.  1200—100—1800  together  with  Dearness  Allowance varying  from'  Rs.  237  to  Rs.  297.  I  understand  that  there  is  also  a  car allowance  of  Rs.  100  paid  to  Deputy  Superintendents.  Thus  the  Deputy Superintendent's  salary  varies  from  Rs.  1537  to  Rs.  2197.
5.  The  present  definition  of  a  workman  according  to  Section  2  of  the Industrial  Disputes  Act  is  as  follows:
" 'Workman'  means  any  person  (including  an  apprentice)  employed in  any  industry  to  do  any  skilled  or  unskilled  manual,  super- visory,  technical  or  clerical  work  for  hire  or  reward,  whether the  terms  of  employment  be  expressed  or  implied,  and  for  the purposes  of  any  proceeding  under  this  Act  in  relation  to  an industrial  dispute,  includes  any  such  persons  who  has  been  dis- missed,  discharged  or  retrenched  in  connection  with,  or  S3  a consequence  of,  that  dispute,  or  whose  dismissal,  discharge  or retrenchment  has  led  to  that  dispute,  but  does  not  include  any such  person—
(i)  who  is  subject  to  the  Army  Act,  1950  (XLVI  of  1950)  or  the Air  Force  Act,  1950  (XLV  of  1950)  or  the  Navy  (Discipline) Act,  1934  (XXXIV  ot  1934);  or
(ii)  who  Is  employed  in  the  police  service  or  as  an  officer  or other  employee  of  a  prison;  or
(iii)  who  is  employed  mainly  in  a  managerial  or  administrative capacity;  or
 
(iv)  who,  being  employed  in  a  supervisory  capacity,  draws  wages exceeding  five  hundred  rupees  per  mensem  or  exercises, either  by  the  nature  of  the  duties  attached  to  the  office  or by  reason  of  the  powers  vested  in  him,  functions  mainly  of  a managerial  nature."

Sfcc.  3(ii)]  THE  GAZETTE  OF  INDIA  EXTRAORDINARY  457
The  definition  was  amended  by  Act  36 of  1956.  The  original  definition  was as  follows: —
" 'workman'  means  any  person  employed  (including  an  apprentice) in  any  industry  to  do any  skilled  or  unskilled,  manual  or  clerical work  for  hire  or  reward  and  includes,  for  the  purpose  of  any proceedings  under  this  Act  in  relation  to  an  industrial  dispute, a  workman  discharged  during  that  dispute  but  does  not  include any  person  employed  in  the  nSval,  military  or  air  service,  of  the Government."  [
It  will  thus  be  seen  that  the  definition  of  the  workman  has  been  consider- ably  extended  and  it  now  includes  a  person  who  works  in  a  supervisory capacity  provided  his  salary  does  not  exceed  Rs.  500  or  who  works  in  a technical  capacity  irrespective' of  the  salary  paid  to  him.  The  contention  of the  Union  is  that  Assistant  Superintendents  and  Deputy  Superintendents, do  technical  work.  Some  part  of  their  duty  is,  no  doubt,  supervisory  but the  supervisory  work  is  un-important  and  ancillary  to  their  main  work which  is  technical,  and  that  being  so,  they  must  be- held  to  be  "workmen" even  though  their  salaries  exceed  Rs.  500  because  they  are  not really  supervisory  personnel.  An  additional  argument  was  raised  on  be- half  of  the  Union  to  the  ollect  that  even  if  these  officials  are  held  not  to be  "workmen",  their  cauye  may  be  taken  up  by  the  Union  because  their terms  of  employment  have  a  close  relationship  with  other  members  of  the Union  who  are  clearly  "workmen".  My  attention  was  drawn  to  the definition  of  an  industrial  dispute  which  extends  beyond  "workmen"  to cover  the  case  of  ''any  person  .
6.  It  is  quite  clear  that  in  deciding  whether  a  certain  individual  is  or is  not  a  "workman",  his  designation  is  not  important.  What  is  important is  the  nature  of  the  duties  which  he  performs.  It  was,  therefore,  argued that  although  an  Assistant  Superintendent  according  to  his  nomenclature may  be  expected  to  superintend  and  supervise,  in  point  of  fact,  he  does far  more,  and  indeed, -the  substantial  part  of  his  duties  is  not  supervisory but  technical.  He  has  to  work  with  his  own  hands  and  he  has  to  perform a  number  of  jobs  which  are  clearly  not  supervisory.  My  attention  was also drawn  to the  fact  that  in  the  agreement—to  which  I have  already  made a  reference—the  Management  conceded  that  Assistant  Superintendents were  "workmen"  because  the  agreement  covered  their  case.  On  the  other hand,  Deputy  Superintendents,  Superintendents  and  high  officials  were  not included  in  this  agreement.
7.  Before  dealing  with  the  actual  nature  of  the  duties  performed,  I may  dispose  of  one  or  two  cases  which  were  cited  in  the  course  of  the arguments  of  Counsel.  There  are  two  cases  relating  to  Doctors.  One  case arose  in  1955  [1955-LLJ-(II-l]  out  of  an  order  of  the  Governor  of  Uttar Pradesh  which  enjoined  that  if  certain  employees  had  not  yet  been  grant- ed  holidays  on  certain  festivals,  the  factory  employing  them  was  to  pay one  day's  additional  wages  in  lieu  of  and  for  each  day's  holiday  not  so allowed.  A  question  arose  whether  the  medical  practitioner  and  com- pounder  employed  by  the  factory  came  within  the  purview  of  this  order. It  was  held  by  the  Allahabad  High  Court  that  a  Doctor  could  not  be  said to  be  a  "workman"  because  his  main  work  was  to  observe  the  patient,  to hear  his  complaints, to  diagnose  the  disease  with  the  experience  and  know- ledge  at  his  command  and  then  to  prescribe  medicine  which  he  considered best  for  the  patient.  Similarly,  a  compounder  was  held  not  to  be  a "workman".  The  Court,  therefore,  quashed  the  order  of  the  Governor  of Uttar  Pradesh  in  sn  far  as  it  related  to  the  doctor  and  compounder.

