A.

Industry- Conceptual Analysis

The industrial disputes act extends to the whole of India. It came into the
operation on 1st day of April 1947. The object of the act laid down in the
preamble of act is to make provision for the investigation and settlement of
industrial dispute. The object of all the legislation is to ensure fair wages and to
prevent disputes so that production might not adversely affect.

The object of industrial disputes acts 1947

a) The promotion of measures for securing good relations between the
employers and employees.
b) An investigation and settlement of industrial disputes between
employers and employees.
c) The prevention of illegal strike or lockout.
d) Relief to workmen in the matter of lay-off, retrenchment, and closure of
an undertaking.
e) Collective bargaining.
A number of authorities for the settlement of industrial disputes and their
power, function, and duties are as follows:
a) Work committee
b) Conciliation officer
c) Board of conciliation
d) Court of enquiry
e) Labour court
f) Tribunal
g) National tribunal
Definition and meaning
The term industrial disputes have been defined in section 2(k) of the industrial
disputes act 1947 according to it:

Industrial dispute means any dispute or difference between employer and

employer or between employer and workmen or between workmen and
workmen which is connected with the employment or non-employment or with
the terms of the employment or with the condition of labour of any person.
Above definition shows following essential elements:
a) Dispute and deference between employer and employer or between
employer and workmen or between workmen and workmen.
b) Such dispute is connected with the employment or non-employment or
with the terms of the employment or with the condition of labour of any
person.
c) Such dispute or difference could be related to any workmen or any other
person in which they keep the interest collectively.

Case law:
Dima Kuchi Tea Estate's workman v/s Manager of Dimakuch Tea Estate AIR
1959
It was held that the industrial disputes need not to be related to any workmen.
The term any other person used in the definition shows that it could be any
person whose interest is vested in term of employment and condition of labour.

Case law: Tate Chemical v/s workmen 1978 SC

It has been said that industrial disputes do not requires that it must be limited
to the union representative collectively of majority of employer and workmen
but union could be which shall not be represented because the definition of
industrial dispute provides that it is sufficient to be dispute between employee
and workmen.

Case law: Sarva Shramik Sangh v/s Indian Hume Pipe company ltd. 1993
It is held by the court that industrial dispute is required to related to the
condition of employment. Such condition may be related to the salary,
allowance, bonus, illegal termination of service and lock-out etc.

Industry
The word industry has an important place in the industrial dispute act 1947. It
is the industry in which industrial dispute arises. The industrial dispute act
cannot be thought without the industry.

Definition and meaning:

Section 2(j) of the industrial dispute act 1947 deals with the definition of
industry according to this definition

"Industry means any business, trade, undertaking, manufacture or calling

of employers and includes any calling, service, employment, handicraft or
industrial occupation or avocation of workmen."
The definition of industry can be divided into two parts:
1. Firstly, any business, trade, undertaking, or calling of the employers and
2. Secondly it includes any calling, service, employment, handicraft or
industrial occupation or avocation of workmen.
Case law:
Management of Safdarjung Hospital v/s Kuldip sing AIR 1970 SC
The SC held that it is not proper to divide the definition of industry into two parts.
It is shown from reading the definitions a whole that an industry is a collective
organization in which both employer and workmen are included. It existence is
not merely by employer only nor by workmen only.

Case law-
Workmen of I.S. Institution v/s I.S Institution AIR 1976
It was said that industry is conducted by a collective effort of both employer
and workmen. Industry only comes in existence when there is cooperation
between employer and workmen and which results in any business, trade,
undertaking, manufacture or calling of employers and any calling, service,
employment, handicraft, or industrial occupation or a vocation of workmen.

