NATIONAL IRON AND STEEL CO. LTD. versus THEIR WORKMEN

NATIONAL IRON AND STEEL CO. LTD. versus THEIR WORKMEN

The Tribunal has jurisdiction to vary the incentive bonus scheme introduced by the management, including the rates and targets, provided it examines relevant data and appoints appropriate assessors. Piece-rate workmen are entitled to higher rates for production above the norm, but care must be taken to avoid...

Source-derived case information.

Parties
Appellant: National Iron and Steel Co. Ltd.; Respondent: Their Workmen; Respondent: Respondent No. 1: NISCO Karmachari Sangha; Respondent: Respondent No. 2: Belur Iron & Steel Workers' Union
Jurisdiction
India
Judgment Date
21 August 1962
Procedural Posture
Civil Appeal / Appeal by Special Leave From the Award of the Third Industrial Tribunal, West Bengal
Outcome
Appeal allowed in part. Award quashed insofar as it relates to fixation of targets, rates of incentive bonus for both time-rate and piece-rate workmen, and extension of scheme to non-productive departments. Dispute remanded to Tribunal for fresh adjudication. Rest of the award affirmed.
Legal Topics
Incentive Bonus Schemes, Jurisdiction of Industrial Tribunal, Production Targets, Piece Rate Workmen, Extension of Bonus Scheme
Labour Law Industrial Law Incentive Bonus Schemes Jurisdiction of Industrial Tribunal Production Targets Piece Rate Workmen Extension of Bonus Scheme

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Parties

National Iron and Steel Co. Ltd.

Appellant

Their Workmen

Respondent

Respondent No. 1: NISCO Karmachari Sangha

Respondent

Respondent No. 2: Belur Iron & Steel Workers' Union

Respondent

Procedural Posture

Civil Appeal / Appeal by Special Leave From the Award of the Third Industrial Tribunal, West Bengal

Legal Issues

  1. 1 Whether the Industrial Tribunal has jurisdiction to refix production targets and rates of incentive bonus
  2. 2 Whether piece-rate workmen are entitled to incentive bonus
  3. 3 Whether the incentive bonus scheme should be extended to clerical and Watch and Ward Staff and workmen in non-productive departments

Ratio Decidendi

The Tribunal has jurisdiction to vary the incentive bonus scheme introduced by the management, including the rates and targets, provided it examines relevant data and appoints appropriate assessors. Piece-rate workmen are entitled to higher rates for production above the norm, but care must be taken to avoid disparity with time-rate workers. Extension of the scheme to non-productive departments requires inquiry into increased workload and should not result in an absurd bonus rate. The award was quashed in respect of fixation of targets and rates for incentive bonus and remanded to the Tribunal for fresh adjudication.

Court Disposition

Appeal allowed in part. Award quashed insofar as it relates to fixation of targets, rates of incentive bonus for both time-rate and piece-rate workmen, and extension of scheme to non-productive departments. Dispute remanded to Tribunal for fresh adjudication. Rest of the award affirmed.

Orders

  • Award quashed in respect of targets/rates/extension to non-productive departments
  • Dispute remanded to Tribunal