What is Labour Law?

Wikipedia, the internet encyclopedia defines labour law as Labour Law is the body of laws, administrative rulings, and precedents which address the relationship between and among employers, employees, and labor organizations, often dealing with issues of public law. The terms Labour Laws and Employment Laws, are often interchanged in the usage. This has led to a big confusion as to their meanings. Labour Laws are different from employment laws which deal only with employment contracts and issues regarding employment and workplace discrimination and other private law issues. Employment Laws cover broader area than labour laws in the sense that employment laws cover all the areas of employer/employee relationship except the negotiation process covered by labour law and collective bargaining. Labour Laws harmonize many angles of the relationship between trade unions, employers and employees. In some countries (like Canada), employment laws related to unionised workplaces are different from those relating to particular individuals. In most countries however, no such distinction is made. The final goal of labour law is to bring both the employer and the employee on the same level, thereby mitigating the differences between the two ever-warring groups. Origins of Labour Laws: Labour laws emerged when the employers tried to restrict the powers of workers' organisations and keep labour costs low. The workers began demanding better conditions and the right to organise so as to improve their standard of living. Employers costs increased due to workers demand to win higher wages or better working conditions. This led to a chaotic situation which required the intervention of Government. In order to put an end to the disputes between the ever-warring employer and employee, the Government enacted many labour laws. In India the labour laws are so numerous, complex and ambiguous that they promote litigation rather than the resolution of problems relating to industrial relations. The labour movement has contributed a lot for the enactment of laws protecting labour rights in the 19th and 20th centuries. The history of labour legislation in India can be traced back to the history of British colonialism. The influences of British political economy were naturally dominant in sketching some of these early laws. In the beginning it was difficult to get enough regular Indian workers to run British establishments and hence laws for chartering workers became necessary. This was obviously labour legislation in order to protect the interests of British employers. The British enacted the Factories Act with a really self-centered motive. It is

well known that Indian textile goods offered serious competition to British textiles in the export market. In order to make India labour costlier, the Factories Act was first introduced in 1883 because of the pressure brought on the British parliament by the textile moguls of Manchester and Lancashire. Thus we received the first stipulation of eight hours of work, the abolition of child labour, and the restriction of women in night employment, and the introduction of overtime wages for work beyond eight hours. While the impact of this measure was clearly for the welfare of the labour force the real motivation was undoubtedly the protection their vested interests. India provides for core labour standards of ILO for welfare of workers and to protect their interests. India has a number of labour laws addressing various issues such as resolution of industrial disputes, working conditions, labour compensation, insurance, child labour, equal remuneration etc. Labour is a subject in the concurrent list of the Indian Constitution and is therefore in the jurisdiction of both central and state governments. Both central and state governments have enacted laws on labour issues. Central laws grant powers to officers under central government in some cases and to the officers of the state governments in some cases. Classification of Various Labour Laws: There are over 45 legislations on labour from the Central Government and the number of legislations enacted by the State Governments is close to four times that of the Central Acts. Labour Laws can be classified into the following eight categories: (i) (ii) (iii) (iv) (v) (vi) (vii) Laws related to Industrial Relations Laws related to Wages Laws related to Specific Industries Laws related to Equality and Empowerment of Women Laws related to Deprived and Disadvantaged Sections of the Society Laws related to Social Security Laws related to Employment & Training

(viii) Others. Laws related to Industrial Relations

1 2 The Trade Unions Act, 1926 The Industrial Employment (Standing Orders) Act, 1946

The Industrial Employment (Standing Orders) Rules, 1946 3 The Industrial Disputes Act, 1947

Laws related to Wages

1 The Payment of Wages Act, 1936 The Payment of Wages Rules, 1937 2 The Minimum Wages Act, 1948 The Minimum Wages (Central) Rules, 1950 The Working Journalist (Fixation of Rates of Wages) Act, 1958 Working Journalist (Conditions of service) and Miscellaneous Provisions Rules, 1957 The Payment of Bonus Act, 1965 The Payment of Bonus Rules, 1975

Laws related to Specific Industries 1 2 3 4 5 The Factories Act, 1948 The Dock Workers (Regulation of Employment) Act, 1948 The Plantation Labour Act, 1951 The Mines Act, 1952 The Working Journalists and other Newspaper Employees (Conditions of Service and Misc. Provisions) Act, 1955 The Working Journalists and other Newspaper Employees (Conditions of Service and Misc. Provisions) Rules, 1957 6 7 8 9 10 The Merchant Shipping Act, 1958 The Motor Transport Workers Act, 1961 The Beedi & Cigar Workers (Conditions of Employment) Act, 1966 The Contract Labour (Regulation & Abolition) Act, 1970 The Sales Promotion Employees (Conditions of Service) Act, 1976 The Sales Promotion Employees (Conditions of Service) Rules, 1976 11 The Inter-State Migrant Workmen (Regulation of Employment and Conditions of Act, 1979

Service) 12

The Shops and Establishments Act

Laws related to Equality and Empowerment of Women 1 2 The Maternity Benefit Act, 1961 The Equal Remuneration Act, 1976

Laws related to Deprived and Disadvantaged Sections of the Society 1 2 The Bonded Labour System (Abolition) Act, 1976 The Child Labour (Prohibition & Regulation) Act, 1986

Laws related to Social Security 1 2 3 4 The Workmens Compensation Act, 1923 The Employees State Insurance Act, 1948 The Employees Provident Fund & Miscellaneous Provisions Act, 1952 The Payment of Gratuity Act, 1972

Laws related to Employment & Training 1 The Employment Exchanges (Compulsory Notification of Vacancies) Act, 1959 The Employment Exchanges (Compulsory Notification of Vacancies) Rules, 1959 2 The Apprentices Act, 1961

Others Labour Jurisdiction-State vs Central Labour Policy of India Labour policy in India has been evolving in response to specific needs of the situation to suit requirements of planned economic development and social justice and has two-fold objectives, viz., maintaining industrial peace and promoting the welfare of labour. Labour Policy Highlights
Creative measures to attract public and private investment. Creating new jobs New Social security schemes for workers in the unorganised sector. Social security cards for workers.

