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1997 PLC 237

REGNIS EMPLOYEES' UNION, KARACHI vs M/s. REGNIS PAKISTAN LIMITED

Citation1997 PLC 237
CourtLabour Appellate Tribunal
Case No.Appeal No, KAR-91 of 1994
Date1996-03-24
Judge(s)Mushtaq Ali Kazi
ResultAppeal dismissed

DECISION ' This appeal arises from the decision of First Sindh Labour Court, Karachi, dismissing the application of Regnis Employees Union filed against the Regnis Management raising Industrial Dispute for adjudication.

2. The facts in brief are that Singer Sewing Machine Company extended its business to manufacturing Gas Appliances, Furniture etc. And changed the name of the Company in 1985 by substituting "Regnis", the reverse of "Singer". The Registrar of the Trade Unions was informed that the former Singer Employees Union had ceased to exists and there could not be two C.B.A. In one establishment. The Singer Employees Union raised an Industrial Dispute in respect of raising the various allowances, bonus, gratuity, daily bhatta and fixation of the age of retirement at 57 years in place of 55. The conciliation etc. Having failed the dispute was raised before the Labour Court No, 1.

The management raised preliminary objections that the Industrial Dispute could not be raised by Regnis Employees Union because there were two C.B.As. In the same Group of Establishment and that the Regnis Employees Union as C.B.A. Consisted of only 11 members out of which 8 were office- bearers when under section 5 of the Sindh Industrial Relations Rules, 1973 there could be 5 office- bearers when there were 50 workers in the Union,. That under section 22(2) of the I.R.O. Only one Collective Bargaining Agent had to be chosen by Secret Ballot and the Union so chosen should have at least 1/3rd of the total number of workers as its members. This application raising preliminary legal objections was dismissed on the ground that these were mixed questions of law and fact requiring recording of evidence. However, no evidence was led to show any justification for the demands, by establishing that other comparable concerns offered better terms to their workers. The Labour Court, therefore, held that under section 43 of the I.R.O. The Industrial Dispute had not been raised in the prescribed manner by a collective bargaining agent or an employer and on facts also no evidence had been led that other comparable concerns offered better terms.

The petition was, therefore, dismissed.

3. Mr. M.A.K. Azmati, Advocate for Regnis Employees Union i,e, the appellants, has argued that the factory of the Company was at Korangi and the Office was at 10 Garden Road, Karachi. That both were Unions running since 1964. One was Singer Labour Union and the other Singer Employees Union. That one was commercial establishment and the other was Industrial Establishment, there could, therefore, be two C.B.A. One for Commercial and other for the Industrial Establishments.

4. It has, on the other hand, been argued by Mr. Mahmood Abdul Ghani that there could only be one C.B.A. For the entire Group of Establishment and in this case one Labour Union had members in the Head Office in Garden Road as well as in the Singer Labour Union and when there were more Unions than one under section 22(2) of the I.R.O. Application had to be made to the Registrar to choose one collective bargaining agent by Secret Ballot. He has quoted 1992 PLC 125 a ruling of the High Court of Sindh at Karachi, in Rice Export Corporation's case wherein it was observed that' there cannot be two C.B.As. In an establishment at one and the same time. One local C.B.A. And the other Industrywise C.B.A.

5. In any case the C.B.A. Raising Industrial Dispute has not produced any evidence of comparable concerns allowing better terms to the workers. The Union has also failed to prove how the respondent company has capacity to meet with the demands involving financial implications raised by them.

6. The appeal is, therefore, dismissed.

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