3.

COLLECTIVE
BARGAINING
By Prof. S. K. CHOPRA
 Definition
 Collective Bargaining : Takes place when a number
of workers through their Union (s) enter into a
negotiation as a Bargaining Unit with an Employer
or Group of Employers with the object of reaching
an agreement on the working conditions and
conditions of employment of Workers.
 Effectively: Collective Bargaining is a managerial
tool that facilitates an amicable & mutually
acceptable agreement between the Management &
the Employees/Union(s) to solve all employment
related problems.
 The terms of agreement serve as a code of defining
rights and obligations of each party.
 Collective bargaining
 Collective bargaining is a process of discussions and negotiations
between an employer and a trade union culminating in a written
agreement with the object of reaching an agreement on the working
conditions and conditions of employment of Workers.
The Supreme Court of India has defined the process of collective

bargaining as a technique by which, dispute as to conditions of

employment is resolved amicably by agreement rather than coercion.
Workers, who are generally represented by a trade union, use this

medium to express their grievance about various issues such as

wages and working conditions.
One of the most important aspects of collective bargaining is that it

is a never ending process. It does not finish after an agreement has

been reached. It continues for the life of the agreement and
beyond.
 Features of Collective Bargaining
The main Features/characteristics of Collective
Bargaining:
1. Group Activity.
2. Activity in Levels
- Plant/Unit level
- Industry/National level
- Govt: through Arbitration
3. Flexibility
4. Win – Win situation
5. Builds Relationships
Contd.
 Firstly,the primary condition for the successful process of
collective bargaining is the existence of well-organized and fully
recognized trade unions with well-defined policies. It follows that
collective bargaining is not very useful in the early stages of
development when unions are not well organized.
 Secondly, Collective bargaining can be an effective technique of

settling industrial disputes when there is a spirit of give and take

between the employers and the workers.
 Thirdly, as there is no legal sanction behind the terms and

conditions voluntarily agreed upon, the parties concerned must do

things and act in good faith on the basis of mutual agreement
 Fourthly, much depends upon the moral fiber of the labour

leaders as well as the employers. There should be a complete and

true understanding and appreciation of each other’s view points.
Importance of Collective Bargaining
1.To provide an opportunity to the workers to voice their
issues/problems related to employment.
2. To facilitate reaching a solution acceptable to all the parties
involved.
3. To resolve all conflicts & disputes in a mutually agreeable
manner.
4. To prevent any conflicts/disputes in the future through
mutually signed contracts.
5. Ensure better basic wage and other benefits.
6. Ensure better working conditions and condition of work.
7. Ensure future interest of employees
8. To develop a conducive atmosphere to foster good & healthy
I.R. establishing Industrial peace & Harmony
9. To resolve issues through III Party i.e. Government involvement
in case of conflicting interests of the Parties
10.To enhance productivity & profitability of the Organisation
 Pre-requisites of Collective Bargaining

1. There should be Recognised Union or Single Union.

2. In case of multiple Unions or absence of Recognised
Union, a common agreement among them.
3. Management should be open to the requests of the
Trade Unions and should identify the Unions’ Reps.
4. Agreement should be based on Bi-partite bargaining
& role of third party should be minimised.
5. All the Parties should aim at win-win situation
6. Common interests of Organisation & Employees
should be taken into consideration while reaching
any Agreement.
 Levels of Collective Bargainingin India

