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INDUSTRIAL DISPUTE ACT 1947

Definition
The industrial dispute means any dispute or difference between:(i) Employers and employers (ii)Employers and Workmen or (iii)Workmen and workmen, which is connected with

Industrial disputes may be said to be disagreement or controversy between management and labor with respect to wages, working conditions, other employment matters or union recognition.

Industry

As per section 2 (J) of industrial disputes act 1947, Industry mean any systematic activity carried on by cooperation between an employer and his work man for the production supply or distribution of goods and services with a view of satisfy human wants or needs.

Objective
Promotion of measures of securing, preserving Industrial harmony Employer Workman Employer - Employer Workman - Workman

Settlement of disputes between Rights of Registered Trade Union Prevention of illegal- Strike; Lockout Promotion of collective bargaining

Types Of IDs

Interest disputes: arising out of deadlocks in negotiation for collective bargaining

Grievance disputes: may pertain to discipline, wages, working time, promotion, rights of supervisors etc. also some times called interpretation disputes
Recognition disputes: over the rights of a TU to represent class or category of workers

Unfair labor practices: those arising out of right to organize, acts of violence, failure to implement an award, discriminatory treatment, illegal strikes and lockouts

Authority

Any person who is a workman employed in an industry can raise an industrial dispute.

A workman includes any person (including an apprentice) employed in an industry to do manual, unskilled, skilled, technical, operational, clerical or supervisory work for hire or reward.

It excludes those employed in managerial or administrative capacity.

Industry means any business, trade, undertaking, manufacture and includes any service, employment, handicraft, or industrial occupation or avocation of workmen.

Prohibition of strikes and lock-outs


According to SEC 22 (1) No person employed with a public utility service shall go on strike in breach of contract Without giving the employer notice of strike, within six weeks before the strike. Before the expiry of date of strike specified in such notice. According to SEC 23; No employee of any industrial establishment shall go on strike during the period when proceedings in any disputes case is going on or when final judgment is awaited .

ORIGIN
Strikes became important during the industrial revolution when mass labour become important in factories and mines. In most countries, they were quickly made illegal, as factory owner had far more political power then workers. Most western countries partially legalized striking in the late 19th or early 20th century.

AIM OF STRIKES
Strikes are mostly used to put pressure on the government or the top management to change policies or fulfill their demands. It can be anything like for increasing their salary or for bonus or for facilities related to workplace, etc.

BAD IMPACTS ON
Economy Government Production International trade Businessmen Common people

RECENT STRIKES IN INDIA


All the pilots of Jet airways going on strike on same day. All clerks & P.O of banks going on strike on same day. Teachers & staff of universities of M.P going on strike. Strike of truck operators.

INDUSTRIAL DISPUTE RESOLUTION MECHANISM

Industrial Undertaking

Works Committee

Conciliation officer CG/State Govt.

Board
Labour court

Tribunal
AWARD

Arbitral Tribunal

Settlement Without State Intervention


There are two ways in which the basic parties to an industrial dispute- the employer and the employees- can settle their disputes.
Collective bargaining Voluntary arbitration

Settlement Under the Influence of the State

Compulsory establishment of bipartite committees. Establishment of compulsory collective bargaining. Conciliation and mediation (voluntary and compulsory). Compulsory investigation. Compulsory arbitration or adjudication.

Voluntary Arbitration
It is commonly viewed as less expensive and faster than resolving a dispute in court. An arbitrator may be a single person or a panel. Sometimes, however, the parties may agree to submit the dispute to an arbitrator but at the same time, reserve their right to accept or reject the award when it comes.

Adjudication in India

3 types of adjudication authorities for the adjudication of industrial disputes:

Labor Court

Tribunal

National Tribunal

Cont..
Labor Courts and the Tribunal can be established both by the central and state governments, but the National Tribunal is setup only by the central government. National Tribunal is set up to adjudicate such disputes which involve any question 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 them.

