Industrial Relation In The States Of

Andhra Pradesh, West Bengal,

Uttar Pradesh & Kerala: An
Overview

Submitted to:
Dr. Anupriya Singh

Submitted by:
Akansh Bansal (46)

Parul Bhargava (38)

Rashmi Sharma (20)

Uzma Siddiqui (30)

TABLE OF CONTENT

S.N CONTENT PAGE NO.

O
1. Introduction 2
- Definition of industrial relations 3
- Objectives of industrial relations 5
- Effect of poor industrial relations 6
- Importance of industrial relations 6
- Functional requirements of successful IR
- Country data 9
- Analysis 10
- industrial relation scenario: the trends 13
2. Andhra Pradesh 14
3. Uttar Pradesh 16
4. West Bengal 19
5. Kerala 24
6. Conclusion 30
7. References 31
1 Page
INTRODUCTION
One measure of the failure of social dialogue is the recourse to strike or lockout. Industrial action
– strike and lockout - is perhaps the most high profile aspect of social dialogue, at least in terms
of media coverage and public impact and attention. At the same time in certain circumstances,
the absence of strike action could indicate the absence of the right to strike and/or weak social
dialogue.

The ILO “Resolution concerning statistics of strikes, lockouts and other action due to labour
disputes”6 gives the following definitions for statistical purposes:

A strike is a temporary work stoppage effected by one or more groups of workers with a view to
enforcing or resisting demands or expressing grievances, or supporting other workers in their
demands or grievances.

A lockout is a total or partial temporary closure of one or more places of employment, or the
hindering of the normal work activities of employees, by one or more employers with a view to
enforcing or resisting demands or expressing grievances, or supporting other employers in their
demands or grievances.

Workers involved in a strike: Workers directly involved in a strike are those who participate
directly by stopping work. Workers indirectly involved in a strike are those employees of the
establishments involved, or self-employed workers in the group involved, who did not participate
directly by stopping work but who were prevented from working because of the strike.

Workers involved in a lockout: Workers directly involved in a lockout are those employees of
the establishments involved who were directly concerned by the labor dispute and who were
prevented from working by the lockout. Workers indirectly involved in a lockout are those
employees of the establishments involved who were not directly concerned by the labor dispute
but who were prevented from working by the lockout.

With the rapid industrialization of the country the problems of labor management relations
concerning strikes and lock-outs have multiplied. In many industrially advanced
countries the system of collective bargaining has been adopted to resolve problems of wages
and to regulate conditions of employment. India, which is passing through a transition, has
2

adopted adjudication system as an alternative to collective bargaining. Further the law relating to
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strikes and lock-outs is regulated not only by what is generally known as labor legislation but
also by the provisions of the Constitution, the criminal law and other statutes which aim at
preserving law and order in the country
DEFINITION OF INDUSTRIAL RELATION

The relationship between Employer and employee or trade unions is called Industrial Relation.
Harmonious relationship is necessary for both employers and employees to safeguard the
interests of the both the parties of the production. In order to maintain good relationship with the
employees, the main functions of every organization should avoid any dispute with them or settle
it as early as possible so as to ensure industrial peace and higher productivity. Personnel
management is mainly concerned with the human relation in industry because the main theme of
personnel management is to get the work done by the human power and it fails in its objectives if
good industrial relations are not maintained.

Various definitions of Industrial Relations include:-

1. Industrial Relation is that part of management which is concerned with the manpower of
the enterprise – whether machine operator, skilled worker or manager. BETHEL, SMITH
& GROUP
2. Industrial Relation is a relation between employer and employees, employees and
employees and employees and trade unions. - Industrial dispute Act 1947
3. While moving from jungle of the definitions, here, Industrial Relation is viewed as the
“process by which people and their organizations interact at the place of work to establish
the terms and conditions of employment.”

The Industrial Relation relations also called as labor - management, employee-employers

relations.

A few notable features pertaining to Industrial Relations are as under:

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1. Industrial Relation do not emerge in vacuum they are born of employment relationship in
an industrial setting. Without the existence of the two parties, i.e. labor and management,
this relationship cannot exist. It is the industry, which provides the environment for
industrial relations.
2. Industrial Relation are characterized by both conflict and co-operations. This is the basis
of adverse relationship. So the focus of Industrial Relations in on the study of the
attitudes, relationships, practices and procedure developed by the contending parties to
resolve or at least minimize conflicts.
 3. As the labor and management do not operate in isolations but are parts of large system, so
the study of Industrial Relation also includes vital environment issues like technology of
the workplace, country’s socio-economic and political environment, nation’s labor
policy, attitude of trade unions workers and employers.
4. Industrial Relation also involve the study of conditions conductive to the labor,
managements co-operations as well as the practices and procedures required to elicit the
desired co-operation from both the parties.
5. Industrial Relations also study the laws, rules regulations agreements, awards of courts,
customs and traditions, as well as policy framework laid down by the governments for
eliciting co-operations between labor and management. Besides this, it makes an in-depth
analysis of the interference patterns of the executive and judiciary in the regulations of
labor–managements relations.

In fact the concepts of Industrial Relations are very broad-based, drawing heavily from a variety
of discipline like social sciences, humanities, behavioral sciences, laws etc.

