Professional Documents
Culture Documents
Strike means a cassation 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 accept employment1.
On 14th November, 1152 BC, artisans of Royal Necropolis at Deir el-Medina (Modern day Egypt), under
the rule of Pharaoh Ramses III, walked off from their duty as they were supposedly not provided with
shelter and food. The Egyptians later gave in on their demands. This marked the first ever recorded event
in the history which can be termed as a "strike". Ever since then, the industries have seen numerous
violent, non-violent, stay-in, sympathetic, work-to-rules, tools-down, pens-down and many other forms of
strikes. Strikes and lockouts are one of the most malignant tools in the weaponry of employees and
employers to get their demands fulfilled. Generally due to such events, the employees, the company, the
industry and the nation loses more than what might have been called for. Strikes cause an interruption in
normal work flow of a company, which not only hinders its production and hence profits, but also creates
problems in delivery schedule and business commitments. In common parlance, strikes hampers the
credibility and perception of a company in its customer/vendor market. On the other hand, lockouts may
disrupt the inflow wages for workmen most of whom live on marginal wages earned on daily basis. For
these labors a loss of a single days pay might lead to a considerable impact on daily life.
Some of the critical issues related to strikes and lockouts that have posed a matter of concern in India's
industrialization are as follows:
The biggest issue is to know whether a strike or a lockout is justified in the very first place. Issues
related to unfair labour practices, and improper compensation etc. should be resolved through
tribunals, and courts; hence, it is important to decide whether going on strike or declaring a lockout
should be, in any condition, legal or not?
Is right to strike or lockout a part of right to 'freedom of association'? Is it a part of demonstrative act
in freedom of speech. Hence, can a strike be illegal?
Different types of strikes have different impacts on business. Is there then a need for different
sections of law pertaining each of these strikes?
How to decide whether a strike or a lockout is/was for a justifiable reason or not?
Even if a strike or a lockout is found to be for a justified reason, should it be considered legal, if it has
created a considerable negative impact on parties not involved?
1 Section 2(q), Industrial Dispute Act, 1947
Statutes
In India strikes are not new the industries and even to the government. There are many legislative
attempts to solve the problem of strikes by introducing an amicable dispute resolution
mechanism, but the problem still stands unsolved. Following are few legal provisions dealing
with strikes.
Industrial Disputes (Amendment) Act, 1982, with a more pragmatic, comprehensive and realistic
definition.
The following case shows the importance of the definition of "Industry" in case of labour
disputes and strikes/lockouts:
Secretary, Madras Gymkhana Club Employees' Union Vs Management of the Gymkhana Club,
October, 19672: The employees of Madras Gymkhana Club asked the management for a bonus,
which was denied and the case was taken up in the Supreme Court of India. The court, on 3rd
October, 1967 held that the management of Madras Gymkhana Club was not liable to pay bonus
to its workmen, as the club, as per the definition of "Industry" section 2, ID Act, 1947, was not
an industry. As per the court, the respondent is a non-proprietary members' club. It is organized
on a vast scale with multifarious activities providing a venue for sports and games, and facilities
for recreation, entertainment and for catering of food and refreshment. Guests are admitted but
on the invitation of members. It has 194 employees with a wage bill between one lakh and two
lakh rupees. As per the definition, Industry means any 'trade, business, undertaking, manufacture
or calling of employers', and neither of these is being carried out by respondents. Hence, no
charge of Industrial dispute can be levied as the respondent is not an Industry.
Sub-section (3) of section 10: Where an industrial dispute has been referred to a Board,[Labor
Court, Tribunal or National Tribunal] under this section, the appropriate Government may by
order prohibit the continuance of any strike or lock-out in connection with such dispute which
may be in existence on the date of the reference.
Sub-section (3A) of section 10A: Where an industrial dispute has been referred to arbitration
and the appropriate government is satisfied that the persons making the reference represent the
majority of each party, the appropriate government may, within the time referred to in subsection (3) (one month), issue a notification in such manner as maybe prescribed; and when any
such notification is issued, the employers and workmen who are not parties to the arbitration
agreement but are concerned in the dispute, shall be given an opportunity of presenting their case
before the arbitrator or arbitrators.
Sub-section (4A) of section 10A: Where an industrial dispute has been referred to arbitration
and a notification has been issued under sub-section (3A), the appropriate government may, by
order, prohibit the continuance of any strike or lock-out in connection with such dispute which
maybe in existence on the date of the reference.
Section 22 states the clauses applicable to prohibit employees and employers of public utility
service companies (def. of public utility service as per section 2) from going on strike and
lockout. According to sub-section (1) and (2) of section 22, No employee or employer of a public
utility service shall go on strike or declare lockout,
a) without giving to the employer notice of strike, as hereinafter provided, within six weeks
before striking; or
b) within fourteen days of giving such notice; or
c) before the expiry of the date of strike specified in any such notice as aforesaid; or
d) during the pendency of any conciliation proceedings before a conciliation officer and
seven days after the conclusion of such proceedings.
Section 23 states the clauses applicable to prohibit employees and employers of any industrial
establishment from going on strike and lockout. It says that, No employee or employer of any
industrial establishment shall go on strike or declare lockout,
a) during the pendency of conciliation proceedings before a Board and seven days after the
conclusion of such proceedings;
b) during the pendency of proceedings before a Labor Court, Tribunal or National Tribunal
and two months, after the conclusion of such proceedings;
c) 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 subsection (3A) of section 10A (Industrial Disputes Act 1947);
d) 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.
Section 24: A strike or lock-out shall be illegal if(i)
(ii)
Where a strike or lock-out in pursuance of an industrial dispute has already commenced and
is in existence at the time of the reference of the dispute to a Board, an arbitrator, Labor
Court, Tribunal or National Tribunal, the continuance of such strike or lock-out shall not be
deemed to be illegal, provided that such strike or lock-out was not at its commencement in
contravention of the provisions of this Act or the continuance thereof was not prohibited
under sub-section(3) of section 10 or sub-section (4A) of section 10A.
A lock-out declared in consequence of an illegal strike or a strike declared in consequence of
an illegal lock-out shall not be deemed to be illegal.
Section 25: No person shall knowingly expend or apply any money in direct furtherance or
support of any illegal strike or lock-out.
Section 26 states the penalty which shall be levied on anyone for going on illegal strike or
declaring illegal lock out. The penalty can be imprisonment up to one month, and/or a fine of
rupees fifty, in case of a strike; and rupees one thousand, in case of a lockout.
c)
d)
e)
f)