Introduction
The Labor Court adjudicates disputes relating to the propriety or legality of an order passed by the employer under this standing orders, discharge or dismissal of workmen, legality or otherwise of a strike or lock-out. The Tribunal and National Tribunal generally deal with such subject matters as wages, bonus, profit-sharing, rationalization, allowances, hours of work, provident fund, gratuity etc. Strikes and lock-outs are prohibited during the pendency of the proceedings before any of the adjudication authorities, and two months after the conclusion of such proceedings and during any period in which the award is in operation, in respect of any matter covered by the award.

Other Tripartite Bodies at the State Level


Amongst the important tri partite committees functioning in the states are: Implementation and Evaluation Committees Committees for particular industries Labor Welfare Boards or Committees Some of these are permanent, while others are constituted as and when required.

AUTHORITIES UNDER THIS ACT


Works Committee
(1) In the case of any industrial establishment in which one hundred or more workmen are employed or have been employed on any day in the preceding twelve months the appropriate Government may by general or special order require the employer to constitute in the prescribed manner a Works Committee consisting of representatives of employers and workmen engaged in the establishment so however that the number of representatives of workmen on the Committee shall not be less than the number of representatives of the employer. (2) It shall be the duty of the Works Committee to promote measures for securing and preserving amity and good relations between the employer and workmen and, to that end, to comment upon matters of their common interest or concern and endeavour to compose any material difference of opinion in respect of such matters.

Conciliation officers
The appropriate Government may, by notification in the Official Gazette, appoint such number of persons as it thinks fit, to be conciliation officers, charged with the duty of mediating in and promoting the settlement of industrial disputes.

A conciliation officer may be appointed for a specified area or for specified industries in a specified area or for one or more specified industries and either permanently or for a limited period.

Boards of Conciliation
(1)The appropriate Government may as occasion arises by notification in the Official Gazette constitute a Board of Conciliation for promoting, the settlement of an industrial dispute. (2) A Board shall consist of a Chairman and two or four other members, as the appropriate Government thinks fit. (3) The Chairman shall be an independent person and the other members shall be persons appointed in equal numbers to represent the parties to the dispute and any person appointed to represent a party shall be appointed on the recommendation of that party: Provided that, if any party fails to make a recommendation as aforesaid within the prescribed time, the appropriate Government shall appoint such persons as it thinks fit to represent that party. (4) A Board, having the prescribed quorum, may act notwithstanding the absence of the Chairman or any of its members or any vacancy in its number: Provided that if the appropriate Government notifies the Board that the services of the Chairman or of any other member have ceased to be available, the Board shall not act until a new chairman or member, as the case may be, has been appointed.

Courts of Inquiry
(1) The appropriate Government may as occasion arises by notification in the Official Gazette, constitute a Court of Inquiry for inquiring into an matter appearing to be connected with or relevant to an industrial dispute. (2) A Court may consist of one independent person or of such number of independent persons as the appropriate Government may think fit and where a Court consists of two or more members, one of them shall be appointed as the chairman. (3) A Court, having the prescribed quorum, may act notwithstanding the absence of the chairman or any of its members or any vacancy in its number: Provided that, if the appropriate Government notifies the Court that the services of the Chairman have ceased to be available, the Court shall not act until a new chairman has been appointment

Labour Courts
(1) The appropriate Government may, by notification in the Official Gazette, constitute one or more Labour Courts for the adjudication of industrial disputes relating to any matter specified in the Second Schedule and for performing such other functions as may be assigned to them under this Act. (2) A Labour Court shall consist of one person only to be appointed by the appropriate Government.

(3) A person shall not be qualified for appointment as the Presiding Officer of a Labour Court, unless (a) he is, or has been, a Judge of a High Court; or (b) he has, for a period of not less than three years, been a District Judge or an Additional District Judge; or] (c) he has held any judicial office in India for not less than seven years ; or (d) he has been the Presiding Officer of a Labour Court constituted under any Provincial Act or State Act for not less than five years.]

Tribunals
(1) The appropriate Government may, by notification in the Official Gazette, constitute one or more Industrial Tribunals for the adjudication of industrial disputes relating to any matter and for performing such other functions as may be assigned to them under this Act. (2) A Tribunal shall consist of one person only to be appointed by the appropriate Government.

