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1975 PLC 321

Malik FAZAL HUSSAIN vs MANAGEMENT OF SALT MINES, KHEWRA

Citation1975 PLC 321
CourtNational Industrial Relations Commission
Case No.Case No. 9(5) of 1974
Date1975-03-12
Judge(s)Abdul Hameed Malik
ResultN/A

1. AWARD The dispute between the Mines Employees and Labour Union, Khewra and Management of Salt Mines Khewra was referred to the Commission by the Federal Government in exercise of the powers conferred by clause (c) of subsection (8) of section 22-A of the I. R. O. for adjudication and determination under Letter No. LR-l(9)/74, dated 3rd July 1974. The dispute relates to a number of demands and the Management filed their written reply on lst August 1974. Malik Fazal Hussain who claims to be the General Secretary, Mines Employees and Labour Union, Khewra, however, requested for adjournment on the ground that he wanted to study the written reply filed by the Management and that he also wanted to engage a counsel. The case was accordingly adjourned to 2-9-1974. On 2-9-1974 the learned counsel for the applicants was directed to produce evidence on 20-9-1974 and to supply list of witnesses, if any, within a week. The respondent-Management was also directed to produce a copy of the agreement said to have been signed with the miners on 30-4-1974 alongwith an increase of 90 per cent, in wages. The case was subsequently heard on 20-9-1974, 30-9-1974, 15-8-1974 and 2-11-1974. I also visited the mines on 21-12-1974 to acquaint myself with the working of the workers as well as miners inside the mines. On 10-2-1975, the General Secretary of the Union Mr. Fazal Hussain stated that the Union was confining their dispute to the demand relating to increase in wages, and closed his evidence. The respondents also closed their evidence on that date. The facts of the case briefly stated are that the Management had entered into an agreement on 12-9-1973 with the Mines Employees and Labour Union, Khewra which is the C. B. A. for the Workers of Khewra Mines and agreed to increase their basic wages by 15 per cent, in addition to Rs. 35 C. L. A. as allowed by the Government. This settlement was to remain in force for 2 years. The Management, however, entered into another agreement with the West Pakistan Salt Miners Union, Khewra on 30-4-1974. This Union which claims to represent the Miners is not the C. B.

2. A. The Management under this settlement agreed to raise the excavation rate of 50 paisa per maund to 95 paisa per rnaund, the excavation rate of Khallar from 50 paisa to 70 paisa per sq. ft. and the rate of band Khathi and Patch Measurement from Re. 1 per sq. ft. to Rs. 1.50 per sq. ft.

3. Subsequently the General Secretary, Salt Mines Employees and Labour Union, Khewra served a demand notice on the Management on 12-6-1974 demanding among other things merger of all allowances with basic pay and an increase of 150 per cent, in the wages. Since no settlement was arrived at on these demands the workers went on strike from 19-6-1974. The Management filed application under sections 45 and 53 of the I R. O., 1969 before the Punjab Labour Court No. 2, Lahore which issued orders on 19- 6-1974 prohibiting the continuance of strike. This dispute has now been referred to the Commission for adjudication. The respondent-Management in this case have submitted that the petitioner-Union had entered into a settlement with them on 12-9-1973 for a period of 2 years and the same was still in force. They have pointed out that the Union had agreed not to raise any demand involving any financial implications either directly or indirectly and not to go on strike of any kind or resort to any interruption or slow down of work or adopt any such tactics whatsoever. According to them the petitioner-Union, therefore, could not raise the present demand and as such the present dispute was not an industrial dispute as it was not raised in the prescribed manner. As for demand for increase in wages was concerned the respondents submitted that it was impossible for them to bear the financial implications of the demand as it involved recurring annual expenditure of Rs. 45,44,206. They also mentioned that the project was already incurring heavy financial loss and the net loss for the financial year 1973-74 was to the tune of Rs. 14,15,442.59 and that the project was likely to sustain a loss of Rs. 53,08,000 and the cumulative loss would amount to Rs. 1,06,61,947 by 30-6-1975, as against the investment in the project of Rs. 26,28,493. They also submitted that under the settlement dated 11-9-1973 the Management has granted considerable benefits to the workers in addition to Dearness Allowance of Rs. 35 as provided under the Cost of Living Allowance Ordinance, 1973. The applicant-Union however, submitted that the Management had bypassing and ignoring the C. B. A. entered into a settlement with the West Pakistan Salt Miners* Union, Khewa as a result of which the wages of the miners have been raised by 90 per cent., whereas the corresponding increase was made in the wages of the employees and the workers in general. Thoy also pointed out that the cost of living during the past 2 years has risen by 200 per cent. bJt no rise in the salary commensurate with the rising cost of living has been given to the workers by the Management except an increase of 15 per cent, in their salary which apparently was inconsequential. I do not agree with the respondent's contention that this dispute was not covered under the definition of Industrial Dispute as it has not been raised in accordance with the provisions of the I. R. O. The dispute hat been referred to the Commission under clause (c) of subsection (8) of section 22-A being a dispute of national importance for adjudication and determination and I do not consider it within my competence to examine the legality or otherwise of the reference made by the Federal Government. I, however, feel that the settlement entered into by the Management with the West Pakistan Salt Miners Union, Khewra which was not a C. B. A. A was absolutely illegal as this settlement had been entered into by the Management in spite of the fact that the Assistant Director Labour Welfare, Gujrat had informed the West Pakistan Salt Miners Labour Union under his letter dated 13th April 1974 that it did not enjoy the status of C. B. A. and as such the Strike Notice served by it was declared as illegal. I also faill^ to understand as to how the Deputy Director, Labour, Rawalpindi Regioni countersigned the illegal agreement contrary to the stand taken earlier by thej Directorate that the West Pakistan Salt Miners Labour Union was not aj C. B. A. I must say that had this agreement not been entered into by the Management with the Miners' Union, the present dispute with the Mines Employees and Labour Union would not have arisen. With these observations I proceed to adjudicate and determine the dispute relating to Demand No. 1 since the Union had withdrawn all other demands. The applicant- Union's main contention has been that the miners had been given an increase of 90 per cent, in wages and as such they were also entitled to a similar increase in their wages. The respondents have submitted that although miners' average gross wage after the increase under the settlement dated 30-4-1974, amount to Rs. 684 per month but out of these wages a miner pays 50 per cent, to his helper who is a unregistered miner and assists him in excavation. It has also been stated that the miner has to incur the expenditure relating to blasting powder, safety fuses, country oil and tolls. According to the respondents since January 1969, the increase in the wages of the miner has been 217 per cent, while in the case of workers it has been 250 per cent, and that the disparity between the wages of miners and others workers has always been recognised. During the course of ray visit to Khewra, I saw that the workers wore required to perform work of the following categories :-- (1) Laying of track. (2) They use machines to undercut the salt surface. (3) They do shot firing. (4) They perform haulage of tubs full of salt from inside the mines to the ground level.

