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LATEST NEWS UPDATES | SC asks courts to view labour practices in changed economic context by Sanjay K Singh

SC asks courts to view labour practices in changed economic context by Sanjay K Singh

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published Published on Oct 13, 2011   modified Modified on Oct 13, 2011

The Supreme Court has asked the judiciary and statutory bodies to take into account objectives of industrial peace and economic justice while deciding on disputes related to unfair labour practices. 

The issue of unfair labour practice has to be decided in the changed circumstances of economic liberalisation and economic reforms, the court said, setting aside the Bombay High Court order against Siemens. 

"Today every state, which has to don the mantle of a welfare state, must keep in mind that twin objectives of industrial peace and economic justice and the courts and statutory bodies while deciding what unfair labour practice is must also be cognizant of the aforesaid twin objects," said a bench comprising Justice DK Jain and Justice AK Ganguly in its judgement on Wednesday. 

The concept of unfair labour practice is also required to be understood in the changed context, the bench said. Any unfair labour practice within its very concept must have some elements of arbitrariness and unreasonableness and if unfair labour practice is established, the same would bring about a violation of guarantee under Article 14 of the Constitution. Therefore, it is axiomatic that anyone who alleges unfair labour practice must plead it specifically and such allegations must be established properly before any forum can decide on the same, the bench said. 

The workers union in Siemens had challenged the notification issued by the company, reorganising its working pattern by introducing the scheme of promotions for certain categories of workers. 

The apex court verdict said the high court glossed over the changes in economic and industrial scenario and the new challenges which the appellant-company has to face in reorganizing work to keep pace with the changed work culture in the context of scientific and technological development. It, however, asked the company not to retrench workers in the name of the introduction of such scheme. 

The company had issued a notification inviting applications from workmen for a selection process to undergo two years as 'Officer Trainee'. The notification stated that after the successful completion of such two years, the trainees were to be designated as 'Junior Executive Officers'. 

The trade union had alleged that though the designation of 'Junior Executive Officer' was that of an officer belonging to the management cadre, it was merely a nomenclature, with negligible content of managerial work. Such Junior Executive Officers were to do the same work that had always been done by workmen. This, the union alleged, was a unfair trade practice. 

The Economic Times, 13 October, 2011, http://economictimes.indiatimes.com/news/politics/nation/sc-asks-courts-to-view-labour-practices-in-changed-economic-context/articleshow/10333805.cms


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