183

V. EVALUATION OF LABOUR LEGISLATIONS.

i) Legislations relating to Industrial Establishments.

ii) Legislations relating to Wages and Bonus.

iii) Legislations relating to Social Security and Labour Welfare.

iv) Legislations relating to Induatrial Relations.

184

Chapter V Evaluation Of Labour Legislation

The objectives of labour Legislations are protection of individual

life and furtherance of Social Walfare. It canot be isolated because

legislations reflect the social paint of view which is largely determined

by the economic needs of the society. The study of these legislations

help us to understand as to why under capitalist conditions of economic

development, freedom of activities without much control is important.

The capitalist countries encourage acumulation of capital as they

distribute only a bare minimum to workers. If the workers remained

silent and there is no compelling force to protect their rights, the capitalist

aproach of treating the workers as an inferior implement in process

of production would have continued. The capitalist would take it as

granted their uncontr©led right to accumulate profit that they are deriving

as result of the production in which the labour is natural partner.

The development of the labour legislations is a story of many

struggles. The workers had to struggle and suffer in the past for improvements

in their working conditions. The colonial rulers treated the labour as a

sives and exploited them. The Labour legislation as we see today is ' t

the result of the struggle and suffering of our pradecessers, who disregarding

all the suffering , fought for the betterment of their brothers. For the

185

furtherance of the workers interest, enlightened employers civilised governments,

philantropists and other right thinking people worked together to promote

labour welfre and provide the working class a decent living. Each Labour

enactment has a histoty of its own with political economic and social

back-ground (1). The cpitalist system that supported the laissez-faire considered

the competitive condition as ideal and it was heavily against the interest

of workers. The freedom of equality offered by the system was only

in words. 'Every man was free if he had a job, independance because

he could live it and equal because he had an oppportunity to be

measured by his ability to earn a living. Thus, freedom was conditional

and 'equality' came to mean, equality for competitive strife'(2). It is

unjust to consider unequal person equal and this is precisely what a

the economic doctrine and the legcil principle of the past procjmed.

The fight of the workers for right to form association and their right

to strike was an attempt to correct the inequality which was inherant

in the principle of inequality before law.

The Labour legislation is based on the Principles which are opposed

to the concept of freedom and equality and doctrine of individulism

and non-interference. Labour legislations, therefore, has four major principles

before them. These principles are social justice, social welfare, national

economy and international uniformity. Legislative measures are to be

undertaken for the achievement of these principles and there are possiibilities

of conflict between these principles to act as a compromising force.

Equality before law alone cannot ensure social justice in a society where

186

there is an economic inequality. Political equality and equality before

the law become useless in such a condition. An employer is far more

supenor than a worker as he has got more education and economic

power while the worker does not have both. Social justice demands

that these inequalities should be removed and opportunities should be

provided to all. In the field of industries, the role of social justice

can be achieved by granting right to association, right to collective bargaining,

right to strike, and also providing special security of services. Even

if an ideal society envisaged these principles this would remain only

on paper if it is not enforced with suitable legislations. The establishment

of a welfare society is a new thinking but an essential requirement

of social justice. The economic needs of the countries also got great

impact on the labour legislations and its implementation. The national

income depends on the production and nations canot become ecd%icaly

strong without industrial production for its efforts to achieve a welfare

state.

(i) Legislations relating to Factones.

The Indian Factories Act, 1948 has undergone a series of changes

since its first enactment in 1881. The first act was mainly to protect

the health and safety measures and control the employment of children

in factories(3). In 1891 the act was amended to enlarge the defination

of factory to include all such establishment with 50 or more workers

working in it. Local Governments were given powers to include factories

187

with 20 or more persons to bring into the preview of the Act. The

Act undergone changes in 1911 and 1934. The 1934 amendment was

to incorporate the recommendations of the Royal Commission on labour.

But the working of the Act reaveled that there was a need of total

revision with a view to extend its protective provisions to the large

number of industrial establishments. Therefore to consolidate all the provisions

and amendments, a new Factory Act was introduced and passed in

August, 1948. While speaking on this Act the then Labour Minister

Said that the Act intended to incorporate some of the conventions passed

by the ILO. The provisions relating to the periodical medical examination

of young persons and submission of plans of factory buildings recommended

under the International Labour Conventions (4). The important changes

intrcuced under the 1948 Act are (1). Abolition of the distinction between

seasonal and nonseaso'̂ Al factories,(2) widening of the definition of the

term 'Factory' to cover all industrial establishment employing 10 or more

workers where power was used (3) raising of minimum age of employment

of children from 12 to 14 years and reduction of permissible daily

working hours to 4 & 1/2 hours (4). State Govts were empowered

to make rules regarding the participation of the workers in the management

of arrangements, for the welfare of workers.

The technological development and use of hazardous materials

in the process of production made it necessary to introduce stringent

safety measures in factories. The Bhopal accident of 1984 is an eye

opiier to all those who are interested in the safety of industnal workers.

188

Therefore the Factory Act again came into drastic changes in 1987

due to strong public opinion. Section 7 A has been inserted into the

Act to cast general duties on the occupier to ensure the health, safety

and welfare of the workers. Section 7 B deals with the obligation on

the manufacturer to ensure safety with regards to articles and substance

for use in factories. It is the duty of the employer to ensure that

the articles are designed and constructed as to be safe without risk

to the health of the worker. Sections were also introduced for taking

precautions in the use of portable lights and emergency exit provisions

in the factory building for the escape of the workers in contigency

like fire.

Section 41 G inserted in the Act provides participation of workers

in safety measures alongwith the management. The amendment Act of

1987 also gives right to workers, to warn about imminent danger. The

penalty clause was also changed and the penalties have been enhanced

for contravention of the provisions of the Acts or of any rule a punishment

upto 3 years of imprisonment or a fine of Rs. 1000 will be imposed

for each day of contravention. The object of the Act is to prevent

the employer from engaging workers for long hours of employment and

also provide a healthy atmosphere in the manufacturing unit. To implement

the provisios of the Act Inspectors were appointed and the employer

should keep proper records of the inspection and submission of returns.

189

Labour legislations are enacted with the object of promoting general

welfare and also to meet some urgent social demands. The enactments

can achieve the objective in removing the evils more effectively. Factory

Act belongs to this categery and therefore, needs liberal interpretation.

Thus factory Act is a social enactment to achieve social reforms and

must receive liberal construction (5). There is no doubt that the Factory

Act is a labour welfare enactment made with a view to regulate working

conditions in the factories and provide with the health, safety and welfare

measures. It should be viewed liberally so that working class should

be benefited but at the same time it should be kept in mind that

the employer should not be put into undue harassment. The Supreme

Court has observed that the title and preamble of the Act would show

that this is an Act to consolidate and amend the law regulating labour

in factories.(6) The provision for appointment of inspector is to ensure

that the object of the Act are achieved and the workers are benefited

by the provisions.

A wide range of activities carrying out with the help of human

lab our are brought under the preview of Factory Act. The Supreme

Court while deciding the disputes arising out of the definition of the

Factories Act taken a liberal view to mitigate the suffering of the workers.

The decision on the salt manufactoring process and tobacco drying process

IS a pointer to the lenient view. The Court was very liberal in bringing

the kitchen attached to the hotel under the definition of factories. But

at the same time the Court refused to accept the contention of the

hospital workers who are engaged to wash the clothes for the use

of the hospital to be brought under the preview of the Act. These

workers are regulated under the service conditions of the employees

working in the hospital and therefore capot claim double benefit. It

can be observed that the court gives its verdict taking into consideration

not only the implied meaning of the Act but also its spirit. The factories

Act, therefore, has played a very important role in the improvement

of the working conditions of the workers employed in factories in India.

The Act undergone changes many times since its enactment is an

indication that it is very flexible to adjust with the changing needs

of the society.

Legislation Relating To The Payment Of Wages :

The term wage has different meaning for the worker, the Trade

Union Leader and for the Management. The Worker is concerned with

the real wage that he can take home and its purchasing power for

his and his family's maintenance. For Trade Unionist, it is subject on

which bargaining can be made with the employer. It is always a bone

of contention between the trade union and the management. For Hie

Management. it is a major item on which they have to speni a large

sum of money and directly related to the cost of production. Wage

therefore, can be said as a sum of money paid under contract by

an employer for the service he has rendered. It is in fact a contract

income fixed between employers and employees during the course of

their employment. The State is interested in the wage structure on

various reasons. The cost of production should be such that should

encourage the production activity to strengthen the national economy.

At the same time worker being the citizen of the state has to be

provided with reasonable wage for his maintenance.

Wage includes payment of bonus, gratuity, overtime, deamess

allowance, holiday allowances, leave salary, compensation dunng lock

outs, lay offs etc. as per the terms of employment.

Employees came under the provision of the Act if the wage

penod does not exceed one month. The Act authorises deduction from

the wages for absence from duty, damage or loss, amenities and service

given by the employer, recovery of advances, income-tax, house rent

provident-fund, deduction ordered by the court, deduction lor cooperative

societies and insurance schemes. For implementation of this Act a spec B 1

machinery has been provided. This is under the Administration Labour

Department and the Factory Inspectors were entrusted with its enforcement.

While factories and establishments are going on increasing, the implementation

machinery is still the same. It is but natural that the compliance of

the provisions of the Act is gradually decreasing. There is no separate

staff for the inspection of the compliance of the provision of the Act.

The inspection is done alongwith the inspection under Factory's Act

"1948. The factory inspectors are loaded with heavy work and it is

not possible for them to look into the implementation aspect of the

192

payment of wages Act. Normally an inspection is conducted in an establishment

on receipt of complaints regarding illegal deduction from wages. The

c\ctual inspection of establishment to verify the implementation of the

payment of Wages Act provisions is gradually decreasing. As much as

89% of the establishments remain untouched by the Factory Ispectors

who are entrusted with the work of payment of wages Act. (14)

But there is another picture that as and when complaints are

received appropriate action is taken to redress the same. Most of the

complaints get quick attention and disposed of during the samme year.

The causes of complaints are various, and as much as 90% of this

complaints are attended and settled. (15)

For habitual offenders legal procedings are initiated and this work

as a deferent to these who do not observe the provisions of the

Act. But there is a tendency to violate the payment of wages Act

by the employer atleast on a smaller scale. The labour departments

are making efforts to get conviction for those who are habitually violating

the provisions of the Act.(16) It is also important to note that 30%

of the inspected establishments found to be violating the provisions of

the Act, and it can be easily assumed that with permanent inspection

authority and regular inspection can bring much more cases than what

is detected today.

