MADHU, INC KANNUR IMPORTANT LABOUR AND FACTORY LEGISLATIONS IN INDIA MADHU.T.K.
V. EVALUATION OF LABOUR LEGISLATIONS. -...
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183
V. EVALUATION OF LABOUR LEGISLATIONS.
i) Legislations relating to Industrial Establishments.
ii) Legislations relating to Wages and Bonus.
iii) Legislations relating to Social Security and Labour Welfare.
iv) Legislations relating to Induatrial Relations.
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Chapter V Evaluation Of Labour Legislation
The objectives of labour Legislations are protection of individual
life and furtherance of Social Walfare. It canot be isolated because
legislations reflect the social paint of view which is largely determined
by the economic needs of the society. The study of these legislations
help us to understand as to why under capitalist conditions of economic
development, freedom of activities without much control is important.
The capitalist countries encourage acumulation of capital as they
distribute only a bare minimum to workers. If the workers remained
silent and there is no compelling force to protect their rights, the capitalist
aproach of treating the workers as an inferior implement in process
of production would have continued. The capitalist would take it as
granted their uncontr©led right to accumulate profit that they are deriving
as result of the production in which the labour is natural partner.
The development of the labour legislations is a story of many
struggles. The workers had to struggle and suffer in the past for improvements
in their working conditions. The colonial rulers treated the labour as a
sives and exploited them. The Labour legislation as we see today is ' t
the result of the struggle and suffering of our pradecessers, who disregarding
all the suffering , fought for the betterment of their brothers. For the
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furtherance of the workers interest, enlightened employers civilised governments,
philantropists and other right thinking people worked together to promote
labour welfre and provide the working class a decent living. Each Labour
enactment has a histoty of its own with political economic and social
back-ground (1). The cpitalist system that supported the laissez-faire considered
the competitive condition as ideal and it was heavily against the interest
of workers. The freedom of equality offered by the system was only
in words. 'Every man was free if he had a job, independance because
he could live it and equal because he had an oppportunity to be
measured by his ability to earn a living. Thus, freedom was conditional
and 'equality' came to mean, equality for competitive strife'(2). It is
unjust to consider unequal person equal and this is precisely what a
the economic doctrine and the legcil principle of the past procjmed.
The fight of the workers for right to form association and their right
to strike was an attempt to correct the inequality which was inherant
in the principle of inequality before law.
The Labour legislation is based on the Principles which are opposed
to the concept of freedom and equality and doctrine of individulism
and non-interference. Labour legislations, therefore, has four major principles
before them. These principles are social justice, social welfare, national
economy and international uniformity. Legislative measures are to be
undertaken for the achievement of these principles and there are possiibilities
of conflict between these principles to act as a compromising force.
Equality before law alone cannot ensure social justice in a society where
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there is an economic inequality. Political equality and equality before
the law become useless in such a condition. An employer is far more
supenor than a worker as he has got more education and economic
power while the worker does not have both. Social justice demands
that these inequalities should be removed and opportunities should be
provided to all. In the field of industries, the role of social justice
can be achieved by granting right to association, right to collective bargaining,
right to strike, and also providing special security of services. Even
if an ideal society envisaged these principles this would remain only
on paper if it is not enforced with suitable legislations. The establishment
of a welfare society is a new thinking but an essential requirement
of social justice. The economic needs of the countries also got great
impact on the labour legislations and its implementation. The national
income depends on the production and nations canot become ecd%icaly
strong without industrial production for its efforts to achieve a welfare
state.
(i) Legislations relating to Factones.
The Indian Factories Act, 1948 has undergone a series of changes
since its first enactment in 1881. The first act was mainly to protect
the health and safety measures and control the employment of children
in factories(3). In 1891 the act was amended to enlarge the defination
of factory to include all such establishment with 50 or more workers
working in it. Local Governments were given powers to include factories
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with 20 or more persons to bring into the preview of the Act. The
Act undergone changes in 1911 and 1934. The 1934 amendment was
to incorporate the recommendations of the Royal Commission on labour.
But the working of the Act reaveled that there was a need of total
revision with a view to extend its protective provisions to the large
number of industrial establishments. Therefore to consolidate all the provisions
and amendments, a new Factory Act was introduced and passed in
August, 1948. While speaking on this Act the then Labour Minister
Said that the Act intended to incorporate some of the conventions passed
by the ILO. The provisions relating to the periodical medical examination
of young persons and submission of plans of factory buildings recommended
under the International Labour Conventions (4). The important changes
intrcuced under the 1948 Act are (1). Abolition of the distinction between
seasonal and nonseaso'̂ Al factories,(2) widening of the definition of the
term 'Factory' to cover all industrial establishment employing 10 or more
workers where power was used (3) raising of minimum age of employment
of children from 12 to 14 years and reduction of permissible daily
working hours to 4 & 1/2 hours (4). State Govts were empowered
to make rules regarding the participation of the workers in the management
of arrangements, for the welfare of workers.
The technological development and use of hazardous materials
in the process of production made it necessary to introduce stringent
safety measures in factories. The Bhopal accident of 1984 is an eye
opiier to all those who are interested in the safety of industnal workers.
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Therefore the Factory Act again came into drastic changes in 1987
due to strong public opinion. Section 7 A has been inserted into the
Act to cast general duties on the occupier to ensure the health, safety
and welfare of the workers. Section 7 B deals with the obligation on
the manufacturer to ensure safety with regards to articles and substance
for use in factories. It is the duty of the employer to ensure that
the articles are designed and constructed as to be safe without risk
to the health of the worker. Sections were also introduced for taking
precautions in the use of portable lights and emergency exit provisions
in the factory building for the escape of the workers in contigency
like fire.
Section 41 G inserted in the Act provides participation of workers
in safety measures alongwith the management. The amendment Act of
1987 also gives right to workers, to warn about imminent danger. The
penalty clause was also changed and the penalties have been enhanced
for contravention of the provisions of the Acts or of any rule a punishment
upto 3 years of imprisonment or a fine of Rs. 1000 will be imposed
for each day of contravention. The object of the Act is to prevent
the employer from engaging workers for long hours of employment and
also provide a healthy atmosphere in the manufacturing unit. To implement
the provisios of the Act Inspectors were appointed and the employer
should keep proper records of the inspection and submission of returns.
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Labour legislations are enacted with the object of promoting general
welfare and also to meet some urgent social demands. The enactments
can achieve the objective in removing the evils more effectively. Factory
Act belongs to this categery and therefore, needs liberal interpretation.
Thus factory Act is a social enactment to achieve social reforms and
must receive liberal construction (5). There is no doubt that the Factory
Act is a labour welfare enactment made with a view to regulate working
conditions in the factories and provide with the health, safety and welfare
measures. It should be viewed liberally so that working class should
be benefited but at the same time it should be kept in mind that
the employer should not be put into undue harassment. The Supreme
Court has observed that the title and preamble of the Act would show
that this is an Act to consolidate and amend the law regulating labour
in factories.(6) The provision for appointment of inspector is to ensure
that the object of the Act are achieved and the workers are benefited
by the provisions.
A wide range of activities carrying out with the help of human
lab our are brought under the preview of Factory Act. The Supreme
Court while deciding the disputes arising out of the definition of the
Factories Act taken a liberal view to mitigate the suffering of the workers.
The decision on the salt manufactoring process and tobacco drying process
IS a pointer to the lenient view. The Court was very liberal in bringing
the kitchen attached to the hotel under the definition of factories. But
at the same time the Court refused to accept the contention of the
hospital workers who are engaged to wash the clothes for the use
of the hospital to be brought under the preview of the Act. These
workers are regulated under the service conditions of the employees
working in the hospital and therefore capot claim double benefit. It
can be observed that the court gives its verdict taking into consideration
not only the implied meaning of the Act but also its spirit. The factories
Act, therefore, has played a very important role in the improvement
of the working conditions of the workers employed in factories in India.
The Act undergone changes many times since its enactment is an
indication that it is very flexible to adjust with the changing needs
of the society.
Legislation Relating To The Payment Of Wages :
The term wage has different meaning for the worker, the Trade
Union Leader and for the Management. The Worker is concerned with
the real wage that he can take home and its purchasing power for
his and his family's maintenance. For Trade Unionist, it is subject on
which bargaining can be made with the employer. It is always a bone
of contention between the trade union and the management. For Hie
Management. it is a major item on which they have to speni a large
sum of money and directly related to the cost of production. Wage
therefore, can be said as a sum of money paid under contract by
an employer for the service he has rendered. It is in fact a contract
income fixed between employers and employees during the course of
their employment. The State is interested in the wage structure on
various reasons. The cost of production should be such that should
encourage the production activity to strengthen the national economy.
At the same time worker being the citizen of the state has to be
provided with reasonable wage for his maintenance.
Wage includes payment of bonus, gratuity, overtime, deamess
allowance, holiday allowances, leave salary, compensation dunng lock
outs, lay offs etc. as per the terms of employment.
Employees came under the provision of the Act if the wage
penod does not exceed one month. The Act authorises deduction from
the wages for absence from duty, damage or loss, amenities and service
given by the employer, recovery of advances, income-tax, house rent
provident-fund, deduction ordered by the court, deduction lor cooperative
societies and insurance schemes. For implementation of this Act a spec B 1
machinery has been provided. This is under the Administration Labour
Department and the Factory Inspectors were entrusted with its enforcement.
While factories and establishments are going on increasing, the implementation
machinery is still the same. It is but natural that the compliance of
the provisions of the Act is gradually decreasing. There is no separate
staff for the inspection of the compliance of the provision of the Act.
The inspection is done alongwith the inspection under Factory's Act
"1948. The factory inspectors are loaded with heavy work and it is
not possible for them to look into the implementation aspect of the
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payment of wages Act. Normally an inspection is conducted in an establishment
on receipt of complaints regarding illegal deduction from wages. The
c\ctual inspection of establishment to verify the implementation of the
payment of Wages Act provisions is gradually decreasing. As much as
89% of the establishments remain untouched by the Factory Ispectors
who are entrusted with the work of payment of wages Act. (14)
But there is another picture that as and when complaints are
received appropriate action is taken to redress the same. Most of the
complaints get quick attention and disposed of during the samme year.
