Kerala High Court Suggested Federal Bank & Officers’ Association to Consider Mediation to Resolve Dispute: ‘Keep Customers in Mind’

Kerala High Court Suggested Federal Bank & Officers’ Association to Consider Mediation to Resolve Dispute: ‘Keep Customers in Mind’

The Kerala High Court while adjudicating a plea moved by the Federal Bank Officers’ Association by which it had challenged the conciliation notice issued by the Regional Labour Commissioner on an alleged notice of strike by the Association against Federal Bank, by its single judge Justice C S Dias suggested the Federal Bank and the Federal Bank Officers’ Association to consider mediation to resolve the dispute between the parties, whilst keeping in mind the larger public interest.

The Court while suggesting to both the parties to keep in mind the customers’ plight, asked:

“I am saying this in the larger public interest. What is the customer’s due? You can strike, you can have collective bargaining whatever you want, that is not the concern. What about the customers? Tomorrow banks will come to a standstill, what will the people do?”

Further, the judge directed the counsel for Federal Bank to pay attention and listen to the demands of the Officers’ Association

“They have certain demands; you sit across the table and decide. If you are both ready, I will refer you to a retired Supreme Court judge or retired High Court judge, you sit across the table and have a mediation,” stated the judge.

Besides these matters, the Court directed both parties to suggest the name of a retired Supreme Court judge or retired High Court judge, if the parties are open to the idea of mediation, mediate the issue.

Appearing for the Association, Senior Advocate P Chidambaram contended that the notice of strike was only issued to Federal Bank and not to the Labour Commissioner.

“I issued a notice to my employer, I did not issue a copy to the Labour Commissioner, nor did I mark a copy to the Labour Commissioner,” he stated.

The Counsel highlighted that the members of the Association are not workmen under Section 2(s) of the Industrial Dispute Act, 1947 and hence their dispute would not qualify as an industrial dispute.

Therefore, it was argued that the Petitioner being an Association representing employees in the officer category cannot raise an industrial dispute.

Moreover, the Counsel vehemently asserted that the Terms and Conditions of service of employees in the Officers’ category is governed by the Federal Bank Ltd (Officers’ Service) Rules and under the said Rules the right of the Officers’ to go on strike in pursuance of their demands is recognized.

He further clarified that the dispute not being an industrial dispute, the conciliation officer had no jurisdiction to issue the impugned notice.

Sr. Adv. Chidambaram argued, “Federal Bank says pursuant to Labour Commissioner issuing conciliation notice, there is a conciliation, therefore you cannot go on strike. But when the conciliation officer has no jurisdiction in respect of the alleged industrial dispute, the question of 22(1)(a) does not arise. Therefore, I strike, there is no valid conciliation.”

The Counsel submitted that the interference by the conciliation officer must be stayed as he has no jurisdiction to interfere in this matter. There can be no valid conciliation in respect of an employer.

“Let that be stayed and whatever suggestion your Lordship makes we shall certainly abide by it,” urged the counsel for the Petitioner.

Lastly, the Counsel argued that the Labour Commissioner had not explained to the Court why it has the jurisdiction to issue the conciliation notice.

“It is not for the bank to say R1 has jurisdiction, it is for the R1 (Regional Labour Commissioner) to come and say he has the jurisdiction,” he concluded.

Subsequently, the Court issued notice to the Regional Labour Commissioner and posted to matter for further consideration on 20th June.