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29 {

No.

22

Poudouchéry

Mardi

29

Mai

2018 (8 Jyaistha 1940)

No.

Puducherry

Tuesday

29th

May

2018

644

LA GAZETTE DE L’ETAT

[29 May 2018

GOVERNMENT OF PUDUCHERRY

LABOUR DEPARTMENT

(G.O. Rt. No. 46/Lab./AIL/T/2018,

Puducherry, dated 22nd March 2018)

NOTIFICATION

Whereas, an Award in I.D (T) No. 04/2012 and

No. 07/2014, dated 12-01-2018 of the Industrial

Tribunal-cum-Labour Court, Puducherry in respect of

the Industrial Dispute [I.D (T) No. 04/2012]

between the management of M/s Hindustan Unilever

Limted, Tea Factory, Puducherry and HLL Tea Workers

Welfare Union, over charter of demands such as wage

revision,

annual

increment,

HRA,

Educational

allowance, HBA and other allowances, etc., and Industrial

Dispute [I.D (T) No. 07/2014] between the management

of M/s. Hindustan Unilever Limted, Tea Factory,

Puducherry and HLL Tea Workers Welfare Union and

Hindustan Unilever Tea Unit Employees Union, over

disparity in wages and incentives has been received;

Now, therefore, in exercise of the powers conferred

by sub-section (1) of section 17 of the Industrial

Disputes Act, 1947 (Central Act XIV of 1947), read

with the notification issued in Labour Department’s

G.O. Ms. No. 20/91/Lab./L, dated 23-5-1991, it is

hereby directed by the Secretary to Government

(Labour), that the said Award shall be published in the

Official Gazette, Puducherry.

(By order)

S. MOUTTOULINGAM,

Under Secretary to Government (Labour).

————

BEFORE THE INDUSTRIAL TRIBUNAL-CUM-

LABOUR COURT AT PUDUCHERRY

Present :Thiru G. THANENDRAN, B.com.,M.L.,

Presiding Officer.

Friday, the 18th day of January 2018

I.D(T). No. 04/2012 and I.D (T). No. 07/2014

I.D(T). No. 04/2012

HLL Tea Workers Welfare Union,

Reg. No. 1483/RTU/2007,

No. 29, A.V. Dhandapani Nagar,

Kanniyakoil, Bahoor,

Pondicherry,

Rep., by its Secretary,

Mr. S. Rajendirane.

. . Petitioner

I.D(T). No. 07/2014

1. HLL Tea Workers’ Welfare Union,

Reg. No. 1483/RTU/2007,

No. 34, Madha Koil Street,

Thavalakuppam, Kattupalayam Post,

Puducherry-605 007,

Rep. by its Secretary,

Mr.S. Rajendirane.

2. Hindustan Unilever Tea Unit

Employees Union,

Reg. No. 1648/RTU/2010,

Rep. by its President,

No. 44, Ellaiamman Kovil Street,

Korkadu Post, Villianur,

Puducherry-605 110.

. . Petitioners

Versus

I.D(L). No. 04/2012 & I.D(L). No. 07/2014

M/s. Hindustan Unilever Limited,

Tea Factory, Rep. by its Factory Manager,

No. 3, Cuddalore Main Road,

Kirumampakkam,

Puducherry-607 402

. . Respondent

These industrial disputes coming on 04-12-2017

before me for final hearing in the presence of

Thiruvalargal P.R. Thiruneelakandan and A.Mithun

Chakaravarthy, Advocates for the petitioners and

Thiruvalargal L. Sathish, T. Pravin, S. Velmurugan,

V. Veeraragavan, Advocates for the respondent, upon

hearing both sides, upon perusing the case records

after having stood over for consideration till this day,

this Court passed the following:

COMMON AWARD

L.D(T). No. 04/2012

1. This Industrial Dispute has been referred by the

Government as per the G.O. Rt. No. 61/AIL/Lab./J/2012,

dated 29-03-2012 for adjudicating the following:-

(i) Whether the dispute raised by HLL Tea

Workers Welfare Union against the management of

M/s. Hindustan Unilever Private Limited, Tea

Factory, Puducherry, over charter of demands such

as wage revision, annual increment, HRA, educational

allowance, HBA and other allowances, etc., is justified?

(ii) If justified, what relief the workers are

entitled to?

(iii) To compute the relief if any, awarded in

terms of money if, it can be so computed?

645

29 May 2018]

LA GAZETTE DE L’ETAT

I.D(T). No. 04/2014

1. This Industrial Dispute has been referred by the

Government as per the G.O. Rt. No. 83/AIL/Lab./J/2014,

dated 12-05-2014 for adjudicating the following:-

(a) Whether the dispute raised by the HLL Tea

Workers’ Welfare Union and Hindustan Unilever Tea

Unit Employees Union against the management of

M/s. Hindustan Unilever Private Limited, Tea

Factory, over the 18(1) settlement, dated 04-03-2013

entered with another union during the pendency of

the industrial dispute before the industrial Tribunal,

Puducherry is justified ?

(b) Whether the act of the said management in

showing disparity in wages and incentives among

the workmen who have signed and not signed the

18(1) settlement and individual Bond are justified?

(c) Whether the claim of the union workmen for

equal wages and incentive on par with the other

workmen and to extend the benefits of 12(3)

settlement, dated 07-05-2007 till a new wage

settlement is entered is justified?

(d) Whether the management has adopted any

unfair labour practice among the union workmen

under section 25(T) of the Industrial Disputes

Act, 1947? If so, what remedy the workmen are

entitled to

(e) To compute the relief if any, awarded in

terms of money if, it can be so computed?

2. The brief averments of the claim statement in

L.D(T). No. 04/2012 filed by the petitioner is as

follows:

The respondent is a multinational company of

unilever group, U.K carrying on business through the

Indian entity Hindustan Unilever Limited, a company

registered under the Indian companies Act. The

respondent company deals in variety of consumer

goods and has established brand name for various

products. Since, the Government of Puducherry with

intent, object to promote Industrialization in the

Union Territory, announced substantial Sales tax

concession, power concession and substantial

subsidies to attract industrial investment from

leading player. The respondent availing aforesaid

benefits, concession in the year 1997 set up Tea

unit at Kirumapakkam, Bahour Commune, Puducherry,

similarly the respondent set up several other factory

viz., HUL Personal Products at Vadamangalam, HUL

Detergent, Vadamangalam, HUL Footwear, etc., at

Puducherry. The petitioner union members arc

permanent workers of the HUL Tea unit situated at

No. 9, Cuddalore Road, Kirumampakkam, Puducherry.

The petitioner union was formed for welfare,

betterment of the workers. The wage and other

allowance of the workers of the Tea factory are

determined by the wage settlement time to time

entered between the petitioner union and the

respondent management. The petitioner trade union

representing majority workers, recognized by the

respondent management, entered into last wage

settlement, dated 07-05-2007 for 4 years period,

the same was expired on 06-05-2011 before expiry

of the said wage settlement, the petitioner union by

its letter of demand, dated 11-02-2011 raised the

demand of wage revision before the respondent

management. The respondent management did not

consider the wage demand of the petitioner union,

on the other hand with an intent to threaten the

workers and suppress their wage demand posed

a counter demand to increase the machine speed

from 29 units to 39 units with the existing

workforce, and also demanded the workers to accept

the proposed erection of auto machine which was

likely to lead retrenchment of existing workers. The

petitioner union objected the counter demand.

There are several sitting of negotiation talk between

the petitioner and the respondent over the demand

and counter demand. Since, the respondent offer

very lesser wage increase and persisted the

petitioner to concede the counter demand, in the

negotiation talk no amicable settlement was arrived

and the negotiation talk was ended in vain.

Thereafter, on 15-06-2011, the petitioner union

raised industrial dispute over the wage revision

before the Labour Officer (Conciliation), Puducherry.

The petitioner union raised the industrial dispute

over the charter of demand for wage revision and

other allowances, for the period covering from

07-05-2011 under basic wages, annual increment,

fixed dearness allowance, variable dearness allowances,

house

rent

allowance,

education

allowance,

conveyance allowance, social security and medical

assistance, house building advance, sanction of

personal loan, provision of food tiffin/lunch,

excursion allowance, life insurance facility, death

benefit, grades, profit sharing, festival advance and

gifts, co-operative society, sick leave, casual leave,

annual leave, marriage leave, encashment of earned

leave, rest room, birth day gift, supply of soap,

biscuit and towel, etc., festival holiday benefit, rain

coat, family day and sports day, social security for

punished workers, gift for completion of 15 years

646

LA GAZETTE DE L’ETAT

[29 May 2018

service, voluntarily retirement scheme, factory

shifting, transfer

for employee,

transfer of

employee, half day leave, recreation club, factory

closure,

retrospective

effect

and

supply

of

agreement and copies of agreement. While pending

the said dispute before the Conciliation Officer,

several Indian companies in Pondicherry region like

NCR Limted, Godrej Consumer Product, in their

wage settlement with the trade union increased the

wage revision to their workers average of more

than

` 6,000 per month. Though the petitioner

union produced the said wage settlement and

demanded wage increase at least on par with the

abovesaid Indian companies on Industry-cum-

regional basis, the respondent did not shown any

interest to negotiate with the petitioner union

before the Conciliation Officer, on the other hand,

in order to undermine the effort collective

bargaining of the petitioner union, followed delay

tactics and attempted to form management, puppet

union, and simultaneously negotiated with the rival

union which had no majority strength of workers.

But, fortunately all the efforts of management

ended in vain. The petitioner union understood the

delay tactics of the respondent management insisted

failure report, then the respondent management by

written letter, dated 29-08-2011 offered a sum of

` 2,806 per month as a final amount of wage

increase inclusive of all wage component. Since, the

said wage increase offered by the respondent not

even equated with the wage increase given by the

other industries, namely, NCR Private Limited,

Godrej Consumer Products, the petitioner union did

not accepted it. Eventually, the conciliation was

ended in vain. The petitioner union members are

permanent workers of the respondent factory

working for more than 10 to 15 years continuous

length of service. Initially they were appointed at

` 10 basic pay per clay and gross monthly salary was

` 600 to 1,000, after 15 years length of continuous

service, and after several negotiation, wage

settlement now they are getting basic pay ` 1,000

to ` 1,800 per month for unskilled workers. At present

the respondent is following method in fixing the

basic wage of the W-1 category worker in entry

level is ` 15 per day, the same was restricted

maximum ceiling of ` 64 per day. In the last wage

settlement, dated 07-05-2007 entry level in W-1

category workman was given increase of ` 2 per day

in basic wage which comes in a month of 26

working days a sum of ` 442 No. of days 26 X

Basic pay ` 15 per day = ` 390) + (No. of days

26 X increase Basic Pay ` 2 per day = ` 52). The

remaining portion of wage has been paid by wage of

fixed DA up to 576 points ` 1,350 per month and

` 1,365 as allowance which includes HRA,

conveyance allowance, canteen, nightshift, education

allowance, medical allowances, performance allowance,

attendance allowances. In totaling basic plus other

allowance for he workers in Grade W-1 has paid

` 2,975 per month and worker Grade W-3 has been

paid ` 3,230 per month which could not even meet

the requirement of statutory minimum wages fixed

to the industries in Puducherry Union Territory.

The major portion of the meager wage of the

workers has been paid by way of allowances,

particularly by way of production, incentive linked

with the production which might vary individual to

individual, efficiency, diligent, some time season to

season and also it vary with variation in the rate of

supply of raw material or with the Assistance

obtainable from machinery or vary by nature

interference. The abovesaid variation normally do

not even ensure the minimum wage to the individual

workers, the petitioner union members are poor

workers, though they have been employed in

multinational company, they have been paid very

meager wage. In comparing other Indian companies

who engaged in manufacturing of consumer

products like Godrej consumer. The petitioner

union member are paid very meager wage, which is

not even sufficient to maintain their substance, the

workers of the respondent had not even owned

house even after putting 15 years of length of

service in the respondent management. The workers

have been exploited by the respondent by paying

very meager wage. Comparing the workers

condition of the respondent factory, with the other

companies in the Puducherry factory, the workers

condition is very pathetic and they have not paid

wage to meet the present cost of living. Even a very

small amount offered by the respondent as wage

increase, they had not added the same in the basic

pay and they have been paying it as allowance.

