UNIT - II

Dispute Def: According to the Industrial dispute act 1947 section 2(K) 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 non employment or terms of employment or with the conditions of labour of any person .

For dispute to become Industrial dispute it should satisfy the following essential (i) dispute should be between Employer Employer (such as wage war where labour is scarce) Employer worker (demarcation disputes) Worker - Worker (ii)it should connect with employment or non employment, terms of employment and conditions of labour of any person (iii) The relationship between the employee and workman should be in existence and should be the result of contract and the workmen actually employed.

Some principles judging the nature of a dispute were evolved by the courts as follows:
(i)Dispute must affect a large group of workmen who have a community of interest and their rights must be affected. (ii) dispute should be invariable be taken by the industry union or by appreciable number of workmen (iii)Concerted demand by the workers for redress of grievance. The individual complaint to general complaint .

(iv) Dispute must have direct and substantial interest .There must be some nexus between the union which exposes the cause of the workmen

Classification of Industrial disputes:

1. Interest

Dispute: Arises out if dead lock in negotiation Relate to new terms and conditions of employment for the general body of workers

Originate from trade union on disputes related to wages, fringe benefits, job security etc
Issue in this case are compromisable, they lend easily for best conciliation

2. Grievance or rights dispute:

Also called as conflicts of rights on legal disputes

Arises due to day to day workers grievances

Against an act of management that is concerned to violate their right Arises on issues like discipline and dismissal, the payment of wages and other fringe benefits , working time, overtime, time off entitlements, promotion ,demotion etc

3. Disputes over unfair labour practices: Management discriminate against workers on the ground that they are trade union members

Refusal to bargain collectively in good faith with the trade union

Recruiting new employees during strikes which is not illegal These kind of unfair practices is also know as Trade union victimization. 4.Recognition dispute: When the management refuses to recognize a trade union for the purpose of collective bargaining.

Impact of Industrial dispute

The workers, the employers, the consumers, the community and the nation suffer in more than one way Huge wastage of man days and dislocation in the production work

Commodity produced by a factory where workers are on strike is used in other production operation then the other producers also suffer
The short supply of consumer goods result in sky rocketing prices and non availability in the market. Workers lose their wages, family life, added mental tension, prosecuted, victimized, kidnapped etc Employers suffer heavy loss like no production, reduced sale, expenses incurred in cruising strikes Public and society affected because of law and order problems Nations economy affected

Causes of Industrial dispute: Industry related: Pertaining to employment, work , wages, hours of work, privileges, rights and obligation of employees and employers Dismissal or non employment of any person Registered agreement, settlement or award Demarcation of the function of an employee Because of higher working population and labour force Failure to pay the need based pay Employees conscious about their rights and will not put up with any injustice or wrong done to them

Management Related Factor:

Management generally is not willing to talk over any dispute with employees are any members of TU

Unwillingness to recognize a particular trade union

Did not delegate enough authority to their officials to negotiate with their workers The representative of employer unnecessarily and unjustifiably take the side of the management. No consultation with employees pertaining to recruitment, promotion, transfer, merit awards Services and benefits offered by management far from satisfactory Decisions of management to change their working methods, to throw employers or to close the establishment.

Government Related factors:

Change in economic policies eg: privatization Labour laws have lost their relevance in the content of the changed industrial climate /culture The growing irrelevance of government conciliation machinery

Other Causes: Political party influence to show their strength

Political instability, strained center-state relationship Corruption in industry and public life

Strikes: Sec 2 (q) Of ID act 1947 A cessation of work by a body of persons employed in any industry acting in combination , or a concerted refusal under a common understanding of a number person who are or have been so employed to continue to work or to accept employment.

Strike

Primary Strike

Secondary Strike

Primary Strike: Stay away strike Sit down strike or Stay in strike Tools down or pen down strike Token or protest strike

Lightning or cat call strike

Go slow Picketing Gherao Hunger strike

According to Industrial dispute act 1947: Lockout means the closing of a place of business of employment or the suspension of work or the refusal by an employer to continue to continue to employ any number of persons employed by him

Industrial Peace: A state in industrial relations in which both employer and employees abstain from industrial action, such as strikes and lockouts.

