In a release issued here recently, the MECL claimed that the HC verdict has provided considerable relief to the PSU, which is going through a serious financial crisis.

Notwithstanding a turnaround achieved by MECL during the just-concluded financial year, the company is still being plagued by a surplus manpower of nearly 800 personnel, the release said. The management is finding it difficult to make payments of salaries and other allowances, as the PSU has been lacking work for a period of time now. If the CGIT award is implemented, the burden on the company will be doubled, the releaseadded.

The issue dates back to an earlier part of this decade when the MECL Employees Union moved the Regional Labour Commissioner (Central) for regularisation of 2,145 contingent workmen of the company. This included jobs for 64 legal heirs on compassionate grounds.

With the conciliation process failing to yield a amiable solution, the matter was then put up before the Union Ministry of Labour which in turn referred the same to the Jabalpur bench of the CGIT on January 1, 1993.

After a prolonged hearing, the CGIT delivered its award on March 24 last year, directing the MECL to regularise services of the 2,145 contingent workmen in subject.

An aggrieved MECL moved the MP High Court bench at Jabalpur against this. The Employees Union filed a writ petition pleading that the CGIT award be made effective with retrospective effect from January 7, 1993, instead of the day when the award was pronounced.

The matter was heard at length by the HC on November 24, 1998, and a final verdict was pronounced onFebruary 26 in which the CGIT award was quashed and set aside and the Employees Union petition dismissed, the release claimed.