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MANAGEMENT OF RELATIONS

INDUSTRIAL

ASSIGNMENT TWO

SUBMITTED TO :-

Mr. U.S. Wahie


Lecturer (MIR) RBS,Rai University

Submitted by:-

Abhishek Pathak Mohit Goel Ariz Jamil Raj Mohan J.s.


MBA IIIrd Semester Section 6

How the Works Committee is formed under the provision of Industrial Dispute (central) Rules,central ID rules ,1957?How far Works Committee are useful in maintaining good industrial relations?
The Royal Commission on Labour (1929-31) said:We believe that if these committees (works committees) are given proper encouragement and the past errors are avoided they can play a useful role in the Indian industrial system.These recommendations could,however, be translated into law only in 1947. Section 3 of the Industrial Disputes Act, 1947 empowered appropriate Governments to require employers employing 100 or more workers in any industrial establishment to constitute works committees. The Act and rules made under it provide that the total number of representatives on the works committee including those of the employer should not exceed 20, and that the number of representatives of workers should not be less than that of the employer. The functions that the Act visualized for the Works Committees were: a) To promote measures for securing and preserving amity and good relations between employers and workmen;

b) To that end comment upon matters of common interest or concern; and c) To endeavour to compose any material difference of opinion between the employer and the workmen in respect of such matters Some of the laws enacted by the States like the Bombay Industrial Relations Act and the MP Industrial Relations Act do provide for setting up of joint committees on similar lines. The beginning of these joint committees can be traced back to 1920 when the Government of India constituted joint committees in Govt. printing presses. A similar joint committee was formed by TATA in the TATA Iron & Steel Works, Jamshedpur. A joint committee was constituted in the Carnatik Mill in Madras in 1922. The Indian Labour Conference in its 17th session held in 1959 discussed the functions of the works committee and approved a list of functions which could be assigned to the works committees and a list of functions which should not be assigned to the works committees. It will be useful to look at the illustrative lists drawn up by the Indian Labour Conference: a) Items which works committees, may normally deal with: i) ii) Conditions of work, such as ventilation, lighting, temperature and sanitation, including latrines and urinals. Amenities such as drinking water, canteens, dining rooms, crches, rest rooms, medical and health services. Safety, and accident prevention, occupational diseases and protective equipment. Adjustment of festival and national holidays. Administration of welfare and funds. Educational and recreational activities such as, libraries, reading rooms, cinema shows, sports, games, picnic parties, community welfare and celebrations. Promotion of thrift and savings.

iii) iv) v) vi)

vii)

viii)

Implementation and review of decisions reached at meetings of works committees.

b) Items which the works committees should not normally deal with: i) ii) iii) iv) Wages and allowances. Bonus and profit sharing schemes Rationalisation and matters connected with the fixation of workloads. Matters connected with the fixation of the standard labour force. Programmes of planning and development. Matters connected with retrenchment and lay-off. Victimisation for trade union activities. Provident fund, gratuity schemes and other retiring benefits. Quantum of leave, and national and festival holidays. Incentive schemes. Housing and transport service. management councils were to deal with all matters except matters falling within the area of collective bargaining such as wages, bonus, hours of work, etc.

v) vi) vii) viii) ix) x) xi)

How do unions decide which techniques to use in accomplishing their goals? What determines whether unions will select economic or political method?
Trade unionism is the child of industrialization, which caught momentum after industrial revolution in England during the mid nineteenth century. The evolution of the trade unions has been interpreted in different ways by different authorities. Their views are expressed in the form of ideologies, approaches, theories, etc. The purpose of such approaches and theories has been to explain the basic motivating factors behind union growth and bargaining policies. Unions engage in a wide variety of functions, ranging from organization of workers to maintaining and protecting their rights. John T. Dunlop has been of the view that a useful theory of trade unionism must provide answers to the following questions: i. What factors lead to the organization of a union? ii. What conditions are favorable to bring a union into existence? iii. What different patterns of growth and development in different industries and different geographical areas are found in the unions? iv. What are the ultimate goals of the unions? How will these affect the political, economic and social structure of the country in the long run? To these, Arthur D. Butler added two more questions, namely: v. How do unions decide which goals to seek through collective bargaining? When a union knows it cannot win everything at a particular bargaining session, how does it decide whether to fight harder for wage increases or for a better grievance procedure? vi. How do unions decide which techniques to use in accomplishing their goals? What determines whether unions will select economic or political methods? The questions are inter-dependent and the answer to one will determine answer to others. To answer these questions, the following theories of labour movement might prove useful:

1. 2. 3. 4. 5. 6. 7. 8. 9.

Marxian class struggle theory. Webbs theory of industrial democracy. Coles theory of industrial unionism. Hoxies theory of business union. Tannenbaums anti-technology theory. Commons pragmatic approach. Perlmans theory of scarcity consciousness. Kerr and Associates protest theory. Mahatma Ghandhis Sarvodaya theory.

The Marxian Theory Karl Marx was the founder of Scientific Socialism popularly known as Communism. In the eyes of Marx, the organized labour movement is an intermediate step in the class struggle, the fight for power by the proletarian class (workers) to overthrow the capitalist class (bourgeois). Karl Marx traced the origin of trade unionism to the growth of industrial capitalism. And in his views, trade unions represent a prime instrument of class struggle between proletarian workers and capitalists. ToKarl Marx, the trade union is an organising centre. Without organisation, workers compete with each other for available employment. Trade unions developed out of the attempts of the workers to do away with this competition for the purpose of obtaining at least such contractualconditions as would raise them above the status of bare slaves. The labour organisationprovides the locus of the working class towards a change in the structure of the society, and it was to be the center , for organising the working class for its political emancipation. . Webbs Theory of Industrial Democracy Webbs theory is the classic statement of the assumptions, purposes and methods of labour organisation. The husbandwife team of Sidney Webb and Beatrice Webb were dominant leaders of the labour party in Great Britain during 1920s and 1930s. According to Webbs, trade unionism is an extension of democracy from the political sphere to that of industry and to overcome the dangers of managerial dictatorship. This function of representing and protecting the working class is not just a temporary-obligation, arising from the current state of modem industrial development, nor does it lead eventually to the all embracing dictatorship of the proletariat of Marx and Engles. They rejected emphatically the classless society. Webbs as fabian socialists saw a different outcome in the evolution of political form. In their analysis of the causes of trade Unionism, the Webbs placed major emphasis upon the adverse effects of competition. According to Webbs, trade union movement is not an instrument of revolution to overthrow the capitalistic order. In fact, they saw the solution of class conflict in equality of bargaining power and collective

