INDUSTRIAL RELATIONS LAWMODULE-2

V.NAGARAJ PROFESSOR of LAW NATIONAL LAW SCHOOL OF INDIA UNIVERSITY NAGARBHAVI BANGALORE-560072 vnagaraj@nls.ac.in

INDUSTRY-Definition
Section 2(j) of the industrial disputes Act defines industry means any business ,trade, undertaking, or calling of employers and includes any calling, service, employment, handicraft, or industrial occupation or avocation of workmen.

 In the ordinary sense industry or business means an undertaking where capital and labour co-operate with each other for the purpose of producing wealth and for making profits. Nothing prevents the statute from giving a wider meaning. The I.D Act is intended to bring about industrial peace and harmony. Hence Industry is given a wider meaning. The judiciary has interpreted Industry in a number of cases. They can be classified as fallows:
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 1st phase 1953 to 1962-wider meaning 2nd phase 1963 to 1978- narrow meaning 3rd phase BWSSB v A.Rajappa [AIR 1978 SC5 48] -reviewed the earlier cases and widest meaning was given 1978 Parliament Reacts and amends Industrynot brought in to effect so far 4th phase-Reservations about the correct ness of BWSSB case-Requested the CJI to constitute a larger bench than BWSSB case to explain what is industry- State of U.P v Jai Bir Singh [(2005) 5 SCC1]
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 1st phase1953 to 1962 D.N.Banerji v P.R. Mukherjee [AIR 1953 SC 58] - The judiciary dealt with the question whether Municipality is an industry? The SC held though municipal activity could not be regarded as business or trade it would fall with in the scope of the expression undertaking and it is an industry. In Hospital Mazdoor Sabha v State of Bombay The SC held that Hospital comes under then term undertaking hence Industry Industry includes even activities which have no commercial implications.
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 Activities carried on by Govt. or charitable organizations will also be industry. The SC in this case laid down a working principle: an activity systematically or habitually undertaken for the production and or distribution of goods or for rendering of material services to the community with the help of employees is an undertaking In this case it was also held that an undertaking to be an Industry must be analogous to trade or business. Sovereign or Regal activities are out side the scope of Industry.
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 Corporation of the city of Nagpur v Its employees AIR1960 SC 675 This case was under the C.P and Bearer I.D and Settlement Act, 1947 Here unlike the definition of industry in the ID Act the word undertaking in this definition is qualified by the words manufacturing or mining. The Judiciary could not use the earlier cases and call Corporation as an Undertaking. In this case the SC said that municipal functions are analogous to business or trade Hence Corporation was held to be an industry.
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 In Nagpur city corporation case there was another issue raised as to sovereign functions. Departments performing sovereign functions are excluded from the definition of Industry. If a department performs many functions, some pertaining to industry and other non industrial activities, the predominant functions of the department shall be the criteria for the purpose of deciding whether the department is industry or not. The Sovereign functions shall be confined to legislative power, administration of Law and Judicial power. 8

 Trend Between 1963 to 1978 In this period the trend was narrowing down the meaning of the term industry. University of Delhi-v-Ramanath AIR1963 SC 1873 the SC held that University is not an industry-because: Main scheme of an educational institution is imparting education Teaching is not with in the purview of industry as there is no commercial motive The subordinate staff play a minor or insignificant role in the process of imparting education Permitting the insignificant role of the subordinate staff to lend the colour of industry is unreasonable.
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 Cricket Club of India-v-Bombay Labour union AIR 1969 SC 276 The SC held that Cricket Club is not an Industry. The Clubs activity is basically promotion of the game of Cricket. It is a self serving institution It is not carrying any trade or business. In the course of promoting the game it has incidentally earned some profits. It is not set up for earning profits.
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 In the Management of Sardarjung Hospital-vKuldipsingh Sethi AIR 1970 SC 1407, the SC held that Hospital is not an industry. They overruled the earlier Hospital mazdoor sabha case Hospitals run by the Government or Charitable institutions are not run on commercial lines. If an hospital or Nursing home is run on commercial basis then it may be an industry. The hospitals in question are not industry as they are not run on terms analogous to trade or business.
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 Bangalore Water supply Sewerage Board-vA.Rajappa AIR 1978 SC 548 This was a seven judge bench constituted to review all the earlier cases and explain what is the meaning of Industry. This case revived the pre 1962 cases and over ruled the post 1962 cases. The law developed in this case is an amalgamation of Hospital Mazdoorsabha case and Nagpur city Corporation case, with minor eloborations.
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The BWSSB case developed a working principle to determine whether an activity is an industry or not: 1. Systematic activity 2. organized by Co-operation between employer and employee 3. For the production and or distribution of goods or services; Such an activity is an industry Absence of profit motive is irrelevant. If the organization is trade or business it does not cease to be one because of philanthropy animating the undertaking
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 A restricted Category of professions, Clubs, co operatives and little research labs may qualify for exemption, if no employees are entertained but in minimal matters, marginal employees are hired without destroying the non employee character of the unit. Regal functions the approach fallowed in Nagpur city corporation was fallowed Sovereign functions strictly understood alone qualify for exemption, not the welfare activities or economic adventures undertaken by government or statutory bodies.
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 Parliamentary reaction-1982 Amendment to section 2(j)- industry Amendment barrowed the definition as given in the BWSSB case- Clarified the situation further by stating that employer employee relation includes employees employed through contractor. The definition excludes certain categories of employment from the definition. Coir board-v- Indiradevi (2000)1 SCC 224 State of U.P-v-Jai Bir Singh (2005)5SCC1 a constitutional bench decision. Now it has been referred to 9 judge bench
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Definition of Workman-Section 2(s)

