Aviary Metal Limited (AML) is a Maharatna PSU under the Ministry of Defence, Government of India, which gives progressed items and framework to military and government for manufacturing units. AML is one of the top Mahar
CS Professional · Labour Laws and Practice · PYQS · June 2024
Aviary Metal Limited (AML) is a Maharatna PSU under the Ministry of Defence, Government of India, which gives progressed items and framework to military and government for manufacturing units. AML is one of the top Maharatna PSUs. The company has grown significantly in turnover and is consistently giving sufficient profit. AML is focusing on solid development of 12-15% during 2022-23. Radar and Missile Systems, Communication, Network-Centric Systems and other areas will continue to drive the company's growth in the years ahead. In spite of being one of the top industries, total 1000 workers are employed and the working condition of most of the contractual workers are not good. Therefore, Aviary Metal Limited (AML) workers union decided to amalgamate to have effective collective bargaining as there were two registered trade unions and they all were demanding 7th pay Commission and better working conditions in AML. The contractual workers comprising 60 percent of the AML strength, which are continuously working for the last 5 years and still they are on contract employment. Now after 5 years of service, the licence of the contractor has expired to engage the contract labor or the contractor has not applied for the renewal of the licence but the workmen were still employed with the company and not given the status of regular employees. There were frequent strikes with respect to it. Now to have effective collective bargaining with the management, those two registered trade unions have amalgamated to become a strong trade union with the name of Hind Mazdoor Sangh. Hind Mazdoor Sangh were in negotiations with the management for implementation of 7th Pay Commission and to notify permanent positions for several months. Despite several round of discussions, no agreement has been reached. The industrial peace got disturbed which led to frequent strikes affecting the production and target delivery of products causing financial loss to the company. The union after giving notice to management decided to go on hunger strike for 10 days. The management of AML claims that this strike is illegal under the Industrial Disputes Act, 1947, as it has not followed the prescribed procedure for calling a strike. The management has decided to deduct 10 days wages of workers who resorted to hunger strike and initiated disciplinary proceedings against them as they turned violent, they damaged the property of the company as well. In the meanwhile, due to some dispute with the officers of AML, one worker named Rakesh has been suspended who was active member of the Union. In response to the above action, Hind Mazdoor Sangh filed the case before the Labour Court against the AML. Whereas Court decided the case in favour of Management along with compensation of ₹ 2 Lakh for the loss suffered by management. Based on the above facts, answer the following questions, with relevant provisions: Is it necessary for the principal employer to register the establishment for engaging contract employees? What are the effects of non-registration?
Answer & Explanation:
Necessity of Registration: Section 7 of the Contract Labour (Regulation and Abolition) Act, 1970 makes it mandatory for every principal employer of an establishment to which this Act applies to make an application to the registering office in the prescribed manner for registration of the establishment. If the application for registration is complete in all respects, the registering officer shall register the establishment and issue to the principal employer of the establishment a certificate of registration containing such particulars as may be prescribed. So, the Act mandates the principal employer to be registered. As per Section 7, the principal employer is required to obtain certificate of registration. [Food Corporation of India Workers Union vs. Food Corporation of India & Ors. 192 LLJ (Guj.)]. Effects of Non-Registration: According to Section 9 of the Contract Labour (Regulation and Abolition) Act, 1970, no principal employer of an establishment, to which this Act applies, shall employ contract labour in the establishment after the expiry of the period under Section 7 in the case of the establishment which is required to be registered under Section 7. The principal employer shall also not employ contract labour in the establishment after the revocation of registration of such establishment under Section 8 of the Act.
Topics: Contract Labour (Regulation & Abolition) Act, 1970
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