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HC pulls up Gujarat govt for 'appeasement' of L&T

Says govt put weight behind company against striking workers

BS Reporter Ahmedabad
Last Updated : Mar 25 2014 | 9:15 PM IST
Gujarat High Court has pulled up the state government for ‘appeasement’ of industrial group Larsen & Toubro Ltd against striking workers under the guise of maintaining ‘industrial peace’. The court also stayed the state government notification declaring the strike by the workers of L&T’s Hazira factory in Surat as illegal under the Industrial Disputes Act, 1947. The workers are demanding parity in wages with company’s unit in Powai, Maharashtra.

The decision comes as a huge huge relief to workers of L&T’s Hazira unit as now they would be protected against any action by the company. Around 980 permanent workers at the heavy engineering unit of L&T have been on strike since December 16, 2013, demanding higher wages at par with workers company’s unit in Powai. L&T’s Hazia unit makes components for nuclear reactors for the Nuclear Power Corporation of India Ltd, as well as heavy fabrications for core industries.

According to workers, L&T had offered a raise of Rs 6,750 per month to workers in Powai, while those in Hazira were offered only Rs 4,500 per month. The average salary at Powai was in the range of Rs 35,000-45,000 (per month) while in Hazira it was around Rs 24,000-25,000 per month.

“It is ordered that, during pendency of this petition, the further implementation, operation and effect of the impugned notification dated December 19, 2013 issued by the respondent No.1 (state government) shall remain stayed,” Justice Paresh Upadhyay stated in his order a few days back. He pulled up the state government for favouring the company by concealing material fact before the court.  

“Court has found that permitting the notification (December 19, 2013) to continue to hold the field will endorse the intention of the government of appeasement of the company with the mask of industrial peace. Further, refusal to exercise discretion by this court in such gross facts, to say the least, would in effect be refusal to discharge the obligation cast upon this court, for which I do not want to be blamed, least by my own conscience,” the court observed.

“The circumstances clearly demonstrate that the sole object was to be on the side of the management, at whatever cost, even at the cost of concealment of the material facts from this court,” the court observed in its order.  

Following this order the company cannot take any coercive action against the striking workers, said Sachin Vasavada, lawyer representing the workers’ union.

“In chargesheet filed against workers the company has been alleging that as per the government notification dated December 19, 2013, the strike was illegal and workers were liable for penal action. But now with the stay on the very notification issued by the state government’s labour department the management cannot take action against the workers,” he explained, adding that the strike by the workers was peaceful and has completed about 100 days.

According to case details, on the day workers' strike commenced (December 16, 2013) the state government came out with a notification overnight declaring the company's services as essential services for six months and the strike as illegal. After three days (December 19, 2013) government issued another notification referring the case to Industrial Tribunal in Surat for adjudication.

The L&T workers' union, Larsen and Toubro Kamdar Union, challenged the government's notifications in High Court alleging that the state government was trying to protect the company management against the strike. Workers demanded that the notification be set aside and they be given wage in tune with their counterpart in company's Powai unit.

The workers placed before the court the company's request made on March 21, 2013 to declare services of L&T's Hazira unit as essential services, but the government in August last year had rejected it. The court during the course of hearing found out that the government had not revealed this fact. The court came down heavily on the government for suppressing material facts, and criticised it for putting it weight behind the company against the workers.

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First Published: Mar 25 2014 | 8:59 PM IST

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