458  T#E  GAZETTE OF INDIA EXTRAORDINARY  [PART II—
8.  In  1955,  there  was  another  case  [1955-LLJ  (II) -602]  in  which  the status  of  a  doctor  was  considered.  It  was  held  that  the  Assistant  Medical Officer  in  charge  of  a  hospital  attached  to  the  Tea  Estate  was  not  a "workman"  within  the  meaning  of  the  Industrial  Disputes  Act.
9.  In  1955,  it  was  held  that  an  Assistant  Engineer  working  as  a  Shift Engineer  and  having  control  over  the  other  workmen  working  under  him must  be  held  to  be  not  a  "workman"  [1955-LLJ  (I)-418].  All  the  above noted  decisions  were  made  under  the  old  definition  of  the  "workman" when  the  amendment  relating  to  a  technical  worker  had  not  yet  extended the  definition  of  a  "workman".
10.  A  case  more  in  point  is  a  decision  of  the  First  Labour  Court  of West  Bengal  reported  in  1958-LLJ  (II)-556.  The  Labour  Court  held  that an  Aircraft  Maintenance  Engineer  employed.by  the  Aircraft  Company  was not  a  "workman"  because  his  duty  was  to  inspect  the  aircraft  and  aero- engines  before  the  flight  and  issue  Certificate  of  Airworthiness.  The  two Engineers,  whose  case  was  considered  by  the  Labour  Court,  were  held  to be  performing  duties  of  a  supervisory  nature.  The  manual  work  which they  had  to  do  must  be  held  to  be  only  incidental  or  ancillary  to  their main  supervisory  duty.  It  is  not,  however,  clear  if  the  work  performed by  the  engineer  in  that  case  can  be  equated  with  the  work  of  an  Assistant Superintendent  of  the  Maintenance  Division  of  the  Engineering  Depart- ment  of  Air  India.  I  I
11.  Coming  now  to  the  nature  of  duties  performed  by  the  Assistant Superintendents,  a reference  to  the  two  Affidavits  shows  that  an  Assistant Superintendent  is  in  charge  of  a  shift  consisting  of  AMEs  and  Mechanics. He  allots  jobs  for  the  next  shift.  But  he  has  not  only  to  ensure  that  the work  entrusted  to  his  subordinates  is  carried  out,  he  is  personally  respon- sible  for  the  Airworthiness  of  the  aircraft  upon  which  the  work  has  been done.  He  has  to  sign  a  certificate  to  this  effect.  Possessing  more  experi- ence  than  the  person?  who  work  in  the  shift  under  him,  he  may  be  said to  be  performing  to  some  extent  duties  of  a  supervisory  nature.  He  can- not,  however,  hold  himself  aloof  and  merely  watch 'the work  of  AMEs  and Mechanics.  He  has  to  make  decisions  himself  and  satisfy  himself  that  tho aircraft  airworthy.  He  has  to  carry  out  a  spot  inspection  of  portions  of the  aircraft  or  engines.  He  has  to  examine  the  snag  sheets  and  see  that the  snags  are  removed.  This  is what  Mr.  Bhagat  said  in  answer  to  a  Court question: —
"I  would  go  and  see  if  anything  is  required  by  way  of  work  and  if anything  is  left  behind,  I  go  to  help  out.  If  there  are  any technical  problems—if  there  are  such  things  as  snag  reports which  have  to  be  actioned,  I  would  speak  about  it  to  the  person concerned  whether  to  change  this  item  or  inspect  this  part  or adjust  it.  If  there  are  any  defects  during  inspection  which  may require  my  direct  attention,  I  would  first  look  into  them  to  see whether  they  are  of  a  serious  nature."
He  went  on  to  say  that  if  on  seeing  a flight  report  he  thought  it  necessary to  run  the  engine  on  the  ground  to  see  if  it  was  working  well,  he  would do  so himself  and  no  entrust  the  job  to  some-one  else.
 
12.  Answering  another  question,  he  said  that  an  Asstt.  Superintendent may  have  to  carry  out  some  sort  of  a  minor  check  on  the  aircraft  and  he may  have  to  go  round  the  aircraft  to  see  if  anything  was  wrong.  If  any technical  problem  arose,  he  would  have  to  solve  it  either  himself  or  in consultation  with  his  superior.  In  the  course  of  a  transit  check,  an  Assis- tant  Superintendent  would  check  for  himself  whether  any  of  the  controls

459
had  sustained  a  damage.  Cross-examined,  Mr.  Bhagat  stated  that  an Assistant  Superintendent  may  be  called  upon  to  sit  on  Promotion  or Selection  Committee  or  may  even  be  entrusted  with  a  technical  enquiry. This  alone,  however,  would  not  alter  the  nature  of  his  work  and  maky  it supervisory  because  a  technical  man  may  be  asked  to  assess  the  technical merit  of  candidates  for  employment  and  he  may  be  asked  to  report  on some  technical  problem  irrespective  of  whether  he  is  a  supervisor  or  a workman.
13  Cn  behalf  of  the  Corporation,  the  points  stressed  were  that  an Assistant  Superintendent  is  in  charge  of  a  shift  and  does  not  do *much work  with  his  own  hands.  He  must,  therefore,  be  considered  to  be  per- forming  mainly  supervisory  duties.  Mr.  Kharkar,  Deputy  Superinten- dent,  who  was  examined  by  the  Corporation,  did  not  deny  that  an Assistant  Superintendent  is  expected  to  do  spot  checks.
 
14.  To  me  it  seems  that  on,  at, least,  two  previous  occasions  it  has  been conceded  that  Assistant  Superintendents  perform  functions  which  are  not mainly  supervisory  and  that  they  must  be  deemed  to  be  performing technical  duties  which  bring  them  within  the  definition  of  "workmen". The  duties  of  an  Assistant  Superintendent  of  Air-India  are  similar  and analogous  to  those  performed  by  the  Assistant  Superintendent  in  the Indian  Airlines  Corporation.  The  duties  of  the  Assistant  Superintendents in  the  Indian  Airlines  Corporation  were  assessed  by  Mr.  Justice  Bind Basni  Prasad,  sitting  as  President  of  the  National  Industrial  Tribunal, Lucknow.  He  came  to  the  conclusion  that. AMEs  of  grades  12  to  15  in the  Indian  Airlines  Corporation  perform  work  of  a  technical  nature. "They  perform  no  work  of  administrative  or  supervisory  character  as Engineers  in  grade  IB  or  above  do.  The  fact  that  they  are  assisted  by mechanics  in  carrying  out  some  of  their  duties  does  not  render  their  work as  one  of  supervisory  nature".  Grades  12  to  15  include  Assistant  Super- intendents  which  fall  under  grade  15.  This  decision  of  Mr.  Justice  Bind Bas'ii  Prasad,  stands  unchallenged  and  if  Assistant  Superintendents  in the  Indian  Airlines  Corporation  arc  considered  "workmen",  then  it  may bo  said  with  considerable  force  that  Assistant  Superintendents  in  the  Air- India  should  also  be  deemed  "workmen"  and  not  persons  who  perform mainly  supervisory  or  administrative  duties.  I  have  already  mentioned the  tacit  admission  made  by  Air-India  when  they  entered  into  an  agree-1 ment  with  the  All  India  Aircraft  Engineers'  Association  whereby  the  pay scales  of  Senior  Inspectors  and  Assistant  Superintendents  were  fixed.  No satisfactory  argument  against  this  has  been  advanced  and  although  this agreement  cannot  operate  as  estoppel,  it  does  go  to  show  that  on  a  pre- vious  occasion  the  Corporation  did  not  object  to  the  Assistant  Superinten- dents  being  treated  as  "workmen"  and  negotiating  with  them  on  that basis.  Superintendents  and  Engineers  of  a  higher  category  are  not covered  by  that  agreement.  But  even  apart  from  the  decision  of Mr,  Justice  Bind  Ba?ni  Prasad  and  the  tacit  admission  of  Air  India,  I  am satisfied  that  an  Assistant  Superintendent  performs  duties  which  are  of a  technical  nature  and  he  is  required  to  perform  certain  functions  with his  own  hands  whenever  the  necessity  arises.  His  main  work  is  not supervisory  which  connotes  watching,  overlooking,  directing.  The dictionary  meaning  of  a  supervisor  as  given  in  the  Shorter  Oxford Dictionary  is  "a  person  who  exercises  general  direction  of  control  over a  business,  a  body  cf  workmen  etc  one  who  inspects  and  directs  the  work of  others".  This  seems  to  preclude  the  actual  performance  of  the  work by  the  supervisor.  Assistant  Superintendents  do  perform  certain  func- tions  manually  as  part  of  their  normal  duties.  The  case  of  Assistant Superintendents,  therefore,  appears  to  be  sufficiently  clear  and  they  must