Though the petitioner union workers rendered 15 years

of service in comparing their basic pay with workers

of the other companies in the Pondicherry region

it reflects vast difference, the workers has been paid

very low basic pay. Since the basic wage is taken to

calculation for determining the statutory benefits

the respondent deliberated, intentionally following

one or other method has not increased the basic pay

of the workers. The other multinational companies

in India paying better wage and other allowances to

647

29 May 2018]

LA GAZETTE DE L’ETAT

then-workers, the respondent had not come forward

to pay the wage on par with the Indian companies

which is running the business in the very some

Puducherry Union Territory and present formula

followed by the respondent in revising the wage is

unacceptable. About 99% of the workforce are

married and have children and also parents to

support. Therefore, for a family of four, to support

itself in Puducherry is preset cost of living the

following would be the

cost. Rent:

` 5,000,

Provision: ` 4,500, Milk ` 750, Education: ` 4,000,

Vegetab les: ` 2 ,0 0 0 , C o o king gas: ` 400,

Electricity: ` 700, Transport ` 2,000, Medical Expenses

` 5,000, Cloth: ` 800, Festival expenses: ` 2,500,

Entertainment expenses: ` 1,500, Social activities:

` 2,500, Total: ` 31,650. In order to equate the

said cost, the wage has to he increased under all

heads so as to commensurate the present cost of

living. In Godrej Consumer Products Limited,

Puducherry the workers are being paid gross salary

of ` 32,471.58 considering the present cost of

living and need of the workers. In comparing the

said industry the respondent having sound financial

position, paying capacity and it can accommodate

the demand of the worker to lead their decent life

in the present cost of living. The standard that

should guide the quantum of wage revision and

facilities are Industry-cum-region basis, financial

capacity of the employer and the following standard

also to be considered which are under the needs of

the workman and his dependents, the wage level of

the Supervisory, Executive and Managerial staff and

upwards, the overall expenditure pattern of the

respondent management on various counts, the part

history of how the workmen were exploited and

having to survive with exploited wages. The respondent

company’s yardstick for paying wages to the

production workforce is exploitative. The salary

structure of the chairman, Vice-Chairman, Executive

Company Staff, will show the paying capacity of the

respondent, and it justify the demand of the workers

who are engaged in direct production activity.

Before the Labour

Officer (Conciliation), the

respondent management by his letter, dated 29-08-2009

agreed to increase wage to a sum of ` 2,806 per

month, which inclusive all wage component as

initial payout. After the expiry of last wage

settlement on 06-05-2011 for the past one year, the

petitioner union members are suffering untold

hardship without wage increase. Since, the

respondent themselves agreed to increase the said

amount as initial payout in existing wage, the said

amount announced by the respondent may be

provided as interim relief of wage increase, pending

disposal of this dispute and no prejudice will cause

to the respondent or anyone. The petitioner has

strong case to succeed in their demand wage

increase and in any event the respondent cannot

dispute their paying capacity in paying the admitted

increase of wage before Labour Officer (Conciliation).

Since, the respondent himself agreed to pay the said

amount as initial payout in the existing wage, it can

be awarded as interim relief. Therefore, the

petitioner prayed this Court to pass an Award

revising the wages in terms of the charter of

demands, dated 10-02-2011 with retrospective

effect from 07-05-2011.

3. The brief averments of the counter in I.D(T).

No. 04/2012 filed by the respondent is as follows:

The respondent denied all the averments

contained in the claim petition except those that are

specifically admitted and stated that on 04-03-2013

it entered into a Long-term settlement for a period

of 4 years with the National Employee Trade union

(NETU) under section 18 (1) of Industrial Disputes

Act, wherein, all issues relating to increment of

wages and all other incidental privileges have been

mutually agreed upon between respondent and the

said union. The respondent widely circulated 18(1)

settlement,

dated 04-03-2013 amongst all its

workers by placing said settlement in the notice-board.

Respondent took all the pain and efforts to

explain the benefits under 18(1) settlement, dated

04-03-2013 to each of the workers who had

approached it with details. Each of the worker was

given full freedom to accept or to avoid the 18(1)

settlement. Slowly but, steadily, the workers started

realizing the benefits of 18(1) settlement and they

started giving individual acceptance to 18(1)

settlement, irrespective of their union affiliation.

Respondent extended benefits of 18(1) settlement

to all those workers who had given written letters

to it accepting the said settlement. There was

absolutely no force, inducements, threat, coercion

or enticement to any workers to accept the

settlement. The workers had voluntarily come

forward to accept the settlement and enjoy its

benefits. On this date 110 workers out of 124

workers have given written consent accepting and

ratifying the terms and conditions of 18(1)

settlement, dated 04-03-2013. The 110 workers had

relinquished right to contest the present ID and

have agreed to individually withdraw their claim.

Based on such individual request, the terms of

648

LA GAZETTE DE L’ETAT

[29 May 2018

settlement, dated 04-03-2013 was extended to

every signatory and all the benefits under the said

settlement are given to them. All the members and

office bearers of the other union namely, Hindustan

Unilever Tea Employees Union (HULTEA) has also

accepted 18(1) settlement, dated 04-03-2013. The

18(1) settlement shall be extended only on the date

of its acceptance, on specific demands from

individual workers for ex gratia for the differential

period between the date of 18(1) settlement and

date of acceptance, respondent agreed for the same

and respondent paid ex gratia amount of ` 84,950 to

each of the individual workers accepting terms of

settlement subject to the deduction made for their

absence. All the amount are credited to the accounts

of individual works and they have also utilized those

benefits. Respondent has also paid revised wages as

per the new settlement, dated 04-03-2013 with

effect from 01-04-2013, 89% of the entire work

force in respondent’s factory have accepted and

ratified the 18(1) settlement, dated 04-03-2013.

Only the few disgruntled office bearers of the

petitioner and their loyalists, who are numbering

few have refused to accept the 18(1) settlement and

are continuing to litigate the matter. Once a wage

structure is accepted by a majority of workers in

a factory and such wage structure is successfully

implemented for more than 2 years 9 months and

benefits have been given to majority of workers

based on such wage structure, there cannot be

a different wage fixation for a miniscule minority

workers as what is good and applicable to majority

is also good and applicable to minority workers.

The petitioner who represents only a miniscule of

workers cannot insist on a separate wage structure

on the basis of the Charter of demand, dated

10-02-2011. The increments under the 18(1)

settlement, dated 04-03-2013 on wage is closely

linked to two important components which are

(a) Performance Linked Incentive Scheme [PLIS]

annexed as Annexure-K in the said settlement, and

(b) increased machine speed and manning as given

in Annexure-K of the said settlement. As per the

new 18(1) settlement, there is an average increase

of 11% in productivity than what was agreed under

previous settlement, dated 07-05-2007. This increase

in productivity is strictly within the statutory period

of 8 hours of work and any extra work is being

suitably compensated by way of OT as per statutory

provisions. The workers could achieve increase in

productivity because of (a) their zeal to earn more,

(b) introduction of latest state of art operating

technology, (c) improving the quality and efficiency

of machines, (d) the excellent maintenance of

machines, (e) improvement in blending

and

processing techniques and packing patterns,

(g) effective management of time and manpower,

(h) reduction in wastages, (i) Raw material,

packing material and (j) start up and shut down

time. The workers who have signed 18(1) settlement

are achieving approximately 11% more production

within the statutory time of 8 hours of work and

without any additional discomforts and are thus

earning handsomely. The average gross salary of

workers who have singed the new 18(1)

settlement is to the tune of ` 17,049 excluding

retrials. However, the workers who have not signed

said 18(1) settlement continue to give production

as per old settlement, dated 07-05-2007 and draw

wages according to the said old settlement.

The petitioner union which is fighting for wage

increase is not advising its workers to earn such

increase by producing more within the statutory

period. The workers who have not, signed the new

settlement are able to reach the maximum level of

productivity as per 12(3) settlement, dated

12-05-2007 within 5 to 6 hours of their employment

and once they reach such maximum level, they

withdraw from the machines and spend the

remaining time idling in the factory. The respondent

has specific data in the form of log book which

shows the exact amount of time each worker spends

on the machine. Inspite of being capable of

producing more than what was agreed under previous

settlement, dated 07-05-2007 due to various

factors, petitioner is instigating the workers to

deliberately refuse increase production and is

demanding wage revision without any value

addition to respondent. Such negative mindset of

petitioner union is the primary reason for failure

of all negotiations regarding wage revision. The

petitioner is not willing to accept PLIS but, is only

demanding wage increment which is neither legal

nor moral. The said settlement is open to petitioner

union who are hardly 14 workers even as on this

date and if, they are willing to sign the same with

all

the

benefits,

privileges,

liabilities

and

responsibilities attached to the said settlement, the

respondent is willing to extend the said settlement

with immediate effect. Since, the issue of wage

revision is fully and finally settled and majority of

the individual workers have accepted the terms of

settlement, dated 04-03-2013, the present dispute

has become infructuous and hence, the same is liable

649

29 May 2018]

LA GAZETTE DE L’ETAT

to be dismissed. Petitioner has not justified with

any semblance of evidence as to how they are

eligible for wage revision. Minimum wages for

respondent’s industry or any tea blending and

manufacturing industry is not fixed by Government

of Puducherry. As on 10-02-2011 when the charter

of demand for wage revision was submitted by

petitioner union, the minimum floor level wages

in Puducherry was ` 115 per day. But, the minimum

gross wages drawn by workers in lowest grade in

May, 2011 was more than ` 10,000 which was

substantially higher than minimum floor level wages

on that date. The petitioners are bound to prove

their case regarding entitlement of wage revision

and cannot demand it as a matter of right without

proving their eligibility to such wage revision. None

of the industries that are being quoted by petitioner

manufactures, the product that is produced by the

respondent. The fundamental principle of wage

revision is industry-cum-region basis, where the

wage structure prevailing in the similar industries

in the region is taken as a bench mark for deciding

the wage revision issue. Hence, the very comparison

of wages settlement of such industries to respondent

company is incorrect. The petitioner is not comparing

wage details of other manufacturing giants in

Puducherry like Asian Paints, MRF Ltd., Whirlpool

India Limited, TVS Lucas, Sundaram Fasteners, TTK

Limited, etc., which are also located in Puducherry.

Before fixing wages, this Court will have to be

appraised of the existing wage patterns in all these

industries in Puducherry which can give a broader

indication of wages paid by these similar sized

industries. The respondent unit was established

during November 1997. Employees were recruited

and confirmed in service post completing their

training period around 1999. After post confirmation,

they were given standard wages, for Assistant

Operators - the basic started with ` 15 per day and

for Operators, the basic started with ` 25 per day.

In addition to this, FDA and VDA are part of their

PF wages. The average basic of Assistant Operator

unskilled worker as mentioned by petitioner union

as on August 2012 is ` 2,036. In addition to this,

they are paid ` 2,114 as FDA and ` 1,675 as VDA

and hence, the total PF wages paid is around

` 6,815. During 2007 LTS, the Pay Scale slab of Wl

was increased to ` 97. The per day increment was

increased from ` 2 to ` 5.50. During 2007 LTS the

Pay Scale for W1 was increased from ` 64 to ` 97

per day. Similarly for W3 the Pay Scale was increased

from ` 95 to ` 143 per clay. The respondent is

paying FDA for 588 points and not 576 points which

is ` 2,114 per month. In addition to this VDA is

paid for points above 588 at the rate of ` 5 per

point. Currently VDA is ` 3,040 per month. The total

allowances for Wl worker is ` 2,975 per month and

for W3 worker it is ` 3,175 per month. The average

incentive earned across all grade is around ` 2,889

per month. Hence, per month the total gross wages

for WL1 worker is around ` 12,679 and for W3

worker is around ` 13,965. Out of which PF wages

amounts to ` 6,815 per month for Wl and ` 7,901

per month for W3 which is well above the minimum

wages fixed to the Industries in Puducherry.