Steps to attain Industrial Peace:

1.Good industrial relation 2. Generating amity and goodwill between he partners in an industry 3. Proper employee communication 4. Clear grievance procedure and speedy settlement of grievance 5.Joint consultation at different levels of the plant 6.Workers education program 7. Healthy and stable trade unions 8. Recognizing trade union as bargaining agent 9. Sincere observance of code of discipline 10.Revision of wages based on price index 11.Helpful attitude of supervisor to workers problem 12. Improving working condition and welfare amenities 13. Facilities like transport, education, housing and health for the workers

Conciliation

Government Machinery to settle disputes

Arbitration

Adjudication

Conciliation
Conciliation is described as the practice by which the services of a neutral third party are used in a dispute as a means of helping the disputing parties to reduce the extent of their differences and to arrive at an amicable settlement or agreed solution

Conciliation Procedure: The conciliation is done by the third party called conciliator. Before the meeting the conciliator establishes preliminary contact with the disputing parties to give and obtain information and to establish a positive relationship He holds both joint conferences and individual meetings to get more clarity on the dispute

 Hard posture Phase:

-The parties come with a hardened attitude -They say heir view is only right - They will not accept any argument put by the other side - The conciliator collects information and the gap which separates them. Search for accommodation: Neither party normally take initiative in adopting an accommodating attitude. The conciliator objective is to induce them to adopt a more flexible attitude and move closer to each other Emergence of appropriate mood for settlement: -Conciliator encourages to make a modified proposal and counter proposal -Acknowledgement by one side in accepting the arguments of the other side.

 Drafting agreement:

-Drafting of any agreement reached (or) initiating further proceedings if his conciliation has not been fully successful

- Conciliator adds his signature to the report and submit to the government and parties concerned.
Conciliation Officer: According to Industrial dispute act 1947 the central or state government can appoint conciliation officer for a particular area, particular industries or for one or more specified industry . The number of conciliation officer can be decided by the government based on the need . The position can be Temporary or Permanent

Qualities of Conciliation Officer:

He should be independent in his thought and impartial

He should e physically and psychologically fit He should induce and persuade the parties for a settlement He should get well along with the people

Well acquainted with the law and regulations concerning industrial relations
Well rained in different aspects of the management process

Criticisms against conciliation:

The Labour department who are already over burdened cant do full justice to

conciliation. They just act as a post offices .

Conciliation officers are young and inexperienced

Even when labour and employer reach an agreement without the help of conciliator, it is reported as if it was settled through conciliation Conciliation proceedings are often misused my parties Conciliation is looked as a mere hurdle to be crossed for reaching the next stage. Political pressure interfere the conciliation and turns the settlement favorable to workers

Suggestions to Improve the conciliation procedure:

Proper selection and periodic raining for conciliation officer Reduce the political and administrative interference and assigning the machinery o a autonomous body Delegating more powers where the parties could be forced to arrive at a conclusion which is binding and not only recommendatory in nature. Commitment towards resolution should be inculcated among the parties by the conciliator Workload of the machinery should e periodically checked

Arbitration
Arbitration is a means of securing an award on a conflict issue by reference to a third party . It is a process where there is a hearing and a determination of a cause between parties in controversy by a person or persons chosen by them or appointed under statutory provision.

Arbitration is judicial in process

The arbitrator enforces his own point of view on the contending parties and the opinion of the disputants are not given any predominance

Types of Arbitration:
Voluntary Arbitration: The two contending parties, unable to compose their differences y themselves or with the help of a mediator or conciliator, agree to submit the conflict/dispute to an impartial authority whose decision hey are ready to accept.

