Introduction: Strikes and Lock-Outs | Labour and Industrial Law - CLAT PG PDF Download

Introduction

• Strikes and lock-outs are significant tools for both workers and employers in industrial relations.
• A strike refers to a work stoppage by employees, while a lock-out involves the employer closing the workplace to enforce terms on employees.
• Strikes are seen as a vital right for workers to express grievances and address industrial disputes.
• While these actions can pressure the opposing party into concessions, their misuse can lead to severe disruptions and harm both parties.
• The Industrial Disputes Act aims to regulate and limit strikes and lock-outs to prevent misuse and ensure industrial harmony.

Definitions of Strike

• Strike is defined in the Industrial Disputes Act as:

1. Cessation of work by a group of workers in any industry acting together.
2. Concerted refusal by any number of workers to continue working or accept employment.
3. Refusal under common understanding by any number of workers to continue working or accept employment.

The definition emphasizes three key elements:

• Plurality of workmen: A strike involves multiple workers.
• Combination or concerted action: The action is collective.
• Cessation of work or refusal to do work: The core action of a strike.

Historical Background

• Strikes originated during the Industrial Revolution when machinery replaced human labor, leading to unemployment and wage reductions.
• The first recorded strike occurred in Egypt around the 12th century B.C. when workers protested for better treatment.
• The term 'strike' was first used in 1768 when sailors in London removed sails from merchant ships in protest.
• By the 19th century, strikes became common as workers organized for better conditions.
• The 1974 railway strike in India was significant, involving 1.7 million workers demanding higher pay, marking a pivotal moment in Indian labor history.
• Strikes became more accepted in the late 19th and early 20th centuries after being initially illegal.
• In the case of Indian Iron & Steel Ltd. v. Its Workmen, it was clarified that mere cessation of work does not constitute a strike unless it is a concerted action for an industrial demand.
• Cessation of work is a crucial element of a strike, and it can take various forms.
• The duration of cessation is not fixed and can be temporary.
• In the case of Buckingham & Carnatak Co. Ltd. v. Workers of Buckingham & Carnatak Co. Ltd., the Supreme Court ruled that the night shift operators' stoppage of work due to management's refusal to declare a holiday for a solar eclipse constituted a strike.
• Concerted action is another vital aspect of a strike, where workers act under a common understanding.
• The objective of an industrial strike is to achieve economic goals or defend mutual interests.
• Strikes are connected with employment terms,conditions of labor, and other labor law issues.
• In the case of B. R. Singh v Union of India, it was held that the right to strike is a form of demonstration and, while not a fundamental right, is a recognized means of addressing worker grievances.
• In T.K. Rangarajan v Tamil Nadu, the court ruled that government employees do not have the right to strike.
• In Dharma Singh Rajput v. Bank of India, the right to strike as a means of addressing worker grievances is acknowledged by the Industrial Disputes Act, but it must comply with the Act's conditions and seek conciliation first.
• The causes of strikes have evolved from wage disputes to include a variety of issues such as payment methods, hours of labor, administrative methods, trade unionism, and retrenchment of workers.

General Strike

• Definition: A general strike involves workers joining together for a common cause and staying away from work, depriving the employer of the necessary labor to run the factory.
• Token Strike: A token strike is a type of general strike where workers stay away from work for a day or a few hours to draw the employer's attention, demonstrating the solidarity and cooperation of the workers.
• Duration: General strikes are usually for a longer period and are resorted to when employees fail to achieve their objectives through other means, including a token strike.
• Organization: Such strikes are often organized by central trade unions and can occur in sectors like railways, post and telegraph services, etc.
• Examples: Hartals and bandhs fall under this category.

Stay-in-Strike

• Definition: Stay-in-strike, also known as 'tools-down-strike' or 'pens-down-strike', is a form of strike where workers report to their duties, occupy the premises, but do not perform any work.
• Aim: The purpose is to prevent the employer from employing other labor to carry on the business.
• Legal Interpretation: In the case of Mysore Machinery Manufacturers v/s State Court, it was held that where dismissed workmen stayed on the premises and refused to leave, it did not amount to a strike but an offence of criminal trespass. In Punjab National Bank Ltd. v/s their workmen, it was held that refusal under common understanding to continue to work constitutes a strike.

Go-Slow

• Definition: In a 'Go-Slow' strike, workers do not stay away from work; instead, they come to work and perform their tasks at a deliberately slow pace, aiming to reduce production and cause a loss to the employer.
• Legal Stance: In the case of Sasa Musa Sugar Works Pvt. Ltd. v/s Shobrati Khan & Ors, it was held that a Go-Slow strike is not considered a "strike" under the Act but is viewed as serious misconduct due to its insidious nature.

