Law:

Section:

Industrial Relations Ordinance (XXIII of 1969)--- ----S. 50---Employees' Cost of Living (Relief) Act (I of 1974), S. 3 [as amended by Employees' Cost of Living (Amendment) (Relief) Act (XIV of 1985)]--­Settlement, interpretation of---Cost of'-Living Allowance---Adjustment of--- Memorandum of Settlement was concluded between employer and Collective Bargaining Agent according to which certain increases in wages and other allowances and facilities were given to employees---During existence of agreement between parties, Collective Bargaining Agent demanded increase in wages of employees as were brought about under S.3 of Act 1974, which demand was resisted by employers---According to interpretation of agreement arrived at between the parties, inference of Collective Bargaining Agent was that increases given by Government under S.3 of the Act, 1974 were also made available to employees under settlement arrived at between parties, whereas interpretation of employer was that increases given under S. 3 of Act were to be adjusted in increases under settlement---Parties having failed to resolve their dispute among themselves as their views were totally different employer made application under S. 50 of Act 1969 for interpretation of various clauses of memorandum of settlement---Court taking into consideration Charter of Demands of Collective Bargaining Agent, Memorandum of Settlement and surrounding circumstances, concluded that increases under S. 3 of Act 1974 having been given to provide relief as a result of rise in Cost of Living, employers were right in contending that increases provided by Government under S. 3 of Act 1974 were, to be adjusted in increases under settlements earlier arrived at between employers and Collective Bargaining Agent. R.B. Industries Limited v. Employees' Union PLD 1983 SC 15 and Borroughs Well come Employees' Union v. M/s. Well come Pakistan Limited 1982 PLC 868 ref. Noor Muhammad for Applicants. Ali Amjad for Respondents. Date of hearing- 19th May, 1993. DECISION The applicants are one of the units of the State Corporation and the respondents are the Collective Bargaining Agent. A Memorandum of Settlement was concluded between them on the…

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