Industrial Relation encompasses all such factors that influence behavior of people at work. A few
such important factors are details below:

1. Institution: It includes government, employers, trade unions, unions’ federations or

associations, government bodies, labor courts, tribunals and other organizations which
have direct or indirect impact on the industrial relations systems.
2. Characters : It aims to study the role of workers unions and employers’ federations
officials, shop stewards, industrial relations officers/ manager, mediator/conciliators /
arbitrator, judges of labor court, tribunal etc.
3. Methods : Focus on collective bargaining, workers’ participation in the Industrial
Relation schemes, discipline procedure, grievance redressal machinery, dispute
settlements machinery working of closed shops, union reorganization, organizations of
protests through methods like revisions of existing rules, regulations, policies,
procedures, hearing of labor courts, tribunals etc.
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4. Contents : Includes matter pertaining to employment conditions like pay, hours of works,
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leave with wages, health, and safety disciplinary actions, lay-off, dismissals retirements
etc., laws relating to such activities, regulations governing labor welfare, social security,
industrial relations, issues concerning with workers’ participation in management,
collective bargaining, etc.
OBJECTIVES OF INDUSTRIAL RELATION:

1. To safeguard the interest of labor and management by securing the highest level of
mutual understanding and good-will among all those sections in the industry which
participate in the process of production.
2. To avoid industrial conflict or strife and develop harmonious relations, which are an
essential factor in the productivity of workers and the industrial progress of a country.
3. To raise productivity to a higher level in an era of full employment by lessening the
tendency to high turnover and frequency absenteeism.
4. To establish and nurse the growth of an Industrial Democracy based on labor partnership
in the sharing of profits and of managerial decisions, so that ban individuals personality
may grow its full stature for the benefit of the industry and of the country as well.
5. To eliminate, as far as is possible and practicable, strikes, lockouts and gheraos by
providing reasonable wages, improved living and working conditions, said fringe
benefits.
6. To establish government control of such plants and units as are running at a loss or in
which productions has to be regulated in the public interest.
7. Improvements in the economic conditions of workers in the existing state of industrial
managements and political government.
8. Control exercised by the state over industrial undertaking with a view to regulating
production and promoting harmonious industrial relations.
9. Socializations or rationalization of industries by making he state itself a major employer
10. Vesting of a proprietary interest of the workers in the industries in which they are
employed.

The main aspects of Industrial Relations are :-

1. Labor Relations, i.e. relations between union and management.

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2. Employer-employees relations, i.e. relations between management and employees.

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3. Group relations, i.e. relations between various groups of workmen.

4. Community or Public relations, i.e. relations between industry and society.

5. Promotions and development of healthy labor-managements relations.

6. Maintenance of industrial peace and avoidance of industrial strife

7. Development of true industrial Democracy

EFFECTS OF POOR INDUSTRIAL RELATIONS

Poor Industrial Relation produces highly disquieting effects on the economic life of the country.
We may enumerate the ill-effects of poor Industrial Relations as under:

1. Multiplier effects: Modern industry and for that matter modern economy are
interdependent. Hence although the direct loss caused due to industrial conflict in any one
plant may not be very great, the total loss caused due to its multipliers effect on the total
economy is always very great.
2. Fall in normal tempo: Poor Industrial Relations adversely affect the normal tempo of
work so that work far below the optimum level. Costs build up. Absenteeism and labor
turnover increase. Plants discipline breaks down and both the quality and quality of
production suffer.
3. Resistance to change: Dynamic industrial situation calls for change more or less
continuously. Methods have to be improved. Economics have to be introduced. New
products have to be designed, produced and put in the market. Each of these tasks
involves a whole chain of changes and this is resisted bitterly if these are industrial
conflict.
4. Frustration and social cost: Every man comes to the work place not only to earn a living
but to satisfy his social needs also. When he finds difficulty in satisfying these needs he
feels frustrated. Poor Industrial Relations take a heavy toll in terms of human frustration.
They reduce cordiality and aggravate social tension.

IMPORTANCE OF INDUSTRIAL RELATIONS:

Good industrial relations depend on a great variety of factors. Some of the more obvious ones are
listed below:
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1. History of industrial relations – No enterprise can escape its good and bad history of
industrial relations. A good history is marked by harmonious relationship between
management and workers. A bad history by contrast is characterized by militant strikes
and lockouts. Both types of history have a tendency to perpetuate themselves. Once
militancy is established as a mode of operations there is a tendency for militancy to
continue. Or once harmonious relationship is established there is a tendency for harmony
to continue.
2. Economic satisfaction of workers – Psychologists recognize that human needs have a
certain priority. Need number one is the basic survival need. Much of men conducted are
dominated by this need. Man works because he wants to survive. This is all the more for
 underdeveloped countries where workers are still living under subsistence conditions.
Hence economic satisfaction of workers is another important prerequisite for good
industrial relations.
3. Social and Psychological satisfaction – Identifying the social and psychological urges of
workers is a very important steps in the direction of building good industrial relations. A
man does not live by bread alone. He has several other needs besides his physical needs
which should also be given due attention by the employer. An organization is a joint
venture involving a climate of human and social relationships wherein each participant
feels that he is fulfilling his needs and contributing to the needs of others. This supportive
climate requires economic rewards as well as social and psychological rewards such as
workers’ participation in management, job enrichment, suggestion schemes, re-dressal of
grievances etc.
4. Off-the-Job Conditions – An employer employs a whole person rather than certain
separate characteristics. A person’s traits are all part of one system making up a whole
man. His home life is not separable from his work life and his emotional condition is not
separate from his physical condition. Hence for good industrial relations it is not enough
that the worker’s factory life alone should be taken care of his off-the-job conditions
should also be improved to make the industrial relations better.
5. Enlightened Trade Unions – The most important condition necessary for good industrial
relations is a strong and enlightened labor movement which may help to promote the
status of labor without harming the interests of management, Unions should talk of
employee contribution and responsibility. Unions should exhort workers to produce
more, persuade management to pay more, mobilize public opinion on vital labor issues
and help Government to enact progressive labor laws.
6. Negotiating skills and attitudes of management and workers – Both management and
workers’ representation in the area of industrial relations come from a great variety of
backgrounds in terms of training, education, experience and attitudes. These varying
backgrounds play a major role in shaping the character of industrial relations. Generally
speaking, well-trained and experienced negotiators who are motivated by a desire for
industrial peace create a bargaining atmosphere conducive to the writing of a just and
equitable collective agreement. On the other hand, ignorant, inexperienced and ill-trained
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persons fail because they do not recognize that collective bargaining is a difficult human
activity which deals as much in the emotions of people as in their economic interests. It
requires careful preparation and top –notch executive competence. It is not usually
accomplished by some easy trick or gimmick. Parties must have trust and confidence in
each other. They must possess empathy, i.e. they should be able to perceive a problem
from the opposite angle with an open mind. They should put themselves in the shoes of
the other party and then diagnose the problem. Other factors which help to create mutual
trust are respect for the law and breadth of the vision. Both parties should show full
respect for legal and voluntary obligations and should avoid the tendency to make a
mountain of a mole hill.
 7. Public policy and legislation: - when Government, regulates employee relations, it
becomes a third major force determining industrial relations the first two being the
employer and the union. Human behavior is then further complicated as all three forces
interact in a single employee relation situation. Nonetheless, government in all countries
intervenes in management – union relationship by enforcing labor laws and by insisting
that the goals of whole society shall take precedence over those of either of the parties.
Government intervention helps in three different ways 1) it helps in catching and solving
problems before they become serious. Almost every one agrees that it is better to prevent
fires them to try stopping them after they start; 2) It provides a formalized means to the
workers and employers to give emotional release to their dissatisfaction; and 3) It acts as
a check and balance upon arbitrary and capricious management action.
8. Better education: - with rising skills and education workers’ expectations in respect of
rewards increase. It is a common knowledge that the industrial worker in India is
generally illiterate and is misled by outside trade union leaders who have their own axe to
grind. Better workers’ education can be a solution to this problem. This alone can provide
worker with a proper sense of responsibility, which they owe to the organization in
particular, and to the community in general.
9. Nature of industry: - In those industries where the costs constitute a major proportion of
the total cast, lowering down the labor costs become important when the product is not a
necessity and therefore, there is a little possibility to pass additional costs on to consumer.
Such periods, level of employment and wages rise in decline in employment and wages.
This makes workers unhappy and destroys good industrial relations.

