MUIR MILLS CO. LTD., KANPUR versus ITS WORKMEN.

MUIR MILLS CO. LTD., KANPUR versus ITS WORKMEN.

The government order under s. 3 of U.P. Industrial Disputes Act, 1947 did not require or justify the employer including production and incentive bonuses in calculation of basic wage rates, and the employer must continue to pay such bonuses as before.

Parties
Appellant: Muir Mills Co. Ltd., Kanpur; Respondents: Its Workmen
Jurisdiction
India
Judgment Date
07 April 1960
Procedural Posture
Civil Appeal / Appeal From Labour Appellate Tribunal's Decision
Outcome
Appeal dismissed
Legal Topics
Wage Structure, Production Bonus, Incentive Bonus, Interpretation of Government Wage Orders
Labour Law Industrial Disputes Wage Structure Production Bonus Incentive Bonus Interpretation of Government Wage Orders

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Parties

Muir Mills Co. Ltd., Kanpur

Appellant

Its Workmen

Respondents

Procedural Posture

Civil Appeal / Appeal From Labour Appellate Tribunal's Decision

Legal Issues

  1. 1 Whether the employer could include production and incentive bonuses in fixing the new basic wage as per government order under U.P. Industrial Disputes Act, 1947
  2. 2 Whether discontinuation of such bonuses was wrongful or unjustifiable

Ratio Decidendi

The government order under s. 3 of U.P. Industrial Disputes Act, 1947 did not require or justify the employer including production and incentive bonuses in calculation of basic wage rates, and the employer must continue to pay such bonuses as before.

Court Disposition

Appeal dismissed

Orders

  • Company is required to restore/continue payment of production and incentive bonuses to eligible workmen as before the government order.
  • No objections raised as to calculation directions given by the tribunal.