4fo  tttt  tifiZEtfTE  OF liftttA  BactKAOlRD  tPART II-
be  regard  as  "workmen"  within  the  meaning  of  the  industrial  Disputes Act.
15.  The  case  of  Deputy  Superintendents,  however,  is  totally  different. They  do  not  work  on  the  spot.  It  is  not  part  of  their  duties  to  do  actual work  on  the  aircraft.  Though  in  emergency  their  advice  as  experts  might be  sought,  their  work  mainly  is  of  an, administrative  character  and  may also  be  said,  to  some  extent,  supervisory.  Although  they  are  technical men  in  the  sense  that  they  possess  high  technical  qualifications,  they cannot  be  deemed  "workmen"  performing  technical  duties.
16.  The  only  other  point  which  needs  consideration  is  whether  the Association  can  claim  the  right  to  represent  the  case  of  Deputy  Superin- tendents  and  bring  the  dispute  within  the  ambit  of  the  Industrial  Dis- putes  Act.  The  Counsel  for  tho  Association  placed  reliance  on  a  decision of  the  Supreme  Court  in  the  Dimakuchi  Tea  Estate  Case  [1953-LLJ-()I)- 500].  This  judgement  contained  the  following  observation:
(i)  The  dispute  must  be  a  real  dispute  between  the  parties  to  the dispute  (as  indicated  in  the  first  two  parts  of  the  definition clause)  S3 as  to  be  capable  of  settlement  or  adjudication  by  one , party  to  the  dispute  giving  necessary  relief  to  the  other,  and (ii)  The  person  regarding  whom  the  dispute  is  raised  must  be  one in  whose  employment,  non-employment,  terms  of  employment or  conditions  of  labour  (as  the  case  may  be)  the  parties  to  the dispute  have  a  direct  or  substantial  interest.
Applying  these  limitations  to  the  case  of  a  doctor  whose  claim  was sponsored  by  the  union  the  Supreme  Court  held  that  the  appellants  had no  direct  or  substantial  interest  in  his  employment  or  non-employment and  the  termination  of  his  service  could  not  be  construed  as  an  industrial dispute.
17.  The  Counsel  for  Air  India  drew  my  attention  to  the  other  observa- tions  in  the  same  judgement—
"Can  it  be  said  that  workmen  as  a  class  are  directly  or  substantially interested  in  the  employment,  non-employment,  terms  of employment  or  conditions  of  labour  of  persons  who  belong  to the  supervisory  gtaff  and/or  under  provisions  of  the  Act,  non- workmen  on  whom  the  Act  has  conferred  no  benefit,  who cannot  by  themselves  be  parties  to  an  industrial  dispute  and for  whose  representation  the  Act  makes  no  particular  provi- sion?  We  venture  to  think  that  the  answer  must  be  in  the negative."
which  further  support  the  argument  against  persons  working  in  super- visory  capacity  being  entitled  to  the  benefit  of  the  Industrial  Disputes Act.  '
 
18.  I  may  also  refer  to  another  judgement  of  the  Supreme  Court  in Civil  Appeal  No.  4  of  1965  of  the  All  India  Reserve  Bank  Employees' Association  and  Another  Vs.  The  Reserve  Bank  of  India  and  another  in which  the  Supreme  Court  considered  the  availability  of  the  provisions of  the  Industrial  Disputes  Act  for  the  benefit  of  supervisory  staff  drawing a  salary  of  more  than  Rs.  500  per  month.  The  matter  had  come  up  be- fore  the  National  Industrial  Tribunal  (Bank  Dispute)  presided  over  by Kantilal  T.  Desai,  J.  who  had  held  that  Class  II  employees  of  the Reserve  Bank  who  were  employed  in  a  supervisory  capacity  were  not entitled  to  have  their  claims  considered  under  the  provisions  of  the

SEC.  3(11)]  THE  GAZETTE  OF  INDIA  EXTBAORDINAHY  461
Industrial  Disputes  Act.  I  may  quote  the  following  observation  of Desai,  J.,  from  his  award:
'"I  hold  that  even  though  by  reason  of  the  community  of  interest the  workmen  may  be  entitled,  having  regard  to  tne  definition of  the  expression  'industrial  dispute',  to  raise  a  dispute  in connection  with  the  terms  of  employment  of  themselves  when they  become  non-workmen  by  reason  of  their  wages  exceeding the  limit  of  Rs. 500 it  is  not  open  to  the  Central  Government to  refer  an  industrial  dispute  concerning  the  scales  of  pay applicable  to  non-workman  or  the  remuneration  payable  to  a non-workman  to  a  National  Tribunal  for  adjudication".
15.  The  matter  was  taken  to  the  Supreme  Court  and  the  decision  of Desai,  J.  was  affirmed.  The  Supreme  Court  referred  to  its  previous  deci- sion  in  the  Dimakuchi  Tea  Estate  Case  and  considered  whether  a  dispute which  is  connected  with  the  employment  or  non-employment  or  the term,  of  employment  or  with  the  conditions  of  labour  of  any  person  can be  given  a  wide  enough  meaning  to  cover  the  cases  of  members  of  the supervisory  staff.  The  Court  came  to  the  conclusion  that  those  working in  a  supervisory  capacity  and  drawing  more  than  Rs.  500  per  mensem were  not  entitled  to  the  benefit  of  the  Industrial  Disputes  Act.  This places  the  mattor  beyond  all  doubt  and  I  therefore  hold  that  the  case  of the  Deputy  Superintendents  cannot  be  taken  up  by  the  All  India  Aircraft Engineers'  Association.
20  To sum up, Assistant  Superintendents  must  be  considered  workmen while  Deputy  Superintendents  will  not  be  considered  workmen  nor  can their  case  be  taken  up  by  the  All-India  Aircraft  Engineers'  Association.
(Sd.) G.  D.  KHOSLA.
BOMBAY; June  29, 1965.
Appendix  VI
BEFORE  THE  NATIONAL  INDUSTRIAL  TRIBUNAL,  N EW  DELHI.
(Ref.  No. NIT-1 of 1964)
In  the  matter  of  the  Industrial  Dispute  before  the  National  Industrial
Tribunal  between  Air-India  and  the  workmen  as  represented  by  the
All  India  Aircraft  Engineers'  Association  (Party  No. 5).
May  it  please  your  Lordship:
The  parties  named  above  respectfully  submit  as  follows: — In  their  Memorandum  No.  AIAEA/CD/1,  dated  24th  July  1363, the All  India  Aircraft  Engineers'  Association  (Party  No.  5)  made  a  number of  demands  relating  to  wages  and  other  service  conditions,  out  of  which the  items  specified  below  have  been  referred  to  this  Hon'ble  Tribunal for  adjudication  as  per  Schedule  appended  to  the  Government  of  India, Ministry  of  Labour  and  Employment  Order  No.  S.O.  2561,  dated  25th July 1964.
Without  prejudice  to  the  submission  of  the  respective  parties  to  this .
 