FUNCTIONAL REQUIREMENTS OF A SUCCESSFUL INDUSTRIAL

RELATIONS PROGRAMME

The basic requirements on which a successful industrial relations programme is based are:-
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1. Top Management Support: - Since industrial relations is a functional staff service, it must
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necessarily derive its authority from the line organization. This is ensured by providing
that the industrial relations director should report to a top line authority to the president,
chairman or vice president of an organization.
2. Sound Personnel Policies: - These constitute the business philosophy of an organization
and guide it in arriving at its human relations decisions. The purpose of such policies is to
decide, before any emergency arises, what shall be done about the large number of
problems which crop up every day during the working of an organization. Policies can be
successful only when they are followed at all the level of an enterprise, from top to
bottom.
 3. Adequate Practices should be developed by professionals: - In the field to assist in the
implementation of the policies of an organization. A system of procedures is essential if
intention is to be properly translated into action. The procedures and practices of an
industrial relations department are the “tool of management” which enables a supervisor
to keep ahead of his job that of the time-keeper, rate adjuster, grievance reporter and
merit rater.
4. Detailed Supervisory Training :- To ensure the organizational policies and practices are
properly implemented and carried into effect by the industrial relations staff, job
supervisors should be trained thoroughly, so that they may convey to the employees the
significance of those policies and practices. They should, moreover, be trained in
leadership and in communications.
5. Follow-up of Results: - A constant review of an industrial relations programme is
essential, so that existing practices may be properly evaluated and a check may be
exercised on certain undesirable tendencies, should they manifest themselves. A follow
up of turnover, absenteeism, departmental morale, employee grievances and suggestion;
wage administration, etc. should be supplemented by continuous research to ensure that
the policies that have been pursued are best fitted to company needs and employee
satisfaction. Hints of problem areas may be found in exit interviews, in trade union
demands and in management meetings, as well as in formal social sciences research.

COUNTRY DATA

ITEM 2002 2003  2004 2005

A. No. of Strikes 295 255 236 227

No. of Workers 900,386 1,010,976 1,903,054 2,722,784

Involved

No. of Mandays lost 9,664,537 3,205,950 4,828,737 10,800,686

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B. No. of Lockouts 284 297 241 229

No. of Workers 179,048 804,969 169,167 190,817

 Involved

No. of Mandays lost 16,921,382 2,70,49,961 19,037,630 18,864,313

RIGHT TO STRIKE UNDER INDUSTRIAL DISPUTE ACT, 1947

Every right comes with its own duties. Most powerful rights have more duties attached to them.
Today, in each country of globe whether it is democratic, capitalist, socialist, give right to strike
to the workers. But this right must be the weapon of last resort because if this right is misused, it
will create a problem in the production and financial profit of the industry. This would ultimately
affect the economy of the country. Today, most of the countries, especially India, are dependent
upon foreign investment and under these circumstances it is necessary that countries who seek
foreign investment must keep some safeguard in their respective industry.

A review of data on work stoppages arising out of industrial disputes reveals a significant
improvement in industrial relations scenario during the Nineties as compared to the Eighties,
labor ministry sources state.

According to the reports strikes and lockouts have shown not only a declining trend but also a
steep fall. The number of such disputes dipped from 1,825 during 1990 to 555 during 2001.

The total number of strikes and lockouts has also declined. While in the public sector, the
number dropped drastically from 628 during 1990 to a paltry 112 during 2001, the private sector
witnessed a perceptible drop in industrial disputes from 1,197 during 1990 to 443 during 2001,
according to the government.

