MONTHLY-RATED WORKMEN AT THE WADALAFACTORY OF THE INDIAN HU vs INDIAN HUME PIPE COMPANY LTD., BOMBAY

The Supreme Court examined the validity of a notice of change issued under Section 9A of the Industrial Disputes Act, 1947, regarding the abolition of the slab system of Dearness Allowance (D.A.) for factory staff. The Court held that the burden of proof regarding the necessity of change lies with the employer, and that tribunals should be cautious in revising wage structures to the detriment of workers. The Court upheld the Industrial Tribunal's decision that the employer was justified in substituting the slab system with a textile scale of D.A. affording 115% neutralization, despite potential losses for the workers.