Workman means any person (including an apprentice) employed in any industry to do any manual, unskilled, skilled, Technical, Operational, clerical or supervisory work for hire or reward, whether the terms of employment be express or implied It includes any such person who has been discharged , dismissed or retrenched whose discharge ,dismissal, retrenchment has led to the ID It excludes persons subject to defense forces, police force and prison service It excludes persons who are mainly employed in managerial or Administrative capacity It excludes supervisory staff whose salary is more than RS.10,000=00 per month
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 The definition does not differentiate between permanent, temporary etc workers Conflicting judicial decisions as to the interpretation of the definition Burmah shell storage Distribution Co; of India ltd-v-Management staff association(1970)2LLj590 May and Baker(I) ltd-v-Workmen(1961)2LLJ94 Sundarambal-v- Govt of Goa(1989)1LLJ61 The above three decisions gave literal interpretation as per the words used in the definition
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 S.K.Verma-v-Mahesh Chandra(1983)Lab.I.C1483 SC gave a beneficial interpretation to the definition by holding that if an employee employed in an Industry is not expressly excluded from the definition of workman then he is included in the definition. H.R.Adyanthaya-v-Sandoz(India)ltd (1995)1LLJ303 SC- Constitutional bench decision held that earlier trend of decisions are correct and over ruled S.K.Verma case
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 Muir Mills NTC ltd-v-Swayam prakash Srivastava (2007)1 SCC 491 The SC held that Professional regulated by any professional body is not a workman though employed In the above case the respondent was appointed as a legal assistant in the appellant co; and he use to do the jobs like prepare replies to the claims made against the appellant co; preparing affidavits, doing the job of an enquiry officer etc;
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 The SC also reasoned that the respondent has not been performing stereotype job. His job had creativity. He not only used to render legal opinions on a subject but also used to draft pleadings on behalf of the appellant as also represent it before various courts/ authorities. He would also discharge quasijudicial functions.

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 Distinction between workman and independent contractor Workman does the work by himself where as an independent contractor gets the work done by others Workman is subject to supervision and control of the employer where as independent contractor is not Workman is hired by the employer and can be terminated. In case of contractor there is a contract.
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Hussainbai-v- Alath Factory union AIR1978 SC 1410 The workers employed under a contractor The work was done for the principal employer The work was carried at the principal employers premises The raw materials were supplied by the principal employer The workers raised a dispute that they are the workmen of the principal employer The I.T adjudicated that the workmen are the employees of the principal employer The S.C up holds the decision of the tribunal and held that the contractor is a sham
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Industrial Dispute and individual dispute

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 labour of any person. The dispute has to be between plurality of workman and employer Individual workman cannot raise an industrial dispute
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 A trade union or a number of workmen must rise the dispute What number of workmen are required to rise an industrial dispute The SC has said that substantial number of workmen will have to rise the dispute The Sc has said that substantial number is not majority It must however be such number as to lead an inference that the dispute is one which affects the workmen as a class.
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 Any person used in the definition Workmen of Dimakuchi Tea estate-v- Dimakuchi Tea estate (1958)1LLJ500S.C The Court held that the word any person in the definition means a person in whose employment or non employment or terms of employment or conditions of labour the workmen as a class have a direct and substantial interest Whether such direct and substantial interest has been established in a particular case will depend on its facts and circumstances
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 Standard Vacuum refining co; of India ltd-vthe workmen (1960)2LLJ233SC this case labour was employed for cleaning and maintenance through contractor The regular employees raised a dispute for regularising the contract labour The regular workmen have direct and substantial interest in the contract workers The regular workers have class interest also.

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Individual dispute deemed as industrial dispute

1965 amendment to I.D ACT and insertion of 2A. Where any employer discharges, dismisses, retrenches or otherwise terminates the services of an individual workman, any dispute or difference between that workman and his employer.shall be deemed to be an industrial dispute notwithstanding that no other workman nor any union of workmen is a party to the dispute. This definition is not applicable to disputes short of termination
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Compulsory Adjudication Reference by the Appropriate Government Sec. 10(1) S. 2-A, 33-A

LC, IT, NT

Award Sec. 18(3) of ID Act

Publication of award

Conciliation (if successful Settlement) Sec. 18(3) of The I D act

INDUSTRIAL DISPUTES

Judicial review - Art. 226 or Art. 136

Voluntary Arbitration 10-A

Award 18(2) & 18(3)

Judicial review - Art. 226 or Art. 136

Collective Bargaining If successful settlement Sec. 18(1) of ID Act

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