In the interest of workers, it is essential to bring down the

193

occurance ot violation of the Act to a minimum possible extent in

several cases the court has decided that with-holding of wages is in

fact an imposition of penalty and as such penalty cannot be imposed

except by framing charges and holding an enquiry, that is to say the

employer has no nght to with-hold the wages due to a worker for

any reason. It would amount to an imposition of penalty and therefore

far with-holding the wages proper charges should be framed and enquiry

should be made.(18) For continued absence from duty the wages can

be deducted. But the principles of natural justice can be invoked in

case of penal or further deduction of wages under the provision to

section 9-2. (19) The authorities under the Act has got power to ivestigate

into the deduction of payment under the payment of wages Act for

absence from duty. If the circumstances under which the worker remained

absent was beyond his control^ the wages cannot be deducted. The

workmen prevented from attending to their duties by the organisers of

the bandh is entitled for wages. Like-wise the recovery from the wages

of . workmen can be effected as a punishment only after giving proper

notice and also on receipt of the explanation of the workman.(20)

It is observed that a large number of workers engaged ••.industrial

establishments are not aware of the payment of wages Act and not

even heard of it. The enactment was in force for more than five decades.

This level of ignorance about the laws established for their purposes

is disheartening. This act has confined to books only. Even those who

were aware of the Act is simply know of its existance but they had

191

no detailed knowledge about the provisions of the Act. The workers'

Education Scheme has been itroduced to make the Workers aware of

their rights and responsibilities. But this programme had achieved only

a limited success. Among the more educated workers the awareness

seem to be on the higher side while the uneducated had no knowledge.

It is a sadening picture and the beneficiaries of the Act are unware

• of the enactment that intent to protect them. So action should be taken

to make the workers aware of the protective legislations introduced to

benefit them. This can be done by Trade Union Leaders, Educationists

and Social Workers. Othenwise the legislation intended for the protection

would remain as only a paper legislation and the poor workers would

continue to be exploited.

The h/linimum Wages Act, 1948 :

Most of the labour problems arise out of the pyment of wages

.in indstriai society.the stndard of living depends on the wage the worker

receives for his work. In an economy of rising prices the wage earners

constantly demand for higher wages and that always become cause

for Industrial struggle. So the wage structure has to be determined

by taking into consideration the purchasing powar of the compensation.

While adopting the wage policy.the various social factors alongwith economic

theories have to be taken into account. Wage polky should be pragmatic,

though it does not follow-up that it has to be unscientific and remain

simply a matter of expediency.(21}

195

The problem of wages has to be dealt not only with great

tact and imigination some-times with boldness, but also requires a very

close and careful study of all the information and data available-historical,

economic as well as statistical-in order to ensure a really scientific and

help-ful approch to the problem. (22) In the begining in India the sole

criteria for determining wage was supply and demand. Only after World

war I, the workers living in cities demanded a certain wage structure

to protect their interest in a rising price economy. In 1918 Mahatma

Gandhi brought about a settlement of wage demand by Ahmedabad

workers without any intervention of the government. But as a consequent

of Industrial Disptes that took place in the later part of 1920s, made

it necessary for government intervention. The Royal Commission on Labour

has given a factual account of wage level in various industries and

also made suggestions for standardisation of wage structure. The International

Labour Organisation adopted minimum wage convention in 1928. The

Royal Commision had suggested a minimum wage fixing machinery to

fix a certain criteria for minimum wages in industries. The commission

was more concerned with prohibition of unfair deduction rather than

fixing minimum wages. The commission said 'Indian Industry is not a

world in itself, it is an element, and by no means the most important

means of the economic life of the community. Care must be taken,

therefore, to ensure that, in adopting measures for betterment of industry

or of industrial workers, the interest of the community as a whole are

not overlooked.' (23) But the demand for minimum wages continued

19€

and even the Indian National Congress demanded minimum wages and

made it a point in the Election Manifasto for general election of the

Cantral Assembly. From industrial sector the demand for minimum wages

spread to every field of industrial and businss activi^lies and also to

the agricultural sector. So it would be interesting to have a reveiw

on the wages Act J 948.

The minimum wages bill was introduced in Central Legislative

Assembly in April 1946. It became an Act in March 1948. It can

be considered as a land mark legislation in the history of Indian Labour

because the very concept of this enactment was revolutionary. This was

the first step to prevent exploitation of the labour by paying them unduly

low wage. It is to provide social justice to workmen employed in industries.

So the theory of Laissez-faire is no longer relevant so far as it concerned

with labour. Wages canot be fixed according to the supply and demand

theory. It was necessary to fix certain minimum rate of wages to the

workers because the supply of labour was much more than the demand.

So it became necessary to force the employer to pay a certain amount

as minimum wage to the worker so that he can maintain atleast the

bare necessities of life. The directive principles of the State Policy demand'

the protection of labourers against exploitation and therefore it is absolutely

necessary to impose restriction upon the freedom of contract on employers.

The restrictions imposed by minimum wages Act to pay a certain amount

as a IVIinimum wage is not violative of the constitution on the otherhand

taking of labour or service of any person for payment less than

197

the prescribed minimum wages is violative of fundamental rigfits to such

labourers and enjoin upon them not to give forced labour. (24) It is

also held by the court that less payment of minimum wage on the

ground of less performance or output is also illegal.(25) The provisions

of the minimum wages Act is to specify minimum wages for certain

specified industries by notifications is held to be valid because setting

minimum wages in industries is to avoid exploitation of labour due to

their weak bargaining capacity as such it is valid under the constitution.

(26) The court also held that even rate for peace work can also be

fixed by the apppropriate government on par with similar work. The

Government has also power under the Act to prescribe a minimum

guarantee money for every day if there is insufficient raw materials

for the work in peace rate. (27) The workmen working under peace-rate

when present himself for collecting raw material should be given guaranteed

wages if. the raw materials are not supplied to him. This is mainly

to mitigate the suffering of beedi workers. The appropriate government

under this Act have got power to revise the minimum wages from

time to time keeping in view of the cost of living and other factors.

Minimum wage is that any industrial employer should have to

pay, to continue his business or industry othenwise he has no right

to employ a workman and carry out production. The wages given over

and above the minimum wage may be treated as fair wage, in a

sense that it is adequate to cover the normal needs of the average

198

employee regarded as human being, who has the right to get need

based minimum wages from the employer. Living wage is still above

the fair wage. It enables the worker to maintain himself well and also

his family in a very good condition in which he can put his best

in the process of industrial production. It may be difficult for our national

economy to provide living wage for all the workers, but it should be

the objective of every socially conscious government to achieve it.

It is clear that the main objective of the Act is to secure welfare

of the workers in a competitive market by providing minimum wages

so that in a free market the weaker section should not be exploited

by the strongers. The Act makes it obligatory to every employer to

pay his workers the prescribed minimum wages at regular periods that

has been agreed upon without violating the provisions of the Act. The

responsibility for enforcement of this Act lies with the Central Government

for the worker s coming under their perview. The Chief Labour Commissioner

is the incharge of implementation of the Act under Centres sphere.

The State Governments are responsible for implementing the Act under

their control. The Labour Department Officers are looking after the

implementation of this law alongwith other legislations. There is no seperate

machinery to look after the implementation of this Act in the States.

The Payment of Wages Act machinery also look after the provisions

of implementation of minimum wages Act. A survey conducted in many

states revealed that the inspection of implementation of minimum wages

Act is very poor in most of the States. A large number establishments

199

were left without any inspection and the fate ot the workers in those

establishment are not known to the authorities who are responsible for

implementation of minimum wages Act. But the settlement machinery

for the complaints seems to be satisfactory because there is a decline

of complaints. As much as 98% of the complaints received were disposed

off during the year. The declining of complaint cannot be taken as

a clear indication of the non-violation of the minimum wages Act. It

may be because of the communication gap between the implementation

machinery and the workers. To find out the real picture of the implementation

of the Act inspection of all establishments is necessary. The government

should introduce appropriate machinery to implement the minimum Wages

Act which needs preferential treatment because it is a question of the

bread of the worker. The government should not ignore the responsibility

towards this helpless *'Jorkers who sell their labour power to earn a

bare living.

A study of the violation of minimum wages Act revealed that

there was sharp increase of violation of the Act during 1970s. The

implementing authorities had prosecuted many of employers for violating

the provisions and also secured punishment for the violation of the

Act. But the disposal of cases registered under the Act were very

slow and there is need of taking more effective steps for quick disposal

of case under minimum wages Act. It is also observed that a large

parcentage of workers are not aware of the minimum wages act amd

even those who know some thing about it were reluctant to speak

200

about it. This state of the workers is an indication of the low level

implementation of the minimum wages Act in many establishments. Many

of the workers are even do not know whether their establishment come

under the purview of the minimum wages Act. The workers knew that

they are being exploited but in the absense of proper enforcement

machinery they are helpless.

Those who are responsible for the administration and implementation

of the Act themselves admit that it is very difficult for them to implement

this Act in its strict sense. (28) They lament that they do not have

adequate staff to implement the Act in such a vast areas of establishments.

But the Act is a land-mark legislation and it has travelled a long

way to reach the beneficiaries in mitigating their misseries. Several areas

it has been implemented with force. Some state governments have vigorously

pursued the implementation of this Act. As we are reaching a stage

of politically and socially conscious citizens the implementtion of the

Act would not be difficult in India. There nothing wrong to conclude

that this Act has played a very important role in the unorganised sector.

This Act has helped to pay minimum wages, timely payment and weekly

holidays. This enactment has certainly has given benefit and helped

to rise the standard of living of workers employed in different industnes.

Payment of Bonus Act 1965

The question of bonus is a major cause for industrial struggle

in India. A large number of strikes and lockouts are related to the

201

payment of bonus. The workers always considered bonus as a deterred

wage. But the employer is not ready to accept this contention. The

employer regards this as a gratuitous payment to his employees. But

in the modern time it has been acepted as a deferred wage and

the employees can claim bonus as a matter of right. It is not considered

an act of charity but regards as a sharing of profit of the establishment

in which worker is a partner in the process of production. The payment

of bonus is accepted in India because there is a gap between the

real wage and the living wage. The bonus can reduce this gap to

a certain extent. f\/lost of the industries have surplus fund for every

year and they can give a part of the surplus fund to the workers.

