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Labour Law

The document discusses strikes and lockouts under the Industrial Disputes Act of 1947, outlining their definitions, types, and legal implications. It emphasizes the importance of strikes as a means for workers to address grievances related to wages and working conditions, while also detailing the procedural aspects of lockouts initiated by employers. Various case laws and the impact of these actions on both workers and employers are also examined.

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0% found this document useful (0 votes)
7 views18 pages

Labour Law

The document discusses strikes and lockouts under the Industrial Disputes Act of 1947, outlining their definitions, types, and legal implications. It emphasizes the importance of strikes as a means for workers to address grievances related to wages and working conditions, while also detailing the procedural aspects of lockouts initiated by employers. Various case laws and the impact of these actions on both workers and employers are also examined.

Uploaded by

vibhushah99
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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STRIKES AND LOCKOUTS UNDER INDUSTRIAL DISPUTES ACT 1947

TABLE OF CONTENT

Sr No. Topic Page


No.
1 INTRODUCTION 2

2 MEANING AND DEFINITION OF STRIKE 3

3 STRIKES AND VARIOUS CONCEPTS 3

4 TYPES OF STRIKES 6

5 IMPACT OF STRIKES ON WORKERS AND EMPLOYERS 8

6 LEGAL STATUS 9

7 CASE LAWS RELATED TO STRIKES 10

8 MEANING AND DEFINITION OF LOCK-OUTS 11

9 LOCK-OUTS AND VARIOUS CONCEPTS 11

10 EFFECTS OF LOCK-OUTS 12

11 LEGAL STATUS 13

12 CASE LAWS RELATED TO LOCK-OUTS 14

13 CONCLUSION 14

14 BIBLIOGRAGHY 15

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STRIKES AND LOCKOUTS UNDER INDUSTRIAL DISPUTES ACT 1947

❖ INTRODUCTION

➢ What is Industrial Dispute Act 1947?


An Act to make provision for the investigation and settlement of industrial disputes, and for
certain other purposes. Whereas it is expedient to make provision for the investigation and
settlement of industrial disputes, and for certain other purposes.
➢ Main objective of the act:
The main aim of the Industrial Disputes Act, 1947 is to maintain a balance between labour and
industry welfare by ensuring industrial peace and harmony. It focuses on the mechanism and
procedure for the investigation and settlement of industrial disputes by conciliation, arbitration
and adjudication which is provided under the statute.
Strikes and Lock-outs
Labour strikes in India are not uncommon and they occur across various industries and sectors.
These strikes are often a result of disputes between workers and employees regarding wages
working conditions benefits or other likewise issues. The number of labour strikes can vary
depending upon the prevailing socio-economic and political factors in the country.
The right to strike is acknowledged by the legislation as a statutory right. It also establishes
requirements that must be met in order for a strike to be legitimate and any violation of them
would regard the strike as unlawful or illegal.
Lockout means temporary shutdown of the factory by the employer, but not winding up of the
factory. Lockout of the factory maybe happened due to the failure in the management affected
by internal disturbances or maybe by external disturbances. Internal disturbances maybe caused
when the factory management goes in to financial crisis or got succumbed into financial debts,
disputes between workers and workers, disputes between workers and management or may be
caused by ill-treatment of workers by the management.
Sometimes factory lockouts may be caused by external influences, such as unnecessary
political involvement in management of workers union may be provoked for unjustified
demands that may be unaffordable by the management, which may ultimately lead to lockout
of the factory. Factory lockout is procedural aspects governed by the labour legislation of that
country. Lockout of the factory is a major issue, which affects workers as well as management
and cannot be initiated for a simple reason.
Unlike the strikes, lockout is declared by the management out of the consequences of clashes
between management and the workers, due to unjustified demands by the workers.

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STRIKES AND LOCKOUTS UNDER INDUSTRIAL DISPUTES ACT 1947

❖ Meaning and Definition of Strikes


Strike is one of the oldest and the most effective weapons of labour in its struggle with capital
for securing economic justice.
As per layman term, “Strike is to refuse to continue working because of an argument with an
employer about working conditions, pay levels, or job losses”.
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 the employers by refusing to work till the fulfilment of their demands. Strikes may
be fruitful for workers’ welfare or they may cause economic loss to the country.
For strike, the Industrial Dispute Act under Section 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”.

