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Strike and Lockout

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Strike and Lockout

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shivamanoj86
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STRIKE

Definition of Strike
Section 2(q) of the Industrial Disputes Act, 1947 defines a strike as “a group of workers in an industry
stopping work together, or a joint refusal by any number of workers, who are or have been employed, to
continue working or accept employment.”

Essentials of a Strike
According to this definition, a strike must include the following:

 In State of Bihar vs. Deodas Jha (AIR 1958, Pat. 51), it was decided that the duration of a strike
doesn’t affect its definition; even a short stoppage or refusal to work can be considered a strike.
 In Kameswar Prasad vs. State of Bihar (AIR 1962, SC 1166), the Supreme Court clarified that the
right to strike is not a fundamental right. Instead, it’s a means for workers to express their
grievances to employers and seek resolution.

A strike is illegal if it:


1. Violates the Contract of Employment.
2. Occurs in Public Utility Services.
3. Doesn’t follow the notice requirement of Section 22(1).
4. Begins during an Award or settlement period.
5. Begins during or within 7 days of completing Conciliation Proceedings.
6. Begins during or within Two months of completing Adjudication Proceedings.

Is Strike a Fundamental Right?


Although the Constitution guarantees the right to form a union and the right to freedom of speech and
expression under Articles 19(1)(c) and 19(1)(a), respectively, the right to strike is not derived from these
provisions. However, peaceful demonstrations are permitted.

Causes of Strikes
Strikes can be caused by a variety of factors, including:

1. Wages and benefits: One of the most common causes of strikes is disputes over wages and
benefits. Workers may feel that their current pay and benefits are not sufficient or fair and may
demand better compensation.

2. Working conditions: Poor working conditions, such as unsafe or unhealthy working


environments, excessive workloads, or lack of job security, can also lead to strikes. Workers may
refuse to work until these conditions are improved.

3. Contract negotiations: Strikes can also occur during contract negotiations between workers and
employers, particularly if the two sides are unable to come to an agreement on key issues.

4. Unfair labor practices: Unfair labor practices by employers, such as discrimination, harassment,
or retaliation against workers who are attempting to organize or unionize, can also lead to strikes.
5. Political issues: Strikes can sometimes be driven by political issues, such as opposition to
government policies or social injustice.

6. Solidarity with other workers: Workers in one industry or company may go on strike to show
solidarity with workers in another industry or company who are also on strike.

Overall, strikes are often a last resort for workers who feel that their concerns are not being heard or
addressed by their employers and can be a powerful tool for bringing about change in the workplace.

Types of Strikes
Strikes are a form of collective action taken by a group of workers to protest against unfavorable working
conditions or to demand better pay, benefits, or other workplace rights. Here are some of the most
common types of strikes:

1. Sit-down Strike: This type of strike involves workers occupying the workplace premises, usually
the factory or office, and refusing to work until their demands are met. Workers often barricade
themselves inside the workplace, preventing management from accessing the premises.

2. Slowdown Strike: Also known as a work-to-rule strike, this involves workers doing only the
minimum amount of work required by their job description. Workers may follow all the rules and
regulations to the letter but may not go above and beyond their duties until their demands are met.

3. Wildcat Strike: This is a spontaneous and unauthorized strike that occurs without the approval of
the union leadership. These strikes often arise due to workers’ frustration with the lack of
progress in collective bargaining negotiations or the union’s perceived lack of action on their
grievances.

4. Sympathy Strike: This type of strike is taken by workers in support of another group of workers
who are striking for their own demands. Workers may go on strike to show solidarity with
another union or group of workers.

5. General Strike: This is a strike that involves workers across all industries and sectors of the
economy. The purpose of a general strike is to shut down all economic activity in the country to
pressure the government or employers to meet the workers’ demands.

6. One-Day Strike: Also known as a “warning strike,” this is a short-term strike that lasts only a day
or a few hours. The purpose of this type of strike is to send a message to management and show
the workers’ determination to achieve their goals.

7. Lockout: This is a strike initiated by management rather than workers. In a lockout, management
prevents workers from entering the workplace until the workers agree to management’s demands.

Legal Provisions of Strike in India


In India, the right to strike is recognized as a fundamental right under Article 19(1)(c) of the Constitution
of India, which guarantees to all citizens the right to form associations or unions. However, this right is
not absolute and is subject to certain reasonable restrictions.