In India the bonus system can be traced during the First World War

because of the increase of prices of manufactured goods, the textile

industry earned huge profit. The workers demanded war bonus as the

cost of living increased due to increase in pnce. In 1918 the war

bonus was paid to mill workers at the rate of 15% but workers were

not satisfied and a strike was organised. Ultimately the war bonus was

increased to 35% and termed this as special allowance. But in 1922

the mill owners expressed their inability to grant bonus or special allowance.

Industrial struggle again started. In 1924 a Bonus Disputes Committee

was appointed to look into the question of bonus. The committee felt

that there was no legal, customary or equitable claim for bonus. The

struggle for bonus went on and there was no definite conclusion till

the Bombay High Court gave its ruling that the bonus can be demanded

by workmen as a matter of right. The Labour Appelate Tribunal laid

I Acc-fOo' 27-^

202

down a formula to pay bonus from the available surplus, which came

to be known as 'Full Bench Formula'. This formula was accepted by

the Supreme Court. (29) But this formula could not solve the bonus

disputes. The Bonus Commission was appointed in 1961 and the

recommendations submitted in 1964. The Bonus Act came into force

in 1965 through an Ordinance and became an Act in Oct. 1965. The

Bonus Act was subsequently amended eight times from 1965 to 1985.

The objective of the Act is to put an end to the industrial

disputes arising out of bonus payment. It is also to allow the employees

to share the prosperity of establishment because the workers have got

an equal share of contribution in earning the profit alongwith the capital

and management. (30) The Act applied to all establishments having

more than 20 workers. The Act imposes statutory obligation on the

employer to pay bonus at the rate of 8.33% of the salary. The maximum

is fixed at 20%. The maximum salary calculated for the purpose of

bonus is Rs. 1600/-.

The Payment of Bonus Act has settled the question of payment

of bonus but the industrial disputes regarding bonus still continues. The

workers are not satisfied with the minimum and the maximum bonus.

The workers in highly profitable establishments wanted the limitation of

20% to be removed. The Bonus Act led the way for more struggles

in the areas which were free from the struggles relating to bonus.

203

The government employees, semi-govemment employees and even teachers

raise demand for bonus. The government had to accept their demands

and extended the benefit to all organisations including government and

semi government

It is not clear as to what is actually bonus. So far no clear

cut conclusion^ has been reached even with the concept of bonus.

The government consider it as a payment to raise the standard of

living so that the gap between the real wage and the living wage

can be reduced. But the bonus is paid only to the organised workers.

The millions of workers in the unorganised sector still denied of the

benefit over and above their fixed wages. Therefore, the bonus provision

should be extended to unorganised section, if the government really

wanted to reduce the gap between the real wages and the living wages

to the low paid working class of this country.

The government sho1d implement the scheme of bonus to the

unorganised sector by including the provisions of minimum bonus either

in the Payment of Bonus Act or in the f\/linimum Wages Act. It is

also time for the government to review whether the payment of bonus

for the loss making industry would be ideal. The present thinking is

that the employer who is not able to make a minimum wage has

no right to continue with his industry by employing workmen. But the

thousands of workers employing in sick units which are running in loss

being maintained with government grants. Plumbing money in the sick

204

mills for payment of wages and bonus is not a parmanent solution.

The bonus formula should be in accordance with the production and

It should be linked with the profit and surplus fund of the establishment.

Then only the bonus concept will be meaningful and remain as a

permanent measure that would help to provide decent living wage for

the working class.

Legislation Relating To Social Security And Labour Welfare

Labour Welfare may be viewed as a total concept, as a social

concept and as a relative concept. The objective is the development

of social reform by means of legislation so as to encourage social

services, social work and social action. To achieve social welfare the

economic welfare has to be promoted. This can be done by increasing

production and equitable distribution of wealth among the people. Labour

welfare is a part of social welfare, and it covers a broad field of

development of human resources. A total labour welfarre concept aims

of providing physical, mental, moral, and emotional development. The

welfare of man and his family is the aim of the labour welfare. The

labour welfare concept is flexible and it differs from place to place

and time to time. It also varies from industry to industry. In the words

of R.R. Howkins, welfare is fundamentally an attitude of the mind and

the part of the management, influencing the method by which management

activities are under taken. Arthur, James Todd defines welfare work as

'any thing done for the comfort and improvement, intelllectual and social,

of the employees over and above the wages paid, which is not a

205

necessity of industry'. (31) It is. in fact, a voluntary efforts on the

part of the employer to improve the existing industrial system and conditions

of employment in their own industry. The great Trade Union Leader

N.M. Joshi put labour welfare as that 'covers all the efforts which employers

make for the benefit of their employees over and above the minimum

standards of working conditions fixed by the Factories Act and over

and above the provisions of Social Legislations providing against accident,

old age, unemployment and sickness.(32).

Workmen's Compensation Act. 1923.

The Workmen's Compensation Act 1923 is one of the first Act

of social security in India. Before enactment of this Act, it was very

difficult to get compensation for any injury sustained by the worker

in his course of employment. They had to fight under the common

law for compensation in Industrial Accidents. Under common law the

burden of proof lies on the employee to establish that the accident

was occured in the course of employment. Therefore, it became necessary

to introduce a legislation to provide quick relief to the worker and

also to his family in case of fatal accidents. The object of this Act

is to impose an obligation upon employers to pay compensation for

accidents arising out of and in course of employment. The Act applies

to any person who is employed in Railway, Factories, Mines, Plantations,

etc .Under Section 2 of the Act, the State governments are empowered

to extend the scope of the Act to any class of persons. The Act,

however, does not apply to members in Armed Forces.

206

The Compensation has to be paid by the employer to a workmen

for any personal injury caused by accident during the course ot his

employment. In Schedule i, a list of different types of injunes has

been listed. However, the employer is not responsible for any injury

which does not continue for more than 3 days. A workmen is also

not entitled for compensation if he does not present himself for medical

examination when required or donot take proper medical treatment. In

case of non fatal employment injury, any injury, resulting in permanent

total disablement, permanent partial disablement and temporary disablement,

the Act provides for higher rate of compensation and also removes

the wage limits for coverage. The Act has been revised specifically

in accordance wih the ILO conventions relating to social security. The

revised rate of compensation in case of death will now be an amount

equal to 40% of the monthly wages of the deseased workmen multiplied

by the relevant factor, (33) or an amount of Rs. 25000/- whichever

is more, in case of permanent total disablement the compensation amount

is 50% of the monthly wages of the injured multiplied by relevant factor

or an amount of Rs. 24,000/- which ever is more. The provisions are

also made when more than one injuries are caused by the same accident.

In case of temporary disablement the provisions are also made in the

Act to make the payment of compensation against the injury.

It is provided that all the cases of fatal accidents should be

brought to the notice of the commissioner for workemen's compensation.

In case the employer admits the liability, the amount of compensation

207

should be deposited with him. However, when the employer refuses

the liability for compensation, he has to make provisional payment. The

commissioner is empowered to take into consideration the claim. The

Act also provides that the employer is responsible to file annual returns

of compensation paid and the details of the injuries. If an employer

is in default in paying the compensation within the time limit, the commissioner

may direct for the recovery of the amount and also the interest thereof.

In the opinion of the commissioner, if there is no justification for the

delay in payment of compensation, the comissioner can impose penalty.

If the workman contracts any occupational disease peculiar to the employment,

that would be deemed to be an injury by accident arising out of and

In the course of his employment for purposes of this Act. However,

in case of occupational diseases, the compensation will be payable only

if the workman has been in the service of the employer for more

than six months. Some of the occupational diseases are listed in Schedule

II of the Act. The compensation payable to the workman or to his

dependants cannot be assigned, attached or charged. The workman can

file an application before the commissioner if the employer does not

pay compensation.

The Act is adminii^—-stered by the State Governments who

are required to appoint commissioner for workmen's compensation. The

functions of the commissioner include settlement of disputed claims, disposal

of cases of injuries imvolving death and revision of periodical payments.

It has also been made compulsory for the employer to inform the

208

authorities the number of accidents, amount of compensation paid, etc.

The Supreme Court has explained the doctrine of notional extension

of employment thus, 'As a rule, the employment of worker does not

commence until he has reached the place of employment and does

not continue when he has left the place of employment, the journey

to and from the place of employment being excluded. (34) It is now

well-settled, however, that this is , subject to the theory of notional

extension of the employer's premises so as to include an area which

the worker passes and repasses in going to and in leaving the actual

place of work.' There may be some reasonable extension in both time

and place and a workman may be regarded as in the course of his

employment even though he had not reached or had left his employer's

premises. The facts and circumstances of each case will have to be

examined very carefully in order to determine whether the accident arouse

out of and in the course of employment of a workman. The question

when does an employment begin and when does it cease, depends

upon the facts of each case. But the courts have agreed that the

employment does not necessarily end when the 'down tool' signal is

given or when the workman leaves the workshop. In a case of a

factory, the premises of the employer which gives ingrss or egress

to the factory is a limited one, in case of a city transport service,

by analogy, the entire fleet of buses forming service would be the

'premises*. A driver is given facility in his capacity as a driver to travel

in any bus belonging to the undertaking in the interest of the service.

Hence, a driver when going home from the depot or coming to the

209

depot uses the bus, any accient that happens to him is an accident

in the course of his employment. (35)

Under the doctrine of contributory negligence, the employer may

raise the defence that the accident occured purely due to employee's

negligence on his own part. Such a defence has been given no footing.

The main purpose being safeguard of workers and not to deprive them

of their rightful claim under the Act as otherwise every employer would

escape the claim by raising the defence of contributory negligence.(36)

The Madras High Court held this view of doctorine of contributory negligence

because first of all mere negligence or carelessness would not be regarded

as a wilful disobedience and second, the doctrine of contributory negligence

as a good defence in common law has been abrogated in so far

as the Workmen's Compensation Act is concerned. The reasons are

said to be two fold, viz., (a) that compensation is not a reme'̂ y for

negligence of the employer but it is rather in the nature of an insurance

of the workman against certain risks of accident, and (b) that this

was made an excuse for avoiding all liablity, because most negligences

are practically accidents in the nature of what is called the act of

God. Men who are employed to work in factories and else where P

are human beings, not machines. They are subject to human imerfections.