❖ Essential requirements of Strikes


The necessary requirements for the strike to exist are
• There must be a cessation of work. Cessation means abandonment or stoppage of work.
It is the most important characteristic of the strike. It is stoppage of work or refusal to
continue work that the employees are required to do. The cessation of work must be
voluntary and temporary. Permanent cessation of work would result in termination of
the employment contract. There must be an actual cessation of work
• The cessation of work must be by persons employed in any industry. It means that the
establishment must be an industry within the definition of ‘industry’ provided under the
Industrial Disputes Act of 1947. Within the meaning of Section 2(q), if the
establishment in which the strike is carried out is not covered under the definition of
industry, even though all other ingredients of the strike are fulfilled, it will not be a
strike.
• The strikers must have been acting in combination under common understanding
Individual worker’s work stoppages do not constitute a strike. Thus, a strike implies
cessation of work by a number of employees under common understanding. Unless the
common intention of a number of workers is proved, it would not amount to a strike.

• The strike must be the result of an industrial dispute- The cessation of work must be
preceded by an industrial dispute. According to the Industrial Disputes Act of 1947, an
industrial dispute arises from a disagreement or conflict between-
1. Employers and employers
2. Employers and workmen
3. Workmen and workmen

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STRIKES AND LOCKOUTS UNDER INDUSTRIAL DISPUTES ACT 1947

• The dispute or disagreement ought to be related to


1. Employment
2. Non-employment
3. Terms of employment
4. Conditions of service of any persons

• There must be a concerted refusal; or

• 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.

• They must stop work for some demands relating to employment, non-employment or
the terms of employment or the conditions of labour of the workmen.

❖ Features of Strikes
According to Ludwing Teller, the word ‘strike’, in its broad sense, corresponds to a
disagreement between an employer and his employees that results in a mutually beneficial
suspension of employment.
He described four characteristics of a strike, which are as follows:
• A relationship between the person or persons who initiate the strike and the person or
persons against whom the strike is called is established,
• The relationship as one of employer or employee is constituted,
• The ongoing dispute between the parties and the utilisation by labour of the weapon of
concerted refusal to continue to work on the strategy of convincing or coercing
adherence to the demands of the workmen,
• The contention advanced by workers is that even in a state of hostile suspension,
although work ceases, the employment relationship is deemed to continue.

❖ Common reasons for strikes


There are many causes of strikes. Anything that affects the minds of the workers can induce
them to go on strike. They are now conscious of their rights. Wherever there is a violation of
the rights of workers or there is unfair labour practices or unnecessary victimisation, it is bound
to lead to an
➢ Economic causes
Economic causes include questions pertaining to wages, bonuses and allowances; retrenchment
atmosphere of strike. The causes of strikes can be divided into the following categories-of
workers by the employer; a faulty retrenchment system; leave; and so on. Low wages,
irrespective of rising prices, demand for a rise in dearness allowance, intolerable working and

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STRIKES AND LOCKOUTS UNDER INDUSTRIAL DISPUTES ACT 1947

living conditions, issues pertaining to hours of work, etc. are some other economic causes that
instigated a number of strikes in India.
• Demand for wages– In India, the remuneration paid to workers for their work is not
adequate to meet their expenses. They can neither provide for the education of their
children nor feed them properly. The low wages are the main reason for discontent
among the workers. While the price level has been increasing constantly at a higher
rate, the increase in the rate of wages could not keep pace with it. This led to a situation
where workers resorted to striking to raise their rate of wages.
• Dearness allowance and bonus– Due to the high rate of inflation and rise in the cost of
living, demand is made for increasing the dearness allowance, as the high rate of
inflation and the dearness allowance are co-related. The various trade unions in India
have been demanding 100 per cent neutralisation of prices by a corresponding increase
in the dearness allowance. Another important cause of industrial disputes in India is
the demand for bonuses by the workers.
• Demand for improved working conditions– Industrial disputes in India have also
resulted from the demand for improved working conditions such as leave, fewer hours
of work, better working conditions like better safety measures, canteen facilities etc.
The working conditions in most of the countries are unhygienic and poor in respect of
lighting and ventilation. These unhealthy conditions make workers discontented and
lead to a strike.
• Demand for reinstatement- At times, employers arbitrarily retrench many workers, and
this is naturally resisted by the affected workers. Besides, other workers also feel
insecure. Therefore, the workers resist such moves. They stand united and agitate for
the reinstatement of the retrenched colleagues.
➢ Managerial causes
The managerial causes include the wrongful treatment of workers by the management, unfair
labour practices, defective recruitment and worker development policies of the management,
non-recognition of the trade unions by the management, political causes, etc.
• Non recognition of trade unions– Sometimes, trade unions are not recognised by
employers, and it eventually becomes a source of contention between the employer and
the employees. The employees may declare a strike to demand recognition of their trade
union conflict, which may result in strikes, etc.·
• Resistance to misconduct by officers– Today there is sufficient awakening among the
workers, and they are very conscious of self-respect. Therefore, any slight insult by
officers provokes them. Such incidents may sometimes ignite the fire of conflict and
tension, which takes the form of gheraos, etc.·
• Defective recruitment and worker development policies– Indian industries recruit
labour through faulty systems, which creates many problems. Besides, partial treatment
by management with regard to grooming, promotion or demotion of workers is also a
cause of dissatisfaction among workers, leading the workers to resort to strike.

