Essential Defence Services Bill, 2021

In News

Recently, the Union Defence Minister has introduced ‘The Essential Defence Services Bill, 2021’ in Lok Sabha.

Objectives and Need

• It aims to empower the Central government to regulate the uninterrupted supply of arms, ammunition and other goods and services to the Armed Forces in case of a strike against a decision to corporatise the Ordnance Factories and prescribes disciplinary action, including dismissal, against employees participating in the strike. 

• Around 70,000 people work with the 41 ordnance factories around the country.

• It aims to improve autonomy, accountability and efficiency in ordnance supplies.
• It is meant to provide for the maintenance of essential defence services to secure the security of the nation and the life and property of the public at large.

Key Features of the Bill

• Essential Defence Services
  • These include any service in 
    • Any establishment or undertaking dealing with the production of goods or equipment required for defence-related purposes.
    • Any establishment of the armed forces or connected with them or defence. 
  • These also include 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.

• 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.

Source: IE