The causes of complaints are various, and as much as 90% of this
complaints are attended and settled. (15)
For habitual offenders legal procedings are initiated and this work
as a deferent to these who do not observe the provisions of the
Act. But there is a tendency to violate the payment of wages Act
by the employer atleast on a smaller scale. The labour departments
are making efforts to get conviction for those who are habitually violating
the provisions of the Act.(16) It is also important to note that 30%
of the inspected establishments found to be violating the provisions of
the Act, and it can be easily assumed that with permanent inspection
authority and regular inspection can bring much more cases than what
is detected today.
In the interest of workers, it is essential to bring down the
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occurance ot violation of the Act to a minimum possible extent in
several cases the court has decided that with-holding of wages is in
fact an imposition of penalty and as such penalty cannot be imposed
except by framing charges and holding an enquiry, that is to say the
employer has no nght to with-hold the wages due to a worker for
any reason. It would amount to an imposition of penalty and therefore
far with-holding the wages proper charges should be framed and enquiry
should be made.(18) For continued absence from duty the wages can
be deducted. But the principles of natural justice can be invoked in
case of penal or further deduction of wages under the provision to
section 9-2. (19) The authorities under the Act has got power to ivestigate
into the deduction of payment under the payment of wages Act for
absence from duty. If the circumstances under which the worker remained
absent was beyond his control^ the wages cannot be deducted. The
workmen prevented from attending to their duties by the organisers of
the bandh is entitled for wages. Like-wise the recovery from the wages
of . workmen can be effected as a punishment only after giving proper
notice and also on receipt of the explanation of the workman.(20)
It is observed that a large number of workers engaged ••.industrial
establishments are not aware of the payment of wages Act and not
even heard of it. The enactment was in force for more than five decades.
This level of ignorance about the laws established for their purposes
is disheartening. This act has confined to books only. Even those who
were aware of the Act is simply know of its existance but they had
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no detailed knowledge about the provisions of the Act. The workers'
Education Scheme has been itroduced to make the Workers aware of
their rights and responsibilities. But this programme had achieved only
a limited success. Among the more educated workers the awareness
seem to be on the higher side while the uneducated had no knowledge.
It is a sadening picture and the beneficiaries of the Act are unware
• of the enactment that intent to protect them. So action should be taken
to make the workers aware of the protective legislations introduced to
benefit them. This can be done by Trade Union Leaders, Educationists
and Social Workers. Othenwise the legislation intended for the protection
would remain as only a paper legislation and the poor workers would
continue to be exploited.
The h/linimum Wages Act, 1948 :
Most of the labour problems arise out of the pyment of wages
.in indstriai society.the stndard of living depends on the wage the worker
receives for his work. In an economy of rising prices the wage earners
constantly demand for higher wages and that always become cause
for Industrial struggle. So the wage structure has to be determined
by taking into consideration the purchasing powar of the compensation.
While adopting the wage policy.the various social factors alongwith economic
theories have to be taken into account. Wage polky should be pragmatic,
though it does not follow-up that it has to be unscientific and remain
simply a matter of expediency.(21}
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The problem of wages has to be dealt not only with great
tact and imigination some-times with boldness, but also requires a very
close and careful study of all the information and data available-historical,
economic as well as statistical-in order to ensure a really scientific and
help-ful approch to the problem. (22) In the begining in India the sole
criteria for determining wage was supply and demand. Only after World
war I, the workers living in cities demanded a certain wage structure
to protect their interest in a rising price economy. In 1918 Mahatma
Gandhi brought about a settlement of wage demand by Ahmedabad
workers without any intervention of the government. But as a consequent
of Industrial Disptes that took place in the later part of 1920s, made
it necessary for government intervention. The Royal Commission on Labour
has given a factual account of wage level in various industries and
also made suggestions for standardisation of wage structure. The International
Labour Organisation adopted minimum wage convention in 1928. The
Royal Commision had suggested a minimum wage fixing machinery to
fix a certain criteria for minimum wages in industries. The commission
was more concerned with prohibition of unfair deduction rather than
fixing minimum wages. The commission said 'Indian Industry is not a
world in itself, it is an element, and by no means the most important
means of the economic life of the community. Care must be taken,
therefore, to ensure that, in adopting measures for betterment of industry
or of industrial workers, the interest of the community as a whole are
not overlooked.' (23) But the demand for minimum wages continued
19€
and even the Indian National Congress demanded minimum wages and
made it a point in the Election Manifasto for general election of the
Cantral Assembly. From industrial sector the demand for minimum wages
spread to every field of industrial and businss activi^lies and also to
the agricultural sector. So it would be interesting to have a reveiw
on the wages Act J 948.
The minimum wages bill was introduced in Central Legislative
Assembly in April 1946. It became an Act in March 1948. It can
be considered as a land mark legislation in the history of Indian Labour
because the very concept of this enactment was revolutionary. This was
the first step to prevent exploitation of the labour by paying them unduly
low wage. It is to provide social justice to workmen employed in industries.
So the theory of Laissez-faire is no longer relevant so far as it concerned
with labour. Wages canot be fixed according to the supply and demand
theory. It was necessary to fix certain minimum rate of wages to the
workers because the supply of labour was much more than the demand.
So it became necessary to force the employer to pay a certain amount
as minimum wage to the worker so that he can maintain atleast the
bare necessities of life. The directive principles of the State Policy demand'
the protection of labourers against exploitation and therefore it is absolutely
necessary to impose restriction upon the freedom of contract on employers.
The restrictions imposed by minimum wages Act to pay a certain amount
as a IVIinimum wage is not violative of the constitution on the otherhand
taking of labour or service of any person for payment less than
197
the prescribed minimum wages is violative of fundamental rigfits to such
labourers and enjoin upon them not to give forced labour. (24) It is
also held by the court that less payment of minimum wage on the
ground of less performance or output is also illegal.(25) The provisions
of the minimum wages Act is to specify minimum wages for certain
specified industries by notifications is held to be valid because setting
minimum wages in industries is to avoid exploitation of labour due to
their weak bargaining capacity as such it is valid under the constitution.
(26) The court also held that even rate for peace work can also be
fixed by the apppropriate government on par with similar work. The
Government has also power under the Act to prescribe a minimum
guarantee money for every day if there is insufficient raw materials
for the work in peace rate. (27) The workmen working under peace-rate
when present himself for collecting raw material should be given guaranteed
wages if. the raw materials are not supplied to him. This is mainly
to mitigate the suffering of beedi workers. The appropriate government
under this Act have got power to revise the minimum wages from
time to time keeping in view of the cost of living and other factors.
Minimum wage is that any industrial employer should have to
pay, to continue his business or industry othenwise he has no right
to employ a workman and carry out production. The wages given over
and above the minimum wage may be treated as fair wage, in a
sense that it is adequate to cover the normal needs of the average
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employee regarded as human being, who has the right to get need
based minimum wages from the employer. Living wage is still above
the fair wage. It enables the worker to maintain himself well and also
his family in a very good condition in which he can put his best
in the process of industrial production. It may be difficult for our national
economy to provide living wage for all the workers, but it should be
the objective of every socially conscious government to achieve it.
It is clear that the main objective of the Act is to secure welfare
of the workers in a competitive market by providing minimum wages
so that in a free market the weaker section should not be exploited
by the strongers. The Act makes it obligatory to every employer to
pay his workers the prescribed minimum wages at regular periods that
has been agreed upon without violating the provisions of the Act. The
responsibility for enforcement of this Act lies with the Central Government
for the worker s coming under their perview. The Chief Labour Commissioner
is the incharge of implementation of the Act under Centres sphere.
The State Governments are responsible for implementing the Act under
their control. The Labour Department Officers are looking after the
implementation of this law alongwith other legislations. There is no seperate
machinery to look after the implementation of this Act in the States.
The Payment of Wages Act machinery also look after the provisions
of implementation of minimum wages Act. A survey conducted in many
states revealed that the inspection of implementation of minimum wages
Act is very poor in most of the States. A large number establishments
199
were left without any inspection and the fate ot the workers in those
establishment are not known to the authorities who are responsible for
implementation of minimum wages Act. But the settlement machinery
for the complaints seems to be satisfactory because there is a decline
of complaints. As much as 98% of the complaints received were disposed
off during the year. The declining of complaint cannot be taken as
a clear indication of the non-violation of the minimum wages Act. It
may be because of the communication gap between the implementation
machinery and the workers. To find out the real picture of the implementation
of the Act inspection of all establishments is necessary. The government
should introduce appropriate machinery to implement the minimum Wages
Act which needs preferential treatment because it is a question of the
bread of the worker. The government should not ignore the responsibility
towards this helpless *'Jorkers who sell their labour power to earn a
bare living.
A study of the violation of minimum wages Act revealed that
there was sharp increase of violation of the Act during 1970s. The
implementing authorities had prosecuted many of employers for violating
the provisions and also secured punishment for the violation of the
Act. But the disposal of cases registered under the Act were very
slow and there is need of taking more effective steps for quick disposal
of case under minimum wages Act. It is also observed that a large
parcentage of workers are not aware of the minimum wages act amd
even those who know some thing about it were reluctant to speak
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about it. This state of the workers is an indication of the low level
implementation of the minimum wages Act in many establishments. Many
of the workers are even do not know whether their establishment come
under the purview of the minimum wages Act. The workers knew that
they are being exploited but in the absense of proper enforcement
machinery they are helpless.
Those who are responsible for the administration and implementation
of the Act themselves admit that it is very difficult for them to implement
this Act in its strict sense. (28) They lament that they do not have
adequate staff to implement the Act in such a vast areas of establishments.
But the Act is a land-mark legislation and it has travelled a long
way to reach the beneficiaries in mitigating their misseries. Several areas
it has been implemented with force. Some state governments have vigorously
pursued the implementation of this Act. As we are reaching a stage
of politically and socially conscious citizens the implementtion of the
Act would not be difficult in India. There nothing wrong to conclude
that this Act has played a very important role in the unorganised sector.
This Act has helped to pay minimum wages, timely payment and weekly
holidays. This enactment has certainly has given benefit and helped
to rise the standard of living of workers employed in different industnes.