(3) A person shall not be qualified for appointment as the presiding officer of a Tribunal unless:
(a) he is, or has been, a Judge of a High Court; or (b) he has, for a period of not less than three years, been a District Judge or an Additional District Judge. (4) The appropriate Government may, if it so thinks fit, appoint two persons as assessors to advise the Tribunal in the proceeding before it.

National Tribunals
(1) The Central Government may, by notification in the Official Gazette, constitute one or more National Industrial Tribunals for the adjudication of industrial disputes which, in the opinion of the Central Government, involve questions 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. (2) A National Tribunal shall consist of one-person only to be appointed by the Central Government. (3) A person shall not be qualified for appointment as the presiding officer of a National Tribunal unless he is, or has been, a Judge of a High Court. (4) The Central Government may, if it so thinks fit, appoint two persons as assessors to advise the National Tribunal in the proceeding before it.

Disqualifications for the Presiding Officers of Labour Courts, Tribunals and National Tribunals

No person shall be appointed to, or continue in, the office of the Presiding Officer of a Labour Court, Tribunal or National Tribunal, if (a) he is not an independent person; or (b) he has attained the age of sixty-five years.

Employee Welfare
Employee welfare means the efforts to make life worth living for workmen. According to Todd employee welfare means anything done for the comfort and improvement, intellectual or social, of the employees over and above the wages paid which is not a necessity of the industry

Features of Employee Welfare


Employee welfare is a comprehensive term including various services, facilities and amenities provided to employees for their betterment. * The basic purpose in to improve the lot of the working class. * Employee welfare is a dynamic concept. * Employee welfare measures are also known as fringe benefits and services. * Welfare measures may be both voluntary and statutory

Objectives of Employee Welfare


Employee welfare is in the interest of the employee, the employer and the society as a whole. The objectives of employee welfare are: * It helps to improve. * It improves the loyalty and morale of the employees. * It reduces labor turnover and absenteeism. * Welfare measures help to improve the goodwill and
public image of the enterprise. * It helps to improve industrial relations and industrial peace. * It helps to improve employee productivity

Agencies of Employee Welfare


1. Central government: - The central government has made elaborate provisions for the health, safety and welfare under Factories Act 1948, and Mines Act 1952. These acts provide for canteens, crches, rest rooms, shelters etc.
2. State government: - Government in different states and Union Territories provide welfare facilities to workers. State government prescribes rules for the welfare of the workers and ensures compliance with the provisions under various labor laws. 3. Employers: - Employers in India in general looked upon welfare work as fruitless and barren though some of them indeed had done pioneering work. 4. Trade unions: - In India, trade unions have done little for the welfare of workers. But few sound and strong unions have been the pioneering in this respect. E.g. the Ahmedabad textiles labor association and the Mazdoor sabha, Kanpur. 5. Other agencies: - Some philanthropic, charitable d social service organizations like: - Seva Sadan society, Y.M.C.A., etc

Types of Employee Welfare


* Intramural: - These are provided within the organization like: 1. Canteen, 2. Rest rooms, 3. Crches, 4. Uniform etc.

* Extramural: - These are provided outside the organization, like: 1. Housing, 2. Education, 3. Child welfare, 4. Leave travel facilities, 5. Interest free loans, 6. Workers cooperative stores, 7. Vocational guidance etc.

Types of Employee Welfare


Statutory welfare work - comprising the legal provisions in
various pieces of labor legislation. Voluntary welfare work - includes those activities which are undertaken by employers for their voluntary work. Different ways of Social Security Provision in India

1. Social Insurance- common fund is established with


periodical contribution from workers out of which all benefits in terms of cash or kind are paid.The employers & state prove major portion of finances.Benifits shuch as PF, Group Insurance etc are offered.

