Industrial Disputes Act

Industrial disputes are the disputes which arise due to any disagreement in an industrial relation. The term 'industrial relation' involves various aspects of interactions between the employer and the employees; among the employees as well as between the employers. In such relations whenever there is a clash of interest, it may result in dissatisfaction for either of the parties involved and hence lead to industrial disputes or conflicts. These disputes may take various forms such as protests, strikes, demonstrations, lock-outs, retrenchment, dismissal of workers, etc. Some of the important causes of an industrial dispute are

!emand for higher wages and allowances. !emand for payment of bonus and determination of its rate thereof. !emand for higher social security benefits. !emand for good and safer working conditions, including length of a working day, the interval and fre"uency of leisure and physical work environment. !emand for improved labour welfare and other benefits. #or e$ample, ade"uate canteen, rest, recreation and accommodation facility, arrangements for travel to and from distant places, etc. %esides, poor personnel management; conflicting legislative measure or government policies; and psychological factors such as denial of opportunity to the worker for satisfying his& her basic urge for self-e$pression, personal achievement and betterment may also result in labour problems.

In India, the Industrial Disputes Act, 1947 is the main legislation for investigation and settlement of all industrial disputes. The 'ct enumerates the contingencies when a strike or lock-out can be lawfully resorted to, when they can be declared illegal or unlawful, conditions for laying off, retrenching, discharging or dismissing a workman, circumstances under which an industrial unit can be closed down and several other matters related to industrial employees and employers. The 'ct is administered by the Ministry of Labour through its Industrial Relations Division. The !ivision is concerned with improving the institutional framework for

dispute settlement and amending labour laws relating to industrial relations. It works in close co-ordination with the Central Industrial Relations Machinery CIRM! in an effort to ensure that the country gets a stable, dignified and efficient workforce, free from e$ploitation and capable of generating higher levels of output. The (I)*, which is an attached office of the *inistry of +abour, is also known as the Chief Labour Co""issioner Central! #CLC C!$ %r&anisation . The (I)* is headed by the (hief +abour (ommissioner ,(entral-. It has been entrusted with the task of maintaining industrial relations, enforcement of labour laws and verification of trade union membership in central sphere. It ensures harmonious industrial relations through

*onitoring of industrial relations in (entral Sphere; Intervention, mediation and conciliation in industrial disputes in order to bring about settlement of disputes; Intervention in situations of threatened strikes and lockouts with a view to avert the strikes and lockouts; Implementation of settlements and awards.

'ccording to the 'ct, the term 'industrial dispute' means .any dispute or difference 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.. The basic ob/ectives of the 'ct are

To provide a suitable machinery for the /ust, e"uitable and peaceful settlement of industrial disputes. To promote measures for securing and preserving amity and good relations between employers and employees. To prevent illegal strikes and lockouts. To provide relief to workers against layoffs, retrenchment, wrongful dismissal and victimisation.

To promote collective bargaining.

To ameliorate the conditions of workers.

To avoid unfair labour practices.

0nder the 'ct, statutory machinery has been constituted for conciliation and ad/udication of industrial disputes. It includes

The 'ct provides for appointment of '(onciliation 1fficers', by appropriate 2overnment, charged with the duty of mediating in and promoting the settlement of industrial disputes. 3e& she may be appointed for a specified area, or for specified industries in a specified area, or for one or more specified industries, either permanently or for a limited period. It is the duty of these officers to bring both the employees and employers together and help them to resolve their differences. If the dispute is settled, he& she shall send a report, to that effect, to the appropriate 2overnment. The appropriate 2overnment may, as occasion arises, constitute a '%oard of (onciliation', which shall consist of a chairman and two or four other members, as the appropriate 2overnment thinks fit. The (hairman shall be an independent person and the other members shall be persons appointed in e"ual numbers to represent the parties to the dispute. 4here a dispute has been referred to a %oard, it shall, without delay, investigate the dispute and do all such things as it thinks fit for the purpose of inducing the parties to come to a fair and amicable settlement of the dispute. The appropriate 2overnment may, as occasion arises, also constitute a '(ourt of In"uiry' to in"uire into any matter appearing to be connected with or relevant to an industrial dispute. It shall, thereafter, report about it to the 2overnment ordinarily within a period of si$ months from the commencement of its in"uiry. Such a court may consist of one independent person or of such number of independent persons as the appropriate 2overnment may think fit and where it consists of two or more members, one of them shall be appointed as the chairman.

The appropriate 2overnment may constitute one or more '+abour (ourts' to ad/udicate industrial disputes relating to any matter specified in the second schedule like issues related to standing orders, discharge or dismissal of workers, illegality or otherwise of strikes and lockouts, withdrawal of any customary benefit, etc. and to perform such other functions as may be assigned to them under the 'ct. ' labour court shall consist of one person only to be appointed by the appropriate 2overnment. The appropriate 2overnment may constitute one or more 'Industrial Tribunals' to ad/udicate industrial disputes relating to any matter, whether specified in the second schedule or third schedule, and to perform such other functions as may be assigned to them under the 'ct. ' tribunal shall consist of one person only to be appointed by the appropriate 2overnment. The third schedule covers the matters such as wages, bonus, allowances and certain other benefits, certain working conditions, discipline, rationalisation, retrenchment and closure of establishment. The (entral 2overnment may, by notification in the 1fficial 2a5ette, constitute one or more '6ational Industrial Tribunals' to ad/udicate an industrial dispute which, in the opinion of the (entral 2overnment, involve "uestions of national importance or are of such a nature that industrial establishments situated in more than one State are likely to be interested in, or affected by, such disputes. Such a tribunal shall consist of one person only to be appointed by the (entral 2overnment. The 'ct also makes it obligatory for an employer to set up a '2rievance Settlement 'uthority ,2S'-' in an industrial establishment in which fifty or more workers have been employed in the preceding twelve months. This authority shall have the responsibility to settle industrial disputes concerning an individual worker employed in that establishment.