1.National Level industry bargaining is

common in core Industries as coal, banking,
etc.
2.Industry cum Regional bargaining is
peculiar to Industries where the private
sector dominates such as cotton, jute,
textiles etc.
3.Enterprise level bargaining at the Company
level.
4.To explain CDA/IDA scales in Govt./PSUs.
 Process of Negotiation
1. A charter of demands
The trade union will notify the employer for initiating
collective bargaining negotiations. The representatives of
the trade union draft a charter of demands which contains
issues related to terms of employment and the working
conditions namely wages and allowances, bonuses, working
hours, benefits, holidays. In some cases, an employer may
also notify the trade union and initiate collective bargaining
negotiations.
2. Preparation for Negotiation:
- Selection of Negotiation Teams
- Identifying Issues, Problems for negotiation
- Facts and figures
- Strong & logical arguments from both the Sides.
Contd....
3. Internal Data
- Employees Performance Reports
- O.T. Figures, Absenteeism, Turn over, Profit &
Loss, Cost per unit/inputs, Accident reports,
copies of recently negotiated contracts.
4. External Data
- Current economy at the local and National level
Cost of living Index, Consumer Price Index for

Industrial workers
Rates of wages prevalent in neighbouring

.
States/similar occupations.
Contd.
5. Negotiations
 Decide an appropriate time & set a proper

climate for negotiations

 Demands by Unions – on higher side
 Offers by Management
 Possible alternatives/opinions to resolve the

issues by both the sides.

 After verbal agreement is reached, a written

agreement is prepared and signed by both

the parties
Contd.
6. Agreement
 Date of commencement of Agreement

 Its duration

 A definition of ‘Terms’ used

 The procedure for settling disputes regarding

interpretation as well as other disputes

 The consequences in the event of breach of agreement.

7. Notification and implementation of Agreement

 The terms of the Agreement reached have to be widely

circulated amongst all the employees.

 Action to be taken for implementation of decisions

taken by concerned Departments.

 Conclusion
 Collective bargaining by trade unions often tends to
be an arm-twisting exercise given the political
affiliation of trade unions in India and it is more about
the show of strength by the trade union as opposed to
a good faith effort to negotiate genuine demands of
workers.
 For a successful process of collective bargaining, it
must begin with proposals rather than demands and
the parties should be ready to negotiate and
compromise. The process of collective bargaining
enables healthy discussions between workers and
employers and facilitate the growth of industrial
relations.
 Conciliation Proceedings
 If the Employer and the workmen fail to arrive at a settlement
through negotiations, the Conciliation Officer may intervene
as a Mediator to reconcile the differences of opinion and help
them in achieving a successful settlement.
 The Conciliation Officer of the Area/Industry is appointed by
the Government to resolve the issues between the
Management and the Union(s) under the provisions of The
Industrial Disputes Act, 1947.
 However, Conciliation Officer is not competent to decide the
various points of issues between the opposite parties.
 Intervention by the Conciliation Officer is mandatory in case
an industrial dispute has arisen in a Public Utility Service and
notice of strike or lock-out (under Section 22) of the ID Act,
1947 has been served.
 Public Utility Service
 Section 2 (n) of the I.D. Act, 1947 "public utility service" means,
 (i) any railway service or any transport service for the carriage of passengers or
goods by air;
 (ia) any service in, or in connection with the working of any major port or dock;
 (ii) any section of an industrial establishment, on the working of which the safety
of the establishment or the workmen employed therein depends;
 (iii) any postal, telegraph or telephone service;
 (iv) any industry which supplies power, light or water to the public;
 (v) any system of public conservancy or sanitation;
 (vi) any industry specified in the First Schedule which the appropriate
Government may, if satisfied that public emergency or public interest so
requires, by notification in the Official Gazette, declare to be a public utility
service for the purposes of this Act, for such period as may be specified in the
notification:
 Provided that the period so specified shall not, in the first instance, exceed six
months but may, by a like notification, be extended from time to time, by any
period not exceeding six months, at any one time if in the opinion of the
appropriate Government public emergency or public interest requires such
extension;
 FIRST SCHEDULE

 [See Section 2(n)(vi)]

