Settlement of Industrial dispute

Procedure for settling industrial dispute

Industrial disputes are manifested in following forms:

“Industrial disputes are symptoms of industrial unrest in -the same way that boils are a symptom of a disordered body”(Patterson) .The following are the weapons used by Employees.

• Whenever industrial disputes arise, workers generally resort to one or more of the following weapons, namely, strike, boycott, picketing and gherao.

• Let us discuss them one by one. Primary strike Secondary or sympathy strike

Contd…

• 1) Strike. When workers collectively stop to work in an industry, it is known as strike. Strike can be defined according to the Industrial Disputes Act, 1947 as:

• "It means a cessation of work by a body of persons employed in an industry acting in combination; or a concerted refusal of any number of persons who are or have been so employed to continue to work or to accept employment; or a refusal under a common understanding of any number of such persons to continue to work or to accept employment".

Contd… There are two forms of Strike. They are:

Primary strike • i)Economic Strike:• Most of the strikes of workers are for more facilities and

increase in wage levels. In economic strike, the laborers demand increase in wages, travelling allowance, house rent allowance, dearness allowance and other facilities

ii)General Strike : It means a strike by members of all or most of the unions in a region or an industry. It may be a strike of all the workers in a particular region of industry to force demands common to all the workers. It may also be an extension of the sympathetic strike

Contd..

iii)Stay-in Strike:• In this case, workers do not absent themselves from

their place of work when they are on strike. They keep control over production facilities. But do not work. Such a strike is also known as 'pen down' or 'tool down' strike.

• secondary strike :

i)Sympathetic Strike :When workers of one unit or industry go on strike in sympathy with workers of another unit or industry who are already on strike, it is called a sympathetic strike.

Contd…ii)Boycott: The workers may decide to boycott the

company in two ways. Firstly by not using its products and secondly by making an appeal to the public in general.

iii)Picketing: When workers are dissuaded from work by stationing certain men at the factory gates, such a step is known as picketing. If picketing does not involve any violence, it is perfectly legal.

iv) Gherao: Gherao in Hindi means to surround. The workers may gherao the members of the management by blocking their exits and forcing them to stay inside their cabins

The management uses its own methods to counter the workers:

• Some of the weapons used by the management are: • 1. Employers' Association: The employers may form

their unions to collectively oppose the working class and put pressure on the trade unions.

• 2. Lock-out: An employer may close down the place of employment temporarily. Such a step is technically known as lock -out. It is the reverse of a strike and is a very powerful weapon in the hands of an employer to pressurize the workers to return to the place of work.

Contd..

• 3. Termination of Service. The employers may terminate the services of those workers who are on strike by blacklisting them. Their lists may be circulated to other employers so as to restrict their chances of getting employment with those employers.

Causes of Industrial Dispute

1. Economic Cause: Demand for increase in wages on account of increase in all-

India Consumer Price Index for Industrial Workers. Demand for higher gratuity and other retirement benefits. Demand for higher bonus. Demand for certain allowances such as: House rent allowance Medical allowance Night shift allowance Conveyance allowance Demand for paid holiday etc.

Contd..2. Political Causes : Various political parties control Trade

unions in India. In many cases, their leadership vests in the hands of persons who are more interested in achieving their political interests rather than the interests of the workers.

3. Personnel Causes : Personnel Causes: Sometimes, industrial disputes arise because of personnel problems like dismissal, retrenchment, layoff, transfer, promotion, etc.

4. Indiscipline: Industrial disputes also take place because of indiscipline and violence on the part of the workforce. The managements to curb indiscipline and violence resort to lock -outs .

Contd…

5. Misc. causes Workers' resistance to rationalisation introduction of new

machinery and change of place Non- recognition of trade union Rumours spread out by undesirable elements Working conditions and working methods Lack of proper communication Behaviour of supervisors Inter trade union Rivalry etc.

Machinery for settlement of Industrial disputes

►Works Committee:

• For promoting dialogue between the employer and the workmen and for securing and preserving amity

• The appropriate government may require the employer to set-up works committee for every industrial establishment employing 100 or more workmen

• Comprising equal representatives of management and workmen

• The main function is to endeavour to compose any difference of opinion in matters of common interest and thereby promote measures for securing and preserving amity and cordial relations between the employer and workmen

Contd..►Conciliation Officer:• The conciliation officer may be appointed by the

government for specified area or specified industries.

• Their main duty is to investigate and promote settlement of disputes by inviting the parties to come to a fair and amicable settlement.

• Conciliation proceedings are obligatory in case of disputes in public utility services

• Conciliation officer to normally submit report within 14 days of commencement of conciliation proceedings

• Duty of the conciliation officer is administrative and not judicial in nature

Contd…►Board of Conciliation:• Government may, as occasion arises, constitute a

board of conciliation with an independent person as chairman and equal representatives of the parties concerned as its members

• The board has to submit its report within two months of reference to it, or within such shorter periods as may be fixed by the government

• If the board fails to bring about settlement, a report is submitted to the government explaining full facts and reasons for the failure along with its findings.

CONTD…

►Court of Enquiry:• The government may constitute a court of enquiry

to enquire into any matter connected with an industrial dispute

• The court may consist of one or more independent persons

• It has to submit its report on the matters referred to it within six months from the commencement of its inquiry

• object is to enquire into and reveal the causes of an industrial dispute

CONTD.. Adjudication:• The Industrial Disputes Act provides for three-tier

system of adjudication of industrial disputes• The cases either may be referred by government to

court after the receipt of failure report from conciliation officer or directly by any party

• Labour courts and industrial tribunal may be constituted by the state government while national tribunal is constituted by the central government.

Contd…►Labor Court:Consist of 1 person only

> who is an independent person below 65yrs age

> is or has been the judge of high court

> has been a district judge for not less than 3 years

> has held any judicial office in india for not less than 7 years\

Duties of Labor Court are

> to hold adjudication proceedings expeditiously

> submit its award to the appropriate Govt as soon as practicable on the conclusion of proceedings.

Contd…Jurisdictions :

1) Legality of an order passed by an employer under the standing order,

2) Application and interpretation of standing orders,

3) Discharge or dismissal of workman,

4) Withdrawal of any customary concession or privilege,

5) Illegality or otherwise of a strike or lock-out, and

6) All matters (not specified for industrial court).

Contd..►Industrial Tribunals:Consists of one or more persons

> are or have been judge(s) of high court

> are or have been District judge(s) for a period not less than 3 yrs

> hold or have held the office of the chairman or any other member of the Labor Appellate Tribunal for a period not less than 2 years.

The govt may, if it thinks fit, also appoint two persons as assessors to advise the tribunal in the proceedings before it.

Contd…Jurisdiction :

1) All matters within jurisdiction of labour courts,

2) Wages,

3) Compensatory and other allowances,

4) Hours of work and rest intervals,

5) Leave with wages and holidays,

6) Bonus, Provident Fund and Gratuity,

7) Shift Working,

8) Classification of grades,

9) Rules of Disciplines, and

10) Retrenchment and closure of establishment.

Contd..►National Tribunal:The national tribunal shall be constituted by the

Central government (only) when undertakings in more than one state is affected by such industrial dispute and is of ‘national importance’.

Consists of on person only,

> who has been a judge of high court

> has held the office of the chairman or any other member of the Labor Appellate Tribunal for a period not less than 2 years.

The govt may, if it thinks fit, also appoint two persons as assessors to advise the tribunal in the proceedings before it.