Employees State Insurance Act 1948 :

It became necessary to examine the question of Sickness Insurence

by the Government in the light of ILO convention in 1927 regarding

210

sickness insurance. But at that time it was felt that in India such

an insurance scheme was not feasible. But the Royal Commission on

Labour in 1931 sugested to reconsider the matter. The commission also

proposed a tentative scheme pertaining to the sickness insurance to

put into operation until finalisation of the scheme. But nothing was done

in this matter. Again in 1933 ILO conference called upor t̂he Government

of India to introduce scheme in India. Because of the financial and

other reasons the scheme could not be introduced. Provisional Labour

Enquiry Committees of Bihar, Bombay and UP recommended the introduction

of some scheme of insurance. The first coference of Labour min iKk i fS

held in 1940, the question of Insurc^nce Scheme was considered and

dcided to obtain the view of Provincial Governments and associations

of employers as well as of workers about the compulsory contribution

to the sick insurance fund. In 1941, Labour Ministers Conference suggested

to undertake preliminary survay to find out the feasilibity of introduction

of the scheme. The tentative scheme was prepared by the Labour

Department and placed before the third conference of Labour Ministers

in 1943. It was agreed to make a draft sickness insurence scheme

for introducing the same to the workers in cotton, jute, and heavy

engineering industries. In the mean time Prof. B.P. Adarkar was appointed

as a Special Officer in March 1943 by the Government of India to

report on the health Insurence of Industrial Workers in India. He submitted

his report in 1944. This report was examined by M/s Meurice Stack

and Raghunath Rao of ILO at the invitation of Government of India.

They suggested some improvements in the scheme. The 6th Labour

211

Conference in 1944, the Suggestions were discussed and it was agreed

that the Central Government should proceed with the preparation of

Health Insurance Scheme aplicable to all parannial factories and covering

employment injuries and maternity benefit, if possible.

The scheme should be circluated to Provincial Governments,

Associations of Employers and Trade Unions before a bill was drafted.

The bill came in the form of Workmen's State Insurence Bill , 1946.

But the Select Commiittee made certain changes and also the names.

It made the bill Employees' State Insurence Bill Scheme. The Act came

in to force on 19th April 1948. The object of the Act is to provide

certain benefits to the employees in case of sickness, maternity and

employment injury and to make . To provisions for certain other related

matters, main object of the Act to evolve a scheme of socio-economic

welfare making elaborate provisions in respect of it. The provisions of

the Act apply to all factories including factories belonging to the Government

of India. But the Seasonal factories are excluded. Powers were conferred

upon the appropriate government to extend the provisions of the Act

to any establishment, industrial, commercial agricultural or otherwise. The

government also has power to exempt any factories or establishments

by notification in the Official Gazzate.

The Act provides 5 types of benefit to the workmen. These

212

benefits include the sickness benefit, maternity benefit, disablement benefit,

dependant benefit and medical benefit. Tfie first 4 are casfi benefits

and tfie fiftfi one is extended in kind. Tfie responsibility for tfie provision

and payment of various benefits prescribed under the Act lies on Employees

State Insurence Corporation. That is the management of the enterprises

that are covered under the Act is not involved in the implementation.

The Insurance Scheme is financed through contributions from employers

and employees and grants and donations and also gifts from Central

and State Governments, Local Bodies or from individuals. The State

Governments share a part of the expenses relating to medical care.

For the Medical Care of employees it is one fourth and for their families

the share is one eighth. The contributionfrom the employees is related

to their wages. The rate of contribution work out to 2.25% of the

total basic pay and Dearness Allowance. The employers contribution is

5.2% of the wage bill, in areas where the schem e has been fully

implemented. It is the responsibility of the employers to deposit the

contributions of employ ^ees as well as the employers to the ESI Corporation

also lies on the employer. The employers are also responsible for maintaining

the records in respect of the contributions of the employees as prescribed

under the scheme.

The Coverage of tfie scheme was very poor and only a very

small portion of the country's population was covered by this Act. Further,

the scheme could not cover hundred percent of the family units ( insured

persons ) in the States like Assam, Haryana, f\/!aharashtra, Orrisa, and

Punjab. The social security provision of the Act is limited to factory

workers only which covers limited population of India. From this small

fraction also, a substantial portion are still to be covered under the

Act. People working in unorganised sector and small establishments employing

less than 20 persons are also mostly not covered under the Act.

It is, therefore, necessary that steps have to be taken.", to enhance

the scope of the Act in the light of the distressing conditions under

which the Indian workers are struggling.

The implementation of the scheme is entrusted to the Employees

State Insurance Corporation (ESIC). It is an autonomous body, set up

by the Central Government. This comprises of the representatives of

the State and Central Governments, the Parliament, the employees' and

employers' and from the medical profession. A standing committees, consisting

of the members elected from among the members of the corporation

Acts as the Executive Body of the ESIC. A medical benefit council

has also been formed to advise the Corporation on the medical aspects

of the scheme. Director General is the Chief Executive Officer of the

ESIC.He is responsible for formulation of the policy, overall supervision,

coordination and liaison with the Central and State Governments. The

ESIC has also set up Regional Boards, Regional Offices, Local Offices

and Inspection Offices in different States.

Records of the insured persons are maintained at the Regional

214

Offices. Regional Offices also control the Local and Inspection Offices.

Tfie claims in respect of the insured persons are entertained and settled

at the Local Office which are set up in all implemented areas.

The employees State Insurance Act covers 589 centres as on

31. 12.90. The total number of employees and beneficiaries covered

was 61.49 lakhs and 269.89 lakhs respectively. This scheme provides

for 109 Hospitals and 1327 dispensaries. The total number of beds

provided in ESI Hospitals was 19608. There are 42 ESI Annexes with

842 Beds for the use of ESI beneficiaries. The total number of beds

available for ESI beneficiaries are 22,425 as on 31.3.1990. The corporation

has disbursed a total sum of Rs. 83.52 Crores during the year 1989-90

for the payment of sickness, maternity and employment injury benefit

including dependant's benefit and permanent disablement benefit etc. The

total amount of arrears recoverable as on 31.3.1990 was Rs. 136.26

crores. Out of this Rs. 42.68 Crores are due from closed, liquidated

establishments or the claim is in dispute. The balance amount of Rs.

92.99 Crores are effective amount recoverable.

The ESI Organisation is a massive organisation representing a

massive labour force and its coverage is going on increasing year after

year. The following data would give an idea of the ever increasing

membership of ESIC Corporation.

Insured Persons and Beneficiaries.

Year Family insured Total

members persons Beneficianes.in lakhs

1986

1987

1988

1989

1990

205.99

205.14

210.91

205.63

208.44

71.53

71.23

61.68

60.40

61.49

277.52

276.37

212.69

266.03

269.93

215

Source : Annual Report 1990-91 Vol. I, Ministry of Labour, Government

of India, New Delfii, P. 31.

An employee directly employed by the Principle Employer on

any work in the factory or establishment or else where, the act is

also applicable to such employees who are employed by through an

immediate employer on any work.or whose services are temporarily lend

or let on hire to the principle employer. Any person employed for wages

on any work connected with the administration of the factory or establishment

or any part, department or branch thereof or with the purchase of

raw materials for or the distribution or sale of produce, of the factory

or establishment. But the employees of managing agents having administrative

216

control of the factories are not employees. 37

An apprentice has been held not to be an Employee38. The

term employee is a wide connotation and would include in its scope

to every clerical, labourer and part-time worker. 39. However, it will

not include casual employees. 40.

The Family includes the spouse and minor legitimate and adopted

children dependant upon the insured persons and also his dependent

parents. The Act has provided provision for establishing Employees Insurance

Court for the disputes arising relating to the contribution etc. The civil

courts are prohibited from admiting any dispute with regard to the Employee

Insurance Scheme or against the decision of the boards or tribunals.

Appeal shall lie to the High Court for an order of Employees Insurance

Court.

The Act also provides penalties for makeing false statements

and also faliure to deduct contribution. The punishment shall be imprisonment

upto three months or fine upto Rs. 5,000/- or both.

The appropriate goverment has got power to exemt any factory

or establshment or class of factories or establishments for a period

of one year at a time. Like wise any person or class of persons

employed in a factory or establishment can also be exempted. Exemption

can also be given to factory or establishment belonging to goverment

9 17

or any local authority. Exemption can be granted for one or more

provisions for the Act to the establishments mentioned in any of the

above categories. The goverment has got discretionary powers to interven

in the functioning of the Employees State Insurance Corporation scheme

in the intarest of beneficiaries.

Unlike other Acts the implementation of Employees State Insurance

Scheme in factories and establishment is fairly good. But the enforcement

machinery is not doing justice for the implementation of the scheme

more effectively. Approximately 40 percent of the factories went un-inspected

by the inspectors appointed for the purpose. (41) The number of factories

entrusted to the inspectors are too much for them to make effective

inspection. The local officers of the E.S.I.S. dose not have sufficent

staff to attend the beneficiaries and disburse the claims. In some places

where large numbers are concentrated was attended by only one payment

office resulting much inconvenience to the workers. The increase of

staff is not proportanate to the incease of insured persons. In some

highly concentrated industrial centres, a single official has to look after

above 200 cases a day.

The working of E.S.I, scheme is not upto the satisfaction of

the workers for whome the scheme has been introduced. A small number

is satisfied with the working of the scheme and large number of workers

are unhappy. A study conducted by Dr. M. L. Monga has mentioned

that as much as 60% of workers are not at all satisfied with the

218

functioning of E. S. I. scheme. (42) There are serious charges of the

functioning of E.S.I, dispensaries as they do not give proper medicins

to the patients. The trade union leaders saw that they give same medicine:

for all the diseases. There are also charges that the medicines are

sold in open market by the hospital employees. On the other hand

the doctors and para-medical staff have different version. They say that

workers wanted to take advantage of the scheme without any sickness

or disablement. They wanted bogus payment for non-existant diseases

simply to take advantage of the scheme. But apart from all these

charges of irregularities the employees insurance scheme gives relif to

millions of workers and their family members. The existence of the

scheme is known to good number of workers whereas indepth knowledge

about the various benifits is low. Because of ignorance communication

gap the benifit is not reaching to all its intended beneficiaries. As such

the scheme and benifits should be made known to the workers. In

addition to this strict control should be exercised on certification of sickness

so as to prevent misuse of the benefits by the workers. The monetory

benefits should also be linked with the cost of living so as to enable

the worker to look after himself and his family at the time of his

illness.

