Does Closing a Packaging Section Violate Service Conditions Under Sec.33(1) of the Industrial Dispute Act 1947?

The establishment employed 20 workmen, and their demand for better service conditions was pending before the Industrial Tribunal. The packaging section of the production department was closed by paying closure compensation to the concerned. Will the action amount to a change in service conditions within the meaning of Sec.33(1) of the Industrial Dispute Act 1947? Support of citation would be appreciated.

Regards.

Read more at: https://www.lawyersclubindia.com/exp...ons-740061.asp

Closure of a particular department/section of an industrial establishment results in the retrenchment of the workmen employed therein. Retrenchment is one of the conditions of employment. Therefore, when a dispute for the betterment of the existing working conditions of the industrial establishment is pending adjudication before an Industrial Tribunal, certainly such retrenchment will attract the provisions of Section 33 of the Industrial Disputes Act, 1947.

However, if the retrenchment is a consequence of an agreement/settlement with all the workmen of the particular section/department, the provisions of Section 33 will not be applicable.

Regards, Jagdish