Payment of Bonus Act 1965
The question of bonus is a major cause for industrial struggle
in India. A large number of strikes and lockouts are related to the
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payment of bonus. The workers always considered bonus as a deterred
wage. But the employer is not ready to accept this contention. The
employer regards this as a gratuitous payment to his employees. But
in the modern time it has been acepted as a deferred wage and
the employees can claim bonus as a matter of right. It is not considered
an act of charity but regards as a sharing of profit of the establishment
in which worker is a partner in the process of production. The payment
of bonus is accepted in India because there is a gap between the
real wage and the living wage. The bonus can reduce this gap to
a certain extent. f\/lost of the industries have surplus fund for every
year and they can give a part of the surplus fund to the workers.
In India the bonus system can be traced during the First World War
because of the increase of prices of manufactured goods, the textile
industry earned huge profit. The workers demanded war bonus as the
cost of living increased due to increase in pnce. In 1918 the war
bonus was paid to mill workers at the rate of 15% but workers were
not satisfied and a strike was organised. Ultimately the war bonus was
increased to 35% and termed this as special allowance. But in 1922
the mill owners expressed their inability to grant bonus or special allowance.
Industrial struggle again started. In 1924 a Bonus Disputes Committee
was appointed to look into the question of bonus. The committee felt
that there was no legal, customary or equitable claim for bonus. The
struggle for bonus went on and there was no definite conclusion till
the Bombay High Court gave its ruling that the bonus can be demanded
by workmen as a matter of right. The Labour Appelate Tribunal laid
I Acc-fOo' 27-^
202
down a formula to pay bonus from the available surplus, which came
to be known as 'Full Bench Formula'. This formula was accepted by
the Supreme Court. (29) But this formula could not solve the bonus
disputes. The Bonus Commission was appointed in 1961 and the
recommendations submitted in 1964. The Bonus Act came into force
in 1965 through an Ordinance and became an Act in Oct. 1965. The
Bonus Act was subsequently amended eight times from 1965 to 1985.
The objective of the Act is to put an end to the industrial
disputes arising out of bonus payment. It is also to allow the employees
to share the prosperity of establishment because the workers have got
an equal share of contribution in earning the profit alongwith the capital
and management. (30) The Act applied to all establishments having
more than 20 workers. The Act imposes statutory obligation on the
employer to pay bonus at the rate of 8.33% of the salary. The maximum
is fixed at 20%. The maximum salary calculated for the purpose of
bonus is Rs. 1600/-.
The Payment of Bonus Act has settled the question of payment
of bonus but the industrial disputes regarding bonus still continues. The
workers are not satisfied with the minimum and the maximum bonus.
The workers in highly profitable establishments wanted the limitation of
20% to be removed. The Bonus Act led the way for more struggles
in the areas which were free from the struggles relating to bonus.
203
The government employees, semi-govemment employees and even teachers
raise demand for bonus. The government had to accept their demands
and extended the benefit to all organisations including government and
semi government
It is not clear as to what is actually bonus. So far no clear
cut conclusion^ has been reached even with the concept of bonus.
The government consider it as a payment to raise the standard of
living so that the gap between the real wage and the living wage
can be reduced. But the bonus is paid only to the organised workers.
The millions of workers in the unorganised sector still denied of the
benefit over and above their fixed wages. Therefore, the bonus provision
should be extended to unorganised section, if the government really
wanted to reduce the gap between the real wages and the living wages
to the low paid working class of this country.
The government sho1d implement the scheme of bonus to the
unorganised sector by including the provisions of minimum bonus either
in the Payment of Bonus Act or in the f\/linimum Wages Act. It is
also time for the government to review whether the payment of bonus
for the loss making industry would be ideal. The present thinking is
that the employer who is not able to make a minimum wage has
no right to continue with his industry by employing workmen. But the
thousands of workers employing in sick units which are running in loss
being maintained with government grants. Plumbing money in the sick
204
mills for payment of wages and bonus is not a parmanent solution.
The bonus formula should be in accordance with the production and
It should be linked with the profit and surplus fund of the establishment.
Then only the bonus concept will be meaningful and remain as a
permanent measure that would help to provide decent living wage for
the working class.
Legislation Relating To Social Security And Labour Welfare
Labour Welfare may be viewed as a total concept, as a social
concept and as a relative concept. The objective is the development
of social reform by means of legislation so as to encourage social
services, social work and social action. To achieve social welfare the
economic welfare has to be promoted. This can be done by increasing
production and equitable distribution of wealth among the people. Labour
welfare is a part of social welfare, and it covers a broad field of
development of human resources. A total labour welfarre concept aims
of providing physical, mental, moral, and emotional development. The
welfare of man and his family is the aim of the labour welfare. The
labour welfare concept is flexible and it differs from place to place
and time to time. It also varies from industry to industry. In the words
of R.R. Howkins, welfare is fundamentally an attitude of the mind and
the part of the management, influencing the method by which management
activities are under taken. Arthur, James Todd defines welfare work as
'any thing done for the comfort and improvement, intelllectual and social,
of the employees over and above the wages paid, which is not a
205
necessity of industry'. (31) It is. in fact, a voluntary efforts on the
part of the employer to improve the existing industrial system and conditions
of employment in their own industry. The great Trade Union Leader
N.M. Joshi put labour welfare as that 'covers all the efforts which employers
make for the benefit of their employees over and above the minimum
standards of working conditions fixed by the Factories Act and over
and above the provisions of Social Legislations providing against accident,
old age, unemployment and sickness.(32).
Workmen's Compensation Act. 1923.
The Workmen's Compensation Act 1923 is one of the first Act
of social security in India. Before enactment of this Act, it was very
difficult to get compensation for any injury sustained by the worker
in his course of employment. They had to fight under the common
law for compensation in Industrial Accidents. Under common law the
burden of proof lies on the employee to establish that the accident
was occured in the course of employment. Therefore, it became necessary
to introduce a legislation to provide quick relief to the worker and
also to his family in case of fatal accidents. The object of this Act
is to impose an obligation upon employers to pay compensation for
accidents arising out of and in course of employment. The Act applies
to any person who is employed in Railway, Factories, Mines, Plantations,
etc .Under Section 2 of the Act, the State governments are empowered
to extend the scope of the Act to any class of persons. The Act,
however, does not apply to members in Armed Forces.
206
The Compensation has to be paid by the employer to a workmen
for any personal injury caused by accident during the course ot his
employment. In Schedule i, a list of different types of injunes has
been listed. However, the employer is not responsible for any injury
which does not continue for more than 3 days. A workmen is also
not entitled for compensation if he does not present himself for medical
examination when required or donot take proper medical treatment. In
case of non fatal employment injury, any injury, resulting in permanent
total disablement, permanent partial disablement and temporary disablement,
the Act provides for higher rate of compensation and also removes
the wage limits for coverage. The Act has been revised specifically
in accordance wih the ILO conventions relating to social security. The
revised rate of compensation in case of death will now be an amount
equal to 40% of the monthly wages of the deseased workmen multiplied
by the relevant factor, (33) or an amount of Rs. 25000/- whichever
is more, in case of permanent total disablement the compensation amount
is 50% of the monthly wages of the injured multiplied by relevant factor
or an amount of Rs. 24,000/- which ever is more. The provisions are
also made when more than one injuries are caused by the same accident.
In case of temporary disablement the provisions are also made in the
Act to make the payment of compensation against the injury.
It is provided that all the cases of fatal accidents should be
brought to the notice of the commissioner for workemen's compensation.
In case the employer admits the liability, the amount of compensation
207
should be deposited with him. However, when the employer refuses
the liability for compensation, he has to make provisional payment. The
commissioner is empowered to take into consideration the claim. The
Act also provides that the employer is responsible to file annual returns
of compensation paid and the details of the injuries. If an employer
is in default in paying the compensation within the time limit, the commissioner
may direct for the recovery of the amount and also the interest thereof.
In the opinion of the commissioner, if there is no justification for the
delay in payment of compensation, the comissioner can impose penalty.
If the workman contracts any occupational disease peculiar to the employment,
that would be deemed to be an injury by accident arising out of and
In the course of his employment for purposes of this Act. However,
in case of occupational diseases, the compensation will be payable only
if the workman has been in the service of the employer for more
than six months. Some of the occupational diseases are listed in Schedule
II of the Act. The compensation payable to the workman or to his
dependants cannot be assigned, attached or charged. The workman can
file an application before the commissioner if the employer does not
pay compensation.
The Act is adminii^—-stered by the State Governments who
are required to appoint commissioner for workmen's compensation. The
functions of the commissioner include settlement of disputed claims, disposal
of cases of injuries imvolving death and revision of periodical payments.
It has also been made compulsory for the employer to inform the
208
authorities the number of accidents, amount of compensation paid, etc.
The Supreme Court has explained the doctrine of notional extension
of employment thus, 'As a rule, the employment of worker does not
commence until he has reached the place of employment and does
not continue when he has left the place of employment, the journey
to and from the place of employment being excluded. (34) It is now
well-settled, however, that this is , subject to the theory of notional
extension of the employer's premises so as to include an area which
the worker passes and repasses in going to and in leaving the actual
place of work.' There may be some reasonable extension in both time
and place and a workman may be regarded as in the course of his
employment even though he had not reached or had left his employer's
premises. The facts and circumstances of each case will have to be
examined very carefully in order to determine whether the accident arouse
out of and in the course of employment of a workman. The question
when does an employment begin and when does it cease, depends
upon the facts of each case. But the courts have agreed that the
employment does not necessarily end when the 'down tool' signal is
given or when the workman leaves the workshop. In a case of a
factory, the premises of the employer which gives ingrss or egress
to the factory is a limited one, in case of a city transport service,
by analogy, the entire fleet of buses forming service would be the
'premises*. A driver is given facility in his capacity as a driver to travel
in any bus belonging to the undertaking in the interest of the service.
Hence, a driver when going home from the depot or coming to the
209
depot uses the bus, any accient that happens to him is an accident
in the course of his employment. (35)
Under the doctrine of contributory negligence, the employer may
raise the defence that the accident occured purely due to employee's
negligence on his own part. Such a defence has been given no footing.
The main purpose being safeguard of workers and not to deprive them
of their rightful claim under the Act as otherwise every employer would
escape the claim by raising the defence of contributory negligence.(36)
The Madras High Court held this view of doctorine of contributory negligence
because first of all mere negligence or carelessness would not be regarded
as a wilful disobedience and second, the doctrine of contributory negligence
as a good defence in common law has been abrogated in so far
as the Workmen's Compensation Act is concerned. The reasons are
said to be two fold, viz., (a) that compensation is not a reme'̂ y for
negligence of the employer but it is rather in the nature of an insurance
of the workman against certain risks of accident, and (b) that this
was made an excuse for avoiding all liablity, because most negligences
are practically accidents in the nature of what is called the act of
God. Men who are employed to work in factories and else where P
are human beings, not machines. They are subject to human imerfections.
