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Bata India Limited vs Workmen of Bata India Limited

Civil Appeal · 2022 INSC 357Decided 29 Mar 2022
Civil Appeal No. 6794 of 2010

Background

Under settlements from 1998, Bata India's workmen had agreed to specific daily/weekly shoe-production targets. The company alleged that after February 2001 the workmen deliberately adopted a "go slow" tactic, producing less than half the agreed output, so the company began paying reduced (pro-rata) wages. The workmen refused this and went on a stay-in-strike, prompting the company to declare a lockout, which was eventually lifted after a government order directed the workmen back to duty. The Karnataka High Court had partly ruled that "go slow" amounted to intentional refusal to work justifying pro-rata wages, but also held the company should have given workers a fair hearing before making deductions, and ordered payment of the deducted wages.

Decision Breakdown

The Supreme Court largely agreed with the High Court's reasoning: a "go slow" tactic is akin to intentional refusal to work, and an employer may reduce wages proportionately where production genuinely falls, but only after giving the workmen a fair opportunity to respond to the specific calculations relied on (here, notices posted on notice boards, which the workers were never allowed to contest). Since the High Court's order for full payment had continued under a stay for years, the Court vacated the stay and directed the company to pay the deducted/reduced wages within one month, while preserving the company's liberty to follow the proper procedure to establish "go slow" going forward. The appeal was disposed of without any order as to costs.

Lesson Learnt

An employer can reduce wages for demonstrably reduced output during a "go slow," but must first give workers a genuine opportunity to contest the specific facts and calculations before docking pay: a notice board announcement is not a substitute for a fair hearing.

Official source (sci.gov.in)View Judgment (PDF)

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