Unified and beneficial management of funds of Welfare Boards. Reprioritization of allocation of funds to benefit vulnerable workers. Model employee-employer relationships. Long term settlements based on productivity. Vital industries and establishments declared as `public utilities`. Special conciliation mechanism for projects with investments of Rs.150 crores or more. Industrial Relations committees in more sectors. Labour Law reforms in tune with the times. Empowered body of experts to suggest required changes. Statutory amendments for expediting and streamlining the mechanism of Labour Judiciary. Amendments to Industrial Disputes Act in tune with the times. Efficient functioning of Labour Department. More labour sectors under Minimum Wages Act. Child labour act to be aggressively enforced. Modern medical facilities for workers. Rehabilitation packages for displaced workers. Restructuring in functioning of employment exchanges. Computerization and updating of data base. Revamping of curriculum and course content in industrial training. Joint cell of labour department and industries department to study changes in laws and rules. The Industrial Disputes Act, 1947 Preliminary: The Industrial Disputes Act, 1947 extends to whole of India. It came into operation on the first day of April, 1947. This Act replaced the Trade Disputes Act of 1929. The Trade Disputes Act imposed certain restraints on the right of strike and lockout in Public Utility Services. But no provision was existing for the settlement of Industrial Disputes, either by reference to a Board of Conciliation or to a Court of Inquiry. In order to remove this deficiency, the Industrial Disputes Act, 1947 was passed. Scope and Objects (Sec. 1) , The objects of the industrial relation's legislation in general are to maintain industrial peace and, to achieve economic justice. . . The prosperity of any industry very much depends upon its growing production. Production is possible when the industry functions smoothly without any disturbances. This means industrial peace through harmonious relationship between labour and management. Therefore every industrial relations legislatiqn necessarily aims at providing conditions congeniel to the industrial peace.Economic justice is another objective of industrial legislation. Almost all industrial interuptions in production are due to industrial disputes. Dissatisfaction with the existing economic conditions is the root cause of industrial disputes. The labour demands for fair return is expressed in varied forms; e.g. increase in wages, resistance to decrease in wages and grant of allowance and benefits etc. If a labourer wants to achieve these gains individually, he fails because of his weaker bargaining power against the sound economic footing of the management. Therefore, the economic struggle of labour with capital can be fought collectivity by organised labours. It is with this object to provide economic justice by ensuring fair return to the labour, the State, being the custodian of public interest, intervenes by 'State legislation' Economic justice has also been ensured to the people of India by our Constitution. Thus the main object of all labour legislation is to ensure fair wages and to prevent disputes so that the production might not be adversely affected2. The principal objects of Industrial Disputes Act as analyzed and interpreted by the Supreme Court are as follows.3

(1) The promotion of measures for securring and preserving amity and good relations between employers and workmen; (2) Investigation and settlement of industrial dispute between employers and employers, employers and workmen, or between workmen and workmen with a right of representation by a registered Trade Union or . Federation of Trade Unions or Association of Employers or a Federation of Association of Employers. (3) The prevention of illegal strikes and lock-outs; (4) Relief to workmen in the matter of lay-oft, retrenchment and closure of an undertaking. . (5) Collective bargaining. Main Features or Characterstics of the Act:: Some of the important features of the Act may be summearised as below: 1. Any industrial dispute may be referred to an industrial tribinal by mutual consent of paries to dispute or by the State Government, if it deems expedient to do so. 2. An award shall be binding on both the parties to the dispute for the operated period, not exceeding one year; 3. Strike and lockouts are prohibited during: (a) The pendency of conciliation and adjudication proceedings; (b) the pendency of settlements reached in the course of conciliation proceedings, and . (c) the pendency of awards of Industrial Tribunal declared binding by the appropriate Government. 4. In public interest or emergency, the appropriate Government has power to declare the transport (other than railways), coal, cotton textiles, food stuffs and iron and steel industries to be public utility services for the purpose of the Act, for a maximum period of six months. 5. In case of lay-oft or retrenchment of workmen, the employer is requested to pay compensation to them. This provision stands in the case of transfer or closure of an undertaking. 6. A number of authorities (Works Committees, Conciliation Officers, Board of conciliation, Courts of Inquiry, Labour Courts, Tribunal and National Tribunal) are provided for settlement of Industrial disputes. Although the nature of powers, functions and duties of these authorities differ from each other, everyone plays important role in ensuring industrial peace. (k) Industrial Disputes - Industrial Dispute is : (1) a dispute or difference between (a) employers and employers, or (b) employers and workmen, (c) workmen and workmen; . . (2) the dispute or difference should be connected with (a) employment or . non-employment, or (b) terms of employment, or (c) conditions of labour of any person; . (3) the dispute may be in relation to any workman or workmen or any other person in whom they are interested as a body. Difference between lock-out and retrenchment: (1) Temporary or permanent: Lockout is temporary measure, while retrenchment is permanent. (2) Relationship: In lockout the relationship of employer and employee is only suspended; it does not come to an end. In retrenchment such a relationship is severed at the instance of the employer. (3) Motive: Lockout is with a motive to coerce the workmen; the intention of retrenchment is to dispense with surplus labour.

