Law:

Section:

Industrial Relations Ordinance (XXIII of 1969)-- ----S. 50--Employees' Cost of Living (Relict) Act, 1973 (I of 1974), S. 3(6), proviso--Interpretation--Agreement of Settlement--Set-off against increase in wages--Proviso of S. 3(6), Employees' Cost of Living (Relief) Act, 1973 clearly shows that increase in wages could be set-off against amount payable under an agreement as relief under agreement had been awarded due to rise in cost of living--Settlement reached between parties--Question arising whether said Settlement entitled the firm to benefits of set-off as stipulated in Employees' Cost of Living (Relief) Act, 1973--Terms of agreement and nature of charter of demands clearly showed that increase in basic salary or conveyance allowance under agreement was not due to rise in cost of living but was merely for consideration to continue industrial peace as spelt out in settlement itself-­Employer, as such was not entitled to claim set-off under para. (a) of proviso and was liable to pay increase in wages by way of cost of living allowance in terms of subsection (6) of section 3 of Act I of 1974 Ali Ahmad for Applicants. Nemo for Respondents. Date of hearing: 1st February, 1989. DECISION The applicant who is a registered trade union and certified Collective Bargaining Agent for the workers of the establishment of the respondents has filed this application under section 50 of Industrial Relations Ordinance, 1969, for interpretation of the material clauses of the settlement, dated 25-3-1984, arrived at between the parties and to consider whether the said settlement entitled the respondents to the benefits of set-off as stipulated in the Employees' Cost of Living (Relief) (Amendment) Act, 1985, hereinafter referred to amending Act. 2. I have heard Mr. Ali Ahmed, the learned Advocate for the applicants. Nonc appeared for the respondents though several dates were given to enable the learned counsel for the respondents to address the Tribunal. An application for adjournment moved on behalf of the counsel for the respondents has been rejected. 3. For the purpose of deciding the application, it is pertinent to refer to certain relevant portions of the settlement, arrived…

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