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1998 PLC 521

HABIB BANK LIMITED, KARACHI through Attorneys vs HABIB BANK EMPLOYEES FEDERATION OF PAKISTAN through President, Multan and another

Citation1998 PLC 521
CourtNational Industrial Relations Commission
Case No.Case No, 12(93) of 1994
Date1997-06-22
Judge(s)Syed Ijaz Hussain Gillani, Muhammad Zaman Qureshi, Agha Salim
ResultAppeal dismissed

ORDER

' MUHAMMAD ZAMAN QURESHI (CHAIRMAN).---This appeal instituted by Habib Bank Limited is directed against the decision of the Single Bench of this Commission dated 17-11-1994 recorded in Cases Nos.7(60) of 1994 and 24(278) of 1994 whereby the petition filed by Habib Bank Limited Employees Federation of Pakistan through its President, was accepted and the respondent/appellant Bank was directed to consider the children of the deceased employees or children of the deceased members of the staff against first available vacancy in each grade as a candidate for which a child would be eligible under the normal rules and not to recruit upon posts of Cashiers and Guards without complying with the requirements of para. 145 as enumerated above, of the Wage Commission Award, in future.

2. Briefly stated, the facts are that respondent No, 1 filed an application under section 34 of the Industrial Relations Ordinance, 1969 praying that the respondent/appellant be restrained from conducting tests and interviews for recruitment of Cashiers and Guards and they be further restrained from violation of the lawful rights guaranteed and secured to the petitioner/respondent under the Wage Commission Award as well as under the various settlements between the parties on various occasions. An application under Regulation 32(2) of the N.I.R.C. (Procedure and Functions) Regulations, 1973 was also filed on which an interim order was issued. The present appellant filed reply to the application and raised several legal/factual objections. Respondent No, 2 claiming to be the C.B.A. In the establishment filed an application for being impleaded as a party.

They were, therefore, alloWed to join proceedings. On the basis of the pleadings of the parties, affidavits and the documents brought on record, the impugned order was recorded by the Single Bench of this Commission.

3. The learned counsel for the appellant has vehemently argued that the application filed by respondent No, 1 under section 34 of the I.R.O., 1969 was not maintainable as they were not the C.B.A. In the establishment and that respondent No, 2 was in fact the C.B.A. It was further submitted that respondent No, 2 had filed an application before the Sindh Labour Court No,V, seeking similar relief as was sought by respondent No, 1, which was dismissed on 20-4-1995. It was further urged that on 4-11-1990 Sixth Wage Commission Award was announced and paras. 112 to 114 thereof override para. 145 of the Fourth Wage Commission Award.

4. Learned counsel for respondent No, 1 filed written objections for rejection of the appeal. He also verbally urged that in para. 145 of the Fourth Wage Commission Award, certain rights were given to the members of the families of the deceased employees of the Bank which were protected by para. 59 of the Vth Wage Commission Award, but no quota of posts was fixed. Similarly, in paras.

112, 113 and 114 of the Sixth Wage Commission Award, the fixation of quota was declined while the right given by para.145 of the Fourth Wage Commission Award was not disturbed. He further argued that according to para. 145 of the Fourth Wage Commission Award, the right guaranteed is only to this effect that preference is to be given if the member of the family of the deceased employee otherwise fulfills the requisite qualifications for particular post against which recruitment is to be made.

5. Learned counsel for respondent No, 1 further argued that the application submitted by respondent No, 2 was not maintained as respondent No,1 is a federation registered with the National Industrial Relations Commission and there is no other federation existing in the establishment of appellant, and therefore, being the only federation in the establishment of the appellant if enjoys the status of C.B.A.

6. It was next argued that under section 38-D of the I.R.O., 1969 the Wage Commission Award shall be deemed to be the award of the Full Bench of the Commission and hence could be enforced through an application under section 34 of the I.R.O., 1969. He further submitted that mere mention of a wrong section in the petition would not render the proceedings infructuous. To support his contention, he placed reliance on 1994 SCM R 555. Respondent No, 2 supported the contentions raised by respondent No,1 and adopted the arguments of the learned counsel of respondent No, 1.