(4) Trade dispute: Lockout is due to an industrial dispute, whereas in case of retrenchment, there is no such dispute 1. Work committee (Sec.3) The works committee is considered to be powerful social institution only to secure cooperation between workers and employers, but to make the will of the employees effective on the management. According to sec.3 of the Industrial Disputes Act, 194"1, in the case of an industrial establishment in which 100 or more workmen are employed or have been employed oh any day in the preceding 12 months, the appropriate Government may, by general or special order, require the employer to constitute a Works committee consisting of representatives of employers and workmen engaged in the establishment. The number of representatives of workmen on Works Committee shall be not being less than that of the representatives of the employers. The representatives of the workmen shall be chosen from among the workmen in consultation with their trade union, if any registered under the Indian Trade Union Act.1926. . The duties of the Works Committee are to promote measures for securing and preserving amity and good relations between the employers and workmen and to comment upon matters of their interest or concern and to endeavour to compose any material difference of opinion in respect of matters of common intents or concern of employers and workmen. 2. Conciliation Officers (Sec.4) The appropriate Government may by notification in the official gazette, interest appoint conciliation officers for any specified area or for one or more specified industries, either permanently or for a limited period of time. Conciliation officers are charged with the duty of holding conciliatory proceedings for the purpose of bringing about a fair and amicable settlement of any industrial dispute. The jurisdiction, powers and other matters in respect of the Conciliation Officer ~hall be published in the Gazette Powers of Conciliation Officer: According to Sec.11 of the Act, conciliation officer may, for the purpose of inquiry into any existing or apprehended industrial dispute, after giving reasonable notice, enter the premises occupied by any establishment which the dispute relates. He may call for and inspect any document which he has ground for considering to be relevant to the industrial dispute or be necessary for the purpose of verifying the implementation of any award or carrying out any duty imposed on him under the Act. and for the aforesaid purposes. He will have the same powers as one vested in a Civil Court, in respect of compelling the production of documents. Under Sec 11(6), Conciliation Officers are members of Board or Court and the Presiding Officer of Labour Court Tribunal or National Tribunal shall be deemed to be public servants within the meaning of Sec.21 of IPC. Duties of Conciliation Officers (sec.12): For the purpose of bringing about fair and amicable settlement of an industrial dispute, the Conciliation Officer is required to discharge the following duties- . (1) where any industrial dispute exists or is apprehended, the Conciliation Officer, shall hold conciliation proceedings. He will interview both the workmen concerned with the dispute and endeavour to bring about a settlement. (2) The conciliation Officer shall, for the purpose of bringing about a settlement of the dispute, investigate the dispute and all matters affecting the merits and the right settlement thereof and may do all such things as he thinks fit for the purpose of inducing the parties to come to a fair and amicable settlement of the dispute. . (3) If a settlement of the dispute or of any of the matters in dispute is arrived at in the course of the conciliation proceedings, the Conciliation Officer shall send a report thereof to the settlement singed by the parties to dispute. .

(4) If no such settlement is arrived at, the Conciliation Officer shall, as soon as practicable after the close of the investigation, send to the appropriate Government a full report setting forth the steps taken by him for ascertaining the facts and circumstances relating to the dispute and for bringing about a settlement thereof, together with a full statement of such facts and circumstances, and the reasons on account of which, in his opinion, a settlement could not be arrived at. (5) The report must be submitted within 14 days of the commencement of the conciliation proceedings or within such shorter period as may be fixed by the appropriate Government: provided that, subject to the approval of the Conciliation Officer, the time for the submission of the report may be extended by such period as may be agreed upon in writing by all the parties to the dispute. (6). If, on a consideration of the report in respect of failure of settlement, the appropriate Government is satisfied that there is a case for reference to Board, Labour Court, Tribunal or National Tribunal, it may make such reference. Where the Government does not make such a reference, it shall record and communicate to the parties concerned it's reasons thereof 3 Board of Conciliation (Sec.5) The appropriate Govt. may as occasion arises by notification in the in the Official Gazette constitute a Board of Conciliation for promoting the settlement of an industrial dispute. A Board shall consist of a Chairman and two or four other members, as the appropriate Government thinks fit. The Chairman shall be an independent person and shall be appointed on the recommendation of the party they represent. The quorum for a meeting is two where the total number is three, and three where the number is five. A Board, having a quorum, may act not withstanding the absence of the chairman or any of its members, or any vacancy in it's number. But; if the Government informs the board that the services of the Chairman or any other member have ceased to be available, the board must not act until a new Chairman or member has been appointed. Powers of Conciliation Officer Conciliation Officer has all powers of a Civil Court when trying a suit in respect Duties of Conciliation Officer (Sec.13) Conciliation Officer has to endeavour to bring about a settlement of a dispute referred to him and to do anything to induce the parties to come to a fair and amicable settlement. Where a settlement is reached a similar report and a memorandum of settlement have to be submitted to the appropriate Government. But in case of failure, apart from furnishing all the details as required in the case of a report, by a Conciliation Officer, he is also required to submit his recommendations for tha determination of the dispute. The time limit prescribed for submission of such reports is 2 months of the date on which the dispute was referred to him or within such shorter period as may be fixed by the appropriate Government or all the parties to the dispute may, however, further extend the period by agreement in writing. Where a dispute, in which the Board has failed to bring about a settlement, relates to a public utility service and the Government does not refer it to a Labour Court, Tribunal or National Tribunal, he must inform the parties concerned the reasons for not doing so. Courts of Inquiry (Sec.G) The appropriate Government may, as occasion arises, by notification in the official Gazette, constitute a Court of Inquiry for inquiring into any matter appearing to be connected with or relevant to an industrial dispute. Such a Court may consist of one or more independent persons, as the Government may appoint. Where it consists of more than one member, one of them shall be appointed as Chairman. The Court having the prescribed quorum may act even if the Chairman or a member is absent; but not if the services of the Chairman have ceased to be available, and on other Chairman has beer' appointed. The Court shall inquire into the matters referred to it and report thereon to the appropriate Government within 6 months from the date of commencement of the inquiry.

Members of Court of Inquiry shall deemed to be public servants within the meaning of Sec. 21 of IPC. The Court of Inquiry, if it so thinks fit, appoint one or more persons having special knowledge of the matter under consideration as assessor or assessors to advise it In the proceeding before it. On a perusal of the relevant Sections 22, 23 and 33 of the Act. relating to the Court during the pendency of a proceeding before a Court of Inquiry, the following right remain unaffected, such as: (i) The right of a workman to go on strike (ii) The right of an employer to lookout his business. and (iii) The right of the employer to dismiss or otherwise to punish the workman in certain cases under Sec.33 Duties of Courts of Inquiry (Sec. 14) The Court of Inquiry of shall inquire into the matters referred to it and the report of Inquiry thereon be presented before the appropriate Government; ordinarily within a period of 6 months from the commencement of inquiry. The report of the Court of Inquiry shall be in writing and be signed by all the members of the Court, provided that a member may record a minutes of dissent also. Labour Court 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 of the following matters or for performing such other function as may be assigned to them under the Act. The functions of the Labour Court as provided in the . Act. are: (i) Adjudication of industrial disputes relating to any matter specified in the Second Schedule (ii) Performing of such other functions as may be assigned to them under this Act. 1 he following matters are specified in the Second Schedule, namely (i) The propriety or legality of an order passed by an employer under Standing Orders; . (ii) The application and interpretation of Standing Orders; (iii) discharge or dismissal of workman including re-instatement of, or grant of relief to; workmen wrongfully dismissed; (iv) withdrawal of any customary concession or privilege; (v) illegality or otherwise of a strike or lockout; and (vi) all matters other then those specified in the Third Schedule. . According to sec.? (2) a Labour Court shall consist of one person only who shall be appointed by the appropriate Government. But no person shall be appointed as 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 not less then 3 years been a District Judge; or (c) he has held the office of the Chairman of any other member of any tribunal, for a period of not less then two years; or (e) he has been the presiding Officer of a Labour Court constituted under any provincial Act for not less than five years. Powers of the Labour Court (Sec. 11) Powers of the Labour Court to give appropriate relief in case of discharge or dismissal of workman are as under. (1) Subject to any rule that may be made in this behalf, the labour Court may follow such procedure that it may think fit. (2) The Presiding Officer of the Court may, for the purpose of inquiry into any existing or apprehended dispute, enter into the premises occupied by any establishment to which the dispute relates. (3) The Labour Court shall have all the powers as are vested to a Civil Court. (4) If it thinks fit, appoint one or more persons, having special knowledge.