Employees State Insurance Act 1948 :
It became necessary to examine the question of Sickness Insurence
by the Government in the light of ILO convention in 1927 regarding
210
sickness insurance. But at that time it was felt that in India such
an insurance scheme was not feasible. But the Royal Commission on
Labour in 1931 sugested to reconsider the matter. The commission also
proposed a tentative scheme pertaining to the sickness insurance to
put into operation until finalisation of the scheme. But nothing was done
in this matter. Again in 1933 ILO conference called upor t̂he Government
of India to introduce scheme in India. Because of the financial and
other reasons the scheme could not be introduced. Provisional Labour
Enquiry Committees of Bihar, Bombay and UP recommended the introduction
of some scheme of insurance. The first coference of Labour min iKk i fS
held in 1940, the question of Insurc^nce Scheme was considered and
dcided to obtain the view of Provincial Governments and associations
of employers as well as of workers about the compulsory contribution
to the sick insurance fund. In 1941, Labour Ministers Conference suggested
to undertake preliminary survay to find out the feasilibity of introduction
of the scheme. The tentative scheme was prepared by the Labour
Department and placed before the third conference of Labour Ministers
in 1943. It was agreed to make a draft sickness insurence scheme
for introducing the same to the workers in cotton, jute, and heavy
engineering industries. In the mean time Prof. B.P. Adarkar was appointed
as a Special Officer in March 1943 by the Government of India to
report on the health Insurence of Industrial Workers in India. He submitted
his report in 1944. This report was examined by M/s Meurice Stack
and Raghunath Rao of ILO at the invitation of Government of India.
They suggested some improvements in the scheme. The 6th Labour
211
Conference in 1944, the Suggestions were discussed and it was agreed
that the Central Government should proceed with the preparation of
Health Insurance Scheme aplicable to all parannial factories and covering
employment injuries and maternity benefit, if possible.
The scheme should be circluated to Provincial Governments,
Associations of Employers and Trade Unions before a bill was drafted.
The bill came in the form of Workmen's State Insurence Bill , 1946.
But the Select Commiittee made certain changes and also the names.
It made the bill Employees' State Insurence Bill Scheme. The Act came
in to force on 19th April 1948. The object of the Act is to provide
certain benefits to the employees in case of sickness, maternity and
employment injury and to make . To provisions for certain other related
matters, main object of the Act to evolve a scheme of socio-economic
welfare making elaborate provisions in respect of it. The provisions of
the Act apply to all factories including factories belonging to the Government
of India. But the Seasonal factories are excluded. Powers were conferred
upon the appropriate government to extend the provisions of the Act
to any establishment, industrial, commercial agricultural or otherwise. The
government also has power to exempt any factories or establishments
by notification in the Official Gazzate.
The Act provides 5 types of benefit to the workmen. These
212
benefits include the sickness benefit, maternity benefit, disablement benefit,
dependant benefit and medical benefit. Tfie first 4 are casfi benefits
and tfie fiftfi one is extended in kind. Tfie responsibility for tfie provision
and payment of various benefits prescribed under the Act lies on Employees
State Insurence Corporation. That is the management of the enterprises
that are covered under the Act is not involved in the implementation.
The Insurance Scheme is financed through contributions from employers
and employees and grants and donations and also gifts from Central
and State Governments, Local Bodies or from individuals. The State
Governments share a part of the expenses relating to medical care.
For the Medical Care of employees it is one fourth and for their families
the share is one eighth. The contributionfrom the employees is related
to their wages. The rate of contribution work out to 2.25% of the
total basic pay and Dearness Allowance. The employers contribution is
5.2% of the wage bill, in areas where the schem e has been fully
implemented. It is the responsibility of the employers to deposit the
contributions of employ ^ees as well as the employers to the ESI Corporation
also lies on the employer. The employers are also responsible for maintaining
the records in respect of the contributions of the employees as prescribed
under the scheme.
The Coverage of tfie scheme was very poor and only a very
small portion of the country's population was covered by this Act. Further,
the scheme could not cover hundred percent of the family units ( insured
persons ) in the States like Assam, Haryana, f\/!aharashtra, Orrisa, and
Punjab. The social security provision of the Act is limited to factory
workers only which covers limited population of India. From this small
fraction also, a substantial portion are still to be covered under the
Act. People working in unorganised sector and small establishments employing
less than 20 persons are also mostly not covered under the Act.
It is, therefore, necessary that steps have to be taken.", to enhance
the scope of the Act in the light of the distressing conditions under
which the Indian workers are struggling.
The implementation of the scheme is entrusted to the Employees
State Insurance Corporation (ESIC). It is an autonomous body, set up
by the Central Government. This comprises of the representatives of
the State and Central Governments, the Parliament, the employees' and
employers' and from the medical profession. A standing committees, consisting
of the members elected from among the members of the corporation
Acts as the Executive Body of the ESIC. A medical benefit council
has also been formed to advise the Corporation on the medical aspects
of the scheme. Director General is the Chief Executive Officer of the
ESIC.He is responsible for formulation of the policy, overall supervision,
coordination and liaison with the Central and State Governments. The
ESIC has also set up Regional Boards, Regional Offices, Local Offices
and Inspection Offices in different States.
Records of the insured persons are maintained at the Regional
214
Offices. Regional Offices also control the Local and Inspection Offices.
Tfie claims in respect of the insured persons are entertained and settled
at the Local Office which are set up in all implemented areas.
The employees State Insurance Act covers 589 centres as on
31. 12.90. The total number of employees and beneficiaries covered
was 61.49 lakhs and 269.89 lakhs respectively. This scheme provides
for 109 Hospitals and 1327 dispensaries. The total number of beds
provided in ESI Hospitals was 19608. There are 42 ESI Annexes with
842 Beds for the use of ESI beneficiaries. The total number of beds
available for ESI beneficiaries are 22,425 as on 31.3.1990. The corporation
has disbursed a total sum of Rs. 83.52 Crores during the year 1989-90
for the payment of sickness, maternity and employment injury benefit
including dependant's benefit and permanent disablement benefit etc. The
total amount of arrears recoverable as on 31.3.1990 was Rs. 136.26
crores. Out of this Rs. 42.68 Crores are due from closed, liquidated
establishments or the claim is in dispute. The balance amount of Rs.
92.99 Crores are effective amount recoverable.
The ESI Organisation is a massive organisation representing a
massive labour force and its coverage is going on increasing year after
year. The following data would give an idea of the ever increasing
membership of ESIC Corporation.
Insured Persons and Beneficiaries.
Year Family insured Total
members persons Beneficianes.in lakhs
1986
1987
1988
1989
1990
205.99
205.14
210.91
205.63
208.44
71.53
71.23
61.68
60.40
61.49
277.52
276.37
212.69
266.03
269.93
215
Source : Annual Report 1990-91 Vol. I, Ministry of Labour, Government
of India, New Delfii, P. 31.
An employee directly employed by the Principle Employer on
any work in the factory or establishment or else where, the act is
also applicable to such employees who are employed by through an
immediate employer on any work.or whose services are temporarily lend
or let on hire to the principle employer. Any person employed for wages
on any work connected with the administration of the factory or establishment
or any part, department or branch thereof or with the purchase of
raw materials for or the distribution or sale of produce, of the factory
or establishment. But the employees of managing agents having administrative
216
control of the factories are not employees. 37
An apprentice has been held not to be an Employee38. The
term employee is a wide connotation and would include in its scope
to every clerical, labourer and part-time worker. 39. However, it will
not include casual employees. 40.
The Family includes the spouse and minor legitimate and adopted
children dependant upon the insured persons and also his dependent
parents. The Act has provided provision for establishing Employees Insurance
Court for the disputes arising relating to the contribution etc. The civil
courts are prohibited from admiting any dispute with regard to the Employee
Insurance Scheme or against the decision of the boards or tribunals.
Appeal shall lie to the High Court for an order of Employees Insurance
Court.
The Act also provides penalties for makeing false statements
and also faliure to deduct contribution. The punishment shall be imprisonment
upto three months or fine upto Rs. 5,000/- or both.
The appropriate goverment has got power to exemt any factory
or establshment or class of factories or establishments for a period
of one year at a time. Like wise any person or class of persons
employed in a factory or establishment can also be exempted. Exemption
can also be given to factory or establishment belonging to goverment
9 17
or any local authority. Exemption can be granted for one or more
provisions for the Act to the establishments mentioned in any of the
above categories. The goverment has got discretionary powers to interven
in the functioning of the Employees State Insurance Corporation scheme
in the intarest of beneficiaries.
Unlike other Acts the implementation of Employees State Insurance
Scheme in factories and establishment is fairly good. But the enforcement
machinery is not doing justice for the implementation of the scheme
more effectively. Approximately 40 percent of the factories went un-inspected
by the inspectors appointed for the purpose. (41) The number of factories
entrusted to the inspectors are too much for them to make effective
inspection. The local officers of the E.S.I.S. dose not have sufficent
staff to attend the beneficiaries and disburse the claims. In some places
where large numbers are concentrated was attended by only one payment
office resulting much inconvenience to the workers. The increase of
staff is not proportanate to the incease of insured persons. In some
highly concentrated industrial centres, a single official has to look after
above 200 cases a day.
The working of E.S.I, scheme is not upto the satisfaction of
the workers for whome the scheme has been introduced. A small number
is satisfied with the working of the scheme and large number of workers
are unhappy. A study conducted by Dr. M. L. Monga has mentioned
that as much as 60% of workers are not at all satisfied with the
218
functioning of E. S. I. scheme. (42) There are serious charges of the
functioning of E.S.I, dispensaries as they do not give proper medicins
to the patients. The trade union leaders saw that they give same medicine:
for all the diseases. There are also charges that the medicines are
sold in open market by the hospital employees. On the other hand
the doctors and para-medical staff have different version. They say that
workers wanted to take advantage of the scheme without any sickness
or disablement. They wanted bogus payment for non-existant diseases
simply to take advantage of the scheme. But apart from all these
charges of irregularities the employees insurance scheme gives relif to
millions of workers and their family members. The existence of the
scheme is known to good number of workers whereas indepth knowledge
about the various benifits is low. Because of ignorance communication
gap the benifit is not reaching to all its intended beneficiaries. As such
the scheme and benifits should be made known to the workers. In
addition to this strict control should be exercised on certification of sickness
so as to prevent misuse of the benefits by the workers. The monetory
benefits should also be linked with the cost of living so as to enable
the worker to look after himself and his family at the time of his
illness.