Principles of determining nature of industry

Whether any institution is industry or not the principle regarding this
determination has been propounded from time to time by the courts in their
following judgment.:

Case law:

State of Bombay v/s Bombay Hospital Mazdoor Sabha AIR

1960 SC
SC judges P.B Gajendra and Gadkar had propounded following principal:
Any activity which in a well-organized way or regular form is conducted for the
production of goods or its distribution of goods or to support the workmen for
the service of anywhere community or its any particulars class is an
undertaking. In simple way term industry can be following:
I. Such activity which has the support of both employer and workman.
II. Its object is always to satisfy human physical requirements.
III. It is organized in the same way as a business.
IV. It is not only for personal interest or satisfaction.
Thus, the method by which any work is performed, together with conditions of
mutual cooperation between employee and workmen and objects of physical
service.
Case law:
Bangalore Water supply v/s A. Rajappa AIR 1978 SC
A seven-judge bench of SC considered the scope of industry and laid down the
following lists which are called principle of the triple test:
1. System activity
2. Cooperation of the workman and employer (capital and labour)
3. Objection of production and distribution
The principle concludes that if any trade, club, educational institution,
cooperative, committee, research institution, hospital, municipality, charity
organization includes all the above elements then it will be called industry.

Is Municipal Corporation an industry?

Municipality and Municipal Corporation are industry under the Bangalore water
supply case because the municipality and municipal corporation works related
to the fire, electricity, water-supply, health which are service as well as
undertaking therefore is an industry.
Case law:
Nagar Smithi Faridabad v/s K.L. Gosai 1970
In this case MC and municipality considered as industry.

Is Hospital an industry?
The question whether hospital is an industry or not has come for determination
by the supreme court on a number of occasions and the uncertainty has been
allowed to persist because of conflicting judicial decisions right from hospital
mazdoor sabha case to the Bangalore water supply.
Now the situation is those hospitals which are maintained by the state as their
sovereign function and their only object is to free service to patients is not an
industry.
In the contrary the hospital whether public or private charitable or commercial
shall be industry if they fulfill the condition propounded in the Bangalore water
supply and in Bombay hospital mazdoor Sabha case.

Is public service commission an industry?

The PSC is not an industry because good and service are not produced and
distributed in it. The main function is to select the capable candidate for the
different post and to recommended to the govt.
Case law:
Nazia bibi v/s public service commission 1983
It was held by the court that PSC is not an industry because its main function is
to select the candidate for the different post and no goods or services are
produced and distributed there.

Is university/educational institution an industry?

Regarding the educational institution the present postion is that the
educational institutions including the university in a limited sense. Now those
employs of the educational institution who covered by the definition of
workman under section 2(s) of the industrial dispute act 1947 will be treated as
workmen of any industry.
Case law:
Delhi university v/s ram Nath 1963 SC
It was held that university was not considered as industry because its main
function is to provide the education which is not a business, trade or
occupation.
Case law:
Somerchan v/s labour court 1992
In labour court Ambala it is decided that university is an industry and a
carpenter employed in a university is a workman and the labour courts has a
jurisdiction to decide the dispute related to the termination of such service.

Case law-
Suresh Chandara Mathe v/s jiwaji university Gwalior and others 1994 MP
It was held that university is an industry and th clerk of a university is a workman.

Is club an industry?
Club or self-service institution or non-proprietary members will be an industry
provided they fulfill the triple test laid down in the water supply case.

Case law: Cricket club of India v/s Bombay labour union 1969
It was held that the voluntary organization and the non-proprietary clubs was
also an industry if they fulfill the triple test laid down in the water supply case.
 D] WORKMAN.

Workman is the base of the industry. Industry can nither be established or

maintained without the workman. It is the workman who provides labour to the
industry. It is the reason that workman has been given special place in the
industrial dispute act. The definition of workman is important because the act
aims at investigation and settlement of industrial dispute which implies a
difference between an employer and workmen. So it is very necessary to
decide who is a workman or employees.

Definition
Section 2(S) of the industrial dispute act 1947, workman means any person
employed in any industry to do any manual , unskilled, skilled, technical,
operational, clerical, supervisory work for heir or reward whether the term of
the employment be expressed or implied and for the purpose of any proceeding
under this act in relation to an industrial dispute including any such person who
has been dismissed, discharged or retrenched in connection with or as
consequences of that dispute or whose dismissal, discharge or retrenchment
has led to the dispute.
Above definition of workman shows following symptoms:
I. A workman must be employed in an industry
II. Employment for heir or reward
III. There shall be some consideration
IV. Nature of work performed by such person may be manual, skilled,
unskilled, technical, operational, clerical or supervisory.
V. Industry in which workman is employed shall be an industry as definition
in section 2(J) of IDA 1947
VI. The section 2(a) of the IDA 1947 clearly mention that the terms of the
employment may be expressed/ implied
VII. In relation to an industrial dispute a workman includes any such person
who has been dismissed, discharged or retrenchment or as
 consequences of the dispute has been dismissed, discharged or
retrenched.

