Centre extends 'public utility' deadline for iron and steel industries

Days after the government extended the ‘public utility’ label for aluminium industries and bauxite mining, the Centre on Thursday also classified iron and steel as ‘public utility’ for the next six months.

A public utility service refers to an industry or service considered essential for the community’s well-being and functioning. These services are deemed so critical that disruptions or stoppages can extensively impact public life and cause hardship.

The Ministry of Labour & Employment issued a notification on Thursday invoking the Industrial Disputes Act, 1947, citing “public interest” and the need to maintain uninterrupted services in these “essential” sectors.

“The central government hereby declares the services engaged in the iron and steel industry to be a public utility service for the purposes of the said Act for a further period of six months with effect from February 17, 2024,” the notification said.

The decision to restrict workers’ ability to strike came a day before labour unions called for a nationwide strike on February 16.

Amarjeet Kaur, general secretary of All India Trade Union Congress, said that the extension is an attempt to deprive workers of their right to strike.

“The extension is in response to several organisations issuing strike notices. The current notice marks the beginning of a series of upcoming strikes. It reflects the government’s strategy to curtail worker’s rights,” Kaur said, adding, “Earlier, governments used to only give warnings, but this government wants to penalise workers.”

In all industries, trade unions are required to give notice of 15 days or more before commencing a strike. However, any strike on public utility services is prohibited.

Labour activists assert that this is not the first instance of such action being taken. These industries have been designated as public utilities since the pandemic.

However, according to mining industry experts, the decision is driven by the increasing global demand for iron and steel, crucial metals utilised in various applications such as automobiles, airplanes, packaging, and construction.

Industry insiders suggest that the move could provide some stability and predictability in production planning, potentially benefiting businesses in the short term.

The iron and steel industry in India is among the most important industries in the country. India surpassed Japan as the second-largest steel producer in January 2019.

India produced 118.20 million tonnes (mt) of crude steel in 2021.

Tata Steel, JSW Steel, and Steel Authority of India are among the major steel-producing companies in the country.

As of 2021–22, India’s total iron ore production was 253.97 mt, according to the Ministry of Mines.

Odisha, Chhattisgarh, Karnataka, Jharkhand, and Madhya Pradesh are the major producing states, accounting for nearly 99 per cent of the total production.