Strikes and Lockouts as per the Labour Laws

What is a strike?

A strike is a stoppage of work initiated by the refusal of most workers to

perform their work. A strike is usually a consequence that happens due to
grievances that are not addressed by the employer on a timely basis.
Strikes became a popular phenomenon at the time of the Industrial
Revolution when mass workers became vital in factories and mines. In most
nations, strike actions were quickly made illegal, as employers comparatively
had more political power than the employees.
The right to strike by employees or workers is a well-recognised tool that is
available to workers to negotiate with the employer and force the employer to
agree on their demands. In our daily lives, very frequently we see news
regarding workers going on strikes so that their demands in regards to their
wages, benefits and working conditions are accepted by their employer.

The most important ingredients of a strike

The strike must be in an establishment that falls under the definition of

“industry” as specified in the Industrial Disputes Act, 1947.

There should be a relation of employer-employee between the employer and

the striking workmen.

There should be a stoppage of work by the workmen.

Types of strikes

Following are some of the different types of strikes:

A general strike is a type of strike where the workers join together for a
common reason or demand and keep themselves from work, depriving the
employer of their workers to carry on their business operations.
A “token strike”, which is for a shorter period, for example for a few hours,
and its main aim is to draw the attention of the Management by showing
cooperation among the workers, and it is generally before the general strike.

Why do workmen strike?

Most strikes are undertaken by workers’ unions at the time of collective
bargaining. The main aim of collective bargaining is to obtain an agreement
between the workers’ union and the employer on the terms and conditions of
employment.

Sometimes, workmen decide to strike without the intervention or approval of

a workers’ union. This happens either because the workers’ union refuses to
support the reason for a strike as it seems invalid, or the workers who are
initiating a strike are not a part of a workers’ union. Such strikes are usually
considered unofficial.

Strikes initiated without obtaining official approval of the workers’ union are
also known as wildcat strikes. In many nations, wildcat strikes are not
considered legal and may lead to fines or penalties for the union members
who engage themselves in such types of strikes.

What happens during a strike?

A strike may consist of the workmen who refuse to come to work or march
outside the factory or office premises to prohibit other workmen from
working or conducting any business with the employer.

It rarely happens that workers will leave the workplace, but will not agree to
do their work or to leave the workplace. This is called a sit-down strike.

Significant case laws

In the case of TISCO Ltd vs Workmen, the verdict was that if the employer
replaces the weekly day-off Sunday with another day-off without notifying
the workmen in advance then such change will not be considered as a legal
change. Therefore, the refusal of workmen to work on the day-off which was
not a Sunday did not amount to strike.

In the case of North Brook Jute Co. Ltd. vs Workmen, the verdict was that
when a scheme was introduced in contradiction to Section 33 of the
Industrial disputes Act, 1947 then the refusal to act according to that scheme
would not be considered as a strike.

In the case of Punjab National Bank vs All India Punjab National Bank
Employees’ Federation, the verdict was that a pen-down strike would be
considered as a strike because here the workers do enter the work or office
premises but do not agree to perform their work.
In the case of T.K. Rangarajan vs Government of Tamil Nadu, the verdict
was that the right to strike is not a fundamental right. In addition, it is also
neither legal nor a statutory right. A similar thing was recognised in the case
of B.R. Singh vs Union of India.

What methodologies do companies utilize to deal with a strike?

Most strikes declared by workers’ unions are usually predicted; as they

usually take place after the employment contract has expired.
Preparation to deal with a Strike: Companies or Factories which manufacture
goods for sale will frequently increase the level of their inventories before a
strike takes place. Salaried workmen may be called upon to take the place of
workmen who have engaged in strike, which may require them to take
training in advance. If the organization has multiple work locations,
workmen may be redeployed to meet the business needs of the decreased
workmen.

Organizations may also take out strike insurance before an expected strike,
which may help to cover the losses which would cause because of the strike.

One of the weapons utilized by the worker’s unions is the strike action. Some
organizations may refuse entirely to negotiate with the workers’ union and
may respond to the strike by hiring workmen in replacement of the striking
workmen. This may create a difficult situation for strikers as they need to
take a call if they have to stick to their original plan, or if there is a possibility
that the strike may be lost? Strikers might also wonder how long will the
strike last? Will their employment still be there if the strike fails?
Organizations that engage the services of strikebreakers usually take
advantage of these anxieties among strikers when they attempt to convince
them to end the strike.

Another remedy to a strike is a lockout, which is a way of work stoppage in

which an employer (organization) does not allow workmen to continue their
work.

What is a lockout?
Lockout is the opposite of a strike. Strike is a tool in the hands of the
workmen to compel the management to agree to their demands. Similarly,
lockout is a tool in the hands of the management to force the workmen to
further negotiate on their demands which are related to the terms and
conditions of the workers’ employment.
As per the 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.

This definition consists of the following three components of a lockout:

Temporary closing of a place of employment; or

Suspension of work, or

Refusal to continue to employ any number of persons employed by the

employer.

When a lockout takes place, the workers are asked by the management to
stay away from work, and therefore, they are not obliged to attend work.

Case laws

In the case of Shri Ramchandra Spinning Mills vs State of Madras, it was

seen that if the employer closes his place of business as a means of reprisal or
as an instrument of coercion or as a mode of exerting pressure on employees
or generally speaking when his act is what may be called an act of
belligerency there will be a lock-out.

In the case of Lord Krishna Sugar Mills Limited Saharanpur vs State of UP,
the verdict was that a lock-out may sometimes be not at all connected with
economic demands; it may be resorted to as a security measure.

In the case of Lakshmi Devi Sugar Mills Limited vs Ram Sarup, the verdict
was that in the case of lockout there is neither alteration to the prejudice of
workmen of the conditions of the service application to them nor a discharge
or punishment whether by dismissal or otherwise.

Conclusion
Thus, we can conclude that Strikes and Lockouts are effective weapons for
both employers and employees who are engaged in the process of Collective
Bargaining, provided that such weapons are utilized lawfully and ethically.
India in the present context of economic development programs cannot
afford the unqualified right to the workers to strike or to the employer to
lock-out. Compulsory arbitration as an alternative to collective bargaining
has come to stay. The adoption of compulsory arbitration does not, however,
necessarily mean denial of the right to strike or stifling of the trade union
movement. If the benefits of legislation, settlements and awards are to reach
the individual worker, not only the trade union movement has to be
encouraged and its outlook broadened but the laws have also been suitably
tailored.
The existing legislation and judicial pronouncements lack the breadth of
vision. Indeed, the statutory definitions of strike and lock-out have been
rendered worse by a system of interpretation that is devoid of a policy-
oriented approach and which lays undue stress on semantics.