Attributing the improvement in the industrial relations to harmonious atmosphere conducive to

higher investment and growth, officials said the new economic policy has brought about positive
changes in the post-reform era.

Official claims were disputed by the Centre of Industrial Trade Unions (Citu), which is affiliated
to the CPM. In a press release, Citu said the government claim is based on data that is at best a
quick estimate. Quoting the Shimla-based Labour Bureau, the union said, "the number of
workers involved in strike/lockouts during 1991 was 13.42 lakh, as against 14.18 lakh during
2000. The number of man-days lost also increased from 26.43 million in 1991 to 28.76 million."
The government is hiding this aspect of the data.

ANALYSIS
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In 1990, 1,825 strikes and lockouts were recorded. As a result, 24.1 million workdays were lost,
from which 10.6 million were lost to strikes and 13.5 million to lockouts. More than 1.3 million
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workers were involved in these labor disputes. The number and seriousness of strikes and
lockouts have varied from year to year. As can be seen from the below chart, there has been a
steep decline in the number of strikes and lockouts. This continuous decline in strikes and
lockouts indicates that the industrial relations in India are improving. There were 227 strikes in
2005, resulting in the loss of 10.81 million man-days, while the number of lockouts stood at 229
with a loss of 18.86 million man-days. In January-September 2006, there were only 154 strikes
and 192 lockouts across the country, as compared to the statistics of 2005, which resulted in the
time loss of 3.16 million man-days and 10.60 million man-days respectively
The number of strikes and lockouts, taken together, was down by 4.4 per cent in 2005. During
2005, West Bengal experienced the maximum instances of strikes and lockouts (19216) followed
by Kerala (3619) and Rajasthan (19247). Industrial disturbances were concentrated mainly in
manufacturing (textile), financial intermediation, agriculture and mining and quarrying industries
during 2005.
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During 2000, 426 strikes and 325 lockouts were observed which resulted in total time-loss of
28.76 million mandays. Maximum time-loss was caused by 297 lockouts during 2003 which
resulted in a time-loss of 27.05 million mandays. As compared to previous years, in 2006 only
13.76 million mandays were lost due to strikes and lockouts.

In 2009, Over five million mandays were lost due to strikes and lockouts in the country, while
61 units closed down affecting around 2200 workers.

In its latest report, the Labour Bureau said Andhra Pradesh, West Bengal, Himachal Pradesh,
Rajasthan, Tamil Nadu and Kerala figured high on the list of states where mandays were lost due
to unrest in industrial units and other manufacturing centres. 

However, it said despite the recession, the number of workers losing jobs was less than the
12

previous year. While 3052 workers lost jobs in 2008, the figure came down to 2010 in year 2009.
Also, 61 units were closed down last year. 
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Andhra Pradesh was at the top of the pecking order with more than 22 lakh mandays lost,
followed by West Bengal and Himachal Pradesh with over ten lakh and five lakh mandays lost
respectively, the report said. 
Incidentally, the loss of mandays last year was far less than the previous year, it noted.
INDUSTRIAL RELATION SCENARIO : the trends

1. The industrial situation as a result of mandays lost on account of strikes and lockouts, has
shown improvement in recent years. Despite increase in the number of strikes and
lockouts in 1997 compared to 1996, the mandays lost due to these agitations have
actually declined. The total number of strikes and lockouts increased from 1166 in 1996
to 1305 in 1997, but the mandays lost on account of these strikes and lockouts declined
from 20.3 million in 1996 to 17 million in 1997. Among the states, Andhra pradesh,
Tamil Nadu, Gujarat and West Bengal recorded most of the agitations. Cotton textiles,
engineering and jute hemp and mesta textiles were the industrial groups which witnessed
maximum loss of mandays on account of strikes and lockouts.
2. Wage and wage related issues, personnel issues, retrenchment and indiscipline have been
identified as major reasons behind strikes and lockouts. Protests against privatisation and
entries of multinationals are issues that have gained importance in recent years.
3. The steady improvement in industrial relations has been possible mainly because of the
Government’s proactive role through timely and effective conciliation of industrial
disputes and involvement of the social partners at various bipartite-tripartite fora for the
formulation of labour and industrial policies.
4. One important issue, which needs to be addressed, is the extant labour laws especially
Industrial Disputes Act (IDA) 1947, which governs lay off, retrenchment and closure.
Central and State Governments have often been inhibited in granting necessary
permissions for closure, even when economic compulsions justified granting of such
permissions. It has often been observed that the present legal provisions and procedures
restrict labour market flexibility and thereby discourage growth of employment. A
thorough review of the provisions of the IDA and other labour legislations is called for to
impart greater flexibility to the labour market and thereby encourage more employment.
5. Considering the radical changes that have taken place in the domestic industrial scenario
and the labour market, the Government has decided to set up the Second National
Commission on Labour to suggest among others, rationalisation of the existing laws in
the organised sector so as to make them more relevant and appropriate in the changing
context of globalisation and opening up of the Indian economy.
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ANDHRA PRADESH
AP sugar industry

Andhra Pradesh (AP) abounds in maximum number of private sector sugar companies in India
along with Tamil Nadu and Karnataka. Andhra Pradesh sugar industry ranks 3rd in terms of
recovery and 5th in terms of cane crushing. As per production capacity is concerned, Andhra
Pradesh stands at the position 5 in India.
 The agricultural laborers who do sugarcane harvesting and cultivation are employed in the sugar
industry in Andhra Pradesh. Today, the unprecedented growth of this industry in the state has led
to the consolidation of village resources and has facilitated communication, employment and
transport system here. 

