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Industrial Relations Case Study

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Trade unions exist to represent workers – to negotiate with employers on their members behalf about pay and conditions. Industrial action is a mechanism used to put pressure on employers to resolve grievances. This action can take the form of a strike which is a withdrawal of labour.
A tort is defined as a civil wrong for which financial compensation can be claimed. The industrial torts include:-
• Conspiracy
• Intimidation
• Inducing a breach of contract (indirect interference with the performance of a contract
• Interference with trade or business by unlawful means.
When the trade unions organize industrial action it interferes with the employees’ performance of their contract, thus causing a breach of contract.
In Taff Vale Railway …show more content…
This is seen in the case Torquay Hotel Co Ltd v Cousins where Lord Denning invented the new tort for interference with a contract as he was unable to establish a breach of contract. Torquay Hotel Co Ltd had a contract for the supply of oil from Esso Petroleum Co Ltd. It contained a force majeure clause. The Transport and General Workers Union went on strike and blocked that supply. There was therefore no breach of contract by the Esso for failing to deliver. Torquary Hotel nevertheless sued the union, of which Mr. Frank Cousins was the general secretary. The House of Lords has subsequently rejected the existence of a separate tort for interference with a contract which can be constituted without unlawful actions or without a contractual …show more content…
Lord Diplock explained, ‘section 17 of E.A. 1980 defines secondary action in such a way as to remove statutory immunity from a sub-species of the species of tort referred to in section 13 (1) of T.U.L.R.A. 1974’. He further explained that ‘the trade union officials " worked through " the employees of the tug owner, causing them to break their contracts of employment in order to immobilize the plaintiff's ships and thereby interfere with the plaintiff's commercial contract with the charterers. A union persuaded an employee of a tugboat operator not to provide tugboat services to a ship, so that the union induced that employee to break his contract with his employer tugboat operator, causing that tugboat operator to break its contract with the charterer of the ship. As result the ship's departure was delayed and owner of the ship lost income otherwise payable by the ship charterer which the ship owner successfully recovered against the

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