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Is it a Strike or a Lockout?

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Background

24th Jan 1976 Galaxy group of Cos. To NationalRefineries Corporation Ltd

Core Strength Customer satisfaction

Products- Petrochemicals, solvents, aircraft fuel etc

Marketed through petrol stations, kerosene dealers,

LPG distributor

Supplied directly to airlines, industries

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Employees Demand

Post nationalization

Demanded reliefs of permanency to all workmen

Get the benefits of the settlement entered in1973-74

In 1978-79

Employees filed 2 complaints of unfair labor practices

under M.R.T.U & P.U.L.P Act,1971

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On 24th Jan 1980- Charter of demands submitted byemployees

Permanency

Increase in age of retirement

Revision of pay scales

Later

Demonstrations

One days strike T.U activities on increase

7th Nov 1981-Threat to serve strike notice

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What happened

28th Dec 1981Union served ultimatum

5th Jan 1982- 250 workmen remained absent from

work without any authority

12th Jan 1982 Management placed on record

The prevailing situation

Willingness to have long term settlement

Condition

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13th Jan 1982 Union convened secret ballot

Informed management 92% workers voted for

indefinite strike

14th Jan 1982Plants work stopped

Clerical staff continued till 15th Jan 1982

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17th June 1982 -reached settlement

Workmen raised Industrial dispute to get wages

Industrial tribunal puts blame on both parties

Both parties challenge the order in Mumbai High

Court

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Why it is not a Lockout?

The climate in the organization was very uncertainAgitation of workers

Unauthorized absence of workers

The union had informed the management that 92% of theworkers favoured an indefinite strike.

This information was conveyed to the government througha letter on 12th Jan

Workers who entered the factory on 14th Jan 1982

abstained from doing work.

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The technicians in LPG plant and workmen in

utilities, securities & Fire station continued to work

Willful Go-slow attitude by workers

production from 25000 units to 14000 units

On 15th Jan even those workers who did not abstain

form work earlier joined others (Chances of unfair

labor practices use of coercion) Sec V Industrial

Disputes Act 1947

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Rejection of the managements offer at gate

meeting

The management was compelled to phase out

the catalytic plant ( technicians refused to

help management)

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Managements Standpoint

The only option available to a prudent and responsiblemanagement

The agitation could result in heavy losses in terms of life

and property given the nature of the industry.(inflammable hydrocarbon material)

The production cannot be carried out in the absence of

even a few workers because each of the stages andprocesses are mutually dependent

If production is to be continued it would result in acatastrophe

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Not shutting down the plant would hold themanagement responsible not only for gross but also

criminal negligence

It was an action taken in good faith under Sec.57 ofM.R.T.U and P.U.L.P Act 1971

Proper record of letters to the government and the

notices sent to the workers maintained

No responses for notices sent to workers for reaching an

agreement

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The workers did not have the moral authority to go on

strike on the grounds of issues which await the final verdict

from the Industrial Court. (sub-section (6) of section 58 /

section 71 of the Bombay Act)

The management was benevolent enough in not

terminating the workers behind the issue

Those workers who reported to work during the periodbetween 14th Jan and 17th June were allotted work and

received the wages.

.

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Workers should be mindful of their duties andresponsibilities not only to the company but the

nation as a whole

The six months strike caused heavy losses to the

government

It affected the roots of public life

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The constitutional right to workers under

Article 41 mentions the right to work within

states economic capacity

The workers should try to view the issue from

the managements view and understand the

difficulties in implementing the demands

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The workers were not thoughtful of the merits of

gainful employment they had under the government

that assured many social security benefits,

reasonable standards of living and above all job

security

They resorted to the extreme form of strike that too

an illegal strike

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There is no wrong in the managements stand

of No Work, No Pay.

The prolonged strike of the workers were

nothing more than a suicidal act that had a

crippling effect on the society.

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Precedents :

- HMT Ltd. (Supra) vs. Head Office Employees

Association and Workmen of Indian TelephoneIndustries Ltd

- Engineering Mazdoor Sabha vs. S.Taki Belgram

Hence, no compulsion for the management to paywages for the strike period of six months

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THANK YOU