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1971 PLC 564

EMPLOYEES UNION vs MESSRS DAWOOD CORPORATION LTD., CHITTAGONG

Citation1971 PLC 564
CourtLabour Court
Case No.Industrial Dispute Case No. 40 of 1970
Date1970-07-18
Judge(s)M. A. Sabur, Ms. Nurul Huda, M. A. Meerza
ResultLeave allowed

1. AWARD MD. NURUL HUDA (CHAIRMAN). - This case arises out of a reference under section 32(3) of the Industrial Relations Ordinance, 1969 by the Provincial Government.

2. Things in the background may be recounted as follows: Dawood Corporation Limited Employees' Union is a registered Union. This Union as the Collective Bargaining Agent of the workers of the Dawood Corporation Limited, Chittagong submitted a charter of demands on 7-11-1969 to the second party (the Corporation). These were discussions between the parties, but no amicable settlement could be arrived at. The Union (the first party) then served notice of strike upon the second party with intimation to the conciliator. But no settlement could be arrived at even at the conciliation stage. Thereafter the first party workers went on strike with due notice from 9-3-1970. The Provincial Government prohibited the strike and referred the dispute to this Court. The workers, however, resumed their duties on 29-4-70. The first party in their written statement has specified the demands with the reasons in support of the same. They are all told 18. demands. We propose to discuss about the same in the body of the judgment.

3. The second party, Dawood Corporation Limited has also filed written statement. They say that their head office is at Karachi and that they have establishments at different places in East Pakistan. It is submitted by the second party that they asked the first party to make direct contact with the head office at Karachi. But the first party refused to do that. It is also said that the Conciliator of Chittagong Division has no legal jurisdiction to conciliate in the matter. The second party has given reply to the demands of the first party. They have accepted the reasonableness of some of the demands and have opposed some of the demands as being not reasonable to theta.

4. Before entering into a detailed discussion on the demands I propose to dispose of some preliminary questions. To my mind, Dawood Corporation Limited, Chittagong is a commercial establishment. The workers of the said establishment have got a registered Union. Dawood Corporation Limited may have different branches. It is not the case of any of the parties that the workers of those branches are members of the first party Union. We may take it that the workers of the first party Union are those of the establishment of the second party at Chittagong. There is thus no technical defect for the first party Union to raise an industrial dispute by placing their charter of demands before the second party, Dawood Corporation Limited, Chittagong, notwithstanding the fact that the head office is situated at Karachi. The employees of different units are not raising the demand, beet here the demands are raised by the employees of a particular establishment at Chittagong. Then again it is to be noted that the Provincial Government has prohibited the strike and referred the dispute between the parties for adjudication by this Court.

5. We now pass on to discuss all the demands seriatim ; Demand No. 1: Appointment.-Clause (a) of the demand insists that appointment letter should be issued to all employees at least one week prior to his joining in the work.

6. In my view the Corporation should issue appointment letter indicating salary and scale of pay, if any.

7. Clause (b) of the demands says that appointment letter should be issued to those who are working without having their appoint--ment letters.

8. Second party is agreeable to issue certificate of appointment showing the date of joining. In my view this will do.

9. Demand No. 2: Confirmation of service.-Clause (a) of the demand insists on confirmation on the expiry of probationary period. Clause (b) of the demand insists upon confirmation of those workers who have completed their probationary periods. There is practically no dispute by the second party to these demands. If the services rendered by the workers during the probationary period are satisfactory the workers should be confirmed on the expiry of the probationary period as provided by law.

10. Demand No, 3: Transfer.-It is agreed by the parties that no worker should be transferred by way of punishment and victimization for Trade Union activities and I need not say anything on it. But we are not agreeable to felling the discretion of the administration to transfer any worker to any place inconvenient to him provided the transfer is necessitated by the administration.

11. Demand No. 4: Working Hours.-It is demanded that the working hours should be 38 hours in a week. The existing practice under the second party is 41-- hours in a week. The Statute fixes maximum working hours in a week for 48 hours. No justification is offered for reducing further the working hours in a week, So; the demand for reduction of working hours is rejected, so also the demand for increase of the recess period as insisted in clause (b) of the demand.

12. Demand- No. 5: Leave. Privilege Leave allowed by the company seems to be less than what is guaranteed by law. It should as provided in section 13(I) of the East Pakistan Shops and Establishment Act, 1965. Accumulation beyond 30 days is not; however, permissible under the law.

13. Demand for 15 days, Causal Leave is unwarranted. The law provides for 10 days and the Corporation is allowing the same. So, the demand for Casual Leave for 15 days is rejected.

14. The Corporation is allowing Medical Leave far 14 days in a year. That is the rule of la v. The leave however, may accumulate up to 28 days at a time. Beyond that no demand should be made and the demand in excess of this is rejected.

15. Quarantine Leave.-The Corporation is agreeable to consider quarantine leave, if exigencies arise.

16. We leave it to the discretion of the second pasty and say nothing on it.

17. The Corporation is giving its workers 10 days Festival Holidays, beyond that there is no reasonable claim for Optional and Sectional Holidays and the demand for the same is rejected.

