The Ministry of Labour and Employment has declared that industries engaged in foodstuffs will continue to be treated as “Public Utility Services” under the Industrial Disputes Act, 1947 for an additional period of six months, starting from July 1, 2025.
This move, notified under S.O. 2953(E), reinforces an earlier decision taken in December 2024 to safeguard public interest and ensure uninterrupted food supply services across the country.
🔑 Key Details of the Notification:
- What’s Declared:
Industries engaged in foodstuffs as covered under Item 6 of the First Schedule to the Industrial Disputes Act, 1947. - Legal Basis:
The declaration is made under Section 2(n)(vi) of the Industrial Disputes Act, which empowers the government to extend public utility service status when public interest is at stake. - Effective Duration:
This status is valid for six months from July 1, 2025 till Jan 1, 2026 - Background:
A similar notification (S.O. 5361(E)) was issued on December 11, 2024, for an initial six-month period that is now being extended.
⚖️ What Does “Public Utility Service” Mean?
Designation as a public utility service imposes stricter conditions on strikes and lockouts, requiring prior notice and facilitating faster dispute resolution. The objective is to prevent disruptions in essential services that could adversely affect public life or national interest.
🍽️ Why the Food Sector?
The foodstuff industry plays a critical role in ensuring food security, particularly during periods of market volatility, supply chain disruption, or inflation. The government’s action reflects a preventive approach to avoid potential industrial disputes that could impact food availability or affordability.
🗣️ What’s Next?
Stakeholders in the foodstuff industry—manufacturers, workers, unions, and employers—must adhere to special industrial relations procedures under this declaration. Any strike or lockout now requires prior notice, ensuring continuity in food production and distribution.