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STRIKES AND LOCKOUTS UNDER INDUSTRIAL DISPUTES ACT 1947

• Insufficient and defective leadership– The reason for some industrial disputes is also
the lack of able leadership in both management and trade unions. Inefficient managerial
leaders do not care for the problems of the workers. Due to a lack of competence on the
part of the supervisors and managers, neither they attempt to improve the human and
labour relations, nor do they try to develop mutual understanding between the workers
and themselves.
➢ Political causes
These days, various political parties in India fight with each other to gain the sympathy and
support of workers, and for this reason, they go out of their way to support all types of distress
and even foment discontent among them. All labour unions in India are connected with one or
another political party, which uses workers for its own selfish motives.

❖ Types of strikes
Based on the phenomena of strikes around the world, strikes can be categorised into economic
strikes, sympathy strikes, general strikes, sit-down strikes, slow down strikes, hunger strikes
and wildcat strikes have been experienced.
• Economic Strike
Such a strike happens due to economic demands like increments in wages and allowances like
house rent allowance, transport allowances, bonuses etc.An economic strike is a strike
concerning the wages, hours and other conditions of work and terms of employment of the
worker. In economic strikes, the workers demand betterment regarding their wages, house rent
allowance, travelling allowance, dearness allowance and other facilities such as privilege leave
and casual leave.
• Sympathy Strike
In such a strike union or workers of one industry join the strikes already hailed by other unions
or workers. A sympathetic strike is one in which striking employees have no demands or
grievances of their own but strike for the purpose of aiding others, either directly or indirectly.
A sympathetic strike is a strike within the purview of the Industrial Disputes Act.
Case: S. Kumbalingam vs. Indian Metal and Metallurgical Corporation, Madras (1963),

• General strike
This strike was intended to increase the political pressure on the ruling party by all unions or
members in a region or state.It normally refers to a large-scale strike organised by employees
belonging to an industry, region or entire country. Since these strikes are organised on a mass
basis, they create a huge impact and often put a lot of pressure on employers. However, these
strikes are not intended against any individual employer.
A few examples of general strikes in India are the nationwide strikes of November 1991,
June 1992, September 1993, September 1994 and September 1998.

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STRIKES AND LOCKOUTS UNDER INDUSTRIAL DISPUTES ACT 1947

• Sit-in Strikes
Other names for sit-in strikes are pen-down, tools-down, and stay-in. In these strikes,
employees report for work but do not work. These strikes may sometimes be planned and other
times spontaneous, depending on the happenings and urgency of the situation. In these forms
of strikes, employees peacefully enter their place of work without indicating their intention.
But after entering their workplace, they do not do their work. If blue-collared workmen do not
do their work, it may be a tool-down strike, and if white-collared workmen do not work, it is a
pen-down strike.In such cases, workers hold strikes at the workplace and none of the workers
stay absent from duty but they all refuse to work till their demands are fulfilled.
Case: Punjab National Bank, Limited vs. Its Workmen (1963)
• Hunger strike
It is one of the painful strikes by the strikers where workers go on strike without having
food/water to redress their grievances. The employees of Kingfisher Airlines went on hunger
strikes for salary dues for several months.The employees undertake fasting by abstaining from
both food and work as a means of protest in a hunger strike. Since there is a cessation of work
due to employees’ participation in the fast, it is viewed as a strike. The purpose of such a hunger
strike is to put forward their grievance to the employers and get the attention of the government
and the general public to the cause of the strike. It is non-violent and is not strictly a strike
under the Industrial Disputes Act of 1947. In a hunger strike, there is not necessarily a cessation
of work.
Case: Pipraich Sugar Mills Ltd. v. Pipraich Sugar Mills Mazdoor (1956),
• Wildcat strike
Such a strike happens by the workers without the consent of the union and authority. In 2004,
advocates went on a wildcat strike at civil courts in Bangalore to protest the remarks allegedly
made by an assistant commissioner against them.
• Legal Strike
A strike is legal if it does not violate any provisions of the statute. Though the right to strike is
not expressly recognised as a legal right under the Industrial Disputes Act, 1947, strikes not
resorted to in contravention of the provisions of Sections 22 and 23 of the said Act are
considered as legal as enunciated by Section 24 of the said Act.
• Illegal Strike
In India, strikes became illegal, not because of objects but because of the breach of statutory
provisions. Thus, strikes in contravention of the provisions of the Industrial Dispute Act, of
1947, the Central Civil Services (Conduct) Rules, of 1964, and the Essential Services
Maintenance Act of 1981 are illegal.

