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.