of the matter under consideration, as an assessor to advise it in the proceedings before it. Duties of Labour Court (Sec. 15) Where an industrial dispute has been referred to Labour-Court, for adjudication, it shall hold its adjudication expeditiously and shall, submit its award to the appropriate Government. The award of Labour Court shall be in writing and be signed by its Presiding Officer (Sec.16) Every award of Labour Court, shall within a period of 30 days from the date of its receipt by the appropriate Government, be published by if in the official Gazette. The award published by the. appropriate Government shall be final and binding on the parties to dispute. Sec.17 -A provides that an award (including arbitration award) shall become enforceable on the expiry of 30 days from the date of its publication under Sec. 17. The award shall not become enforceable on the expiry of 30 days: . (a) if the appropriate Government is of opinion, in any case where the award has been given by a Labour Court or Tribunal in relation to an industrial dispute to which it is a party that it will be in expedient to give effect to the whole or any part of the award on public grounds effecting: . (i) national economy, (ii) social justice. . (b) if the Central Government, in any case where the award has been given by a National Tribunal, on similar grounds in of the opinion that it would be in expedient to give effect to the whole .or part of the award. For the purpose of stopping the enforcement of any award, a notification in the Official Gazette is necessary. Industrial Tribunals (Sec. 7 A) . Industrial Tribunals were created for it's first time by the Industrial Dispute Act.1947. Commenting upon the starts of these tribunal, the Supreme Court has observed that tribunals under the Act. are invested with many trappings of a Court; but do not have the same status as courts'. The Tribunal is the judicial body or at any rate, a quasi-judicial body2. The appropriate Government may by notification in the Official Gazette, constitute one or more industrial tribunals for the adjudication of industrial dispute s relating to any matters specified above as in the case of Labour Court, or the following matters, namely (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, provident fund and gratuity; (6) Shift working otherwise than in accordance with standing orders; (7) Classification by grades; (8) Rules of discipline; (9) Rationalization; (10) Retrenchment of workmen and closure of establishment; and (11) Any other matter that may be prescribed. A Tribunal shall consist of one person only to be appointed by the appropriate Government. A person to be appointed as a Presiding Officer of a Tribunal must .be, or must have been, a judge of a high Court; or if he has for a period of not less than three years, be a District Judge or on Additional District-Judge. Only experienced persons of high integrity can be appointed as Providing Officer of the Tribunal. It is provided by Sec.7-A(4) that the Appropriate Government, if thinks fit, may appoint two persons as assessors to advise the Tribunal in the proceedings before it. Industrial Tribunals shall have the same power vested in a Civil Court when trying a suit, such as: (a) enforcing the attendance of any person and examining him on oath, (b) compelling the production of

document and material object, (c) issuing commissions for the examination of witness and any such matters as may be prescribed.. . National Tribunals (Sec 78) . .. 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. A National Tribunal shall consist of one person only to be appointed by the Central Government. In order to be qualified as a Presiding Officer of a National Tribunal, a person must be or must have been a Judge of a High Court, or must have held the office of the Chairman or any other member of the Labour Appellate Tribunal for at least 2 years. The Central Government may appoint two assessors to advise the National Tribunal, in proceeding before it. . Disqualifications for Presiding Officiers of Labour Courts, Tribunals And National Tribunals (Sec.7 - C). 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. Filling of Vacancies (Sec. 8) If a vacancy occurs in the office of the Presiding Officer of a Labour Court, Tribunal or National Tribunal, the appropriate Government shall appoint another person in accordance with the provisions of the Act. A vacancy may arise due to transfer resignation or acquisition of any disqualification as provided in Sec. 7 -C of the Act. Finality of orders constituting boards (Sec. 9) The main object of enacting Sec. 9 of the Industrial Disputes Act is to make immune, any order of the appointment made under Sections 5 to 7 of the Act, from being called in question. Therefore, no question can be raised whether an appointment was legally and properly made or not. Sec. 9 (1) of the Act provides that no order of the appropriate Government or of the Central Government appointing any person as the Chairman or any other member of the Board or Court, or as the Presiding officer of a Labour Court, Tribunal or National Tribunal shall be called in question in any manner on the ground of merely of the existence of any vacancy in, or defect in the constitution of such Board or Court. Reference to grievance settlement authorities (Sec. 9-C) A new Chapter II - B has been instead by Industrial Disputes (Amendment) Act, 1982 whereby a new Sec. 9 - C has- been added But this Chapter has not been enforced till now. According to Sec. 9 - C: (1) The employer in relation to every industrial establishment in which 50 or more workmen are employed or have been employed on any day in the preceding 12 months shall provide for a grievance settlement authority for settlement of industrial disputes with an individual workman employed in the establishment in accordance with the rules made' in this behalf under the Act. .(2) Where an individual dispute connected with an individual workman arises in an establishment referred to in sub. sec. (1) a workman or any trade union cf workmen of which such workman is member, may refer in such manner as may be prescribed such dispute to Grievance Settlement Authority provided for, by the employer, for settlement. (3) The Grievance Settlement Authority shall follow such procedure and complete its proceedings within such period as may be prescribed.

