L2 Labour Law

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I N D U S T R I A L D I S P U T E

• Industrial dispute refers to disputes between employers and workers. It refers to industrial unrest and
conflicts. Any controversy between employers and workers is called an industrial dispute.
• However, it is the narrow meaning of industrial dispute. In today’s industrial milieu, the term industrial
dispute has a wider connotation.
• In the wider sense, industrial dispute means any kind of dispute or differences between the employer
and employer; workers and employer; workers and workers. These differences or controversies may be
on account of employment, conditions of work, and matters concerning labor.
According to Industrial Disputes Act 1947 Sec. 2(K), “Any dispute or difference between the employers
and employers, or between employers and workmen, or between workmen and workmen, which is
connected with the employment or non-employment or the terms of employment or with the conditions of
labour of any person.” Industrial disputes and conflicts have been a source of major concern because of
the disruption they cause to planned economic development in a Country like ours and the losses
involved for everyone concerned i.e. workers, owners, and the public. The hidden costs of strikes and the
effect on industries with forwarding and backward linkages are difficult to measure.
AN INDUSTRIAL DISPUTE MUST HAVE THE FOLLOWING CHARACTERISTICS:

1. Real and Substantial Different: The term industrial dispute indicates a real and substantial
difference having some element of persistency and continuity till it is resolved. If it is not
resolved, it may endanger the industrial peak of the undertaking or the community. When
parties are different and the dispute is connected with employment or non-employment or the
terms of employment or with the conditions of labor, there comes into existence an industrial
dispute.

2. Connection with Employment or Non-Employment:

Every difference between an employer and his workmen which is connected with their employment
or non-employment, or with the terms and conditions of their employment is an ‘industrial dispute’.
The definition encompasses every dispute between the employer and his workmen, which is
connected with the service of workmen or with the benefits and privileges incidental to that service.
3. Parties to the Dispute Must have Direct Interest:
The person regarding whom the dispute is raised must be one in whose employment, non-employment,
terms of employment, or conditions of labor, as the case may be the parties to the dispute have a direct or
substantial interest. Even when the persons regarding whose employment a dispute is raised are not
‘workmen’, the dispute is an ‘industrial dispute, if it is raised by the workmen or the employer and them as a
class has a direct or substantial interest in the persons about whose employment the dispute is raised.
4. Dispute May Relate to Production and Distribution of Material Goods and Services:
Primarily industrial disputes occur when the operation undertaken rests upon cooperation between
employers and employees with a view to the production and distribution of material goods, but they may
arise also in cases where the co-operation is to produce material services. The term ‘material service’ is
interpreted as those which involve an activity carried on through cooperation between the employers and
employees to provide the community with the use of something such as electric power, water, transportation,
mail delivery, telephone, and the like. It also includes the production and/or distribution of goods and
services calculated to satisfy human wants and wishes inclusive of material things or services geared to
celestial bliss.
STRIKE

A strike is a stoppage of work. It refers to a situation when workers leave the place of work or go out
of the factory and stop work. Thus, the work is temporarily stopped and production comes to a
standstill. According to Industrial Disputes Act, a strike means refusal to do work collectively by
persons working in an industry or refusal to do work unanimously by those persons who are
appointed to do work.

