1971 PLP 437 (PLC)

4. The Management of the Mills refused to make a payment of 21 days wages as bonus in advance and maintained that any payment of bonus shall be made after the decision of the arbitrator relating to bonus formula. On the joint request of both the parties and the Joint Director, Labour Welfare, Hyderatad, and also in the larger interests of the good relations between the parties and the District Administration: I accepted their request after obtaining written permission from the High Court. This arbitration is authorised under section 31, Industrial Relations Ordinance, 1969.

5. The parties gave me a draft agreement dated 19th Sep tember 1970, which is signed by them on 21st September 1970. The terms of agreement set down by them are as under :‑‑ (1) The parties agree to refer the disputes relating to evolution if a Bonus Formula for arbitration to Mr. Hamza Khan Qureshi District and Sessions Judge. Hyderabad, with a request to give his award by the 20th October 1970 in view of the urgency of the matter. (Note.‑At the request of the parties and due to their weighty and lengthy arguments the date of award was extended upto 20th November 1970). (2) The, parties agree that the Award of the arbitrator shall be final and binding and no appeal shall lie against that award. (3) The Union's representatives agree not to raise any demand for bonus during the period of operation of the award as laid down by the arbitrator. (4) The Management wanted an assurance that the repairs shall be completed by 1st November 1970 and the Union has agreed to co‑operate fully in completing the repairs as early as possible. The agreement with the short recital of the fact and, con tentions of both the parties is before me. It is duly signed by three representatives of the Mills and 5 representatives of tae Union. It is attested by the Deputy Director, Labour Welfare, Hyderabad Region. The parties were called upon to file their written statements in the first instance and then adduce the evidence if any, and then argue the matter. The General Manager of the Fauji Sugar Mills filed his written statement on 1st October 1970, while. Mr. Ghazanfar Ali, General Secretary of the Union, filed the written statement on behalf of the Employees on 2nd October 1970. Both the parties supplied copies of their written statements to each other. The matter was fixed for evidence on 12th October 1970. With the consent of the parties the date of the award was extended up to 20th November 1970. No evidence was led on either side, hence the matter was fixed for arguments on 29th October 1970. On this date the arguments of both the sides were heard at full length and the matter fixed for award on 17th November 1970. The representatives of the Union very much pressed that the Management of the Mills should produce accounts for the year 1969‑70, but the latter could not do so because their accounts were not yet audited. According to them the audited accounts could' not be available before 31st December 1970. This statement of account was required by the Union to calculate bonus on the basis of sugar production of the Mills. It would have been better if these accounts were produced, but in view of the audit difficulty of the. Mills, it could not be helped. The parties and their Advocates were heard on their respective contentions and demands. At this stage the Union demanded 4 months bonus which the Mill was not prepared to give them. They insist that since the Union backed out from their confessional offer made on 10th September' 1970, they were not prepared to offer them anything more. I think the parties cannot go out of the terms laid down by them in the draft agreement given to me on the first day viz., 21st Septem ber 1970. In this agreement it is clearly mentioned that "the representatives of the Union reduced its demands for 4 month bonus to 3 months bonus out of which they had already received 2 months bonus". It is further laid down in the said agreement that "the representatives of the Mills, however offered 2 months bonus in accordance with their own formula out of which they had already paid 2 months bonus. In addition they (Mills) offered to pay as a gesture of goodwill 7 days wages as ex gratin". It is thus clear that the net demand of the Union is 3 months bonus whereas the net offer of Mills is 2 months bonus plus 7 days wages as ex gratin which comes to 3 months bonus. The demand of the Union for 4 months bonus cannot be accepted in view of their reduced demand of 3 months bonus accepted by their in the Joint Conciliation meeting held on 10th, September 1970, and incorporated as such in the draft agreement present before me.

6. Having considered the arguments of both sides and after giving my anxious thought to their respective offers and demands, I give the following award:‑ (a) The Management of the Mills should pay 3 months bonus to each worker of the Union. They have already received 2 months bonus, hence the balance of one months' bonus should be given to them for the year 1969‑70. (b) This award shall be valid for the year 1969‑70, only. (c) The arbitration fees of Rs. 2,000 plus Rs. 400 payable to Government are paid to me by the Mills by a cheque, This entire amount will be borne by the Mills.