negotiation. They did not think it necessary to accomplish complete overthrow and liquidation of business class. It was merely to eliminate industrial autocracy and replace it with industrial democracy. To improve the economic status of the working class and to infuse industrial democracy, Webbs advocated the methods of mutual insurance, collective bargaining and legal enactment According to them, the special function of the trade union is the democratic administration of the industry. Coles Theory of Industrial Unionism and Control of Industry Like Webbs, Cole had no doubt about the assumption that trade Unionism exists to carry on the class struggle. He said the class struggle is preached not on the ground that it is desirable, but on the ground that it is monstrous. and irrefutable fact. The class struggle is established in our social institutions, and it is only by means of the class struggle that we can escape from it. This in turn implies great power, which can be attained only through universal membership of the labour class in trade Unions and improved Organisation. Cole gave the intermediate and ultimate stages of the class struggle and remarked, the control of industry may be the future destiny of the trade unions, the direct control of the whole national life is most emphatically not for them. collective bargaining for securing benefits for the workers. Hoxies theory of Business Union Hoxies greatest contribution to the theory of unionism was to classify labour organisation according to their functional operations and to identify the principal types to be more common. The main types of trade. unions according to Hoxie were five, Business, Uplift, Revolutionary, Predatory and Dependent. A fundamental type is the result of a common interpretation of the social situation which produces agreement among the group as to the problem forcing its members and the kind of remedial programmes, which will solve it. To Hoxie, trade unionism was a pragmatic, shifting grass-roots movement. He rejected implicitly the assignment of a fixed basic Cause, economic or political or historical, as the explanation of workers combination. This amounted to a denial of the class struggle theory of Marx or Cole and brought him close to Commons environmental adaptation theory without the latters underlying class commitment.The five types of unions described by Hoxie are as follows: 1. Business Unions. Also known as Bread and Butter unions, These unions are trade conscious rather than class conscious. They accept the existing economic system and aim at bringing about improvement in the wages and

working conditions of their members. Collective bargaining is the usual method followed by these unions with heavy reliance on strike as a weapon. 2. Friendly or Uplift Unions. Such unions are essentially idealistic in viewpoint. They may be trade, class or society conscious. These aspire to elevate the moral, intellectual and social life of the workers. To realise this aim, these unions advocate use of political methods such, as setting up of cooperative enterprises, profit sharing, mutual insurance, etc. They are law abiding and employ the methods of collective bargaining for securing benefits for the workers. 3.Revolutionary Unions. Such unions are extremely radical both in view point and in action. They are distinctly class conscious rather than trade conscious. They reject private ownership of productive resources and the wages system. Their weapons are either political action or direct action in the form of strikes, boycotts, sabotage and violence. Collective bargaining is also used in so far as the main aim is not overlooked. Their aim is to overthrow the capitalistic system and install socialistic system. 4. Predatory Unions. Unions of this kind do not subscribe to any ideology. Such unions are characterized by their ruthless pursuit of immediate ends. Their methods include collective bargaining, secret bribery and violence. 5. Dependent Unions. A dependent union is parasitic in nature relying upon the support of the employers or other labour groups. Unions of this type appear in two forms company union and union label union. The former depends entirely on the employer for its support and does not really represent the interest of the workers in so far as it is not opposed to the interest of the management. The second type depends upon the union label being imprinted on the products made by the union members. with the rise and fall of union activity. The outcome of Commons theory of labour unionism is non-revolutionary and implies non-acceptance of capitalism which fell considerably short of even the Webbs expectations of political evolution. Perlmans Theory of Scarcity Consciousness the older way of life and left the individual industrial worker to the mercy of the employer who became the catalytic agent that crystalised the workers into a self-conscious group. The workers became completely dependent upon the machine and the employer degraded them and made them insecure. The trade union movement aims at control over the machine so as to overcome insecurity. Thus, according to Tannenbaum, the emergence of unionism

is spontaneous and inherent in the growth of capitalism. It reflects the urge of the human beings to have control over machine. Tannenbaum saw the labour movement ultimately displacing the capitalistic system by industrial democracy. Commons Pragmatic Approach Common advanced a theory of labour. movement based on a set of basic premises which are mostly environmental factors. That is why, his theory is also called environmental theory of labour movement. The basic premises of his theory were Marxian, although the conclusions, being those of careful observer and a restrained reporter, would hardly have satisfied the German revolutionary philosopher. Mahatma Gandhis Sariodya Theory According to Mahatma Gandhi, unions are not anti-capitalistic organizations. They are in the least degree political. Their main aim is to increase their internal strength to work conscientiously and to take from the employers no more than that what is rightfully due to the workers. Mahatma Gandhis philosophy is based upon the Sarvodaya principles of Truth, Non-violence and Trusteeship, in which class harmony prevails. He considered trade unions as essentially reformist organisations and economic institutions, which must be organised the basis that capital and labour are not antagonistic but ate supplementary to each other. He observed: My ideal is that capital and labour should supplement and help each other. They should be a great family living in unity and harmony; capital not only looking to the material welfare of themselves.

Define and describe

collective bargaining.

What should be the conditions for the success of collective bargaining?

he ILO Right to Organize and

Collective Bargaining Convention (No. 98), 1949 describes collective bargaining as: "Voluntary negotiation between employers or employers' organizations and workers' organizations, with a view to the regulation of terms and conditions of employment by collective agreements." Collective bargaining could also be defined as negotiations relating to terms of employment and conditions of work between an employer, a group of employers or an employers' organization on the one hand, and representative workers' organizations on the other, with a view to reaching agreement. There are several essential features of collective bargaining, all of which cannot be reflected in a single definition or description of the process: i. It is not equivalent to collective agreements because collective bargaining refers to the process or means, and collective agreements to the possible result, of bargaining. Collective bargaining may not always lead to a collective agreement. It is a method used by trade unions to improve the terms and conditions of employment of their members. It seeks to restore the unequal bargaining position between employer and employee. Where it leads to an agreement, it modifies, rather than replaces, the individual contract of employment, because it does not create the employer-employee relationship.

ii. iii. iv.

The process is bipartite, but in some developing countries the State plays a role in the form of a conciliator where disagreements occur, or where collective bargaining impinges on government policy.

Conditions for Successful Collective Bargaining


Pluralism and the Freedom of Association

A pluralistic outlook involves the acceptance within a political system of pressure groups (e.g. religious groups, unions, business associations, political parties ) with specific interests with which a government has dialogue, with a view to effecting compromises by making concessions. Pluralism implies a process of bargaining between these groups, and between one or more of them on the one hand and the government on the other. It therefore recognises these groups as the checks and balances which guarantee democracy. It is natural that in labour relations in a pluralist society, collective bargaining is recognised as a fundamental tool through which stability is maintained, while the freedom of association is the sine qua non because without the right of association the interest groups in a society would be unable to function effectively. Thus pluralism's "theme is that men associate together to further their common interests and desires; their associations exert pressure on each other and on the government; the concessions which follow help to bind society together; thereafter stability is maintained by further concessions and adjustments as new associations emerge and power shifts from one group to another." (H.A. Clegg: A New Approrach to Industrial Democracy, Blackwell, Oxford, UK, 1960 at 20). There can, therefore, be no meaningful collective bargaining without the freedom of association accorded to both employers and workers. Trade Union Recognition The existence of the freedom of association does not necessarily mean that there would automatically be recognition of unions for bargaining purposes. Especially in systems where there is a multiplicity of trade unions, there should be some pre-determined objective criteria operative within the industrial relations system to decide when and how a union should be recognised for collective bargaining purposes. The accepted principle is to recognise the most representative union, but what criteria is used to decide it and by whom may differ from system to system. In some systems the issue would be determined by requiring the union to have not less than a stipulated percentage of the workers in the enterprise or category in its membership. The representativeness may be decided by a referendum in the workplace or by an outside certifying authority (such as a labour department or an indepenedent statutory body). There could be a condition that once certified as the bargaining agent, there cannot be a change of agent for a prescribed

period (e.g. one or two years) in order to ensure the stability of the process.