The respondent is paying fair wages to its workmen

and also providing them reasonable service

conditions, which is far better and superior than that

is prevalent in similar industries in the region.

As many as three long-term settlement including

the present LTS were signed between respondent and

its workers including the petitioner. Even in the

present 18(1) settlement, dated 4th March 2013

wages and allowances paid to the workmen of the

respondent factory is fair and reasonable and

compared favourably with those obtaining in similar

other establishments in the region. Any wage

revision cannot be viewed in isolation, ignoring the

increase in productivity, especially when the

respondent continues to carry out rationalization,

modernization and standardization of its plants and

machineries for increasing its products. Hence, the

Tribunal

should

consider

improvement

in

productivity and take into consideration the wages

prevailing in establishments which are engaged in

the manufacture of tea or other beverages of similar

size as that of respondent before any relief by way

of increase in wages could be considered. The claim

statement is devoid of merits, hicks bona fides and

is liable to be dismissed.

4. The brief averments of the claim statement in

I.D.(T). No. 07/2014 filed by the petitioner is as

follows:

The 1st petitioner is a registered trade union,

registered under the Trade Union Act, 1926 and its

Registration No. l483/RTU/2007. The members of

the 1st petitioner union are permanent workers

working in the respondent factory. The 1st

petitioner having 96 members out of 121 total

permanent workers. As such the 1st petitioner is a

majority trade union representing majority permanent

workers of the respondent factory. Till 2013 there

were only two trade union namely HLL Tea Workers

650

LA GAZETTE DE L’ETAT

[29 May 2018

welfare union and Hindustan Unilever Tea Unit

employees union which represent the cause of

entire workers of the respondent factory. The service

condition of the workers and their wage are

determined, revised time to time based on the

long-term wage settlement signed between the

respondent management and the workers’ representative

i.e., Majority trade union. As such, the 1st petitioner

being majority trade union in the past addressed the

grievance of the workers negotiated the revision of

wages and other service condition of the workers

with the respondent management signed a just and

fair long-term settlement.

The last long-term

settlement, dated 07-05-2007 for four years period

was signed between the 1st petitioner and the

respondent management in the presence of Labour

Officer (Conciliation) under section 12(3) of the

Industrial Dispute Act. This settlement was come to

expire in the month of May, 2011. In the said

settlement itself, the 1st petitioner and respondent

had agreed to extent the said settlement till the new

settlement signed between the parties to the said

settlement. Accordingly, the said 12(3) settlement

is still in force binding all the parties to the

settlement as well as other workers, other minority

trade union. The 1st petitioner, on expiry of 4

years duration as agreed in the said 12(3)

settlement, dated 07-05-2007 submitted a fresh

charter of demand for revision of wage and other

allowances of the workers working in the

respondent factory. The respondent did not consider

the demand of the 1st petitioner. Hence, the 1st

petitioner raised the said issue of revision of wage

as an industrial dispute before the Labour Officer

(Conciliation). While pending the said Industrial

dispute the respondent with help of eight workers

formed a management puppet union in the name and

style of National Employees Trade Union and got

registered the same and thereafter, the respondent

themselves drafted the terms and conditions of

long-term settlement and got signed with the management

newly formed trade union which had only eight

members. After signing such a 18(1) settlement with

a National Employees Trade Union the respondent

threatened all the individual workers and used all

sort of unfair labour practice against them to adopt

and accept the terms and conditions of the said

18(1) settlement. Further, the persons who had

signed 18(1) settlement were given wage increase

and all other benefits. On the other hand the workers

who had not signed or adopted the terms of said

18(1) settlement were denied wage increase and

they were discriminated from the workers who

signed 18(1) settlement. In this regard the

petitioner union preferred a complaint before the

Conciliation Officer. The Conciliation Officer advised

the respondent not to show any discrimination

among the workers in payment of wage and follow

the terms of 12(3) - settlement till the wage dispute

pending before the Industrial Tribunal is resolved

between the parties and further advised the

respondent management not to obtain any signature

in the 18(1) settlement or obtain any Bond from the

workers against the interest of petitioner union

workers. The respondent did not pay any heed on the

advice of the Conciliation Officer and they continued

their illegal activity and obtained a Bond, signature

from the individual workers to adopt the said 18(1)

settlement against them. The respondent formed the

management puppet union in order to undermine the

petitioner union activities and their collective

bargaining power. The settlement signed with NETU

trade union without any negotiation or discussion

with the majority workers or their representative is

illegal, unfair and it is against the interest of the

larger working class of the respondent factory. The

said settlement deprives the workers right which

already accrued under the 12(3) settlement. The wage

structure fixed in the 18(1) settlement is very

meager in compare to the other industries in that

region. The wage increase was given unilaterally

without consultation or negotiation with the

individual works or their representative. The wage

increase offered by the respondent in the said 18(1)

settlement is not sufficient to the workers to meet

the present escalated cost of living. The said 18(1)

settlement is unfair and illegal and it will not bind

the petitioner union workers and therefore, prayed

this Court to pass an Award holding that 18(1)

settlement, dated 04-03-2013 signed between the

respondent and NETU trade union while pending the

industrial dispute I.D. No. 4 of 2012 is unfair,

illegal and it will not bind the petitioners unions’

members, the act of the management showing

disparity in wages and incentive among the workers

who have signed and not signed 18(1) settlement and

obtained an individual Bond are illegal and against

the terms of Equal Remuneration Act and against

industrial principles of equal work equal pay, the

petitioner union workers are entitled equal wages

and incentive on par with the other workers and the

service condition of the workers agreed in the

12(3) settlement, dated 07-05-2007 shall be

extended, adhered by both parties to the said

651

29 May 2018]

LA GAZETTE DE L’ETAT

settlement till the wage dispute I.D. No. 4 of 2012

pending before this Tribunal is resolved and the

respondent committed unfair labour practice under

Schedule V part I clause l(c), 2 (a), 2 (b), 3, 13 of

the Industrial Dispute Act.

5. The brief averments of the counter in I.D(T). No.

07/2014 filed by the respondent is as follows:

The respondent denied all the averments

contained in the claim petition except those that are

specifically admitted and stated that disputes

referred by the Government of Puducherry,

especially the 1st and 4th references regarding

justification of 18(1) settlement, dated 04-03-2013

and unfair labour practice is beyond the jurisdiction

of this Tribunal. Neither the validity or justification

of 18(1) settlement nor the issue of unfair labour

practice are enumerated under Third Schedule and

therefore, they cannot be a subject matter of dispute

that could be adjudicated by Industrial Tribunal under

section 7 (A), read with Third Schedule of the

Industrial Disputes Act. Claim of unfair labour

practice, the Industrial Disputes Act provides a

special and specific procedure under section 25(T)

and 25(U) of Chapter 5(C) of the Industrial Dispute

Tribunal. It is purely a matter of determination by

the Executive Officers of the Labour Department and

the Labour Department can only initiate criminal

prosecution under section 34 of the ID Act.

Petitioners have not chosen to implead the other

signatory of the 18(1) settlement, dated 04-03-2013

namely National Employees Trade union even

before the Labour Officer (Conciliation). Petitioners

have no locus standi and privity to challenge 18(1)

settlement, dated 04-03-2013 as they are not

parties to the said settlement, therefore, they cannot

question its validity, genuineness or justification of

said settlement on any grounds before any Forum.

Records clearly reveal that the 1st petitioner union

represents only a minuscule of workmen. There is

no legal impediment in signing 18(1) settlement

with another consenting trade union during

pendency of present dispute. section 18(2) of the

I.D. Act makes it clear that an agreement under

18(1) is enforceable through Court of law.

Therefore, respondent was well within our legal

rights to enter into an 18(1) settlement with a

registered union and the same cannot become

unjust, unfair or unreasonable by any means. All the

members and office bearers of the 2nd petitioner

have accepted the 18(1) settlement. Only a hand full

of 14 workers, who are the office bearers of the

1st petitioner union are adamant and have not

accepted the said settlement. There was absolutely

no force, inducements, threat, coercion or enticement

to workers signing individual consent, letter

accepting 18(1) settlement. The individual workers

in their individual wisdom have understood the

benefits that flow from 18(1) settlement, dated

04-03-2013 and have volunteered to claim the

benefits of the said settlement out of their own will

and volition and they have received all the

monetary benefits under the said settlement. They

continue to receive the benefits, and perform the

corresponding obligation under 18(1) settlement,

dated 04-03-2013 even after expiry of two years

from the date when the said settlement was signed.

None of the workers accepting 18(1) settlement,

dated 04-03-2013 and receiving the benefits there

under have lodged any protest or objections with

respect to extension of the said settlement to them

or regarding change in service conditions. Even the

office bearers of 2nd petitioners union namely,

R. Anandhu, President, A. Vengadesan, Secretary

and V. Ruthramurthy, Teasurer have also given

individual consent letters for extension of the

benefits of 18(1) settlement, dated 04-03-2012 and

they too continue receive full benefits under the

said settlement. The 18(1) settlement is binding on

the unsigned members of the petitioner unions

because the same is accepted by overwhelming

majority of 89% of the workers including the office

bearers of the 2nd petitioner and only a miniscule

of 14 out of 121 workers are objecting to the same.

The disparity in wages between the workers who

have not accepted 18(1) settlement and those who

have accepted is only by virtue of application of

specific terms and conditions of 18(1) settlement,

dated 04-03-2013 and not otherwise. When the said

settlement is not binding on the petitioners, even

the benefits flowing out of such settlement will not

be payable to them. The 18(1) settlement, dated

04-03-2013 has brought in change in service

conditions of the signatories and they earn more

because they produce more either collectively or

individually. Those who have not signed the 18(1)

settlement, dated 04-03-2013 are not obliged by

the production and productivity parameters agreed

under 18(1) settlement, dated 04-03-2013 and their

service conditions are continued to be regulated by

the earlier settlement, dated 07-05-2007. The petitioners

demand for equal pay on par with those who have

signed the 18(1) settlement, dated 04-08-2013

without a corresponding obligations of equality in

652

LA GAZETTE DE L’ETAT

[29 May 2018

service condition as per 18(1) settlement, dated

04-03-2013 would be unfair, unjust and against the

ethos of industrial jurisprudence and Indian

Constitution. There is absolutely no unfair labour

practice by the respondent. The petitioners have no

locus to seek a declaration on unfair labour practice.

None of the provisions enlisted by petitioners are

applicable to the facts and circumstances of the

case. The claim petition filed by petitioners is

devoid of merits, lacks bona fides and is liable to be

dismissed.

6. As per order in I.A. No. 162/2014 the enquiry

was conducted jointly in I.D. (T). No. 04/2012 along

with other I.D. (T). No. 07/2014 and in the course of

enquiry, on the side of the petitioner PW.1 was

examined and Ex.P1 to Ex.P53 were marked and on

the side of the respondent management RW.1 was

examined and Ex.R1 to Ex.R20 were marked.

7. The point for consideration is:

I.D(T). No. 4/2012 :

Whether the industrial dispute raised by the

petitioner union in I.D(T). No. 4/2012 against the

respondent management over charter of demands

such as wage revision, annual increment, HRA,

educational allowance, HBA and other allowances,

etc., is justified or not and if, justified what is the

relief entitled to the petitioner union?.