Person not includes in workman

a. Who is subject to Air Forces Act, Army Act, and Navy Act.
b. Person employed in police services or jail services.
c. Person employed in managerial or administrative capacity.
d. Person employed in a supervisory capacity draws wages exceeding 1600
rupees per mensem.
The word workmen have been defined by several judicial decisions
Case law:
Bihar State Road transport cooperation v/s state of Bihar AIR 1970 SC
It was held that such person has been considered as workman who:
a) Was employed as head clerk in the office of regional manager.
b) His term of employment was being regulated by the orders of state
roadways department.
c) His nature of work was not managerial or administrative.
Case law:
H.C Chauhan v/s life insurance corporation of India 1982
It was held that such development officers were held to be workman who:
a. Perform daily, manual, mechanical or clerical work
b. Do not perform managerial or administrative work
c. Cannot appoint or dismiss any other
d. Cannot also distribute the work
e. Obtained a salary of approx. Rs 500 or more.

Case law:
Verma shall company v/s Verma shall management staff association 1970
SC
This case has an important place in the definition of workman. The supreme
court propounded 2 principles for the workman. It was stated by the SC that:
I. Nature of work
II. No managerial work.
 Strike and Lock out: Concepts, legality and
justification.
Introduction
Strike is a very powerful weapon used by trade unions and other labour associations
to get their demands accepted. It generally involves quitting of work by a group of
workers for the purpose of bringing the pressure on their employer so that their
demands get accepted. When workers collectively cease to work in a particular
industry, they are said to be on strike. A lock-out declared in consequence of an
illegal strike or a strike declared in consequence of an illegal lock-out shall not be
deemed to be illegal. Section 24 (3) of Industrial Disputes Act 1947.
Strike and lockout are dynamic, complex and deeply intertwined with labour laws
and regulations. Their outcomes can significantly impact the lives of workers, the
health of businesses and the stability of industries.
Therefore, it is essential for all parties involved—employees, employers, labour
authorities and the legal system—to navigate these labour actions with care,
understanding and a commitment to fairness.
Ultimately, whether it is the call for improved working conditions through a strike or
the assertion of management’s position via a lockout, these actions serve as
mechanisms to address workplace issues and advance the interests of those
involved.
In the ever-evolving landscape of labour relations, strikes and lockouts remain
pivotal instruments for shaping the future of work.

Meaning & definition

According to section 2(q) of Industrial Disputes Act 1947,
"a strike is "a cessation of work by a body of persons employed in an industry
acting in combination; or a concerted refusal of any number of persons who
are or have been so employed to continue to work or to accept employment; or
a refusal under a common understanding of any number of such persons to
continue to work or to accept employment".

This definition throws light on a few aspects of a strike

In a strike, a group of workers agree to stop working to protest against
something they think is unfair where they work. Labors withhold their services
in order to pressurize their employment or government to meet their demands.
Demands made by strikers can range from asking for higher wages or better
benefits to seeking changes in the workplace environment. Strikes sometimes
occur so that employers listen more carefully to the workers and address their
problems.

Causes of strikes:
Strikes can occur because of the following reasons:
Dissatisfaction with company policy.
Salary and incentive problems.
Increment not up to the mark.
Wrongful discharge or dismissal of workmen.
Withdrawal of any concession or privilege.
Hours of work and rest intervals.
Leaves with wages and holidays.
Bonus, profit sharing, Provident fund and gratuity.
Kind of strike.

Procedure of Strikes
In India Proposal to go on strike should be intimated to management by way of
prior notice that is 14 days stipulated time period should be given to the
management to respond or react so as to avoid strike. During this 14 days' time
no workmen should go on strike.
Only after expiry of the that 14 days and management fails to respond or
resolve issues within those 14 days, workers can go on strike on fixed date by
giving notice of strike. Such strike should be done before the expiry of those six
weeks only.

According to Sec. 22(1) No person employed in a public utility

service shall go on strike in breach of contract:
a. without giving to the employer notice of strike, as hereinafter provided, within
six weeks before striking; or
b. within fourteen days of giving such notice; or

c. before the expiry of the date of strike specified in any such notice as
aforesaid;
d. during the pendency of any conciliation proceedings before a conciliation
officer and seven days after the conclusion of such proceedings.

