In 2018, 86 industrial disputes occurred in India, in which 742,968 workers were involved, and 3,149,554 man-days were lost. Contrary to 2017, 112 disputes involved  762,832 workers and lost 5,233,467 workdays. Wages & Allowances were the main cause of such issues during this period, followed by the Charter of Demands.

So what is the factor fuelling these lost man-days?

These are strikes and lockouts in labour law. In case of labour disputes, such primary tools are employed by worker’s unions and factory owners. These actions significantly impact the economy, particularly in sectors with high unionisation rates.

Therefore, understanding the legal framework surrounding strikes and lockouts is crucial for workers and employers. So let’s get going.

The Concept of Strike and Lockout

What is a Strike in Labour Law?

As mentioned in Section 2(q) of the Industrial Disputes Act, 1947 strike in labour law can be defined as “a group of workers in an industry stopping work together, or a joint refusal by any number of workers, who are or have been employed, to continue working or accept employment.”

As decided in the State of Bihar vs Deodas Jha case, a short stoppage or refusal to work can be regarded as a strike.

Is It a Fundamental Right?

After gaining a simplified view of what is strike in labour law, let’s assess its value.

In another case, the Supreme Court emphasised that strike is not a fundamental right. Rather, it is how workers express their grievances to their employers in hopes of seeking resolution. As stated in Articles 19(1)(c) and 19(1)(a), although the workers union has the freedom of speech and expression, a right to strike is not derived from such provisions.

Are Strikes Legal or Illegal?

Section 22 of the ID Act forbids strikes in Public Utility Services, and Section 23 prohibits such actions in factories, making them mostly illegal. Contrary to the above statement, Section 24(3) specifies that these actions will not be considered illegal when taken in response to an illegal lockout.

They can also become legal, as outlined by Section 20(1) when the strike does not violate any provision of the statute. Additionally, it can be legal when the proceedings begin after the conciliation officer receives a notice or when the issue is referred to the board.

Based on phenomena of numerous strikes around the country, the various types of strikes in labour law are:

  • Economic strikes
  • Sympathy strikes
  • General strikes
  • Sit-down strikes
  • Slow down strikes
  • Hunger strikes

Lockouts

Concept of Lockout

As provided in Section 2(I) of The Industrial Disputes Act, 1947, lockout definition in labour law is the “temporary closure of a workplace, the suspension of work, or an employer’s refusal to continue employing any number of workers during their period of employment.” Simply put, it happens when an employer temporarily shuts down their workplace.

After knowing what is lockout in labour law, let us explore the conditions that must be met:

  • Temporary closing down of the workplace by the owner
  • Refusal of the owner to continue employing workers
  • Such actions must be influenced by coercion
  • The action must be related to an industry mentioned in the lockout section in labour law
  • The factory must have been facing some disputes before the lockout

Although Section 2(1) defines this action, the current concept is not comprehensive. The Trade Dispute Act of 1929 stated that if an owner compels their worker to accept terms and conditions, compelling them with a lockout, it will be considered an unfair labour practice. Omits of such clauses make the current definition incomplete.

After learning the meaning of lockout in labour law and its conditions, let us understand the consequences of this action.

Legal Status

Illegal lockout in labour law can happen when Section 10(3) and Section 10A(4A) are violated. Apart from this, it is considered illegal if such actions are conducted without complying with sections 22 and 23. Contrarily, if such actions are declared in response to an illegal strike, they can serve as a legal and powerful tool for the employer.

The Difference Between Strike and Lockout

Here are some of the typical differences between strike and lockout in labour law:

Aspects

Strikes

Lockouts

Initiator

Initiated by labour unions or employees

Initiated by employers

Purpose

Pressurises employer to address grievances or demands

Pressurises workers to accept employer’s conditions

Duration

Temporary cessation of work

Temporary shutdown of workplace

Collective Action

Employees take collective action

The action is owner-centric in case of lockout in labour law

Motivation

Grievances of employees

The labour disputes can often be related to negotiations

Legal Regulations

They are subject to legal regulations; violations can lead to legal proceedings

Can escalate to legal issues

Penalties

Penalties for strike and lockout in labour law notes are discussed under [Section 26] of the Industrial Dispute Act 1947.

  • If a worker is found to continue a strike, which is illegal under this act, it shall be punishable by imprisonment for up to 1 month or a fine of Rs 50 or both.
  • If an employer continues illegal lockouts, they can be imprisoned for a month or fined 1000 rupees.

Bottom Line

Although they might be perceived as tools for fighting against injustice, there can be other ways to implement one’s rights. By contacting a licensed lawyer, one can receive assistance for the justice they deserve.