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STRIKES AND LOCKOUTS UNDER INDUSTRIAL DISPUTES ACT 1947

❖ Impact of strikes on the employer


• Employer suffering– The employer suffers equally from workers during strikes as they
face output loss, adverse effects on the quality of production, and damage to property.
All this affects labour management relations.
• Effect on output and quality of production– Strikes affect the productivity and
profitability of the industrial unit. Loss of output not only affects the industry that is
directly affected by the strike but also other industries that are dependent on the
industries affected by strikes. The strike also affects the quality of production due to
limited interest or non-cooperation from workers during the period of the strike.
• Effect on the goodwill of the industry– The strikes affect the market reputation of the
industry. Society loses faith in the industry. Hardworking, efficient and sincere workers
would become reluctant to join an industry where strikes are really common. The rate
of investment is also reduced due to strikes.
• Bad effect on labour-management relations– Strikes affect labour-management
relations as they can lead to the breakdown of communication between the employer
and employees. The management’s attitude changes towards the workers, which causes
tension between the employer and the employees, and this disturbs the smooth working
of the industrial unit.
• Damage to property– Sometimes strikes result in the destruction of the property of the
employer, as the strikers may turn violent and destroy the property of the industry. The
property may also get damaged due to the confrontation of the workers with the police,
which causes loss to the employer. The employers also have to bear the additional
expenditures for protecting the property.

❖ Impact of strikes on workers


• Sufferings of workers– The workers face many difficulties during strikes. During the
strikes, not only workers but also their families suffer as they are not paid during the
strike, which affects their physical and mental health.
• Loss of wages– The workers may not be paid during the strike period. Thus, workers
and their families have to face financial difficulties due to such disputes. The workers
and their family members also suffer health loss due to mental stress resulting from loss
of wages.
• Loss of job– The prolonged strikes by the workers sometimes lead to lock-out by the
employer or closure of the industry due to industrial sickness. This results in the loss of
jobs of the workers and increases unemployment and unrest among them.
• Victimisation by the employers– Due to industrial disputes, a feeling of hostility
develops between the employer and the employee, due to which the employer loses
sympathy for the workers. As a result, the employer may deny certain welfare and other
facilities to the workers once the strike is over.