Employes Provident Fund And Miscellaneous Provisions Act 1952
After independence the National Government established under
the democratic principles, was well aware of the plight of the working
219
class. There were serious thinking to provide the workers with monetary
protection at the time of distress. The Employees State Insurance Act
of 1948 was to give relief for the workers already in employment.
The Workmen Compensation Act also provided relief to the workers
who met with accidents. But there was no provision to provide security
to the workers who are retired after a long service. So there was
a thinking to introduce some kind of social security scheme like old
age pension on par with industrialised countnes of Europe. But, the
financial conditions of the country did not allow the government to make
any provision like old age pension scheme .Moreover, there would be
no participation of the workers in such a scheme. So the contributory
provident scheme was introduced with contribution from workers and employers
to provide monetary support for retiring employees. For this purpose,
the employees provident fund, miscellaneous provision Act 1952 was
enacted. It was to provide Social Security to the retiring workers and
also to help his family in case of death. The contribution for the workers
to such a fund would help to develop the habit of saving among
the workers. When the Act was first introduced, the factories with 50
or more persons came under its perview. But later the Act was amended
to bring the factories employing 20 or more persons to be covered
under the Act. The Government has got special powers to bring any
establishment employing less than 20 workers under the purview of the
Act by giving two months notice in the official gazette. Even if the
number of workers fall below 20 after covering under the provisions
of the Act the Provident Fund Act shall continue to be applicable to
220
such establishments. In the beginning the Act covered only 6 industries
VIZ. Cement, Cigarettes, Electrical. Mechanical or General Engineering
products, Iron and Steel, Paper and Textiles. But later on, in 1956.
the scope of the Act extended to many other factories and at present
it covers more than 100 types of industries and class of establishments
The Central Government has the power to include any industry to bring
them under the purview of Provident Fund, by a notification. All such
notifications shall be laid before the Parliament as early as possible.
The Act was further amended in 1971 to introduce Family Pension
Scheme and also in 1976 to introduce Deposit Linked Insurance Scheme.For
the purpose of calculation of Provident Fund contribution the wage means,
the basic wages. That is all emoluments which are earned by an employees
while on duty or on leave, with wages, in accordance with terms of
contract of employment. But it does not include the cash value of
any food concessions, dearness allowance, house rent allowance, over-time,
bonus, commission, etc. Any gift given by the employer also would
not include in the wages. An employer is duty bonus to pay provident
contribution even if he is unable to pay wages to his employees for
reasons beyond his control(43). To cover an establishment under the
Provident Fund Act, if an employer employ^.s 20 or more workers
even on a single day, the provisions of the Provident Fund can be
applied (44). An employee means any persons who is employed for
wages of any kind of work, manual or otherwise, in connection with
the work of the establishment and who gets his wages directly or
indirectly from the employer and includes any person employed by or
221
through a contractor in connection with the work of the establishment.
A cont-/'K^ labour is also is an employee to calculate the strength of
the workers to cover the Provident Fund Act(45). But in order to cover
the E.P.F. Act the employment of the persons must be in regular course
of bussiness and not for a short period on account of some passing
necessity or some temporary emergency beyond the control of the company(46).
Factory is a premises including it precincts the use of in any part
of which a manufacturing process is being carried on or is ordinarily
so carried on whether with the aid of power or without the aid of
power. It was held that making of bodies with the help of carpenters
for trucks and passenger buses is a manufacturing process(47). If a
company having factory at different place and has got administrative
offices at some other places are to be treated as one unit for the
purpose of determining the applicability of the EPF Act (48). Like-wise
the Printing Press and the Office located in different premises belong
to one unit and the Act which is applicable to press extends to the
office because there was an integrated financial and managerial function
(49). The establishments include all departments and branches. Different
departments or branches whether situated in the same place or different
places shall be treated as a part of the same establishment. But two
factories constitute two independent establishments if they have separate
registration under the factories Act, separate profit and less account,
separate works managers and plant superintendents and separate set-up
of workmen or employees(50). The Provident Fund Act is implemented
through a Central Board. The Central Government is empowered to
222
constitute a Trust. The Central Board shall consist,; a Chairnnan who
is appointed by the Central Government. The Government shall also
appoint not more than 5 persons from its officials. 15 persons representing
State Government as specified by the State Government and appointed
by the Central Government, 6 persons each representing employers and
employees of the establishment to which the scheme applies. These
persons are also appointed by Central Government in consultation with
the respective organizations. The executing officer is the Central Provident
Fund Commissioner under whose control there are Regional Provident
Fund Commissioners. Under the regional Commissioner there are enforcement
officers and Inspectors to look into the implementation of the scheme.
The Inspectors under-take verifications of the Factories and Establishments
that has been covered and also to be covered. The contribution of
the employees towards the fund is 8.33% and the employer should
also contribute an equal amount.
Employees Family Pension Scheme 1971
The employees family pension scheme was started under the
Employees Provident Fund Laws (Amendment) Act 1971. The scheme
was introduced to provide relief to the family and his members in
the event of the members pre-mature death. The family pension scheme
came into force from March 1, 1971. It is compulsorily applicable to
those who became subscribers of Provident from March 1971. For the
existing members an option was given to join the fund. The scheme
gives pension to the families or to member of the family, in the event
223
of death of the subscriber. Family means the widow or widower, minor
sons and unmarried daughters for the purpose of family pension. The
fund IS constituted from a contribution of the workers at the rate of
1.16% of the employees pay and an equivalent amount from the employer.
This amount will be diverted from the P.P. Contribution of both workers
and employers. The Central Government would also contribute 1.16%
of the pay of the member. The minimum family pension is Rs. 225/-
per month and maximum is Rs. 750/-.
The Employer Deposit Linked Insurance Scheme 1976.
The Employees Deposit Linked Insurance Scheme came into force
on 1st August 1976. This act would apply to all establishments covered
under PF Act. All PF member-employees, both in exempted and unexempted
establishment are covered under the scheme. The employees are not
required to contribute to the Insurance Fund. But the employers have
to contribute at the rate of 0.5% of the pay of the employees who
are provident fund members. The Centra! Government would also contribute
0.25% in respect of covered employees. The employers are also required
to pay administration charges to the Insurance Fund at the rate of
0.01% of the payment of the employee, subject to a minimum of Rs.
2/- per month. The Central Government also pay 0.005% of the pay
drawn by the employees member, subject to a minimum of Rs. 1/-
per month.
22i
Under the scheme the nominee/ members of the family of employees
of covered establishment will get, in the event of death while in service,
an additional amount equal to the average balance in the Provident
Fund account of the diseased during proceeding 12 months or during
the period of his membership whichever is less. But if the amount
payable exceeds Rs. 15,000/- the nominee will be entitled to Rs. 15,000/-
plus 25% of the amount in excess subject to the maximum ceiling
of Rs. 25,000/-. The Act also provides exception to Factories and establishments
which have an insurance scheme approved by the Government and
conferring more benefits than those provided under this scheme. But
the majority of employees should be in favour of such exemption. Central
Government is the appropriate authority to grant exemption from the
Employees Deposit Linked -
Insurance scheme.
The employees provident fund organization is the Incharge of
all the three schemes. The Central Provident Fund Commissioner is
the Chief Executive. The scheme is operated through the Regional Provident
Fund Commissioners under whose central there are enforcement staff
for the implementation of the scheme. In the onginal scheme, the responsibility
of prosecution was with the State Govemment,but the amendment empowered
the Regional Commissioners to prosecute the defaulting employers who
did not deposit the amount due to the Provident Fund.
The worker member who is contributing to the Provident Fund
can take advances during the period of his contribution on certain conditions.
The Act has provided provision for which the advances can be granted.
This include, to finance insurance policy, purchase and construct houses,
treatments of serious illness, marriage of daughters and education of
children.The member can withdraw his full amount in the event of the
members retirement from service, either by superannuation or on the
ground of total incapacitation. The amount is refunded on retrenchment
and also cessation of the implementation of the Act in the establishment
due to the failing of the strength of workers bellow 15 continuously
for a year. In the event of closure of an establishment where the
member is working can get full withdrawal of the deposit under the
scheme.
The three Acts viz. Employees Provident Fund and Miscellaneous
Act 1952, Employees Family Pension Scheme 1971, Employees Deposit
Linked Insurance Scheme 1976, are important steps in the history of
Indian Labour Legislation. These legislation are intended to provide social
security to the working class at the time of his retirement and also
in his old age. This is, in fact, one of the finest scheme introduced
to minimise the suffering of people in his old age when his earning
capacity and energy had already eroded. In the absence of such a
provision, the worker has no option after his productive career but to
depend on others for his existence. Every worker is not capable of
saving himself for his darker days in future. But these Acts do not
fulfill fully the need of the society because the amount of Provident
226
Fund received as a lump-sum is very often spent without any consideration.
So the only alternative to give full social security to the working class
in their old age is grant of per^sion which can assure a regular monthly
income till he breaths his last. Such a scheme will not only help
to reduce the suffering of millions of retiring workers, but also prove
the intention of the government, to provide security to those who worked
throughout their life in productive process to make the country richer.
Recently there is a serious thinking to introduce pension scheme
to working class employed in factories and establishments which do
not have their own pension scheme. But the Parliament could not so
far enact any legislation in this respect. It is gathered from the newspapers
that the Central Labor Minister has assured the introduction of a bill
to implement the pension scheme for all those who came under P.F.
Scheme (51). As and when the parliament enact-' this legislation, this
would definitely a land-mark enactment especially, in the field of social
security.
Trade Union Act, 1926
The Trade Union movement in India can be traced from the
last century. Shri. N.fvl. Lokhande organised the Bombay Mill Hands
Association in 1890. But the beginning of modern Trade Union started
only after first world war. The Madras High Court decision in the Bukingham
227
and Carnatik Mills case in 1920 focussed the attention of every-one
to provide legal recognition to worker's right to organise and strike for
their legitimate demands. Shri N.M. Joshi introduced a resolution in Legislative
Assembly on 1st March 1921 to take steps for the Registration of
Trade Unions and protection of bona-fide Trade Union Activities. The
Central Government drew up a bill providing for the legislation of Trade-
Union and introduced the same in the Assembly on 31st August 1925.