Result of illegal strike Illegal strike has following results

Penalty for illegal strikes and lock-outs Any workman, who commences,
continues or otherwise acts in furtherance of, a strike which is illegal under this
Act shall be punishable with imprisonment for a term which may extend to one
month, or with fine which may extend to fifty rupees, or with both. Any employer,
who commences, continues, or otherwise acts in furtherance of a lock-out
which is illegal under this Act, shall be punishable with imprisonment for a term
which may extend to one month, or with fine which may extend to one thousand
rupees, or with both.
Any employer, who commences, continues, or otherwise acts in furtherance of
a lock-out which is illegal under this Act, shall be punishable with
imprisonment for a term which may extend to one month, or with fine which
may extend to one thousand rupees, or with both.

Wages
Workmen participating in illegal strike shall not be entitled to wages. Supreme
Court held that workmen shall be entitled to wages for the period of strike only
when the strike is valid and legal.

Dismissal
The workmen participating in illegal strike can be dismissed or discharged. The
workman can be reappointed after the termination of strike. It shall be
depended upon the facts. Previous conduct of workmen shall be considered
before dismissing for illegal strike.

Lock out:
Definition of Lockout Section 2(I) of The Industrial Disputes Act, 1947 defines a
lockout as the “temporary closure of a workplace, the suspension of work, or
an employer’s refusal to continue employing any number of workers during
their period of employment.” A lockout is when an employer temporarily closes
a workplace or stops work. It’s different from permanently closing a business.
Before 1860, a lockout was referred to as a “turn-off.” A lockout serves as the
employer’s counterpart to a strike.

The Reasons Behind the Lockouts

Disputes or clashes in between workers and the management.
• Unrest disputes or clashes in between workers and workers.
• Illegal strikes, regular strikes or continuous strikes by workers may lead to
lockout of factory or industry.
• External environmental disturbance due to unstable governments may lead
to lockouts of factories or industries.
• Continuous or accumulated financial losses of factory or industry may lead
to opt lockout by the management.
• Maybe lockout if any company involves in any fraudulent or illegal activities.
• Failure in maintaining proper industrial relations, industrial peace, and
harmony.
• Lockout of the factory is regarded as a major issue which affects both
management of the factory and their employees. Management should always
monitor employee's behaviour and relationship between employees and
relationship in between management and employees to avoid disputes which
leads to lockouts

Procedure Of Lockouts
According to Sec. 22(2) No person employed in a public utility service shall
go on Lockout in breach of contract:
a. without giving to the employer notice of Lockout, as hereinafter provided,
within six weeks before lockout; or
b. within fourteen days of giving such notice; or
c. before the expiry of the date of lockout specified in any such notice as
aforesaid; or
d. during the pendency of any conciliation proceedings before a conciliation
officer and seven days after the conclusion of such proceedings.

Prohibition of strikes and lock-outs [Section 23] of The Industrial

Disputes Act, 1947
No workman who is employed in any industrial establishment shall go on strike
in breach of contract and no employer of any such workman shall declare a
lock-out.
I.during the pendency of conciliation proceedings before a Board and seven
days after the conclusion of such proceedings;
II. during the pendency of proceedings before a Labour Court, Tribunal or
National Tribunal] and two months after the conclusion of such proceedings;
III. during the pendency of arbitration proceedings before an arbitrator and two
months after the conclusion of such proceedings, where a notification has
been issued under sub- section (3A) of section 10A; or] [10A. Voluntary
reference of disputes to arbitration]
IV. during any period in which a settlement or award is in operation, in respect
of any of the matters covered by the settlement or award.

Penalty for illegal strikes and lock-outs.

1. Any workman who commences continues or otherwise acts in furtherance
of, a strike which is illegal under this Act, shall be punishable with
imprisonment for a term which may extend to one month, or with fine which
may extend to fifty rupees, or with both.
2. Any employer who commences continues, or otherwise acts in furtherance
of a lock-out which is illegal under this Act, shall be punishable with
imprisonment for a term which may extend to one month, or with fine which
may extend to one thousand rupees, or with both.