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Unit 10: Industrial Disputes Act, 1947

Notes
Example: In relation to other industrial disputes the State Government: In HEC Majdoor
Union Vs. State of Bihar S.C. (1969), it was held that in respect of Central Public Sector Undertakings
the State where the factory was situated was the appropriate Government. This decision was
changed in Air India case S.C. 1997 where it was held that in respect of Central Public Undertakings
the appropriate Government is the Central Government. This definition of appropriate
Government is applicable to Contract Labour (R&A) Act, 1970 and Payment of Bonus ACT, 1965.
The term “Industry” includes not only manufacturing and commercial establishments but also
professionals like that of the lawyers, medical practitioners, accountants, architects, etc., clubs,
educational institutions like universities, cooperatives, research institutes, charitable projects
and other kindred adventures, if they are being carried on as systematic activity organised by
cooperation between employers and employees for the production and/or distribution of goods
and services calculated to satisfy human wants and wishes. It also includes welfare activities or
economic adventures or projects undertaken by the government or statutory bodies, and,
Government departments discharging sovereign functions if there are units which are industries
and which are substantially severable units. (Judgement dated 21.2.78 in the civil appeals no.
753-754 in the matter of Bangalore Water Supply & Sewerage Board etc. Vs. Rajappa & Sons, etc.).

Sec. 2 (s) defines “workman” as any person (including an apprentice) employed in any industry
to do any skilled, unskilled manual, supervisory, operational, technical or clerical work for hire
or reward. Whether the terms of employment be expressed or employed and for the purposes of
any proceedings under this act in relation to an industrial dispute, includes any such person who
has been dismissed, discharged, 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 (i) who is subject to Air Force Act, Army Act or Navy Act or (ii) who is
employed in police service or prison service, (iii) who is employed mainly in a managerial and
advisory capacity or (iv) who being employed in supervisory capacity draws wages exceeding
1600/- and exercises by the nature of the duties attached to the office or by means of powers
vested in him, functions mainly of a managerial nature. May and Baker India case S.C. (1976)
which led to passing of Sales Promotion Employees Act, 1976, had been stipulated that sales /
medical representatives are not workmen under Sec. 2(s) of ID Act.
The provisions of ID Act, 1947 will be applicable to certain class of working journalists as per
section 3 of Working Journalists Act, 1951.

10.2.3 Causes of Industrial Disputes

The causes of industrial disputes can be broadly classified into two categories: economic and
non-economic causes. The economic causes will include issues relating to compensation like
wages, bonus, allowances, and conditions for work, working hours, leave and holidays without
pay, unjust layoffs and retrenchments.

 The non-economic factors will include victimization of workers, ill treatment by staff
members, sympathetic strikes, political factors, indiscipline etc.
 Wages and allowances: Since the cost of living index is increasing, workers generally
bargain for higher wages to meet the rising cost of living index and to increase their
standards of living. In 2002, 21.4% of disputes were caused by demand of higher wages and
allowances. This percentage was 20.4% during 2003 and during 2004 increased up to 26.2%.
In 2005, wages and allowances accounted for 21.8% of disputes.

 Personnel and retrenchment: The personnel and retrenchment have also been an important
factor which accounted for disputes. During the year 2002, disputes caused by personnel
were 14.1% while those caused by retrenchment and layoffs were 2.2% and 0.4%

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