Hon'ble  Tribunal  on  the  said  items,  the  representatives  of  the  Manage- ment  and  the  Association  (Party  No.  5)  have,  in  the  meantime,  carried on  negotiations  on all the demands,  including  the  items  referred  to  herein and  as  a  result  of  the  negotiations  so  held  between  the  Management  and Party  No.  5  an  Agreement,  in  full  and  final  settlement  of  the  said

462  THE GAZETTE OF INDIA EXTRAORDINARY  [PART II—
demands  including  the  items  specified  in  the  Schedule  referred  to  above, has  been  reached.
The  Agreement  so  reached  between  the  Management  and  Party  No.  5
on  the  items  before  the  Hon'ble  Tribunal  is  set  out  hereimder: —
Agreement  on  items  in  the  Schedule  to  Order  No.  S.O.  2561,  dated  25th
July  1964  issued  by  the  Ministry  of  Labour  and  Employment1,,
Government  of  India,
Item  1:  Scales  and  Grades  of  Pay.
(i)  Assistant  Superintendent  . . ..  Rs.  1200—100—1700
(ii)  Aircraft  Maintenance  Engineer,  Gr.  I/Aircraft
Ridio  Maintenance  Engineer,  Gr.  I  ,  .  Rs.  1000—100—1500
(Hi) Aircraft  Maintenance  Engineer,  Gr,  II/Aircraft
Radio  Maintenance  Engineer,  Gr.  II  .  .  Rs.  750—50—1000—100—1200
(10)  Aircraft  Maintenance  Engineer,  Gr.  Ill/Aircraft
Radio  Maintenance  Engineer,  Gr.  I ll  .  .  RB.  400—25—450—50—800
Item  No.  2—Fixation  in  the  new  scales  of  pay
(i)  It  is  agreed  that  the  pay  of  an  employee  shall  be  fixed  in  the scales  referred  to  in  item  1  with  effect  from  1st  April  1964  after  adding one  increment  in  the  revised  scale  to  his  basic  pay  on  that  date.  If after  the  addition  of  one  increment,  the  basic  pay  is  less  than  the  mini- mum  of  the  revised  scale,  the  pay  will  be  fixed  at  the  minimum  of  the revised  scale.
(ii)  Except  in  cases  where  the  pay  is  fixed  at  the  minimum  of  the revised  grade,  the  existing  date  of  increment  of  the  employee  will  re- main  unchanged.  In  casts  in  which  the  pay  is  fixed  at  the  minimum,  the date  of  next  increment  will  be  one  year  from  the  date  of  fixation.
(iii)  In  case  of  an  employee,  who  has  reached  the  maximum  in  the existing  scale  of  pay  on  1st  April  1964,  his  next  increment  will  be  one year  from  the  date  of  fixation.
Item  No.  4—Dearness  Allowance
Dearness  allowance  shall  be  payable  according  to  the  following
scale:—
Basic Pay
Basic Pay
D.A.
Rs.
D.A. Rs.
Rs.
Rs.
950  .
157 162 166 175 I8L 187 192 198 205
1000 1100 1200 1300 1400 1500 1600 1700
4 00  . . .. 425 ' 450 . 500 . 550 . 6 00  . 8 00  . . .. 850 . 900 .
211 217 227 237 247 257 267 277 .  287
NOTE. —The D.A. for  stages  above  Rs. 600 and  below  Ro. 800  will  be  the  same  as  fox Rs.  600.

SEC.  3(li)]  THE  GAZETTE  OF  INDIA  EXTRAORDINARY  463
Item  No.  8—-Transport/Car/Conveyance Allowance.
Conveyance  Allowance  shall  be  payable  to  the  employees  at  the following  rates: —
Assistant  Superintendent
Rs.  100
Aircraft  Maintenance  Engineer,  Gr.  I/Aircraft  Radio  Maintenance
Engineer,  Gr.  I
Rs.  50
Aircraft  Maintenance  Engineer,  Gr.  II/Aircraft  Radio  Maintenance
Engineer,  Gr.  II
Rs.  50
Item  No.  12—Shift  Allowance
There  will  be  no  change  in  the  existing  provisions  on  the  subject. It  is, however,  agreed  that  Assistant  Superintendents  in  the  Maintenance Division  of  the  Engineering  Department  who  are  regularly  rostered  in shifts  will  be  paid  a  compensatory  allowance  of  Rs.  150  per  month  in lieu  of  Shift  Allowance
Item  No.  13—Licence  Allowance
The  demands  made  for  qualification  pay,  and  endorsement  allowance are  dropped.  It  is,  however,  agreed  that  Technical  Pay  at  the  rates specified  below  will  be  payable  to  the  employees: —
Assistant  Superintendents  Rs.  250  per  month
Aircraft  Maintenance  Engineer,  Gr.  I/Aircr-aft  Radio
Maintenance  Engineer,  Gr.  I  Rs.  200  „  „
Aircraft  Maintenance  Engineer,  Gr,  11/  Aircraft  Radio
Maintenance  Engineer,  Gr,  II
.  Rs,  100  „  „
Aircraft  Maintenance  Engineer  Gr.  II/Aircraft  Radio  Maintenance Engineer,  Gr.  II  will  be  granted  a  qualification  pay  of  Rs.  100 per  month if  they  possess  or  acquire  additional  qualification  as  prescribed  in  the Annexure  to  this  application.
Item  No.  20—Insurance Coverage
(a)  It  is  agreed  that  if  an  Aircraft  Maintenance  Engineer  is  required to travel  on  duty  as  a supernumerary  crew,  he  will  be  provided  with  an insurance  cover  of  Rs.  35,000  against  death  by  accident  while  flying  as  a member  of  such  ciew  apart  from  the  compensation  admissible  to  him under  the  existing  rules.
(b)  Compensation  for  ground  risks  will  be  in  accordance  with  the award  of  the N.I.T.
Item  No.  21—Provident  Fund
It  is  agreed  that  the  Technical  Pay  and  Qualification  Pay  where admissible  will  be  treated  as pay  for  the  purpose  of  Air-India  Employees' Provident  Fund  Regulations
Item  No.  23—Leave Facilities
It  is  agreed  that  if  an  employee  who  is  granted  disability  leave  for 90  days  under  the  existing  provisions  is  declared  medically  unfit  to  re- sume  duties, he  may  be  granted  at  the  discretion  of  the  General  Manager an  extension  of  such  Disability  Leave  for  a  further  period  not  exceeding 274 days  which  shall  be  on  half  basic  pay  plus  half  dearness  allowance.

