UNIVERSITY INSTITUTE OF LAWS

PANJAB UNIVERSITY REGIONAL CENTRE, LUDHIANA

SUBJECT: LABOUR LAW

TOPIC: CONCEPT OF INDUSTRY, STRIKE AND LAYOUT

SUBMITTED BY: SUBMITTED TO:

ABHISHEK ADV.RENU SHARMA

ROLLNO.66/20
 ACKNOWLEDGEMENT
I would like to express my special thanks of gratitude to my teacher Adv. Renu
Sharma who gaves me golden opportunity to do this project on the topic of
CONCEPT OF INDUSTRY, STRIKE, LAYOUT with the case BANGALORE WATER
SUPPLY VS. A.RAJAPPA AND OTHERS 1978.

Secondly, I would also like to thanks my parents and friends who helped me a lot
in finalizing this project within limited time period.

Abhishek

Rollno.66/20
 CONCEPT OF INDUSTRY
The word industry has an important place in the industrial dispute act 1947. It is
the industry in which industrial dispute arises. The industrial dispute act cannot
be thought without the industry.

Definition and meaning:

Section 2(j) of the industrial dispute act 1947 deals with the definition of industry
according to this definition---

"Industry means any business, trade, undertaking, manufacture or calling of

employers and includes any calling, service, employment, handicraft or industrial
occupation or avocation of workmen."

The definition of industry can be divided into two parts:

Firstly any business, trade, undertaking, or calling of the employers and

Secondly it includes any calling, service, employment, handicraft or industrial

occupation or avocation of workmen.

Case law:

1.Management of Safdergung Hospital v/s Kuldeep singh AIR 1970 SC

The SC held that it is not proper to divide the definition of industry into two parts.
It is shown from reading the definitions a whole that an industry is a collective
organization in which both employer and workmen are included. It existence is
not merely by employer only nor by workmen only.

2.Workmen of I.S. Institution v/s I.S Institution AIR 1976

It was said that industry is conducted by a collective effort of both employer and
workmen. Industry only comes in existence when there is cooperation between
employer and workmen and which results in any business, trade, undertaking,
manufacture or calling of employers and any calling, service, employment,
handicraft, or industrial occupation or a vocation of workmen.
Principles of determining nature of industry

Whether any institution is industry or not the principle regarding this

determination has been propounded from time to time by the courts in their
following judgment:

Case law:

1.State of Bombay v/s Bombay Hospital Mazdoor sabha AIR 1960 SC

SC judges P.B Gajendra and Gadkar had propounded following principal:

Any activity which in a well organized way or regular form is conducted for the
production of goods or its distribution of goods or to support the workmen for
the service of any where community or its any particulars class is an undertaking.
In simple way term industry can be following:

Such activity which has the support of both employer and workman.

 Its object is always to satisfy human physical requirements.

 It is organized in the same way as a business.
 It is not only for personal interest or satisfaction.

Thus the method by which any work is performed, together with conditions of
mutual cooperation between employee and workmen and objects of physical
service.

2.Nazia bibi v/s Public service commission 1983

It was held by the court that PSC is not an industry because its main function is to
select the candidate for the different post and no goods or services are produced
and distributed there.
Workman:

Workman is the base of the industry. Industry can neither be established or

maintained without the workman. It is the workman who provides labour to the
industry. It is the reason that workman has been given special place in the
industrial dispute act. The definition of workman is important because the act
aims at investigation and settlement of industrial dispute which implies a
difference between an employer and workmen. So it is very necessary to decide
who is a workman or employees.

Definition:

Section 2(S) of the industrial dispute act 1947, workman means any person
employed in any industry to do any manual, unskilled, skilled, technical,
operational, clerical, supervisory work for heir or reward whether the term of the
employment be expressed or implied and for the purpose of any proceeding
under this act in relation to an industrial dispute including any such person who
has been dismissed, discharged or retrenched in connection with or as
consequences of that dispute or whose dismissal, discharge or retrenchment has
led to the dispute.

Above definition of workman shows following symptoms:

 A workman must be employed in an industry

 Employment for heir or reward
 There shall be some consideration
 Nature of work performed by such person may be manual, skilled,
unskilled, technical, operational, clerical or supervisory.
 Industry in which workman is employed shall be an industry as definition in
section 2(J) of IDA 1947
 The section 2(a) of the IDA 1947 clearly mention that the terms of the
employment may be expressed/ implied.
 CONCEPT OF 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.

A strike is illegal if it:

 Violates the Contract of Employment.

 Occurs in Public Utility Services.
 Doesn’t follow the notice requirement of Section 22(1).
 Begins during an Award or settlement period.
 Begins during or within 7 days of completing Conciliation Proceedings.
 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 occur because of the following reasons:

 Dissatisfaction with company policy.

