Law: Industrial Relations Ordinance, (XXIII of 1969)

Section: 31

Industrial Relations Ordinance (XXIII of 1969) -----S. 31-Arbl tratfon-Parties bound by terms laid down by them in draft agree ment given to arbitrator.   FACTS By joint written agreement signed by both the parties on 21st September 1970 I have been appointed as Sole Arbitrator to give award on the dispute between Fauji Sugar Mills, Tando Muhammad Khan (hereafter called Mills) and the Employees' Union of the said Mills (hereafter called Union) aver payment of bonus for the year 1969-70. The Union served a strike notice on the Management of the Mills on 29th August 1970 proposing to call a strike on 22nd September 1970 in case their demands relating to bonus were not conceded to by the Mills. The copy of the demands (Appendix "A") was also sent to the Production Director of the Mils. A number of joint and separate conciliation meetings were held between the parties to settle the dispute but to no effect. In the joint meeting held on 3rd September 1970 the Mills offered a formula for the purpose of calculating bonus for each worker but it was not accepted by the Union. The Union submitted another formula (Appendix "B") for the calculation of bonus but it was not acceptable by the Mills. 2. In the joint conciliation meeting held on 10th September 1970 the representatives of the Union reduced their demand from 4 months bonus to 3 months bonus out of which they had already received 2 months bonus leaving a balance of 1 months bonus to be paid to each worker in the Mills. The representatives of the Mills, however, offered 2 months bonus in accordance with their own formula out of which they had already paid 2 months bonus. In addition they offered to pay, as a gesture of good will, 7 days wages as ex gratia provided the workers completed the overhauling of the machines of the Mills and get it going by 1st of November 1970. This offer was kept open up to 13th September 1970. The Union, however, failed to respond to the above offer of the Mills, hence the Management of the Mills withdrew the same. 3. In another joint meeting held on 17th September 1970, the Management was persuaded to restore the original offer which they did. The Union,…