Observance of Agreements Especially in developing countries where there is a multiplicity of unions, unions are sometimes unable to secure observance of agreements by their members. Where a labour law system provides for sanctions for breaches of agreements, the labour administration authorities may be reluctant to impose sanctions on workers. Where there is frequent nonobservance of agreements or understandings reached through the collective bargaining process, the party not in default would lose faith in the process. Support of Labour Administration Authorities Support by the labour administration authorities is necessary for successful collective bargaining. This implies that they will: i. provide the necessary climate for it. For instance, they should provide effective conciliation services in the event of a breakdown in the process, and even provide the necessary legal framework for it to operate in where necessary, e.g. provision for the registration of agreements. will not support a party in breach of agreements concluded consequent to collective bargaining. as far as is practicable, secure observance of collective bargaining agreements. provide methods for the settlement of disputes arising out of collective bargaining if the parties themselves have not so provided.

ii. iii. iv.

Good Faith Collective bargaining is workable only if the parties bargain in good faith. If not, there will be only the process of bargaining without a result viz. an agreement. Good faith is more likely where certain attitudes are shared among employers, workers and their organizations e.g. a belief and faith in the value of compromise through dialogue, in the process of collective bargaining, and in the productive nature of the relationship collective bargaining requires and develops. Strong organizations of workers and employers contribute to bargaining in good faith, because there would be some parity in the bargaining strength of the two parties.

Proper Internal Communication Both the management and union should keep their managers and members respectively well informed, as a lack of proper communication and information can lead to misunderstandings and even to strikes. Sometimes managers and supervisors who are ill-informed may inadvertently mislead workers who work under them about the current state of negotiations, the management's objectives and so on. In fact, it is necessary to involve managers in deciding on objectives and solutions, and such participation is likely to ensure greater acceptance and therefore better implementation - by them. Advantages of Collective Bargaining First, collective bargaining has the advantage of settlement through dialogue and consensus rather than through conflict and confrontation. It differs from arbitration where the solution is based on a decision of a third party, while arrangements resulting from collective bargaining usually represent the choice or compromise of the parties themselves. Arbitration may displease one party because it usually involves a win/lose situation, and sometimes it may even displease both parties. Second, collective bargaining agreements often institutionalize settlement through dialogue. For instance, a collective agreement may provide for methods by which disputes between the parties will be settled. In that event the parties know beforehand that if they are in disagreement there is an agreed method by which such disagreement may be resolved. Third, collective bargaining is a form of participation. Both parties participate in deciding what proportion of the 'cake' is to be shared by the parties entitled to a share. It is a form of participation also because it involves a sharing of rule-making power between employers and unions in areas which in earlier times were regarded as management prerogatives, e.g. transfer, promotion, redundancy, discipline, modernisation, production norms. However, in some countries such as Singapore and Malaysia, transfers, promotions, retrenchments, lay-offs and work assignments are excluded by law from the scope of collective bargaining. Fourth, collective bargaining agreements sometimes renounce or limit the settlement of disputes through trade union action. Such agreements have the effect of guaranteeing industrial peace for the duration of the agreements, either generally or more usually on matters covered by the agreement.

Fifth, collective bargaining is an essential feature in the concept of social partnership towards which labour relations should strive. Social partnership in this context may be described as a partnership between organised employer institutions and organised labour institutions designed to maintain non-confrontational processes in the settlement of disputes which may arise between employers and employees. Sixth, collective bargaining has valuable by-products relevant to the relationship between the two parties. For instance, a long course of successful and bona fide dealings leads to the generation of trust. It contributes towards mutual understanding by establishing a continuing relationship. The process, once the relationship of trust and understanding has been established, creates an attitude of attacking problems together rather than each other. Seventh, in societies where there is a multiplicity of unions and shifting union loyalties, collective bargaining and consequent agreements tend to stabilise union membership. For instance, where there is a collective agreement employees are less likely to change union affiliations frequently. This is of value also to employers who are faced with constant changes in union membership and consequent inter-union rivalries resulting in more disputes in the workplace than otherwise. Eighth - perhaps most important of all - collective bargaining usually has the effect of improving industrial relations. This improvement can be at different levels. The continuing dialogue tends to improve relations at the workplace level between workers and the union on the one hand and the employer on the other. It also establishes a productive relationship between the union and the employers' organization where the latter is involved in the negotiation process. Current Trends in Collective Bargaining Collective bargaining may take place at the national, industry or enterprise level. In no country does it take place exclusively at one level only. However, in many industrialized countries, especially in Europe, the existence of strong employers' organizations and trade unions have resulted in many important agreements being concluded at the national or industry level, supplemented by some enterprise level bargaining. In the USA, however, bargaining at the enterprise level has been the more usual practice, other than in specific sectors such as coal, steel, trucking and construction. In Japan national level bargaining has been the exception, and it has been supplemented by a substantial amount of enterprise level bargaining, facilitated partly by union structures which are enterprise-based. In many Asian countries relatively low rates of unionisation have militated against national and industry level

bargaining, and enterprise level bargaining has been more common. This accounts for the relative non-involvement of some Asian employers' organizations in collective bargaining. Japanese employers and workers have demonstrated how a combination of enterprise level bargaining and shop floor mechanisms (such as joint consultation) enables the parties to take into account specific enterprise conditions and also to increase productivity. The tendency during the last decade - and especially in the 1990s - even among industrialised countries with a highly centralised bargaining system, is towards enterprise level bargaining. This is true of even a country like Sweden with a strong employers' organization, a strong trade union movement, and a previous tradition of centralized bargaining. In the 1990s the avowed policy of the Swedish Employers' Confederation has been to move negotiation to the enterprise level. Decline in union membership and an increase in corporate power in Europe have contributed to this trend. But most importantly, restructuring of enterprises flowing from intense competition has created the need to focus on enterprise level issues such as flexible working time, removal of narrow job classifications, new work organization, promotion of more worker involvement scemes and decentralised decision-making. Many employers view centralised bargaining as facilitating more equal distribution of incomes, but depriving employers of the ability to use pay as an instrument for productivity enhancement and to compensate for skills and performance. The push by employers for flexibility in the context of increasing global competition has raised many issues, which are more appropriately dealt with at the enterprise level. Some of the many concerns of employers such as productivity and quality, performance, and skills development to retain or gain competitive edge and to make rapid changes to adapt to the global marketplace are likely to increase the movement towards more enterprise level negotiations Collective bargaining in Indian Scenario Two critical aspects of the collective bargaining system are an expansion of the coverage and scope of long-term agreements and the increasing pressure for decentralized bargaining. These tendencies originated during the third phase of unionism and became acute during the post-reform fourth phase. The restructuring agreements cover (among other things): ban on recruitment, job transfers to non-bargain able category, introduction of parallel production, automation and flexibility, transfer of production to subcontracted units, introduction of voluntary retirement schemes, transfer of permanent jobs to contract/temporary workers, merger of units, and a host of other shop floor restructuring provisions (Venkataratnam, 1996). Concession