I.D(T). No. 7/2014:

Whether the industrial dispute raised by 1st and

2nd petitioner unions against the respondent

management over the 18(1) settlement arrived at

between the management and another union on

04-03-2013 during the pendency of the industrial

dispute before the Industrial Tribunal, Puducherry

and the claim of the union workmen for equal wages

and incentive on par with the other workmen and to

extend the benefits of 12(3) settlement, dated

07-05-2007 till a new wage settlement is entered

are justified or not and whether there is disparity

in wages and incentives among the workmen who

have signed and not signed the 18(1) settlement and

individual Bond and whether there was any unfair

labour practice adopted by the management among

the union workmen under section 25(T) of the

Industrial Disputes Act, 1947 or not.

8. Both sides are heard. The pleadings of the

parties, the evidence let in by either sides and the

exhibits marked on by either side are carefully

considered. The learned Counsel for the petitioner

argued that, the industrial dispute raised by the

petitioner is reasonable and the petitioners are entitled

for wage revision and other attendance benefits as

claimed by them and also entitled for equal wages and

incentives on par with the other workmen and to

extend the benefits of 12(3) settlement, dated 07-05-2007

and the Tribunal has to justify the industrial dispute

raised by the petitioners for charter of demand and for

equal wages as claimed in the claim petitions. On other

hand, the learned Counsel for the respondent argued

that the petitioners are not entitled for any relief as

claimed by them and the industrial dispute raised by

the petitioners are unjustified and the petitioners are

not entitled for any benefits as claimed in the charter

of demand. On the side of the respondent written

argument was filed and the same was carefully

considered. In support of his case the learned Counsel

for the respondent relied upon the Judgments reported

in CDJ 1976 SC 099, CDJ 2005 Kar HC 403, CDJ

2005 SC 843, CDJ 2005 BHC 334, CDJ 2001 BHC

326, CDJ 1981 SC 130, CDJ 2002 BHC 1320, CDJ

2011 MHC 1435, CDJ 1996 SC 240, CDJ 1978 SC

028, CDJ 2011 BHC 611, CDJ 2004 BHC 2013, AIR

1978 SC 982, CDJ 1993 MHC 276, CDJ 1997 BHC

017, 1969 (1) LLJ 61 Kerala.

9. It is the case of the petitioner in I.D(T). No.

4/2012 that the members of the petitioner union are

working at the respondent establishment and that there

was a settlement between the management and the

workers from time to time and that the petitioner

union is the majority union recognized by the

respondent management, entered into last wage

settlement, dated 07-05-2007 for 4 years period and

the same was expired on 06-05-2011 and therefore, the

petitioner union has sent a letter of demand to the

respondent management on 11-02-2011 and demanded

for wage revision which was not considered by the

respondent management with an intention to threaten

the workers, and suppress the demand of the workers

posed a counter demand to increase the machine speed

from 29 units to 39 units with the existing workforce,

and also demanded the workers to accept the proposed

erection of auto machine which was likely to lead

retrenchment of existing workers for which the

petitioner

union

objected

and

the

respondent

management has not offered wage increase and hence,

no amicable settlement was arrived in the negotiation

talk and that therefore, the industrial dispute was raised

by the petitioner union on 15-06-2011 before the

Labour Officer (Conciliation), Puducherry for wage

revision and other allowances, for the period covering

from 07.05.2011 and when the said industrial dispute

653

29 May 2018]

LA GAZETTE DE L’ETAT

was pending before the Conciliation Officer, some

other companies have entered their wage settlement

with the trade union and the wage was revised to their

workers average of more than ` 6,000 per month and

even though the same was produced before the

respondent management to increase the wage at least

on par with the abovesaid Indian companies on

Industry-cum-regional

basis

the

respondent

management did not shown any interest to negotiate

with the petitioner union before the Conciliation

Officer and subsequently, the management has

negotiated with the rival union which had no majority

strength of workers and offered a sum of ` 2,806 per

month as a final amount of wage increase inclusive of

all wage component which is not even equated with the

wage increase given by the other industries and the

petitioner union did not accepted it.

10. It is the further case of the petitioner union that

petitioner union members are in service for more than

10 to 15 years continuous length of service and their

gross monthly salary was ` 600 to 1,000 and even

after 15 years length of continuous service and after

several negotiation their salary was raised to

` 1,000

to ` 1800 per month for unskilled workers and that in

the last wage settlement entered on 07-05-2007 entry

level in W-1 category workmen were given increase

of ` 2 per day in basic wage and that therefore, they

have been paid only ` 2,975 per month and Grade W-3

workers have been paid ` 3,230 per month which

could not even meet the requirement of statutory

minimum wages fixed to the industries in Puducherry

Union Territory and the major portion of the meager

wage of the workers have been paid by way of

allowances, particularly by way of production

incentive in comparing other Indian companies who

engaged in manufacturing of consumer products and,

the petitioner union member are paid very meager

wage, which is not even sufficient to maintain their

substance and the workers of the respondent

establishment cannot even owned house even after

putting 15 years of length of service in the respondent

management.

11. It is the further case of the petitioner union that

the respondent management has exploited the workers

by paying very meager wage and that though the

petitioner union workers rendered 15 years of service

in the respondent establishment the workers have been

paid very low basic pay since the basic wage is taken

to calculation for determining the statutory benefits

and other companies are paying better wage and other

allowances to their workers and the respondent

management had not come forward to pay the wage on

par with the other companies which is running the

business in the very same Puducherry Union Territory

and that therefore, the present formula followed by

the respondent in revising the wage is unacceptable and

as per the cost of living the workers are required

` 31,650 to run their family and that therefore, the

wages has to be increased under all heads so as to

commensurate the present cost of living and the

company in the name of Godrej Consumer Products

Limited, Puducherry is paying the salary of ` 32,471.58

to

their

workers

and

though

the

respondent

management is having sound financial position and,

paying capacity the demand of the worker can be given

and wage can be revised and that the respondent

management has agreed to increase wage to a sum of

` 2,806 per month, which inclusive all wage component

and therefore, prayed this Court to pass an Award

revising the wages in terms of the charter of demands,

dated 10-02-2011 with retrospective effect from

07-05-2011.

12. Further, the petitioner union along with 2nd

petitioner union in I.D(T). No. 07/2014 has raised the

industrial dispute before the Conciliation Officer over

the 18(1) settlement which was entered on 04-03-2018

with another union by the respondent management

during the pendency of the industrial dispute for wage

revision wherein, the conciliation was failed and the

reierence has been sent to this Tribunal to decide the

said dispute and the 1st petitioner union has filed the

claim statement praying to declare that the 18(1)

settlement arrived at, between the respondent

management and National Employees Trade Union

(NETU) on 04-03-2013 while pending dispute in

I.D.(T). No. 04/2012 is unfair and illegal and it would

not bind the petitioner union members and to declare

that there was some disparity in wages and incentives

among the'workers who have singed and not signed the

settlement and obtained an individual Bond are illegal

and against the terms of Equal Remuneration Act and

against industrial principles of equal work equal pay

and to declare that members of the petitioner union are

entitled for equal wages and incentive on par with the

other workers and the service condition of the workers

agreed in the 12(3) settlement, dated 07-05-2007 and

to declare that the respondent management has

committed unfair labour practice under schedule V part I

clause 1(c), 2 (a), 2 (b), 3, 13 of the Industrial Dispute

Ac t s t a ti n g t h a t t h e 1 s t p e t i t i o n e r u n i o n i s

a registered trade union having 96 members out of 121

total permanent workers and it is a majority trade

654

LA GAZETTE DE L’ETAT

[29 May 2018

union representing majority permanent workers of the

respondent factory and that till 2013 there were only

two trade unions namely, HLL Tea Workers Welfare

Union and Hindustan Unilever Tea Unit Employees

Union which represent the cause of entire workers of

the respondent factory and that the service condition

of the workers and their wage are determined, revised

time to time based on the long-term wage settlement

signed between the respondent management and the

workers' representative of the majority trade union and

that the last long-term settlement arrived at between

them on 07-05-2007 for four years period before the

Labour Officer (Conciliation) under section 12(3) of the

Industrial Dispute Act which came to expire in the month

of May, 2011 and that the 1st petitioner union and the

respondent management had agreed to extend the said

settlement till the new settlement, arrived between

them.

13. It is further stated by the petitioner union that

after the expiry of 4 years duration as agreed in the

said 12(3) settlement the union has submitted a fresh

charter of demand for revision of wage and other

allowances of the workers working in the respondent

factory and that the respondent did not consider the

demand of the 1st petitioner union and that therefore,

the union has raised the industrial dispute before the

Labour Officer (Conciliation) regarding revision of

wages and while so with the help of eight workers the

respondent has formed a management puppet union in

the name and style of National Employees Trade Union

and got registered the same and thereafter, the

respondent themselves entered the settlement between

them under section 18(1) settlement of the Act and

threatened all the individual workers by using all sort

of unfair labour practice against them to adopt and

accept the terms and conditions of the said 18(1)

settlement and that the workers who had not signed or

adopted the terms of said 18(1) settlement were

denied wage increase and they were discriminated from

the workers who signed 18(1) settlement and that

therefore, a complaint was preferred before the

Conciliation Officer who has advised the respondent

that to avoid discrimination among the workers in

payment of wage and follow the terms of 12(3)

settlement till the wage dispute pending before the

Industrial Tribunal is resolved between the parties and

further advised the respondent management not to

obtain any signature in the 18(1) settlement or obtain

any Bond from the workers against the interest of

petitioner union workers and that the respondent did

not pay any heed on the advice of the Conciliation

Officer and that the respondent management has

formed the management puppet union in order to

undermine the petitioner union activities and their

collective bargaining power and that the settlement

arrived at between the NETU trade union with the

management without any negotiation or discussion

with the majority workers or their representative is

illegal unfair and against the interest of the larger

working class of the respondent factory and that the

wage structure fixed in the 18(1) settlement is very

meager in compare to the other industries in that

region and that the wage increase was given unilaterally

without consultation or negotiation with the individual

workers or their representative and the wage increase

offered by the respondent under 18(1) settlement is

not sufficient to the workers to meet the present

escalated cost of living and hence, the settlement

under section 18(1) is illegal and it will not bind the

petitioner union workers.

14. To establish the case of the petitioner unions

in joint trial PW.l was examined and he has stated that

the averment made in the claim statement in this case

as part and parcel of the evidence and in support of

their case the petitioner unions has exhibited Ex.P1 to

Ex.P53. Ex.P1 is the copy of petitioner's union

Registration Certificate. Ex.P2 is the copy of petitioner’s

union members list. Ex.P3 is the copy of charter of

demand submitted by the petitioner union on

10-02-2011 and its covering letter. Ex.P4 is the copy

of respondent letter for receipt of the petitioner

charter of demand. Ex.P5 is the copy of claim

statement filed by the petitioner’s union before the

Labour Officer (Conciliation) over the dispute of charter

of demand of wage revision and other allowances.

Ex.P6 is the copy of Conciliation Officer. notice

over the dispute of charter of demand raised by the

petitioner union. Ex.P7 is the copy of respondent

reply to the Conciliation Officer. Ex.P8 is the copy of

respondent reply to the Conciliation Officer. Ex.P9

is the copy of petitioner’s union memo filed by the

Conciliation Officer. Ex.P10 is the copy of petitioner’s

union complaint to Commissioner of Labour. Ex.P11

is the copy of petitioner’s union complaint to Labour

Officer (Conciliation). Ex.P12 is the copy of petitioner’s

union complaint to respondent management. Ex.P13 is

the copy of respondent’s letter to the Conciliation

Officer. Ex.P14 is the copy of petitioner union letter

to the Conciliation Officer. Ex.P15 is the copy of

failure report issued by the Conciliation Officer.

Ex.P16 is the copy of petitioner’s union letter to

the Conciliation Officer. Ex.P17 is the copy of

655

29 May 2018]

LA GAZETTE DE L’ETAT

Government notification. Ex.P18 is the copy of Court

notice in ID. No. 4 of 2012. Ex.P19 is the copy of

financial performance (10 years record performance).

Ex.P20 is the copy of wage settlement arrived between

NCR Corporation India Limited (Vs.) and its workman.