The legal provisions regarding strikes in India are primarily governed by two main pieces of legislation,
namely, the Industrial Disputes Act, 1947, and the Trade Unions Act, 1926.
Some of the key provisions of the IDA related to strikes are as follows:
a. Notice of Strike: A notice of strike must be given to the employer or the conciliation officer at least 14
days before the proposed strike. The notice must state the reasons for the proposed strike, the number of
workers likely to participate in the strike, and the period of the strike.
b. Prohibition of Strike: A strike is prohibited during the pendency of conciliation proceedings and the
award or settlement arrived at in the course of such proceedings. A strike is also prohibited during the
period when a reference is pending before a Labor Court, Tribunal, or National Tribunal.
c. Illegal Strikes: A strike is considered illegal if it is commenced without giving the required notice or
during the pendency of conciliation proceedings, arbitration proceedings, or reference before a Labor
Court, Tribunal, or National Tribunal. An illegal strike is not protected by law, and the workers
participating in such a strike may face disciplinary action.
d. Retrenchment during Strike: An employer is prohibited from retrenching any worker during the period
of a strike if such retrenchment is connected with the strike.

Trade Unions Act, 1926:

The Trade Unions Act, 1926 (TUA) provides for the registration of trade unions and confers certain rights
and immunities on registered trade unions. Some of the key provisions of the TUA related to strikes are as
follows:

a. Legal Status of Registered Trade Unions: A registered trade union is a legal entity, and its office
bearers are entitled to certain immunities, including immunity from civil suit in certain circumstances.

b. Right to Strike: Registered trade unions have the right to strike subject to the provisions of the IDA.
However, the right to strike is not absolute, and a strike can only be called if the majority of the members
of the trade union have voted in favor of the strike.

The procedure of strikes in India


The procedure for calling a strike in India is governed by the Industrial Disputes Act, 1947. The Act
provides for certain procedures and conditions that must be fulfilled before a strike can be called. Below
is the step-by-step procedure for calling a strike in India:

1. Negotiations and Conciliation: Before calling a strike, the workers’ union or association must
make efforts to negotiate with the employer and resolve the dispute amicably. If negotiations fail,
the union or association can approach the conciliation officer appointed by the government to
resolve the dispute.

2. Issue Notice of Strike: If the conciliation proceedings fail, the workers’ union or association can
issue a notice of strike to the employer or the conciliation officer at least 14 days before the
proposed strike. The notice must state the reasons for the proposed strike, the number of workers
likely to participate in the strike, and the period of the strike.

3. Prohibition of Strike: A strike is prohibited during the pendency of conciliation proceedings and
the award or settlement arrived at in the course of such proceedings. A strike is also prohibited
during the period when a reference is pending before a Labor Court, Tribunal, or National
Tribunal.

4. Conduct Secret Ballot: If the proposed strike is to be held in an industry where there are more
than 100 workers, a secret ballot must be conducted among the workers to decide whether to
proceed with the strike. The ballot must be conducted under the supervision of a government-
appointed officer.

5. Intimation of Strike: If the majority of the workers vote in favor of the strike, the workers’ union
or association must intimate the employer and the government authorities at least seven days
before the proposed strike. The intimation must state the date on which the strike will commence,
the reasons for the strike, and the number of workers likely to participate in the strike.

6. Strike Action: On the specified date, the workers must cease work, and the strike begins. During
the strike, the workers must not indulge in any violent or illegal activity. The workers are also not
allowed to prevent any other worker from attending work.

LOCKOUT
Definition of Lockout
Section 2(I) of The Industrial Disputes Act, 1947 defines a lockout as the “temporary closure of a
workplace, the suspension of work, or an employer’s refusal to continue employing any number of
workers during their period of employment.” A lockout is when an employer temporarily closes a
workplace or stops work. It’s different from permanently closing a business. Before 1860, a lockout was
referred to as a “turn-off.” A lockout serves as the employer’s counterpart to a strike.

Essentials of a Lockout
To constitute a lockout in labour law, the following conditions must be met:
 Temporary closure of the workplace by the employer or the suspension of work by the employer or the
employer’s refusal to continue employing any number of workers.
 These actions should be motivated by coercion.
 It should relate to an industry as defined in the Act.
 There should be a dispute in the industry.