bargaining in several units has led to job and wage cuts, a freeze on cost-of-living allowances, and suspension of industrial action for a period of five years. While the above suggests that management has had the upper hand in recent years, Venkataratnam (1996) also lists some "unusual" clauses that suggest a positive union "collective voice" effect: linking allowances such as house rent and children's education to attendance, permitting pregnant women to refuse to work on computer terminals, voluntary retirement schemes for contract labour, and so on. We have already mentioned government attempts during the postreform period to decentralize bargaining in public sector units by tying unit-level wage increases to productivity increases (rather than passing them on as price increases), and by consistently announcing its refusal to provide budgetary support to these wage increases. The central trade unions are uniting to pre-empt a government attempt to switch to a 10year wage settlement in public sector units instead of the present 5-year duration. Union leaders say the move will affect the pay revision prospects of about 2 million workers in the public sector. Private employers have been lobbying for some time to increase the duration of contracts in public sector units so as to prevent disruptions arising from frequent industrial disputes, the costs of which they have to often bear. Unions, especially the All India Trade Union Congress and the Indian National Trade Union Congress, are strongly against such a move. Even outside the public sector, pressures for decentralized bargaining are emanating from both workers and employers. What happened in the textile industry is now being repeated in the jute industry in and around Calcutta. Due to the uneven development of textile firms in Mumbai in the early 1980s, and due to the undemocratic nature of union representation in the industry, both employers and unions in the more profitable mills wanted to break away from the industry-wide agreement in force and set up their own mill-level agreements (Bhattacherjee, 1988; 1989). Recently, employers in two jute mills defied the industrywide agreement between the Indian Jute Mills Association and the many unions by offering a higher cost-of-living allowance to avert mill-level strikes. The central trade unions are in a dilemma for the first time in the jute industry: on the face of it, they oppose any kind of bipartite settlement by insisting on an industry-wide agreement at tripartite level. But by encouraging strikes at individual mills, they are indirectly opening up routes for direct negotiation between management and milllevel unions. The trend towards decentralization is reflected in the rising number of unions which have signed the industry-wide agreement: in 1972, there were only four signatories, in 1979 there were 11, and in 1992 there were 16 (Sen, 1997, p. 104).

By decentralizing bargaining structures and expanding the scope and duration of labour contracts, employers and the government are trying to minimize the "monopoly effects" of union work rules embedded in contract provisions that lead to considerable labour market inflexibilities, especially at micro-level. The determinant of public sector negotiations has been pay parity, and as a result there are few incentive structures in this system. Centralized public sector unions will have to come to terms with the microeconomic requirements of productivity growth and increased competition. They can learn from union responses to restructuring programmes in Europe

Describe procedure of Registration of Trade union under the provisions of Trade union Act, 1926.
The trade Unions Act, 1926 provides for registration of trade unions with a view to render lawful organisation of labour to enable collective bargaining. It also confers on a registered trade union certain protection and privileges. The Act extends to the whole of India and applies to all kinds of unions of workers and associations of employers, which aim at regularising labour management relations. A Trade Union is a combination whether temporary or permanent, formed for regulating the relations not only between workmen and employers but also between workmen and workmen or between employers and employers REGISTRATION Registration of a trade union is not compulsory but is desirable since a registered trade union enjoys certain rights and privileges under the Act. Minimum seven workers of an establishment (or seven employers) can form a trade union and apply to the Registrar for it registration.

The application for registration should be in the prescribed form and accompanied by the prescribed fee, a copy of the rules of the union signed by at least 7 members, and a statement containing

(a) the names, addresses and occupations of the members making the application, (b) the name of the trade union and the addresses of its head office, and (c) the titles, names, ages, addresses and occupations of its office bearers.

If the union has been in existence for more than a year, then a statement of its assets and liabilities in the prescribed form should be submitted along with the application. The registrar may call for further information for satisfying himself that the application is complete and is in accordance with the provisions, and that the proposed name does not resemble On being satisfied with all the requirements, the registrar shall register the trade union and issue a certificate of registration, which shall be conclusive evidence of its registration.

Mode of registration[(1) Any seven or more members of a Trade Union may, by subscribing their names to the rules of the Trade Union and by otherwise complying with the provisions of this Act with respect to registration, apply for registration of the Trade Union under this Act. (2) Where an application has been made under sub-section (1) for the registration of a Trade Union, such application shall not be deemed to have become invalid merely by reason of the fact that, at any time after the date of the application, but before the registration of the Trade Union, some of the applicants, but not exceeding half of the total number of persons who made the application, have ceased to be members of the Trade Union or have given notice in writing to the Registrar dissociating themselves from the application.] Application for registration.(1) Every application for registration of a Trade Union shall be made to the Registrar and shall be accompanied by a copy of the rules of the Trade Union and a statement of the following particulars, namely: (a) the names, occupations and address of the members making application; (b) and the name of the Trade Union and the address of its head office;

(c) the titles, names, ages, addresses and occupations of the [officebearers] of the Trade Union. (2) Where a Trade Union has been in existence for more than one year before the making of an application for its registration, there shall be delivered to the Registrar, together with the application, a general statement of the assets and liabilities of the Trade Union prepared in such form and containing such particulars as may be prescribed.

Provisions to be contained in the rules of a Trade Union.A Trade Union shall not be entitled to registration under this Act, unless the executive thereof is constituted in accordance with the provisions of this Act, and the rules thereof provide for the following matters, namely: (a) The name of the Trade Union;

(b) The whole of the objects for which the Trade Union has been established; (c) The whole of the purposes for which the general funds of the Trade Union shall be applicable, all of which purposes shall be purposes to which such funds are lawfully applicable under this Act; (d) The maintenance of a list of the members of the Trade Union and adequate facilities for the inspection thereof by the [office-bearers] and members of the Trade Union; (e) The admission of ordinary members who shall be persons actually engaged or employed in an industry with which the Trade Union is connected, and also the admission of the number of honorary or temporary members as [office-bearers] required under Section 22 to form the executive of the Trade Union; (ee) the payment of a subscription by members of the Trade Union which shall be not less than twenty-five naye paise per month per member;] (f) the conditions under which any member shall be entitled to any benefit assured by the rules and under which any fine or forfeiture may be imposed on the members; (g) the manner in which the rules shall be amended, varied or rescinded; (h) the manner in which the members of the executive and the other [office-bearers] of the Trade Union shall be appointed and removed; (i) the safe custody of the funds of the Trade Union, an annual audit, in such manner as may be prescribed, of the accounts thereof, and adequate facilities for the inspection of the account books by the [officebearers] and members of the Trade Union; and (j) the manner in which the Trade Union may be dissolved.