Hunger Strike

• Definition: A hunger strike involves a group of workers fasting at or near their workplace or the employer's residence to coerce the employer into accepting their demands.
• Legal Precedent: In the case of Piparaich Sugar Mills Ltd. v/s Their Workmen, it was determined that the concerted action of workers on hunger strike constituted a "strike" under the relevant legal provisions.

Sympathetic Strike

• Definition: A sympathetic strike is undertaken in support of other striking workers. It is aimed at encouraging or extending moral support to the striking workers.
• Purpose: The sympathizers participating in such a strike typically do not have their own demands or grievances.

Work to Rule

• Definition: Work to rule involves employees strictly adhering to rules while performing their duties, which they usually do not observe. This strict observance of rules slows down work, causing inconvenience to the public and embarrassment to the employer.
• Nature: It is not classified as a strike since there is no stoppage of work.

Definition of Lock-Out

• Lock-Out is defined in Section 2(l) of the Industrial Disputes Act as the closing of a place of employment, suspension of work, or refusal by an employer to continue employing any number of persons.
• Lock-Out is a tool for management to enforce terms on labor, akin to a strike for workers.
• Lock-Out involves keeping labor away from work to resist their claims.
• The key ingredients of Lock-Out include:
• Temporary closing of a place of employment by the employer.
• Coercion behind the employer's actions.
• Industry as defined in the Act.
• Dispute within such industry.
• The Supreme Court has described Lock-Out as the opposite of strike, emphasizing its use as a means of coercion or pressure on employees.
• In a Lock-Out, workers are asked to stay away from work, relieving them of the obligation to present themselves for work. Lock-Out occurs due to and during an industrial dispute.

Causes

• Disputes or clashes between workers and management.
• Unrest, disputes, or clashes between workers.
• Illegal strikes, regular strikes, or continuous strikes by workers.
• Continuous or accumulated financial losses of the factory or industry.
• Involvement in fraudulent or illegal activities.
• Failure to maintain proper industrial relations, industrial peace, and harmony.

Prohibition of Strikes and Lock-Outs

Section 22 of the Industrial Disputes Act, 1947

• Deals with the prohibition of strikes and lock-outs in industries providing public utility services.
• Strikes or lock-outs are not absolutely prohibited but require certain conditions to be met by workmen or employers.
• Aim is to prevent sudden disruptions that could inconvenience the public and society.

Section 22(1): Conditions for Strikes

• No employee in a public utility service can strike without fulfilling certain conditions:
• Notice of Strike: Must be given within six weeks before striking.
• Timeframe: Striking is not allowed within fourteen days of giving notice.
• Specified Date: Striking cannot happen before the date specified in the notice.
• During Conciliation Proceedings: Striking is prohibited during ongoing conciliation proceedings and for seven days after their conclusion.

Section 22(2): Conditions for Lock-Outs

• No employer in a public utility service can lock out workers without meeting specific conditions:
• Notice of Lock-Out: Must be given within six weeks before locking out.
• Timeframe: Locking out is not allowed within fourteen days of giving notice.
• Specified Date: Locking out cannot happen before the date specified in the notice.
• During Conciliation Proceedings: Locking out is prohibited during ongoing conciliation proceedings and for seven days after their conclusion.

Section 22(3): Dispensing with Notice

• Notice of strike or lock-out may be waived in certain cases:
• Strike Notice: No notice is needed if a lock-out is already in place.
• Lock-Out Notice: No notice is necessary if a strike is already in progress.
• In cases like Bhaskaran v Sub-Divisional Officer, public utility services must give notice for lock-outs, and employees cannot strike without notice.

Notice of Strike

• Notice of strike can be given by a registered Trade Union or representatives of workers.
• If there is no registered Trade Union, at least seven representatives of workers can give notice.
• The purpose of giving notice is to allow the other party to address grievances or negotiate terms.

Section 22(5) and (6): Notice of Lock-Out and Intimation

• Notice of lock-out should be given in the prescribed manner.
• Intimation of notices given under subsection (1) or (2) to specified authorities is required.
• Employers must report the number of notices received or given within five days to the Appropriate Government or prescribed authority.