 Industries which may be declared to be Public Utility Services under sub-clause
(vi) of clause (n) of Section 2 :
 1. Transport (other than railways) for the carriage of passengers or goods by
land or water;
 2. Banking;
 3. Cement;
 4. Coal;
 5. Cotton textiles;
 6. Foodstuffs;
 7. Iron and steel;
 8. Defence establishments;
 9. Service in hospitals and dispensaries;
 10. Fire brigade service;
 11. India Government Mints;
 12. India Security press;
 13. Copper Mining;
 14. Lead Mining;
First Schedule contd…
15. Zinc Mining;
16 .Iron Ore Mining;
17. Service in any oil-field;
18. Service in uranium industry;
19. Pyrites mining;
20. Security Paper Mill, Hoshangabad;
21. Aeronautical. Engineering industry.
22. Services in the Bank Note Press, Dewas;
23. Phosphorite mining;
24. Magnesite Mining;
25. Currency Note Press;
26. Manufacture or production of mineral oil (crude oil), motor and aviation spirit, diesel

oil, kerosene oil, fuel oil, diverse hydrocarbon oils and their blends including synthetic
fuels, lubricating oils and the like;
27. Service in the Airports Authority of India;
28. Industrial establishments manufacturing or producing nuclear fuel and components,

heavy water and allied chemicals and atomic energy;

29. Processing or production of fuel gases (coal gas, natural gas and the like);
30. Manufacturing of Alumina and Aluminum; and
31. Mining of Bauxite
 Conciliation Officer
 The Industrial Disputes Act, 1947, under its Section 4, provides for
the appropriate government to appoint such number of persons as
it thinks fit to be conciliation officers. Here, the appropriate
government means one in whose jurisdiction the disputes fall.
 While the Labour Commissioner/Additional Labour
Commissioner/Deputy Labour Commissioner is appointed as
conciliation officer for undertakings employing 20 or more
persons, at the State level.
 Officers from Central Labour Commission office are appointed as
Conciliation Officers, in the case of Central government
Departments/Undertakings
 The conciliation officer enjoys the powers of a Civil Court. He is
expected to give decision within 14 days of the commencement of
the conciliation proceedings. The decision given by him is binding
on the parties to the dispute.
 Powers of Conciliation Officer
 Section 11(4) of I.D.Act,1947
 A conciliation officer may enforce the attendance of any
person for the purpose of examination of such person or
call for and inspect any document which he has ground
for considering to be relevant to the industrial
dispute or to be necessary for the purpose of verifying
the implementation of any award or carrying out any
other duty imposed on him under this Act, and for the
aforesaid purposes, the conciliation officer shall have
the same powers as are vested in a Civil Court under the
Code of Civil Procedure, 1908 in respect of enforcing
the attendance of any person and examining him or of
compelling the production of documents
Contd...

 If a settlement is arrived at as a result of

conciliation proceedings, a memorandum
of settlement is worked out and it
becomes binding on all parties concerned
for a period agreed upon.
 The Conciliation Officer shall send a

Report of proceedings to the Government,

as to whether a settlement has been
arrived or not within 14 days of the
commencement of the conciliation
proceedings or within the extended time.
 Report of C.O.
 Sections 11 & 12:
 If no settlement is arrived at, the Conciliation Officer shall, as
soon as practicable after the close of the investigation, send a
full report to the appropriate Government, setting forth the
steps taken by him for ascertaining the facts and circumstances
relating to the dispute and for bringing about a settlement
thereof, and the reasons on account of which a settlement could
be not be reached.
 On consideration of the Report, the appropriate Govt. may, if it
feels necessary, refer the dispute to the Conciliation Board,
Labour Court, Industrial Tribunal or National Tribunal.
 If no such reference is made, the appropriate Govt. shall record
and communicate to the parties concerned the reasons therefor.
 Section 13: Conciliation Board also follows same process of
Conciliation proceedings.
 Enforcement of Bipartite
Agreements
Section 18: Persons on whom settlements are binding
 A settlement arrived at by agreement between the

employer and workmen otherwise than in the course

of conciliation proceeding shall be binding on the
parties to the agreement.
 A settlement arrived at in the course of conciliation