Power to call for further particulars and to require alterations of names.(1) The Registrar may call for further information for the purpose of satisfying himself that any application complies with the provisions of Section 5, or that the Trade Union is entitled to registration under Section 6, and may refuse to register the Trade Union until such information is supplied.

(2) If the name under which a Trade Union is proposed to be registered is identical with that by which any other existing Trade Union has been registered or, in the opinion of the Registrar, so nearly resembles such name as to be likely to deceive the public or the members of either trade Union, the Registrar shall require the persons applying for registration to alter the name of the Trade Union stated in the application, and shall refuse to register the Union until such alteration has been made. Registration.The Registrar, on being satisfied that the Trade Union has complied with all the requirements of this Act in regard to registration, shall register the Trade Union by entering in a register, to be maintained in such form as may be prescribed, the particulars relating to the Trade Union contained in the statement accompanying the application for registration. Certificate of registration.The Registrar, on registering a Trade Union under Section 8, shall issue a certificate of registration in the prescribed form which shall be conclusive evidence that the Trade Union has been duly registered under this Act. Cancellation of registration.A certificate of registration of a Trade Union may be withdrawn or cancelled by the Registrar (a) on the application of the Trade Union to be verified in such manner as may be prescribed; (b) if the Registrar is satisfied that the certificate has been obtained by fraud or mistake or that the Trade Union has ceased to exist or has wilfully and after notice from the Registrar contravened any provision of this Act or allowed any rule to continue in force which is inconsistent with any such provision or has rescinded any rule providing for any matter provision for which is required by Section 6: Provided that not less than two months previous notice in writing specifying the ground on which it is proposed to withdraw or cancel the certificate shall be given by the Registrar to the Trade Union before the certificate is withdrawn or cancelled otherwise than on the application of the Trade Union. Appeal.(1) Any person aggrieved by any refusal of the Registrar to register a Trade Union or by the withdrawal or cancellation of a certificate of registration may, within such period as may be prescribed, appeal (a) where the head office of the Trade Union is situated within the limits of a Presidency town to the High Court, or (b) where the head office is situated in any area, to such court, not inferior to the court of an additional or assistant Judge of a principal Civil Court of original jurisdiction, as the[appropriate Government] may appoint in this behalf for that area.

(2) The appellate court may dismiss the appeal, or pass an order directing the Registrar to register the Union and to issue a certificate of registration under the provisions of Section 9 or setting aside the order or withdrawal or cancellation of the certificate, as the case may be, and the Registrar shall comply with such order. (3) For the purpose of an appeal under sub-section (1) an appellate court shall, so far as may be, follow the same procedure and have the same power as it follows and has when trying a suit under the Code of Civil Procedure, 1908 (5 of 1908), and may direct by whom the whole or any part of the costs of the appeal shall be paid, and such costs shall be recovered as if they had been awarded in a suit under the said Code. (4) In the event of the dismissal of an appeal by any court appointed under clause (b) of sub-section (1) the person aggrieved shall have a right of appeal to the High Court, and the High Court shall, for the purpose of such appeal, have all the powers of an appellate court under sub-sections (2) and (3), and the provisions of those sub-sections shall apply accordingly.] Registered office.All communications and notices to a registered Trade Union may be addressed to its registered office. Notice of any change in the address of the head office shall be given within fourteen days of such change to the Registrar in writing, and the changed address shall be recorded in the register referred to in Section 8. LEGAL STATUS OF A REGISTERED TRADE UNION

A registered trade union is a body corporate with perpetual succession and a common seal. It can acquire, hold sell or transfer any movable or immovable property and can be a party to contracts. It can sue and be sued in its own name No civil suit or other legal proceeding can be initiated against a registered trade union in respect of any act done in furtherance of a trade dispute under certain conditions. No agreement between the members of a registered trade union shall be void or voidable merely on the ground that any of its objects is in restraint of trade.

If the members of union are not exceed 1000 the registration fee is Rs.5/(Rupees five only) and Rs.10/-(Rupees tax only) if the members are more than 1000. It is to be paid only at the time of registration. If any registered union wants to make any addition, omission, alteration in the constitution of the union, the office bearers have to pass a resolution in the constitution of the trade union, the office bearers have to pass a resolution in the meeting of the trade union at least by a majority of the members and they are to be intimated within 15 days

from the date of the said meeting wherein these amends were made to the registrar of trade union along with a fee of Rs.5/- payable either in cash or by m.o. No such amendments shall be effective unless registered by the registrar of Trade Unions. Every registered trade union is required to submit an annual return before 31st March, in the prescribed performa to the registrar. Failure to submit such a return under prescribed from may lead to cancellation of the defaulter trade union. No registered trade union or any officer of such a registered trade union shall be liable for any Civil liability of any breach of section 120-B (2) of Indian Penal Code..

Short Notes: (A) Types of Unions:-

Trade unions are one of the key party in


maintaining any type of Industrial relations. They can make or break a healthy relationship in any industry. There are many types of trade unions, let us start with Craft and General Unions. This type of union is more prevalent in developed western societies, where the industrial way of life has had a longer history. A craft union is built around a certain specialized skill, which has necessitated a special type of training. Craft unions are therefore open, to members of a certain trade/ skill, like Air Indias navigators union. On the other hand, a general union is open to all members irrespective of their skills cutting across trades/ skills and could include unskilled, semi-skilled, and skilled workers. Closed Shop/Union Shop In such situations the union makes employment conditional on union membership, one variation being that employment is routed through the union, where it acts as a labour supplier and, in another, once employed, an employee is required to join the union. Check Off This is more of money related approach of trade union.The check-off system is a practice where the management collects an employees union dues, as a wage deduction and gives a lump sum amount to the

union. This is a facility that ensures totality of collection of union dues, with no excuse for employees to desist from paying for one reason or the other, as it could happen in a voluntary system. Such a facility is provided only to a recognized union. Blue-Collar and White-Collar Workers A distinction is made on the basis of the level and status of the employee for membership of the unions. All shop floor workers (part of the produc-tion system who operate machines and related systems) are termed blue--collar workers, and all clerical or office staff, who do not work on the shop floor are termed white-collar workers. White-collar workers or non-manual workers form a distinct social group characterised by divergent socioeconomic backgrounds, levels of education, manner of speech, social customs and ideology. They are paid on a monthly basis unlike their blue-collar colleagues, enjoy longer holidays and different privileges as compared to the blue-collar workers. But the most important feature is their nature of work. The white-collar worker is usually involved in a desk job or providing services over the counter. They are generally better job security. This is not only because of the efforts made by the unions but also because of the socialist orientation of the government, which has been manifested, in its labour legislation. The white-collar workers are concentrated in the fields of commerce, transport, storage and communication. The workers engaged in different occupations that fall under this category are professional, administrative, executive and managerial workers, clerical and related workers, sales staff, farm managers, technical, supervisory and other workers engaged in trans-port and communication services or in sports and recreation facilities,artists, musicians. Regardless of the groups position in the organization structure of an industry, they are linked with their employers by being associated with that part of the productive process where authority is exercised and decisions are taken. It has been found that white-collar unionism is expanding. These wor-kers have begun to fight for better pay scales, more fringe benefits, internal promotions, etc. following the method of agitation and litigation. Their strong points are a large membership, sound finance, internal leadership. Today, trade unions wield a lot of power. The trade union leaders play an important role so much so that they influence vital channels of pro-ductive and strategic functions. Economic and social decisions affecting working class people are taken by the Government in consultation with the leaders of the trade union movement. For instance, the trade union leaders participate in the meetings of the Indian Labour Conference, con-sultative bodies, wage boards, etc.