18. The Union demands Maternity Leave for 30 days with full pay and 30 days with half pay: There may not be any objec--tion to this and it may be treated as accepted.

19. For holding meetings of Trade Union, the Corporation has no objection in granting leave to the executive thereof. We leave the matter, to the discretion of the Company.

20. Both the clauses under this head are redundant in so far as the second party is agreeable, to the rules in this behalf as, provided in the Statute.

21. Demand No. 7; Salary.-It appears that the company, is giving fair salary to its clerical and subordinate staff. Salary claimed by the workers is much less than what the company is giving to them. Therefore, no question arises for adjudication.

22. Demand No. 8: Allowance.-As the company is paying fair pay there is no scope for compelling - the company, to pay Dearness Allowance.

23. The claim for allowances, such as; Conveyance allowance town allowance graduation allowance, to my mind are rather unreason--able and it is not known whether the company is in a financial position to meet the inflated demands of the workers in this regard. I fail to understand what is meant by graduation allowance. If one worker is allowed graduation allowance soma body will be coming for Intermediate allowance and there may be claim for extra allowance for post-graduate degree holder.

24. The Drivers cannot claim any extra allowance for works during their duty hours, even if he is required to go beyond 20 miles from the place of his posting in course of his duties. This is a fantastic claim for the drivers. During duty hours his services may be utilised for driving vehicles- arid there should be no restriction on his duty and no allowance as prayed for by the drivers.

25. There is also no scope-for special allowance as prayed for in clause (e) of demand No. 8.

26. More funny is the claim for children allowance. Our State which is a Welfare State has not yet decided to grant children allowance to its low paid employees. I do not think that I should compel the adminisiration to grant children allowance to the workers.

27. Demand No. 9: House Rent.-House Rent has been claimed at Rs. 50.00 for the clerical stall' and at Rs. 30.00 for the subordinate staff per month. The company is not agreeable to pay House Rent. In view of a fair scale of pay provided by the company, I think there should be no award for House Rent.

28. Demand No. 10: Provident Fund.-I think the company should introduce Provident Fund Scheme at an early date. The rate of contribution by the workers and the company and interest will be decided by the representatives of the company and the representatives of the Union. I think the financial position of the company is not such as I. find any. justifica--tion for non-introduction of this scheme, .which is of some benefits to the workers.

29. Demand No. 11: Bonus.-The workers demand two months' consolidated salary per year as bonus: The company, however, is agreeable, to pay bonus as may he declared by the company from time to time. There cannot be any order fixing bonus, for, the payment of 'bonus depends on the financial; position and the profit of the company in the particular year for which it is to be claimed or paid. If the company makes sufficient profit, the workers will also have some benefits-in that by, way of bonus, inasmuch as, they have also the contribution in the profit. With these observa--tions, I like' to say that I cannot; however fix the bonus as claimed by the workers: Demand No. 12: Service Book.-The Corporation is agreeable to open service books for the employees. They will open it as early at possible.

30. Demand No. 13: Free Medical Facilities. -Under the head the workers demand that true medical facilities should be provided to all the employees and their dependants. From the pay scale provided by the company to its employees and from other commitments in the written statement of the company, we can guess something about the financial position of the company. We have reasons to believe that the company is financially sound. To our knowledge various establishments are giving medical facilities to their employees. It is not, therefore, unreasonable to suggestion that the company should provide free medical facilities to its employees, if not to the dependants. I would direct accordingly Demand No. 14: Uniforms and Equipments. -The company is providing uniforms and, shoes to the Drivers, Peons and Darwans and during rainy seasons umbrella, or rain coat is also supplied to the field workers. Woollen Jersey also supplied to the Drivers, Peons and Darwans in every 3 years.

31. Beyond what is provided by the company I do not insist upon the company to provide anything more. I, however, observe that the Sweepers should also be supplied with some sort of uniforms as may be suitable for them and I should instruct accordingly.

32. Demand No. 15: Gratuity.---The Company is agreeable to intro--duce gratuity scheme and agrees to pay the gratuity as per law. On this, therefore, I think nothing more I should say.

33. Demand No. 16: General.-This does not come within the purview of our consideration, as it is not based on any reasonable ground.

34. Demand No. 17: Adjustment. The company has stated that the scale of pay are fixed by the Management on their merits according to the job performed by the employees. That is reasonable and we should not compel the company to divert from that.

35. Demand No. 18: Effective Date.-It is suggested that these demands will be effective from 1st November 1969. For apparent reasons this cannot be conceded or accepted.

36. In considering the demands of the first pay I have given reasons for accepting some of them fully or partially, or rejecting the demands in toto in their proper places. My findings arrived at under respective demands embody the summary of my award and I do not want to recapitulate them again. In arriving at the decisions referred to above I have fully considered the views of the learned Members.

37. The Award is given accordingly in the light of my findings made herein before. The second party do continue giving effect to the award within one month from today. It will remain in force for a period of two years from this date.

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