The central government has referred the dispute over finalizing a long-term wage settlement for workers at Bharat Petroleum Corporation Limited’s (BPCL) Mumbai and Kochi refineries to the Industrial Tribunal-cum-Labor Court at Mumbai and Ernakulam respectively for adjudication. .
The central government has asked industrial tribunals to decide whether the action of BPCL management in offering fitment benefit and DA merger has been taken at the rate of 12 per cent and 95 per cent as compared to 15 per cent and 100 per cent respectively, whose The demand was made by Cochin. According to separate orders issued by the Union Labor Ministry on July 27 and August 16, the Refinery Workers’ Association and the Petroleum Workers’ Union are “just, fair and just” in line with the benefits extended to other oil sector Central Public Sector Undertakings.
Industrial tribunals have also been asked to decide whether the action of the BPCL management insisting that the unions have signed the Memorandum of Understanding on Long Term Wage Agreement “under sub-section ‘F’ of Clause I” With the conditions attached hereunder which undermine the role and existence of associations”, is “fair, just and proper”. If not, what relief are they entitled to, the reference to the labor ministry said.
The 10-year wage settlement for refinery workers was due from August 1, 2018, but has been delayed.
The employees are challenging two contentious issues in the memorandum of agreement prepared by the company on wage settlement.
Clause 1(f) of the Memorandum of Understanding (MoA) on Wages and Other Matters states: “The Management reserves the right to review and revise the MoA once in every three years, the first such review being 01.06.2022 and/or in accordance with the terms set out in the share purchase agreement (or any other document according to which the privatization of the corporation is entered into) as applicable and wherever necessary, amending the terms and conditions agreed to in this MoA / modification / change based on profitability, ability to pay, affordability, sustainability, deployment of least cost methods, compensation structure determined by the market and any other factors that may arise from management applying this clause shall give 90 days’ notice to the Union(s) that has previously signed this Memorandum of Understanding.
The labor union claims that this clause provides “unilateral right to the management” to make changes to the wage agreement with effect from June 1, 2022 and was therefore not acceptable to them.
The second issue pertains to neutralization of dearness allowance, fitment and pay scale.
The tribunal has been asked to award the award within three months.
The central government’s ‘Maharatna’ wants to complete the privatization of the oil company by March next year.
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