Difference Between Strike And Lockout

In the workplace, disputes are very common, but some situations can lead to major disputes where employees stop working or shut down the company's operations. These actions taken by workers are commonly known as strikes and lockouts. Strikes and Lockouts are very complex and dynamic actions with significant outcomes for workers and businesses. These are the last options for employees when the management refuses their demands to agree to their demands.

A strike happens when workers collectively decide to stop working. On the other hand, the Lockout is initiated by employers to manage negotiations with the workers by closing the workplace at a temperature that is too low. There's a very huge difference between strike and Lockout and their outcomes. However, many people are not aware of the key difference between them. Don't worry! In this article, we will deep dive into the concept of strike and Lockout, its key differences, and the laws around it.

By the end of this article, you'll know exactly about the strikes and lockouts, their importance, and their key differences.

What Is Strike?

A strike is an industrial action where a group of workers stop working to protest against something like low wages or unfair treatment or to achieve a specific objective such as high wages, better working, etc. It's a pivotal instruction that employees use to pressure management to meet certain requirements. The strike is the last option for workers after the negotiations between the workers and management fail. The strike is peaceful or violent, which can lead to a single day, weeks, or several months. However, the strike also has various disruptions and challenges for workers and employers.

Types Of Strike

There are different types of strikes that can happen via a group of workers. Here are some common types of strikes:

Hunger Strike: One of the most common strikes is a hunger strike. A group of workers refuse to eat to protest against the management; it's a non-violent form of protest to fulfil their requirements.

Sit-down Strike: In this strike, a group of workers chose to stay at their workplace and stopped working without going anywhere until the demand was fulfilled.

Economic Strike: This strike happens especially for money like low wages, bonuses, work hours, or unfair treatment. Where a group of workers stopped working until the demand was met.

Recognition Strike: This type of strike happens when employers want to pressure the management on the value of the workers and deal with them.

Sympathy Strike: When a group of workers joins the strike initiated by another union to support them, it's a sympathy strike.

Wildcat Strike: When the labour union does not support the strike, it's an unauthorized strike, also known as wildcat.

Go-slow Strike: Workers start working slowly in this form of strike, which is usually a miscount rather than a strike.

Legal Status Of Strike In Labour Law

When it comes to strikes then, these are not always legal; there are certain rules and regulations to follow when workers go on strikes. Here's the complete breakdown of the legal aspects:

• Section 22 of the Industrial Disputes (ID) Act: Strikes are mostly illegal in Public Utility Services (like electricity, water supply, and healthcare) without proper notice. 

• Section 23 of the ID Act: This section generally means strikes are prohibited in any industry establishment unless specific conditions are met.

• Section 24(3): Workers going on strike in response to an illegal lockout won't be considered illegal.

• Section 20(1): There are some circumstances where strikes can be legal, including if workers give a proper strike notice and follow the procedure, i.e., 14 days before 6 weeks.

• Other Legal Strike Situations: If workers send a new strike notice after a failed negotiation and wait for a 14-day cooling-off period, they can proceed with a legal strike.

• Non-public Utility Services: In some industries that are not public, the rules are simple, and workers can strike without prior notice unless the dispute has already been negotiated.

• General Prohibition in Section 23: These strikes only apply when a contract between workers and employees is violated.

Overall, strikes are subjected to rules, especially in public utility services, but following a legal procedure can lead to legal strikes.

What Is Lockout?

Lockout happens when employers close down the company’s operations or factory machines to stop the workers until the situation is handled or the issues are resolved completely. This usually happens when there's an ongoing dispute between the employer and the workers. It may result in loss to both parties, especially the companies, and factors that can lead to permanent shutdown. In the lockout period, the employer refuses to pay the workers and temporarily closes the workplace until the workers agree upon the demands of the management.