 Salary and incentive problems.
 Increment not up to the mark.
 Wrongful discharge or dismissal of workmen.
 Withdrawal of any concession or privilege.
 Hours of work and rest intervals.
 Leaves with wages and holidays.
 Bonus, profit sharing, Provident fund and gratuity.

Kind of strike

 General Strike: It means a strike by members of all or most of the unions in

a region or an industry. It may be a strike of all the workers in a particular
region of industry to force demands common to all the workers. These
strikes are usually intended to create political pressure on the ruling
government, rather than on any one employer. It may also be an extension
of the sympathetic strike to express generalized protest by the workers.

 Sit down Strike: In this case, workers do not absent themselves from their
place of work when they are on strike. They keep control over production
facilities. But do not work. Such a strike is also known as 'pen down' or 'tool
down strike. Workers show up to their place of employment, but they
refuse to work. They also refuse to leave, which makes it very difficult for
employer to defy the union and take the workers' places. In June 1998, all
the Municipal Corporation employees in Punjab observed a pen down
strike to protest against the non-acceptance of their demands by the state
government.
  Slow Down Strike: Go-slow is yet another form of industrial protest in which
workmen do not stop the work but deliberately slow-down the process of
production in order to cause loss of production to the employer. It must be
noted that there is no cessation of work at all, and in fact, workmen
pretend themselves as engaged in doing their work.

In Sasa Musa Sugar Works (P) Ltd. v. Shobrati Khan, the Supreme Court held that
go-slow is not considered as strike within the ambit of Section 2(q), but it is a
serious misconduct on part of the workmen. Mr. V.V. Giri, described go-slow as
"enemy number one" of the workmen as it ultimately causes damage to their
means of livelihood, apart from causing harm to the employer. Indian Courts have
also taken a serious view on the go-slow and refused to interfere with the
punishment inflicted by the employer for this misconduct, so that the coward
practice could be discouraged.

Procedure Of Strikes In India:

Proposal to go on strike should be intimated to management by way of prior

notice that is 14 days stipulated time period should be given to the management
to respond or react so as to avoid strike. During this 14 days time no workmen
should go on strike. Only after expiry of the that 14 days and management fails to
respond or resolve issues within that 14 days, workers can go on strike on fixed
date by giving notice of strike. Such strike should be done before the expiry of
those six weeks only.

Result of illegal strike

 Illegal strike has following results:

1. Penalty for illegal strikes and lock-outs

Any workman, who commences, continues or otherwise acts in furtherance of, a

strike which is illegal under this Act shall be punishable with imprisonment for a
term which may extend to one month, or with fine which may extend to fifty
rupees, or with both.

Any employer, who commences, continues, or otherwise acts in furtherance of a

lock-out which is illegal under this Act, shall be punishable with imprisonment for
a term which may extend to one month, or with fine which may extend to one
thousand rupees, or with both.

2.Wages

Workmen participating in illegal strike shall not be entitled to wages. Supreme

Court held that workmen shall be entitled to wages for the period of stike only
when the strike is valid and legal.

3.Dismissal

The workmen participating in illegal strike can be dismissed or discharged. The

workman can be reappointed ofter the termination of strike. It shall be depend
upon the facts. Previous conduct of workmen shall be considered before
dismissing for illegal strike.
 CONCEPT OF LOCKOUT

Lockout of any factory or industry is governed by the law called the Industrial
Disputes Act 1947. According to section 22 of this Act, lockout of factory or
industry must be done only after issuing prior notice to concern employees. If not,
such lockout shall be treated as illegal lockout and concerned factory or industry
shall be penalised according to the Industrial Disputes Act 1947.

A lockout is a work stoppage in which an employer prevents employees from

working. It is declared by employers to put pressure on their workers to come to
their way by consensus about settlement of issued lead to lockout. This is
different from a strike, in which employees refuse to work. Thus, a lockout is
employers' weapon while a strike is raised on part of employees. According to
[section 2(1)] of Industrial Disputes Act 1947, lock-out 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.

Meaning and definition:

According to Industrial Disputes Act 1947,Lockout [Sec. 2(1)]:

 Lockout 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". Lockout is the antithesis of
strike.
 It is a weapon of the employer while strike is a weapon in the hands of
workers.
 General Labour Union (Red Flag) v/s B. V. Chavan And Ors on 16 November
1984, the Supreme Court of India expressed, "Imposing and continuing a
lockout deemed to be illegal under the Act is an unfair labor practice."
 The Reasons Behind The Lockouts:

 Disputes or clashes in between workers and the management.

