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Industrial Disputes

Suraj

karol Shruti Gupta Tanya Verma Deepshikha Verma

Deepak

Verma Kuldeep Singh Nivedita Thakur Esha Sharma Vaibhav Sharma

MEANING

AND CAUSES OF INDUSTRIAL

DISPUTES FORMS AND IMPACT METHODS OF PREVENTION METHODS OF SETTLEMENT LEGISLATIVE AND OTHER MEASURES INDUSTRIAL DISPUTES IN INDIA AFTER INDEPENDENCE EXISTING METHOD OF SETTLEMENT AND PREVENTION IN INDIA

Industrial

Dispute means any dispute or differences between employers and employers or between employers and workmen or between workmen and workmen which is connected with the employment or nonemployment or the terms of employment or with the conditions of labour of any person

Economic Causes
Non Economic Causes

:Wages and allowances


: Bonus : Over Time Payment

:High Industrial Profits

Working

Conditions and Working Hours Modernization and Automation of Plant and Machinery Personnel Causes Political Causes
; Leave : Demand for better working condition : Failure to Recognise Unions

Punishment

to Workers Mass Retrenchment & Undue promotion

FORMS OF INDUSTRIAL DISPUTES

The industrial disputes are of many forms which are as follows: STRIKE GHERAO PICKETING LOCKOUT The outcome of industrial disputes is locking out from the side of the employer and the workers may resort to strike, gherao, picketing, etc.`

STRIKE
Strike is quitting work by a group of workers for getting their demands accepted by the employer. It is a powerful tool used by trade unions to pressurize the management to accept their demands. Strikes can be further of many types: Sit down strike Slow down strike Hunger strike Economic strike General strike

GHERAO
Gherao is the action taken by the workers under which they resist the employer to leave the work premises or residence. The person concerned is put away in a ring made of human beings i.e. workers. Gheraos are also being adopted by educational and other institutions

picketing
In picketing, workers carry display signs, banners and play cards and prevent others from entering the place of work and persuade others to join the strike. This is also done to draw public attention to a cause. Picketers normally endeavor to be non-violent. It is generally done in order to put pressure on the management to meet certain demands.

LOCK- OUT
Lock-out is the step taken by the employer to put pressure on workers. Employer close down the workplace until the workers agree to continue the work on the terms and conditions as given by the employer.

Lock-out, thus, is the counterpart of strike- the corresponding weapon in the hands of the employer to resist the collective demands of workmen or to enforce his terms.

IMPACT OF INDUSTRIAL DISPUTES


Industrial disputes always have a negative impact both on the industry and the nation as a whole.

Whenever there is a dispute in the industrial sector, it costs dearly to the nation as a whole and to the parties which are involved in the dispute in particular.
Industrial disputes disrupts the economy of the country and create social problem for the society in the form of law and order problem.

The production gets hampered and the produce is not of appropriate quality and quantity. According to PIGOU, the industrial disputes harm the national dividend in two ways: Lessens the demand of goods which other companies produce and which are used as a raw material by the industry in which the stoppage has occurred. Lessens the supply of raw material or equipment for the production for the industries which depend on the injured industry for the supply of raw material for their production

All this directly injures the national dividend by the reactions they set up in other industries in addition to the direct injury that they carry to themselves.

26-15

Machinery for Prevention and Settlement of Industrial Disputes


Machinery for prevention and settlement of disputes

Voluntary Methods
Collective Bargaining Trade Unions Joint consultations Standing Orders Grievance Procedure Code of Discipline

Government Machinery Labour Administration Machinery


State Level Central Level

Statutory Measures
Works Committees Conciliation

State Acts

Industrial Disputes Act, 1947

(A) (B)

C.Officer C. Board

Arbitration Adjudication

(a) (b) (c)

Labour Courts Industrial Tribunals National Tribunals

Industrial Relations And Industrial Disputes

What is Collective Bargaining?