A strike is a powerful weapon used by trade unions or other associations or workers to put across
their demands or grievances by employers or management of industries. In another way, it is the
stoppage of work caused by the mass refusal in response to grievances. Workers put pressure on their
employers by refusing to work till the fulfillment of their demands. Strikes may be fruitful for
workers’ welfare or it may cause economic loss to the country.
Few Instances of Strikes in India
• In March 2012, nurses employed by different hospitals in Chennai went on strike for 7
days demanding from hospital management a hike of basic wages to Rs 15000/-, apart
from leave benefits and annual increment. All the well-known hospitals like Apollo,
Fortis, Max, etc .came to a standstill because of the strike.
• In January 2014, Kingfisher employees went on hunger strike due to non-payment of
salary for 17 months.
• In September 2016, tens of millions of Indian workers in the public sector had gone on
strike demanding higher wages. Banks and power stations were kept shut and public
transportation systems froze in some states. Later the government considered their
demands and increased the wages. It was the world’s largest-ever strike.
Following are the main features of a strike:
(i) Strike is organized by the trade union. If an organization has no trade union and
some employees stop work even then it is treated as a strike.
(ii) It is essential under strike that workers stop work collectively. If one person does
not do the work, it is treated as a violation of the order and not a strike.
(iii) During g strike employer and employee relations remain intact. Stoppage of work
or not doing work or refusing to do work, due to any reason, means strike.
(iv) During a strike it is not necessary for the workers should leave the place of work or
organization on these days, due to various forms of the strike, the workers may proceed
on strike even while working.
Strike under Industrial Dispute Act, 1947
For strikes, the industrial dispute act under 2 (q) defines strikes as “a cessation of work by a body of persons employed in any
industry acting in combination, or a concerted refusal, or a refusal, under a common understanding of any number of
persons who are or have been so employed to continue to work or to accept employment”. 
In the case of “Cox and Kings Limited v. Their Employees”, the Court held that a strike can be considered justified if it is in
connection with a current labour dispute or directed against an unfair labour practice of the employer.
Under the following situation as given under section 22, on these grounds the strikes can be considered as illegal:
1.Without giving to employer notice of strike 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; or
4.During the pendency of any conciliation proceedings before a conciliation officer and seven days after the conclusion of such
proceedings.
But herein it is important to notice these that these arrangements don’t forbid the labourers from demonstration yet expect them to
satisfy the condition before taking to the streets. Further, these arrangements apply to open utility assistance in particular. The
Industrial Dispute Act, of 1947 doesn’t explicitly specify who takes to the streets. Nevertheless, the definition of the strike itself
suggests that the strikers must be persons, employed in any industry to do work.
Further, the provisions under section 23 are general in nature. It imposes general restrictions on declaring strike in breach of
contract in both public as well as non-public utility services in the following circumstances mainly: –
1.During the pendency of conciliation proceedings before a board and till the expiry of 7 days after the conclusion of such
proceedings;
2.During the pendency and 2 months after the conclusion of proceedings before a Labour Court, Tribunal, or National Tribunal;
3.During the pendency and 2 months after the conclusion of the arbitrator, when a notification has been issued under subsection 3 (a)
of section 10 A;
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.
The main purpose of this section is to maintain the untroubled and discipline atmosphere when conciliation, and negotiation
proceedings are in process without any disturbance.
As held in the case of Ballarpur Collieries Co. v. The Presiding Officer, Central Government Industrial Tribunal, “It was held, if a
person was employed in public utility services then, he/she cannot go for a strike without the consent and gathering the procedures
which must be satisfied in the provisions.”
Illegal Strikes
Section 24 of the Industrial dispute Act, 1947 provides that strikes which are in non-compliance to section
22 and section 23 are illegal.
1.A strike or a lockout shall be illegal if,
1. It is commenced or declared in contravention of section 22 or section 23; or
2. It is continued on contravention of an order made under subsection (3) of section 10 of subsection
(4-A) of section 10-A.
2.Where a strike or lockout in pursuance of an industrial dispute has already commenced and is in
existence all the time of the reference of the dispute to a board, an arbitrator, a Labour Court, Tribunal or
National Tribunal, the continuance of such strike or lockout shall not be deemed to be illegal; provided that
such strike or lockout was not at its commencement in contravention of the provision of this Act or the
continuance thereof was not prohibited under subsection (3) of section 10 of subsection (4-A) of 10-A.
3.A strike declared in the consequence of an illegal lockout shall not be deemed to be illegal.
The constitution stands on the legality of the strikes
Contrary to the international laws where the right to strike is generally considered a fundamental human
right; here in  India Right to Strike is not expressly recognised by the law, it is not an absolute right,
exceeding this right comes with reasonable restrictions which are being imposed by the state. 
Under entry 29 in list III, (Concurrent List) of the VII the schedule of the constitution of India, deals
with the matter of trade unions, industrial and labour disputes; entry 61 (concurrent list) deals with the
matter of industrial disputes, concerning union employee, empowered the central as well as the provincial
and presidency legislatures to legislate on the following matter.
According to the concurrent list, it specified that the trade Union, Industrial and Labour disputes related
to entry 22; entry 23 deals with social security and social insurance, employment and unemployment and
entry 24 deals with the welfare of labour, including the condition of work, provident funds, employers
liability, workmen’s compensation etc. Thus, both the parliament and the legislature have the competence
to legislate on this subject.
In article 19(1) of the Indian constitution guarantees the protection of certain freedoms as a fundamental right. The
constitution of India has specified that all citizens shall have the right i.e, To freedom of speech and expression, To
Assemble peaceably and without arms, To form associations or union, To move freely throughout the territory of India, To
reside and settle in any part of the territory of India, and to practice any profession, or to carry on any occupation, trade or
business. But the principle of the right of the strike is not expressly defined or recognized under the Indian constitution 
In the case of ‘All India Bank Employees Association v. I. T.’, 
Supreme Court held that “the right to strike or right to declare lockout may be controlled or restricted by appropriate
industrial legislation and the validity of such legislation would have to be tested not regarding the criteria laid down in
clause (4) of Article 19 but by totally different considerations.”
The Supreme Court concerning strikes has the same point of view that the right to strike is an important weapon in the
armory of employees as a mode of redress. It is a right earned by the employees as a form of direct action during their long
struggle. It is a weapon to safeguard and preserve liberty. It is an inherent right of every employee. Being an essential right
for every employee, the right to strike is an inherent legal strike, despite the fact it cannot be raised to the status of a
fundamental right. 
Both the Indian constitution and industrial dispute act, of 1947, are on common grounds, both of them think that
the right to strike is a legal right and the sustainment of this right comes with reasonable restrictions. The
significance of the right to strike is the core of significance to the principle of collective bargaining for each
worker.
Hence, the constitution provides a guaranteed fundamental right to association and union under article 19 of the
Indian constitution but it doesn’t provide the fundamental right to go on strike to date, it remains a disputable
topic whether the right to strike is a fundamental right or not. No clear view has been provided by courts on
strikes. But one thing is clear and cut the right to strike is a statutory implied right with certain restrictions.

THANK YOU
VINEET KUMAR

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