In 2003 the state demonstrated a sharp decline in mandays lost in strikes and lockouts is where
the figure of 71.29 lakh mandays lost declined to 9.57 lakh in 2004 which was a drop of more
than 86 percent between 2003 and 2004

Strikes in Andhra Pradesh

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1. Apache footwear company declared a lockout till 16th march 2010. With talks having
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failed between the Apache Footwear Company authorities and the workers on
Wednesday, the management declared ‘No Pay and No Work' for one week.
Production was hit as the company officials suspended work on March 9 and 10, due to
the agitation launched by the workers seeking better deal. The footwear company, located
in Mambattu village in Tada mandal in the district, started production two years ago and
about 6,000 workers are working in the firm.

The workers staged a dharna in front of the company's main gate and damaged the glass
panes on alleging that the management was not providing proper facilities for them.
 The workers argued that the management was not paying wages for overtime duties and
not paying insurance and medical allowance to the workers.However, management said
the company was paying as per the Labour Act. As the talks were not fruitful, the
management announced lockout till March 16.

2. Nokia’s Sriperumbudur plant witnessed a standby in the production of company’s handsets.

Around 2,000 workers called off their daily production after 62 employees were placed under
‘suspension pending inquiry’ in January 2010. This is the second time in the past six months that
the work has been disrupted due to strike. The workers have alleged the management for
suspending 62 employees without assigning the reason.

Nokia officials have underlined that the employees have committed the acts of serious
misconduct which are serious reasons in respect to their suspensions. The whole issue started
after the refusal of a worker to take a different shift. There was misunderstanding with the
management over the issue and later the issue caught fire after others raised their voices to join
the protest.

Both the parties were advised to solve the issue amicably and cease the strike as early as possible.
In this respect, a meeting has been fixed with the deputy commissioner on January 25, 2010
which could not lead to any substantial result except for a temporary solution.
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UTTAR PRADESH

RECENT STRIKES IN UTTAR PRADESH

1. Electricity Employee unions of UP have gave a call for "work boycott"  from january 1,
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2009 demanding revision of their pay scales according to the Sixth Pay Commission
recommendations. The pay scales of power employees were last revised 12 years before
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in 1996, that too, after the employees went on indefinite strike. The unions, however,
exempted those working in shifts in the transmission and generation wings of the power
sector.

The Mayawati government implemented the pay panel's suggestions for state government
employees, teachers and non-teaching staff with effect from December 1, 2008.

Blaming the management of the Uttar Pradesh Power Corporation Limited (UPPCL),
media convener of the Power Employees’ Joint Action Committee, Shailendra Dubey
 said: "The management has forced us to resort to an agitation, as it was reluctant to grant
us the recommendations of the Sixth Pay Commission. This, even after the categorical
announcement by the energy minister on November 19 that new pay scale will be
implemented the from the New Year."

"The power distribution network was under tremendous pressure due to the cold wave
sweeping the state. The employees in the distribution wing of UPPCL will not attend to
any fault in distribution lines and transformers on January 2 and 3," he added.

According to Dube, though the UPPCL management has completed the preliminary
exercise for the revision of the pay scales, it was delaying its implementation.

The revision of the pay scales as per the Sixth Pay Commission will entail an additional
non-recurring expenditure of Rs 1,600 crore on the arrears and an annual recurring
expenditure of Rs 360 crore on the UPPCL, its four subsidiaries and the Uttar Pradesh
Thermal Power Generation Corporation.

2. Malvika Steel, a Rs.1500-crore mega plant, was conceptualised when Amethi was
represented by Prime Minister Rajiv Gandhi. Around 724 acres of land in Jagdishpur was
acquired in 1989 but the plant began production only in 1996. Earlier known as Usha
Rectifier, it was renamed Malvika Steel in 1996.

However, within two years, the plant became a sick unit and a lock-out was declared in
1998, putting the fate of about 3,000 employees in jeopardy. The unit was referred to the
Board of Financial and Industrial Reconstruction. Following a revival package approved
by the Board, Malvika Steel was awarded to Messrs Jai Prakash Associates in 2007
through tendering process. However, the deal with the JP group could not materialise.

According to informed sources, the workers of the plant were reportedly not in favour of
the unit being taken over by a private player.

3. Beleaguered two-wheeler maker LML declared a lock-out at its sole production unit at
Kanpur on Tuesday citing an illegal strike by its workers. In its statement the company
17

said, “Some workmen instigated by external rowdy elements had been resorting to
actions disrupting the peaceful atmosphere and working of the factory.
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workers had resorted to the strike as they were paid only half their wages and salaries for
January and that decisions on these for February was not taken. The factory employs
some 2,000 people and rolls out close to 500 two-wheelers a day

the lockout however was lifted after the tripartite agreement between the LML
Management, the Lohia Machines Karamchari Sangh, and the labour commissioner. The
other unregistered LML workers union, led by JP Pandey, was not part of the
negotiations. Workers who will be taken will be paid full wages and those left out will be
 paid half the basic wage plus dearness allowance, according to the provisions of the UP
Industrial Disputes Act, and will be treated as lay off.
The bonus payment due to the workers of which 50 per cent was paid earlier and the rest
was not paid despite promise made by the management, will now be paid in three
installments in the month of June, August and September.  However, due to the paucity
of funds, the management has been able to prevail upon the labour commissioner to agree
that the 50 per cent of the lay-off allowance, which is 50 per cent of the basic wage plus
DA, will be paid immediately and the remaining 50 per cent will be paid after the
management package before the BIFR is passed. However, this quantum will be credited
in the workers account.  

Another significant feature is that the see off will not be applicable any more. Once a
worker is taken into the factory, then he will continue to be in the factory and will not be
laid off nor will he be given a see-off.

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WEST BENGAL
In 2005 west Bengal Contributed more than 60 per cent — the highest of any state — of all
mandays lost due to strikes and lockouts in the country in. The dark cloud over West Bengal has
one silver lining: the number of mandays lost in the state , 139.9 lakh,in 2006 was down by more
than 20% from the previous year, a drop almost five times the national average.

