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Concept Of Industry, Industrial Disputes And Workmen

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 act 1947
  1. The promotion of measures for securing good relations between the employers and employees.
  2. An investigation and settlement of industrial disputes between employers and employees.
  3. The prevention of illegal strike or lockout.
  4. Relief to workmen in the matter of lay-off, retrenchment, and closure of an undertaking.
  5. Collective bargaining.
  6. A number of authorities for the settlement of industrial disputes and their power, function, and duties are as follows:
    1. Work committee
    2. Conciliation officer
    3. Board of conciliation
    4. Court of enquiry
    5. Labour court
    6. Tribunal
    7. National tribunal

Definition and meaning
The term industrial diputes has 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:
  1. Dispute and deference between employer and employer or between employer and workmen or between workmen and workmen.
  2. 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.
  3. Such dispute or difference could be related to any workmen or any other person in which they keep the interest collectively.

Case law:Dimakuchi Tea Estate's workman v/s Manager of Dimakuch Tea Estate AIR 19598
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 does 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:
Sarvashramik 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 Safdergung 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 any where community or its any particulars class is an undertaking. In simple way term industry can be following:
  1. Such activity which has the support of both employer and workman.
  2. Its object is always to satisfy human physical requirements.
  3. It is organized in the same way as a business.
  4. 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:
Banglore 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 conclude 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.
  1. 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.
     
  2. 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 mazdor sabha case.
     
  3. 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.
     
  4. 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 cout ambala it is decided that university is an industry and a carpenter employed in a university is a workmen and the labour courts has a jurisdiction to decide the dispute related to the termination of such service.

    Case law:
    suresh chandera 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.
     
  5. 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.
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:
  1. A workman must be employed in an industry
  2. Employment for heir or reward
  3. There shall be some consideration
  4. Nature of work performed by such person may be manual, skilled, unskilled, technical, operational, clerical or supervisory.
  5. Industry in which workman is employed shall be an industry as definition in section 2(J) of IDA 1947
  6. The section 2(a) of the IDA 1947 clearly mention that the terms of the employment may be expressed/ implied
  7. 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
  1. Who is subject to Air Forces Act, Army Act, and Navy Act.
  2. Person employed in police services or jail services.
  3. Person employed in managerial or administrative capacity.
  4. Person employed in a supervisory capacity draws wages exceeding 1600 rupees per mensem.
The word workmen has 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:
  1. Was employed as head clerk in the office of regional manager.
  2. His term of employment were being regulated by the orders of state roadways department.
  3. His nature of work was not managerial or administrative.

Case law:
H.C chuahan v/s life insurance corporation of India 1982

It was held that such development officers were held to be workman who:
  1. Perform daily, manual, mechanical or clerical work
  2. Do not perform managerial or administrative work
  3. Cannot appoint or dismiss any other
  4. Cannot also distribute the work
  5. 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 principle for the workman. It was stated by the SC that:
I. Nature of work
II. No managerial work

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