General Prohibition of Strikes and Lock-Outs

• The prohibition against strikes and lock-outs in Section 23 is general and applies to both public utility and non-public utility establishments.
• Strikes in breach of contract by workmen and lock-outs by employers are prohibited in the following cases:
• During conciliation proceedings before a Board and for seven days after their conclusion.
• During conciliation proceedings before a Labour Court, Tribunal, or National Tribunal, and for two months after their conclusion.
• During arbitration proceedings before an arbitrator and for two months after their conclusion, if a notification under section 10-A(3-A) has been issued.
• During any period when a settlement or award is in operation regarding the matters covered by such settlement or award.
• The objective of these provisions is to ensure a peaceful environment for conciliation, adjudication, or arbitration proceedings.
• Section 23 applies to all industrial establishments, regardless of the subject matter of the dispute.
• Section 23 covers all strikes and lock-outs, while Section 22 is specific to public utility services.
• Section 23 does not prohibit strikes or lock-outs during conciliation proceedings before a conciliation officer, unlike Section 22.

Illegal Strikes and Lock-outs

According to Section 24(1) of the Act, a strike or lock-out is considered illegal if:

• It is initiated or declared in violation of section 22 in a public utility service.
• It is initiated in violation of section 23 in any industrial establishment (including both public utility and non-public utility services).
• It continues in defiance of an order issued by the appropriate Government under section 10(3) or sub-section (4-A) of section 10-A of the Act.

Legal vs. Illegal Strikes and Lock-outs

• A strike or lock-out that begins legally under Section 22 or Section 23 can continue unless the appropriate Government issues an order under Section 10(3) prohibiting its continuation.
• According to sub-section (2) of Section 24, the continuation of a strike or lock-out is considered illegal only if an order prohibiting it is issued under Section 10(3).
• Sub-section (3) of Section 24 states that a lock-out resulting from an illegal strike or a strike resulting from an illegal lock-out shall not be deemed illegal.

When Strikes and Lock-outs are Not Deemed Illegal

• At the commencement, they are not in violation of the Act's provisions.
• Their continuation has not been prohibited by the appropriate Government under Section 10(3) of the Act.
• A lock-out is declared as a result of an illegal strike or vice versa.

Court Rulings on Strikes

• In the case of Maharashtra General Kamgar Union v. Balkrishna Pen P. Ltd., the court ruled that if a strike begins before the expiration of a 14-day notice period, it is illegal only for the unexpired notice period. After this period, the strike becomes legal.

Prohibition of Financial Aid to Illegal Strikes and Lock-outs

Section 25 of the Act prohibits financial aid to illegal strikes and lock-outs. This section applies only if the strike or lock-out is deemed illegal. It states that no person shall knowingly spend or apply any money in direct furtherance or support of an illegal strike or lock-out.

Elements of Section 25

• Spending or applying money.
• Money spent or applied in direct furtherance or support of an illegal strike or lock-out.
• The strike or lock-out must be illegal.
• The person spending or applying money must be aware that the strike or lock-out is illegal.

Prosecution under Section 25

• For prosecuting a person under Section 25, the prosecution must prove:
• That the strike or lock-out was illegal.
• That the accused knew the strike or lock-out was illegal and that the money spent was in direct support of it.
• That the accused spent the money.

Prohibited Actions under Section 25

• Only the spending of money in support of a strike is prohibited under this section. Assisting strikers through means other than money, such as providing clothes or other forms of aid, is not punishable under this Act.

Punishment for Illegal Strikes and Lock-outs

• Punishment for providing financial aid to illegal strikes and lock-outs is outlined in Section 28 of the Act. The punishment may extend to six months' imprisonment, a fine of one thousand rupees, or both.

Punishment for Illegal Strikes

If a strike is deemed illegal, the party responsible for the illegality may face punishment under Section 26 of the Act.
Section 26(1) stipulates penalties for any worker who initiates, continues, or otherwise supports a strike considered illegal under this Act.
For a worker to be penalized under Section 26(1), two conditions must be met:

1. The worker must commence, continue, or act in furtherance of a strike.
2. The strike must be illegal according to the Act.

Workers found guilty of participating in an illegal strike may face imprisonment for up to one month, a fine of up to fifty rupees, or both.

Punishment for Illegal Lock-Outs

Section 26(2) states that an employer can be punished with imprisonment for up to one month, a maximum fine of one thousand rupees, or both if they:

1. Initiate, continue, or act in furtherance of a lock-out.
2. The lock-out is illegal according to the Act.

While workers have the right to strike, it is not a fundamental right. In cases of illegal strikes, the guilty party must face punishment.

