Legal Case Summary

Case Details
Case ID df2c9a36-1865-42ef-9028-4e9cc3eb3b92
Body View case body.
Case Number KAR-86 of 1986
Decision Date Feb 06, 1989
Hearing Date Feb 01, 1989
Decision The Tribunal concluded that the respondents are not entitled to claim set-off under the provisions of the Employees' Cost of Living (Relief) Act, 1973, as the increase in wages was not due to a rise in the cost of living but was rather an agreement to maintain industrial peace. The increase in basic salary and conveyance allowance were agreed upon for reasons other than cost of living adjustments. Therefore, the respondents are liable to pay the increase in wages by way of Cost of Living Allowance as per the relevant subsection of the Act.
Summary This case involves the interpretation of a settlement agreement between the General Products Industries Workers Union and Messrs General Products Industries Ltd. concerning wage increases and the applicability of the Employees' Cost of Living (Relief) Act, 1973. The Tribunal determined that the wage increase was not directly linked to the cost of living, thus denying the employer's claim for a set-off against the relief due under the Act. The decision emphasizes the legal framework governing industrial relations and the obligations of employers to honor agreements made with trade unions. This ruling is significant for understanding the rights of workers under labor law and the interpretation of settlement agreements in relation to statutory provisions.
Court Labour Appellate Tribunal, Sindh
Entities Involved Not available
Judges AHMED ALI U. QURESHI
Lawyers Ali Ahmad, Nemo
Petitioners GENERAL PRODUCTS INDUSTRIES WORKERS UNION, KARACHI
Respondents Messrs GENERAL PRODUCTS INDUSTRIES LTD.
Citations 1989 SLD 2254, 1989 PLC 554
Other Citations Not available
Laws Involved Industrial Relations Ordinance, 1969, Employees' Cost of Living (Relief) Act, 1973
Sections 50, 3(6)