Legal Status of Lockout


A lockout declared in violation of Section 10(3), Section 10A(4A) (i.e., declaring a lockout when an
industrial dispute has been referred) is considered illegal. Additionally, a lockout declared without
complying with Section 22 and 23 (i.e., issuing a notice before the lockout) is illegal (Section 24(1)).
However, a lockout declared in response to an illegal strike is considered legal (Section 24(3)). A legal
lockout can become a powerful tool for an employer in critical situations.
Section 2(1) defines the term “lockout.” However, the current definition is incomplete. The term was
originally and correctly defined in the Trade Dispute Act, 1929. The present Act has adopted the current
definition from the Trade Dispute Act but has omitted the words “when such closure, suspension, or
refusal occurs as a result of a dispute and is intended to compel those persons or to assist another
employer in compelling persons employed by him to accept terms or conditions of, or affecting
employment.”
In the case of General Labour Union (Red Flag) v/s B. V. Chavan And Ors on 16 November 1984, the
Supreme Court of India ruled that imposing and continuing a lockout that is deemed illegal under the Act
is an unfair labour practice.
In Sri Ramchandra Spinning Mills v/s State of Madras, the Madras High Court included the deleted
portion in the definition to interpret the term “lockout.” According to the Court, even if a flood, fire, or
natural disaster causes the closure of the workplace or the suspension of work or the employer refuses to
continue employing previous workers, it would still be considered a lockout, subjecting the employer to
penalties under the Act. This demonstrates that the current definition does not fully convey the concept of
a lockout.

Lockout, When Legal


The Act treats strike and lockout on the same basis, treating one as the counterpart of the other. Therefore,
the provisions of the Act that prohibit strikes also prohibit lockouts.
The reasons for banning or prohibiting lockouts are the same as those for banning or prohibiting strikes.
This is because employers and employees are not discriminated against in their respective rights in the
field of industrial relations between the two. As such, a lockout, if not in conflict with Section 22 and 23,
may be considered legal or not legal. Sections 24(1)(iii), 10(3) and 10A(4A) similarly govern lockouts.
A lockout in response to an illegal strike is not deemed illegal. However, if a lockout is illegal, Section
26(2), 27 and 28 come into play to address the situation. The Act does not provide specific guidelines for
settling claims arising from illegal lockouts. Courts have adopted the approach of assigning blame
between the employer and employees. This once again highlights the concept of the justifiability of a
lockout.

The Difference Between Strike and Lockout


Initiators of the Actions
One of the most critical difference between strike and lockout lies in who initiates these actions. A strike
is typically initiated by employees or labour unions representing them. Employees collectively cease
work or jointly refuse to continue working to address grievances, advocate for better working conditions,
or assert their labour rights. This collective action represents the workers’ unified stance in the workplace.
In contrast, a lockout is initiated by employers. Employers use lockouts as a strategic move to gain an
advantage during labour disputes or negotiations. Lockouts involve the temporary closure of the
workplace, the suspension of work, or the refusal to continue employing a group of workers. Employers
employ this tool with the intention of pressuring employees to accept specific terms or conditions.
Lockouts reflect the exercise of authority by management.
Purpose of the Actions
The difference between strike and lockout also extends to their underlying purposes:
Strikes are initiated to address grievances or disputes related to wages, benefits, working conditions, or
other employment terms. Employees strike with the goal of compelling their employer to address these
issues, advocating for fairness and justice in the workplace.
Lockouts, on the other hand, are strategically employed by employers to gain an upper hand in labour
negotiations. The purpose of a lockout is to pressure employees into accepting the employer’s terms,
often with the aim of achieving a more favourable outcome in negotiations. Lockouts are a means for
employers to assert their stance and protect their interests.
Duration and Temporary Nature
Both strikes and lockouts are temporary in nature, but their impacts differ:
Strikes involve a temporary cessation of work by employees. During a strike, employees may engage in
activities such as picketing or other forms of protest to convey their message. However, the intent is not
to permanently shut down the workplace but to achieve specific goals or concessions.
Lockouts, similarly temporary, entail the temporary closure of the workplace or the suspension of work.
Employers employ lockouts as a short-term measure to disrupt employees’ activities and pressure them to
accept certain terms or conditions. The workplace closure during a lockout is not permanent.
Collective vs. Employer-Centric Action
The nature of strike and lockout underscores the collective versus employer-centric dynamics:
Strikes represent collective actions by employees, demonstrating solidarity and unity among workers.
Strikes underscore the power of employees when they come together to advocate for their rights and
interests.
Legal Implications of Strike and Lockout in Labour Law
Both strikes and lockouts are subject to legal regulations, but their legality is contingent on different
criteria:
Strikes are subject to legal regulations governing their conduct. Violations of these regulations can lead to
strikes being declared illegal, making workers vulnerable to penalties or consequences.
Lockouts, too, are subject to legal oversight. Employers must adhere to legal requirements when imposing
lockouts and violations of these requirements can result in lockouts being declared illegal.