6o reference can be made under the 'ct to (onciliation %oards, +abour (ourts or Industrial Tribunals, unless the dispute has first been the sub/ect of a decision of a 2rievance Settlement 'uthority. 0nder the Industrial Disputes Act, 1947, the (entral 2overnment is the appropriate 2overnment for investigation and settlement of industrial disputes in regard to the

departmental undertakings of the (entral 2overnment, ma/or ports, mines, oil fields, cantonment boards, banking and Insurance (ompanies, +ife Insurance (orporation of India ,+I(-, Industrial #inance (orporation of India +imited, the 1il and 6atural 2as (orporation +imited, the Indian 'irlines, 'ir India, the 'irport 'uthority of India and all air transport services. 4hile in relation to other industrial establishments, the State 2overnment is the appropriate 2overnment. 'ccordingly, Central 'overn"ent Industrial (ribunals C'I(s! )cu") Labour Courts have been set up in different parts of the country. There are at present 17 C'I(s to whom industrial disputes could be referred for ad/udication. These (2ITscum-+abour (ourts are at 6ew !elhi , *umbai ,7 (2ITs -, %angalore, 8olkata, 'sansol, !hanbad ,7 (2ITs -, 9abalpur, (handigarh, 8anpur, 9aipur, +ucknow, 6agpur, 3yderabad, (hennai and %hubaneshwar. 1ut of these (2ITs, 7 (2ITs namely *umbai-I and 8olkata have been declared as 6ational Industrial Tribunals. %esides, the %r&ani*ation of the Chief Labour Co""issioner Central! acts as the primary conciliatory agency in the (entral 2overnment for industrial disputes. There are the Re&ional Labour Co""issioners Central! and Assistant Labour Co""issioners Central! who on behalf of the (hief +abour (ommissioner ,(entral- act as (onciliatory 1fficers in different parts of the country.

Causes of Industrial Disputes

The causes of industrial disputes can be broadly classified into two categories economic and non-economic causes. The economic causes will include issues relating to compensation like wages, bonus, allowances, and conditions for work, working hours, leave and holidays without pay, un/ust layoffs and retrenchments. The non economic factors will include victimi5ation of workers, ill treatment by staff members, sympathetic strikes, political factors, indiscipline etc. : +a&es and allo,ances- Since the cost of living inde$ is increasing, workers generally bargain for higher wages to meet the rising cost of living inde$ and to

increase their standards of living. In 7;;7, 7<.=> of disputes were caused by demand of higher wages and allowances. This percentage was 7;.=> during 7;;? and during 7;;= increased up to 7@.7>. In 7;;A, wages and allowances accounted for 7<.B> of disputes. : .ersonnel and retrench"ent- The personnel and retrenchment have also been an important factor which accounted for disputes. !uring the year 7;;7, disputes caused by personnel were <=.<> while those caused by retrenchment and layoffs were 7.7> and ;.=> respectively. In 7;;?, a similar trend could be seen, wherein <<.7> of the disputes were caused by personnel, while 7.=> and ;.@> of disputes were caused by retrenchment and layoffs. In year 7;;A, only C.@> of the disputes were caused by personnel, and only ;.=> were caused by retrenchment. : Indiscipline and violence- #rom the given table, it is evident that the number of disputes caused by indiscipline has shown an increasing trend. In 7;;7, 7C.C> of disputes were caused because of indiscipline, which rose up to ?@.C> in 7;;?. Similarly in 7;;= and 7;;A, =;.=> and =<.@> of disputes were caused due to indiscipline respectively. !uring the year 7;;?, indiscipline accounted for the highest percentage ,?@.C>- of the total time-loss of all disputes, followed by cause-groups wage and allowance and personnel with 7;.=> and<<.7> respectively. ' similar trend was observed in 7;;= where indiscipline accounted for =;.=> of disputes. : /onus- %onus has always been an important factor in industrial disputes. @.D> of the disputes were because of bonus in 7;;7 and 7;;? as compared to ?.A> and ?.@> in 7;;= and 7;;A respectively. : Leave and ,or0in& hours- +eaves and working hours have not been so important causes of industrial disputes. !uring 7;;7, ;.A> of the disputes were because of leave and hours of work while this percentage increased to <> in 7;;?. !uring 7;;=, only ;.=> of the disputes were because of leaves and working hours. : Miscellaneous- The miscellaneous factors include

- Inter&Intra 0nion )ivalry - (harter of !emands - 4ork +oad - Standing orders&rules&service conditions&safety measures - 6on-implementation of agreements and awards etc.

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