In an interesting turn of events, the Bombay High Court has agreed to a wage increase for workers at Dangkwang Precision India Pvt. Ltd. This decision comes after a long legal fight between the company and LokKalyan Mazdoor Union. Let's break it down.
Dangkwang Precision India Pvt. Ltd., a company in Pune, faced requests from LokKalyan Mazdoor Union for better pay. The union, representing 18 workers, made these requests on December 30, 2014. When the company didn't respond, LokKalyan Mazdoor Union took the issue to the Industrial Tribunal in Pune. This led to a pay disagreement that has been ongoing since 2015.
On March 29, 2018, the Industrial Tribunal decided in favor of LokKalyan Mazdoor Union, allowing a pay increase of ₹5,800. Dangkwang Precision India Pvt. Ltd. disagreed with this decision, saying that the tribunal didn't properly consider their ability to pay. Mr. A.D. Patwardhan, speaking for the company, mentioned several Supreme Court decisions to support their case.
"The Tribunal was required to look into the company's ability to pay," argued Mr. Patwardhan.
Judge Amit Borkar looked at the case, focusing on whether the tribunal had fairly checked the company's financial situation. The court noted that the tribunal had indeed looked at financial records from 2010 to 2017, showing a balanced approach.
A major point of disagreement was how depreciation was handled. Dangkwang Precision India Pvt. Ltd. argued that the tribunal ignored important financial details like depreciation. However, the court found that the company did not provide independent proof to support its claims about depreciation and foreign exchange losses.
"Depreciation cannot be used as a way to make losses look bigger," the court noted.
The court agreed with the tribunal's decision, allowing the pay increase but with changes for temporary payments already made. This means the actual raise would be ₹2,800 more per month.
The court's decision means that the workers will get a fair pay increase while making sure the company's financial situation is considered. The court dismissed the company's petition, and Dangkwang Precision India Pvt. Ltd. must follow the tribunal's decision, marking a significant win for LokKalyan Mazdoor Union.