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STRIKES AND LOCKOUTS UNDER INDUSTRIAL DISPUTES ACT 1947

❖ Legal status
Section 22 of ID Act prohibits strikes in Public Utility Services and Section 23 puts a general
prohibition on strikes in any industrial establishment. Hence strikes are generally illegal.
However, Section 24(3) provides that a strike called in response to an illegal lock out will not
be illegal. Besides, there are other situations when a strike can become legal. Section 20(1)
provides for commencement of conciliation proceedings when the notice is received by the
conciliation officer or on the date of the order the dispute is referred to the Board.
Until the dispute gets referred to the conciliation officer or the Board as the case may be, the
conciliation does not start. Thus, in the time window between 14 days after notice of strike is
issued and before the lapse of six weeks from the same date, a legal strike can take place in
PUS, provided the dispute is yet to be referred.
When strike is illegal
1. if it is in breach of Contract of Employment.
2. if it is in Public Utility Services.
3. if Notice under Section 22(1) is not given.
4. if commenced during Award or settlement period.
5. if commenced During or within 7 days of completion of Conciliation Proceedings.
6. if commenced During or within Two months of completion of Adjudication Proceed
Is strike a fundamental right?
Though right to form union and right to freedom of speech and expression are guaranteed
under the Constitution via Articles 19(1) (c) and 19(1) (a) respectively, the right to strike is not
derived out of it. However peaceful demonstrations are allowed.
Protection for people refusing to participate in illegal lockouts or strikes
The Act provides protection to persons who refuse to participate in any illegal strike or lockout.
It provides that if any person refuses to participate in or continues to participate in any
strikewhich is illegal, he shall not be subjected to any expulsion from the trade union or society
or penalty or deprivation of any right by reason of such refusal or any action.
Regulations of strikes
The appropriate government is empowered to prohibit the continuance of any strike or lockout
in relation to an industrial dispute that has been brought forward to a Board, Labour Court,
Tribunal or even to the National Tribunal. If an industrial dispute is referred and an order
prohibiting any strike or lockout has been made by the appropriate government, the strike or
lockout shall be illegal if it is continued after the order has been made. Similarly, in accordance
with Section 10A (4-A), the relevant government may, by order, forbid the continuation of any
strike or lockout related to an industrial dispute that has been referred to arbitration after a
notification has been sent out in accordance with Section 10A(3-A).

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STRIKES AND LOCKOUTS UNDER INDUSTRIAL DISPUTES ACT 1947

❖ Case laws & judgements


4 Important court judgements which every worker or employee should be aware of:
1. No Right to Strike for Government Employees

In the case of T.K. Rangarajan v. Government of Tamil Nadu and Others (the Tamil
Nadu Government Employees Case), Justice M.B. Shah, speaking for a Bench of the
Supreme Court consisting of himself and Justice A.R. Lakshmanan, said, “the question
of right to strike — whether fundamental, statutory or equitable moral right to strike —
in our view, no such right exists with the government employee.”

2. Right to Strike is not a Fundamental Right

In the case of Kameswar Prasad v. State of Bihar where Rule 4A of the Bihar
Government Servants’ Conduct Rules, 1956, which prohibits ‘any form of
demonstrations’ for the redress of the grievances of Government servants was contented
to be violative of the fundamental rights guaranteed to them under Art. 19(1) (a) and
(b) of the Constitution of India and should, therefore, be struck down by the petitioners.
But the court observed that ‘The rule in so far as it prohibits a strike cannot be struck
down since there is no fundamental right to resort to a strike.”

3. Forming Labour Unions or Associations is a Fundamental Right but strike is not.

In All India Bank Employees’ Association v. National Industrial Tribunal , the Court
specifically held that even very liberal interpretation of sub-clause (c)of clause (1) of
Article 19 cannot lead to the conclusion that trade unions have a guaranteed right to an
effective collective bargaining or to strike, either as part of collective bargaining or
otherwise. Thus, there is a guaranteed fundamental right to form association or Labour
unions but there is no fundamental right to go on strike. Under the Industrial Dispute
Act, 1947 the ground and conditions are laid down for the legal strike and if those
provisions and conditions are not fulfilled then the strike will be illegal.

4. Doctors have no right to deny medical treatment on grounds of strike

In a very recent case of Moti Lal Yadav v. State of UP, the court held that doctors
have no right to deny medical treatment/ administration of medicines, care to ailing
people on the ground that they are on a strike or any of its different terminology like
protest, abstention etc. having effect of denying medical treatment/ administration of
medicines, care to ailing people.

Case: The Supreme Court in Delhi Police v. Union of India (1986) upheld the
restrictions to form association by the members of the non-gazetted police force after
the Police Forces (Restriction of Rights) Act, 1966, and the Rules as amended by
Amendment Rules, 1970, came into effect.

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STRIKES AND LOCKOUTS UNDER INDUSTRIAL DISPUTES ACT 1947

❖ Meaning and Definition of Lock-outs

The term “lock” here means ‘not a permanent fixture that remains closed or open at all
times’, while the word “out” in this context refers to ‘the temporary exclusion of
employees and management from the establishment until the issues get resolved’,
which leads to the declaration of a lockout.

As described above, a lockout is a tool by which the employer fulfils his demands from
the employees who are already working for and under him. He makes his demands
agreed upon by using various methods that pressurise the workers to agree to his
demands related to their employment with the employer. Thus, it means there is an
element of demand for which the place of employment is locked out or closed.
However, the employer needs to have the intention to re-employ the workers if they
accept the demands. These lockouts are the last resort available to the employer after
conciliation measures have been deemed unfruitful.