Legal Status Of Lockout

A lockout happens when an employer shuts down a workplace on a temporary basis to stop employees from working. However, legal rules need to be followed when considering a lockout. Here's all you need to know:

Illegal Lockouts: A Lockout Can Be Considered Illegal If:

• Violation of Section 10(3) and Section 10A (4A): If an employer declares the Lockout during the dispute with the workers when there's still more to discuss, it's illegal to Lockout in-between the dispute.

• Not Following Sections 22 and 22: An employer must give notice to the workers before starting a lockout. If there's no legal notice provided to the worker, then the Lockout is considered illegal, as stated in Section 24(1). With the help of this notice, workers can prepare for the employer's decision.

Legal Lockouts: A Lockout Can Be Considered Legal In Certain Cases:

• Response to an Illegal Strike: If workers go on an illegal strike, employers have the option to start a lockout legally, as per Section 24(3). This helps employers manage situations when workers go outside the law.

A legal lockout is one of the strongest tools for employers, as it allows them to protect their business during conflicts with workers. As per the Trade Dispute Act of 1929, a lockout happens due to a dispute and aims to convince workers on certain working terms.

Key Differences Between Strike And Lock-Out

General Restriction On Strike And Lockout (Section 23)

The general rule applies to strike and Lockout i.e., Workers can't go on strike if it goes against their work contract, and employers can't go on Lockout without a valid reason.

Illegal Strikes And Lockouts (Section 24)

As per the Section 24(1), a strike or Lockout is considered illegal if:

• No Financial Support for Illegal Actions (Section 25): It's illegal for anyone who gives money to support strikes or lockouts.

Penalties For Illegal Strikes Or Lockouts (Sections 26-31)

Section 26 outlines the penalties for both strike and Lockout. However, before anyone is punished, it must be proven that strike or Lockout was illegal. Here are some cases:

• In the case of Madurantakam Co-op Sugar Mills vs. Viswanathan (2005), some workers are accused of being part of an illegal strike. All those workers who apologized received a warning, but others who were part of the illegal strike were fired. The court said that not all the workers should be treated the same way.

• In General Labour Union (Red Flag) vs. B. V. Chavan (1984), the Supreme Court said that if a lockout is found illegal, it's unfair to workers.

• In Sri Ramchandra Spinning Mills vs. State of Madras, the court said that if a workplace closes due to a flood or fire, it's a sensible lockout, making the employer responsible for penalties.

Penalties For Instigation (Section 27)

If someone encourages others to join illegal strikes or lockouts then there's a six-month imprisonment and a fine of up to one thousand rupees as penalty.

Penalties For Providing Financial Aid To Illegal Strike And Lockout (Section 28)

If someone gives money to support an illegal strike or Lockout, it leads to jail time and a heavy fine.

Penalties For Other Offences (Section 31)

• In the Bharat Petroleum Corporation Ltd. vs. Petroleum Employees Union (2003) case, the court said that everyone involved in a contract must follow the rules during the negotiations. And a strike in the ongoing discussion was illegal.

• The Supreme Court in India General Navigation and Railway Company Ltd vs. Their Workmen (1960) said that all the workers in illegal strikes aren't paid and could be dismissed.

Conclusion

Overall, strikes and Lockout are the most powerful workplace tools. Each has its purpose, where the workers use the strike to raise awareness and protest against unfair treatment. On the other hand, a lockout is a tool employers can use to pressure workers to conceive of their conditions. It's very important to know the key difference between the strike and Lockout and their role during the disputes in the workplace. We hope this guide will help you know everything about strikes and lockouts, including their legal status, pros and cons, and key differences.

About The Author:

Adv. Kishan Dutt Kalaskar brings a wealth of expertise to the legal field, with an impressive 39-year career in legal services, complemented by 20 years as a judge in various capacities. Over the years, he has meticulously read, analyzed, and prepared Head Notes for more than 10,000 judgments from High Courts and the Supreme Court, many of which have been published by renowned law publishers. Advocate Kalaskar’s specialization spans across multiple areas of law, including Family Law, Divorce, Civil Matters, Cheque Bounce, and Quashing, marking him as a distinguished figure known for his deep legal insights and contributions to the field.