Copy of Industrial Dispute Act, 1947

INDUSTRIAL LAW

PRESENTED BY:-

Gautam Lodha-84

Janeel Dodhia-68

Vinit Gogri-73

Dipika Kumawat-82

Zoha Makhnojia-85

Varda Velker-115

Jay Chheda-66

Shikha Bhansali-63

Conclusion

Case1: Maruti Suzuki India Ltd Employees Strike

• Right step. The incident justifies even the permanent closure of the plant in Haryana and shifting them to some other state. The state has not even identified the murderers so far.
• Maruti may also do an introspection seek win-win solutions.
• Case is still going on…

CASE3: Turbulent timed in Indian aviation center

Introduction

Reasons

MANESAR “ Strike

CASE4: Enron Scandal Company Information

Workers inside the factory

• In October 2008 Jet airways (India) LTD. (jet) one of the India’s leading domestic airlines employees, faced retrenchment.
• The airline showed the door to 850 cabin crew members and the rest were, airport service staff, and employees from management departments.
• Later the chairman reinstated the employees, saying that he was not aware about the sackings.
• Lot of pressure came on the management and HR department due to reinstate of 1000 employees.

• Earlier, on June 4, workers at the plant had gone on a 13-day-long strike demanding the recognition of a new union, the MARUTI SUZUKI Employees Union (MSEU)
• In the GURGAON plant the salary of skilled workers adds to 30,000-40,000 Rs including the overtime and incentives, whereas the skilled Labourers at MANESAR get only around 13,000-17,000 Rs.
• From the 4th to 17th of June around 2,000 young workers engaged in a wildcat sit-down strike at Maruti Suzuki factory in Manesar.
• It was a hard strike. The workers gave no notice to management, the stopped production completely and around 2,000 workers stayed inside the factory for nearly two weeks.
• The strike ‘postponed’ the production of 13,200 cars and caused a loss of about 6 billion Rs.
• It’s June sales figures dropped by 23%, the sharpest fall in two and a half years.

• Company Name : Jet Airways(India) limited (jet)
• Company Type : Aviation industry
• Formed in Year : April 1992
• Commercial year : 1993
• Chairman : Naresh Goyal (Goyal)
• Year of incident : 2008

CASE2 :-

Maruti Suzuki Declaired Lockout

• Staff of executives, by the use of accounting loopholes, special purpose entities, and poor financial reporting, were able to hide billions of dollars in debt from failed deals and projects.

• Chief Financial Officer Andrew Fastow and other executives not only misled Enron's board of directors and audit committee on high-risk accounting practices, but also pressured Enron's auditor, Arthur Andersen to ignore the issues.

• Company Name : Enron Corporation
• Company Type : Public Limited Company
• Industry : Energy
• Formed in Year : 1985
• Founder : Kenneth Lay
• Preceedors : Houston Natural Gas and InterNorth
• Based In : Houston, Texas
• Reason For Closure : Bankruptcy
• Revealed in : October 2001
• Defunctioned : November 2004

• The workers continued the strike despite the police stationed within the factory premises and despite strike having been officially declared illegal by Haryana government on 10th of June.
• This strike stopped production at around 200 local supplying factories.

• In the End..!!
• In response to the workers request for transport, the company agreed to provide bus services in line with shift timings.
• To address the concerns of the Manesar workers, the company has agreed to set up a ‘grievance redressal committee’. The committee will have representatives from the management and the workers.
• A Labour officer from the state government will be a permanent invitee to it and review its proceedings.
• Maruti Suzuki has also agreed to the formation of a ‘labour welfare committee’ to promote good relations between the management and the workers.

Consequences

• Held at Manesar
• Haryana SECTION (302)UNDER IPC
• LOCKOUT FOR TWO WEEK
• JULY,2012 :workers killed a company official and injured 100 managers
• R.C Bhargava ,chairman who took all important decisions
• The police have arrested 91 workers

Continue..

A month later-in November 2008.

• Jet announced that it would consider serious cut offs in salary for its staff to handle the aviation crises.

2 months before incident-In September 2008.

• The international air transport association (IATA) had predicted that world over the aviation industry would lose about US$5.2 billion based on an average jet fuel price of US$140.
• The rise in fuel prices had pushed the fuel bills of aviation industry to US$186 billion by the end of the year 2008.

