The stay of the single-judge Order has likely averted breach of industrial peace since the 2.82 lakh employees who were not paid salary for the month of October were threatening to go on a strike, which would have affected precious coal production.
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ON Monday, a division Bench of the Madhya Pradesh High Court stayed the single-judge Order that had quashed the National Coal Wage Agreement (NCWA) XI between Coal India Ltd and its non-executive employees inked on May 20, 2023, which provided for revision of wages to about 2.82 lakh non-executive employees across the nation.
The wages of non-executive employees of Coal India are settled periodically at the end of five years by negotiations under Section 18(1) of the Industrial Disputes Act of 1947.
The NCWA XI was settled on May 20, 2023, after intense negotiations before the Joint Bipartite Committee for the Coal Industry. The deal was approved by the Union Coal Ministry on June 22, 2023.
Executive employees challenged the NCWA XI before the Jabalpur Bench of the Madhya Pradesh High Court on the ground that the highest wages paid to non-executive employees under the deal are higher than the executive employees in violation of the conditions prescribed by the Union cabinet which was crystallised in the office memorandum issued on November 24, 2017, by the Department of Public Enterprises (DPE).
The single judge, entertaining the contention of the executive employees, held:
“Accordingly, the present petition is allowed. Impugned approval dated June 22, 2023 stands quashed. The matter is referred to the DPE to take decision while extending opportunity of hearing to all concerned including the petitioners and all trade unions, which were part of JBCCI-XI.
“If the DPE ultimately comes to a conclusion that there is no violation of the cabinet decision, the Ministry of Coal shall pass the consequential Order regarding approval of the finalisation of pay scales of the non-executives. Let the decision in terms of this Order be taken within 60 days from today.”
Aggrieved by the single-judge Order, Coal India approached the division Bench contending that “direct recruitment of executives as management trainees is done in E-2 grade. After successful completion of their one year of training period they are placed in F-3 Grade.
“Furthermore, non-executives who are graduates, are selected/promoted to E-2 grade whereas non-graduates are selected/promoted to B-1 grade. Selection/promotion from non-executive to executive takes place with pay’ protection. Therefore, the effective start of regular service of the executive cadre is from E-3 grade.”
Coal India further averred that non-executives do not have the pay scales which executives have. Further, the components of the pay of executives and non-executives are vastly different.
It was also contended that the judge had failed to consider that as scales of pay are not common for executives and non-executives of Coal India Limited and its subsidiaries, the total salary paid to non-executives and executives have to be considered by comparing both while considering compliance of guidelines issued by the DPE on November 24, 2017.
Senior advocate Mohan Katarki, assisted by advocate Ranjan Pandey, for Coal India, argued that the condition laid down in the office memorandum issued on November 24, 2017, issued by a sister department that scales of non-executive employees could not be higher than executive employees was directory in nature.
Katarki further argued that if the office memorandum is to be read as mandatory, it would have preemptive effect destroying the spirit of freedom of bargain between the management and employees. He submitted that the single judge struck down NCWA XI without hearing all the trade unions who are parties to the deal. He also questioned the standing of executive employees to question the wages of non-executive employees.
After the hearing, the division Bench consisting of Chief Justice Ravi Malimath and Justice Vishal Mishra observed that the stay of the single judge Order was imminent since the execution of the Order will lead to various other complications.
With regard to the salary which had been stopped by Coal India to non-executive employees, even salaries of executive employees have been also stopped to avoid unrest.
The division Bench took on record the statement of the counsel for Coal India that “the last salary paid was for the month of September and that they will continue to make the said payment for the executives and non-executives until further orders of this court, including for the month of October.”
The stay of the single-judge Order has likely averted breach of industrial peace since the 2.82 lakh employees who were not paid salary for the month of October were threatening to go on a strike, which would have affected precious coal production.
