Government Order declaring auto spare units as ‘public utility service’ stayed

Under the provisions in the new order unions cannot go on strike without prior notice. Justice V Parthiban who stayed the GO said, “On consideration of the submissions made on behalf of the petitioner, this court is prima facie satisfied that the GO does not satisfy the requirement as provided under the Industrial Disputes Act, and this court is also satisfied that there is either no public emergency or public interest involved in the auto components manufacturing industry and hence the GO suffers from arbitrariness and non-application of mind.”

The Tamil Nadu Labour and Employment Department issued the notification on June 14 claiming that the Government was satisfied that public interest required that the auto components manufacturing industry be declared as a public utility service.

Justifying the GO, the state claimed that the objective of the move was to boost investor confidence, especially in the manufacturing sector in Tamil Nadu, and to ensure that managements do not declare a lockout in view of widespread protests bylabour unions.

Challenging the GO, Kovai Mavatta Pricol Thozhilalar Otrumai Sangam, a Coimbatore-based labour union, moved the high court. The association contended that by no stretch of imagination, auto components manufacturing industry could be brought within the ambit of ‘public utility service’ and hence the declaration under the GO was per se arbitrary, irrational and could not be countenancedin law.

The plea has been posted forfurther hearing to August 29.