A distinction is made between illegal but justified strikes and illegal and unjustified strikes. For example, a strike may be illegal but carried out for valid reasons and in an orderly and peaceful manner.

Entitlement to Wages during Strikes

In instances where a question arose regarding whether an employer can dismiss a worker for participating in a strike that is not illegal but unjustified, it was held that the right to strike is implicitly recognized. A strike may be deemed unjustified for various reasons, such as:

• Unreasonable demands
• Demands made with ulterior motives
• Efforts made by the employer to address alleged grievances through negotiation or conciliation.

Impact on Employer-Employee Relationship

• Participation in a strike, whether legal or illegal, does not terminate the employer-employee relationship. An employer cannot dismiss a worker solely for participating in a strike that is not illegal.

Deductions of Wages during Strike Period

• In the case of Bank of India v/s T. S. Kelewala, the Supreme Court ruled that when the contract, standing orders, or service rules/regulations are silent on the issue of workers' entitlement to wages during the strike period, the management has the authority to deduct wages for absence from duty when the absence is a concerted action by employees and is undisputed, regardless of whether the strike was legal or illegal.

Consequences of Illegal Strikes

• If a strike is illegal, the workers are not entitled to wages or compensation and may face disciplinary actions such as discharge or dismissal.
• The Supreme Court, in the case of India General Navigation and Railway Co. Ltd., and Anr. v/s Their Workmen, stated that an illegal strike in a public utility service cannot be justified. The law does not differentiate between a justified illegal strike and one that is not justifiable. In an illegal strike, the main concern is the extent of punishment, which should be based on the behavior of the strikers.
• There is a distinction between violent strikers, who obstruct loyal workers or engage in violent acts, and peaceful strikers. Violent strikers face harsher penalties, while peaceful strikers may not face wholesale dismissal.

Justification of Strikes

• In cases like Chandramalai Estate Ernakulam v/s Its Workmen, it has been emphasized that strike is a last resort. However, there may be circumstances where the urgency of the demand justifies a strike even before seeking government intervention.
• In Swadeshi Industries Ltd. v/s Their Workmen, a strike aimed at improving conditions related to wages, allowances, bonus, provident fund, gratuity, leave, and holidays is generally considered justified since it aligns with the primary objectives of a trade union.

Justification of Strikes and Lock-Outs

• In cases where there is a mechanism for dispute resolution, strikes or lock-outs initiated without following the prescribed procedures are considered unjustified and illegal. Strikes and lock-outs should be used sparingly to address urgent grievances when no alternatives are available or existing methods have failed.
• The justification of actions taken by employers or employees should be evaluated based on societal interests impacted by those actions.

Disciplinary Actions against Striking Workers

• Participation in illegal strikes is generally regarded as misconduct by workers, which can lead to severe penalties, including dismissal.
• In the case of Model Mills Ltd. v. Dhermodas, the Supreme Court upheld the right of employers to dismiss workers involved in illegal strikes according to the company's standing orders.

Right to Strike

• Although the right to strike is not explicitly stated as a fundamental right in the Constitution of India, it is recognized as a legitimate means of addressing industrial relations issues.
• Both lock-outs and strikes indicate a labor dispute deemed intolerable by one party, with lock-outs signifying employer-initiated disputes.

Types of Strikes

• Strikes can be categorized as justified or unjustified, legal or illegal, depending on the specific circumstances of each case. Strikes are typically associated with collective bargaining by workers and are permitted under the Industrial Disputes Act, 1947.
• Lock-outs serve as a coercive tool for employers, aiming to compel workers during an industrial dispute and continuing throughout the duration of the dispute.
• Strikes are viewed as revolutionary, striving for improved living conditions, wages, housing, education, and overall well-being for workers. These objectives contribute to a progressive social order.
• Lock-outs, in contrast, are seen as reactionary, aiming to suppress wages, deny equal opportunities, and prevent workers from saving for difficult times.
• Strikes signify a shift in power from employers to unions, granting unions greater bargaining power and unity among members. This transfer of power allows unions to regain support among workers.
• Lock-outs initiated due to financial difficulties for the company can benefit employers by reducing financial losses, as they eliminate labor and variable costs during the lock-out period.

Employer Perspective on Lockouts

• Lockouts are a last resort for employers, as they lead to production losses and financial setbacks. Employers prefer to continue operations unless facing financial distress.
• Lockouts can strain the relationship between employers and unions or workers. If workers challenge the reasons for the lockout, employers may have to compensate for the lockout period, incurring significant financial consequences.