THE INDUSTRIAL DISPUTES ACT [STANDING ORDERS], 1947.

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Industrial Relation issues

Definition

Salient Features of the Act:

1. Any industrial dispute may be referred to industrial tribunal where generally

both parties to such dispute agree with each other.

2. Am award shall be binding on both parties to the dispute for a specified

period not exceeding one year. It is enforced by government ( Award :
judgment of Court)

3. Strikes and lock outs are prohibited

a. During pendency of conciliation and adjudication proceedings (pending

compromise, final decision procedure)

b. During pendency of settlement during the course of conciliation

proceedings. (strike is weapon of trade unions, loc out is weapon of
management)

c. During pendency of awards of Industrial Tribunal

4. During emergency appropriate government declares the following industries

to be public utility services for a maximum period of six months.

a. Transport of passengers or goods by land water or air

b. Coal
c. Cotton textile
d. Food stuffs
e. Iron and steel
5. In case of layoff or retrenchment of workmen employer is required to pay
compensation to them (retrench : remove excess people permanently )

6. Provision has also been made for payment of compensation to workmen in

case of transfer or closure of an undertaking

7. Authorities under the Act :-

a. Works Committee
b. Conciliation Officer
c. Board of Conciliation
d. Court of Inquiry
e. Labour Court
f. Industrial Tribunal
g. National Tribunal
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The above authorities have the responsibilities for the settlement of dispute in a
peaceful manner in order to maintain Industrial harmony.

Definitions

1. INDUSTRY (u/s 2(j)

Industry means any systematic activity carried on cooperation between an

employer and his workmen (whether employed directly or through a
contractor) for production or supply or distribution of goods or services with a
view to satisfying human wants or wishes (not merely spiritual or religious in
nature) whether or not

a. Any capital has been invested for the purpose of carrying on such
activities

b. Such activity is carried out with a motive to make any gain or profit and
includes to make any gain or profit and includes

i. Any activity of Dock Labour Board established under Dock Workers

Act 1948

ii. Any activity relating to promotion of sale or business carried on by an

establishment

c. But does not include :

i.
Any agricultural operation
ii.
Hospitals or dispensaries
iii.
Educational scientific research or training institutions
iv.Institutions engaging any charitable or social services institutions
v.Khadi or village industries
vi.Defense research, atomic energy and space owned by the government
vii.Any domestic service: domestic servant
viii.
Any activity being a profession practiced by an individual if number of
persons employed is less than 10
ix. Any activity carried on by co-operative society or clerk where number
of individuals engaged is less than 10.
2. INDUSTRIAL DISPUTE :- (u/s 2(k)

Industrial Dispute means any dispute or difference between employers and

employers or employers and workmen or between workmen and workmen
which is connected with employment or non-employment or terms of
employment of conditions of labour or any person.

The definition may be analyzed in three parts :

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1. There must be a dispute or difference

2. The dispute must be between:

a. employers - employers or
b. employers – workmen or
c. workmen – workmen
3. The dispute must be connected with :

a. The employment or
b. Non-employment or
c. Terms of employment or
d. With the conditions of labour any person

Whether an individual dispute can become Industrial Dispute? Why?

Industrial dispute can become Industrial Dispute (u/s 2A) till provisions of S. 2
were inserted in the Act, it has been held by the Supreme Court that an
individual dispute is not Industrial Dispute.

But it can develop into an Industrial Dispute when it is taken up by union or

substantial number of workmen. There should be a community of interest.

Machinery for the settlement of dispute

or
Authorities under the Industrial Dispute Act, 1947
1. Works Committee : Section 3 provides that

1. In an establishment where 100 or more workmen are employed the

appropriate government may constitute works committee (Works
Committee) as described. The number of representatives of workmen and
the employer must be same. Such representatives of workmen are
selected from workmen in consultation with trade union, if any.

2. It is the duty of Works Committee to preserve amity and good relation

between employer and workmen to comment (discuss) upon matters of
common interest and to find out an amicable solution (peaceful) towards
the same. The main task of the Works Committee is to reduce friction
between management and workmen in day to day work. The Works
Committee does not supersede trade union for collective bargaining. They
are not entitled to consider substantial changes in the conditions of
service.
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3. The recommendations of the Works Committee carry great weight but are
not conclusive (non-mandatory).

4. The members of the Works Committee shall be so fixed to represent

various categories groups or class of workmen engaged therein, but the
total number shall not exceed 20.

5. The representatives of employer shall be nominated by employer and

shall be officials who are associated with working of the establishment.

6. The workmen’s representatives shall be elected in tow groups.

a. Thos elected by workmen who are not members of registered trade

unions.

b. Those elected by workmen who are members of registered trade

unions.

The function of the Works Committee is to promote good will and harmony
between employers and workmen and to look after welfare of workers, deal
with matters relating to safety, occasional training, apprenticeship,
recreational facilities, commenting upon matters of common interest and to
reduce material difference of opinion. The recommendations of the Works
Committee are not binding.

It may be noted that Works Committee cannot decide and pass final
judgment. It has to promote harmonious and friendly relations between
employer and workmen.