Ex.P21 is the copy of revised pay structure of the

employees of NCR for October, 2011. Ex.P22 is the

copy of Pay Slip of the employees of the respondent

namely, V. Sivasakthi. Ex.P23 is the copy of pay slip

of the employees of the respondent namely, V. Ayyanar.

Ex.P24 is the copy of wage settlement entered between

the MRF Limited, Puducherry and its workman during

2011-2015. Ex.P25 is the copy of wage settlement

entered between the Godrej Consumer Products,

Puducherry and its workman during 2010-2012.

Ex.P26 is the copy of pay structure of employees of

Godrej. Ex.P27 is the copy of wage settlement

LUCKAS TVS, Puducherry, Ex.P28 is the copy of

petitioner union raised an industrial dispute ID. No.

819 of 2013. Ex.P29 is the copy of petitioner union

raised an industrial dispute ID. No. 1706 of 2013

before Labour Officer (Conciliation). Ex.P30 is the copy

of conciliation notice - ID. No. 819 of 2013. Ex.P31

is the copy of petitioner union letter to the

Conciliation Officer, Ex.P32 is the copy of petitioner

union letter to the Conciliation Officer. Ex.P33 is the

copy of conciliation notice - ID. No. 1706 of 2013.

Ex.P34 is the copy of petitioner union letter to the

Conciliation Officer. Ex.P35 is the copy of petitioner

union letter to the Conciliation Officer. Ex.P36 is the

copy of petitioner union letter to the Factory

Manager. Ex.P37 is the copy of petitioner union letter,

to the Conciliation Officer. Ex.P38 is the copy of

petitioner union letter to the Chief Inspector of

Factories. Ex.P39 is the copy of the petitioner union

letter to the Commissioner, Labour Department.

Ex.B40 is the copy of show cause notice to the

E. Devarasu. Ex.P41 is the copy of Devarasu letter to

the respondent, Conciliation Officer. Ex.P42 is the

copy of S. Murugan letter to the Commissioner of

Labour. Ex.P43 is the copy of V. Venketesan letter to

the Commissioner of Labour. Ex.P44 is the copy of

V. Venketesan Medical Certificate. Ex.P45 is the copy

of respondent management letter to V. Venketesan,

Token No. 29. Ex.P46 is the copy of K. Aathinarayanan

letter to the Commissioner of Labour. Ex.P47 is the

copy of show cause notice to the T.N. Rajendra Kumar.

Ex.P48 is the copy of T.N. Rajendra Kumar reply to

show cause notice, dated 05-11-2014. Ex.P49 is the

copy of show cause notice to the R. Sakthimurugan.

Ex.P50 is the copy of Sakthi Murugan reply to show

cause notice, dated 05-11-2014. Ex.P51 is the copy

of

conciliation

failure

report.

Ex.P52

is

the

Government reference. Ex.P53 is the copy of Court

notice in ID. No. 7 of 2014 raised by the petitioner

union.

15. On the other hand, on the side of the

respondent the Senior Executive HR of the respondent

company was examined as RW.1 who has been

authorized by the respondent management to give

evidence on behalf of the respondent Factory and he

has stated in his evidence that the respondent

management entered into a long-term settlement for

a period of 4 years with the National Employee Trade

Union (NETU) on 04-03-2013 under section 18 (1) of

Industrial Disputes Act in which all issues relating to

increment of wages and all other incidental privileges

have been mutually agreed upon between respondent

management and the members of the said union and the

said settlement was circulated amongst all its workers

by placing it in the notice-board and all the workers

have realized the benefits of 18(1) settlement and they

have given individual acceptance to 18(1) settlement,

irrespective of their union affiliation and they have

voluntarily come forward to accept the settlement and

they have enjoyed its benefits and all the members of

the union including the office bearers of the union

were offered their acceptance and obtaining the

benefits of the settlement and the benefits of the 18(1)

settlement was given to every individual who have

signed the settlement and all the members and office

bearers of Hindustan Unilever Tea Employees Union

have also accepted 18(1) settlement which was entered

on 04-03-2013 and benefits were extended to person

who have accepted the said settlement from the date

of their acceptance and the respondent management has

the paid ex gratia amount of ` 84,950 to each of the

individual workers, who have accepted the terms of

settlement and amount were credited to the accounts

of individual worker and they are receiving revised

wages as per 18(1) settlement, dated 04-03-2013 with

effect from 01-04-2013 and that 89% of the entire

work force in respondent's factory have accepted and

ratified the 18(1) settlement and only the few

disgruntled office bearers of the petitioner and their

loyalists have refused to accept the 18(1) settlement

and are continuing to litigate the matter.

16. It is the further evidence of RW.1 that majority

have accepted the wage structure and the said of workers

in a factory settlement arrived at under section 18(1)

was implemented for more than 4 years and benefits

were given as per new settlement and as per the new

18(1) settlement, there is an average increase of 11%

656

LA GAZETTE DE L’ETAT

[29 May 2018

in productivity than the earlier settlement and the

workers who have signed the settlement have achieved

approximately 11% more production within the

statutory time of 8 hours of work and the members of

the petitioner union gave their letters on 06-08-2013

and they have categorically refused to increase the

production in terms of settlement executed under

section 18(l) of the Act and that they have been fighting

for wage increase and petitioner union has instructed

the workers to deliberately refuse to increase the

production and the respondent management has already

offered ` 2,806 as an initial payment of wages and that

the 18(1) settlement was always open to the petitioner

union members who are hardly 14 members accepted

the same with all the benefits, privileges, liabilities and

responsibilities attached to the said settlement and

that the respondent was willing to extend the said

settlement and that therefore, the workers who have not,

accepted the 18(1) settlement are not given the

benefits of the said settlement because the said

settlement was expired and another wage settlement

was entered between the majority union and since the

earlier settlement was lapsed.

17. It is the further evidence of RW.l that the

petitioner has not justified with any semblance of

evidence as to how they are eligible for wage revision

and the wages being paid by the respondent is

substantially higher than the minimum floor level

wages and the petitioners are bound to prove their case

regarding entitlement of wage revision and cannot

demand it as a matter of right without proving their

eligibility to such wage revision and that the similar

companies are not giving the wage revision to the tune

of ` 6,000 and the said companies are manufacturing

the products that are not produced by the respondent

factory and hence, the wage revision where the wage

structure prevailing in the similar industries in the

region is taken as a bench mark for deciding the wage

revision issue and the other allegations of the

petitioner union are denied by him.

18. Further, RW.l has deposed with regard to the

industrial dispute in I.D(T). No.7/2014 that references

regarding justification of 18(1) settlement, dated

04-03-2013 and unfair labour practice is beyond the

jurisdiction of this Tribunal and the disputes

enumerated under Third Schedule alone can be

adjudicated by this Tribunal and that validity of

justification of 18(1) settlement are not enumerated

under Third Schedule and therefore, it cannot be a

subject matter of dispute that could be adjudicated by

the Tribunal under section 7(A), read with Third

Schedule of the Industrial Disputes Act and that

Tribunal has no power to decide the claim under

section 25(T) and 25(U) of chapter 5(C) of the

Industrial Dispute Tribunal and it can direct only

remedial measures for such unfair labour practice

initiate criminal prosecution under section 34 of the

ID Act and that the petitioners has not added the union

who have signed the 18(1) settlement in the present

dispute and hence, it cannot be challenged without

adding them as a party to the proceedings and this

dispute is not maintainable for misjoinder of

necessary party since the petitioners have not

impleaded the signatory of the said settlement namely,

National Employees Trade Union and that the

petitioners have no privity to challenge 18(1)

settlement since they are not parties to the said

settlement and it cannot be questioned by any other

parties who are not signatory of the said settlement

and the Judicial forum have encouraged the settlement

of dispute between the parties even after passing of

Award with intention to permit and that 18(1)

settlement is fair and the petitioners cannot blame the

respondent management and the union and presently

there are 4 registered trade union in the factory and

the workers welfare union alone submitted a charter

of demands and another union Hindustan Unilever

Employees Tea Union employees did even submitted

their

charter

of

demand

and

the

respondent

management also have submitted their own charter of

demand

which

was

essential

on

productivity

improvement, balance and other issues and bilateral

negotiations were held between the respondent

management and Hindustan Unilever Employees Tea

union employees on various dates and the majority of

the workers of the respondent factory and the office

bearers of the Hindustan Unilever Employees Tea

Union and that there is no unfair labour practice

committed by the respondent management and 18(1)

settlement is not applicable to the petitioner since the

petitioner union are not doing production in terms of

the settlement as per own letters, dated 07-08-2013

and they are not entitled to claim the benefits flowing

out of such settlement and that therefore, prayed to

dismiss the claim petition.

19. In support of their evidence, the respondent

management has exhibited Ex.R1 to Ex.R20. Ex.R1 is

the letter of authorization of Mr.Karthik. Ex.R2 is the

copy of 18(1) settlement signed between the respondent

and National Employee Trade Union (NETU). Ex.R3 is

the copy of letter given by 110 workers accepting the

18(1) settlement, and assuring to withdraw the case

657

29 May 2018]

LA GAZETTE DE L’ETAT

ID. Nos. 4/2012 and 25/2012. Ex.R4 is the copy of

tabular column showing, the details of revised salary

structure and ex gratia paid to individual workers post

signing of LTS declaration by individual workers in

terms of settlement. Ex.R5 is the copy of salary

receipts of 4 workers who have accepted the 18(1)

settlement as proof of ex gratia paid. Ex.R6 is the copy

of the letter given by the petitioner’s union informing

the management that they shall produce only as per

12(3) settlement, dated 07-05-2007. Ex.R7 is the

copy of letter given by the Hindustan Unilever Tea

Division Employees Union informing the management

that they shall produce only as per 12(3) settlement,

dated 07-05-2007. Ex.R8 is the copy of 18(1)

settlement signed between the respondent and three

union namely, National Employee Trade Union

(NETU), Hindustan Unilever Tea Unit Employees

Union, and Hindustan Unilever Tea Development Union.

Ex.R9 is the copy of the letters given by 92 workers

accepting the 18(1) settlement. Ex.R10 is the excel

sheet showing the machine speeds, its capacity and the

comparative statements of workers who signed the

12(3) settlement in the year 2007 and 18(1) settlement

in the year 2013. Ex.R11 is the copy of Pay Slip of

Mr. Veerabuthiran, (W-l) (Token No. 014) for the month

of January 2014 who has signed the 18(1) settlement,

dated 04-03-2013. Ex.R12 is the copy of Pay Slip of

Mr. Murugaperumal, (W-2) (Token No. 42) for the

month of January 2014 who has signed the 18(1)

settlement, dated 04-03-2013. Ex.R13 is the copy of

Pay Slip of Mr. Palani, (W-3)(Token No. 113) for the

month of January 2014 who has signed the 18(1)

settlement, dated 04-03-2013. Ex.R14 is the copy of

Pay Slip of Mr. C. Veloudham, (W-4)(Token No. 11)

for the month of January 2014 who has signed the

18(1) settlement, dated 04-03-2013. Ex.R15 is the

copy of Pay Slip of Mr. T.S. Karthikeyan, (W-l)(Token

No. 77) for the month of January 2014 who has signed

the 18(1) settlement, dated 04-03-2013. Ex.R16 is

the copy of Pay Slip of Mr. R. Murugan, (W-2) (Token

No. 16) for the month of January 2014 who has

signed the 18(1) settlement,

dated 04-03-2013.

Ex.R17 is the copy of Pay Slip of Mr. S. Murugan,

(W-3) (Token No. 07) for the month of January 2014

who has signed the 18(1)

settlement,

dated

04-03-2013. Ex.Rl8 is the copy ot Pay Slip of

Mr. Duraisamy, (W-4)(Token No.04) for the month of

January 2014 who has signed the 18(1) settlement,

dated 04-03-2013. Ex.Rl9 is the copy of details of

rationalization and modernization done from 2009 to

2013. Ex.R20 is the copy of the details of cushions

given; in calculating OEE.