Employes Provident Fund And Miscellaneous Provisions Act 1952

After independence the National Government established under

the democratic principles, was well aware of the plight of the working

219

class. There were serious thinking to provide the workers with monetary

protection at the time of distress. The Employees State Insurance Act

of 1948 was to give relief for the workers already in employment.

The Workmen Compensation Act also provided relief to the workers

who met with accidents. But there was no provision to provide security

to the workers who are retired after a long service. So there was

a thinking to introduce some kind of social security scheme like old

age pension on par with industrialised countnes of Europe. But, the

financial conditions of the country did not allow the government to make

any provision like old age pension scheme .Moreover, there would be

no participation of the workers in such a scheme. So the contributory

provident scheme was introduced with contribution from workers and employers

to provide monetary support for retiring employees. For this purpose,

the employees provident fund, miscellaneous provision Act 1952 was

enacted. It was to provide Social Security to the retiring workers and

also to help his family in case of death. The contribution for the workers

to such a fund would help to develop the habit of saving among

the workers. When the Act was first introduced, the factories with 50

or more persons came under its perview. But later the Act was amended

to bring the factories employing 20 or more persons to be covered

under the Act. The Government has got special powers to bring any

establishment employing less than 20 workers under the purview of the

Act by giving two months notice in the official gazette. Even if the

number of workers fall below 20 after covering under the provisions

of the Act the Provident Fund Act shall continue to be applicable to

220

such establishments. In the beginning the Act covered only 6 industries

VIZ. Cement, Cigarettes, Electrical. Mechanical or General Engineering

products, Iron and Steel, Paper and Textiles. But later on, in 1956.

the scope of the Act extended to many other factories and at present

it covers more than 100 types of industries and class of establishments

The Central Government has the power to include any industry to bring

them under the purview of Provident Fund, by a notification. All such

notifications shall be laid before the Parliament as early as possible.

The Act was further amended in 1971 to introduce Family Pension

Scheme and also in 1976 to introduce Deposit Linked Insurance Scheme.For

the purpose of calculation of Provident Fund contribution the wage means,

the basic wages. That is all emoluments which are earned by an employees

while on duty or on leave, with wages, in accordance with terms of

contract of employment. But it does not include the cash value of

any food concessions, dearness allowance, house rent allowance, over-time,

bonus, commission, etc. Any gift given by the employer also would

not include in the wages. An employer is duty bonus to pay provident

contribution even if he is unable to pay wages to his employees for

reasons beyond his control(43). To cover an establishment under the

Provident Fund Act, if an employer employ^.s 20 or more workers

even on a single day, the provisions of the Provident Fund can be

applied (44). An employee means any persons who is employed for

wages of any kind of work, manual or otherwise, in connection with

the work of the establishment and who gets his wages directly or

indirectly from the employer and includes any person employed by or

221

through a contractor in connection with the work of the establishment.

A cont-/'K^ labour is also is an employee to calculate the strength of

the workers to cover the Provident Fund Act(45). But in order to cover

the E.P.F. Act the employment of the persons must be in regular course

of bussiness and not for a short period on account of some passing

necessity or some temporary emergency beyond the control of the company(46).

Factory is a premises including it precincts the use of in any part

of which a manufacturing process is being carried on or is ordinarily

so carried on whether with the aid of power or without the aid of

power. It was held that making of bodies with the help of carpenters

for trucks and passenger buses is a manufacturing process(47). If a

company having factory at different place and has got administrative

offices at some other places are to be treated as one unit for the

purpose of determining the applicability of the EPF Act (48). Like-wise

the Printing Press and the Office located in different premises belong

to one unit and the Act which is applicable to press extends to the

office because there was an integrated financial and managerial function

(49). The establishments include all departments and branches. Different

departments or branches whether situated in the same place or different

places shall be treated as a part of the same establishment. But two

factories constitute two independent establishments if they have separate

registration under the factories Act, separate profit and less account,

separate works managers and plant superintendents and separate set-up

of workmen or employees(50). The Provident Fund Act is implemented

through a Central Board. The Central Government is empowered to

222

constitute a Trust. The Central Board shall consist,; a Chairnnan who

is appointed by the Central Government. The Government shall also

appoint not more than 5 persons from its officials. 15 persons representing

State Government as specified by the State Government and appointed

by the Central Government, 6 persons each representing employers and

employees of the establishment to which the scheme applies. These

persons are also appointed by Central Government in consultation with

the respective organizations. The executing officer is the Central Provident

Fund Commissioner under whose control there are Regional Provident

Fund Commissioners. Under the regional Commissioner there are enforcement

officers and Inspectors to look into the implementation of the scheme.

The Inspectors under-take verifications of the Factories and Establishments

that has been covered and also to be covered. The contribution of

the employees towards the fund is 8.33% and the employer should

also contribute an equal amount.

Employees Family Pension Scheme 1971

The employees family pension scheme was started under the

Employees Provident Fund Laws (Amendment) Act 1971. The scheme

was introduced to provide relief to the family and his members in

the event of the members pre-mature death. The family pension scheme

came into force from March 1, 1971. It is compulsorily applicable to

those who became subscribers of Provident from March 1971. For the

existing members an option was given to join the fund. The scheme

gives pension to the families or to member of the family, in the event

223

of death of the subscriber. Family means the widow or widower, minor

sons and unmarried daughters for the purpose of family pension. The

fund IS constituted from a contribution of the workers at the rate of

1.16% of the employees pay and an equivalent amount from the employer.

This amount will be diverted from the P.P. Contribution of both workers

and employers. The Central Government would also contribute 1.16%

of the pay of the member. The minimum family pension is Rs. 225/-

per month and maximum is Rs. 750/-.

The Employer Deposit Linked Insurance Scheme 1976.

The Employees Deposit Linked Insurance Scheme came into force

on 1st August 1976. This act would apply to all establishments covered

under PF Act. All PF member-employees, both in exempted and unexempted

establishment are covered under the scheme. The employees are not

required to contribute to the Insurance Fund. But the employers have

to contribute at the rate of 0.5% of the pay of the employees who

are provident fund members. The Centra! Government would also contribute

0.25% in respect of covered employees. The employers are also required

to pay administration charges to the Insurance Fund at the rate of

0.01% of the payment of the employee, subject to a minimum of Rs.

2/- per month. The Central Government also pay 0.005% of the pay

drawn by the employees member, subject to a minimum of Rs. 1/-

per month.

22i

Under the scheme the nominee/ members of the family of employees

of covered establishment will get, in the event of death while in service,

an additional amount equal to the average balance in the Provident

Fund account of the diseased during proceeding 12 months or during

the period of his membership whichever is less. But if the amount

payable exceeds Rs. 15,000/- the nominee will be entitled to Rs. 15,000/-

plus 25% of the amount in excess subject to the maximum ceiling

of Rs. 25,000/-. The Act also provides exception to Factories and establishments

which have an insurance scheme approved by the Government and

conferring more benefits than those provided under this scheme. But

the majority of employees should be in favour of such exemption. Central

Government is the appropriate authority to grant exemption from the

Employees Deposit Linked -

Insurance scheme.

The employees provident fund organization is the Incharge of

all the three schemes. The Central Provident Fund Commissioner is

the Chief Executive. The scheme is operated through the Regional Provident

Fund Commissioners under whose central there are enforcement staff

for the implementation of the scheme. In the onginal scheme, the responsibility

of prosecution was with the State Govemment,but the amendment empowered

the Regional Commissioners to prosecute the defaulting employers who

did not deposit the amount due to the Provident Fund.

The worker member who is contributing to the Provident Fund

can take advances during the period of his contribution on certain conditions.

The Act has provided provision for which the advances can be granted.

This include, to finance insurance policy, purchase and construct houses,

treatments of serious illness, marriage of daughters and education of

children.The member can withdraw his full amount in the event of the

members retirement from service, either by superannuation or on the

ground of total incapacitation. The amount is refunded on retrenchment

and also cessation of the implementation of the Act in the establishment

due to the failing of the strength of workers bellow 15 continuously

for a year. In the event of closure of an establishment where the

member is working can get full withdrawal of the deposit under the

scheme.

The three Acts viz. Employees Provident Fund and Miscellaneous

Act 1952, Employees Family Pension Scheme 1971, Employees Deposit

Linked Insurance Scheme 1976, are important steps in the history of

Indian Labour Legislation. These legislation are intended to provide social

security to the working class at the time of his retirement and also

in his old age. This is, in fact, one of the finest scheme introduced

to minimise the suffering of people in his old age when his earning

capacity and energy had already eroded. In the absence of such a

provision, the worker has no option after his productive career but to

depend on others for his existence. Every worker is not capable of

saving himself for his darker days in future. But these Acts do not

fulfill fully the need of the society because the amount of Provident

226

Fund received as a lump-sum is very often spent without any consideration.

So the only alternative to give full social security to the working class

in their old age is grant of per^sion which can assure a regular monthly

income till he breaths his last. Such a scheme will not only help

to reduce the suffering of millions of retiring workers, but also prove

the intention of the government, to provide security to those who worked

throughout their life in productive process to make the country richer.

Recently there is a serious thinking to introduce pension scheme

to working class employed in factories and establishments which do

not have their own pension scheme. But the Parliament could not so

far enact any legislation in this respect. It is gathered from the newspapers

that the Central Labor Minister has assured the introduction of a bill

to implement the pension scheme for all those who came under P.F.

Scheme (51). As and when the parliament enact-' this legislation, this

would definitely a land-mark enactment especially, in the field of social

security.

Trade Union Act, 1926

The Trade Union movement in India can be traced from the

last century. Shri. N.fvl. Lokhande organised the Bombay Mill Hands

Association in 1890. But the beginning of modern Trade Union started

only after first world war. The Madras High Court decision in the Bukingham

227

and Carnatik Mills case in 1920 focussed the attention of every-one

to provide legal recognition to worker's right to organise and strike for

their legitimate demands. Shri N.M. Joshi introduced a resolution in Legislative

Assembly on 1st March 1921 to take steps for the Registration of

Trade Unions and protection of bona-fide Trade Union Activities. The

Central Government drew up a bill providing for the legislation of Trade-

Union and introduced the same in the Assembly on 31st August 1925.

