Page 181 - DMGT306_MERCANTILE_LAWS_II

Mercantile Laws – II

Notes 10.1 Definitions

As per Section 2(k) of Industrial Disputes Act, 1947, an industrial dispute in defined as any
dispute or difference between employers and employers, or between employers and workmen,
or between workmen and which is connected with the employment or non-employment or the
terms of employment or with the conditions of labour, of any person.
This definition includes all the aspects of a dispute. It, not only includes the disagreement
between employees and employers, but also emphasizes the difference of opinion between
worker and worker. The disputes generally arise on account of poor wage structure or poor
working conditions. This disagreement or difference could be on any matter concerning the
workers individually or collectively. It must be connected with employment or non-employment
or with the conditions of labour.

The Industrial Disputes Act, 1947 recognizes certain rights to the employees employed by the
employer. For the purposes of Industrial Disputes Act, 1947, workman has been defined as
under:

“Workman means any person (including an apprentice) employed in any industry to do any
manual, unskilled, skilled, technical, operational, clerical or supervisory work for hire or reward,
whether the terms of employment be express or implied, and for the purposes of any proceeding
under this Act in relation to an industrial dispute, includes any such person who has been
dismissed, discharged or retrenched in connection with, or as a consequence of, that dispute, or
whose dismissal, discharge or retrenchment has led to that dispute, but does not include any
such person:
 who is subject to the Air Force Act, 1950 (45 of 1950), or the Army Act, 1950 (46 of 1950), or
the Navy Act, 1957 (62 of 1957); or
 who is employed in the police service or as an officer or other employee of a prison; or
 who is employed mainly in a managerial or administrative capacity; or
 who, being employed in a supervisory capacity, draws wages exceeding one thousand six
hundred rupees per mensem or exercises, either by the nature of the duties attached to the
office or by reason of the powers vested in him, functions mainly of a managerial nature

Notes From the point of view of the employer, an industrial dispute resulting in stoppage
of work means a stoppage of production. This results in increase in the average cost of
production since fixed expenses continue to be incurred. It also leads to a fall in sales and
the rate of turnover, leading to a fall in profits. The employer may also be liable to
compensate his customers with whom he may have contracted for regular supply. Apart
from the immediate economic effects, loss of prestige and credit, alienation of the labor
force, and other non-economic, psychological and social consequences may also arise.
Loss due to destruction of property, personal injury and physical intimidation or
inconvenience also arises.

For the employee, an industrial dispute entails loss of income. The regular income by way of
wages and allowance ceases, and great hardship may be caused to the worker and his family.
Employees also suffer from personal injury if they indulge into strikes or picketing; and the
psychological and physical consequences of forced idleness. The threat of loss of employment in
case of failure to settle the dispute advantageously, or the threat of reprisal action by employers
also exists.

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