proceedings under I.D. Act, 1947 shall be binding

on all persons who were employed in the
establishment or part of the establishment, as the
case may be, to which the dispute relates on the date
of the dispute and all persons who subsequently
become employed in that establishment or part.
 Effect of settlement with Majority
Union
 A Settlement arrived at in the course of
conciliation proceedings with a recognised
majority union will be binding on all workmen
of the establishment, even to those who
belong to the minority union which had
objected to the settlement.
 Citation: General Secretary, Barauni Telshodak
Mazdoor Union Vs. Joint Chief Labour
Commissioner (Central) and others – Civil
Appeal No: 931of 1990 – 1990 LLR (SC) 465
 Duration of Bipartite Agreements
Section19: Period of operation of settlements
(1) A settlement shall come into operation on such date as is
agreed upon by the parties to the dispute, and if no date is
agreed upon, on the date on which the memorandum of the
settlement is signed by the parties to the dispute.
(2) Such settlement shall be binding for such period as is
agreed upon by the parties, and if no such period is agreed
upon, for a period of six months from the date on which the
memorandum of settlement is signed by the parties to the
dispute, and shall continue to be binding on the parties
after the expiry of the period aforesaid, until the expiry of
two months from the date on which a notice in writing of an
intention to terminate the settlement is given by one of the
parties to the other party or parties to the settlement.
 Arbitration

 Arbitration is a process in which the

conflicting parties agree to refer their
dispute to a neutral third party known as
‘Arbitrator’.
 Arbitration differs from conciliation in the

sense that in arbitration, the arbitrator gives

his judgment on a dispute while in
conciliation, the conciliator involves
disputing parties to reach at a decision.
 In India, there are two types of arbitration:

Voluntary and Compulsory

 Arbitration
There is also a provision for voluntary reference to
arbitration. A reference under Section 10A (1) is not the
act of the appropriate government but the act of the
parties themselves.
Section10 A: Voluntary reference of disputes to arbitration
 (1) Where any industrial dispute exists or is apprehended and the

employer and the workmen agree to refer the dispute to arbitration,

they may, at any time before the dispute has been referred to a
Labour Court or Industrial Tribunal or National Tribunal, by a written
agreement, refer the dispute to arbitration and the reference shall
be to such person or persons (including the presiding officer of a
Labour Court or Tribunal or National Tribunal) as an arbitrator or
arbitrators as may be specified in the arbitration agreement.
 (2) An arbitration agreement referred to in sub-section (1) shall be

in such form and shall be signed by the parties thereto in such

manner as may be prescribed.
Contd.
 (3) A copy of the arbitration agreement shall be forwarded to
the appropriate Government and the Conciliation Officer and
the appropriate Government shall, within one month from the
date of the receipt of such copy, publish the same in the
Official Gazette.
 4) The arbitrator or arbitrators shall investigate the dispute
and submit to the appropriate Government the arbitration
award signed by the arbitrator or all the arbitrators, as the
case may be.
 (4-A) 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 may be in existence on the
date of the reference.
 Compulsory Arbitration

In compulsory arbitration, the

Government can force the
disputing parties to go for
compulsory arbitration.
The judgment given by the

arbitrator is binding on the

parties of dispute.
Disputes/matters referred for Arbitration
under The Arbitration & Conciliation Act,
1996
 Property
 Insurance
 Contract (breach thereof)
 Business/Partnership disputes
 Family disputes (except divorce

matters)
 Construction
 Commercial recoveries
Disputes/matters NOT referred for
Arbitration(as settled by Courts)
 Matter of criminal nature or Criminal cases
 Minor guardianship (Proceedings for appointment of a guardian
for a Minor)
 Will related matters (validity of will)
 Matrimonial (divorce cases, child custody, judicial separation)
 Matters concerning Public Charitable Trusts
 Insolvency matters, winding up matters,
 Issue of succession certificate,
 Eviction or tenancy matters governed by special statutes,
 Disputes arising from and founded on an illegal contract or
contract was void ab initio.
Article /Judgement on Arbitration
of Industrial Disputes

