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RETRENCHMENT,

STRIKE, LAYOFF, AND

LOCKOUT

MEANING OF RETRENCHMENT

• (^) Retrenchment is something similar to reducing.
• (^) When a company or government goes through retrenchment, it reduces outgoing money or expenditures or redirects focus in an attempt to become more financially solvent.
• (^) it can also label the more general tactic of cutting back and slimming down the population of employees.

The Conditions to be followed in

cases of retrenchment. Section 25F

• (^) a period of continuous period of not less than one year
• The workman has been given one months notice in writing indicating the reasons for retrenchment and the period of notice has expired, or the workman has been paid in lieu of such notice, wages for the period of the notice
• (^) the workman has been paid, at the time of retrenchment, compensation which shall be equivalent to fifteen days average pay or any part thereof in excess of six months
• (^) notice in the prescribed manner is served on the appropriate Government [or such authority as may be specified by the appropriate Government by notification in the Official Gazette].

STRIKE

SECTION 2(q)

• (^) a cessation of work by a body of persons

employed in any industry acting in combination

or a concerted refusal, or a refusal under a

common understanding, of any number of

persons who are or have been so employed to

continue to work or to accept employment

Common Reasons for Strike

• (^) Working hours
• (^) Working Conditions
• (^) Salary, Incentive etc
• (^) Time payment of wages
• (^) Reduction in salary/wages
• Issue related Minimum wages
• Leave/Holidays
• (^) Dissatisfaction with the company policy
• (^) PF, ESI, Profit Sharing etc
• (^) Retrenchment of workmen and closure of establishment
• (^) Any other issue.

NORTH BROOK JUTE CO LIMITED Vs.

THEIR WORKMEN- FACTS

• (^) A new scheme was introduced
• (^) the workmen objected to the introduction of the scheme that the dispute arose and was referred by the Government to the Tribunal.
• (^) The case was pending and the employers introduced the scheme
• (^) workmen refused to do the additional work placed on them by the scheme.
• (^) Later the same day the mills declared a lock-out.
• (^) Work was however resumed again in all departments excepting the weaving and finishing departments
• (^) a result of a settlement arrived

NORTH BROOK JUTE CO LIMITED Vs.

THEIR WORKMEN- JUDGEMENT

• (^) the Tribunal for relief; but the existence of this remedy does not mean that the workmen were bound to work under the altered conditions of service, even though these were in clear contravention of law.
• (^) When they refused to do the additional work which the rationalisation scheme required them to do, they refused to do work, which the employer had no right in law to ask them to do.
• (^) It is difficult to say that this amounted to a " strike" by the workmen; but even if it could be said to be a " strike " such strike was certainly not illegal or unjustified.
• (^) the Tribunal was right in its opinion that the closure of the mills by the employer amounted to an illegal lock-out, and the workmen, unable to" work in consequence of the lockout, are entitled to wages for the period of absence, used by such lock-out. The appeal is therefore dismissed with costs. Appeal dismissed.

Punjab National Bank Vs All India Punjab

National Bank Workers Federation – FACTS

• (^) a minority- petitioner
• (^) The management of Punjab National Bank entered into a memorandum of settlement dated 13.10.2008 with the majority union i.e. AIPNBEF under Section 12(3) of the Industrial Disputes Act, 1947 regarding procedures and policies concerning posting of Clerks as special Assistants and related problems.
• (^) The settlement was not enforced

T.K. Rangarajan vs Government Of

Tamil Nadu & Others- FACTS

• (^) Unprecedented action of the Tamil Nadu Government

terminating the services of all employees who have

resorted to strike for their demands was challenged

before the High Court of Madras by filing writ

petitions under Articles 226/227 of the Constitution

T.K. Rangarajan vs Government Of

Tamil Nadu & Others- JUDGEMENT

• (^) employees who are re-instated in service would take care in future in maintaining discipline as there is no question of having any fundamental, legal or equitable right to go on strike.
• (^) the concerned authorities are not making the Administrative Tribunals under the Administrative Tribunal Act, 1985, functional and effective by appointing men of caliber.
• (^) The Appeals and Writ Petitions are disposed of accordingly. There shall be no order as to costs.

Section 25-M Prohibition of lay-of

• (^) No workmen whose name is borne on the muster rolls of his employer shall be laid off without previous permission of such authority as may be specified by the appropriate government unless such lay off is due to shortage of power or natural calamity and in case of a mine it is due to fire, flood, etc.

LOCKOUT

Section 2(1)

• (^) - “Lock-out” means the temporary closing of a place of employment, or the suspension of work, or the refusal by an employer to continue to employ any number of persons employed by him.

Tata Iron And Steel Company, Ltd.

vs Its Workmen And Ors- FACTS

• (^) Writ petition challenging the award passed by the Central Government Industrial Tribunal Employers in relation to the Management of Tisco Ltd v. Concerned Workman
• (^) SUNDAY IS THE WEEKLY REST DAY IN 2 coal mines
• (^) The employer changed the weekly rest days to 2 different days for the 2 coal mines
• (^) The workmen, however, did not accept this arrangement and appeared at the said collieries for work on the noticed rest days by the employer.
• (^) The coal mines were closed and a declaration that there was an illegal lockout in the said two coalmines on those two dates.

Tata Iron And Steel Company, Ltd.

vs Its Workmen And Ors- ISSUES

• (^) WHETHER THE SAID FACTS COME IN THE PURVIEW OF LOCKOUT
• (^) The meaning of lockout
• (^) the definition of " lookout " in Section 2(e) of the Trade Disputes Act, 1929
• (^) the essential character of a lookout