(4) 'No reference shall be made under Chapter III with respect to any dispute referred to in this section unless such dispute has been referred to the Grievance Settlement Authorities concerned and the decision of the Grievance Settlement Authority is not acceptable to any of the parities to the dispute. Powers of National Tribunals (Sec.11) 1. Subject to any rules that may be made in this behalf, National Tribunal shall follow such procedure as the arbitrator or other authority concerned may think fit. 2. The presiding officer of National Tribunal may for the purpose of inquiry into any existing or apprehended industrial dispute, after giving reasonable notice, enter the premises occupied by any establishment to which the dispute relates. 3. Every national Tribunal shall have the same powers as are vested in only experienced persons of high integrity can be appointed as presiding offer of the TribunaL It is. provided by Sec. 7 - A (4) that the Appropriate Government of it thinks fit may appoint two persons as assessors to advise the Tribunal in the proceedings before It a Civil Court under CPC, 1908 when trying a suit, in respect of the fo!!owing matters, viz.,-(a) enforcing the attendance of any person and examining him on oath; (b) compelling the production of document and material objects; (c) Issued commissions for the examination of witness; (d) in respect of such other matters as may be prescribe: and every by a Board, Court, Labour Court, Tribunal or National Tribunal shall be deemed to be a judicial proceeding within the meaning of Sec. 193 arid 228 of the Indian Penal Code. (4) National Tribunal may, if it so thinks fit, appoint one or more persons having special knowledge of the matter under consideration as assessor or assessors to advise it in the proceeding before it. (5) All the Presiding Officers of a National Tribunal shall be deemed to be public servants within the meaning of Sec. 21 of the Indian Penal Code. (6) Subject to any rules made under this Act, the costs of, and incidental to, any proceeding before a National Tribunal shall be in the discretion of that National Tribunal, and shall have full power to determine by and to whom and to what extent and subject to what conditions, of any, such costs are. top be paid, and to give all necessary direction for the purpose aforesaid and such costs may, on application made to the .appropriate Government by the person entitled, be recovered by the Government in the same manner as an arrear of land revenue. (7) Every National Tribunal shall be deemed to be a Court for the purpose of Sec. 480, 482 and 484 of the Criminal Procedure Code, 1948. Note: The procedure and power of different authorities laid down under Sec. 11 of the Act, are equally applicable in the case of Conciliation Officers / Board, Court of Inquiry, Labour Court, And Tribunals. Persons on whom settlement and awards are binding (Sec. 18) For this purpose, settlements are classified into two catagories, namely (i) Settlement arrived at otherwise than in the course of conciliation proceedings, i.e. without the aid of statutory agency; and (ii) settlement arrived at in the course of conciliation proceedings; Le. with the aid of statutory agency. In the first case, a settlement under Section 18(1) arrived at by agreement between the employer and workmen otherwise than in the course of conciliation proceedings, shall be binding on the parties to the agreement. But any such settlement; in order to be binding must be signed by the parties there to in the manner prescribed by rule and a copy of it must also be sent the appropriate Government. . In the second case Sec. 18 (2 and 3) provide that an arbitration award which has become enforceable shall be binding on the parties to the agreement who referred the disJ3ute to the arbitration. This section 18(3) provides that (i) a settlement arrived at in the course of conciliation proceeding under this Act. (ii) an arbitration award in a case where a notification has been issued

under sub section (3-A) of Sec. 10-A; or (iii) an award of a Labour Court, Tribunal or National Tribunal which has become enforceable shall binding on; (a) all parties to the in industrial dispute. (b) all other parties summoned to appear in the proceedings as parties to the. dispute, (c) where a party referred to is an employer, his heirs, successors or assigns in respect of the establishment in which the dispute relates. (d) where a party referred to in clause (a) or (b) is composed of workmen, all persons who were employed in the establishment or part of the establishment, as the case may be, to which the dispute relates on the date of the dispute and all persons who subsequently become employed in that establishment or part there of. Certain matters to be kept confidential (Sec. 21) This section of the Act. provides that certain matters are to be kept confidential. Therefore, such things shall not be included in any report or award made under the Act. Any information obtained by a Conciliation Officer, Board, Court, Labour Court, Tribunal, National Tribunal or an Arbitrator in the course of any investigation on inquiry, which relates to a Trade Union on any individual business (whether carried on by a person, firm or company) which is not available otherwise than through the evidence given before any such authority, shall not be included in any report or award; if the parties concerned or in question has made a request in writing to treat such information as confidential. REFERENCE OF DISPUTES TO BOARDS, COURTS OR TRIBUNALS Section 10(1) of the Industrial Disputes Act.,1947 provides that where the appropriate Government is of the opinion that any industrial dispute exists or apprehended, it may, at any time: (a) refer the dispute to a Board of conciliation for promoting a settlement there of; or (b) refer any matter appearing to be Connected with or relevant to the dispute to a Court for Inquiry; or (c) refer the dispute or any matter appearing to be connected with, or relevant to the dispute to a Labour Court for adjudication provided the dispute relates to any matter specified in the Second Schedule; or (d) refer the dispute or any matter appearing to be connected with or relevant to the dispute to a Tribunal for adjudication, where it relates to any matter specified in the Second or Third Schedule., provided that: (i) where the dispute relates to any matter specified in the Third Schedule and is not likely to effect more than 100 workmen; the appropriate Government may make the reference to a Labour Court. (ii) where the dispute in relation to which the Central Government is the appropriate Government, it shall be competent for the Government to refer the dispute to a Labour Court / Tribunal constituted by the State Government (iii) where the dispute relates to a public utility service and a notice of strike or lockout under Sec. 22 has been the appropriate Government shall be competent to refer the dispute to a Labour Court or any Industrial Tribunal, Constituted by the Government. Under Sec.1 0(1-A), the Central Government may refer any dispute to a National tribunal for adjudication, if it is the opinion that: (i) any dispute exists or is appended; and (ii) the dispute involves any question of national importance; or (iii) the dispute is of such nature that industrial establishment situated in more than one State are likely to be interested in, or affected by such dispute; and