The bill was passed on 25th March 1926 and the Indian Trade Union

Act came into effect on 1st June 1927.

The objective of the Act was to make necessary provisions in

regard to the registration of Trade Unions and to define the Law relating

to the register the Trade Unions. The Royal Commission on Labor

in India observed that the objective is to give Trade Union the necessary

protection from Civil and Criminal laws relating to conspiracy in order

to enable them to carry on the legitimate activities. The act was amended

in 1947 to provide compulsory recognition of Trade Union. But it was

not enforced. Further amendments to the Act were in 1960, 1962 and

1964. A comprehensive Trade Unions (Amendment) Bill 1982 was passed

by parliament, but was not enforced.

The Term Trade Union can be expressed both in ordinary sense

and in broad sense. It is a combination of workmen in ordinary sense

and in a broader sense it includes combination of employers and federation

of two or more such combinations. So the Trade Union means any

228

combination whether temporary or permanent formed for the purpose

of regulating relation between workman and employers, workmen and

workmen.employers and employers But agreement between partners in

business is not a trade union. Also an agreement in consideration of

the Sale of^ Goodwill of a business or of instructions in any profession,

trade of handicraft is not a trade union. The Trade Union should send

their applications for registration to the Registrar with information viz.

Name and Address of members making application, the name of the

Trade Union and address of its Head Office, the titles, names, ages,

addresses and office bearers of the Trade Unions, and a general statement

of the assets and liabilities of the Trade Union. A Trade Union can

be registered only under the Trade Union Act 1926. Therefore, Trade

Unions registered under other acts like the societies registration act 1860,

the co-operative societies act 1912 and the companies Act 1956 shall

be void. The Registrar can cancel or withdraw the registrations. But,

he has no power to restore the registration canceled by him (52).

The Trade Union can request the Registrar to cancel their registration

after the approval of the general meeting of the Trade Union or majority

of the members of the Trade Union. The Registrar must give atleast

2 months notice before canceling the registration. Although it is not

legally necessary to register a Trade Union, a registered Trade Union

has got certain advantages. A registered Trade Union become a corporate

body and also legal entity distinct from its members. It gets a perpetual

succession and common seal. It can acquire and hold both movable

and immovable property and also enter into contract. It can sue and

229

be sued in its registered name.lt is not mandatory for the registered

Trade Union to admit anyone as its member. To become and executive

member of the Union he should have attained the age of 18. A person

who has been convicted by a Court in India for any offence involving

moral turpitude cannot become an office bearer before the lape of five

years after his release. Not less than 50% of the office bearers of

every registered Trade Union shall be person actually engaged or employed

in the respective industry.

The Trade Union Act provides immunity from Civil proceedings

to a registered Trade Union and its members, office bearers. No legal

proceeding is maintainable in any civil court against registered Trade

Union. A registered Trade Union is not liable in any suits or other

legal proceedings in any civil court in respect of any tortious act done

in contemplation or furtherance of trade dispute, by an agent of the

Trade Union. If it is proved that such agent acted without the knowledge

of or contradict to the express instructions given by the executives of

the Trade Unions. A Trade Union registered under the Act can be

withdrawn or canceled by the Registrar on non-fulfilling of the requirement

under sectionIO of the Act. But the registrar cannot cancel the registration

of a Trade Union without giving the specified notice and in violation

of the principles of natural justice(54). Section 11 of the Act provides

limited right of appeal against the decision of the Registrar. Refusal

of the Registrar to register a Trade Union or withdrawal or Cancellation

of Certificate of Registration are appealable under the Act. The Trade

230

Union also cannot spenij its fund for unlawful activities. As suchi using

fund for illegal strike or lock out is violative of Ihe previous of tfie

Act. Section 24 of tfie Act provides a metfiod for amalgamation of

2 or more trade unions. Amalgamation may take place witfi or wittiout

any dissolution or division of funds of the amalgamating Unions. Before

any amalgamation takes place at- least one fialf of members must

record tfieir votes, and atleast 60 percent sfiould support sucfi amalgamation.

Notice in writing must be given to Registrar for amalgamation. Sucfi

notice must be signed by tfie Secretory and seven members of eacfi

and every Trade Union tfiat is a party to amalgamation.

Registered Trade Union is required to submit annual return to

tfie Registrar before tfie prescribed date alongwitfi a Audited Statement

of all receipts and expenditure for tfie year ending 31st day of December.

A general statement of tfie assets and liabilities of tfie Trade Unions

existing on 31st day of December sfiall be sent one tfie prescribed

date. A copy of tfie cfianges in rules of registered Trade Union witfi

15 days from tfie date of making sucfi cfianges sfiould be given to

tfie Registrar. Tfie Registrar fias got power to inspect all tfie or original

documents included in tfie general statement. Any false . entry or

intentional omission in tfie General Statement is punisfiable witfi a fine

wfiicfi may extent upto Rs. 500/-. Tfie Act also provide provision giving

power to appropriate government to make regulations for its effective

implementation. Sucfi regulations sfiall be publisfied in tfie official gazette.

Section 31 to 33 of tfie Act deals witfi provisions of penalty wfiicfi

231

may be imposed when there is default in submission of returns or

supplying false information.

The Trade Union Act is also a land-mark legislation in the field

of Industrial Relation. After the formation ILO in 1919, there was a

demand for standardization of Trade Union activity throughout the world.

The capturing of power by workers in Russia and establishment of

Socialist Government accelerated the movement. The Act provides protection

to the Trade Union from civil and criminal conspiracy for taking part

in strikes for furtherance of their demand. But the provision of registration

of Trade Unions with 7 members is to encourage registration of Unions.

But this provision is mis-used and a large number of Trade Unions

is registered from a single unit. The provision of 50 percent office

bearers from outside is also being mis-used. The politicians form their

union in industries and becomes its President or any other Office bearer,

for the furtherance of their political career. f\/lultiplication of Trade Union

and rivalry among Trade Union is because of the political interference

in Trade Union activities. f\/lost of our Trade Unions are faithful to

the political parties with which they are connected. Strikes are organized

by the political parties in Industrial Units to create problems for the

government. The registration provision in the Act has helped to enhance

the prestige of the Union and its office bearers. But there is no check

on the mis-use of Trade Unions Funds for political purposes.

232

The workers should be trained to manage the Trade Union themselves

so that the outside interference can be eliminated. Then only the Trade

Union will unitedly stand to struggle for the betterment of their members.

The Indutrial Employment (Standing Orders) Act, 1946

Only a few Industries had written terms of employment for their workman

before the passing of the Industrial employment (Standing Orders) Act

1946. Even the employees had no letter of employment mentioning out

their terms of service. A large number of probationers, badii workers

and labourers engaged through Sirdards in various types of contract

systems had no claim to permanency of service. They even did not

know on what conditions they were engaged. The condition of regular

office employees and factory employees were not different. Their condition

of service were unclear and unknown. So they were not aware of

their right in the establishment where they were working. So the employer

would change the conditions of employment at his whims and this became

a potential source of labour unrest. The employer could hire and fire

the workman without following any procedure or even giving the minimum

opportunity to defend them. Such arbitrary actions of the management

resulted confrontation between workers and the employers. For improving

the industrial relations the government decided to introduce a standard

condition of employment in private industry including provisions for disciplinary

action. With this view the Industrial Employment (Standing Orders) Act

was passed in 1946. Under the Act all employers in establishments

233

employing 100 or more workers has to define with clarity the conditions

of employment under them, and make them known to their workman.

The state government has got the authority to cover the establishment

even with less than 100 workers. The state of l\/1aharashtra by notification

dated 16.6.1982 applied the Act to the Establishments with 50 or more

workers with effect 15.8.1982. Once the Act is made applicable to an

Establishment, it will continue to apply even if the number of workman

fall below the required minimum. The Gujrat Government has made

the Act applicable to establishment employing 10 or more persons and

Factories employing 18 or more workers.

The administration of the Act is the responsibility of both Central

and State Government in their respective spheres. Under the Act the

employer is duty-bound to submit five copies of the draft standing orders

that proposes to be adopted in his establishment alongwith the particulars

of the workmen employed, etc. The draft standing orders should be

in conformity with the model standing orders prepared by the Government.

The standing orders should contain some essential matters like classification

of workmen, manner of intimating to workmen.period and hours of work,

holidays, pay-days, rate of wages, shift working, attendance and late

coming, the authority to grant leave, conditions of entry by pass and

liability to search, etc. The rules regarding the rights and liabilities of

the employer and workers during temporary stoppages of work, procedure

for termination of work, suspension, dismissal, etc, are also to be shown.

The certifying officer on receipt of such draft standing orders send the

234

copies of the same to the workmen and their union inviting their opinions

or objections. After hearing both employer and employees he certifies

the proposed standing orders with or without modifications. Then he

sent the certified standing order to the concerned parties.The certified

standing orders come into operation on the expiry of 30 days from

the day on which authenticated copies are sent to the parties. This

order is binding on both present and future employes of the

establishment.Without an agreement between employees and employers

the Certified Standing Orders cannot be modified within six months'of

its coming into operation. This can be done only with the approval

of certifying officer. The Act also provides penalty for non-compliance

of the provisions of the Act. The penalty for non-submission of the

draft standing order is Rs. 5000/- and Rs. 2000/- for each day of

dely. Contravention of certified standing orders is to be punished with

a fine of Rs. 100/- and for the continued contravention Rs. 25/- will

be fined for each day.

In 1956 parliament effected radical changes in the Act widening

scope and altering its very complexion. The workmen can raise objections

as to the reasonableness and fairness of the draft standing orders submitted

for certification. The standing order provided that drunkness, fighting, riotess

or disorderly behaviour or indecent behaviour within or outside the factory

as mis-conduct. Even if the workmen engaged in fighting and assault

another workmen on a matter connected with the factory affairs will

come under the purview of the standing orders.. This was decided

235

when a workmen assaulted another workmen in a matter connected

with introduction of incentive bonus scheme. If the standing order provides

the provisions of suspension pending enquiry against a workm^ and

if the order of suspension is confirmed or modified after enquiry, the

employee well be treated as absent from duty during the period of

suspension and shall not be entitled to any compensation for such

period. However, the order is revoked the employee shall be entitled

to wages for the period of suspension.

