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Strike And Lock-Out Under Industrial Dispute Act 1947

Strike is a very powerful weapon used by trade unions and other labor 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.

Meaning and 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.
  1. Firstly, a strike is a referred to as stoppage of work by a group of workers employed in a particular industry.
  2. Secondly, it also includes the refusal of a number of employees to continue work under their employer.

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.

Case law: Patiala Cement Company ltd v/s Workman 1955
It was held tht there is no limit for the period of strike. It can be for any short period or any long period. Cessation of work for half an hour was also held to be a strike.

Case law: Ramswaroop v/s Rex AIR 1949
It was held that strike is not completed by absence from work; it requires a collective refusal to do work.

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
General Strike: It means a strike by members of all or most of the unions in a region or an industry. It may be a strike of all the workers in a particular region of industry to force demands common to all the workers. These strikes are usually intended to create political pressure on the ruling government, rather than on any one employer. It may also be an extension of the sympathetic strike to express generalized protest by the workers.

Sit down Strike: In this case, workers do not absent themselves from their place of work when they are on strike. They keep control over production facilities. But do not work. Such a strike is also known as 'pen down' or 'tool down' strike. Workers show up to their place of employment, but they refuse to work. They also refuse to leave, which makes it very difficult for employer to defy the union and take the workers' places. In June 1998, all the Municipal Corporation employees in Punjab observed a pen down strike to protest against the non-acceptance of their demands by the state government.

Slow Down Strike: Go-slow is yet another form of industrial protest in which workmen do not stop the work but deliberately slow-down the process of production in order to cause loss of production to the employer. It must be noted that there is no cessation of work at all, and in fact, workmen pretend themselves as engaged in doing their work.

In Sasa Musa Sugar Works (P) Ltd. v. Shobrati Khan, the Supreme Court held that go-slow is not considered as strike within the ambit of Section 2(q), but it is a serious misconduct on part of the workmen. Mr. V.V. Giri, described go-slow as "enemy number one" of the workmen as it ultimately causes damage to their means of livelihood, apart from causing harm to the employer. Indian Courts have also taken a serious view on the go-slow and refused to interfere with the punishment inflicted by the employer for this misconduct, so that the coward practice could be discouraged.

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 that 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:
  1. without giving to the employer notice of strike, as hereinafter provided, within six weeks before striking; or
  2. within fourteen days of giving such notice; or
  3. before the expiry of the date of strike specified in any such notice as aforesaid;
  4. 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-
  1. during the pendency of conciliation proceedings before a Board and seven days after the conclusion of such proceedings;
  2. during the pendency of proceedings before a Labour Court, Tribunal or National Tribunal] and two months after the conclusion of such proceedings;
  3. 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]
  4. 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.

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.

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 stike 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 ofter the termination of strike. It shall be depend upon the facts. Previous conduct of workmen shall be considered before dismissing for illegal strike.

Lock out:
Lockout of any factory or industry is governed by the law called the Industrial Disputes Act 1947. According to section 22 of this Act, lockout of factory or industry must be done only after issuing prior notice to concern employees. If not, such lockout shall be treated as illegal lockout and concerned factory or industry shall be penalised according to the Industrial Disputes Act 1947.

A lockout is a work stoppage in which an employer prevents employees from working. It is declared by employers to put pressure on their workers to come to their way by consensus about settlement of issued lead to lockout. This is different from a strike, in which employees refuse to work. Thus, a lockout is employers' weapon while a strike is raised on part of employees. According to [section 2(1)] of Industrial Disputes Act 1947, lock-out means the temporary closing of a place of employment or the suspension of work or the refusal by an employer to continue to employ any number of persons employed by him.

Meaning and definition:
According to Industrial Disputes Act 1947,Lockout [Sec. 2(1)]:
  • Lockout means "the temporary closing of a place of employment, or the suspension of work, or the refusal by an employer to continue to employ any number of persons employed by him". Lockout is the antithesis of strike.
  • It is a weapon of the employer while strike is a weapon in the hands of workers.
  • Just as the strike is a weapon in the hands of the workers for enforcing their demands, lockout is a weapon available to the employer to make their employees come to their way and accept the management's terms and conditions.
  • The Industrial Dispute Act does not intend to take away these rights.
  • However, the rights of strikes and lockouts have been restricted to achieve the purpose of the Act, namely peaceful investigation and settlement of industrial disputes.
  • General Labour Union (Red Flag) v/s B. V. Chavan And Ors on 16 November 1984, the Supreme Court of India expressed, "Imposing and continuing a lockout deemed to be illegal under the Act is an unfair labor practice."

Management Of Kairbetta v/s Rajamanickam And Others on 24 March, 1960
Supreme Court of India court observed as follows:
"Just as a strike is a weapon available to the employees for enforcing their industrial demands, a lockout is a weapon available to the employer to persuade by a coercive process the employees to see his point of view and to accept his demands.

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 behavior 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:
  1. without giving to the employer notice of Lockout, as hereinafter provided, within six weeks before lockout; or
  2. within fourteen days of giving such notice; or
  3. before the expiry of the date of lockout specified in any such notice as aforesaid; or
  4. 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:
  1. during the pendency of conciliation proceedings before a Board and seven days after the conclusion of such proceedings;
  2. during the pendency of proceedings before a Labour Court, Tribunal or National Tribunal] and two months after the conclusion of such proceedings;
  3. 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]
  4. 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. [Section 26] of the Industrial Dispute Act 1947.

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.

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