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TMI Blog2019 (7) TMI 1922X X X X Extracts X X X X X X X X Extracts X X X X ..... rly appointed in the establishment to whom wages are paid in terms of NJCS memorandum of Agreement dated 30th July, 1975. In the instant case, the establishment was duly registered under Section 7 of the Act and the contractor through whom the contract labour was engaged was holding its licence under Section 12 of the Act but in the changed circumstances, the appropriate Government took a decision to put a prohibition in making employment of contract labour in scheduled employment for various reasons which is not a subject matter of enquiry in the instant case and in consequence of the prohibition notification dated 17th March, 1993 published under Section 10(1) of the CLRA Act, the contract labour working in the establishment ceased to function and the contract between the principal employer and contractor stands extinguished. In the instant case, after issuance of the prohibition notification dated 17th March, 1993 under Section 10(1) of the CLRA Act having being published, in our considered view, the provisions of the CLRA Act or CLRA Central Rules, 1971 framed thereunder would not be available to either of the party to strengthen its claim - minimum wages as prayed for in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... history of the matter for proper appreciation. The erstwhile contract labourers(respondents herein) worked at the captive Limestone and Dolomite mines in the establishment of the appellant SAIL initially filed writ petitions claiming regularisation with back wages in view of the law laid down by three Judge Bench of this Court in the case of Air India Statutory Corporation and Others Vs. United Labour Union and Others 1997(9) SCC 377 wherein it was held that on issuance of prohibition notification under Section 10(1) of the CLRA Act, the logical and legitimate consequences would be that the erstwhile contract labourer covered by the sweep of such abolition for the activities concerned would be entitled to be treated as direct employee of the employer on whose establishment they were earlier working and they would be entitled to be treated as regular employees from the day on which the contract labour system in the establishment for the work which they were doing gets abolished. The aforesaid judgment of this Court was subsequently overruled by the Constitution Bench of this Court in Steel Authority of India Ltd. and Others Vs. National Union Waterfront Workers and Others 2001(7) SC ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ice bearers of the Applicant s Union repeatedly represented the matter of the Assistant Labour Commissioner, Chief Labour Commissioner Secretary, Ministry of Labour, Hon ble Minister for Steel, Chairman, Steel Authority of India and even the Prime Minister, for payment of wages as regular employees. Because of the strong and persistent opposition of one of the opponent, Minimum Wages is denied to the Applicant. 12. The applicant has been reporting for work on all the working days from 17/3/1993 onwards. However, after May, 1996 he was refused work even when the reports for duty. The applicant was always ready and willing to work. There was no termination of services of the applicant. The applicant will be deemed to be in service and entitled to all the benefits, including wages. 16. The applicant has not been paid the wages as per Minimum Wages from 17/3/1993. The exact figures of amount due i.e. difference etc. are available with the management and within their special knowledge. The opponents are in possession of all the records and details of the payment due as per wage agreement and other details. They are liable to produce the same before this Hon ble Authority to make a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ppeals before us. 11. Learned senior counsel for the appellants Mr. Ranjit Kumar and Mr. Parag P. Tripathi submit that the parity of wages was one of the issue nos. 5 6 based on the pleadings of the parties framed by CGIT pursuant to the reference made by the appropriate Government and both the issues have been negatively answered under its award dated 16 th September, 2009 holding that respondents are not entitled to wages as per National Joint Committee for the Steel Industries(NJCS) vide memorandum of agreement dated 30th July, 1975 which is applicable only to direct/regular employees of SAIL. 12. The submission of the learned counsel is that at least the parallel proceedings which are summary in nature initiated under the Minimum Wages Act, 1948 keeping the reference made for adjudication to the CGIT at bay were unwarranted and despite their objection being raised, it was overruled and the applications of the workmen came to be decided under Order dated 2nd December, 2003 by the prescribed authority under the Minimum Wages Act, 1948 which was without jurisdiction and such applications filed at the instance of the workmen was not maintainable under the law. 13. Learne ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... concerned labour authorities dated 12th November, 1991 and binding upon the parties. 16. Learned counsel for the appellants further submits that in sequel to the notification dated 12th November, 1991, the Ministry of Labour, Government of India, vide its notification dated 12 th July, 1994 revised the minimum rate of wages payable to the workers employed in the mines appended Clause 5 to the explanation that in case the existing rates of wages of any employee as per agreement are more than the minimum notified rates shall be protected and be treated as the minimum rates of wages and that according to the appellants have been paid to each of the workmen who had served the establishment of the appellants after issuance of the prohibition notification dated 17 th March, 1993 till their services came to be terminated by the contractor in April 1996. 