Labour Law
Labour Law
TABLE OF CONTENT
4 TYPES OF STRIKES 6
6 LEGAL STATUS 9
10 EFFECTS OF LOCK-OUTS 12
11 LEGAL STATUS 13
13 CONCLUSION 14
14 BIBLIOGRAGHY 15
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                     STRIKES AND LOCKOUTS UNDER INDUSTRIAL DISPUTES ACT 1947
❖ INTRODUCTION
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                     STRIKES AND LOCKOUTS UNDER INDUSTRIAL DISPUTES ACT 1947
   •   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
   •   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.
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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
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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
      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.”
      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.”
      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.
       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
       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”.
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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
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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
   ❖ 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
https://blog.ipleaders.in/need-know-strikes-
lockouts/#:~:text=Under%20Section%202(l)%20of,of%20persons%20employ
ed%20by%20him%E2%80%9D
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,
industrial-dispute-act-
1947/#:~:text=For%20strike%2C%20the%20Industrial%20Dispute,to%20wor
k%20or%20to%20accept
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STRIKES AND LOCKOUTS UNDER INDUSTRIAL DISPUTES ACT 1947
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STRIKES AND LOCKOUTS UNDER INDUSTRIAL DISPUTES ACT 1947
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STRIKES AND LOCKOUTS UNDER INDUSTRIAL DISPUTES ACT 1947
BIBLIOGRAPHY
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