Page 168 - DMGT516_LABOUR_LEGISLATIONS

Unit 7: Dispute Resolution and Industrial Harmony

7. To promote collective bargaining. Notes
Justice Krishna Iyer, L.I.C.-SC 1980 - IDA is a benign measure. It preempts industrial tension - It
is a mechanism for dispute resolution - It ensures industrial justice and creates climate of goodwill.

7.5.2 Some Important Concepts

1. Appropriate Government Section 2(a): Labour is a concurrent subject. Article 254 of Indian
Constitution. Both centre and state have power to intervene, therefore the act clarifies as
to which one is appropriate government in different situation.

(a) In relation to any industrial dispute concerning any industry carried on by or under
the authority of the Central Government or by a railway company or concerning
any such controlled industry such as may be specified or in relation to an industrial
dispute concerning a banking or an insurance company, a mine, or an oil field, or a
major port, the Central Government; and
(b) In relation to any other industrial dispute, the State Government.
The Central Government is the appropriate Government for:

(i) Any industry carried on by under the authority of the Central Government;
(ii) Any industry carried on by a railway company;
(iii) Any controlled industry (it should be so specified in this behalf for the purposes
of S.2 (a)(i) of the I.D. Act (Bijay Cotton Mills Ltd. vs. Their Workmen - 1960 I
LLJ 262 (SC);
(iv) ESI Corporation;

(v) The Indian Airlines and Air India Corporation;.
(vi) The Agricultural Refinance Corporation;
(vii) The Deposit Insurance Corporation;
(viii) The Unit Trust of India;
(ix) A Banking Company;

(x) An Insurance Company;
(xi) A Mine;
(xii) An Oil-field;

(xiii) A Cantonment Board;
(xiv) A Major Port.
"Carried on by or under the authority of the government" means either the industry
carried on directly by a department of the government such as posts and telegraphs or the
railways or one carried on by such department through any other agency.
In cases where the entire business of an establishment is confined to the territories of a
State, obviously the government of that State is the appropriate government. But difficulties
arise in cases where an employer has establishments in more than one State. The Act does
not contain any provision in this respect. Nor does it contemplate a joint reference by
more than one State. In certain cases, the courts have relied upon the principles governing
the jurisdiction of civil courts to entertain actions or proceedings. The principle of "cause
of action" has been applied, though this test is neither comprehensive nor satisfactory.

LOVELY PROFESSIONAL UNIVERSITY 163