Looking from the angle of the contribution of different industry segments, the manufacturing
sector accounted for more than 73% of the total mandays lost in strikes and lockouts. This
indicates a relatively smaller share of mandays lost out in other, more specifically services,
industry segments. This has important implications given the unions’ decision to organise labour
in the IT industry in West Bengal.

POLITICAL AND SOCIO-ECONOMIC BACKGROUND

West Bengal is a state in eastern India where the British East India Company cemented its hold
on the region following the Battle of Plassey in 1757, and the city of Calcutta (now known as
Kolkata) served for many years as the capital of British India. The state was at the forefront of
the Indian independence movement through the late nineteenth and early twentieth centuries.
With a land area of 88,752 sq. km and a population of 80.2 million in 2001, West Bengal has the
highest population density in India, of 904 persons per sq. km. An agriculture dependent state,
West Bengal occupies only 2.7 per cent of India’s land area, though it supports over 7.8 per cent
of the population. With the River Ganga flowing down half its length, a major port at Kolkata
and a long tradition of maritime trade, Bengal attracted merchants and travellers not only from
the local hinterland but from areas as far as Europe and the Far East.
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The Net Domestic Product of the state compares as follows with other major states of India.
These four industries—coal, engineering, jute, and iron and steel, referred to as traditional
industries—dominated Bengal’s economy for many years and are also the cause of a skewed
pattern of industrialization in the state. Early industrialization had a catalytic effect on both the
nationalist movement and the trade union movement and helped link them. Many of the early
union leaders like C.R. Das and Netaji Subhash Chandra Bose were freedom fighters and
nationalist stalwarts. The more extremist form of the nationalist movement, furthered by
intellectual revolt against pacifist trends in the Indian National Congress, probably helped
establish a tradition of militancy in the union movement in Bengal.

In addition to the operation of these all-India statutes, West Bengal has the following legislation
applicable exclusively to the state:

1. West Bengal Trade Unions (Amendment) Act, 1983 provides for recognition of trade
unions based on elections among unions in a manufacturing establishment or industry, or
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mine or plantation and formation of bargaining councils. Interestingly, the Act does not
yet cover white collar establishments like banks and insurance companies. This Act was
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necessitated by the lack of recognition provisions in the all-India law. (See section on
trade unions’ bargaining status later.)
2. West Bengal Payment of Subsistence Allowance Act, 1969 provides relief to workers
placed under suspension to the extent of 50 per cent of basic wages, dearness allowance
(DA) and a few other allowances for the first 90 days and 75 per cent thereafter till
disposal. These provisions are better than those provided in the Industrial Disputes Act,
1947.
 3. West Bengal Workmen’s House Rent Allowance Act, 1974 applies to establishments
employing 50 or more persons and stipulates a payment of 5 per cent of basic wages as
house rent allowance. There is no all-India law on this.

In addition there are several schemes for employees. West Bengal introduced in October 1998 a
scheme for Financial Assistance to the Workers of Locked-out Units (FAWLOI) for payment of
a monthly amount of Rs 500 with effect from 1 April 1998.

The West Bengal government had no declared policy on labour on its website in 2006, not
because labour has ceased to be of importance, but because labour is difficult to have a policy on
at this juncture. Given the economic history of the state, the Left Front government is being
forced by circumstances to drive an aggressive industrial growth policy to create more
employment, similar to what is happening in Orissa, Jharkhand and even to some extent in Bihar,
the other eastern states. Its policy on public enterprises is to rationalize its own industrial units
and to look at and take serious decisions on the viability of the undertakings. Specifically its
policy is to (a) close structurally unviable units, (b) restructure potentially viable units,
combining business, financial and administrative restructuring for retention under ownership of
government, and (c) seek joint venture partners through investment of up to 74 per cent of equity
in some potentially viable units requiring investment to attain viability.

Workers’ organizations

The major central unions in West Bengal are:

 Centre of Indian Trade Unions (CITU) (Membership– 1,127,497]:2 A national central
trade union in India founded in 1970, politically attached to the Communist Party of India
(Marxist). It was the result of a split in the AITUC after the Chinese invasion of India in
1962 and the split in the Communist Party of India itself. It used to be affiliated to the
World Federation of Trade Unions (WFTU).
 Indian National Trade Union Congress (INTUC) (Membership: 498,650): The trade
union wing of the Indian National Congress, it was founded in 1947 by many who broke
away from the AITUC and is affiliated with the ITUC (International Trade Union
Confederation) Asia Pacific.
 All India Trade Union Congress (AITUC) (Membership: 576,365): Is the oldest trade
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union forum in India and one of the five largest. It was founded in 1920 and until 1945,
when unions became organized on party lines, it was the central trade union organization
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in India. Since then it is generally believed to be affiliated to the Communist Party of

India but it does not acknowledge this. It is a founder member of WFTU.
 Bharatiya Mazdoor Sangh (BMS) (Membership: 136,514): Is the largest central trade
union organization in India and was founded in July 1955 with 5,680 affiliated unions. It
is not, however, affiliated to any international trade union confederation although it has
relations with central labour organizations of other countries and has been taking part in
the ILO sessions at Geneva for the past 25 years.
  Hind Mazdoor Sabha (HMS) (Membership: 239614): Is a national trade union centre in
India founded in December 1948 and is affiliated with the International Trade Union
Confederation. It has 2,300 unions affiliated to it.
 United Trade Union Congress (UTUC) (Membership: 1,066,302 + 547,133 = 1,613,435):
Had split and there are two central organizations, one referred to as UTUC (Lenin Sarani
[LS]) linked with the Socialis Unity Center of India (SUCI), and the other known as
United Trade Union Congress (UTUC) (B.B. Ganguly Str) linked to the Revolutionary
Socialist Party (RSP). While both are signatories to several tripartite industry-wide
agreements, they have very little presence outside West Bengal.
 Trade Union Coordination Committee (TUCC) (Membership: [646,288): Is linked to the
All-India Forward Bloc and is also a signatory to several agreements.
 National Federation of Indian Trade Unions (NFITU) (Membership: 31,127): A
nonaffiliated block of unions which participates in the State Labour Advisotry Board
(SLAB) and in some industry-wide negotiations.
 Indian National Trinamul Trade Union Congress (INTTUC) (Membership: Not
available): Is a splinter formed out of the INTUC by the Trinamul Congress, a party led
by one-time Congress Youth leader Mamata Banerjee. However its trade union presence
is relatively small compared to its political position as the main opposition party in West
Bengal.