17. Learned counsel further submits that the State of Madhya Pradesh under its Act No. 23 of 1961 has made certain amendments to the Minimum Wages Act, 1948. These amendments as explained in its object and reasons was enacted as validating legislation. The validation arose in the context of the High Court of Rajasthan quashing its ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... their absorption and regularisation of service, it was indeed a subject matter of adjudication in a reference made by the appropriate Government under its notification dated 27th January, 2003 followed with 22nd February, 2005 but so far as their minimum wages payable to the employees are concerned, it was an independent issue having no relationship to the terms of reference pending before the CGIT at the relevant point of time and after issuance of prohibition notification dated 17 th March, 1993 under CLRA Act, such of the contract workers who had served thereafter in the establishment of the appellants became their employee and can no longer be treated as contract workers. 20. Learned counsel submits that after the contract of service agreement stands extinguished indisputedly the work discharged by the employees(earlier contract workers) is same and similar as of the regular employees and it is not open for the appellant to have two different wage structures for the employees of the establishment of SAIL and it was indeed arbitrary and violative of Article 14 39(d) of the Constitution of India and the wage structure applicable to the employees of SAIL has rightly been exte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and conditions with no change in their service conditions under the agreement which was executed prior to the prohibition notification dated 17th March, 1993, was extended from time to time by the competent authority and the services of the contract labour came to be terminated by the respective contractor in the month of April, 1996 after they went on strike. 23. After discontinuance of the service of the contract labour by the respective contractor in April, 1996, 2040 employees/contract labour through their union filed their respective applications in the year 1998 under Section 20(1) of the Minimum Wages Act, 1948 before the prescribed authority to claim parity with the wages payable to the employees who were direct/regular employees of the establishment of SAIL under the Minimum Wages Act. 24. After issuance of a prohibition notification under the CLRA Act dated 17th March, 1993, the erstwhile contract labourers/respondents herein filed writ petitions to claim regularisation of service and backwages in view of the law laid down by three Judge Bench of this Court in Air India Statutory Corporation and Others case(supra) wherein it was held that on issuance of prohibition ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onal Joint Committee for the Steel Industry (NJCS) started its functioning initially in the name of JWNC(Joint Wage Negotiating Committee) in October 1969 and was primarily established in pursuance of the decision taken by the industrial committee on iron steel in October, 1969. The Committee has now changed its name as National Joint Committee for the Steel Industry (NJCS). The scope of the NJCS presently covers : i) Negotiations for wage agreement and its implementation. ii) Matters pertaining to and steps to be taken for increase in production, productivity, improvement in quality, reduction of cost and wastage etc. iii) Review of welfare amenities and facilities. iv) Matters on which it is necessary to draw the attention of the government; and v) Any other matter pertaining to steel industry and its employees as may be agreed to in the NJCS, from time to time. 29. The membership of NJCS comprises 21 union leaders three each from four national centres of trade unions: INTUC, AITUC, CITU and HMS, one each from recognized unions of the steel plants like Bhilai, Durgapur, Rourkela, Bokaro, TISCO, IISCO, Alloy Steels, Salem and VISL, and 12 management staff man ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Government on its acceptance notified the minimum wages which are payable to the category of employees referred to under Section 2(i) of the Minimum Wages Act, 1948. 32. Indisputedly, in the first place, the minimum wages which were notified by the appropriate Government from time to time under tripartite memorandum of agreement dated 12th November, 1991, signed by the appellant SAIL and the respondents before the Assistant Labour Commissioner(Central), Jabalpur effective from 1st April, 1991, it was agreed that the contract labour would be paid Rs. 11.65/ per day over and above the notified minimum wages with effect from 1st April, 1991 which has been indisputedly paid by the appellant SAIL till the employees were allowed to work in the establishment i.e. April, 1996 when their services came to be terminated by the contractor. 33. The exposition of scheme of the minimum wages Act, 1948 and its jurisdiction to invoke Section 20(1) of the Act has been examined by this Court in Town Municipal Council, Athani Vs. The Presiding Officer, Labour Courts, Hubli and Others, Etc. (supra). 