The bill was passed on 25th March 1926 and the Indian Trade Union
Act came into effect on 1st June 1927.
The objective of the Act was to make necessary provisions in
regard to the registration of Trade Unions and to define the Law relating
to the register the Trade Unions. The Royal Commission on Labor
in India observed that the objective is to give Trade Union the necessary
protection from Civil and Criminal laws relating to conspiracy in order
to enable them to carry on the legitimate activities. The act was amended
in 1947 to provide compulsory recognition of Trade Union. But it was
not enforced. Further amendments to the Act were in 1960, 1962 and
1964. A comprehensive Trade Unions (Amendment) Bill 1982 was passed
by parliament, but was not enforced.
The Term Trade Union can be expressed both in ordinary sense
and in broad sense. It is a combination of workmen in ordinary sense
and in a broader sense it includes combination of employers and federation
of two or more such combinations. So the Trade Union means any
228
combination whether temporary or permanent formed for the purpose
of regulating relation between workman and employers, workmen and
workmen.employers and employers But agreement between partners in
business is not a trade union. Also an agreement in consideration of
the Sale of^ Goodwill of a business or of instructions in any profession,
trade of handicraft is not a trade union. The Trade Union should send
their applications for registration to the Registrar with information viz.
Name and Address of members making application, the name of the
Trade Union and address of its Head Office, the titles, names, ages,
addresses and office bearers of the Trade Unions, and a general statement
of the assets and liabilities of the Trade Union. A Trade Union can
be registered only under the Trade Union Act 1926. Therefore, Trade
Unions registered under other acts like the societies registration act 1860,
the co-operative societies act 1912 and the companies Act 1956 shall
be void. The Registrar can cancel or withdraw the registrations. But,
he has no power to restore the registration canceled by him (52).
The Trade Union can request the Registrar to cancel their registration
after the approval of the general meeting of the Trade Union or majority
of the members of the Trade Union. The Registrar must give atleast
2 months notice before canceling the registration. Although it is not
legally necessary to register a Trade Union, a registered Trade Union
has got certain advantages. A registered Trade Union become a corporate
body and also legal entity distinct from its members. It gets a perpetual
succession and common seal. It can acquire and hold both movable
and immovable property and also enter into contract. It can sue and
229
be sued in its registered name.lt is not mandatory for the registered
Trade Union to admit anyone as its member. To become and executive
member of the Union he should have attained the age of 18. A person
who has been convicted by a Court in India for any offence involving
moral turpitude cannot become an office bearer before the lape of five
years after his release. Not less than 50% of the office bearers of
every registered Trade Union shall be person actually engaged or employed
in the respective industry.
The Trade Union Act provides immunity from Civil proceedings
to a registered Trade Union and its members, office bearers. No legal
proceeding is maintainable in any civil court against registered Trade
Union. A registered Trade Union is not liable in any suits or other
legal proceedings in any civil court in respect of any tortious act done
in contemplation or furtherance of trade dispute, by an agent of the
Trade Union. If it is proved that such agent acted without the knowledge
of or contradict to the express instructions given by the executives of
the Trade Unions. A Trade Union registered under the Act can be
withdrawn or canceled by the Registrar on non-fulfilling of the requirement
under sectionIO of the Act. But the registrar cannot cancel the registration
of a Trade Union without giving the specified notice and in violation
of the principles of natural justice(54). Section 11 of the Act provides
limited right of appeal against the decision of the Registrar. Refusal
of the Registrar to register a Trade Union or withdrawal or Cancellation
of Certificate of Registration are appealable under the Act. The Trade
230
Union also cannot spenij its fund for unlawful activities. As suchi using
fund for illegal strike or lock out is violative of Ihe previous of tfie
Act. Section 24 of tfie Act provides a metfiod for amalgamation of
2 or more trade unions. Amalgamation may take place witfi or wittiout
any dissolution or division of funds of the amalgamating Unions. Before
any amalgamation takes place at- least one fialf of members must
record tfieir votes, and atleast 60 percent sfiould support sucfi amalgamation.
Notice in writing must be given to Registrar for amalgamation. Sucfi
notice must be signed by tfie Secretory and seven members of eacfi
and every Trade Union tfiat is a party to amalgamation.
Registered Trade Union is required to submit annual return to
tfie Registrar before tfie prescribed date alongwitfi a Audited Statement
of all receipts and expenditure for tfie year ending 31st day of December.
A general statement of tfie assets and liabilities of tfie Trade Unions
existing on 31st day of December sfiall be sent one tfie prescribed
date. A copy of tfie cfianges in rules of registered Trade Union witfi
15 days from tfie date of making sucfi cfianges sfiould be given to
tfie Registrar. Tfie Registrar fias got power to inspect all tfie or original
documents included in tfie general statement. Any false . entry or
intentional omission in tfie General Statement is punisfiable witfi a fine
wfiicfi may extent upto Rs. 500/-. Tfie Act also provide provision giving
power to appropriate government to make regulations for its effective
implementation. Sucfi regulations sfiall be publisfied in tfie official gazette.
Section 31 to 33 of tfie Act deals witfi provisions of penalty wfiicfi
231
may be imposed when there is default in submission of returns or
supplying false information.
The Trade Union Act is also a land-mark legislation in the field
of Industrial Relation. After the formation ILO in 1919, there was a
demand for standardization of Trade Union activity throughout the world.
The capturing of power by workers in Russia and establishment of
Socialist Government accelerated the movement. The Act provides protection
to the Trade Union from civil and criminal conspiracy for taking part
in strikes for furtherance of their demand. But the provision of registration
of Trade Unions with 7 members is to encourage registration of Unions.
But this provision is mis-used and a large number of Trade Unions
is registered from a single unit. The provision of 50 percent office
bearers from outside is also being mis-used. The politicians form their
union in industries and becomes its President or any other Office bearer,
for the furtherance of their political career. f\/lultiplication of Trade Union
and rivalry among Trade Union is because of the political interference
in Trade Union activities. f\/lost of our Trade Unions are faithful to
the political parties with which they are connected. Strikes are organized
by the political parties in Industrial Units to create problems for the
government. The registration provision in the Act has helped to enhance
the prestige of the Union and its office bearers. But there is no check
on the mis-use of Trade Unions Funds for political purposes.
232
The workers should be trained to manage the Trade Union themselves
so that the outside interference can be eliminated. Then only the Trade
Union will unitedly stand to struggle for the betterment of their members.
The Indutrial Employment (Standing Orders) Act, 1946
Only a few Industries had written terms of employment for their workman
before the passing of the Industrial employment (Standing Orders) Act
1946. Even the employees had no letter of employment mentioning out
their terms of service. A large number of probationers, badii workers
and labourers engaged through Sirdards in various types of contract
systems had no claim to permanency of service. They even did not
know on what conditions they were engaged. The condition of regular
office employees and factory employees were not different. Their condition
of service were unclear and unknown. So they were not aware of
their right in the establishment where they were working. So the employer
would change the conditions of employment at his whims and this became
a potential source of labour unrest. The employer could hire and fire
the workman without following any procedure or even giving the minimum
opportunity to defend them. Such arbitrary actions of the management
resulted confrontation between workers and the employers. For improving
the industrial relations the government decided to introduce a standard
condition of employment in private industry including provisions for disciplinary
action. With this view the Industrial Employment (Standing Orders) Act
was passed in 1946. Under the Act all employers in establishments
233
employing 100 or more workers has to define with clarity the conditions
of employment under them, and make them known to their workman.
The state government has got the authority to cover the establishment
even with less than 100 workers. The state of l\/1aharashtra by notification
dated 16.6.1982 applied the Act to the Establishments with 50 or more
workers with effect 15.8.1982. Once the Act is made applicable to an
Establishment, it will continue to apply even if the number of workman
fall below the required minimum. The Gujrat Government has made
the Act applicable to establishment employing 10 or more persons and
Factories employing 18 or more workers.
The administration of the Act is the responsibility of both Central
and State Government in their respective spheres. Under the Act the
employer is duty-bound to submit five copies of the draft standing orders
that proposes to be adopted in his establishment alongwith the particulars
of the workmen employed, etc. The draft standing orders should be
in conformity with the model standing orders prepared by the Government.
The standing orders should contain some essential matters like classification
of workmen, manner of intimating to workmen.period and hours of work,
holidays, pay-days, rate of wages, shift working, attendance and late
coming, the authority to grant leave, conditions of entry by pass and
liability to search, etc. The rules regarding the rights and liabilities of
the employer and workers during temporary stoppages of work, procedure
for termination of work, suspension, dismissal, etc, are also to be shown.
The certifying officer on receipt of such draft standing orders send the
234
copies of the same to the workmen and their union inviting their opinions
or objections. After hearing both employer and employees he certifies
the proposed standing orders with or without modifications. Then he
sent the certified standing order to the concerned parties.The certified
standing orders come into operation on the expiry of 30 days from
the day on which authenticated copies are sent to the parties. This
order is binding on both present and future employes of the
establishment.Without an agreement between employees and employers
the Certified Standing Orders cannot be modified within six months'of
its coming into operation. This can be done only with the approval
of certifying officer. The Act also provides penalty for non-compliance
of the provisions of the Act. The penalty for non-submission of the
draft standing order is Rs. 5000/- and Rs. 2000/- for each day of
dely. Contravention of certified standing orders is to be punished with
a fine of Rs. 100/- and for the continued contravention Rs. 25/- will
be fined for each day.
In 1956 parliament effected radical changes in the Act widening
scope and altering its very complexion. The workmen can raise objections
as to the reasonableness and fairness of the draft standing orders submitted
for certification. The standing order provided that drunkness, fighting, riotess
or disorderly behaviour or indecent behaviour within or outside the factory
as mis-conduct. Even if the workmen engaged in fighting and assault
another workmen on a matter connected with the factory affairs will
come under the purview of the standing orders.. This was decided
235
when a workmen assaulted another workmen in a matter connected
with introduction of incentive bonus scheme. If the standing order provides
the provisions of suspension pending enquiry against a workm^ and
if the order of suspension is confirmed or modified after enquiry, the
employee well be treated as absent from duty during the period of
suspension and shall not be entitled to any compensation for such
period. However, the order is revoked the employee shall be entitled
to wages for the period of suspension.