The Industrial Employment (Standing Order) Act have been described

by the National Commission on Labour as the foundation to guide the

maintenance of Industrial Peace. The certified standing orders which are

the crux of the Industrial Employment Act, regulate the standard of

conduct, and form the basis of the day-to-day labour management relations

in the covered establishments. In fact these orders are very important

for maintaining factory discipline for harmonious working and higher productivity.

This should not be treated as simply a paper Act and the employers

and workers should take interest in the implementation of the Act. Strict

implementation of certified standing orders on the part of the employers

would definitely put an end to the workers suspicion on the policies

of the management and their intentions. This would help the workers

to co-operate more willingly and would become more responsible. The

supervisors can make use of the standing orders more effectively as

they are in close contact with the workmen. For this purpose the standing

orders should be taught m details during the training programme so

236

that they can become familiar with its provisions. This can also be

made in the form of a hand-book which should be made available

to both workers and supervisors.

Industrial Dispute Act 1947

In the Indian context Industrial relation is a new origin. We

began to think of Industry and the term Industrial Relation only a few

decades ago. We had a village culture and our people did not think

of a new culture arising out of Industrialisation and the cities. The

labour relations and the importance of labour began to focus attention

only after the first world war. Ours is a different culture and as such

.can not study this subject with reference to the European countries.

At the same time, we cannot ignore the fact that industry plays a

major role in national productivity and as such cannot ignore the problems

of Industrial Relation. But we have to study Indian Industrial Relation

keeping in view of our rural background and the past culture. Even

today, we do not have a society that can be fully termed as an

Industrial Society. Every Industrial Worker in India still has got his roots

in the remote villages of the country and the problem of Industrial

Relation should be viewed in this context. Any other approach to this

problem will be irrelevant in the Indian context. It does not mean that

we should not take into consideration of the developments that are

taking place around the world. In India we could not establish a sound

and constructive Industrial Relation because the workers and the employers

237

are not able to adjust to the Industrial atmosphere ,that are new to

them. A close look into the industrial society would bring many facts.

Several measures taken by employers and government to provide facilities

and amenities are not taken kindly by the workers. This is not because

they have got any objections to this, but they are unable to adjust

with the atmosphere. The workers are not educated to adjust with the

industrial culture that is the base for the Industnal relations which they

have to establish during the course of their employment. Industrial peace

and harmony is of paramount importance not only to the Industrial

establishment, employees and employers but also to the community as

a whole. It is necessary to achieve productivity which is the most important

source wealth of the modern society. The national income depends on

Industrial production in the modern world.

The industrial dispute Act 1947, is one of prestigious legislation

ever enacted in the history of Indian legislation. The purpose of the

act is to define and regulate standards of conduct, and to establish

a basis for day to day labour management relations in Industrial establishments,

and thereby achieving industrial peace. The terms industrial dispute means

any dispute or difference between employers and employers or between

employers and workmen or between workmen and workmen, which is

connected with employment or non-employment or the terms of employment

or with the conditions of employment of any person. That is to say

the industrial dispute Act does noi cover a dispute between government

and industrial establishment and also workmen and non-workmen. The

idoo

employer may be association or a group of employers (55). The employer

for the government undertakings, they authority specified to act as the

employers and if no specified authority is not there the Head of Department

will be employer. The industries under local bodies the chief Executive

officer of such bodies will be the authority. Under the Industrial Dispute Act

an employer does not cease to be so by transferring some assets

and liabilities (56). It is also decided that a 'Benamadar' becomes an

employer when a transfer is made to victimize a workman(57). Under

the Act industry means any business trade, undertaking manufacture

or calling of employers and includes any calling, service, employment,

anticraft or industrial occupation or avocation of workmen. The supreme

court in Bangalore Water Supply and Sewage Board's case has taken

a wider view of the term industry(58). Clubs, Education and Research

Institutions, Charitable Projects, which were not included in the term

industry were also brought under the term industry. But University is not

an industry as was decided in the case of University of Delhi-59.

A hospital come under the purview of industries 60. A college and

Ayurvedic pharmacy for production of medicines run together is an Industry

61. But the term industry does not include any agricultural operation

except where such operation is carried on in an integrated manner.

Khadi and Village Industries and domestic services would not come

under the purview of the Act. Activities being a profession, practiced

by an Individual or body of individual are also not come under

239

industries. Industrial dispute Act has made great impact on industrial dispute,

regulation in the country. The Act provides a comprehensive machinery

for settlement of disputes. The Act is designed to settle industrial dispute

on a new pattern different from the exsisting judicial machinery. It is

to provide an effective machinery for just and equitable settlement of

dispute by adjudication, arbitration and negotiations. This would discourage

show of strength of workers and employers by resorting to strike and

lock-outs to settle the disputes. The Act provides two important institutions

for prevention and settlement of disputes viz. works committees and

industrial tribunals. The emphasis on the principle of voluntary settlement

through work committees and other forums is the indication of the

governments intention to help the prevention of industrial disputes

rather than to decide it on merits. Creation of proper atmosphere

for industrial growth is the main objective. The main provisions of the

Act is to constitute work committees and establish machinery for settlement

of industrial disputes comprising of conciliation, arbitration and adjudication.

The act also deals with provisions to declare strikes and lock-outs,

etc as illegal. Authorities constituted by Act for the prevention,

investigation and settlement of industrial disputes are work committees,

court of enquiry, conciliation officers, and board of conciliation, labour

court, industrial tribunals and national tribunals. It would be appropriate

to look into the working of these machineries to evaluate the implementation

of the Act its true sense.

240

Work«s Committee is one of the authorities under the act. Its

objective is to nip in the bud any industrial problem. So its role is

preventive rather than solution. The intention is to create a sense of

partnership to workers by including them in the works committes so

that they can make suggestations of common inetrest (62).

Concilation is another method for preventing industrial disputes

through third party interventation (63). The machenary helps to reconcile

industrial disputes by a freindly intervention of a neutral person. The

third party intervention is helpful to bring both the parties face to face

and talk about their problems. This is without any doubt helpful in

removing at least the misunderstanding due to communication gap. It

provides an opportunity to arrive at a compromise in the sprit of give

and take policy (64). There is no fixed procedure for conciliation and

therfore open to adopt any policy according to the need of the circumstances.

But the method is not found favourable a acceptance by workers and

employers.

Arbitration is another method provided in the act to settle industrial

disputes. An arbitrator is appointed to settle industrial dispute. Its decision

is binding on both the parties. Though it is not a Judical process

its decision has to statutory backing. This system is also not popular.

241

Under adjudication process, there are Labour Courts and Tribunals.

Most of the industrial disputes are settled through these methods. Labour

Courts and Tribunals are the widely accepted forum of settling industrial

disputes. Labour Courts are flooded with industrial disputes and related

matters. These Courts are unable to settle disputes as they are over

loaded with work. They deal with all types industrial disputes and also

individual cases. The decision of Labour Courts are binding and there

is no appeal provison. Still both the parties try to approach High Court

and Supreme Courts under writ jurisdiction.

The industrial dispute act also provides detail provisions regarding

stikes and lockouts. While dealing with strike, the act distinguishes between

leagel and illleagel strikes. In certain public utility services the act imposes

restrictions on strikes. If the provisions of the act is not fulfilled, then

the strike and lockout can be declared illegal (65). For the priod of

illegal strike workmen can not claim any wages (66). For claiming wages

for the strike period, the strike should not only be leageJ but also

be justified (67). For unjunstified strike no wages is admisible.

The industrial act has enacted with a view to maintain industrial

peace and thereby providing proper atmosphere for industrial development.

It is a sincere effort to estiblish industrial peace but the response of

the concerning parties are not encourging. The enclosed charts of strikes

and lockouts for the past three decades are a clear indication of the

failure of the mechinery provided to prevent strikes and lock outs in

242

industrial establishments. The reason for this faliure may be because

of the non coopration of employers and workers to settle their problems

with mutual consultation and to recognise the importance of thied party

intervention. The settlement mechineries are not effectively functioning

and industrial struggle goes on without any control. The result is the

loss of millions of precious man hours every year. Therefore, it is

high time to device a mutually acceptable system of settlment of disputes

so that the country can utilise the precious man power in the process

of production.

243

Industrial Disputes Classified by Strikes and Lockouts : 1961 to 1990

No. of Disputes 4̂o. of Workers involved [Mo. of Mandays lost (CX»)

1961

1962

1963

1964

1965

1966

1967

1968

1669

1670

1671

1672

1673

1974

1975

1976

1977

1978

1979

19a)

1981

1982

1983

1984

1985

1986

1987

1988

Stnkes

1.240

1,396

1,364

1,981

1,697

2,353

2,433

2.451

2,344

2,5«

2.478

2,857

2,958

2.510

1,644

1,241

2,691

2,762

2,7CB

2.501

2.245

2,029

1.993

1,689

1,355

1,458

1.348

1.334

1989(P)1,4C»

1990(1 =)730

LoctoUs

117

95

107

170

138

203

382

325

283

291

274

38«

412

428

299

218

426

425

340

355

395

454

344

405

400

434

451

441

385

226

TcHaJ

1.357

1,491

1.471

2.151

1.8:^

2.556

2.815

2.776

2.627

2,8®

2,752

3.243

3,370

2.938

1,943

1,4^

3.117

3,187

3,048

2.856

2.589

2,483

2,488

2,094

1,7K

1.892

1,799

1,745

1.7^

956

Sttkes LockoUsTotai

432 03 512

575 130 705

491 72 563

876 127 1,003

889 102 991

1.262 148 1,410

1.340 151 1.419

•. :65 204 1.669

1,687 140 1,827

1.552 278 1.828

1.476 139 1.615

1.475 262 1.737

2.358 187 2.545

2,710 145 2,855

1,032 111 1.143

550 186 738

1.912 281 2,193

1,690 226 1.916

2,714 159 2,873

1,661 239 1,900

1,261 327 1,588

1,191 278 1.469

1,167 294 1,461

1,726 223 1,949

878 201 1,079

21,444 201 1,645

1,495 275 1,770

937 254 1,191

NA NA NA

NA. NA NA

Stnkes LockoilsTotal

2.969 1.9M 4.919

5.059 1,062 6,121

2.229 1,040 3.269

5.724 2.001 7275

4.617 ;,B53 6.470

10,377 3,4^ 13.846

10,565 6,583 17 148

11,078 6,166 17.244

15.477 3,571 19,048

14.749 5,841 20,^3

11.a33 4,743 16,546

13.748 6.796 20,544

13.862 0,764 20.626

33,643 6,619 40,262

16.706 5.195 21.901

2.799 9.947 12.748

13,410 11,910 25,320

15.423 12,917 28,340

35.0)4 8,050 43.854

12,018 9,907 21,925

21.208 15.375 36.583

52.113 22.502 74,615

24,921 21,937 46,858

39,957 16,068 56.025

11.487 17,7'̂ 3 29.240

18.824 13,925 32,749

14,026 21,332 35,358

12,530 21,417 33,947

10,650 19,790 30,440

3.560 4,660 8,220

5 o u / l C £ : Cij C M i e CI9<»«'), Vol . 1 QruiC'') N j in i" *^ ' ) - " f

LQii»ou-r , TjOJ , -4nnvia» tit^por-t ttft^g-q,-. Ue» • I

244

Statewise Average Number of Workers involved in Lockout and Average No. of Days a Worker was involved in Lockout

1987 1988

State/union Average No.of Average no of Average no of Average no of

Workers involved days a workers wasWorkers involved indays a workers

in a lockout

1. West Bengal 731

2. Maharashtra 378

3.