 Torefer/study : Article/Judgement
on Arbitration of Industrial
Disputes under I D Act, 1947 or
Arbitration & Conciliation Act,
1996.
 STRIKE
 Section 2 (q) of I.D. ACT, 1947
“Strike”
 Cessation or suspension of work by
 Group of Employees employed in any Industry
 Acting in combination or
 Concerted refusal or
 Refusal under common understanding:-
 To continue to work or
 To accept employment
CONTD...
Three (3) ingredients of
“Strike” :
1. Plurality of workmen
2. Cessation of work or refusal
to do work and
3. Combined or concerted
action
 TYPES OF STRIKES
A. PRIMARY STRIKES :
1. Token or Protest Strike
2. Hunger Strike
3. Stay-away Strike
4. Stay-in or sit-down Strike
5. Pen-Down or Tool-Down Strike
6. Lightening or Wild-cat Strike
7. Work to Rule
8. Go-Slow Tactics ?
9. Gherao
CONTD..
B. SECONDARY OR SYMPATHY STRIKE
 By another Group of Persons
 Against Third Party

C. OTHER STRIKES
 General
 Particular
 Political Bandhs or Hartals
 Lock out
 Section 2 (L)
 Lock out is temporary shutting down or closing down
the place of business by the employer.
 It differs from closure of the undertaking. While in the
case of ‘closure’, the employer does not merely close
down the place of business but finally closes the
business itself, in the case of ‘Lock-out’, the employer
closes the place of business only.
 Strike and lock-out are two coercive measures
resorted to by the employees and the employers,
respectively, for compelling the employers or
employees to accept their demands or conditions of
service.
 General Prohibition of Strikes and
Lock-Outs
 Section 23:
 No workman who is employed in an industrial establishment
shall go on strike in breach of contract and no employer of
any such workman shall declare a lock-out.
(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 Labour Court,
Tribunal or National Tribunal and two months after 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 sub-
section (3A) of section 10A
 Prohibition of Strikes and Lock Outs
in a Public Utility Service
Section 22(1)
No person employed in a public utility service shall go

on strike in breach of contract-

(a)Without giving to the employer notice of strike, as
hereinafter provided, within six weeks before striking;
(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.
 Lock-out
 Section 22(2)
 No employer carrying on any public utility service
shall lock-out and of his workmen-
(a) Without giving them notice of lock-out as
hereinafter provided, within six weeks before
locking out; or
(b) Within fourteen days of giving such notice; or
(c) Before the expiry of the date of lock-out 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
 Judgements on lock outs
 As held in Bhaskaran Vs. SDO (1982) II KLT 248 Kerala;
Posts and Telegraphs Department being Public Utility
Service enterprise cannot declare lockout without notice.
 Section 22 (2) prohibits such strike or lockout unless

the requirements of this provision are complied with.

 As held by the SC in TISCO Ltd. Vs. Workmen, TISCO AIR

1990 SC 1, the company was industry carrying out

Public Utility Service activity and that is why notice as
per Section 22 was necessary before
declaration/commencement of lockout.
 As the same requirement was not followed, the lockout

was held to be illegal as per Sections 22 and 24 of the

ID Act.
Contd.
 In HAL Employees Union v Presiding Officer and Another
(1996) 4 SCC 223, the Company had declared lockout for
15 days and deducted wages of employees for that
period. The dispute regarding payment of the wages for
lockout period was referred to the Industrial Tribunal for
adjudication under Section 4K of the UP ID Act 1947, the
provisions were similar to Section 10(1) (c) ID Act, 1947.
 The Tribunal after considering the evidences before it

held that as the lockout was just and lawful as declared in

consequence of an illegal strike organised by the Trade
Union hence no relief was granted to the employees.
 Therefore, the lockout was held as legal and justified. The

decision was reaffirmed by the SC.

