MACHINERY FOR SETTLEMENT OF INDUSTRIAL DISPUTE

MACHINERY FOR SETTLEMENT OF INDUSTRIAL DISPUTES

VOLUNTARY METHODS Collective Bargaining Joint Consultations Standing Orders Grievance Procedures Code Of Discipline STATUTORY METHODS Conciliation Arbitration Adjudication

VOLUNTARY METHODS
What is Collective Bargaining?

 It is the process of negotiation between firms and workers representatives for the purpose of establishing mutually agreeable conditions of employment.

It is a technique adopted by two parties to reach an understanding acceptable to both through the process of discussion and negotiation.

PROCESS
PREPARING BARGAINING ISSUES

NEGOTIATIONS
SETTLEMENT AND CONTRACT AGREEMENT ADMINISTRATION OF AGREEMENT

 The negotiation team should consist of representatives of both the parties with adequate knowledge and skills for negotiation. Advance preparation by employers and employees Parties must examine their own situation and develop issues they believe will be important

Wage related issues

Supplementary issues

Administrative issues

Institutional issues

It begins when each side presents its initial demands It goes for days until final agreement is reached It is a big relief for everyone when final agreement is reached Its success depends upon the skill and abilities of negotiators

It is a crucial stage where in union-negotiating team explains the agreement to members for a vote If voted, agreement is formalized into a contract Contract must be clear and precise

 Agreement must be implemented according to the

provisions of the agreement

Management is primarily responsible for implementation

of contract
It must be communicated to all affected levels

What is Joint Consultation?

WORK COMMITTEES

As per provisions of Industrial Dispute Act, 1947 work committees have to be set up in all those units which employ 100 or more persons. They are composed of equal number of employer and employee representatives It is a consultative body These have responsibility of removing the causes of friction between labor and management in day to day functioning.

 Issues like wages, benefits, bonus, hours of work, terms and conditions of employment, training, transfers,etc come under the purview of works committee

TISCO was the first to create a works committee in 1920 530 committees were operational at the end of 1987

JOINT MANAGEMENT COUNCILS (JMCs)

In Industrial Policy Resolution,1956, the need for councils was emphasized Management supplies the facts regarding the unit and council discusses various matters across the table and then make recommendations JMCs should have equal number of workers and employers representatives They look after three areas of: information sharing, consultation and administrative matters relating to welfare, safety, training, holidays

 The idea was implemented in over 150 units. At present 80 are operating in public sector units like Air India, Hindustan Insecticides and in large number of private sector units like TISCO, Arvind Mills.

STANDING ORDERS

 These are the rules and regulations governing the conditions of employment of workers.
They specify the duties and responsibilities of both employer and employees As per provisions of Industrial Employment Act,1946,Standing orders shall be framed in all undertakings employing 100 or more workers Standing orders have to framed in consultation with employees and submitted to certifying officer.

 Matters Classification of workers Hours of work, holidays, wage rate Shift working Attendance and late coming Leave rules and disciplinary action Certified copies must be displayed inside the undertaking It is binding on both employer and employee

CODE OF DISCIPLINE

 It aimed at preventing disputes by providing for voluntary and mutual settlement of disputes. Principles regulating the conduct of the parties, as provided for in the code, may be as: Restrains both employer and employee from unilateral action. Parties shall not indulge in strikes, lockouts without notice Parties shall not resort to coercion or adapt unfair practices At present the code has been accepted by about 200 individual employers and about 170 trade unions LIC, SBI and RBI have accepted it

GRIEVANCE PROCEDURE

 GRIEVANCE means employee dissatisfaction or feeling of personal injustice relating to his employment relation It has to be redressed properly It should not be suppressed Grievances arise : Violation of terms and conditions of employment Violation of law Violation of rules Change in working conditions or past company practices Violation of health and safety standards

GRIEVANCE REDRESSAL PROCEDURES

OPEN DOOR POLICY Aggrieved party is free to meet top executive of organization and get his grievance redressed.
STEP LADDER POLICY Aggrieved employee has to follow a step by step approach

STEP LADDER POLICY

STATUTORY MEASURES
What is CONCILIATION?

 It is a process by which representatives of workers and employers are brought together before a third person or group of persons to persuade them to come on a mutually satisfying agreement. Conciliator tries to bridge the gap between the parties He tries to clear the fog surrounding the issue He persuades parties to take a fresh look at whole issue and explore the possibility of reaching a consensus He only advances a possible line of solution for consideration by disputants.

What is ARBITRATION?

 Voluntarily referring the dispute to third party called ARBITRATOR He listens to the views of both the parties and delivers a judgment on the dispute He submits his judgment to government and government publishes it within 30 days of submission It is binding on both the parties

What is ADJUDICATION?

 It is compulsory arbitration and is the ultimate remedy

to resolve dispute Settlement of dispute through intervention of third party appointed by government As per Industrial Dispute Act, 1947 Three tier Adjudication machinery Labour Court Industrial Tribunal National Tribunal

 Labour Court It deals with disputes relating to: Legality of order passed by employer Application of standing order Grant of relief to wrongly dismissed person Illegality or otherwise of strike or lock out Industrial Tribunal It has wider jurisdiction than labour court and deals with following matters: Wages including the period and mode of payment Compensatory and other allowances Leave with wages and holidays Shift working

Bonus, profit sharing, provident fund and gratuity Rules of discipline Retrenchment National Tribunal Appointed by Central government to deal with disputes of national importance or issues likely to affect industrial establishments in more than one state

QANTAS INDUSTRIAL DISPUTE