Essential Defence Services Bill

Context: Recently, the Minister of State for Defence had introduced the Essential Defence Services Bill in the Lok Sabha.

• It seeks to replace the ordinance issued in June 2021 and prohibits any agitation and strike by anyone engaged in the essential defence services.

About Essential Defence Services Bill

• It is aimed at preventing the staff of the government-owned ordnance factories from going on a strike.
• It is meant to provide for the maintenance of essential defence services so as to secure the security of nation and the life and property of public at large and for matters connected therewith or incidental thereto.
• It noted that since it is essential that an uninterrupted supply of ordnance items to the armed forces be maintained for the defence preparedness of the country and the ordnance factories continue to function without any disruptions.
• It also includes services that, if ceased, would affect the safety of the establishment engaged in such services or its employees.

In addition, the government may declare any service as an essential defence service if its cessation would affect the

• Production of defence equipment or goods.
• Operation or maintenance of industrial establishments or units engaged in such production.
• Repair or maintenance of products connected with defence.
• It also prohibits strike and lockouts in “any industrial establishment or unit engaged in essential defence services”.

Strikes

The bill defines strikes as cessation of work by a body of persons acting together. It includes: 

• Mass casual leave.
• Coordinated refusal of any number of persons to continue to work or accept employment.
• Refusal to work overtime, where such work is necessary for the maintenance of essential defence services.
• Any other conduct which results in, or is likely to result in, disruption of work in essential defence services.

Prohibition on Strikes, Lock-outs and Lay-offs

• The central government may prohibit strikes, lock-outs, and lay-offs in units engaged in essential defence services. 

The government may issue such order if necessary in the interest of:

• Sovereignty and integrity of India
• Security of any state
• Public order
• Public
• Decency
• Morality

The prohibition order will remain in force for six months and may be extended by six months.

• Strikes and lock-outs that are declared after the issue of the prohibition order, or had commenced before the prohibition order was issued will be illegal. 
• The prohibition will not apply to lay-offs made due to power shortage or natural calamity, or lay-offs of temporary or casual workmen.

Punishments

• For illegal lock-outs and lay-offs: Employers violating the prohibition order through illegal lock-outs or lay-offs will be punished with up to one-year imprisonment or Rs 10,000 fine or both.
• For illegal strikes: Persons commencing or participating in illegal strikes will be punished with up to one-year imprisonment or Rs. 10,000 fine or both. 
• Persons instigating, inciting or taking actions to continue illegal strikes, or knowingly supplying money for such purposes, will be punished with up to two years imprisonment or Rs. 15,000 fine, or both. 
• Further, such an employee will be liable to disciplinary action including dismissal as per the terms and conditions of his service. In such cases, the concerned authority is allowed to dismiss or remove the employee without any inquiry, if it is not reasonably practicable to hold such inquiry.
• All offences punishable under the Ordinance will be cognisable and non-bailable.

Public Utility Service

• The bill amends the Industrial Disputes Act, 1947 to include essential defence services under public utility services.

Under the Act, in the case of public utility services, a six-week notice must be given before:

• Persons employed in such services go on strike in breach of contract.
• Employers carrying on such services do lock-outs.

Implications 

• It has a direct bearing on around 70,000 employees of the 41 ordnance factories around the country, who are unhappy with the corporatisation of the Ordnance Factory Board (OFB), fearing that it will impact their service and retirement conditions.
• The employee unions and associations had threatened to go on strike in 2020 as well when the government had declared that it will start the process towards OFB corporatization.