Although declaring lockouts is not illegal, but conducting them without complying with
the legal formalities and regulations could be deemed illegal. Also, not in every
circumstance can a lockout be made, such as where a company closes down its business
and terminates the service of its workmen; or where there is retrenchment of some
workmen on the ground of rationalization of work; or when there is refusal by an
employer to allow latecomers on a day to work on that day, etc. In all these cases, there
is no need to conduct a lockout in the industrial establishment.

Under Section 2(l) of the Industrial Dispute Act, 1947, the term ‘lockout’ is defined,
and according to this definition, it 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”.

❖ The reasons of Lock-outs


There is no exhaustive list under which all the reasons can be declared are mentioned. Although
the main reasons that are common for declaring a lockout are mentioned below:
• Labour disputes occurring between workers and employers in regard to terms of
employment.
• General disputes occurring between workers which leads to interruptions in work.
• In response to illegal strikes, continuous strikes, or regular strikes by the employees or
their union.
• In regard to the economic and strategic reasons of the employer.
• To deal with financial losses by reducing its liability for paying wages and cost savings.
• To deal with external environmental disturbances that occurred due to unstable
government decisions.
• Lack of trust, peace, and harmony between employers and employees.

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STRIKES AND LOCKOUTS UNDER INDUSTRIAL DISPUTES ACT 1947

❖ Procedure of lockouts
Although there is no definite procedure in itself regarding lockouts, the procedure for it can
vary depending on the country and its labour laws. But there are some general steps that can
be followed that can lower the chances of declaring a lockout illegal or unlawful. They are as
follows:
✓ Issue of notice or notification
✓ Application for conciliation
✓ Prohibition on declaring a lockout during conciliation
✓ Waiting period
✓ Declaration of lockout
✓ Information to authorities
✓ Penalties for illegal lockouts
✓ Resuming work

❖ Effects of Lock-outs

• Effects of legal lockouts on industries:


✓ Speedy completion of the work
✓ Financial impact
✓ Strategic impact
✓ Operational disruptions and loss of market share
✓ Disruptions in the supply chain
✓ Loss of intellectual capital
✓ Hampering of Employee morale
✓ Employee recruitment and retention chances
✓ Reputation risk
✓ Legal and regulatory risks etc.

• Effects of legal lockouts on workmen:


✓ financial loss & financial stress
✓ Emotional stress & low morale
✓ Impact on family & health.
✓ Impact on career progression
✓ Division & Strain
✓ Potential legal action.

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STRIKES AND LOCKOUTS UNDER INDUSTRIAL DISPUTES ACT 1947

❖ Legal Status
Prohibition of strikes and lockouts
Section 22 of the Act explains the conditions that are to be complied with by an employer
before conducting a lockout, in the case of any public utility service, or else there could be no
lockout.
Firstly, a notice of lockout is to be provided to the workmen in the prescribed manner, and
within six weeks of such notice, the lockout is to be made; or a lockout is to be conducted only
after 14 days of giving the prescribed notice. If a strike is already in existence, then in that
situation there is no need to give a notice of lockout, but an intimation is required to be sent to
the specified authority specified by the appropriate government.
Also, no lockout can be made during the pendency of any conciliation proceedings before a
conciliation officer and seven days after the end of such proceedings. Also, if on any day, the
employer gives to any person employed by him the prescribed notice of lockout, then he shall
report the number of notices provided to the appropriate government within five days of
providing such notice.
A declaration of a lockout leaves the workers unemployed and creates an environment of
instability. This has political ramifications and is often exploited by political institutions to their
advantage. Hence, in the case of a lockout, the government pressure on management to allow
production would be much more than the government pressure on union to resume work in
case of a strike.
Prohibition of financial aid to illegal lockouts
As per Section 25 of this Act, a person is prohibited from knowingly expending or supplying
any money that will be used in direct support of an illegal lockout.
Penalty for illegal lockouts
Section 26 of this Act provides a penalty of imprisonment, which may extend to one month or
a fine of Rs. 1000 or both, on the employer who would commence, continue, or otherwise act
in furtherance of a lockout that is declared illegal under this Act.
Penalty for instigation, etc.
Section 27 of this Act provides a penalty of imprisonment, which may extend to six months, or
a fine of Rs. 1000, or both, against any person who instigates or incites others to take part in or
otherwise act in furtherance of a lockout that is declared illegal under this Act.
Penalty for giving financial aid to illegal lockouts
Section 28 of the Act provides a penalty for the act, which is prohibited under Section 25 of
the same Act. Thus, any person who knowingly supplies money that would be used in direct
support of an illegal lockout would be punished for imprisonment which would extend up to 6
months or with fine of Rs. 1000 or with both.

