Supreme Court Grants Compensation to Colliery Workers After Long Legal Battle
The case of Rashtriya Colliery Mazdoor Sangh vs. Employers in Relation to Management of Kenduadih Colliery of M/S BCCL & Others is a significant Supreme Court ruling concerning the employment rights of contract workers in coal mines. Delivered on November 21, 2016, the judgment addresses the rights of 88 workmen who were engaged as ‘Tyndals’ at the Kenduadih Colliery and their claim for regularization.
Background of the Case
The dispute began when 88 workmen who worked as ‘Tyndals’ at the Kenduadih Colliery sought permanent employment. The workmen performed tasks such as moving engineering stores, handling drums of oil and grease, setting up and dismantling structures, and installing and withdrawing machinery. The case was referred to the Industrial Tribunal under Section 10(1)(d) of the Industrial Disputes Act, 1947 on May 14, 1993.
The Industrial Tribunal, in its award dated July 16, 1996, held that the work performed by the workmen was of a permanent and perennial nature, and similar workmen in other collieries had been regularized. It directed the management to form a panel and absorb the workmen based on seniority. However, back wages were denied.
The employer, BCCL, challenged the award before the Jharkhand High Court. A Single Judge modified the Tribunal’s order on May 18, 2004, ruling that instead of direct absorption, the workmen should be given preference for regular employment when vacancies arise, with relaxations in age and academic qualifications. This order attained finality.
Key Legal Issues Considered
- Were the workmen entitled to direct regularization or only preference in future employment?
- Did the High Court err in modifying the Tribunal’s order?
- Was compensation a viable alternative to reinstatement?
Arguments Presented
Appellant (Rashtriya Colliery Mazdoor Sangh) Arguments:
- The Industrial Tribunal had rightly ordered absorption since the work was of a permanent nature.
- The High Court’s modification of the order caused undue hardship to the workmen.
- Similar workers in other collieries had been regularized, leading to discriminatory treatment.
Respondent (BCCL) Arguments:
- The workmen were engaged through contractors, and direct absorption was not legally feasible.
- The High Court’s modification was appropriate as it provided an opportunity for future employment.
- Due to mine closures and surplus manpower, absorbing the workmen was impractical.
Supreme Court’s Observations
The Supreme Court analyzed the issue in light of a similar case, Workmen Rastriya Colliery Mazdoor Sangh vs. Bharat Coking Coal Ltd. (decided on October 3, 2016), where compensation was awarded instead of reinstatement. The Court stated:
“The predicament of the workmen is real. Two sets of workmen in the same colliery under the same company have received unequal treatment. The present group of workmen has faced attrition in numbers and has been left with no practical relief.”
The Court noted that the workmen had been engaged between 1987 and 1989, meaning that many were near retirement. Given the passage of time and the surplus manpower issue, reinstatement was not practical. Instead, the Court decided that compensation would be an appropriate remedy.
Final Judgment
The Supreme Court ruled:
- Each workman would receive Rs. 4 lakhs as full and final settlement.
- The amount was to be deposited before the Central Government Industrial Tribunal (No.2), Dhanbad.
- The Tribunal would verify the identity of the workmen before disbursing the amount.
- The case was disposed of, and all pending claims were settled.
Impact of the Judgment
The ruling has several significant implications:
- It reinforces that workmen engaged in perennial jobs should be considered for regularization.
- It provides relief to aging workers who may no longer be able to work in mining jobs.
- It balances the interests of both workmen and employers by providing financial compensation instead of reinstatement.
Conclusion
The Supreme Court’s decision in Rashtriya Colliery Mazdoor Sangh vs. Employers in Relation to Management of Kenduadih Colliery of M/S BCCL & Others ensures justice for long-displaced workmen while acknowledging the practical limitations of reinstatement. By awarding compensation, the Court provides a balanced resolution that considers the rights of workers while maintaining industrial stability.
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Download Judgment: Rashtriya Colliery M vs Employers in Relatio Supreme Court of India Judgment Dated 21-11-2016.pdf
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