Collective bargaining is a type of negotiation used by employees to work with their employers. During a collective bargaining period, workers' representatives approach the employer and attempt to negotiate a contract which both sides can agree with. Typical issues covered in a labor contract are hours, wages, benefits, working conditions, and the rules of the workplace. Once both sides have reached a contract that they find agreeable, it is signed and kept in place for a set period of time, most commonly three years. The final contract is called a collective bargaining agreement, to reflect the fact that it is the result of a collective bargaining effort. The parties often refer to the result of negotiation as a Collective Bargaining Agreement (CBA) / as a Collective Employment Agreement (CEA).

a)

b)

c)

Presentation in a collective manner, to the employer, their demands and grievances by the employees; Discussions and negotiations on the basis of mutual give and take for settling thegrievances and fulfilling the demands; Signing of a formal agreement or an informal understanding when negotiations result in mutual satisfaction; and

a)

In the event of failure of negotiations, a likely resort to strike or lock-out to force the recalcitrant party to come to terms.

When collective negotiations reach a deadlock, the parties themselves may call in third persons to help them settle their disputes. The role of this third person is to break the deadlock, to interpret the view point of one to the other, and thereby to help the parties arrive at an agreement.

According to G.D.H COLE , A trade union means an association of workers in one or more occupations-an association carried on mainly for the purpose of protecting and advancing the members economic interests in connection with their daily work.In India the trade union movement started after 1918..

Joint

consultation is usually done through joint management councils(JMC).The JMC normally consists of equal number of representatives of workers and employers looking after three things: information sharing, consultative and administrative matters relating to welfare, safety, training etc and the formulation of standing orders.

Standing orders: These are the rules and regulations which govern the conditions of employment of workers. The Industrial Employment (standing orders) Act of 1946 provides for the framing of standing orders in all industrial undertakings employing 100 or more workers.
Grievance procedure: A model grievance procedure as suggested by the Indian Labour Conference, 1958 has more or less been widely accepted in India now. Code of discipline: It consists of a set of selfimposed obligations voluntarily formulated by the central organization of workers and employers.

There

are a number of tripartite bodies which operate at central and state levels . The Indian Labour conference , wage boards and industrial committees operate at the central levels & state Labour advisory boards operate at the state levels

The central industrial relations machinery consists of the Chief labour commissioner , joint labour commissioner. Regional Labour commissioner .Assistant labour commissioner and Labour enforcement officers . Important functions of this machinery are: Prevention , investigation & settlement of industrial disputes. Enforcement of awards ,settlement & other labor laws. Fixation & revision of minimum wages. Promotion of statutory & non statutory welfare measures. Collection of statistics with regard to disputes. Advice to central ministry of labor in regard to labor problems.

Works committees: As per the Industrial Disputes Act, 1947, works committees have to be set up all those industrial units which employ 100 or more persons. It is basically a consultative body Giving greater participation to workers Ensuring close interaction between labour and management Generating cooperative atmosphere for negotiation between parties Opening the doors to unions to have a clear view of what is going on within the unit Strengthening the spirit of voluntary settlement of disputes

Adjudication: It is the process of settling disputes compulsorily through the intervention of a third party appointed by the Government. The Industrial Disputes Act provides a three-tier adjudication machinery consisting of: Labour court Industrial tribunal

National tribunal

Dispute settlement through third party intervention. It is an attempt to reconcile the views of the disputant and bring them to an agreement. It is a friendly intervention of a neutral person in a dispute to help the parties to settle their differences peacefully.

Independence and impartiality. Physically and psychologically fit. Honest,polite,patient . Responsible, clear headed and mature. Should have friendly personality. Well acquainted with the laws and regulations. Well trained. Ability and versatility to form judgements.

As a discussion leader. As a safety value. As a communication link. As an innovator. As a sounding board. As a protector. As a fail-safe device. As a stimulator. As an adviser. As a face saver. As a collective bargaining.

1)Advance report/notice of proposed strikes or lockouts have to be given to the conciliation authority. 2)Make preliminary contacts with the parties separately and: Give them information. Obtain information from them. Establish a relationship. 3)Scheduling,arranging and conducting meeting with parties.