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STRIKES AND LOCKOUTS UNDER INDUSTRIAL DISPUTES ACT 1947

❖ Case laws related to Lock-outs


1. In Sri Ramchandra Spinning Mills v/s State of Madras the Madras High Court read the
deleted portion in the definition to interpret the term lock-out. According to the Court, a flood
may have swept away the factory, a fire may have gutted the premises; a convulsion of nature
may have sucked the whole place under ground; still if the place of employment is closed or
the work is Suspended or the Employer refuses to continue to employ his previous workers,
there would be a lock out and the Employer would find himself exposed to the penalties laid
down in the Act. Obviously, it shows that the present definition does not convey the concept of
the term lockout.
2. Kingfisher Airlines: Kingfisher airlines of India went into losses amounts of 8,000 crores
due to failure in meeting competition in the aviation industry eventually had not paid salaries
to its employees for a period of six months which led to agitation among employees eventually
resorted for strike. With the loss of Rs. 8,000 crores by Kingfisher airlines additionally got a
burden of another Rs. 7,000 crores hence declare partial lockout by its top officials on 1st
September 2012.
3. In the Case General Labour Union (Red Flag) v/s B. V. Chavan And Others on 16
November, 1984 Supreme Court of India expressed Imposing and continuing a lockout deemed
to be illegal under the Act is an unfair labour practice.
4. Cera Sanitaryware Limited v. State of Gujarat (2022)
5. Bangalore Water Supply v. A. Rajappa (1987)
6. Lakshmi Das Sugar Mills Ltd. v. Pt. Ram Sarup. (1956).

❖ Conclusion
Both strikes and lockouts in labour laws are an integral part of collective bargaining in any
industrial establishment and should be considered the remedy of last resort. Analysing the
multifaceted nature of lockouts reveals their impact on workplace dynamics, labour
negotiations, and the broader socio-economic landscape.

In response to the labour disputes that occur between employers and employees, lockouts have
proved to be a useful tool to negotiate and protect business interests. No doubt, from the
standpoint of the employees, it is a tool which leads to loss of livelihood, causes financial strain
and fosters a sense of instability, but if seen from the employer’s point of view, then it is an
essential tool as if he wants to bring some important changes in the industry and the workers
are not cooperating, then he can use this tool to get his work accomplished. As labour laws
continue to evolve, the understanding and regulation of lockouts must balance the rights and
responsibilities of both parties. Proper studies must be made so that fair, equal, and sustainable
labour relations prevail in an ever-changing work landscape.

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STRIKES AND LOCKOUTS UNDER INDUSTRIAL DISPUTES ACT 1947

❖ Bibliograghy

1. Strikes and Lockouts-A Contemporary Analysis.


https://www.legalserviceindia.com/legal/article-2083-strikes-and-
lockouts-acontemporary-analysis.html
2. Indian Working Class Celebrates A Hundred Years of its First
Strike.
https://archive.cpiml.org/liberation/year_2008/april/working_class_
hundred_ years.html
3. Post, G. (2024, January 22). Lockout in labour law - iPleaders. iPleaders.

https://blog.ipleaders.in/need-know-strikes-

lockouts/#:~:text=Under%20Section%202(l)%20of,of%20persons%20employ

ed%20by%20him%E2%80%9D

4. Strike and Lock-Out under Industrial Dispute Act 1947. (n.d.).

https://www.legalserviceindia.com/legal/article-12602-strike-and-lock-out-

under-industrial-dispute-act-1947.html

5. Kumar, R. (2024, January 22). Right to strike under Industrial Dispute Act,

1947 - iPleaders. iPleaders. https://blog.ipleaders.in/right-to-strike-under-

industrial-dispute-act-

1947/#:~:text=For%20strike%2C%20the%20Industrial%20Dispute,to%20wor

k%20or%20to%20accept

6. Lockout (Factory or Industry) l Definition of Lockout l Reasons - Procudure

of lockouts. (n.d.). https://www.whatishumanresource.com/lockouts

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STRIKES AND LOCKOUTS UNDER INDUSTRIAL DISPUTES ACT 1947

BIBLIOGRAPHY

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