20. Discussion on I.D(T). No. 4/2012:

From the pleadings and evidence of both the

parties and the exhibits marked on either sides it is

clear that following facts are admitted by either side

that the members of the petitioner union are the

workers of the respondent, establishment and

already they have entered 12(3) wage settlement on

07-05-2007 for 4 years period and thereafter, the

petitioner union has sent a letter demanding the

respondent management for wage revision and

negotiations were done between them and the

matter has not been amicably settled and that

therefore, the petitioner union has raised the

industrial dispute before the Conciliation Officer

over charter of demands and on failure of

conciliation the reference has been sent to this

Court by the Government. It is also an admitted fact

that while the industrial dispute is pending before

this Tribunal the respondent management has entered

another settlement under section 18(1) of the Act

on 04-03-2013 with another union and so far the

petitioner union has not accepted the said 18(1)

settlement and the petitioner union along with

another union has raised the industrial dispute

before the Conciliation Officer challenging the

said 18(1) settlement executed between the

respondent management and another union of the

respondent factory and the said industrial dispute

in I.D.(T). No. 7/2014 also pending before this Court

for disposal. It is not in dispute that the respondent

management has entered wage settlement on

07-05-2007 for the period of 4 years under section

12(3) of the Industrial Disputes Act and after expiry

of the period of 4 years the management has to

revise the wage by entering the another settlement

and it is also not disputed that the petitioner union

has submitted charter of demands before the

respondent management and the same has not been

accepted by the respondent management and

thereafter, the industrial dispute was raised by the

petitioner union over charter of demand for revision

of wages and during the pendency of the said

industrial

dispute

before

this

Tribunal

the

respondent management has entered settlement,

under section 18(1) of the Act which was also

challenged by the petitioner union along with

another union. Hence, it is to be decided by this

Tribunal, whether the industrial dispute raised by the

petitioner union against the respondent management

over charter of demands such as wage revision,

annual increment, HRA, Educational allowance,

HBA and other allowances, etc., is justified or not.

658

LA GAZETTE DE L’ETAT

[29 May 2018

21. It is contended by the petitioner union that the

respondent management has not considered the

demands of the petitioner union for wage revision and

the management with an intention to threaten the

workers and suppress their wage demand posed a

counter demand to increase the machine speed from

29 units to 39 units with the existing workforce and

also demanded the workers to accept the proposed

erection of auto machine which was likely to lead

retrenchment of existing workers and the respondent

management has not offered wage increase and

therefore, there is industrial dispute before the

conciliation since the some other companies have

entered wage settlement with the trade union and wage

was revised to their workers average of more than

` 6,000 per month and even the same was produced

before the respondent management to increase the

wage at least on par with the abovesaid Indian

companies

on

Industry-cum-regional basis,

the

respondent did not shown any interest to negotiate with

the petitioner union.

22. In order to establish their contention the

petitioner union has submitted Ex.P1 to Ex.P53. The

documents Ex.P1 to Ex.P14 would go to show that the

petitioner union has submitted a charter of demands to

the respondent management on 10-02-2011 wherein,

they have demanded revision of basic wages, annual

increment, fixed dearness allowance, variable dearness

allowances, house rent allowance, education allowance,

conveyance allowance, social security and medical

assistance, house building advance, sanction of

personal loan, provision of food, tiffin/lunch,

excursion allowance, life insurance facility, death

benefit, etc., and thereafter, the petitioner union has

raised an industrial dispute wherein the conciliation

proceedings were done by the Conciliation Officer by

sending notices over the dispute regarding charter of

demands to the respondent, management wherein, the

respondent management has also submitted a reply to

the Conciliation Officer and the petitioner union has

submitted a complaint to the Commissioner of Labour

as well as to the Conciliation Officer and to the

respondent and the conciliation was failed and the

conciliation

failure

report

was

submitted

on

04-10-2011 and the said conciliation failure report was

exhibited under Ex.P15 which would go to show that

the respondent management has not accepted the

charter of demand for wage revision and the

respondent management has discussed the complete

productivity details

withi

the

union and

the

management has accepted for wage increase of

`

2,806 as final amount inclusive of all wage

component and hence, the conciliation authority has

advised the union to hold the talks with the union and

though repeated advises were given, the union did not

yield to consider the authority’s advise and the union

insisted the Conciliation Officer to sent failure report

as the management failed to consider the claim of the

petitioner union. The other documents exhibited by

the petitioner union would go to show that NCR

Corporation India Limited, MRF Limited, Godrej

Consumer Products, LUCKAS TVS has entered wage

settlement with its workers which reveals that there

was a wage settlement increasing the pay of the

workers within the region of Puducherry and that the

respondent management has issued various memos to

the employees and some of the workers have given

letter to the Labour Commissioner that the respondent

management has threatened them to accept the 18(1)

settlement executed with another union.

23. On the other hand, it is the main contention of

the respondent management that they have entered

18(1) settlement with the majority of workers and the

said settlement was accepted by 110 workers out of

total 124 workers and only 14 workers the office

bearers of the petitioner union alone have not

accepted the 18(1) settlement and as the majority

union has accepted the 18(1) settlement and they are

getting the revised wage as agreed in the settlement

and also they are giving the productivity as agreed in

the settlement, this petitioner union cannot sought for

another wage revision as claimed by them. In support

of their contention the respondent management has

exhibited Ex.R1 to Ex.R20. The documents Ex.R1 to

Ex.R20 would go to show that the respondent

management has entered settlement in the year 2007

and thereafter, they have entered settlement under

section 18(1) of the Act with National Employees

Trade Union on 04-03-2013 and that the respondent

management has 124 permanent workers and the

undertaking given by the individual employees under

Ex.R3 would reveal the fact that each and every

employee has given letter of undertaking to accept the

18(1) settlement and they have received the copy of

the above settlement entered on 04-03-2013 and that

they have decided to withdraw the dispute raised by

them in I.D.(T). No. 4/2012 and I.D.(T). No. 25/2012

and the said undertaking were given by 110 workers out

of 124 permanent workers and the respondent

management has exhibited the Salary Slip of the

workers who have accepted the 18(1) settlement as the

proof for ex gratia paid and the document Ex.R8

would go to show that on 20-12-2016 the 18(1)

settlement was signed with three union. National

Employee Trade Union, Hindustan Unilever Tea Unit

Employees Union and Hindustan Unilever Tea

Development Union for revision of wages and the office

659

29 May 2018]

LA GAZETTE DE L’ETAT

bearers of the union have also accepted the settlement,

dated 20-12-2016 after the expiry of earlier

settlement entered on 04-03-2013 which expires on

03-02-2017 by the respondent management.

24. The main contention of the petitioner union is

that they are the majority union. Admittedly, in this

case there are 3 union while the industrial dispute was

raised by the petitioner union and it is established

before this Court that most of the employees i.e., 110

out of 124 have accepted the settlement entered under

section 18(1) of the Act on 04-03-2013 while this

industrial dispute is pending. On this aspect the

evidence of PW.1 is carefully considered which runs

as follows :

“









































































”

From the above evidence it is clear that PW.l has

admitted the fact that in the respondent establishment

the permanent workers are only 122 as on 04-03-2013,

It is also clear from Ex.R3 that 110 employees have

accepted the 18(1) settlement and they have also given

undertaking to withdraw the dispute. Further, it is clear

from the above evidence that the petitioner union has

not exhibited the 18(1) settlement and PW.l has admitted

that the members of the petitioner union have not

exhibited the 18(1) settlement and they have not received

any wages as per the 18(1) settlement and they are

receiving the salary only under earlier 12(3) settlement

and it is also admitted by PW.l that no proof of

membership list was filed before this Court to establish

that how many workers are the members of the petitioner

union since 110 workers have accepted the 18(1)

settlement while the industrial dispute is pending.

25. In support of his contention the learned

Counsel for the respondent has relied upon the

Judgment reported in CDJ 1976 SC 099, wherein, the

Hon’ble Supreme Court has held that,

“...........The settlement has to be accepted or

rejected as a whole and we are unable to reject it

as a whole as unfair or unjust. Even before this Court

the 3rd respondent representing admittedly, the large

majority of the workmen has stood by this

settlement and that is a strong factor which it is

difficult to ignore. As stated elsewhere in the

judgment, we cannot also be oblivious of the fact

that all workmen of the company have accepted the

settlement. Besides, the period of settlement has

since expired and we are informed that the employer

and the 3rd respondent are negotiating another

settlement with further improvement. These factors,

apart from what has been stated above and the need

for industrial peace and harmony when a union

backed by a large majority of workmen has accepted

a settlement in the course of collective bargaining

have impelled us not to interfere with this

settlement...........”

Further, the learned Counsel for the respondent has

also relied upon the Judgment reported in CDJ 2005

Kar HC 403, wherein, the Hon’ble Karnataka

High Court hasiheld that,

“...........It is clear a unrecognized union will not

have right to participate in the process of collective

bargaining with the management/employer over the

issues concerning the workmen in general. The Supreme

Court has further pointed out, in essence, the

distinction between the two categories of trade

unions is that while the recognized union has the

right to participate in the discussions/negotiations

regarding general issues affecting all workmen/

employees and settlement if any, arrived at as a

result of such discussion/negotiations is binding on

all workmen/employees, whereas, a non-recognized

union cannot claim such a right, but, it has the right

to meet and discuss with the management/employer

about the grievances of any individual member in

domestic inquiry or departmental enquiry and

proceedings before the Conciliation Officer and

adjudicator.............”

660

LA GAZETTE DE L’ETAT

[29 May 2018

and also relied upon the Judgment repotted in CDJ

2005 SC 843, wherein, the Hon’ble Supreme Court has

held that,

“Industrial Disputes Act, 1947 - section 2(K)

section 10 and section 18 - Settlement - A plain

reading of the reference made by the Central

Government would show that it does not refer to any

dispute or apprehended dispute between the Bank

and the Federation (second respondent). It does not

refer to any demand or claim made by the

Federation or alleged refusal thereof by the Bank.

In such circumstances, it is not possible to hold that

on account of the settlement, dated 18-08-1996

arrived at between the Bank and the Association

(third respondent), any dispute or apprehended

dispute has come into existence between the Bank

and the Federation (second respondent). The action

of the Bank in asking for a receipt from those

employees, who are not members of the Association

(third respondent) but, wanted to avail of the benefit

of the settlement, again does not give rise to any

kind of dispute between the Bank and Federation

(second respondent). Thus, the reference made by

the Central Government by the order, dated 29-12-1997

for adjudication by the Industrial Tribunal is wholly

redundant and uncalled for - There is no industrial

dispute in existence nor there is any apprehended

dispute between the appellant - Bank and the

Federation (second respondent) and as such there is

absolutely no occasion for making any reference

for adjudication by the Industrial Tribunal. The

reference being wholly futile, the same deserved to

be quashed..............”

and also relied upon the Judgment reported in CDJ

1981 SC 130, wherein, the Hon’ble Supreme Court has

held that,

“...........If, the settlement had been arrived at by

a vast majority of the concerned workers with their

eyes open and was also accepted by them in its

totality, it must be presumed to be just and fair and

not liable to be ignored while deciding the reference

merely because a small number of workers (in this

case 71, i.e., 11.18 per cent) were not parties to it

or refused to accept it, or because the Tribunal was

of the opinion that the workers deserved marginally

higher emoluments than they themselves thought

they did. A settlement cannot be weighed in any

golden scales and the question whether it is just and

fair has to be answered on the base is of principles

different from those which come into play when an

industrial dispute in under adjudication. In this

connection we cannot do better then quote

extensively from Herbertson Limited Vs. Workmen

of the Herbsertson Limited and Others, (Wherein,

Goswami, J. speaking for the Court observed.

