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Lok Sabha passes bill that forbids strikes, layoffs in units engaged in essential defence services

All offences punishable under the bill will be cognisable and non-bailable

Defence Minister Rajnath Singh during the 5th Defence Ministers dialogue between India and Singapore | Twitter/PIB Defence Minister Rajnath Singh | Twitter/PIB

Amidst fear of an indefinite strike by defence civilian employees against the Union government's decision to restructure the Ordnance Factory Board (OFB) into seven corporate entities, Lok Sabha, on Tuesday, passed the Essential Defence Services Bill, which prohibits strikes, lockouts, and layoffs in units engaged in essential defence services.

In June, the Union cabinet approved the plan to corporatise 41 Ordnance Factories into fully government-owned corporate entities, based on their production type. It would mean that the Ordnance Factory Board, established by the British in 1775, will cease to exist.

The three main recognised federations of defence civilian employees, which represents close to 80,000 employees, have threatened to go on strike against government's decision. Employees' union of Ordnance Factories has been opposing the move, fearing privatisation of factories.

According to the Essential Defence Services Bill, essential defence services include any service in any establishment or undertaking that deal with production of goods or equipment required for defence related purposes, and  any establishment of the armed forces or connected with them or defence. 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, and repair or maintenance of products connected with defence.

The bill empowers the Centre to prohibit strikes, lockouts, and layoffs in units engaged in essential defence services.  Employers violating the prohibition order through illegal lockouts or layoffs will be punished with upto one year imprisonment or Rs 10,000 fine, or both. Employees involved in strikes will be liable to disciplinary action, including dismissal as per the terms and conditions of his/her 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 bill will be cognisable and non-bailable.

After the Union cabinet decision to corporatise OFB, federation of defence employees wrote to Defence Minister Rajnath Singh and secretary, defence production (DP), Raj Kumar protesting against the “arbitrary, one sided and biased decision” in violation of all the previous written agreements and assurances, and demanded its withdrawal.

OFB employees union had threatened strike last year as well, but had to defer it due to tension along the border with China.

According to a defence official, the corporatisation move would allow the companies to have better autonomy and help improve accountability and efficiency. Authorities believe that the restructuring is aimed at transforming ordnance factories into productive and profitable assets, deepening specialisation in the product range, enhancing competitiveness and improving quality and cost-efficiency.

Defence officials maintained that the functioning of OFB has come in for study by various high-level committees over the last two decades with the objective to improve their functioning and making these factories as vehicles of self-reliance for defence preparedness of the armed forces. While taking this decision, the government has ensured that the service conditions of the existing central government employees of OFB are protected.

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