 Position regarding right to strike
 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 conditions are
laid down for the legal strike are not fulfilled then the strike will be
illegal
 Conclusion
 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-
conditions 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
Legality and Illegality of Strikes
 Section 24 lays down the grounds on which a strike
can be declared to be legal or illegal:
 i. if it is in contravention to Section 22 or 23.
 ii. Or it is in contravention to of an order made under

Section 10(3) or 4-A of Sec 10 10-A of ID Act, 1947.

A strike shall not be illegal if:
i. It at its commencement is not in contravention to
the provisions of the Act.
ii. Its continuance is not prohibited under Section
10(3).
iii. It is declared in consequence of an illegal lockout.
 Justified or Unjustified Strikes.
 The act does not talk of justified or
unjustified strikes.
 The concept of just strike and unjust

strike has been developed by the

judiciary in order to develop the
concept that a strike should be
resorted to only when other remedies
have been exhausted.
Contd.
 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
reasons for not resorting to the dispute resolving
machinery provided by the Act or the contract the
cause or demands of the workmen, the 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 is 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.
Contd.
 Legal & Justified strike:
 A strike may be legal if it is commenced without

the contravention of the provisions and may be

justified if it is bona fide resorted to for the
betterment of services conditions of workers
 Illegal but justified strike: When in contravention

to the provisions of the act but in furtherance of

mixed (legal and illegal) demands.
 Illegal but justified strike: When it is in

contravention of the provisions of the act but

undertaken in a peaceful manner.
Can an illegal strike be justified
 Consequences:
 Wages: In case the strike is legal and justified,

the workmen are entitled to wages for the period

of strike and vice versa.
 But this is changed in Bank of India vs. TS

Kelewala, The SC invoked the doctrine of no

work and no pay irrespective of justified are not.
 It was observed that the legality of the strike will

only save the worker from disciplinary

proceedings but irrespective of legality or
illegality the principle of no work no pay.
Judgements on Wages for the strike
period
 The workmen shall be entitled to wages
for the period of strike, where it is
found that the strike is neither illegal
nor unjustified.
 Citation: Swastik Textile Engg. Pvt. Ltd.

Vs. Rajen Singh Sant Singh & Others

1984 Lab I.C. 139 (Gujarat HC).
 Case Study: Unjustified Strike
 FACTS:
1. 9.8.1955 the union submitted to the management
a charter of 15 demands. The management did not
agree to the principal demands.
2. A Conciliation Officer was appointed by both
parties but it was in vain. The last meeting was held
on 30.11.1995. The following day the union gave a
strike.
3. The strike continued till 5.1.1996 when the Govt.
referred the dispute to the industrial tribunal which
had granted all of the demands.
 Was the strike justified?
 Issues
 In this Case, the SC observed that when the efforts by the
conciliation officer failed, the union knew that the next step would
be that the C.O. would provide a report to the Government.
 On the basis of the report, the Union was to request the

Government to refer the matter to the Industrial Tribunal. The

Union did not choose to wait and after giving notice to the
Management, went on strike.
 A strike may be legal if it is commenced without the contravention

of the provisions and may be justified if it is bona fide resorted to

for the betterment of services conditions of workers. A strike may
be both legal and justified at the commencement but as it
progresses the strikers may resort to the acts of violence and
sabotage. Though such a strike may not become illegal, it will
certainly become unjustified with the resort to such acts on the part
of the workmen.
Chandramalai Estate Vs. its workmen
 In this case, the Supreme Court observed that on one
hand it has to be remembered that strike is legitimate
and sometimes unavoidable weapon in the hands of
the labor it is equally important to remember that
indiscriminate and hasty use of this weapon should
be not encouraged. The workmen might have waited
for some time after conciliation efforts failed before
starting a strike and in the meantime to have asked
the Government to make the reference. They did not
wait at all. The workmen actually struck work on the
very next day when conciliation failed.
 Thus, the strike was unjustified.
 Janakiram Naidu case: Mysore Lamp Works
Workmen Vs. Management of Mysore Lamp
Works and Another (1970)
 In the Mysore Lamp Works Workmen Vs.
Management of Mysore Lamp Works and Another
(1970) 2MysLJ 364, the strike was resorted to, not
for securing any improvement in the conditions of
service of workmen like, pay, dearness allowance,
bonus, etc. but to compel the management to
reinstate Janakiram Naidu.
 As held by the High Court, Janakiram Naidu was