4. The miners perform the following duties inside the mines :-- (1) They bore holes wherein powder is put by the workers and later blasted. As soon as the rocks fall then the miners cut them into pieces and load in the tubs. (2) Sometimes the "Miners" carry the broken salt up to a distance of I0O feet to load it in the tubs. (3) Lastly they do the face dressing. It may be added that after blasting . some time the salt does not fall down from the rock and some pieces are left over which are made to fall down by the "miners" by "face dressing". Both the parties are agreed that the "miners" are not expected to work outside the mines. Their job is finished as soon as they load the salt into the tubs.

5. Loading or unloading of railway wagons is done by the "workers" ol C. B. A. In short, the entire work outside the mines is done by the "workers" of C. B. A. The General Secretary of the C. B. A. also informed me that out of the total strength of 1025 members of the Union, about 600 work inside the mmes. This figure, however, was controverted by the Project Manager. He has further informed me that the number of "miners" is 685. lt is pertinent to note in this connection that the "workers" of C. B.

6. A. are monthly-rated whereas the "miners" are piece-rated. They are assigned specific work on the lst of every month which they are required to complete within that month. As such their attendance is not strictly secured. Previously, each "miner" was paid paisa 50 per maund of salt extracted.

7. Since 30th April 1974, each miner is being paid paisa 95 per inaund. It is alleged that the said increase was made under Government instructions. As against this, the C. B. A. was ignored totally and that, therefore, their contention is that they should be given at least the same wages as had been given to the miners since 30th April 1974. I have already mentioned above that the workers of C. B. A. are monthly-rated and the miners are piece-rated. The respondents have stated that the Miners' average gross wages after the increase under the settlement dated 30-4-1974 amounts to Rs. 684 per month whereas according to the applicant-union these wages amount to R.S. 755 per month. Similarly the average gross wages of the workers are ay 0 per cent, of their wages to the helpers who are unregistered miners md assist them in excavation. It has already been pointed out that the nine l-s have also to incur expenditure relating to blasting powder, safety fuses, ounlry oil and tools. It has also been pointed out that Mr. S. R. Desh ande in his enquiry report in the year 1941 had stated that the miners ave to spend 45 per cent of their total income on the material which ley use for work in the mines. Assuming the percentage as worked out y Mr. S. R. Desh Pande to be corect even in these days, the miners might be tending approximately Rs. 340 on this account leaving a balance of s. 415 per month. 1 do not feel fully satisfied that those miners invariably iy half of their wages to the helpers who are unregistered workers. It also ies not otherwise make one convinced that a helper would equally share the wages with the miner. I, therefore, conclude that whereas a miner is now getting approximately Rs. 400 per month after deduction of the expenses of material etc. a worker is getting Rs. 254 per month inclusive of Dearness Allowance. There is, therefore, disparity in the wages of the workers and the miners although both the categories of workers contribute equally towards production. The Management have mentioned that the project has incurred losses but they have also increased the price of salt from lst February 1975. Keeping in view the above facts, I feel that there is justification for an increase in the wages of the workers and I award that the basic wages of the workers excluding the miners should be increased by 50 per cent, with effect from 1st May 1974.

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