1)The hard posture phase.

2)Search of accommodation.
3)Emergence of appropriate mood for settlement of compromise.

The report must indicate: 1)The steps taken by the conciliator to ascertain the facts and circumstances, 2)The steps taken to bring about the settlement. 3)Full statement of facts and circumstances. 4)The reason for which the settlement could not be reached.

A process in which a dispute is submitted to an impartial outsider who makes a decision which is usually a binding on both the parties. The parties submit their disputes and are bound by the award of an arbitrator.

1)Judicial approach 2)Non-judicial approach

1)

2) 3) 4)

5)

Workers and management have greater faith and confidence in a settlement machinery. More flexible. Less expensive. Helps building up a sound base for healthy industrial relations. Suitable and compelling.

Deprives

labour of its right to go on a strike. judgement is often arbitrary and ill-advised. biased against labour. Delay in arriving at the award and settlement of dispute. Too much arbitration is not a sign of healthy relationships

1)An industrial dispute exists or is apprehended in an establishment; 2)The employer and worker agree in writing to refer the dispute to arbitration. 3)Agreement is in prescribed form and signed by the parties to it. 4)The agreement must be accompanied by the consent of arbitrator. 5)Dispute must be referred to arbitration at any time before it has been referred to labour court or tribunal or a national tribunal.

An

understanding of the complexities of labour-management relationship. Knowledge of collective bargaining. Skills and experience, High integrity. Acceptable to the parties. Familiar with personnel policies,industrial discipline and human relations.

Hear both parties. Investigation of the facts and circumstances of the dispute.

PRINCIPLES FOLLOWED BY ARBITRATOR WHILE DEALING WITH A PARTICULAR DISPUTE: 1) Fair hearing 2) Natural justice 3) Party should be free to give any evidence. 4) impartial

Award

must be in line with the jurisdiction. Must be precise and definite. Should be capable of being enforced. Should contain a date or a specific period for implementation. Should not violate any provision of any existing law. Should contain sufficient justification.

State

intervention in the settlement of disputes started with the Trade dispute Act ,1929. The act vested in Govt. with powers, which could be used when it considered fit to intervene in Industrial Disputes. It provided for only adhoc conciliation boards and court of inquiry. The act was amended in 1938, which authorised the Central Govt. and Provisional Govt. to appoint conciliation officers of mediating in or promoting the settlements of disputes.

While this was the position in the country as a whole, a more purposeful intervention in Industrial Dispute was attempted in one of the industrial advanced provinces THE BOMBAY PRESIDENCY. The Bombay Trade Dispute Act,1934, introduced for the first time a standing machinery enable the state to promote industrial peace.

IMPORTANT PROVISIONS
Compulsory recognition of the unions by the employers. Giving the rights to the workers to get their case represented either through a representative union. Certification of standing orders which would define the conditions of the employment and make them known to the workers. The setting up of an industrial court with original as well as appellate jurisdiction. Prohibition of strike or lockout under certain conditions.

The Industrial Dispute Act providing machinery for the settlement of disputes through conciliation adjudication was passed. Under this Act, as strike or lock out under taken in public utility without 14 days notice or 6 weeks after such notice strike, and during the pendency of conciliation proceeding before a conciliation officer and 7 days after the conciliation proceedings was declared illegal. An Act to make provisions for the investigation and the settlement of industrial disputes and for certain other purposes

promote measures for securing and preserving amity and good relations between employees and the employers. To provide a suitable machinery for investigation and settlement of industrial disputes. To prevent illegal strikes and lockouts. To provide relief to workmen in matters of lay-offs, retrenchment, wrongful dismissals and victimization. To give the workmen the right of collective bargaining and promote conciliation.