“Besides, the settlement has to be considered in

the light of the conditions that were in force at the

time of the reference. It will not be correct to judge

the settlement merely in the light of the Award

which was pending appeal before this Court. So far

as, the parties are concerned there will always be

uncertainly with regard to the result of the litigation

in a Court proceeding. When, therefore, negotiations

take place which have to be encouraged, particularly

between labour and employer, in the interest of

general peace and well being there is always give

and take. Having regard to the nature of the dispute,

which have to he encouraged, particularly between

labour and employer, in the interest of general peace

and well being there is always give and take. Having

regard to the nature of the dispute, which was raised

as far back as 1968, the very fact of the existence

of litigation with regard to the same matter which

was bound to take some time must have influenced

both the parties to come to some settlement. The

settlement has to be taken as a package deal and

when labour has gained in the matter of wages and

if, there is some reduction in the matter of dearness

allowance so far as the Award is concerned, it cannot

be said, that the settlement as a whole is unfair and

unjust. ...........”

and also relied upon the Judgment reported in CDJ

2002 BHC 1320, wherein, the Hon’ble Bombay

High Court has held that,

“...........No doubt, it was contended that under

Clause 6 of the settlement, the company was

required to take action. It such action not taken, it

is open to the Appellant to take appropriate

proceedings in accordance with law. The fact,

however, remains that the settlement which was

arrived at between the parties, which has been relied

upon by the Tribunal as well as by the learned Single

Judge, is a settlement under sub-sec.(1) of S.18 of

the Act. Obviously, therefore, the employees covered

by such settlement under sub-sec.(1) of S.18 is an

independent class and if certain benefits have been

granted in favour of those employees, no complaint

can be made by the members of the other union and

on that basis, no relief can be granted.............”

and also relied upon the Judgment reported in CDJ

2011 MHC 1435, wherein, the Hon’ble Madras

High Court has held that,

661

29 May 2018]

LA GAZETTE DE L’ETAT

“...........The observation made by the learned

Single Judge that the Management could not

enforce section 18(1) Settlement against non-signatories,

correspondingly, the workmen unless sign the

settlement could not seek enforcement of the same,

is the proposition of law as laid down by the

Honourable Supreme Court. Hence, this contention

of the learned Senior Counsel for the Appellants

lacks merit and cannot be accepted. ..........”

From the above observations of the Hon'ble

Supreme Court and the Hon’ble High Court it is clear

that if, the large majority of the workmen have

accepted the settlement and if, the period of settlement

has also expired and also executed any other further

settlement and if, the majority of the workmen have

executed the settlement in the course of collective

bargaining, then the Court cannot interfere with other

settlement and it is also clear from the above

observations that when there are multiple unions in an

industry if the settlement have arrived at by the vast

majority of the workers and the same was also

accepted by them in its totality and it must be

presumed that to be just and fair and not liable to be

ignored while deciding the reference merely because

a small number of workers were not added to it and

refused to accept it. In this case, it is also admitted

by the respondent management that they have entered

18(l) settlement with the majority of the permanent

workers i.e., 110 workers have accepted the settlement

out of 124 permanent workers and that therefore, the

petitioner union cannot seek for any further wage

revision than the 18(1) settlement which was accepted

by the majority of workers.

26. It is learnt from records that this industrial

dispute has been raised even earlier to the 18(1)

settlement. At the time of raising the industrial dispute

no settlement was arrived at between any of its

members though the earlier 2007 settlement was

ended in the year 2011. Further, the workers have right

to raise the dispute before the respondent management

as well as before the Conciliation Officer for wage

revision. In this case the petitioner union has raised

the charter of demand before the Conciliation Officer

for wage revision and that therefore, the industrial

dispute raised by the petitioner union on the said date

cannot be rejected as unjustified and it is the right of

the workers of the respondent establishment to raise

the industrial dispute before the Conciliation Officer

for wage revision as it was agreed by the management

in the earlier 2007 settlement that the wage has to be

increased and revised from 2011. But, the workers of

the respondent Industry cannot seek further wage

revision than the 18(1) settlement since it was

accepted by the majority of the workers of respondent

establishment.

27. It is the main contention of the .respondent

management that members of the petitioner union

could not be given benefits of the 18(1) settlement

since they have not accepted the same. Further, the

settlement provides the clause that benefits of the

settlement would be given only after acceptance of

18(1) Settlement. It cannot be accepted that the

members of the petitioner union who raised the

industrial dispute are not entitled for the benefits of

18(1) settlement since even prior to the 18(1)

settlement arrived between the respondent management

with another union the petitioner union has raised the

said industrial dispute for wage revision and that

therefore, the contention raised by the respondent

management that the petitioner union are not entitle

for benefits of the 18(1) settlement cannot be

accepted. Furthermore, it is learnt from records that

the Hon’ble High Court has granted interim relief of

` 2,806 per month to the 13 workers who have not

accepted the 18(1) settlement and therefore, as the

majority of the workers have accepted the 18(1)

settlement, the members of the petitioner union are

also entitled for benefits of 18(1) settlement though

they have not accented. Considering the above facts and

circumstances of this case, it is to be held that the

industrial dispute raised by the petitioner union against

the respondent management over charter of demands

such as wage

revision, annual increment,

HRA,

educational allowance, HBA and other allowances, etc.,

is justified and Award has to be passed by directing the

respondent management to give all the benefits of the

18(1) settlement to all the 13 members of the

petitioner; union who have not so far accepted the

18(1) settlement.

28. Discussion on I.D(T). No. 7/2014:

In this case, it is to be decided whether the

dispute raised by the 1st and 2nd petitioner union

against the respondent management over the 18(1)

settlement, dated 04-03-2013 entered with another

union during the pendency of the industrial dispute,

before the industrial Tribunal, Puducherry, the act

of the management in showing disparity in wages

and incentives among the workmen who have signed

and not signed the 18(1) settlement and individual

bond are justified and the claim of the union

workmen for equal wages and incentive on par with

the other workmen and to extend the benefits of

12(3) settlement, dated 07-05-2007 till a new wage

settlement is entered are justified or not and

whether there has been any unfair labour practice

among the union workmen under section 25(T) of

the Industrial Disputes Act, 1947 has been adopted

by the respondent management.

662

LA GAZETTE DE L’ETAT

[29 May 2018

29. It is the main contention of the petitioner

unions that they have raised the industrial dispute

before the Conciliation Officer and on failure the

dispute has been referred before this Tribunal by the

Government and is pending and while so, the

respondent management has created a puppet union and

entered the 18(1) settlement under section 18(1) of

the Act with National Employees Trade Union and the

respondent management threatened all the individual

workers and used all sort of unfair labour practice

against them to adopt and accept the terms and

conditions of the said 18(1) settlement and the

respondent management has given wage increase and

other benefits only to the workers who have signed the

18(1) settlement and the workers who have not signed

or adopted the 18(1) settlement were denied wage

increase and they were discriminated from the workers

who signed the 18(1) settlement and the respondent

management has formed the management puppet union

in order to undermine the petitioner union activities

and their collective bargaining.

30. It is the contention of the respondent management

that this Tribunal has no jurisdiction to decide neither

the validity of the 18(1) settlement nor the issue of

unfair labour practice and under section 25(T) and

25(U) of Chapter 5(C) of the industrial dispute the

claim of unfair labour practice could be a matter of

determination by the Executive Officers of the Labour

Department and the petitioners have not add or implead

the other signatory of the 18(1) settlement namely,

National Employees Trade Union for seeking

declaration that the 18(1) settlement as invalid and

since the majority of the workers have accepted

the 18(1) settlement the petitioners have no locus

standi to challenge the 18(1) settlement and they could

not questioned the validity or genuineness of the

settlement. The members of the petitioner union and

even some of the office bearers of the second

petitioner union had accepted the 18(1) settlement and

rectified the settlement and that therefore, the claim

of the petitioner is unsustainable.

31. In support of their contention the learned

Counsel for the respondent has also relied upon the

Judgment reported in CDJ 2005 BHC 334, wherein, the

Hon’ble Bombay High Court has held that,

“................. A settlement between the management

and Union would be binding on the parties unless

terminated. An Industrial Tribunal definitely cannot

go into the issue of the validity of the settlement

in the absence of parties to the settlement. The

Award on that count is liable to be set aside.

Normally, when a settlement has been entered into

and another union disputes the said settlement on

whatsoever ground the normal test that the Industrial

Tribunal must apply is whether the settlement can

be said to be unfair and answer the same accordingly.

If, it so holds then it can pass an Award in terms of

the reference. It cannot set aside a binding

settlement. If, the Tribunal proposes to by pass a

settlement and if, it has such jurisdiction then the

least that has to be done is to notice the union which

entered into the settlement and thereafter, give an

opportunity to the said Union before making an

award which according to it to be just and equitable.

That has not been done in the case. The interest of

justice would be met if, the impugned Award is set

aside and the matter is remanded back to the

Industrial Tribunal for reconsiderations. If, the

Industrial Tribunal proposes to answer the issues on

the matter of settlement entered into Coordination

Committee and the respondent No.l and/or to issue

directions that the said settlement is not fair and,

therefore, not binding or is constitutionally

impermissible it would be bound to issue notice to

the parties which entered, into the settlement

according to law. ...........”

and the learned Counsel for the respondent has also

relied upon the Judgment reported in CDJ 2001

BHC 326, wherein, the Hon’ble Bombay High Court

has held that,

“.............Another argument of Mrs. Doshi is that

nothing would survive if, the settlement are held to

be fair and proper. Since, there is no challenge on

any ground, I fail to understand, how the union can

question the fairness and propriety of these

settlement. As far as the union is conceded, it is a

third party and a stranger. The fairness and propriety

of the settlement can be adjudged between the

signatories of such settlement. It would be open to

any of the Field Force employees to say that the

said settlements were not fair and just to him. The

union cannot say that such settlements were not fair

and just. More so, there is no even a whisper of any

ground on which such a settlement can be said to

be not fair and just. Mrs. Doshi has further submitted

that the settlements are contrary to the 1957

agreement and therefore, these settlements are not

permissible. I have perused the terms of the 1957

agreement, which is a letter written by the company

to the union. I do not see any clause in the said

letter which prohibits the parties from arriving at

such a settlement. Besides, the Field Force employees

have accepted the validity of the termination of 1957

agreement and it does not come in their way to have

an amicable settlement with the company.............”

663

29 May 2018]

LA GAZETTE DE L’ETAT

From the above observations of the Hon’ble

High Court, it is clear that Tribunal cannot go into the

issue of validity of the settlement in the absence of

the parties to the settlement. Admittedly, in this case,

the union which entered into the 18(1) settlement with

the respondent management namely, National Employees

Trade Union has not been added as the party to the

proceedings and furthermore, these petitioners are not

the signatories of the 18(1) settlement and they have

also not accepted the same though, the majority of the

workers have entered and executed individual Bond by

giving undertaking which are exhibited as Ex.R3. From

the above observations it is also clear that the

petitioners are the 3rd party to the said settlement and

the fairness and propriety of the settlement can be

adjudged between the signatories of such settlement

i.e., who signed the settlement. In this case the

signatories of the 18(1) settlement have not been

impleaded and added to this proceeding and as such the

reference made by the Government without adding or

impleading the National Employees Trade Union who

have entered the 18(1) settlement with the respondent

management is not sustainable.

32. Furthermore, evenafter knowing the fact that the

said 18(1) settlement has been entered only by the

members of the National Employees Trade Union the

petitioner unions have failed to implead them as a

party to the proceedings is untenable and if any, order

is passed without hearing the members of the National

Employees Trade Union who have entered the 18(1)

settlement and who are the signatories of the 18(1)

settlement would be stood as violation of principles

of natural justice and also the violation of

constitutional right and therefore, the claim statement

filed by the petitioner union is not sustainable for

non-jointer of proper parties to the proceedings and also

against the principles of natural justice since, if any,

order is passed in favour of the petitioner it would

automatically affects the members of the said union

and therefore, it is to be held that the industrial dispute

raised by the 1st and 2nd petitioner union against the

respondent management over the 18(1) settlement,

dated 04-03-2013 entered with another union during

the pendency of the industrial dispute before the

Industrial Tribunal, Puducherry is not justified.