(iv) the dispute should be adjudicated by National Tribunal (the reference to National Tribunal shall be made by the Central Government only). Sec.10(3) of the Act. provides that where an industrial dispute has been referred to Board, Labour Court, Tribunal or National Tribunal, under Sec. 10 of the Act, the appropriate Government may issue an order prohibiting the continuance of any strike or lockout in connection with such dispute which may be in existence on the date of reference. Sec.10(6) of the Act. provides that where any reference has been made under sub-section (1-A) to a National Tribunal, then notwithstanding anything contained in this Act., no Labour Court or Tribunal shall have jurisdiction to adjudicate dicta upon any matter which is under adjudication before the National Tribunal. Sections 10 and 1 O-A are the alternative remedies to settle industrial dispute. Once the parties have chosen the remedy under Sec.1 O-A, the Government cannot refer the same dispute for adjudication under Sec. 10. If any such reference is made, it is invalid.1 Voluntary Reference of Disputes to Arbitration (Sec. 10-A) This section provides that where any industrial dispute exist or is apprehended, the employer and the workman agree to refer the dispute to arbitration, they may refer the dispute to arbitration: Such referen<?e by agreement may be made at any time before the dispute has been referred under Sec.1 0 a Labour Court, Tribunal or National Tribunal. The agreement to make a reference must be in writing. Sec. 10-A(1-A) provided that where an arbitration agreement provides for reference of the dispute to an even number of, arbitrators the agreement shall provide for appointment of another person as umpire who shail enter upon the reference if the arbitrators are equally divided in their opinion. Sec. 1 0-A(2) provides that an arbitration agreement referred to in sub-section (1) shall be in such form and shall be signed by the parties there to in such a number as may be prescribed. Under Sec. 10-A(3) copy of the arbitration agreement shall be forwarded to appropriate Government and the Conciliation Officer, and the appropriate Government shall within one month from the date of receipt of such copy publish. the same in the official Gazette. Under Sec. 10-A(4) the arbitrator or arbitrators shall investigate the dispute and submit to the appropriate Government the arbitration award signed by the arbitrator or all arbitrators as the case may be. Under Sec.(4-A): where an industrial dispute has been referred to arbitration and a notification has been issu8d, the appropriate Government may prohibit the continuance of any strike or lockout in connection with such dispute. The appropriate Government shall do so by issuing an order. Sub-sec.(5) provider that nothing in the Arbitration Act. 1940 shall apply to arbitration under this section. An arbitrator functioning under Sec.1 O-A of the Act is a statutory Tribunal. STRIKES AND LOCKOUTS IN INDUSTRIAL UNITS Strike is collective stoppage of work by workmen undertaken in order to bring pressure upon the employer. It is a spontaneous and concerted withdrawal of workmen from production. A strike in usually organized by common agreement on the part of the workers with a view to obtaining or resisting change to their conditions of work. Lockout is a weapon in the hands of the employer; which is used to curb the militant spirit of the workers. In Lock-out, an employer shuts down his place of business as a result of reprisal, or 2S an instrument of coercion or as a mode of exerting pressure upon the employees with a view it dictate his own terms to them. Strikes and lockouts have now become important factors in the employer employee relations. Prohibition of strikes and lockouts (Sec. 22 and 23) Sec.22 of the Industrial Disputes Act provides that: (1) No person employed in a public utility service go on strike in breach of contract:

(a) without giving notice of strike to the employer within six weeks before striking, or (b) within 14 days of giving notice, or (c)before the expiry of the date of strike specified in any such notice as aforesaid, or (d) during the pendency of any conciliation proceedings and 7 days after the conclusion of such proceedings. (2) No employer on any public utility service shall lockout any of his workmen (a) without giving them notice of lock-out as herein after provided within six weeks before locking out; or (b) within 14 days of giving such notice; or (c) before the expiry of the date of lockout specified in any such notice as aforesaid; or (d) during the pendency of any conciliation proceeding before Conciliation Officer and seven days after the conclusion of such proceedings. However, notice of strike or lockout will not be necessary where there is already in existence a strike or lockout in the public utility service. The employer in such a case must notify to concerned authority as may be appointed by the appropriate Government, of the declaration of a strike or lockout. The notice of strike or lockout shall be given by such number of persons in the prescribed manner [Sec.22(4&5)] General provisions of strikes and lockouts: Sec.23 of the Act provides that, "no workmen who is employed in any industrial establishment shall go on strike in breach of contract and on employer of any such workmen shall declare a lockout: (i) during the pendency of conciliation proceeding before a Board, and 7 days after its conclusion. (ii) during the pendency of proceeding before Labour Court, Tribunal or National Tribunal, and 2 months after its conclusion. (iii) during pendency of arbitration proceedings before an arbitrator and two months after completion of such proceedings, where a notification has been issued under Sub sec.(3-A) of Sec. 10-A; or (iv) during the period of which a settlement or award is in operation in respect of the matters covered by such settlement or award. Illegal strikes and Lockouts (Sec. 24) Sec. 24 of the Act provides that a strike or a lockout shall be illegal if it is: (a) commenced or declared in contravention of Sec. 22 or 23, and (b) continued in contravention of the prohibitory order made by appropriate Government after the dispute has been referred under Sec. 10(3) or sub-section( 4-A) of Sec.1 ()"A of the Act. Prohibition of financial aid to illegal strikes and lockouts (Sec. 25) This section of the Act prohibits financial aid to illegal. strikes and lockouts. This section has the following ingradients: . (1) spending or applying money: (2) money spent or applied in direct furtherance or support of an illegal strike, Punishments (Sec. 28) For any violation of provisions of Sec. 25, punishment is imposed by Sec. 28 of the Act. According to the provision, even a person who is not a workmen can be penalized violating the provisions of Sec. 25. The effect of Sections 25 and 28 is the prosecution to support a conviction for breach of Sec.25 must prove that:

(i) the strike or lock-out in question was illegaL (ii) the accused had knowledge that (a) the strike or lockout was iIIegal and (b) the money spent or applied by him was in direct furtherance or support of a strike or lockout. (iii) that the money was actually spent or applied by the accused. However, assistance to strikers in any other from, for example, supplying clothes, food, etc. is not prohibited under Sec. 25 of the Act. UNFAIR LABOUR PRACTICES No employer or workmen or a Trade Union, whether registered under Trade Union's Act, 1926, or not, shall commit any unfair labour practice (Sec. 25-T) Any person who commits any unfair labour practice shall be punishable with imprisonment for a term which may extend to six months or with fine which may extend to Rs. 1000/- or with both. Unfair labour practices on the Part of Employers and Trade Unions of Employers (as per New Schedule V added with Industrial Disputes (Amendment) Act, 1982). As defined in Schedule V, unfair trade practices are: 1. To interfere with, restrain from, or coerce, workmen in the exercise of their rights to organise from, join or assist a trade union or to engage in concerted activities for the purposes of collective bargaining or other mutual aid or protection, that is to say 10. To recruit workmen during a strike which is not an illegal strike. 11. Failure to implement award, settlement or agreement. 12. To indulge in acts of force or violence. 13. To refuse to bargain collectively in good faith with the recognised trade unions. Power to make rules (Sec. 38) The appropriate Government may make rules for the purpose of giving effect to the provisions of this Act. Such rules may provide for all or any of the following matters; namely (a) the powers and procedure of Conciliation Officers, Boards, Court, Labour Courts, Tribunals or National Tribunal, including rules as to the summoning of witness, the production of document concerned. (aa) the form of arbitration agreement. (aaa) the appointment of assessors in proceeding under this Act, (ab) the constitution of Grievance Settlement Authorities. (b) the constitution and functions of, and the filling of vacancies in Works Committees, and the procedure to be followed by it. (c) the allowances admissible to members of Courts and Boards and Presiding Officers of labour Courts, Tribunals and National Tribunal. (d) the ministerial establishment which may be allotted to a Court, Board, Tribunal or National Tribunal. (e) the manner in which and the persons by and to whom notice of strike or lockout may be given and mode of communication. (f) the conditions subject to which parties may be represented by legal practitioners in proceeding under this Act before a Court, Labour Court, Tribunal or National Tribunal (g) any other matter which is to be or may be prescribed. Causes of Industrial Disputes The problem of industrial unrest is inherent in the industrial system. The main features of industrial work anywhere are that (a) it involves division of labour; (b) it is a group activity; (c) it is carried under control. Broadly speaking, the causes of industrial disputes can be classified as:

1. Economic causes 2. Management causes, and 3. Political causes A brief description of each, is given below: 1. Economic causes Economic causes include questions pertaining to wages, bonus and allowances, retrenchment of workmen by the employer retionalisation and automation, faulty retrenchment system, leave and so on. Low wages, irrespective of rising prices, demand for a rise in D.A., intolerable working and living conditions, issues pertaining to hours of work, etc. are some other economic causes that provoked a number of strikes in India. The worker factors responsible for industrial unrest have been: (1) Inter union rivalries, (2) Economic and political environment that exercise adverse effects on workers attitudes, and (3) Indiscipline amongst workers. 2. Managerial causes Some of the causes of discontent are inherent in the industrial system, itself such as: (1) Workers do not get any opportunity for self-expression; or (2) Their social needs are not fulfilled; that is. the position of workers within in informal qroups formed in jndustrial undertakings and problems of conflict within the groups may not be taken into account. (3)Lack of communication on one hand, between the workers and management may turn petty quarrels into industrial unrest and on the other, the problem of discipline in industrial units may assume serious dimensions. The other managerial factors responsible for industrial unrest have been as 1. Mental inertia on the part of management and labour. 2. Management's general attitude of hatred towards their workers, 3..Lack of competence on the supervisor and other managers in human relations. 4..Management's desire to pay comparatively lesser amount of bonus or dearness allowance against the desire of workmen. 5. .Efforts to introduce modernisation without prior or appropriate environment. 6. Excessive work load and inadequate welfare facilities. 7. Defective policy of lay-off. 8. Denial of the workers right to recognize union. 9. Unfair practices like victimization or termination of services without assigning any reasons. 10.Lack of definite wage policy and stabilization of prices. 12. Lack of a proper policy of union recognition. 13.Denial of worker's right to organise, etc. Political causes Industrial disputes are pertly political also. Some important political strikes I organized by industrial workers in India. Prior to independence, as early , there was a mass strike in Mumbai against the sentence of imprisonment strikes occurred on account of actions taken against, for participating in demonstrations, trial of political leaders, etc. After the independence also, some stirkes have occurred owing to agitation's of political parties on questions like re-organisation ation of States, National Language, etc. Percentage distribution of industrial disputes by causes as published by the Ministry of Labour, Impact/Effect/Consequences of Industrial Disputes The consequences of Industrial disputes are many. A brief description is given

(1) Disturb the economic, social and political life of a country: When labour and equipment in the whole or any part of an industry are rendered idle by strike or lockout, national dividend suffers in a way that injures economic welfare. Loss of Output: (2)Loss of Output : Loss of output in an industry which is directly affected by a dispute, but other industries are also affected adversely, as stoppage of work in one industry checks activity in other industries too. (3) Decline in the demand for goods and services: Strikes reduces the demand for the goods that other industries make, if the industry in which stoppage has occured is one that furnishes raw materials semifinished goods or service largely used in the products of other industries. (4) Lasting loss to the workers: There is a lasting injury to the workers in the form of work being interrupted due to the strikes which involves a loss of time which cannot be replaced. The wages are lost and the workers can least afford to lose them specially when the average earning of a worker is not very high. (5) Increase in indebtedness : This increases the indebtedness among the workers and not only the old debts become heavier but fresh debts may also be incurred. (6) Loss of health of family members : The workers and their family members also suffer from loss of health due to mental warrious resulting from loss of wages. (7) Problem to consumers : Strikes and lockouts create problem to consumers also. Articles of their requirements are not available in time, and the prices of such articles reach high due to black marketing activities. .. (8) Loss to the management/employer : When workers stop working, the plant and machinery remain idle. The fixed express are to borne by the employer even when the production stops. This way the employer suffers from great loss. (9) Bad effect on labour relations: Strikes and lockouts bring bad effects on industrial relations. With the result the workmen and the employer always be in mental tension. (10) Obstruction to economic growth: Strikes creates many kinds of violence which obstruct the growth of economy. PREVENTION AND SETTLEMENT OF INDUSTRIAL DISPUTES: Machinery for prevention of disputes in India: The frequency with which the strikes took place and the serious industrial and social dislocation which they cause has underlined the importance of preserving industrial peace. The methods for prevention of industrial disputes include broadly all such measures which directly or indirectly contribute towards improvement of Industrial relations. The prevention methods, therefore cover the entire field of relations between industry and labour which are described below: (1) Strong Trade Union (2) Profit Sharing and Co-partnership (3) Joint Consultation (4) Inrlustrial Employment Standing Orders (5) Code of Discipline (6) Collective Bargaining (7) Works Committees (8) Workers Participation in Management (9) Tripartite Bodies/ Machinery (10) LabourWelfare Officer (11 ) Wage Board 1. Strong Trade Union: A strong trade union responsible to the welfare of workers must work to protect and promote the interests of workers and the condition of their employment. It must provide advice