The Industrial Employment (Standing Order) Act have been described
by the National Commission on Labour as the foundation to guide the
maintenance of Industrial Peace. The certified standing orders which are
the crux of the Industrial Employment Act, regulate the standard of
conduct, and form the basis of the day-to-day labour management relations
in the covered establishments. In fact these orders are very important
for maintaining factory discipline for harmonious working and higher productivity.
This should not be treated as simply a paper Act and the employers
and workers should take interest in the implementation of the Act. Strict
implementation of certified standing orders on the part of the employers
would definitely put an end to the workers suspicion on the policies
of the management and their intentions. This would help the workers
to co-operate more willingly and would become more responsible. The
supervisors can make use of the standing orders more effectively as
they are in close contact with the workmen. For this purpose the standing
orders should be taught m details during the training programme so
236
that they can become familiar with its provisions. This can also be
made in the form of a hand-book which should be made available
to both workers and supervisors.
Industrial Dispute Act 1947
In the Indian context Industrial relation is a new origin. We
began to think of Industry and the term Industrial Relation only a few
decades ago. We had a village culture and our people did not think
of a new culture arising out of Industrialisation and the cities. The
labour relations and the importance of labour began to focus attention
only after the first world war. Ours is a different culture and as such
.can not study this subject with reference to the European countries.
At the same time, we cannot ignore the fact that industry plays a
major role in national productivity and as such cannot ignore the problems
of Industrial Relation. But we have to study Indian Industrial Relation
keeping in view of our rural background and the past culture. Even
today, we do not have a society that can be fully termed as an
Industrial Society. Every Industrial Worker in India still has got his roots
in the remote villages of the country and the problem of Industrial
Relation should be viewed in this context. Any other approach to this
problem will be irrelevant in the Indian context. It does not mean that
we should not take into consideration of the developments that are
taking place around the world. In India we could not establish a sound
and constructive Industrial Relation because the workers and the employers
237
are not able to adjust to the Industrial atmosphere ,that are new to
them. A close look into the industrial society would bring many facts.
Several measures taken by employers and government to provide facilities
and amenities are not taken kindly by the workers. This is not because
they have got any objections to this, but they are unable to adjust
with the atmosphere. The workers are not educated to adjust with the
industrial culture that is the base for the Industnal relations which they
have to establish during the course of their employment. Industrial peace
and harmony is of paramount importance not only to the Industrial
establishment, employees and employers but also to the community as
a whole. It is necessary to achieve productivity which is the most important
source wealth of the modern society. The national income depends on
Industrial production in the modern world.
The industrial dispute Act 1947, is one of prestigious legislation
ever enacted in the history of Indian legislation. The purpose of the
act is to define and regulate standards of conduct, and to establish
a basis for day to day labour management relations in Industrial establishments,
and thereby achieving industrial peace. The terms industrial dispute means
any dispute or difference between employers and employers or between
employers and workmen or between workmen and workmen, which is
connected with employment or non-employment or the terms of employment
or with the conditions of employment of any person. That is to say
the industrial dispute Act does noi cover a dispute between government
and industrial establishment and also workmen and non-workmen. The
idoo
employer may be association or a group of employers (55). The employer
for the government undertakings, they authority specified to act as the
employers and if no specified authority is not there the Head of Department
will be employer. The industries under local bodies the chief Executive
officer of such bodies will be the authority. Under the Industrial Dispute Act
an employer does not cease to be so by transferring some assets
and liabilities (56). It is also decided that a 'Benamadar' becomes an
employer when a transfer is made to victimize a workman(57). Under
the Act industry means any business trade, undertaking manufacture
or calling of employers and includes any calling, service, employment,
anticraft or industrial occupation or avocation of workmen. The supreme
court in Bangalore Water Supply and Sewage Board's case has taken
a wider view of the term industry(58). Clubs, Education and Research
Institutions, Charitable Projects, which were not included in the term
industry were also brought under the term industry. But University is not
an industry as was decided in the case of University of Delhi-59.
A hospital come under the purview of industries 60. A college and
Ayurvedic pharmacy for production of medicines run together is an Industry
61. But the term industry does not include any agricultural operation
except where such operation is carried on in an integrated manner.
Khadi and Village Industries and domestic services would not come
under the purview of the Act. Activities being a profession, practiced
by an Individual or body of individual are also not come under
239
industries. Industrial dispute Act has made great impact on industrial dispute,
regulation in the country. The Act provides a comprehensive machinery
for settlement of disputes. The Act is designed to settle industrial dispute
on a new pattern different from the exsisting judicial machinery. It is
to provide an effective machinery for just and equitable settlement of
dispute by adjudication, arbitration and negotiations. This would discourage
show of strength of workers and employers by resorting to strike and
lock-outs to settle the disputes. The Act provides two important institutions
for prevention and settlement of disputes viz. works committees and
industrial tribunals. The emphasis on the principle of voluntary settlement
through work committees and other forums is the indication of the
governments intention to help the prevention of industrial disputes
rather than to decide it on merits. Creation of proper atmosphere
for industrial growth is the main objective. The main provisions of the
Act is to constitute work committees and establish machinery for settlement
of industrial disputes comprising of conciliation, arbitration and adjudication.
The act also deals with provisions to declare strikes and lock-outs,
etc as illegal. Authorities constituted by Act for the prevention,
investigation and settlement of industrial disputes are work committees,
court of enquiry, conciliation officers, and board of conciliation, labour
court, industrial tribunals and national tribunals. It would be appropriate
to look into the working of these machineries to evaluate the implementation
of the Act its true sense.
240
Work«s Committee is one of the authorities under the act. Its
objective is to nip in the bud any industrial problem. So its role is
preventive rather than solution. The intention is to create a sense of
partnership to workers by including them in the works committes so
that they can make suggestations of common inetrest (62).
Concilation is another method for preventing industrial disputes
through third party interventation (63). The machenary helps to reconcile
industrial disputes by a freindly intervention of a neutral person. The
third party intervention is helpful to bring both the parties face to face
and talk about their problems. This is without any doubt helpful in
removing at least the misunderstanding due to communication gap. It
provides an opportunity to arrive at a compromise in the sprit of give
and take policy (64). There is no fixed procedure for conciliation and
therfore open to adopt any policy according to the need of the circumstances.
But the method is not found favourable a acceptance by workers and
employers.
Arbitration is another method provided in the act to settle industrial
disputes. An arbitrator is appointed to settle industrial dispute. Its decision
is binding on both the parties. Though it is not a Judical process
its decision has to statutory backing. This system is also not popular.
241
Under adjudication process, there are Labour Courts and Tribunals.
Most of the industrial disputes are settled through these methods. Labour
Courts and Tribunals are the widely accepted forum of settling industrial
disputes. Labour Courts are flooded with industrial disputes and related
matters. These Courts are unable to settle disputes as they are over
loaded with work. They deal with all types industrial disputes and also
individual cases. The decision of Labour Courts are binding and there
is no appeal provison. Still both the parties try to approach High Court
and Supreme Courts under writ jurisdiction.
The industrial dispute act also provides detail provisions regarding
stikes and lockouts. While dealing with strike, the act distinguishes between
leagel and illleagel strikes. In certain public utility services the act imposes
restrictions on strikes. If the provisions of the act is not fulfilled, then
the strike and lockout can be declared illegal (65). For the priod of
illegal strike workmen can not claim any wages (66). For claiming wages
for the strike period, the strike should not only be leageJ but also
be justified (67). For unjunstified strike no wages is admisible.
The industrial act has enacted with a view to maintain industrial
peace and thereby providing proper atmosphere for industrial development.
It is a sincere effort to estiblish industrial peace but the response of
the concerning parties are not encourging. The enclosed charts of strikes
and lockouts for the past three decades are a clear indication of the
failure of the mechinery provided to prevent strikes and lock outs in
242
industrial establishments. The reason for this faliure may be because
of the non coopration of employers and workers to settle their problems
with mutual consultation and to recognise the importance of thied party
intervention. The settlement mechineries are not effectively functioning
and industrial struggle goes on without any control. The result is the
loss of millions of precious man hours every year. Therefore, it is
high time to device a mutually acceptable system of settlment of disputes
so that the country can utilise the precious man power in the process
of production.