STRIKES IN WEST BENGAL

1. Tyre Corporation of India at Kankinara (a central public sector undertaking), which

reduced its workforce of about 1,200 in 2005 to just 350 in 2007. Its Tangra unit which
used to employ about 1,800 persons had been closed down. The West Bengal government
undertaking, Neopipes and Tubes, and three spinning mills have closed down. INTUC
can accept private buyers taking over sick units, but questions the government’s actions
in deciding to close or sell such units for which there are no bidders. According to the
union, about 140,000 workers have lost their jobs. It wants to build up a sustained
movement against the curtailment of worker benefits, and the hire-and-fire system being
adopted not only in the private sector but also public sector organizations.

Ironically, the same unions which resisted modernization earlier have demanded
technological upgradation in many of the sick plants in the engineering and jute
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industries and tea plantations, primarily because they are now unable to face competition
both domestically and internationally.
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These factors have compelled the government to actively re-industrialize the state from
the late 1990s. Economic rejuvenation is underway and there has been a spurt in the
state’s economic and industrial growth

2. Tata Tea declared a lock-out at North Bengal estate on September 05,2007. This was the time
when the center was trying to reopen the closed tea gardens of the area. The point of contention
was that the workers were made to work seven days a week, including Sunday, the weekly off.
The trade union concerned was the Cha Bagan Mazdoor Union, affiliated to Citu. The clause that
if the workers did not work on Sundays they would not be given any work for the next 8-10 days
was implemented without consulting the trade union members. The union demanded to the
plantation owners’ association that the estate be re-opened immediately.

Cha Bagan Mazdoor Union represents around 80 per cent of the workers in the four West Bengal
estates of Tata Tea .With the lock-out at Dam Dim, there are now 14 closed tea gardens in North
Bengal. They also said that the Dam Dim manager was repeatedly requested to repair the homes
of workers but he did not pay any heed. Dam Dim employs around 1,400 permanent workers.
Social cost has been a bone of contention between the workers and the producers.The producers
claim that the social cost had rendered the gardens unviable. Industry sources pointed out that
labour accounted for more than 55 per cent of the total cost of production.

The tripartite agreement of 1969 and subsequent similar agreements compelled the industry to
maintain the total employment in the tea gardens prevailing at the time of the agreement. some of
casual workers at Dam Dim were also retrenched without discussing with the Unions.

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KERALA
According to figures released by the Labour Bureau for 2005, next to West Bengal, the two
biggest contributors to mandays lost last year were Kerala, with 30.6 lakh (13.5% of the national
figure) and Rajasthan, with 19.3 lakh (8.29%). For Kerala, this was an almost five-fold increase
from the previous year with officials attributing it to the labour crisis in the plantation sector last
year. For Rajasthan, it was a 45% increase

INDUSTRIAL RELATIONS SCENARIO

1. Tripartite Bodies
a. Industrial Relations Board headed by the Hon'ble Minister for Labour
b. 18 Industrial Relations Committees for major industries with the Labour
Commissioner as Chairman
2. Plantation Labour Committee (PLC) is the first IRC in the state
3. Major issues including wages, bonus etc. are discussed and settled in these committees.
4. Wages settlements signed before the IRCs for the major employments are notified under
the Minimum Wages Act 1948 (Hence enforcement of wages is easier in these sectors
compared to other sectors.)

Recognition of Trade Unions

1. No statutory provision for recognition of Trade Unions

2. Conducted referendum in 12 major industrial establishments in the public and private
sector during the last 4 years.
3. A legislation for compulsory recognition of Trade Unions is under consideration (A draft
Bill suggesting 30% membership is already proposed)

Long term settlements

1. Productivity-linked long-term settlements are encouraged.

2. Including public sector undertakings, 7 long term settlements were made during the past
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3 years.
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Enforcement

1. Separate enforcement wing with 123 inspectors including the Labour Commissioner
2. Separate inspectorate for plantations
3. Special squad with Inspectors of Factories and Boilers, P.F, E.S.I, Legal Meteorological
Department and T.U officials for cashew industry.
4. Special squad under the supervision of DLOs (Enforcement) for inspections in
establishment having 5 or more workers.
5. Classification of establishments based on number of employees for effective inspections.
 6. Co-ordination of other agencies for effective enforcement (local bodies, other
Government Departments. etc.)
7. Separate legislation for regulating the service conditions of headload workers.
8. Child Labour
a. Policy of the Government is to prohibit child labour in any form (including
domestic servants) in the state.
b. A legislation for prohibition of Child Labour is under way. (A draft' Kerala Child
Labour Prohibition Bill' is already proposed)
c. A survey on Child Labour conducted in the wake of the SC judgment showed
10067 child labour, including 1081 in hazardous employments.
d. Subsequent inspections gave improved results.
e. Child Labour Rehabilitation-cum-Welfare Societies registered in all districts with
DCs as Chairman to rehabilitate the child labours withdrawn from hazardous
employments
f. Started 15 remedial education centres for imparting two hours education for the
working children.
g. A comprehensive survey on Child Labour to assess the actual number of children
engaged in various employments (including domestic service) is entrusted with
the statistical department.