Strike vs Lockout
Here’s a table summarising the key difference between strike and lockout:

Aspect Strikes Lockouts

Employees or labour unions


Initiator Employers initiate
initiate

Pressure employer to address Pressure employees to accept employer’s


Purpose
grievances or demands terms

Temporary workplace closure, not a


Duration Temporary cessation of work
permanent shutdown

Collective
Collective action by employees Employer-centric action
Action

Labour disputes, often related to


Motivation Employee grievances
negotiations

Legal Subject to legal regulations;


Subject to legal regulations; violations can
Regulation violations can lead to legality
lead to legality challenges
s challenges

Laws on Strike and Lockout


General Restriction on Strike and Lockout (Section 23)
This rule applies to all industrial places, including public utility services. Workmen can’t strike against
their work contract and employers can’t impose a lockout as follows:
The difference between Section 22(1) and (2) and Section 23 is that in the former, a notice of strike or
lockout is required, but in the latter (Section 23), it isn’t needed.

Illegal Strike and Lockout (Section 24)


According to Section 24(1), a strike or lockout is considered illegal when:

Prohibition of Financial Support for Illegal Strike and Lockout (Section 25)
No one should knowingly provide money to support any illegal strike or lockout directly.

Penalties for Illegal Strikes or Lockouts (Sections 26-31)


Section 26 outlines penalties for both strike and lockout. However, before imposing a penalty under this
act, it must be proven beyond a reasonable doubt that:
In Madurantakam Co-op Sugar Mills vs. Vishwanathan, (2005) 3 SCC 193, an employer charged all
the workers who participated in an illegal strike with allegations of misconduct, instigation and
participation in an illegal strike. Some workers justified their actions, while others apologised. The
employer sent warning letters to those who apologised but didn’t fire them, whereas they fired those who
didn’t apologise. The apex court ruled that workers can’t be dismissed since they didn’t all stand on the
same footing and the same view can’t be applied.

In Mgmt. Oriental Tpt. Ltd vs. S. T. Ramkrishna, 2006I LLN 598, when workers in an establishment
went on strike and were referred to the adjudication tribunal at the intervention of authorities, they were
charged with using offensive language and violent acts. They were found guilty in a domestic inquiry and
then dismissed. The employer sought approval under section 33(2) of the act, but it was rejected by the
tribunal. Later, the high court of Karnataka held that the use of offensive language was not related to the
strikes or any connected matter. The application was rejected and remanded for fresh consideration.

Penalties for Instigation (Section 27)


Anyone who encourages, incites, or lures others to take part in illegal strikes or lockouts commits a crime
and can be punished with imprisonment for up to six months, a fine of up to one thousand rupees, or both.

Penalties for Providing Financial Aid to Illegal Strike and Lockout (Section 28)
Anyone who encourages, incites, or lures others to take part in illegal strikes or lockouts commits a crime
and can be punished with imprisonment for up to six months, a fine of up to one thousand rupees, or both.

Penalties for Other Offences (Section 31)


In Bharat Petroleum Corporation Ltd. vs. Petroleum Employee’s Union and Others, (2003) III
L.L.J.229(Mad), the High Court of Madras determined that parties to a contract were bound by
conciliation proceedings and had to await a decision. As the conciliation proceedings were ongoing, the
prohibition in Section 22(1)(d) of the Industrial Disputes Act, 1947 came into effect. Thus, the
respondent’s strike was considered illegal under Section 24.
The Supreme Court, in India General Navigation and Railway Company Ltd and Another vs. Their
Workmen (AIR 1960, SC 219), held that when there’s an illegal strike, the workers wouldn’t be entitled
to any wages or compensation and they could be subject to punishment through discharge or dismissal.

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