4
Item  No.  27—Passage  Regulations
The  demand  is  left  for  decision  by  the  N.I.T.
Item  No.  30—-Medical  Benefits  /Facilities
It  is  agreed  that  the  present  medical  benefits  to  the  Aircraft  Mainte- nance  Engineers  will  continue.  Further,  the  Management  has  agreed  in principle  to  evolve  in  consultation  with  the  Association,  at  an  early  date, a  contributory  scheme,  for  extending  a  prescribed  amount  of  medical facilitiae  to  the  family  of  an  Aircraft  Maintenance  Engineer.
Item  No.  31—Retire-muni  Age.
This  demand  is  left  for  decision  by  the  N.I.T.
Item  No.  38—Hours  oj  ivork.
The  working  hours  and  minimum  rest  period  between  working period3  are  left  for  decision  by  the  N.I.T.
Item  No.  40—Gratuity,
Gratuity  will  be  as  Der  award  of  the  N.I.T.
Item  No.  53—Endorsement  Allowance
This  is  covered  by  the  Agreement  on  item  No.  13.
Item  No.  56—Date  of  Implementation.
(i)  It  is  agreed  that  scales  of  pay  in  item  1,  and  the  other  emoluments- in  items  4,  8  and  13 will  have  effect  from  1st  April  1964.
(ii)  The  recalculation  of  shift  allowance,  overtime  allowance,  Sunday- allowance,  settling  down  allowance,  clothing  allowance,  meal  allowance or  recoveries  of  house  rent  for  occupation  of  staff  quarters,  which  are related  to  basic  pay  shall,  notwithstanding  the  change  in  the  basic  pay with  effect  from  1st  April  1964  be  made  and  adjusted  only  with  effect from  1st  January  1965.  There  will  be  no  retrospective  calculation  of. outstation/halting  allowance  or  readjustment  of  such  allowance  for  any period  consequent  upon  the  change  in  basic  pay  under  this  Agreement.
(iii)  Except  as  provided  under  (i)  and  (ii)  above,  this  Agreement  will not  have  any  retrospective  effect.
Except  to  the  extent  provided  under  the  Agreement,  and  in  considera- tion  of  the  other  terms  of  this  Agreement,  the  demands  under  the  follow- ing  items  are  dropped:
Item  No.  5  House  Rent  Allowance/conditions  governing  allotment of  accommodation.
Item  No.  9  Overtime  payment. Item  No.  10  Working  on  scheduled  'off'  day/holidays. Item  No.  11  Jet/Hazard  Allowance  for  ground  staff. Item  No.  13  Licence  Allowance. Item  No.  17  Travelling  Allowance. Item  No.  19  Efficiency  Bonus. Item  No.  23  Leave  facilities. Item  No.  34  Outstation  Allowance. Item  No.  35  Resettlement  Allowance. Item  No.  39  Promotion.

Sue.  3(iJ)]  TJJE1 .GAZETTE OF  I^piA  EXTBAORI?INAB;Y  465
Item,  No.  54  Meal  Allowance. Item  No.  55  Secondary  Increment.
Further,  this  Agreement  which  has  been  reached  in  full  and  final •settlement  of  all  the  demands  contained  in  the  All  India  Aircraft  Engi- neers'  Association's  (Party  No.  5)  Memorandum  No.  AIAEA/CD/1,  dated 24th  July,  1963 including  the  item  Nos.  1, 2, 4,  5, 8,  9,  10,  11, 12,  13,  17, 19, 20,  21, 23, 27,  30,  31, 34, 35,  38,  39,  40,  47,  53,  54,  55  and  56  as  enumerated in  Fart  I  of  the  Schedule  appended  to  the  Government  of  India,  Ministry of  Labour  and  Employment  Order  No,  S.O.  2560,  dated  25th  July* 1964, will  remain  in  force  for  a  period  of  three  years  from  the  date  of  publica- tion  of  the  Award  to  be  made  by  the  Hon'ble  Tribunal.
The  parties  pray  for  the  orders  of  the  Hon'ble  Tribunal  on  this  appli- cation  which  may  be  passed  as  an  Award  on  the  disputes  under  various items  of  the  Schedule  indicated  above.
For  and  on  behalf  of  the  Air  India
Corporation.
(Sd.)  A.  S.  BANAVALIKAR,
Personal  Manager. For  and  on  behalf  of  the  All  India Aircraft  Engineers'  Association,
(Sd.)  K.  R.  N.  SWAMY,
Secretary,
Witness: (1)  (Sd.)  V.  S.  Bhagat. (2)  (Sd.1  P.  M.  Thakur. Dated,  Bombay  the  15th  October,  1965.
ANNEXURE
Aircraft  Maintenance  Engineer  Us /Aircraft  Radio  Maintenance  Engi-. neer  Us  in  possession  of  the  fullowing  additional  qualification/approval, will  be  granted  a  qualification  pay  of  Rs,  100/-  per  month.
MAINTENANCE:
1.  'C  Licence  on  aircraft  used  on  Corporation's  scheduled  services for  engineers  holding  'A'  Licence.
2.  'A'  Licence  on  aircraft  used  on  Corporation's  scheduled  services for  engineers  holding  'C  Licence.
NOTE:—Licences  on  1049  Aircraft  will  be  included  in  the  two  cases referred  to  above1.
3.  Approval  for  servicing  instrument  and  electrical  systems  on  air- craft  used  on  Corporation's  scheduled  services  for  engineers holding  'X'  licence  on  electrical  equipment.
4.  Approval  for  servicing  Instrument  and  electrical  systems  on  air- craft  used  on  Corporation's  scheduled  services  for  engineers holding  'X'  Licence  on  instruments.
5.  ARME  '.B' Licence  on  1049  or  707  Aircraft  for  engineers  holding ARME  'A'  Licence.
OVERHAUL  SHOPS
6.  Electrical  Overhaul  Sectiori.—Approval  to  certify  item/items overhauled  in  the  Section  and  which  are  not  covered  by  his AME  licence.