Another recent development as far as white-collar unions are concerned is the militancy among workers. They realise that by exerting pressure on employers through union power their demands will be met sooner. Table White-Collar Workers Sample of occupational groups White-Collar Unions In India unionization among white-collar workers began as early as 1897 and in 1897, the National Union of Railway men of India and Burma was formed. However, unionization among the workers did not have any signi-ficant growth before the Second World War. Since 1947, the growth of unionization among white-collar workers has been due to inflation, the realization of effectiveness of collective bargaining, etc. Of the 31 million white-collar workers, 1.1 million are unionized and there are 1,448 trade unions of white-collar workers.

(B)

Conciliation

Application and scope. (1) Save as otherwise provided by any law for the time being in force and unless the parties have otherwise agreed, this Part shall apply to conciliation of disputes arising out of legal relationship, whether contractual or not and to all proceedings relating thereto. (2) This Part shall not apply where by virtue of any law for the time being in force certain disputes may not be submitted to conciliation. Commencement of conciliation proceedings. (1) The party initiating conciliation shall send to the other party a written invitation to conciliate under this Part, briefly identifying the subject of the dispute. (2) Conciliation proceedings shall commence when the other party accepts in writing the invitation to conciliate. (3) If the other party rejects the invitation, there will be no conciliation proceedings. (4) If the party initiating conciliation does not receive a reply within thirty days from the date on which he sends the invitation, or within

such other period of time as specified in the invitation, he may elect to treat this as a rejection of the invitation to conciliate and if he so elects, he shall inform in writing the other party accordingly. Number of conciliators. (1) There shall be one conciliator unless the parties agree that there shall be two or three conciliators. (2) Where there is more than one conciliator, they ought, as a general rule, to act jointly. Appointment of conciliators. (1) Subject to sub-section (2), (a) in conciliation proceedings with one conciliator, the parties may agree on the name of a sole conciliator; (b) in conciliation proceedings with two conciliators, each party may appoint one conciliator; (c) in conciliation proceedings with three conciliators, each party may appoint one conciliator and the parties may agree on the name of the third conciliator who shall act as the presiding conciliator. (2) Parties may enlist the assistance of a suitable institution or person in connection with the appointment of conciliators, and in particular, (a) a party may request such an institution or person to recommend the names of suitable individuals to act as conciliator; or (b) the parties may agree that the appointment of one or more conciliators be made directly by such an institution or person: Provided that in recommending or appointing individuals to act as conciliator, the institution or person shall have regard to such considerations as are likely to secure the appointment of an independent and impartial conciliator and, with respect to sole or third conciliator, shall take into account the advisability of appointing a conciliator of a nationality other than the nationalities of the parties. Submission of statements to conciliator. (1) The conciliator, upon his appointment, may request each party to submit to him a brief written statement describing the general nature of the dispute and the points at issue. Each party shall send a copy of such statement to the other party. (2) The conciliator may request each party to submit to him a further written statement of his position and the facts and grounds in support thereof, supplemented by any documents and other evidence that such party deems appropriate. The party shall send a copy of such statement,

documents and other evidence to the other party. (3) At any stage of the conciliation proceedings, the conciliator may request a party to submit to him such additional information as he deems appropriate. Explanation. In this section and all the following sections of this Part, the term conciliator applies to a sole conciliator, two or three conciliators as the case may be. Conciliator not bound by certain enactments. The conciliator is not bound by the Code of Civil Procedure, 1908 (5 of 1908) or the Indian Evidence Act, 1872 (1 of 1872). Role of conciliator. (1) The conciliator shall assist the parties in an independent and impartial manner in their attempt to reach an amicable settlement of their dispute. (2) The conciliator shall be guided by principles of objectivity, fairness and justice, giving consideration to, among other things, the rights and obligations of the parties, the usages of the trade concerned and the circumstances surrounding the dispute, including any previous business practices between the parties. (3) The conciliator may conduct the conciliation proceedings in such a manner as he considers appropriate, taking into account the circumstances of the case, the wishes the parties may express, including any request by a party that the conciliator hear oral statements, and the need for a speedy settlement of the dispute. (4) The conciliator may, at any stage of the conciliation proceedings, make proposals for a settlement of the dispute. Such proposals need not be in writing and need not be accompanied by a statement of the reasons therefor. Administrative assistance. In order to facilitate the conduct of the conciliation proceedings, the parties, or the conciliator with the consent of the parties, may arrange for administrative assistance by a suitable institution or person.

(C)

Arbitration:-

Definitions. (1) In this Part, unless the context otherwise requires, (a) arbitration means any arbitration whether or not administered by permanent arbitral institution; (b) arbitration agreement means an agreement referred to in Section 7; (c) arbitral award includes an interim award; (d) arbitral tribunal means a sole arbitrator or a panel of arbitrators; (e) Court means the principal Civil Court of original jurisdiction in a district, and includes the High Court in exercise of its ordinary original civil jurisdiction, having jurisdiction to decide the questions forming the subject-matter of the arbitration if the same has been the subject-matter of a suit, but does not include any civil court of a grade inferior to such principal Civil Court, or any Court of Small Causes; (f) international commercial arbitration means an arbitration relating to disputes arising out of legal relationships, whether contractual or not, considered as commercial under the law in force in India and where at least one of the parties is (i) an individual who is a national of, or habitually resident in, any country other than India; or (ii) a body corporate which is incorporated in any country other than India; or (iii) a company or an association or a body of individuals whose central management and control is exercised in any country other than India; or (iv) the Government of a foreign country; (g) legal representative means a person who in law represents the estate of a deceased person, and includes any person who intermeddles with the estate of the deceased, and, where a party acts in a representative character, the person on whom the estate devolves on the death of the party so acting; (h) party means a party to an arbitration agreement. Scope

(2) This Part shall apply where the place of arbitration is in India. (3) This Part shall not affect any other law for the time being in force by virtue of which certain disputes may not be submitted to arbitration. (4) This part except sub-section (1) of Section 40, Sections 41 and 43 shall apply to every arbitration under any other enactment for the time being in force, as if the arbitration were pursuant to an arbitration agreement and as if that other enactment were an arbitration agreement, except in so far as the provisions of this Part are inconsistent with that other enactment or with any rules made thereunder. (5) Subject to the provisions of sub-section (4), and save in so far as is otherwise provided by any law for the time being in force or in any agreement in force between India and any other country or countries, this Part shall apply to all arbitrations and to all proceedings relating thereto. Construction of references (6) Where this Part, except Section 28, leaves the parties free to determine a certain issue, that freedom shall include the right of the parties to authorise any person including an institution, to determine that issue. (7) An arbitral award made under this Part shall be considered as a domestic award. (8) Where this Part (a) refers to the fact that the parties have agreed or that they may agree, or (b) in any other way refers to an agreement of the parties, that agreement shall include any arbitration rules referred to in that agreement. (9) Where this Part, other than clause (a) of Section 25 or clause (a) of sub-section (2) of Section 32, refers to a claim, it shall also apply to a counterclaim, and where it refers to a defence, it shall also apply to a defence to that counterclaim. 3. Receipt of written communications. (1) agreed by the parties, Unless otherwise