4.

5.

6.

7.

8.

9.

10.

11.

12.

13.

14.

15.

16.

17.

18.

Bihar 1457

Uttar Pradesh 503

Tamil Nadu

Gujarat

Karnataka

Kerala

Andhra

Pradesh

Orissa

Rajasthan

Haryana

Punjab

Goa

Maharashtra

Tripura

Delhi

Assam

386

413

383

337

771

760

280

578

721

1041

649

200

34

,

involved

in a lockout

120

133

72

104

99

51

62

33

5

32

41

25

47

48

76

275

111

a lockout

745

420

121

339

269

147

992

150

850

367

118

377

450

1041

181

186

521

was involved

in a lockout

146

113

72

64

77

36

58

124

6

85

55

55

24

10

23

141

Total Average 610 77 575

Source : Computed from the data provided in Labour Bureau (1991)

245

state-wise Distribution of Lockouts in India

1987 988

Slate/Union No.of No.of No.of % of No.of No.of No.of % of

Territory lockout workers total total lockouts workers total total

affected mandays mandays affected mandays mandays

lost lost lost lost

1. West Bengal

2. M.S.

3. Bihar

146

55

16

4. Utter Pradesh) 18

5. Tamil nadu

6. Gujarat

7. Karnataka

8. Kerala

9. Andhra

Pradesti

10. Orissa

11, Rajastafian

12. Haryana

13. Punjab

14. Goa

15. tvladliya

Pradesh

16. Tripura

17. Delhi

18. Assann

Total

18

28

13

26

73

9

18

13

5

2

2

1

8

451

106707

20812

23319

9059

6946

11574

4985

8771

56271

6837

5033

7516

36(»

2082

1298

200

273

275288

12747385

2759435

59.8

12.9

1672695 7.8

945705

688058

590353

306801

291779

265605

221782

205198

187201

166950

100040

98100

54854

30350

2133291

4.4

3.2

2.8

1.4

1.4

1.2

1.0

1.0

0.9

0.8

0.5

0.4

0.2

0.1

100.0

138

69

10

17

20

19

13

18

92

7

16

10

4

2

3

1

-

441

1020220 15,00,0

28961

1211

5771

5386

2797

11988

2696

78178

2571

1886

3768

1799

2082

542

186

-

253742

328220

87436

368713

415088

100543

696988

355422

470619

217271

104363

206168

42342

21444

12698

262626

-

70.1

15,3

0.4

7.1

0.5

3.2

1.6

2.2

1.0

0.5

1.0

0.2

0.1

0.1

0.1

-

21417030100.00

Notes : No lockouts were reported from frie States/Union Terriories of Himachal Pradesh,

Jammu and Kashmir, fulanipur, Meghlaya, A and N Islands, Chandigarh, Lakshdeep and Pondichery.

(P) Provisional

Source : Compiled and computed from Labour Bureau (1991 a)

246

Notes & References

1) Vidhyarthi R.D., Growth Labour legislation and it impact on Economic

development.p.33.

2) Tannen Baun, F.A; A Philosophy of Labour court quated by S.C.

Pant in Indian Labour Problems, Chaitanya Publishing House, 1965.

3) V.V Giri, Labour Problem in Indian Industry, Asia Publishing House,

Bombay, p-141.

4) G.M Kothan, A Study of Industrial Labour, p.p 250-55.

5) Works Manager, Central Work Shop vs Vishwanth, AIR 1970.SC-488.

6) M/S Rathod Industries Ltd. vs Ram Laxman Steel, AIR 1987, p.V. 580.

7) Ganpatlal Mulchand Joshi vs First Civil judge Nagpur, AIR 1958 Bom.

262.

8) Industrial Elites and their Awareness and Legislation, National Labour

Institute Bulletin IV NO. 5. 1987.

9)The Payment of Wages Act 1936 a case study of its Implementation

and awareness in Award Digest, a Journal of Labor Legislation vol.

IV No. 6.1978.

10) Ibid, 1936.

11) D.V. Engineer, GIP Railway vs Mahadeo, AIR. 1955, SC-295.

247

12) Armasham vs Gulmhor Mills. AIR 1965 may 79.

13) M.B Goi/Tvs BrahtJTftOailqt, AIR 1956 MB 152.

14) G.M Kothari, Op.cit.p-340.

15) Ibid, p-346.

16) Arvind Mills Ltd. vs K.R Gadgil AIR 1941. Bom 26.

17) Swastic Textile Mills vs Srjasingh Sandasigh and other 1984.11 LLJ

97.

18) Orient Paper Mills Sramik Congress vs. O.P Mills 1989, FJR 434.

19) Kothari (Madras) Ltd vs. Second Additional District Judge. 1990

76 FJR 209.

20) Moohamad Sultan, vs A.P. Dairy Development Co-operative Federation

Ltd 1990 77 FJR 244.

21) The National Commission of Labour report p-220.

21) S.N Mehrotra, Labour Problem In India page 450 S Chand and Co.

Ramnagar New Delhi 1981.

23) Royal Commission Report p. 211.

24) People's Union for Democratic Right Vs Union of India AIR 1982

SC 1473.

25) Bandhua Mukti Morcha vs Union of India 1984 SC 161.

26) Eward Mils Co. Ltd. Vs State of Ajmer AIRr 1955 SC 25.

27) Jyoti Industry vs State of Kamataka AIR 1984, LLJ 201.

28) I.L.O. Problem of Wage Policy in Asian Countries, Geneva 1955

p 109.

29) Associated Cement Co. Ltd vs Workmen 1959 LLI 644.

30) Jalan Tradding Co. vs Mill Mazdoor Sabha 1966, I LLJ 546.

248

31) Arthur James Todd, industry and Society.A Sociological Appraisal

of Modern Industrialsation p.250

32) N.M. Joshi, Trade Union Movement in India, 1927, p.26.

33) The New Schedule for Substited Act No. 222 of 1984.

34) Saurashtra Salt Mfg.. Co. vs B.V. Raja and others AIR 1958 SC 881.

35) BEST Undertaking Bombay vs Mrs. Aghe 1963 II L U 615.

36) Sundaresa Mudalier vs. Muthamal 1956 LU II 52.

37) ESIC vs Ganatia Pilllai 1960-61 19 FJR 372.

38) ESIC vs Tata Eng. Locomotive Co. Ltd. 30 FJR 304.

39) ESIC vs Sriramlu Naidu 1960 II LU 699.

40) ESIC vs Gnanabike Mills Ltd. 1974 II LLJ 531.

41) Annual Administrative Report, ESI 1970.

42) M.L. Monga, Industrial Relation and Labor Law in India, Deep and

Deep Publishing, New Delhi p. 190.

43) Calicut Modern Spinning and Weaving Mills Ltd vs Regional Provident

Fund Commissioner, 1985 K I LLJ 433.

44) Ramanujan Press vs RPFC 1970 II LLJ 106.

45) Nzeena Traders vs RPFC 1961 I LLJ 334.

46) RPFC vs. T.S. Hariharan 1971 I 416 SC.

47) Metro Motor Ltd. vs RPFC Punjab (1958-59) 14 FJR 441.

48) Leo Mercantile Corporation vs RPFC 1987 II LLJ 35.

49) A. Gangadharan vs. Govt, of India 1978 II LLJ 317.

50) Dharmasi Morarji Chemicals Ltd vs. RPFC 1985 I LLJ 433.

51)The Hitwad Nagpur Dated 4-12-94.

52) Mukund Iron & Steel Works Ltd. vs V.G. Deshpande, Ragistrar of

249

Trade Unions Bombay 1986 il LLJ 290 Bombay.

53) Mohamad Ibraiham vs Asonsal Iron Steel Works, workers Union 1954

i LU 1.

54) MISWL Association vs Labour Commission 1979 I LLJ 448.

55) Western India Automobile Association vs Industrial Tribunal Bombay

1950 LLJ 245.

56) Bharat Bank Ltd. Delhi vs Employees of Bharat Bank 1950 SCR

459.

57) V.V. Nakate vs Chaya Talkies, 1953 LAC 67.

58) Banglore Water Supply and Sewage Board, vs A Rajappa other AIR

1978 SC 548.

59) University of Delhi vs Ramnath 1963 LLJ 335.

60) State of Bombay vs Hospital Mazdoor Sabha AIR 1960 SC 610.

61) Lalit Hari Ayurvedic College Pharmacy vs Workers Union 1960 I

LLJ 250.

62) National Commission on Labour Report 1969, p.322.

63) I.L.O. Concilation in Industrial Dispute A Practical Guide Indian Edition

1980 p-4.

64) Randle, Collective Bargaining Principle and Practice p-429.

65) M/S Tata Iron & Steel Company Ltd. vs Workman AIR 1972 SC 1917.

66) Ballarpur Collieries Co. vs The Presiding Officer, Central Government

Industrial Tribunals, Dhanbad, AIR 1972 SC 1216.

67) Crompton Greaves Ltd. VS The Workmen AIR 1978 SC 1489.