466  THE  GAZETTE  OF INDIA  EXTRAOKDINARY  [PART II—
7.  Instrument  Overhaul  Section.—Approval  to  certify  item/items
overhauled  in  the  Section  and  which  are  not  covered  by  his AME  licence.
8.  Radio  Overhaul  Section.—Approval  to  certify  item/items  over- hauled  in  the  Sectjon  and  which  are  not  covered  by  his  ARME licence.
9  Components  Overhaul.—Approval  to  certify  overhaul  work  in the  Division  for  engineers  holding  'B'  licence  on  1049  Aircraft or  those  who  have  passed  Corporation's  Sr.  Engineers'  Level examination.
10.  Power  Plant  Overhaul.—Approval  to  certify  overhaul  work  in  the Division  for  engineers  holding  'D'  licence  on  DA  engines  of 1094  Aircraft  or  those  who  have  passed  Corporation's  Sr.  Engi- neers  Level  examination.
NOTE : —Whenever  an  Aircraft  Maintenance  Engineer  is  required to  obtain  approvals  for  certifying  items  which  are  not  currently coverved  in  his  existing  approval,  he  will  be  given  the  required training  and  experience  to  obtain  such  approval.
Appendix  II
STATEMENT  SHOWING  THE  EXHIBITS  FILED  BY  THE  AIR  INDIA  CORPORATION  AND  UNIONS
Items
Document?  filed  by  Air-India
Corporation
Documents  filed  by  the  Union U-II,  U-III,  U-IV,  U-V, U-VI,  U-VII
Miscellaneous  .
U-II/i,  2,  20,  2i,  22,  23,  50, 5J,  52, 53, 54, 55, 5$, 57. 58.
U-Ilt/5, 6, 41.
U-V/2, 3, 4, 5.
U-VI/IT.
6,  7,  8,  9,  10,  ii3  12,  15,  19, 23,  30,  3i,  32.  33,  34.  35= 36,  37,  38,  39,  40,  4J>  42, 43,  44,  45)  46.  47,  59,  60, 61,  62,  63,  64,  65,  66,  67, 68,  69,  70,  71,  72,  73,  74. 75,  76,  77,  78,  79,  80,  81, 82,  S3, 84,  85, 86,  87,  109, n o.
Scales and grades  of pay  .
I.
48, 49, 50, 51,52, 53. 54,  m,
112.
U-II/2I,  22,  23,  24,  31,  32j 43,  46,  47,  48,  49,  63,  64, 65,  66,  67,  68,  73.
U-III/I9,  20,  2i3  22,  23,  24,
25,  26,  27,  28,  29,  30,  31,
32,  33,  34.  39.  40.
U-VI/l,  2,  3,  4,  5,  6,  7,  8, 9,  10,  i i,  12,  13,  14,  15, 16,  23,  24,  25,  26,  27, 28,  29,  30,  31,  32,  33.
U-VII/i,  2,  3,  4,  4A,  5,  6, 7,  8,  8A,  17,  18,  19,  20, 21,  22j  25,  26,  27,  28,  29J 30,  31.  .
.Fixation  In  the  new  pay- 100-C
2.
scales.

SEC.  3(ii)]  THE  GAZETTE  OF  INDIA  EXTRAORDINARY  467
U
M
Items
4-Weekly  rates  of  payment
3.
••
of  grade pay.
U-II/25,  26,  27,  28,  29, 30, Dearness  Allowance .
4-
55
33* 44-
U-III/35,  36, 37, 38.
U-II/34, 35, 36. 45- 5. House  rent  allowance/con- ditions governing  allotment of  accommodation.
U-VII/9.
6. Duty  Allowance
U-II/37
Machine  Allowance  .
U-II/38
7-
••
&.
57
Transport/car/con vcyance allowance.
U-II/8,  9> 10,  17.
Overtime  payment  .
22, 23
9.
U-III/7.
U-V/7.
10.
U-II/19.
Working  on  Scheduled 27,  28, 29
"Off  day'/holidays.
U-III/17.
11 .  Jet/hazard  allowance  for
U-II/39,  40.
••
Ground  staff.
12 .  Shift  allowance
U-II/11, 12, 18.
16, 17, 24, 25
.  Licence  allowance  .
U-II/41.
13
58
.  Heavy  duty  vehicle  allow-
14
56
••
ance.

468  THE  GAZETTE  OF  INDIA  EXTRAORDINARY  [PART  II—
Items
M
U
15- Jet  allowance  (cabin attendants  and  flight crew).
*
I 6.
••
Overseas  operation  allow- ance.
1 00
Travelling  allowance
17-
18. Excess  flying  pay/excess duty  allowance.
Efficiency  bonus
19-
••
2 0. Insurance  coverage  .
U-II/71.
5
U-V/6.
1
2 1. Provident  fund
U-III/i.
2 2.
90, 9 1, 92, 93, 94, 95, 96, 97, U-VI/20,  22.
983 99-
12,  13 Flight  duty  time  and flight time  limitations  and  rest periods.
U-VII/n-A,  n-B,
14, 15.
26
U-II/13,  14,  15.
Leave  facilities
2 3.
U-III/14, 15.
IOO-B
2 4- Standard  force  (cabin attendants  and  flight crew).
2 5-
••
Compensation  for  death or  injury  (relating  to  cabin attendants  and  flight crew).
100-A
2 6.
Compensation  for  loss  or damage to baggage  of cabin attendants  and  flight crew.

SEC.  3 " i )]  THE  GAZETTE  OF  INDIA  EXTRAORDINARY  469
Items
M
u
106
Passage  regulations  .
27.
Washing  allowance  ,
38.
U-II/42.
u-II/72.
29-
••
Accommodation  and  lay- over  allowance  at  layover stations.
u-VII/16.
3°- Medical  bfenefits  facili- ties.
Retirement  age
u-11/4.
4,  4 A,  1 3,  14
31-
U-III/3,  4-
1 01
Foreign  allowance
U-VI/2I.
32-
33- Senior  Check  Pursers'  In- structional  allowance.
102,  103, 104
Outstation  allowance
U-II/60.
34-
Resettlement  allowance
105
35-
Children  allowance  .
36.
••
Driving  allowance  .
37-
••
H o u rs  of  w o rk
U-II/16.
18,  2O3 21
38.
U-III/8,  9,  10,  11,  12,  13.
P r o m o t i on
U-II/61,  62.
39-
G r a t u i ty  . . ..
40.
2,  3
U-II/3,  6,  7-
U-III/2.
U-V/i.

470  THE GAZETTE  OF INDIA  EXTRAORDINARY  [PAFT II—
U
Items
M
.  Command  pay  (Senior
41
Captains)
42 .  2nd  Class  Navigators'
Licence  Allowance.
.  Radio/Telephone  Allowance
43
,  Check  Pilots'  Allowance  .
44.
.  Night  Flying  Allowance  .
45.
Retirement  Benefits  .  ,  88, 89
46.
U-II/5.
U-IV/i,  2,  & 3-
U-VI/17-A, 17-B,
18  & 19.
U-II/59.
Travel  on  duty
47-
48. Flight  Engineer  Instruc- tors'  Allowance.
,  Check  allowance  for Check
49.
flight  Engineers.
SO.
.  Salary  for  Cadet  Flight
Engineers.
.  Special  travelling  allow-
5i
ance.
.  Emoluments  of  Check  Na-
52,
••
vigators.
53. Endorsement  allowance (Aircraft  Maintenance  En- gineers).
U-III/rC,  18.
Meal  Allowance
54-
 