(a) any written communication is deemed to have been received if it is delivered to the addressee personally or at his place of business, habitual residence or mailing address, and (b) if none of the places referred to in clause (a) can be found after making a reasonable inquiry a written communication is deemed to have been received if it is sent to the addressee's last known place of business, habitual residence or mailing address by registered letter or by any other means which provides a record of the attempt to deliver it. (2) The communication is deemed to have been received on the day it is so delivered. (3) This Section does not apply to written communications in respect of proceedings of any judicial authority. 4. Waiver of right to object. A party who knows that (a) any provision of this Part from which the parties may derogate, or (b) any requirement under the arbitration agreement, has not been complied with and yet proceeds with the arbitration without stating his objection to such non-compliance without undue delay or, if a time limit is provided for stating that objection, within that period of time, shall be deemed to have waived his right to so object. 5. Extent of judicial intervention. Notwithstanding anything contained in any other law for the time being in force, in matters governed by this Part, no judicial authority shall intervence except where so provided in this Part tribunal with the consent of the parties, may arrange for administrative assistance by a suitable institution or person. 6. Administrative assistance. In order to facilitate the conduct of the arbital proceedings, the parties, or the arbital.

(D)Strike:-

Every right comes with its own duties. Most powerful rights have more duties attached to them. Today, in each country of globe whether it is democratic, capitalist, socialist, give right to strike to the workers. But this right must be the weapon of last resort because if this right is misused, it will create a problem in the production and financial profit of the industry. This would ultimately affect the economy of the country. Today, most of the countries, especially India, are dependent upon foreign investment and under these circumstances it is necessary that countries who seeks foreign investment must keep some safeguard in there respective industrial laws so that there will be no misuse of right of strike. In India, right to protest is a fundamental right under Article 19 of the Constitution of India. But right to strike is not a fundamental right but a legal right and with this right statutory restriction is attached in the industrial dispute Act, 1947. Position in India In India unlike America right to strike is not expressly recognized by the law. The trade union Act, 1926 for the first time provided limited right to strike by legalizing certain activities of a registered trade union in furtherance of a trade dispute which otherwise breach of common economic law. Now days a right to strike is recognized only to limited extent permissible under the limits laid down by the law itself, as a legitimate weapon of Trade Unions. The right to strike in the Indian constitution set up is not absolute right but it flow from the fundamental right to form union. As every other fundamental right is subject to reasonable restrictions, the same is also the case to form trade unions to give a call to the workers to go on strike and the state can impose reasonable restrictions. In the All India Bank Employees Association v. I. T. , the Supreme Court held,"the right to strike or right to declare lock out may be controlled or restricted by appropriate industrial legislation and the validity of such legislation would have to be tested not with reference to the criteria laid down in clause (4) of article 19 but by totally different considerations." 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 condition are laid down

for the legal strike and if those provisions and conditions are not fulfilled then the strike will be illegal. Provision of valid strike under the Industrial Dispute Act, 1947Section 2(q) of said Act defines the term strike, it says, "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 employment. Whenever employees want to go on strike they have to follow the procedure provided by the Act otherwise there strike deemed to be an illegal strike. Section 22(1) of the Industrial Dispute Act, 1947 put certain prohibitions on the right to strike. It provides that no person employed in public utility service shall go on strike in breach of contract: (a) Without giving to employer notice of strike with in 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. It is to be noted that these provisions do not prohibit the workmen from going on strike but require them to fulfill the condition before going on strike. Further these provisions apply to a public utility service only. The Industrial Dispute Act, 1947 does not specifically mention as to who goes on strike. However, the definition of strike itself suggests that the strikers must be persons, employed in any industry to do work. Notice of strike Notice to strike within six weeks before striking is not necessary where there is already lockout in existence. In mineral Miner Union vs. Kudremukh Iron Ore Co. Ltd., it was held that the provisions of section 22 are mandatory and the date on which the workmen proposed to go on strike should be specified in the notice. If meanwhile the date of strike specified in the notice of strike expires, workmen have to give fresh notice. It may be noted that if a lock out is already in existence and employees want to resort to strike, it is not necessary to give notice as is otherwise required. In Sadual textile Mills v. Their workmen certain workmen struck work as a protest against the lay-off and the

transfer of some workmen from one shift to another without giving four days notice as required by standing order 23. On these grounds a question arose whether the strike was justified. The industrial tribunal answered in affirmative. Against this a writ petition was preferred in the High Court of Rajasthen. Reversing the decision of the Tribunal Justice Wanchoo observed: " ....We are of opinion that what is generally known as a lightning strike like this take place without notice..... And each worker striking ......(is) guilty of misconduct under the standing orders ........and liable to be summarily dismissed.....(as)..... the strike cannot be justified at all. " General prohibition of strikeThe provisions of section 23 are general in nature. It imposes general restrications on declaring strike in breach of contract in the both public as well as non- public utility services in the following circumstances mainly: (a) During the pendency of conciliation proceedings before a board and till the expiry of 7 days after the conclusion of such proceedings; (b) During the pendency and 2 month's after the conclusion of proceedings before a Labour court, Tribunal or National Tribunal; (c) During the pendency and 2 months after the conclusion of arbitrator, when a notification has been issued under sub- section 3 (a) of section 10 A; (d) During any period in which a settlement or award is in operation in respect of any of the matter covered by the settlement or award. The principal object of this section seems to ensure a peaceful atmosphere to enable a conciliation or adjudication or arbitration proceeding to go on smoothly. This section because of its general nature of prohibition covers all strikes irrespective of the subject matter of the dispute pending before the authorities. It is noteworthy that a conciliation proceedings before a conciliation officer is no bar to strike under section 23. In the Ballarpur Collieries Co. v. H. Merchant it was held that where in a pending reference neither the employer nor the workmen were taking any part, it was held that section 23 has no application to the strike declared during the pendency of such reference.

