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TMI Blog1976 (11) TMI 198X X X X Extracts X X X X X X X X Extracts X X X X ..... spondent No. 2 is the only contending union, viz.,MumbaiMazdoor Sabha. On May 18, 1967, there was a :reference by the Government of Maharashtra of an industrial dispute under section 10(1)(d).of the Industrial Disputes Act to the Industrial Tribunal for adjudicating eight demands such as, wage scales, adjustment of. increments, classification of workmen into different grades, dearness allowance, restropective effect of the claim from 1st June, 1966, gratuity, sick leave and wages for Sundays and holidays when called upon to .Work The dispute was between-the D P Products (Private) Limited, Bombay and their workmen. A written statement was submitted by the Mumbai Mazdoor Sabha (2nd respondent), claiming to represent the majority of the workmen on: July 25, 1967. It appears that this written statement was signed by V. S. Pandit as General Secretary. The company submitted their written statement on August 17, 1967, in which; inter alia, they pleaded. incapacity to have greater burden on account of financial position. It was stated that the company had been making losses year after year since 1963-64 During the pendency of the dispute before the Tribunal, D P Products (Private) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rd respondent sent a communication to the respondent No. 2 with a copy to the company enclosing a letter signed by the workers stating that they had resigned from the 2nd respondent union. On June 25, 1973, the 3rd respondent sent a reminder to the company to recognise the Bombay General Kamgar Sabha. By a letter dated 2nd/5th July, 1973, to the President, Bombay General Kamgar Sabha, who was incidentally the same V.S. Pandit who had earlier submitted the written statement in behalf of the Mumbai Mazdoor Sabha, the company granted recognition to the Bombay General Kamgar Sabha and informed the 2nd respondent of its derecognition. On October 18, 1973, the company entered into a memorandum of settlement with the Bombay General Kamgar Sabha which was in substitution of the award which was pending appeal before this Court. Copies of this settlement were forwarded to the Secretary to the Government of Maharashtra, Industries and Labour Department, the Commissioner of Labour, the Deputy Commissioner of Labour and the Conciliation Officer. It is common ground that this is a settlement under section 18 (1) of the Industrial Disputes Act. The 3rd respondent applied to this Co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot fair, just and reasonable. (4) The rest of the Disputed Settlement is fair, just and reasonable. That is how this appeal has come up for bearing before us. The first question that arises for consideration is whether the findings. of the Tribunal are sustainable. The appellant and respondent No. 3. with one voice, have assailed the findings 1 to 3 whereas the 2nd respondent has supported all the findings. It is strenuously submitted by the 2nd respondent that there is no reason why we should interfere with the findings of fact returned by the Tribunal and relying upon these it is further contended that we should hear the appeal on the merits ignoring the settlement altogether. Before we proceed further it is necessary to appreciate the implication of the order of this Court passed on December 19, 1974, set out earlier. This order was passed after hearing the parties for some time when the appeal was first called for hearing on December 19, 1974. From the recitals in the order it is apparent that the parties were prepared to abide by the settlement if the same was fair and just. We are not prepared to accept the position, as urged by the 2nd responde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and also received the arrears and emoluments in accordance with the same. The Tribunal thought that the question of the quantum of membership of the 2nd respondent did not call for a finding at all in view of 1his Court s order. As observed above that was not a correct assumption. On the other hand, we feel that this view of the Tribunal has led it to approach the matter in an entirely erroneous manner. The Tribunal is, rightly enough, conscious that under section 18 (1) of the Industrial Disputes Act the settlement was binding on the company and the members of the 3rd respondent union. Even so, the Tribunal devoted nearly half of its order in scanning the evidence given by the company and respondent No. 3 to find out whether the terms of the settlement had been explained by the President of the union to the workmen or not and whether the workers voluntarily accepted the settlement knowing all the consequences . This to our mind is again an entirely wrong approach. When a recognised union negotiates with an employer the workers as individuals do not come into the picture. It is not necessary that each individual worker should know the implications of the settlement ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y the President. That, however, per se, does not make the settlement unfair or unreasonable. It is found by the Tribunal that in the matter of wages the settlement has given better terms and that the same cannot be said to be unfair. The Tribunal has stated in more than one place that the only objection to this settlement levelled by the 2nd respondent is with regard to the quantum of dearness allowance. While the award has given the Revised Textile dearness allowance, the settlement has substituted 86% and 871/2% of the Revised Textile allowance for the first and the second period respectively. While the award is for one year, subject to the provisions of the Industrial Disputes Act, the settlement is for a period of three years. Having regard to the totality of the terms of the settlement we are unable to agree with the Tribunal that the terms are in any way unfair or unreasonable. 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 wi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e should point out that there is some misconception about this aspect of the case. The question of adjudication has to be distinguished from a voluntary settlement. It is true that this Court has laid down certain principles with regard to the fixation of dearness allowance and it may be even shown that if the appeal is heard the said principles have been correctly followed in the award. That, however, will be no answer to the parties agreeing to a lesser amount under certain given circumstances. By the settlement, labour has scored in some other aspects and will save all unnecessary expenses in uncertain litigation. The settlement, therefore, cannot be judged on the touchstone of the principles which are laid down by this Court for adjudication. There may be several factors that may influence parties to come to a settlement as a phased endeavour in the course of collective bargaining. Once cordiality is established between the employer and labour in arriving at a settlement which operates well for the period that is in force, there is always a likelihood of further advances in the shape of improved emoluments by voluntary settlement avoiding friction and unhealthy litigation. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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