••

SEC.  3(ii)i  THE  GAZETTE  OF  INDIA  EXTBAOBDINARY  471
Items
U
M
Secondary  increments
55.
56. Date  of  Implementation
107;,  108
••
Interim  relief  .
57.
Appendix  VM
No.  3/1/65-NIT
GOVERNMENT  OF  INNDIA
NATIONAL  INDUSTRIAL  TRIBUNAL
DR.  RAJENDRA  PRASAD  ROAD,
New  Delhi,  the  28th  July,  1965.
BEFORE  TIIE  NATIONAL  INDUSTRIAL  TRIBUNAL
N EW  DELH;
In  the  matter  of  reference  under  sub-section  (1A)  of  Section  10  of  the
Industrial  Disputes  Act,  1947  (14  of  1947).
(Reference  No.  NIT-1  of  1964)
PARTIES:
Employers  in  relation  to  Messrs  Air  India,  87,  Mahatma  Gandhi  Road, Bombay.
and
Their  workmen  as  represented  by  Air  India  Employees'  Union, Bombay.
PRESENT:
Shri  G.  D.  Khosla,  Presiding  Officer.
Appearances  at  Bombay.
For  the  Employers:
Shri  Sohrab  D.  Virnadalai.  Bar-at-Law,  with  Shri  S.  K.  Wadia,  Solici- tor  and  Shri  A.  S.  Banavalikar,  Personnel  Manager.
For  the  Workmen:
Shri  K,  K.  Sinphvn  with  Shri  K.  S,  Ramaswami  and  Shri  K.  T.  Laksh- rnanan  of  the  Air  India  Employees'  Union.
ORDER  NO.  23
Mr.  Vimadalal,  Counsel  for  Air-India,  has  taken  objection  to  the  pro- duction  of  a  document  called  for  by  Mr.  Singhvi,  Counsel  for  Party  No. 3.

472  THE GAZETTE OF INDIA EXTRAORDINARY  [PART II—
The  document  in  question,  is  a  draft  outline  of  the  Fourth  Five-Year Plan  prepared  by Air  India.  Mr. Singhvi's  object  in  calling  for  this  docu- ment  is to show  the resources  of  Air-India  and its improving  state  as envi- saged  in  the  future  plans  prepared  by  the  Management.  Objection  is taken  to  the  production  of  the  document  on  two grounds.  It  is  urged,  in the  first  place,  that  it  is a  privileged  document  protected  by  provisions  of Section  123 of  the Indian  Evidence  Act.  Mr. Vimadalal  contends  that  this document  is  an  unpublished  document  and  relates  to  the  affairs  of  State inasmuch  as  it  contains  material  which  has  been  communicated  by  a public  sector  Undertaking  to  the  Government.  It  contains  information which  is  confidential  and  should  not  be  revealed  to  the  public  at  this stage.  The  determination  of  many  problems  before  the  Planning  Com- mission  is  connected  with  this  Five-Year  Plan,  for  instance,  provision  of funds,  provision  of  foreign  exchange  for  purposes  planned  by  Air-India. I  am unable  to  accept  this  contention.  The  document  may  be  a  confiden- tial  plan  prepared  by  Air-India,  it  may  only  be  an  outline  draft  and not yet  finalised  decision.  But,  it  cannot  be  said  to  be  a  document  which  re- lates  to affairs  of  State.  It  has been  prepared  by Air-India  an  autonomous Corporation  carrying  on  an  industry,  and  the  commercial  activities  of  a Government  cannot  be  said  to  relate  to  affairs  of  State.  No  question  of security  is  involved  and  I  cannot  look  upon  the  document  as  anything more  than  the plans  of a  commercial  undertaking,  and in no way  different from  similar  plans  which  might  have  been  prepared  by  undertakings  in the  private  sector.  I,  therefore,  over-rule  Mr.  Vimadalal's  contention regarding  the  claiming  of  privilege  in  respect  of  this  document.
The  second  objection  taken  is  that  the  document  is  irrelevant.  This contention  too, is  without' any  force.  A  copy  of  the  document  has  been placed  before  me and  in  brief  outline  it  sets  out  the future  plans.  It con- tains  information"about  the financial  state  of  Air-India  in  the year  1963-64, the  time  when  it  was  prepared.  It  also  sets  out  the  future  expectations of  Air-India  during  the  years  1963-64  to  1970-71.  This  information  has some  relevance  to  the  matters  before  me  inasmuch  as  it  has  been  con- fended  on  behalf  of  the Unions  that  Air-India  has ample  resources  to  give more  relief  to  its  workmen.  In  the  circumstances,  I  hold  that  the  docu- ment  has  some  relevance  to  the  matters  before  me,  and  over-ruling Mr.  Vimadalal's  contention,  I  older  that  it  be  produced.
The  document  will, however,  be treated  as confidential  document  at the request  of  Mr, Vimadalal  under  provisions  of  Section  21 of  the  Industrial Disputes  Act.
BOMBAY,
July  28th,  1965.
(Sd./-)  G.  D.  KHOSLA.
P.  C. MATHUR,
Secretary,
[17 (1) /66-LRIV]
 
PRINTED  IN  INDIA  BY THE GENERAL MANAGER,  GOVERNMENT  OF INDIA  PRESS,  MINTO ROAD,  NEW  DELHI  AND PUBLISHED  BY  THE MANAGER  OF  PUBLICATIONS, DELHI,  1 9 66