dismissed for misconduct, after holding a proper

enquiry in which such misconduct was
established.
Contd.
Before resorting to strike to enforce their demand
to reinstate him, no attempt was made by the
workmen to negotiate with the management in this
regard, nor did the workmen approach the
Government for making a reference to the
Industrial Tribunal of the dispute relating to
dismissal of Janakiram Naidu. The workmen
resorted to strike hastily.
 In the circumstance, we think the strike, though

not illegal, was not justified and therefore the

workmen could not claim wages on justifiable basis
for the period of strike.
 Consequence of illegal Strike

 Dismissal of workmen-
In M/S Burn & Co. Ltd. Vs 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
 Crompton Greaves Ltd. Vs. Workmen
 In Crompton 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.
Contd.
 The constitutional bench in Syndicate Bank
Vs. 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 very dispute between
an employer and employee has to take in to
consideration the third dimension i.e. the
interest of the society as a whole.
Contd.
 The SC taking the previous stand observed that wages can be
given only when the strike is legal and justified. The Apex
Court observed:
 1. A strike or a lockout should be used sparingly. Where there

is an established dispute resolution mechanism the parties

should opt for the same.
 2. A strike or a lockout is a right but often tends to become

power in case of disproportionate bargaining power.

 3. It takes both labor and capital to take responsibility of the

public resources and as a result no party can hold these

resources at ransom.
 4. In cases of public sector the traditional hierarchy of

management and workman does not exist because of the fact

that both are employees.
Contd.
 In this connection, it is pertinent to note that in the case
of Bank of India Vs. T.S. Kelawala & Others, the Supreme
Court had observed that the workmen are not entitled to
wages for the strike period, irrespective of whether the
strike is legal or illegal.
 However, a larger bench of the Supreme Court had
earlier upheld the claim for wages for the strike period,
where the strike was held to be neither illegal nor
unjustified.
 Citation: Churakulam Tea Estate Vs. its workmen (1969)II
LLJ 407 (SC); followed in Crompton Greaves Ltd. Vs.
Workmen (1978) II LLJ 80 (SC); LIC of India & Others Vs.
Amalendu Gupta & Others (1988) II LLJ 495 (Cl.), and S.B.
Staff Union (Madras Circle) Vs. SBI (1991)I LLJ 163 (Mad.)
Contd.
 And where there are 2 pronouncements of the
Supreme Court, suggesting or indicating views,
the ruling of the decision rendered by the larger
Bench should be adopted.
 Citation: State of U.P. Vs. Ramachandra (1977) I

LLKJ 200 (SC).

 In a judgment the full Bench of the Supreme

Court has authoritatively laid down the law

relating to wages during the strike period and
held that workmen would not be entitled to
wages for the strike period unless the strike was
legal and also justified.
Contd.
 However, exception has been made in a case where a strike
even if illegal was justified by the circumstances in which it
was resorted to. For instance, if in a plant there is a gas
leakage and the workers cease or refuse to work suddenly,
technically it may constitute an illegal strike for want of notice.
In such a case, the Court has indicated that wages for the
period of strike cannot be denied to the workmen.
 The use of force or violence or acts of sabotage resorted to by

the workmen during a strike disentitles them to wages for the

strike period.
 Thus, it is concluded that where a strike is found to be legal

and justified and workmen did not resort to force and

violence, workmen are entitled to wages for the period of
strike.
 Citation: Crompton Greaves Vs. Workmen, AIR 1978 SC 1489.
QUESTIONS & DISCUSSIONS
THANK YOU
S. K. CHOPRA
+919456590007
skchopra57@rediffmail.com