7. The long title and the preamble to the Minimum Wages Act show that this Act was passed wi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der clause (b) or clause (c) of sub-section (1) of Section 13 or of wages at the overtime rate under Section 14, to employees employed or paid in that area. (2) Where an employee has any claim of the nature referred to in sub section (1), the employee himself, or any legal practitioner or any official of a registered trade union authorised in writing to act on his behalf, or any Inspector, or any person acting with the permission of the Authority appointed under sub-section (1), may apply to such Authority for a direction under sub section (2): Provided that every such application shall be presented within six months from the date on which the minimum wages or other amount became payable: Provided further that any application may be admitted after the said period of six months when the applicant satisfies the Authority that he had sufficient cause for not making the application within such period. (3) . (4) . (5) . (6) . (7) . We have mentioned these provisions of the Minimum Wages Act, because the language used at all stages in that Act leads to the clear inference that that Act is primarily concerned with fixing of rates - rates of minimum wages, overt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed to cover all claims in respect of minimum wages or overtime payment or payment for days of rest even though there may be no dispute as to the rates at which those payments are to be claimed. It is true that, under Section 20(3), power is given to the Authority dealing with an application under Section 20(1) to direct payment of the actual amount found due; but this, it appears to us, is only an incidental power granted to that Authority, so that the directions made by the Authority under Section 20(1) may be effectively carried out and there may not be unnecessary multiplicity of proceedings. The power to make orders for payment of actual amount due to an employee under Section 20(3) cannot, therefore, be interpreted as indicating that the jurisdiction to the Authority under Section 20(1) has been given for the purpose of enforcement of payment of amounts and not for the purpose of ensuring compliance by the employer with the various rates fixed under that Act. This interpretation; in our opinion, also harmonises the provisions of the Minimum Wages Act with the provisions of the payment of Wages Act which was already in existence when the Minimum Wages Act was passed. In the pre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... te as a result of contract of principal employer with the contractor in regard to the contract labour having been statutorily extinguished, their relationship stood automatically converted into the employer (i.e., SAIL in the instant case) and the employee (i.e. contract labour) making them entitled for wages which are notified by the NJCS as per the memorandum of agreement which is payable to direct/regular employees of SAIL. 36. The Division Bench of the High Court has also relied on the scheme of CLRA Rules, 1971 and Rules 25(iv) and (v) in particular while arriving to a conclusion that the workmen since were allowed to continue to work by the principal employer after the prohibition notification dated 17 th March, 1993 has come into force, and they were discharging same or similar kind of work as the workmen directly employed by the principal employer in the establishment, makes them entitled for similar wages admissible to the regular employees appointed/engaged by SAIL. Rules 25(iv) and (v) of Rules, 1971 are extracted hereunder: (iv) the rates of wages payable to the workmen by the contractor shall not be less than the rates prescribed under the Minimum Wages Act, 194 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act and the contractor through whom the contract labour was engaged was holding its licence under Section 12 of the Act but in the changed circumstances, the appropriate Government took a decision to put a prohibition in making employment of contract labour in scheduled employment for various reasons which is not a subject matter of enquiry in the instant case and in consequence of the prohibition notification dated 17th March, 1993 published under Section 10(1) of the CLRA Act, the contract labour working in the establishment ceased to function and the contract between the principal employer and contractor stands extinguished. 39. To make it further clear, Rule 25 of the Rules, 1971 of which there was an emphasis before the High Court, may not come to the rescue of the respondent employees for the reason that it was an obligation upon the contractor who are holding a licence under Section 12 of the Act and as per the terms and conditions of the licence granted under sub-rule (1) of Rule 25 or renewed under Rule 29, to comply with certain conditions enumerated under sub rule (2) of Rule 25 of the Rules 1971 which includes clause (iv) and (v) to be complied with by the contracto ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be kept in mind by the committees while prescribing the minimum rate of wages payable to the workmen of a different category. Under Section 3 of the Minimum Wages Act, 1948 the appropriate Government may fix minimum wages for time work, minimum rate of wages for piece work, minimum wages in respect of overtime work defined under sub-Section 2 of Section 3 of the Act and the amendment made in Section 3 of the Act also take note of different classes/categories of employees in such employment while the notification under the Minimum Wages Act, 1948 came to be published by the appropriate Government. 43. In the given circumstances, a mere assertion of fact that the contract labour which was allowed to continue after the prohibition notification came to be published dated 17 th March, 1993 in the establishment of the appellant SAIL performing same or similar kind of work in the establishment of the principal employer is not sufficient to endorse their entitlement of claiming wages notified by the NJCS memorandum of agreement for direct/regular employees of the establishment applicable universally to all the steel industries. The Judgment relied upon by the learned counsel for the r ..... X X X X Extracts X X X X X X X X Extracts X X X X
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