Illegal StrikeSection 24 provides that a strike in contravention of section 22 and 23is illegal. This section is reproduced below:

(1) A strike or a lockout shall be illegal if, (i) It is commenced or declared in contravention of section 22 or section 23; or (ii) It is continued on contravention of an order made under sub section (3) of section 10 or sub section (4-A) of section 10-A. (2) Where a strike or lockout in pursuance of an industrial dispute has already commenced and is in existence all the time of the reference of the dispute to a board, an arbitrator, a Labour court, Tribunal or National Tribunal, the continuance of such strike or lockout shall not be deemed to be illegal;, provided that such strike or lockout was not at its commencement in contravention of the provision of this Act or the continuance thereof was not prohibited under sub section (3) of section 10 or sub section (4-A) of 10-A. (3) A strike declared in the consequence of an illegal lockout shall not be deemed to be illegal. Consequence of illegal Strike- Dismissal of workmenIn M/S Burn & Co. Ltd. V, Their Workmen , it was laid down that mere participation in the strike would not justify suspension or dismissal of workmen. Where the strike was illegal the Supreme Court held that in case of illegal strike the only question of practical importance would be the quantum or kind of punishment. To decide the quantum of punishment a clear distinction has to be made between violent strikers and peaceful strikers. In Punjab National Bank v. Their Employees , it was held that in the case of strike, the employer might bar the entry of the strikers within the premises by adopting effective and legitimate method in that behalf. He may call upon employees to vacate, and, on their refusal to do so, take due steps to suspend them from employment, proceed to hold proper inquires according to the standing order and pass proper orders against them subject to the relevant provisions of the Act. WagesIn Cropton Greaves Ltd. v. Workmen, it was held that in order to entitle the workmen to wages for the period of strike, the strike should be legal and justified. A strike is legal if it does not violate any provision of the statute. It cannot be said to be unjustified unless the reasons for it are entirely perverse or unreasonable. Whether particular strike is justified or not is a question of fact, which has to be judged in the light of the fact and circumstances of each case. The use of force, coercion, violence or acts of sabotage resorted to by the workmen during the strike period which was legal and justified would disentitle them to

wages for strike period. The constitutional bench in Syndicate Bank v. K. Umesh Nayak decided the matter , the Supreme Court held that a strike may be illegal if it contravenes the provision of section 22, 23 or 24 of the Act or of any other law or the terms of employment depending upon the facts of each case. Similarly, a strike may be justified or unjustified depending upon several factors such as the service conditions of the workmen, the nature of demands of the workmen, the cause led to strike, the urgency of the cause or demands of the workmen, the reasons for not resorting to the dispute resolving machinery provided by the Act or the contract of employment or the service rules provided for a machinery to resolve the dispute, resort to strike or lock-out as a direct is prima facie unjustified. This is, particularly so when the provisions of the law or the contract or the service rules in that behalf are breached. For then, the action is also illegal. Right of employer to compensation for loss caused by illegal strikeIn Rothas Industries v. Its Union , the Supreme Court held that the remedy for illegal strike has to be sought exclusively in section 26 of the Act. The award granting compensation to employer for loss of business though illegal strike is illegal because such compensation is not a dispute within the meaning of section 2(k) of the Act. Conclusion- The right to strike is not fundamental and absolute right in India in any special and common law, Whether any undertaking is industry or not. This is a conditional right only available after certain pre-condition are fulfilled. If the constitution maker had intended to confer on the citizen as a fundamental right the right to go on strike, they should have expressly said so. On the basis of the assumption that the right to go on strike has not expressly been conferred under the Article 19(1) (c) of the Constitution. Further his Lordship also referred to the observation in Corpus Juris Secundum that the right to strike is a relative right which can be exercised with due regard to the rights of others. Neither the common law nor the fourteenth Amendment to the federal constitution confers an absolute right to strike. it was held in the case that the strike as a weapon has to be used sparingly for redressal of urgent and pressing grievances when no means are available or when available means have failed to resolve it. It has to be resorted to, to compel the other party to the dispute to see the justness of the demand. It is not to be utilized to work hardship to the society at large so as to strengthen the bargaining power. Every dispute between an employer and employee has to take into consideration the third dimension, viz. the interest of the society as well.

(E)Lockout:-

.Lock-out means temporary closing or 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. [section 2(l)]. - Workers go on strike, while lock-out is to be declared by employer. Wages during strike period - Wages during strike period are payable only if the strike is both legal and justified - Syndicate Bank v. K Umesh Naik (1994) 5 SCC 572 = 1994 AIR SCW 4496 = 1994 II LLJ 836 = 1994 II LLN 1296 = (1994) 3 SCALE 565 = AIR 1995 SC 319 = 1994 II CLR 753 = 1994 LLR 883 (SC constitution bench) - followed in HMT Ltd. v. HMT Head Office Employees Assn 1997 AIR SCW 153 = AIR 1997 SC 585 = 1997 LLR 758. In HAL Employees Union v. Presiding Officer 1996 LLR 673 (SC), it was held that when lockout by employer is legal and justified, workmen are not entitled to payment of wages for the period during which the lock-out continued No work no pay - Principle of No work no pay has been accepted by Supreme Court. - Bank of India v. T S Kelawala 1989 LLR 277 (1990 LLR 313 ?) = 1990(SUP) SCALE 140(2) = (1990) 4 SCC 744 (SC) * Syndicate Bank v. K Umesh Naik (1994) 5 SCC 572 = 1994 AIR SCW 4496 = 1994 II LLJ 836 = 1994 II LLN 1296 = AIR 1995 SC 319 = 1994(3) SCALE 565 = 1994 II CLR 753 = 1994 LLR 883 (SC constitution bench). The principle of no work no pay is also applicable when a man was eligible for promotion but was not promoted and in fact did not work in the higher post. In such case, he is not eligible to get pay for higher scale - Paluru Ramkrishnaiah v. UOI - (1989) 2 SCR 92 - followed in State of Haryana v. OP Gupta - 1996(1) SCALE 602. ILLEGAL STRIKE OR LOCK-OUT Strike or lock out in violation of sections 22 or 23 and when it is continuing in violation of order issued by Government u/s 10(3) (when matter is referred to Conciliation Board or Tribunal) is illegal. [section 24]. Fine upto Rs 50 per day to workman and Rs 1,000 to employer can be imposed. In addition, he can be imprisoned upto one month. [section 26].

Restrictions on employer pending proceedings If any conciliation proceedings or proceedings are pending before arbitrator, labour court or Industrial Tribunal, following restrictions are applicable to employer. NO CHANGE IN CONDITIONS OF SERVICE IN MATTERS RELATED TO DISPUTE Employer shall not make any change in condition of service connected to dispute without permission of authority before whom proceedings are pending. [section 33(1)(a)]. Change which is not related to dispute can be made in accordance with standing orders without any permission. [section 33(2)(a)] NO REMOVAL OF WORKMAN IN MATTERS RELATED TO DISPUTE Employer shall not discharge, dismiss or punish any workman in matter for any misconduct concerned to dispute, without permission of authority before whom proceedings are pending. [section 33(1)(b)]. Punishment which is not connected to dispute can be made in accordance with standing orders without any permission. However, dismissal or discharge of workman will require approval of the action. Application for approval should be made after action is taken. [section 33(2)(b)]. Prior permission is not necessary. Application for approval is required to be submitted after action is already taken. - -In Jaipur Zila Sahakari Bhoomi Vikas Bank v. Shri Ram Gopal 2002 AIR SCW 249 = 2002 LLR 237 (SC 5 member constitution bench), it was held that if the approval is not granted u/s 33(2)(b) of Industrial Disputes Act, the order of dismissal becomes ineffective from the date it was passed and employee becomes entitled to wages from date of dismissal to date of disapproval of application

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