33. Further, as it is decided by this Tribunal that the

18(1) settlement has been signed by the majority of

the workers is a valid one and it has already been

decided that the petitioner union members are entitled

for the benefits of 18(1) settlement there could not

be any disparity in wages and other claims in respect

of equal wages and incentives on par with the other

workmen and extention of 12(3) settlement till the

execution of new settlement would not arise and

further, absolutely the petitioner unions have failed to

establish that there was unfair labour practice

committed by the respondent management. Furthermore,

as it is decided by this Tribunal that the industrial

dispute raised by the petitioner union against the

respondent management over the 18(1) settlement,

dated 04-03-2013 entered with another union during

the pendency of the industrial dispute before the

Industrial Tribunal, Puducherry, is not justified, the

question of disparity of wages and other claims made

by the petitioner unions are not sustainable and as

such, the petition is liable to be dismissed.

34. I.D(T). No. 4/2012

In the result, the claim petition is partly allowed

and the industrial dispute raised by the petitioner

union against the respondent management over

charter of demands such as wage revision, annual

increment, HRA, Educational allowance, HBA and

other allowances, etc., is justified and Award is

passed directing the respondent to give all the

benefits of the 18(1) settlement to all the members

of th petitioner union who have not so far accepted

the said settlement. No cost.

In I.D.(T). No. 7/2014

In the result, the claim petition is dismissed and

the industrial dispute raised by 1st and 2nd

petitioner unions against the respondent management

over 18(1) settlement, dated 04-03-2013 entered

with National Employees Trade Union during the

pendency of the industrial dispute before this

Industrial Tribunal, Puducherry and for other reliefs

are not justified. No cost.

Dictated to the Stenographer, transcribed by her,

corrected and pronounced by me in the open Court on

this the 12th day of January, 2018.

G. THANENDRAN,

Presiding Officer,

Industrial Tribunal-cum-

Labour Court, Puducherry.

————

List of petitioner’s witnesses:

PW.1

—09-01-2017 S. Rajendirane

List of petitioner’s exhibits:

Ex.P1 —06-03-2007 Copy of the petitioner’s

union Registration Certificate.

664

LA GAZETTE DE L’ETAT

[29 May 2018

Ex.P2 —

Copy of the petitioner’s

union members list.

Ex.P3 —10-02-2011 Copy of the charter of

demand submitted by the

petitioner union and its

covering letter.

Ex.P4 —15-02-2011 Copy of the respondent

letter for receipt of the

petitioner charter of demand.

Ex.P5 —15-06-2011 Copy of the claim statement

filed by the petitioner’s

union before the Labour

Officer (Conciliation) over

the dispute of charter of

demand of wage revision

and other allowances.

Ex.P6 —20-07-2011 Copy of the Conciliation

Officer

notice

over

the

dispute

of

charter

of

demand

raised

by

the

petitioner union.

Ex.P7 —04-08-2011 Copy of the respondent

reply to the Conciliation

Officer.

Ex.P8 —29-08-2011 Copy of the respondent

reply to the Conciliation

Officer.

Ex.P9 —29-08-2011 Copy of the petitioner’s

union memo filed by the

Conciliation Officer.

Ex.P10—06-09-2011 Copy of the petitioner’s

union

complaint

to

Commissioner of Labour.

Ex.P11—06-09-2011 Copy of the petitioner’s

union complaint to Labour

Officer (Conciliation).

Ex.P12—06-09-2011 Copy of the petitioner’s

union

complaint

to

respondent management.

Ex.P13—08-09-2011 Copy of the respondent’s

letter to the Conciliation

Officer.

Ex.Pl4—22-09-2011 Copy

of

the

petitioner

union

letter

to

the

Conciliation Officer.

Ex.P15—04-10-2011 Copy of the failure report

issued by the Conciliation

Officer.

Ex.P16—30-11-2011 Copy of the petitioner’s

union

letter

to

the

Conciliation Officer.

Ex.P17—29-03-2012 Copy of the Government

notification.

Ex.P18—14-05-2012 Copy of the Court notice in

ID. No. 4 of 2012.

Ex.P19 —

Copy

of

the

financial

performance

(10

years

record performance).

Ex.P20—08-12-2011 Copy

of

the

wage

settlement arrived between

NCR

corporation

India

Limited

(Vs.)

and

its

workman.

Ex.P21— Oct., 2011 Copy of the revised pay

structure of the employees

of NCR.

Ex.P22— July, 2012 Copy of the Pay Slip of the

employees of the respondent

namely, V. Sivasakthi.

Ex.P23— July, 2012 Copy of the Pay Slip of the

employees of the respondent

namely, V. Ayyanar.

Ex.P24— 2011-2015 Copy

of

the

wage

settlement entered between

the

MRF

Limited,

Puducherry

and

its

workman.

Ex.P25—2010-2012 Copy

of

the

wage

settlement entered between

the

Godrej

Consumer

Products, Puducherry and

its workman.

Ex.P26 —

Copy of the pay structure of

employees of Godrej.

Ex.P27 —

Copy

of

the

wage

settlement LUCKAS TVS,

Puducherry.

Ex.P28 —15-04-2013Copy of, the petitioner

union raised an industrial

dispute ID. No. 819 of 2013.

665

29 May 2018]

LA GAZETTE DE L’ETAT

Ex.P29—19-08-2013 Copy

of

the

petitioner

union raised an industrial

dispute ID. No. 1706 of

2013 before Labour Officer

(Conciliation).

Ex.P30—13-08-2013 Copy of the Conciliation

Notice - ID. No. 819 of 2013.

Ex.P31—30-08-2013 Copy

of

the

petitioner

union

letter

to

the

Conciliation Officer.

Ex.P32—12-09-2013 Copy

of

the

petitioner

union

letter

to

the

Conciliation Officer.

Ex.P33—07-08-2013 Copy of the Conciliation

Notice ID. No. 1706 of

2013.

Ex.P34—21-08-2013 Copy

of

the

petitioner

union

letter

to

the

Conciliation Officer.

Ex.P35—23-08-2013 Copy

of

the

petitioner

union

letter

to

the

Conciliation Officer.

Ex.P36—21-10-2013 Copy

of

the

petitioner

union letter to the Factory

Manager.

Ex.P37—21-10-2013 Copy

of

the

petitioner

union

letter

to

the

Conciliation Officer.

Ex.P38—21-10-2013 Petitioner union letter to

the Chief

Inspector of

Factories.

Ex.P39—21-10-2013 Copy

of

the

petitioner

union

letter

to

the

Commissioner,

Labour

Department.

Ex.P40—14-08-2013 Copy of the show cause

notice to the E. Devarasu.

Ex.P41—15-08-2013 Copy of Devarasu letter to

the respondent, Conciliation

Officer.

Ex.P42—19-08-2013 Copy of S. Murugan letter

to the Commissioner of

Labour.

Ex.P43—19-08-2013 Copy of V. Venketesan

letter to the Commissioner

of Labour.

Ex,P44—19-08-2013 Copy of V. Venketesan

Medical Certificate.

Ex.P45—04-09-2013 Copy of the respondent

m a n a g e m e n t l e t t e r t o

V. Venketesan, Token

No. 29.

Ex.P46—19-08-2013 Copy of K. Aathinarayanan

letter to the Commissioner

of Labour.

Ex.P47—05-11-2014 Copy of the show cause

notice to the T.N. Rajendra

Kumar.

Ex.P48 —

Copy

of

T.N.Rajendra

Kumar reply to show cause

notice, dated 05-11-2014.

Ex.P49—05-11-2014 Copy of the show cause

n o t i c e

t o

t h e

R. Sakthimurugan,

Ex.P50 —

Copy of Sakthi Murugan

reply to show cause notice,

dated 05-11-2014.

Ex.P51—17-12-2013 Copy of the conciliation

failure report.

Ex.P52—12-05-2014 Copy of the Government

reference.

Ex.P53 —

Copy of the Court notice in

ID. No. 7 of 2014.

List of

respondent’s witness:

RW.1 —22-05-2017 Karthik

List of respondent’s exhibits:

Ex.1

—04-05-2017 Letter of authorization of

Mr. Karthik.

Ex.R2 —04-03-2013 Copy of 18(1) settlement

signed between the respondent

and

National

Employee

Trade Union (NETU).

Ex.R3 —04-03-2013 Copy of letter given by 110

workers

accepting

the

18(1) settlement and assuring

to withdraw the case ID.

Nos. 4/2012 and 25/2012.

Ex.R4 —04-03-2013 Copy of tabular column

showing

the details of

revised salary structure and

ex gratia paid to individual

workers post signing of

LTS

declaration

by

individual workers in terms

of settlement.

666

LA GAZETTE DE L’ETAT

[29 May 2018

Ex.R5 —04-03-2013 Copy of salary receipts of

4 workers who have accepted

the 18(1) settlement as

proof of ex gratia paid.

Ex.R6 —06-08-2013 Copy of the letter given by

the

petitioner’s

union

informing the management

that they shall produce only

as per 12(3) settlement,

dated 07-05-2007.

Ex.R7 —07-08-2013 Copy of letter given by the

Hindustan Unilever Tea

Division Employees Union

informing the management

that they shall produce only

as per 12(3) settlement,

dated 07-05-2007.

Ex.R8 —20-12-2013 Copy of 18(1) settlement

signed

between

the

respondent and three union

namely, National Employee

Trade

Union

(NETU),

Hindustan Unilever Tea

Unit Employees Union, and

Hindustan Unilever Tea

Development Union.

Ex.R9 —20-12-2013 Copy of the letters given by

92 workers accepting the

18(1) settlement.

Ex.R10 —

Excel sheet showing the

machine speeds its capacity

and

the

comparative

statements of workers who

signed the 12(3) settlement

in the year 2007 and 18(1)

settlement in the year 2013.

Ex.R11 —

Copy of pay slip of

Mr. Veerabuthiran, (W-l)

(Token No. 014) for the

month of January 2014 who

has,

signed

the

18(1)

settlement, dated 04-03-2013.

Ex.R12 —

Copy of pay slip of

Mr. Murugaperumal, (W-2)

(Token No. 42) for the

month of January 20l4 who

has

signed

the

18(1)

settlement, dated 04-03-2013.

Ex.Rl3 —

Copy of pay slip of

Mr. Palani. (W-3)(Token

No. 113) for the month of

January 2014 who has

signed the 18(1) settlement,

dated 04-03-2013.

Ex.Rl4 —

Copy of pay slip of

Mr. C.Veloudbam, (W-4)

(Token No. 11) for the

month of January 2014 who

has

signed

the

18(1)

settlement, dated 04-03-2013.

Ex.R15 —

Copy of

Pay

Slip of

Mr. T.S. Karthikeyan, (W-l)

(Token No. 77) for the

month of January 2014 who

has

signed

the

18(1)

settlement, dated 04-03-2013.

Ex.R16 —

Copy of pay slip of

Mr.

R.Murugan,

(W-2)

(Token No. 16) for the

month of January 2014 who

has

signed

the

18(1)

settlement, dated 04-03-2013.

Ex.R17 —

Copy of pay slip of

Mr. S. Murugan, (W-3)

(Token No. 07) for the

month of January 2014 who

has

signed

the

18(1)

settlement, dated 04-03-2013.

Ex.R18 —

Copy of pay slip of

Mr.

Duraisamy,

(W-4)

(Token No. 04) for the

month of January 2014 who

has

signed

the

18(1)

settlement, dated 04-03-2013.

Ex.R19 —

Copy

of

details

of

r a t i o n a l i za t i o n

a n d

modernization done from

2009 to 2013.

Ex.R20 —

Copy

of

the

details

of

cushions given in calculating

OEE.

G. THANENDRAN,

Presiding Officer,

Industrial Tribunal-cum-

Labour Court, Puducherry.