and information to management on personnel policies and practices. Unions also impress upon workers the need to exercise restraint in the use of their rights. Unions assist employers in maintaining discipline and in increasing productivity. Unions should act as a link between employers and workers so as to develop mutual understanding and co orporation between the two sides. As a matter of fact a trade union is the most switable and most effective agency to conduct bargaining strong. 2. Profit Sharing and Co-partnership: (a) Profit-Sharing: This method helps for maintenance of good industrial relations. Profit sharing means that the employer gives to the workers a portion of profit of the business, in addition to wages. It is usually based on an agreement between the employer and the workers. Importance of profit sharing: (1) The award to labour of a share of profits would create psychological conditions favourable to the restoration of industrial peace. (2) Profit sharing is likely to strongthen the common interest of labour and capital and thereby increase the productive efficiency of the workers. (3) Profit sharing e"nhances social justice so far as labour, a primary factor of production, that produces profits, is allowed to share in them. (4) Protit sharing makes the worker responsible, creates a feeling of identity with business and settles all disputes peacefully. Limitations of profit sharing: (1) Although the purpose of profit sharing is to lay foundation for harmonious industrial relations, they often fail to gain the confidence of the worker since the amount of profits accruing to the workers has not been very large. The workers suspect honesty and good faith on the part of the employer in distribution of profits. (2) There is possibility of conflicts since the employees contend that the increased profits are due to their efforts. (3) The workers often fear that employers may use the profit-sharing scheme to weaken the trade unions and to make the workers dependent upon them. (4) Profit sharing may make the workers sluggish and therefore, production instead of being augmented, may actually diminish. Broadly speaking; until a climate of mutual trust and confidence is created between the two sides, the success of profit sharing schemes in industry so far as industrial peace is concerned, seems doubtful. (b) Co-partnership: Co-partnership has come to be a applied to schemes which include a system of profit sharing as well as control in the management. It is necessary that in order to acquire control of business, the workers may other acquire share-capital gaining thereby the rights and responsibility of share-holders or may form a co-partnership committee having a voice in internal management of the business. So far as India is concerned, acquiring of share capital or joining in a co-partnership committee by workers seems difficult because of their law earnings and backward in education. Therefore, in the context of Indian conditions, it is proper to lay emphasis on workers participation in management. (3) Joint consultation: The industrial democracy necessitates joint consultation in industry between employer~ and workers to eliminate most of the problems faced by them. Joint consultation involves a regular and continuous relationship between workers and management, and therefore, pre-supposes the willing acceptance by management of the participation of workers representatives in discussing Common problems of interest to the enterprise. While full joint consultation can be expected only after the establishment of a collective bargaining relationship, mutual consultation at the plant level often helps to bring the parties together and to train them in the discussion of common problems. Thus, there is tremendous scope of reducing industrial tension and improving productivity through joint consultation in industry.

The system of joint consultation in India could not develop adequently before independence mainly because of the illiteracy, migratory character and lack of proper organisation of workers. After 1947, with the initiation of Five Year Plans greater emphasis was laid on more production and workers interests began to attract greater attention. The Industrial Disputes Act, 1947 provided for establishment of 'works committees' at the plant level. Now the consultative machinery in this country exists almost at every levels i.e. undertaking, industry, State and National levels. At the undertaking level, there are Joint Committees or Joint Councils. At the industry level, there are Wage Boards and Industrial Committees to deal with specific problems of workers that arose from time to time in particular industries. At the State Level, the Labour Advisory Board functions, and at the national level there are Indian Labour Committee, etc. The functions of Joint Consultative Machinery in India have been the prevention of disputes, reduction in mutual differences and friction, and creation of a proper work climate in industry. 5. Code of Discipline: The Indian Labour Conference at its 15th Session in 1957 evolved a 'Code of Industrial Discipline'. The Code voluntarily binds the employers and workers to settle all grievances and disputes by mutual negotiations, conciliation and voluntary arbitration. The main features of this Code include the following. (1) Both, employers and employees should recognise the rights and responsibilities of each other. (2) Neither party will have recourse to coercion, intimidation, litigation and victimisation, but will settle all disputes through the existing machinery for the settlement of industrial disputes. (3) A mutually agreed procedure will be set up and both the parties will abide by it without taking arbitrary action. 6. Collective Bargaining: It is a form of joint consultation, and a process in which the representative of the employer and of the employees meet and attempt to negotiate a contract governing the employeremployees union relationship. It involves discussion and negotiation between the two groups as to the terms and conditions of employment. The main object of collective bargaining is to protect the interests of workers through collective action and by preventing unilateral action on the part of the employer. It promotes industrial democracy. 7. Works committees: Works committees are the most suitable agency for prevention of industrial disputes. In most of the countries like India, works committees are required to the established through legislation. According to Sec. 3 of the Industrial Disputes Act 1947, in the case of an industrial establishment in which 100 or more workmen are employed or have been employed on any day in the preceding 12 months, the appropriate Government may, by general or special order require the employer to constitute a Works Committee consisting of representatives of employers and worker engaged in the establishment, the number of representatives of workmen not being less than that of the employers representatives, to be chosen in consultation with their trade union, if any. The duties of the Works Committee are to promote measures for securing and preserving amity and good relations between the employer and workmen and to comment upon matters of their interest, and to endeavor to compose any material difference of opinion in respect of such matters. 8. Workers participation in management: These councils aim at enabling the workers to participate in management, help them to understand the problems and difficulties of the industry concerned and bring about better relationship between the management and labour. 9. Tripartite Bodies/Machinery: Several tripartite bodies have been constituted at Central and State levels. The Indian Labour Conference, Standing Labour Committees, Wage Bounds and Industrial Committees operate at the Centre. At the State Level, State Labour Advisory Bounds have been set up. All these bodies play important role in reaching at agreements on various labour matters. The recommendations of these bodies are advisory in nature but carry a great weight on employers, trade unions and the Government. All these bodies constitute the consultative machinery for the private sector.