7. We have heard the detailed arguments of the learned counsel for the parties and have also gone through the record. In order to properly appreciate the implications involved, it appears proper to reproduce para. 145 of the Fourth Wage Commission Award, para. 59 of the Fifth Wage Commission Award and paras. 112, 113 and 114 of the Sixth Wage Commission Award:-- ' AWARD OF THE FOURTH WAGE COMMISSION FOR THE BANKS AND FINANCIAL INSTITUTIONS, 1984 "Para. 145.---It has been represented to us that in the event of death of employees while in service, even after taking into account the payment from provident fund, pension and gratuity, families of the deceased face considerable financial difficulties. As a measure of providing further financial help to families of deceased employees at least one child of the deceased member of the staff should be appointed by the Bank or Financial Institution concerned against the first available vacancy in the grade for which the child would be eligible under the normal rules. The demand is fair and reasonable and we decide that at least one child of a deceased employee, who satisfies the qualifications for entry into service, may be appointed in the service of the bank or Financial Institution concerned against the first available vacancy, in preference to other candidates."

' AWARD OF THE FIFTH WAGE COMMISSION FOR BANKS AND FINANCIAL INSTITUTIONS-JULY, 1987 "Para. 59.---Representatives of the staff unions have demanded earmarking of a fixed quota for the children and the near relations of the clerical and non-clerical staff. Existing arrangements as available in the previous Award are sufficient to safeguard interests of the employees and no further change is required. For ourselves we are averse to fixing of a separate quota for the children of the employees, either in service or retired, since it prevents induction into service of fresh talent as a result of fair competition."

' AWARD OF THE SIXTH WAGE COMMISSION FOR BANKS AND FINANCIAL INSTITUTIONS-OCTOBER. 1990 Reservation of Quota: Para. 112.---It was pressed by the representatives of each staff union appearing before the Commission that some vacancies in each grade should be reserved for the children of serving/retired/deceased employees so that the difficulty faced by the employees in finding out employment for their children was to some extent removed. They submitted that even in banks and financial institutions some posts are reserved for retired army personnel. It was urged that the quota system was not foreign to many of the employments under Government."

' Para. 113.---It is true that some vacancies in banks and financial institutions are reserved for retired defence personnel, but that is so because the posts on which they are appointed demand professional requirements which are in better way met by the retired defence personnel. There is, therefore, some justification for such reservations.

' Para. 114.---As far as the Commission is concerned, it is not in favour of reservation of any quota for any one because such reservations cut at the root of merit and the Commission would not like to become party to such an exercise. Further, reservation of vacancies for the employees' children would be violative of the equality clause contained in Article 25 of the Constitution."

8. The bare reading of the above paragraphs clearly shows that in the Fourth Wage Commission Award, which is deemed to be an Award of the National Industrial Relations Commission under section 38-D of the I.R.O.. 1969, it was decided that at least one child of a deceased employee who satisfied the qualifications for entry into service may be appointed in the service of the Bank, or Financial Institution concerned against the first available vacancy, in preference to the other candidates. This position was not changed either by para. 59 of the Fifth Wage Commission Award or paras. 112, 113 and 114 of the Sixth Wage Commission Award, which in fact related to fixation of quota in each grade for the children of serving/retired/deceased employees. This position has further been made clear in para. 114, that reservation of vacancies for the employees' children would be violative of the equality clause contained in Article 25 of the Constitution. The demand of the unions' representatives was in general terms for all types of employees D. On the contrary, para. 145 of the Wage Commission Award deals in particular with one child of deceased employee only who otherwise satisfies qualifications for entry into service.

9. It is an admitted position that respondent No, 1 is a Federation registered with the National Industrial Relations Commission and there is no other federation existing in the Establishment of the Appellant Bank. The Bank has also been recognizing it as C.B.A. Under section 52 of the I.R.O., 1969 and had entered several settlements with it. It could, therefore, file an application under section 34 of the I.R.O., 1969 for enforcement of a right guaranteed to it (all the deceased employees of the Bank) under the Award of the Wage Commission (N.I.R.C.).

10. In view of the above, we are of the considered opinion that the decision recorded by the learned Single Member of this Commission is justified. There is thus, no merit in this appeal, which is

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