Compulsory Arbitration: The parties are required to accept arbitration without any willingness on their part. When one of the parties to an industrial dispute feels upset by the act of the other, it may apply to the appropriate government to refer the dispute to a judicial settlement

Advantages of Arbitration:
1. Since it is established by the parties themselves, arbitration has the particular advantage of bringing the dispute settlement procedure down to the level of the parties to dispute 2. Since arbitration is established by agreement, it is more flexile than other procedures 3. This procedure, operating on the level closest to the parties to disputes, has the advantage of enabling the arbitrators to acquire a much greater familiarity with the characteristics of the particular industry or undertaking concerned than most courts or tribunal 4. The procedure is relatively quick when compared to ordinary courts or labour tribunals. It cut down delays and results in prompt settlement of differences. 5. It is informal in character and on that account as well, because the disputes are handled by the parties themselves often without option to lawyers, it tends to be less expensive than other procedures

Disadvantages of Arbitration:
1. It deprives the labour of its rights to go on strike 2. Judgment is often arbitrary and ill-advised as the arbitrators are not well versed in the economic and technical aspects of industry 3. Arbitrators are often biased against labour and their award is, therefore , usually not in favor of the labour

4. Delay often occurs in arriving at the award and settlement of disputes. This leads to breakdown in the morale of members
5. Its availability leads to less dependence on negotiation

6. Too much of arbitration is not a sign of healthy relationship

Adjudication
The Industrial Dispute Act 1947 provides Three tier system of adjudication 1.Labour Courts 2.Industrial Tribunal 3. National Tribunal

Labour Courts
- One or more labour courts may be constituted by the appropriate

government for adjudicating

Constitution: - Labour court shall consist of one person only - Person - either as high court judge (or) District court judge for not less than 3 yrs or held judicial office in India not less than 7 years . - He cant continue after the age of 65
Duties of Labour court : 1. To hold adjudication proceedings quickly 2. Submit the award to the appropriate government on conclusion of the proceedings 3. Dealing with disputes which arises in a day to day working environment

Jurisdiction:
1. The Propriety or legality of an order passed by an employer under the standing orders. 2. The application and interpretation of standing orders 3. Discharge and dismissal of workmen, including reinstatement of , or grant of relief to workmen wrongfully dismissed. 4. Withdrawal of any customary or privilege

5. Illegality or otherwise of a strike or lockout

6. All matters other than those specified in the third schedule to the act

INDUSRIAL TRIBUNAL
- The appropriate government may appoint one or more industrial tribunals for adjudication of industrial dispute.

-The matters which are in the form of new demands and give rise to industrial disputes which affect the working of a company or industry are usually referred to an industrial tribunal .
- Industrial tribunal may be appointed for a limited period on an ad hoc basis or permanently

Constitution: The person should have worked as judge of high court or As district court judge for not less than 3 years or has held the office of the chairman or any other member of Labour Appellate Tribunal for period of not less than 2 years

Constitution
-Government can also appoint two persons as assessors if needed, to advice the tribunal

Function: Though its is not a judicial function like court , the functions and duties are similar.
It may create new obligations

Modify contracts in the interest of industrial peace

To protect legitimate trade union activities To prevent unfair practice and victimization

To give award based on circumstances peculiar to each dispute

Jurisdiction: It has jurisdiction over any matter specified in the second schedule or third schedule Matters specified under third schedule are: 1. Wages , including the period and mode of payment 2. Compensatory and other allowances 3. Hours of work and rest intervals

4. Leave with wages and holidays

5. Bonus, profit sharing, PF and Gratuity 6. Classification of Grades

7. Rules of discipline
8. Rationalization 9. Retrenchment of workmen and closure of establishment

National Tribunals
The central government constitute one or more national tribunals for adjudication of industrial disputes . Any disputes which is of national importance or are of such nature that industrial establishments situated in more than one state are likely to be interested in , or affected by ,such disputes. Constitution: Only one person will be appointed by the Central Government He should have worked as a high court judge or has the office of the Chairman or any other member of Labour Appellate Tribunal for a period of not less than 2 years. Two Assessors can be appointed to advice the National tribunal

Criticisms against adjudication: 1. Adjudication promotes and prolongs Industrial disputes 2. Adjudication hampers the development of Industrial democracy 3. It kills collective bargaining and replaces it with litigation 4. Exposes workers to arbitrary restraints and penalties before trial and correction 5. Political interventions on the settlement

Suggestions to make adjudication effective:

Permanent machinery independent of administration

Industrial Relation Commission should be appointed and It should be in each state for settlement of disputes for which the state government is the appropriate authority
IRC should be given authority in all the areas like conciliation, arbitration and adjudication Smaller units or where unorganized workers are involved the labour commissioner should intervene