• Enron filed for bankruptcy under Chapter 11 of the United States Bankruptcy Code.
• Many executives at Enron were indicted for a variety of charges and were later sentenced to prison. Enron's auditor, Arthur Andersen, was found guilty in a United States District Court, but by the time the ruling was overturned at the U.S. Supreme Court, the company had lost the majority of its customers and had closed.
• Employees and shareholders received limited returns in lawsuits, despite losing billions in pensions and stock prices
• As a consequence of the scandal, new regulations and legislation were enacted to expand the accuracy of financial reporting for public companies

• “The Haryana government has, under the provisions of the industrial dispute act 1947, referred the matter of ongoing strike in Maruti Suzuki Udyog Ltd, Manesar, by the workers to the competent labour court and has also passed the orders prohibiting the continuance of the strike in the industrial unit,” Minister of the state for Labour and Employment shiv Charan Lal Sharma said in a statement.
• The strike was officially called illegal.
• Yet there was a strike again. They resorted to a strike while five of them were suspended for “allegedly assaulting a supervisor”
• Later the management dismissed five more workers ”on charge of attacking on 3 supervisors and a worker “ and hired 100 strike breakers to replace workers who have refused to sign the ‘good conduct bond’.
• The Haryana labour commissioner Satwanti Ahlawat declared the government’s support for the company, saying “whatever the bond that the management is asking the workers to sign is as per rule and workers will have to sign it.”

• The fate of the strike was handed over to the ‘negotiating forces’. It is inexpert to repeat the phrase of ‘unfaithfulness’ of the main unions. It evades the question of what gives them the power to betray in the first place.
• Haryana state sources a fair chunk of tax revenue from maruti suzuki. In 2010 the company paid around 13 billion Rs. Tax to the regional state.
• The question was put up that the production of maruti has gone up from 10 Lakh units in 2009-2010 to 12.7 lakh units in 2010-2011, but their salary has not gone up at all.
• Where was the incentive for the hard work?
• The company knew that there was trouble that would arise, that some workers planed on registering a separate union and so the company had already prepared legal documents for a possible expulsion of workers from the premises.
• The union had been set-up by forces close to management after the lock-out at Gurgaon plant in 2000/2001.

• Massive salary cuts follow
• In last week of November , jet decided on a 20% cut in the salaries.
• Employees protested against the decision of oust them with prior notice.
• Reason for retrenchment was the growing challenges in the aviation industry.
• This led to the lay-offs at jet, according to the company and other industry analyst.

DEMAND OF WORKERS

• workers killed a company official and injured 100 managers.....
• The recorded CCTV footage has been used to determine the sequence of events and people involved
• The shut down of Manesar plant is leading to a loss of about Rs 75 crore[40] per day
• Manesar violence adds to India's recent incidents of labour disputes turning to violence
• Maruti-Suzuki management illegally suspended a further 10 workers, and dismissed 5 workers and 6 trainees on alleged grounds of sabotage
• unfair labour practice under section 2 (ra) of the Industrial Disputes Act, 1947

DEFINITION

STRIKE

LAY OFF

RETRENCHMENT

“LAY-OFF”has been defined in section 2(kkk) of the Industrial Disputes Act, 1947 in the following words.

Section 2(kkk) means the failure, refusal or inability of an employer on account of shortage of coal, power or raw materials or the accumulation of stocks or the breakdown of machinery 5[ or natural calamity or for any other connected reason] to give employment to a workman whose name is borne on the muster rolls of his industrial establishment and who has not been retrenched

“STRIKE”has been defined in section 2(q) of the Industrial Disputes Act, 1947 in the following words".

“Strike means a cessation of work by a body of persons employed in any industry, acting in combination or a refusal, or a refusal under a common understanding, of any number of persons who are or have been so employed to continue to work or to accept employment”.

“RETRENCHMENT has been defined in section 2(oo) of the Industrial Disputes Act, 1947 in the following words.

RETRENCHMENT means the termination of the employer of the service of a workman, it may for any reason as an disciplinary action & does not include voluntarily retirement, non-renewal of contract or termination of service on the ground of ill health.

DEFINITION

LOCKOUT

• “CLOSURE” has been defined in Industrial Disputes Act, 1947 in the following words.

• The permanent closing down of the place of employment is closure it also means the closing of any place, total or partial suspension of work by an employer. This renders workers jobless

“LOCKOUT”has been defined in section 2(1) of the Industrial Disputes Act, 1947 in the following words.

LOCKOUT means the closing of a place of employment, or the suspension of the work, or the refusal by an employer to continue to employ any number of person employed by him.

TYPES OF INDUSTRIAL DISPUTES ACT 1947

DEFINITION OF INDUSTRIAL DISPUTES

INDUSTRY

According to section 2(k), Industrial Disputes means any dispute or difference between:-

• Employers & Employers
• Employers & Workmen
• Workmen & Workmen

Industrial Dispute may be said to be disagreement

or controversy between management and labour

with respect to wages, working conditions, other

employment matters or union recognition.

As per section 2(J) of Industrial Dispute Act, 1947

Industry mean any systematic activity carried on by cooperation between an employ and his work man for the production supply or distribution of goods and services with the view of satisfy human wants or needs.

CONTENT

• Definition of industrial disputes.
• Types of industrial disputes.
• Case1 (STRIKE)
• Case2 (LOCKOUT)
• Case3 (RETRENCHMENT & LAYOFF)
• Case4 (CLOSURE)

Industrial Dispute Act, 1947