STRIKES IN KERALA:
1. Kochi witnessed a sudden strike by lorry drivers who bring in the containers to the
Cochin Port Trust (CPT). This left ships and hundreds of lorries stranded in and around
this Kerala port city. The lorry drivers claimed that they were being treated badly by the
India Gateway Terminal Pvt. Ltd. (IGT).The strike led to deep trouble in and around the
port as more and more ships that arrive had to drop anchor in the deep sea.

The lorry drivers and the staff of lorries have been treated badly by those who run the
port. They have no facilities for rest and have very little canteen facilities. This has been
brought to the notice of those who manage the port on several occasions, but no action
has been taken. This was reported by the labour union representative of the Cochin Port
Staff Association which is on the board of port trustees.Every day around 1,500 lorries
operate to and from the port premises and the labourers complained that they have to wait
25

for long to finish their loading or unloading.

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The Dubai Port World officials asked the state government to intervene and find a
solution at the earliest.. They said a discussion will take place once the strike is called off
but no discussions with the striking labourers have been slated for the day.

IGT is a special purpose vehicle with 76 percent held by DPW, 15 percent by Container
Corporation of India, five percent by Chakiat group and four percent by Transworld
Shipping. The agreement between CPT and IGT has two parts to it. The first is the
operation of the Cochin Port by IGT for four years and second is the development of the
 International Container Transshipment Terminal (ICTT) at Vallarpadam for 34 years on a
BOT basis at an estimated cost of Rs.24 billion.

2. On jan 5, 2010, More than 30000 private buses went into indefinite strike in kerala
demanding the hike in bus fares. The Kerala High Court said that it won’t be considering
the petitions filed by the bus owners until they withdraw from the ongoing bus strike.

3. In another instance of labour unrest in the automobile sector in kerala, Apollo Tyres
announced a lockout at one of its factories, in Kerala’s Thrissur district, resulting in an
estimated daily loss of Rs 3 crore. This unit constitutes a fourth of Apollo’s total daily
output. Apollo Tyres has four factories: Two in Kerala, one in Gujarat and one at
Chennai. The company mainly manufactures truck and bus cross-ply tyres (bias tyres) at
Perambra. Daily production is estimated at 300 tonnes per day or 100,000 tyres a month.
Since each bias truck tyre costs Rs 9,000, it was estimated the company would incur a
loss of around Rs 90 crore a month or Rs 3 crore each day.

The lockout was announced in the wake of indiscipline among workers, as they were not
agreeing to produce the contracted amount, which in turn has led to financial and material
loss to the company At the time, production had fallen to one-sixth the normal daily
output. However, things improved and were back to normal for some time and then the
workers again began a stir. This time, the company decided to announce a complete
lockout.
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 SOME FACTS ABOUT THE LABOUR RELATIONS IN KERALA:

The graph represents the year wise data of the mandays lost due to various strikes and lockouts in the
state of kerala. The graph shows a drastic dip between the years 73-75 after which it has more or less
remained constant with minor fluctuations.
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 28

The graph represents the various parameters on the basis of which the industrial disputes in kerala are
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categorized.
The table shows sector specific disputes and the mandays lost in the state of kerala between the
period of 1963-93.
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CONCLUSION

India in the present context of economic development programs cannot afford the unqualified
right to the workers to strike or to the employer to lock-out. Compulsory arbitration as an
alternative of collective bargaining has come to stay. The adoption of compulsory arbitration
does not, however, necessarily mean denial of the right to strike or stifling of trade union
movement. If the benefits of legislation, settlements and awards are to reach the individual
worker, not only the trade union movement has to be encouraged and its outlook broadened but
the laws have also be suitably tailored. The existing legislation and Judicial pronouncements lack
breadth of vision. Indeed, the statutory definitions of “strike” and “lock-out” have been rendered
worse by a system of interpretation which is devoid of policy-oriented approach and which lays
undue stress on semantics. The discussion of the concepts and definition of strike has sought to
establish that legalistic consideration has frequently weighed with the court in interpreting and
expounding the said statutory definition: We believe that emphasis on literal interpretation
resulted in ignoring the ordinarily understood connotation of the term “strike” and in
encouraging undesirable activity. We now pass on to acts which constitute strike. Unlike the
Industrial Relations Bill, 1978 the three phrases used in the definition of "strike" in IDA are not
qualified by the expression “total” or “partial”. Further, they do not specifically take into account
go-slow. The Courts have accordingly excluded go-slow from the purview of “strike”. However,
the exclusion of go-slow from the ambit of "strike" throws them open to the third party suits for
damages.
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REFERENCES

1. http://www.thehindubusinessline.com/2005/11/21/stories/2005112101311300.htm

2. http://www.kerala.gov.in/dept_labour/industrial.htm

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8. http://www.vattal.com/news/lockout-at-birla-tyres-balasore-unit/

9. http://www.thaindian.com/newsportal/uncategorized/tyre-maker-mrf-declares-lockout-at-
puducherry-plant_100158704.html
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13. http://www.business-standard.com/india/news/apollo-tyres-declares-lockout-at-kerala-
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14. http://www.hindu.com/2009/02/26/stories/2009022654680500.htm

15. http://www.kseboa.org/news/electricity-employees-in-uttar-pradesh-to-go-on-strike-
from-today.html

16. http://www.voiceofcochin.com/private-bus-strike-in-kerala/

17. http://www.indiamike.com/india/kerala-f39/strikes-in-kerala-t57851/

18. http://www.thaindian.com/newsportal/business/strike-at-kerala-port-leaves-ships-lorries-
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19. www.ministryof labour.gov

20. www.iloreport.co.in
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