etc. issued by the work- men's unions, because it has seemed to me that a discussion of the tactics employed by either party will cast a cloud over the merits of the issues involved, and may even make the mind prone to pre-judge the case of either party. It is inevitable that in all employer-workmen disputes, the employer should assume an attitude of righteousness and injured inno- cence and the workmen should make a display of having been exploited and victimised. It will serve no useful purpose if I were to say that the workmen have tried to bully or blackmail the management or that the management has been callously unsympathetic towards its workers. I have, therefore, endeavoured to steer clear of these distracting preli- minaries and attitudes and judge the merits of the dispute without refer- ence to the antics performed by the disputants on either side. But, when dealing with the question of costs, I shall have occasion to make a brief reference to this aspect of the matter. 13. Before concluding this chapter, I may say that many of the items in the Schedule arise out of common demands made by the various parties. All parties, for instance, have asked for a complete revision of the pay scales, a rise in dearness allowance and such other benefits and allowances as relate to the nature of their employment. The 57 items cover almost all conditions of service which affect the employees of the Corporation, and an award made upon them, therefore, must be based upon an exhaustive study of the present conditions and of the grounds upon which these demands are made. It will, therefore, be necessary to examine some of the broader economic issues which have a bearing upon the determination of salaries and allowances, and it will also be necessary to consider the capacity of the Corporation to meet these demands, having regard to its rfuture programme and its financial commitments and liabilities. ↩
P r o b l e ms of W a ge Policy In Asian C o u n t r i e s, International L a b o ur Office, 1956, p. 84. (4) ibid, p. 2 5. (5) ibid, p. 87. (6) ibid, p. 88, (7) ibid, p. 91. ↩
Land- less casual worker. e. With land. ". Without land. ↩
 ↩
S A M E'S e i t h er Erectly or from r£?J? I +? . M e c h a m c s- A statement (M-58) filed by the Corpo- nf AM T t h at ?S m a ny as d u™ S .t he y«aj 1M4-65. It is, therefore, clear that no addi tional incentive is needed to make the Mechanics acquire an AME's. ↩
Mechanics were promoted to the posts L^ ↩
-. 125 each overseas operations allowance and Chief Air Hostess, Assistant Chief Air Hostess, Air Hostess and Avistant Flight Purser are paid Rs, 100. I see no justification for incicasing this allowance. The members of the Flight Crew are ade- quately compensated for the additional expenses involved in travelling abroad and the present al o\vance appears tn me to bo more than ade- quate for this purpose. I, therefore, reject this demand in toto. (xivi) Item No. 19: Efficiency Bonus. 100. The Corporation pays an Efficiency Bonus to members of tht flight crew in consideration of the fact that a very high degree of effi- ciency of the flight crew has to be maintained. The amounts paid are ↩
" th: - volume of air traffic is far greater than ft any of the outstat.ions. Overtime payment must We related 1o wage- structure unrJ to the gensra] conditions of service, particularly the actual hours nf work. The Factories Act contemplates overtime payment only if a workman has to work at n job for more than 9 hours on my parti- cular day and for more than 48 hours in a particular wleek. By Tar the greater majority of rmployees of the Corporation work for a maximum of miich less than 48 hours. Overtime payment for the more exacting types of work is being made at double the normal rates. Any departures from iho IAC scbemfj should be agitated before a Labour Court having authority to enforce industrial awards. 152. It is pointed out on behalf of the Corporation that workers some- times arrive late for work. In such cases, it was submitted, a deduction should be made from the overtime put in by the worker before calculat- ing the- overtime payment due. But it was urged on behalf of Party No. 3 that there is no connection between late attendance and overtime work and that an employee who arrives late is liable to have a part of his wages deducted on account of late attendance. 153. A careful examination of the terms governing the payment of" 'overtime' wages in the Corporation, and a comparison with conditions prevailing in some oth«r industries listed in a statement filed by the Corporation (Exhibit M-22), shows that the employees of Air-India are receiving generous treatment in this respect, and there are no grounds for further liberalising their terms. The Engineers on whose behalf the demand was very strenuously pressed at the start, saw fit to drop it during- the course of their negotiations with the Corporation. I see no force in the demand of Parties 2 and 3, and I am not prepared to grant it, Tr therefore, reject it. 2. Item No, 10—Working on Scheduled "off day"/holiday 154. Section 53 (i) of the Factories Act makes it obligatory for an em- plover to compensate a workman who is required to work on a weekly holiday. This deprivation is compensated, by thle workmen being allow- ed "within the month in which the holidays were due to him or within the two months immediately following that month, compensatory holi- days of equal number to the holidays so lost." This provision deals only with the deprivation of the weekly "off day". It has no reference to other holidays which the employer may declare. A number of such holidays are declared by most employers and in the case of Air-India, there are 15 such holidays declared under Regulation 12 (ii) of the Air-India Em- ployees' Service Regulations. 155. The present practice of Air-India for compensating workmen who- are renuired to work on thn scheduled "off day" or on a declared holiday, is as follows: — (i) Sundays or weekly "off days" (a) Clerical and administrative staff are allowed a meal allow- ance and n^so a substituted "off day" according to the require- ments of Section 53 of the Factories Act. (b) Engineering and Stores staff are allowed 25 per cent of t he hourly rate of basic pay in addition to the substituted "off day'*. (c) With regard to the workmen v hn wr>ri< On shifts, they are only- given a substituted "off day" when they are required to work ↩
per hour. In all cases, excess flying pay will be paid when the flight time exceed= 50. hours per month. There is no justification for making any adjustment. of the duty time or relating the excess flying pay to the increase in duty- time. It is the actual flying which imposes an additional strain on the flight crew and not the time taken at the airport in discharging the usual routine duties. 5. Item No. 22—Flight duty time and flight time limitations and rest periods. 190. This item relates only to the flight crew viz., the commander, first, officer, flight engineers, flight navigators and cabin attendants. There w as no demand made on behalf of Party No. 3 and Party No. 5, but the case* of such cabin attendants as are members of Party No. 3, will be coverwft by considering the demands of Party No. 2. 191. The need to fix limitations of flight time and flight duty time and to provide for rest periods, arises out of the safety factor which comes into operation because of the fatigue for long hours of flying in, modern Jet aircraft. It must be stated at once that this is the only matter which must go to determine the limitation of flight time and the fixing of rest periods. It is now generally recognised that jet flying involves an un~ usual degree- of fatigue and nervous strains. The safety factor is part oi the duties of the Civil Aviation Department in this country and it is the- Director-General of Civil Aviation who, by taking- into consideration all the circumstances of the case, is authorised to fix the upper limits of fly- ing time. Such a limit has been fixed under Rule-408A of the Indian Air- craft Rules, 1957. There is no ceiling on the number of hours which cai* be flown by a pilot within a period of 24 hours, but it is provided that no pilot should be made to fly for more than 125- hours in any period oft ↩
I"a t i on h as also placed on record a statement (Exhibit ™ n M-21) showing the hours of work in a number of industrial concerns and this statement shows that the working hours of the Air-India Corpora- tion are more advantageous than those which obtain in the industries mentioned in the statement. To take a few examples from the Public Sector, the employees of the Maharashtra State Road Transport Corpora- tion and of the Bombay Electric Supply and Transport Undertaking, work 36 hours in the case of clerical, administrative and non-technical staff and 48 hours in the case of the other staff. In the National Instruments Limit- ed, these figures are 39^ hours and 45 hours respectively. In the case of Heavy Electricals (India), office staff work for 41 hours per week and the industrial and technical staff for 48 hours per week. Drivers work 45 hours per week. In the Private Sector, the employees of Metal Box Co. of India Ltd., work 36J hours in the office and 48 hours in the factory. The same hours obtain in the case of Garlick & Company Pvt. Ltd. Exhi- bit M-21 gives the complete figures for as many as 23 different indus- tries including Air-India. 213. Shri Vimadalal, therefore, argued that employees of the Corpo- ration have no grievance whatsoever and that their hours of work are already low compared with the hours of work obtaining in other indus- tries. Comparison between the industries may not always be apt because the Air-India Corporation has its own problems and its work is of a spe- cial nature. But, it is nevertheless true that in many instances, the nature of the work is similar. For instance, chowkidars, clerical and adminis- trative staff, drivers and to some extent, maintenance engineers have similar functions to perform in almost all the industrial manufacturing concerns. 214. With regard to the offer of a five-day 40-hour week, and the work- men's objections against it, Shri Vimadalal conceded that had the Tri- bunal been concerned only with the question of hours, then, since no demand was made by the Corporation for the increase of hours, the Tri- bunal could not be asked to impose a 40-hour week on those employees who were at present working less than 40 hours. But, Shri Vimadalal argued, that if in the overall scheme the Tribunal considered that a 40- hour week taken with other benefits conceded or granted was of advant- age to the workmen, there could be no objection to increasing the hours of work of some of the employees. 215. The questions for my consideration are therefore two—(i) whe- ther it is appropriate and just to impose a universal five-day 40-hour week on all the employees of the Corporation and (11) whether there is any justification for a reduction in the hours as claimed by the various parties. 216 Party No. 2 did not make any demand on this score in the original charter. It'was only after the statements from the parties were cailed for that the present" comprehensive and multifarious demands were put forward. ↩
A ' ?-he C o rP ↩
personal prepossessions. On this point there can be no two opinions. It was als,o pointed out that air hostesses do not stay very long in the service of Air-India, and young and attractive women are more inclined to look upon service in Air-India as a temporary occupation than as a career. Most of them get married and ↩
- ↩