2. Social Assistance- Benefits are offered to persons of small


means by govt out of its general revenues. Eg- Old age pension

Social Security Employee Welfare


Medical care - Sickness benefit in cash - Old age pension or retirement benefit - Invalidity pension - Maternity benefit - Accident benefit - Survivors benefit

Art 41 0f Indian constitution says that the state shall within the limits of its economic capacity & develeopment, make effective provision for security , the right to work, to education & to public assistance in cases of unemployment, oldage, sickness & disablement & in other cases of undeserved want

Philosophy of Employee Welfare


The philosophy of labour welfare activities is based on the theory that success of industrial development depends upon harmonious relations and co-operation between labour and management (employer ). The labour has a fund of knowledge and experience at his jobs. If rightly directed and fully used, it would make a good contribution to the prosperity of the organization this can be achieved only through the satisfaction of the labour
.

Theories of Employee Welfare


The Police Theory: This is based on the contention that a minimum standard of welfare is necessary for labourers. Here the assumption is that without policing, that is, without compulsion, employers do not provide even the minimum facilities for workers

The Religious Theory: This is based on the concept


that man is essentially "a religious animal." The Philanthropic Theory: This theory is based on man's love for mankind. Philanthropy means "Loving mankind. Trusteeship Theory - This is also called the Paternalistic Theory of Labour Welfare. According to this the industrialist or employer holds the total industrial estate, properties, and profits accruing from them in a trust.

Theories of Employee Welfare


Placating Theory - According to this theory, timely and
periodical acts of labour welfare can appease the workers. They are some kind of pacifiers which come with a friendly gesture The Public Relation Theory: This theory provides the basis for an atmosphere of goodwill between labour and management, and also between management and the public, labour welfare programmes under this theory, work as a sort of an advertisement and help an organization to project its good image and build up and promote good and healthy public relations. The Functional Theory - This is also called the Efficiency Theory. Here, welfare work is used as a means to secure, preserve and develop the efficiency and productivity of labour, It is obvious that if an employer takes good care of his workers, they will tend to become more efficient and will thereby step up production.

Role of Management in Employee Welfare


Organizations provide welfare facilities to their employees to keep their motivation levels high. The employee welfare schemes can be classified into two categories viz. statutory and non-statutory welfare schemes. The statutory schemes are those schemes that are compulsory to provide by an organization as compliance to the laws governing employee health and safety. These include provisions provided in industrial acts like Factories Act 1948, Dock Workers Act (safety, health and welfare) 1986, Mines Act 1962. The non statutory schemes differ from organization to organization and from industry to industry

STATUTORY WELFARE SCHEMES


Employee Welfare

The statutory welfare schemes include the following provisions: Drinking Water Facilities for sitting First aid appliances Latrines and Urinals Canteen facilities Spittoons Lighting

NON STATUTORY SCHEMES


Personal Health Care (Regular medical check-ups): Some of the companies provide the facility for extensive health check-up Flexi-time: The main objective of the flextime policy is to provide opportunity to employees to work with flexible working schedules Employee Assistance Programs: Various assistant programs are arranged like external counseling service so that employees or members of their immediate family can get counseling on various matters.

Impact of Welfare on Productivity


The welfare measures aim at integrating the socio-psychological needs of employees, the unique requirements of a particular technology, the structure and processes of the organization and the existing socio-cultural environment.
It creates a culture of work commitment in organizations and society which ensure higher productivity and greater job satisfaction to the employees. Due to the welfare measures, the employees feel that the management is interested in taking care of the employees that result in the sincerity, commitment and loyalty of the employees towards the organization.

The employees work with full enthusiasm and energetic behavior which results in the increase in production and ultimately the increased profit

I L O & Employee Welfare


ILO was setup in 1919 as a part of League of Nations for the promotion of universal peace through social justice. Important areas of ILO activities & field operations - Manpower orgn & vocational training - Migrant workers- need to promote equality of migrant workers in all social &labour matters. -Women workers- protection - Child workers- against exploitation - Social Security -Conditions of work -Health , safety & welfar

I L Os Employee Welfare
ILO has suggested welfare funds on a collective basis to finance activities in small undertakings. It has adopted a number of convections & recommendations regarding industrial accidents & occupational health. New dimension to welfare activities has been provided by ILOs contribution to family welfare & population education prog among industrial workers in organised sector in India It has rendered exemplary service to all 3 elements composing it govt, employees & workers. It has greatly influenced labour legislation, labour welfare , trade unionism & Industrial Relations in India

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