TN Labour dept appropriate authority to handle CMRL employees'

The Madras High Court has clarified that the Tamil Nadu government's Labour department is the "appropriate authority" to handle industrial disputes between the Chennai Metro Rail Limited and its employees.

"This court is inclined to declare that the Tamil Nadu Labour department and its authorities are the appropriate government within the meaning of the Industrial Disputes Act," Justice S M Subramaniam said on Friday while passing an order on the plea moved by the CMRL Employees Union seeking the clarification.

According to the petitioner, it is the only registered union of CMRL in which 247 of 248 permanent employees are members.

The issue cropped up when CMRL started outsourcing works done by its permanent employees to private human resource companies at an amount much higher than the salary paid to the employees.

To sort out the grievance, the union made a representation to the management of CMRL. Subsequently, seven office-bearers of the union were terminated from service by the management.

When the union raised a dispute against the termination under the Industrial Dispute Act with the Labour department of the Tamil Nadu government, it refused to entertain the dispute and orally directed the union to approach the Centre's Labour department on the ground that only the central government is the appropriate authority.

However, when the union approached the Centre's labour department on April 22 it issued a letter informing that only the state government concerned is the appropriate authority to entertain industrial disputes pertaining to CMRL.

Challenging it, the union has moved the present petition.

Disposing off the plea, the judge said the court has no hesitation in coming to the conclusion that the state labour department is the "appropriate government" within the definition of the Act and accordingly, the competent authorities of the department, have jurisdiction to entertain the conciliation proceedings and all other proceedings under the provisions of the Act.