Chapter 7- Industrial Conflict and Disputes

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 Lockout

Section 2( 1) of the Industrial Disputes Act, 1947 defines a lock-out as

“the temporary closing of a place of employment or the suspension of
work, or the refusal by an employer to continue to employ any
number of persons employed by him”.

Lock-out is a weapon in the hands of the employer to coerce labour to

come down in their demands.

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The Departments of Labour in
the States and Union Territories
and Regional Labour
Commissioners (Central) are
responsible for collecting basic
information in respect of work-
stoppages from the affected
primary units
Records of Conflicts
Such information is furnished
in standard format to the
Labour Bureau, Ministry of
Labour & Employment, on or
before the 25th of each
succeeding month.
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• These include information in
respect of those temporary
work-stoppages only which
include strikes, lock-outs and
gheraos followed by lockouts,
and involving 10 or more
workers.
• Work-stoppages which involve
less than 10 workers are not
included in such records.
Political strikes, sympathetic
demonstrations, etc. are also
not included.
 Effect Of Industrial Disputes

On workers On employers On stakeholders & economy

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When the strike is illegal or
unjustified, the concerned
workmen would not be
entitled to strike wages.
Effect Of Industrial Disputes
On workers
Facing the wrath of the
Workers also suffer from
employer in the form of
physical injuries in case there
victimisation is another risk
are incidents of violence
that workers may be
during the industrial dispute.
exposed to.
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 Effect Of Industrial Disputes

On Employers

The average cost of production

Stoppage of work, which, in
goes on increasing during any It also results in a fall in sales,
turn, affects production
work-stoppage due to fixed leading to a fall in profits.
adversely.
expenses that continue

Additional expenses on the

Loss of goodwill of the
safety and security of the Also affects delivery
employer and psychological
factory premises during the commitments.
distress
period of unrest.

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 Effect Of Industrial Disputes

On other Stakeholders & Economy

Prolonged industrial disputes

Customers of the affected
also lead to wastage of
commodity also face The business of the suppliers
national resources and thus
inconveniences due to limited to the affected firm would
have an adverse effect on
supply of the commodity in also suffer.
national productivity and
the market.
national income.

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 Practice Questions

The effect of an Industrial dispute can be seen on_________.

1. Workers
2. Employers
3. Economy
4. All of the above

Ans: Option 4

Lockout is defined under Section____ of The Industrial Disputes Act, 1947.

1. 2(1)
2. 2(2)
3. 2(3)
4. 2(4)

Ans: Option 1

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 Practice Questions

In a ___________, no public or private activity can take place on that particular day.

1. Secondary strike
2. Bandh
3. Gherao
4. Token strike

Ans: Option 2

Lockout is the weapon in hands of _____________to coerce the demands of workers.

1. Trade Unions
2. Employer
3. Government
4. None of the above

Ans: Option 2

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THANK YOU

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