 Unrest disputes or clashes in between workers and workers.
 Illegal strikes, regular strikes or continuous strikes by workers may lead to
lockout of factory or industry.
 External environmental disturbance due to unstable governments may lead
to lockouts of factories or industries.
 Continuous or accumulated financial losses of factory or industry may lead
to opt lockout by the management.
 Maybe lockout if any company involves in any fraudulent or illegal
activities.
 Failure in maintaining proper industrial relations, industrial peace, and
harmony.
 Lockout of the factory is regarded as a major issue which affects both
management of the factory and their employees. Management should
always monitor employee's behavior and relationship between employees
and relationship in between management and employees to avoid disputes
which leads to lockouts.

CASE LAW:

 Management Of Kairbetta v/s Rajamanickam And Others on 24 March,

1960 :

Supreme Court of India court observed as follows:

"Just as a strike is a weapon available to the employees for enforcing their

industrial demands, a lockout is a weapon available to the employer to persuade
by a coercive process the employees to see his point of view and to accept his
demands”.
Procedure of Lockouts:

According to Sec. 22(2), no person employed in a public utility service shall go on

lockout in breach of contract:

 without giving to the employer notice of Lockout, as hereinafter provided,

within six weeks before lockout; or
 within fourteen days of giving such notice; or
 before the expiry of the date of lockout specified in any such notice as
aforesaid; or
 during the pendency of any conciliation proceedings before a conciliation
officer and seven days after the conclusion of such proceedings.

Prohibition of strikes and lock- outs [Section 23] of The Industrial Disputes Act,
1947:

 No workman who is employed in any industrial establishment shall go on

strike in breach of contract and no employer of any such workman shall
declare a lock-out:
 during the pendency of conciliation proceedings before a Board and seven
days after the conclusion of such proceedings;
 during the pendency of proceedings before a Labour Court, Tribunal or
National Tribunal] and two months after the conclusion of such
proceedings;
 during the pendency of arbitration proceedings before an arbitrator and
two months after the conclusion of such proceedings, where a notification
has been issued under sub- section (3A) of section 10A; or] [10A. Voluntary
reference of disputes to arbitration]
 During any period in which a settlement or award is in operation, in respect
of any of the matters covered by the settlement or award.

Penalty for illegal strikes and lock-outs. [Section 26] of the Industrial Dispute Act
1947.
Penalty for illegal strikes and lock-outs:

 Any workman who commences continues or otherwise acts in furtherance

of, a strike which is illegal under this Act, shall be punishable with
imprisonment for a term which may extend to one month, or with fine
which may extend to fifty rupees, or with both.

 Any employer who commences continues, or otherwise acts in furtherance

of a lock-out which is illegal under this Act, shall be punishable with
imprisonment for a term which may extend to one month, or with fine
which may extend to one thousand rupees, or with both.

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 .
CASE LAW:

Bangalore Water Supply & Sewerage Board v. A. Rajappa AIR 1978 SC

FACTS:

A.Rajappa was an employee of the Bangalore Water Supply and Sewerage Board.
There was an existing dispute between the Board and their employees. It was a
labour dispute.

The reason behind the dispute was that the Bangalore Water Supply Board
imposed fines on the employees, on account of misconduct by the employees.
Here, the imposed fine was highly unreasonable and unfair. Therefore, the
employees decided to take action against such a heavy fine.

The suit was filed against the Board on such injustice, under Section 33 (2) of the
Industrial Dispute Act, 1947 and contended that the fine was against the principle
of "natural justice".

JUDGEMENT:

The Supreme Court of India held that for the definition of the term "industry" and
to make any establishment liable under the definition of the word "industry", a
test should be considered.

The test was named as the "Triple-Test", carrying certain conditions to be satisfied
and proved to declare any establishment under the definition as mentioned in
Section 2 (j) of the Industrial Dispute Act, 1947.

The conditions, given under the "triple test" are as follows:

 There should be an establishment of a systematic activity.

 The systematic activity should be between the employee and the employer
in the establishment.
 The activity should give the output resulting out from production of goods,
or, distribution of goods, or, the catering of services (not being religious or
spiritual in nature, exception - prasad making established.
 CONCLUSION
Industry is the most important part for working in present era. If there is an
Industry than obviously there must be strikes and lockout because of several
reasons. Strike and lockout, both are powerful tools in the realm of labour
relations, each serving as a means for employees and employers to assert their
interests and leverage negotiations. While both actions disrupt workplace
operations, they differ fundamentally in their initiation, purpose and legal
implications.

The difference between strikes and lockouts is not merely procedural; they
represent a fundamental distinction in perspective. Strikes embody the collective
will of workers, seeking to balance the scales of power in the workplace.
Lockouts, conversely, reflect the employer’s exercise of authority, often with the
aim of achieving a favourable outcome in negotiations.