Union Issues Settlement

Trade unionism is over a century old in India and is defined under the Trade Unions Act 1926, as any combination, whether temporary or permanent, formed primarily for the purpose of regulating the relations between workmen and employers or between workmen and workmen or between employers and employers or for imposing restrictive conditions on the conduct of any trade or business, and includes any federation or two or more trade unions. Trade unions are those unique organisations whose role has been understood differently by different groups of the society but the real role has been to protect jobs and earnings, better working conditions, maintaining fairness and equity and the social security of all its members. The recognition of trade unions by employers was felt to ensure that appropriate modes of collective bargaining took place and that the agreements were collectively reached and mutually observed. Collective agreements to settle disputes can be reached with or without recourse to the conciliation machinery set up by the legislation. A bi-party agreement between one trade union and management is not a binding on members of another or other union(s). However, if a settlement is arrived in the course of conciliation proceedings, then it is a binding as mentioned under section 18 of Industrial Disputes Act, not only on the actual parties making the settlement but also on all other members concerned, present or future. When parties do not reach a settlement and the matter is forwarded for arbitration or adjudication, then the award (An interim or final determination of any industrial dispute by any labour court or industrial tribunal) of the arbitrator or adjudicator is binding on all parties concerned.

Conciliation:
Conciliation refers to the process by which representatives of employees and employers are brought together before a third party with a view to discuss, reconcile their differences and arrive at an agreement through mutual consent. The third party acts as a facilitator in this process. Conciliation is a type of state intervention in settling the Industrial Disputes. The Industrial Disputes Act empowers the Central & State governments to appoint conciliation officers and a Board of Conciliation as and when the situation demands.

Arbitration:
A process in which a neutral third party listens to the disputing parties, gathers information about the dispute, and then takes a decision which is binding on both the parties. The conciliator simply assists the parties to come to a settlement, whereas the arbitrator listens to both the parties and then gives his judgement.

Advantages of Arbitration:
It is established by the parties themselves and therefore both parties have good faith in the arbitration process. The process in informal and flexible in nature. It is based on mutual consent of the parties and therefore helps in building healthy Industrial Relations.

Disadvantages:
Delay often occurs in settlement of disputes. Arbitration is an expensive procedure and the expenses are to be shared by the labour and the management. Judgement can become arbitrary when the arbitrator is incompetent or biased.

Adjudication:
Adjudication is the ultimate legal remedy for settlement of Industrial Dispute. Adjudication means intervention of a legal authority appointed by the government to make a settlement which is binding on both the parties. In other words adjudication means a mandatory settlement of an Industrial dispute by a labour court or a tribunal. For the purpose of adjudication, the Industrial Disputes Act provides a 3-tier machinery:

Labour court Industrial Tribunal National Tribunal

Labour Court:
The appropriate government may, by notification in the official gazette constitute one or more labour courts for adjudication of Industrial disputes relating to any matters specified in the second schedule of Industrial Disputes Act. They are: Dismissal or discharge or grant of relief to workmen wrongfully dismissed. Illegality or otherwise of a strike or lockout. Withdrawal of any customary concession or privileges.

Industrial Tribunal:
The appropriate government may, by notification in the official gazette, constitute one or more Industrial Tribunals for the adjudication of Industrial disputes relating to the following matters: Wages Compensatory and other allowances Hours of work and rest intervals Leave with wages and holidays Bonus, profit-sharing, PF etc. Rules of discipline Retrenchment of workmen Working shifts other than in accordance with standing orders

National Tribunal:
The central government may, by notification in the official gazette, constitute one or more National Tribunals for the adjudication of Industrial Disputes in Matters of National importance Matters which are of a nature such that industries in more than one state are likely to be interested in, or are affected by the outcome of the dispute