People's Democracy

(Weekly Organ of the Communist Party of India (Marxist)


No. 08

February 20, 2005

DUJ Welcomes SC Ruling


THE Delhi Union of Journalists (DUJ) hailed the momentous Supreme Court judgment reiterating that prior permission of the government under the Industrial Disputes Act is mandatory before closing down an establishment of retrenching employees.


In a statement issued on February 16, the DUJ stated that the judgment assumes significance in the backdrop of growing incidences of closures and termination of permanent employees’ services in the “hire and fire” culture triggered by the so-called economic reforms and policy of liberalisation.

The tendency to treat the law with contempt has afflicted the newspaper industry more than other sectors. Hindustan Times provides the latest instance of an employer terminating overnight the services of nearly 400 employees without any intimation to the employees, what to talk of seeking government approval.


The apex court has underscored in the Oswal Agro case that even if union and management enter into an agreement to this effect, it will be invalid under Section 25- N & O of the ID Act and that 90 days prior notice is a necessary prerequisite.


The DUJ hoped that the import of the apex court’s ruling will dawn on the newspaper managements and they will desist from flouting the laws of the land brazenly. (INN)