A permanent machinery conciliation has been set up for the speedy and amicable settlement of industrial disputes. Compulsory arbitration in public utility services, including the enforcement of arbitration awards, has been recognized. Strikes and lockouts during the pendency of conciliation and arbitration proceedings and the arbitration awards, enforced by the Govt. order, are prohibited. Specific time limits for various stages of conciliation and arbitration, to eliminate delays are prescribed. An obligation on employers to recognize and deal with representative trade unions, has been imposed.

Works committee to provide machinery for mutual consultation between employers and employees have been set up. The Industrial Disputes may be referred to an Industrial Tribunal where both parties to any Industrial Dispute, apply for such reference or where the appropriate Government considers it expedient to do so.

REASON OF RISE OF INDUSTRIAL DISPUTE IN INDIA


Tall

promises made by INDIAN NATIONAL CONGRESS prior to regarding changes in wages and working conditions. Rise in inflationary pressure which affected the cost of living. Feeling of independence in minds of workers. Growing influence of communist over workers. Fear of retrenchment and unemployment. Misdirected leadership. Lack of experience on the part of employers in dealing with labor problems.

1947

INDUSTRIAL UNREST WAS AT PEAK IN ORDER TO BRING PEACE INDUSTRIAL DISPUTE ACT WAS INACTED AND INDUSTRIAL TRUE RESOLUTION WAS ADOPTED
1948-1950 DUE TO VARIOUS STEPS TAKEN BY GOVTMENT DISPUTES DECREASED

1955,1956,1957
PROVED FATAL TO INDUSTRIAL PEACE BECAUSE OF RATIONALIZATION PROCESS

SIXTIES
THE DECADE OF SIXTIES OPENED WITH AN INCREASING TREND OF INDUSTRIAL UNREST

1974

THIS YEAR IS CONSIDEREED TO BE MORE DISTURBED YEAR.IT ACCONTED FOR 2939 DISPUTES.

1975-1976( EMERGENCY PERIOD)


NUMBER OF WORK STOPPAGES DECREASED OVER THE YEARS BUT THE EMPLOYERS DID NOT HESITATE FROM DECLARING LOCKOUTS

POST EMERGENCY PERIOD


THERE WAS INCREASE IN STOPPAGES, MANDAYS LOST AND NUMBER OF WORKER INVOLVED. DETERIORATION IN THE SITUATION AND MAHARASTRA AND BENGAL WERE WORST EFFECTED. IT COULD BE EXPLAINED AS AN OUTBURST OF THE RIGOURS AND EXCESSES SUFFERED DURING EMERGENCY.

DECADE BETWEEN 1981-1990


MARKED SOME VERL LONG STRIKES ORGANIZED BY THE WORKERS. ON JANUARY 13,1982,THE LONGEST STRIKE IN TEXTILE INDUSTRY IN INDIA WAS ORGANIZED BY THE TEXTILE WORKERS OF BOMBAY UNDER THE LEADERSHIP OF LATE DR.DATTA SAMANT. 2.5 WORKERS OF TEXTILE MILLS WERE INVOLVED.

The economic scene marked a drastic changes in the year 1991 The process of economic reforms and structural adjustments programmes made their beginning The names like globalization and privatization became household names. In the beginning of the economic reforms the trade unions started resisting this process but it could not last long Many scholars will attribute, that the industrial peace has been maintained since 1991 is because of the economic reforms initiated from july 1991 onwards.

1.Voluntary 2.Statutory

Code of discipline(ILO 1958)


Consist of three principle Management and union agree Management agree Union agree

1.

2.
3.

is

a legal technique for the resolution of disputes outside the courts, where the parties to a dispute refer it to one or more persons (the arbitrator), by whose decision they agree to bound It is a settlement technique in which a third party reviews the case and imposes a decision that is legally binding for both side

Operating

in railways , post and telegraph

industries. Universally accepted method.


TRIEPARTITE

BODIES COLLECTIVE BARGAINING

Giving

a list of unfair labour practice and making them punishable. Regulation strike and lockout. Laying down law relating to layoff , retrenchment and closure . Prohibition change in condition of service of a worker .

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