243
Industrial Disputes Classified by Strikes and Lockouts : 1961 to 1990
No. of Disputes 4̂o. of Workers involved [Mo. of Mandays lost (CX»)
1961
1962
1963
1964
1965
1966
1967
1968
1669
1670
1671
1672
1673
1974
1975
1976
1977
1978
1979
19a)
1981
1982
1983
1984
1985
1986
1987
1988
Stnkes
1.240
1,396
1,364
1,981
1,697
2,353
2,433
2.451
2,344
2,5«
2.478
2,857
2,958
2.510
1,644
1,241
2,691
2,762
2,7CB
2.501
2.245
2,029
1.993
1,689
1,355
1,458
1.348
1.334
1989(P)1,4C»
1990(1 =)730
LoctoUs
117
95
107
170
138
203
382
325
283
291
274
38«
412
428
299
218
426
425
340
355
395
454
344
405
400
434
451
441
385
226
TcHaJ
1.357
1,491
1.471
2.151
1.8:^
2.556
2.815
2.776
2.627
2,8®
2,752
3.243
3,370
2.938
1,943
1,4^
3.117
3,187
3,048
2.856
2.589
2,483
2,488
2,094
1,7K
1.892
1,799
1,745
1.7^
956
Sttkes LockoUsTotai
432 03 512
575 130 705
491 72 563
876 127 1,003
889 102 991
1.262 148 1,410
1.340 151 1.419
•. :65 204 1.669
1,687 140 1,827
1.552 278 1.828
1.476 139 1.615
1.475 262 1.737
2.358 187 2.545
2,710 145 2,855
1,032 111 1.143
550 186 738
1.912 281 2,193
1,690 226 1.916
2,714 159 2,873
1,661 239 1,900
1,261 327 1,588
1,191 278 1.469
1,167 294 1,461
1,726 223 1,949
878 201 1,079
21,444 201 1,645
1,495 275 1,770
937 254 1,191
NA NA NA
NA. NA NA
Stnkes LockoilsTotal
2.969 1.9M 4.919
5.059 1,062 6,121
2.229 1,040 3.269
5.724 2.001 7275
4.617 ;,B53 6.470
10,377 3,4^ 13.846
10,565 6,583 17 148
11,078 6,166 17.244
15.477 3,571 19,048
14.749 5,841 20,^3
11.a33 4,743 16,546
13.748 6.796 20,544
13.862 0,764 20.626
33,643 6,619 40,262
16.706 5.195 21.901
2.799 9.947 12.748
13,410 11,910 25,320
15.423 12,917 28,340
35.0)4 8,050 43.854
12,018 9,907 21,925
21.208 15.375 36.583
52.113 22.502 74,615
24,921 21,937 46,858
39,957 16,068 56.025
11.487 17,7'̂ 3 29.240
18.824 13,925 32,749
14,026 21,332 35,358
12,530 21,417 33,947
10,650 19,790 30,440
3.560 4,660 8,220
5 o u / l C £ : Cij C M i e CI9<»«'), Vol . 1 QruiC'') N j in i" *^ ' ) - " f
LQii»ou-r , TjOJ , -4nnvia» tit^por-t ttft^g-q,-. Ue» • I
244
Statewise Average Number of Workers involved in Lockout and Average No. of Days a Worker was involved in Lockout
1987 1988
State/union Average No.of Average no of Average no of Average no of
Workers involved days a workers wasWorkers involved indays a workers
in a lockout
1. West Bengal 731
2. Maharashtra 378
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
Bihar 1457
Uttar Pradesh 503
Tamil Nadu
Gujarat
Karnataka
Kerala
Andhra
Pradesh
Orissa
Rajasthan
Haryana
Punjab
Goa
Maharashtra
Tripura
Delhi
Assam
386
413
383
337
771
760
280
578
721
1041
649
200
34
,
involved
in a lockout
120
133
72
104
99
51
62
33
5
32
41
25
47
48
76
275
111
a lockout
745
420
121
339
269
147
992
150
850
367
118
377
450
1041
181
186
521
was involved
in a lockout
146
113
72
64
77
36
58
124
6
85
55
55
24
10
23
141
Total Average 610 77 575
Source : Computed from the data provided in Labour Bureau (1991)
245
state-wise Distribution of Lockouts in India
1987 988
Slate/Union No.of No.of No.of % of No.of No.of No.of % of
Territory lockout workers total total lockouts workers total total
affected mandays mandays affected mandays mandays
lost lost lost lost
1. West Bengal
2. M.S.
3. Bihar
146
55
16
4. Utter Pradesh) 18
5. Tamil nadu
6. Gujarat
7. Karnataka
8. Kerala
9. Andhra
Pradesti
10. Orissa
11, Rajastafian
12. Haryana
13. Punjab
14. Goa
15. tvladliya
Pradesh
16. Tripura
17. Delhi
18. Assann
Total
18
28
13
26
73
9
18
13
5
2
2
1
8
451
106707
20812
23319
9059
6946
11574
4985
8771
56271
6837
5033
7516
36(»
2082
1298
200
273
275288
12747385
2759435
59.8
12.9
1672695 7.8
945705
688058
590353
306801
291779
265605
221782
205198
187201
166950
100040
98100
54854
30350
2133291
4.4
3.2
2.8
1.4
1.4
1.2
1.0
1.0
0.9
0.8
0.5
0.4
0.2
0.1
100.0
138
69
10
17
20
19
13
18
92
7
16
10
4
2
3
1
-
441
1020220 15,00,0
28961
1211
5771
5386
2797
11988
2696
78178
2571
1886
3768
1799
2082
542
186
-
253742
328220
87436
368713
415088
100543
696988
355422
470619
217271
104363
206168
42342
21444
12698
262626
-
70.1
15,3
0.4
7.1
0.5
3.2
1.6
2.2
1.0
0.5
1.0
0.2
0.1
0.1
0.1
-
21417030100.00
Notes : No lockouts were reported from frie States/Union Terriories of Himachal Pradesh,
Jammu and Kashmir, fulanipur, Meghlaya, A and N Islands, Chandigarh, Lakshdeep and Pondichery.
(P) Provisional
Source : Compiled and computed from Labour Bureau (1991 a)
246
Notes & References
1) Vidhyarthi R.D., Growth Labour legislation and it impact on Economic
development.p.33.
2) Tannen Baun, F.A; A Philosophy of Labour court quated by S.C.
Pant in Indian Labour Problems, Chaitanya Publishing House, 1965.
3) V.V Giri, Labour Problem in Indian Industry, Asia Publishing House,
Bombay, p-141.
4) G.M Kothan, A Study of Industrial Labour, p.p 250-55.
5) Works Manager, Central Work Shop vs Vishwanth, AIR 1970.SC-488.
6) M/S Rathod Industries Ltd. vs Ram Laxman Steel, AIR 1987, p.V. 580.
7) Ganpatlal Mulchand Joshi vs First Civil judge Nagpur, AIR 1958 Bom.
262.
8) Industrial Elites and their Awareness and Legislation, National Labour
Institute Bulletin IV NO. 5. 1987.
9)The Payment of Wages Act 1936 a case study of its Implementation
and awareness in Award Digest, a Journal of Labor Legislation vol.
IV No. 6.1978.
10) Ibid, 1936.
11) D.V. Engineer, GIP Railway vs Mahadeo, AIR. 1955, SC-295.
247
12) Armasham vs Gulmhor Mills. AIR 1965 may 79.
13) M.B Goi/Tvs BrahtJTftOailqt, AIR 1956 MB 152.
14) G.M Kothari, Op.cit.p-340.
15) Ibid, p-346.
16) Arvind Mills Ltd. vs K.R Gadgil AIR 1941. Bom 26.
17) Swastic Textile Mills vs Srjasingh Sandasigh and other 1984.11 LLJ
97.
18) Orient Paper Mills Sramik Congress vs. O.P Mills 1989, FJR 434.
19) Kothari (Madras) Ltd vs. Second Additional District Judge. 1990
76 FJR 209.
20) Moohamad Sultan, vs A.P. Dairy Development Co-operative Federation
Ltd 1990 77 FJR 244.
21) The National Commission of Labour report p-220.
21) S.N Mehrotra, Labour Problem In India page 450 S Chand and Co.
Ramnagar New Delhi 1981.
23) Royal Commission Report p. 211.
24) People's Union for Democratic Right Vs Union of India AIR 1982
SC 1473.
25) Bandhua Mukti Morcha vs Union of India 1984 SC 161.
26) Eward Mils Co. Ltd. Vs State of Ajmer AIRr 1955 SC 25.
27) Jyoti Industry vs State of Kamataka AIR 1984, LLJ 201.
28) I.L.O. Problem of Wage Policy in Asian Countries, Geneva 1955
p 109.
29) Associated Cement Co. Ltd vs Workmen 1959 LLI 644.
30) Jalan Tradding Co. vs Mill Mazdoor Sabha 1966, I LLJ 546.
248
31) Arthur James Todd, industry and Society.A Sociological Appraisal
of Modern Industrialsation p.250
32) N.M. Joshi, Trade Union Movement in India, 1927, p.26.
33) The New Schedule for Substited Act No. 222 of 1984.
34) Saurashtra Salt Mfg.. Co. vs B.V. Raja and others AIR 1958 SC 881.
35) BEST Undertaking Bombay vs Mrs. Aghe 1963 II L U 615.
36) Sundaresa Mudalier vs. Muthamal 1956 LU II 52.
37) ESIC vs Ganatia Pilllai 1960-61 19 FJR 372.
38) ESIC vs Tata Eng. Locomotive Co. Ltd. 30 FJR 304.
39) ESIC vs Sriramlu Naidu 1960 II LU 699.
40) ESIC vs Gnanabike Mills Ltd. 1974 II LLJ 531.
41) Annual Administrative Report, ESI 1970.
42) M.L. Monga, Industrial Relation and Labor Law in India, Deep and
Deep Publishing, New Delhi p. 190.
43) Calicut Modern Spinning and Weaving Mills Ltd vs Regional Provident
Fund Commissioner, 1985 K I LLJ 433.
44) Ramanujan Press vs RPFC 1970 II LLJ 106.
45) Nzeena Traders vs RPFC 1961 I LLJ 334.
46) RPFC vs. T.S. Hariharan 1971 I 416 SC.
47) Metro Motor Ltd. vs RPFC Punjab (1958-59) 14 FJR 441.
48) Leo Mercantile Corporation vs RPFC 1987 II LLJ 35.
49) A. Gangadharan vs. Govt, of India 1978 II LLJ 317.
50) Dharmasi Morarji Chemicals Ltd vs. RPFC 1985 I LLJ 433.
51)The Hitwad Nagpur Dated 4-12-94.
52) Mukund Iron & Steel Works Ltd. vs V.G. Deshpande, Ragistrar of
249
Trade Unions Bombay 1986 il LLJ 290 Bombay.
53) Mohamad Ibraiham vs Asonsal Iron Steel Works, workers Union 1954
i LU 1.
54) MISWL Association vs Labour Commission 1979 I LLJ 448.
55) Western India Automobile Association vs Industrial Tribunal Bombay
1950 LLJ 245.
56) Bharat Bank Ltd. Delhi vs Employees of Bharat Bank 1950 SCR
459.
57) V.V. Nakate vs Chaya Talkies, 1953 LAC 67.
58) Banglore Water Supply and Sewage Board, vs A Rajappa other AIR
1978 SC 548.
59) University of Delhi vs Ramnath 1963 LLJ 335.
60) State of Bombay vs Hospital Mazdoor Sabha AIR 1960 SC 610.
61) Lalit Hari Ayurvedic College Pharmacy vs Workers Union 1960 I
LLJ 250.
62) National Commission on Labour Report 1969, p.322.
63) I.L.O. Concilation in Industrial Dispute A Practical Guide Indian Edition
1980 p-4.
64) Randle, Collective Bargaining Principle and Practice p-429.
65) M/S Tata Iron & Steel Company Ltd. vs Workman AIR 1972 SC 1917.
66) Ballarpur Collieries Co. vs The Presiding Officer, Central Government
Industrial Tribunals, Dhanbad, AIR 1972 SC 1216.
67) Crompton Greaves Ltd. VS The Workmen AIR 1978 SC 1489.