delays of labour judiciary have reduced the effectiveness of these benefits . . . . . .
Second Five Year Plan emphasized while the observance of stricter
discipline, both on the part of labour and management, is a matter which cannot be imposed by legislation alone, it has to be achieved by organizations of employers and workers by evolving suitable sanctions on their own. . .
In 1957, the 15th Session of Indian Labour Conference
evolved a code of discipline, which voluntarily bind the
employer and workers to settle all disputes and grievances by mutual negotiations, conciliation and voluntary arbitration.
In March 1958, the code of discipline was accepted by all
the major central organizations of labour
It applies to both public and private industries.
The code has been accepted by 180 employers and 115
trade unions which are not members of any central
employees' organizations.
To maintain Discipline in Industry both in public and
private sector there has to be a just recognition by
employers and workers of the rights and responsibilities of either party
To ensure a proper and willing discharge by either
party of its obligations
The Central and State Governments, on their part,
are required to examine and set right any
shortcomings in the machinery they constitute for the administration of labour laws
1. Steps by workers & employers organizations
in case of breach of code:
Ask for explanation
Order to set right the infringement Issue warning to the unit Levy penalties Disaffiliate the unit from membership
2. Grave, wilful & persistent breaches of the
code by any party should be widely publicised 3. Failure to observe the code would entail derecognition normally for a period of one year [increased or decreased]
No unilateral action should be taken in
connection with any industrial matter Existing machinery for settlement of disputes should be utilized There should be no strike or lock-out without notice Affirming their faith in democratic principles, they bind themselves to settle all future differences, disputes and grievances by mutual negotiation, conciliation and voluntary arbitration; Neither party will have recourse to coercion, intimidation, victimization, go-slow, etc.
They will avoid litigation, sit-down and stayin strikes, lock-outs
They will establish upon a mutually agreed basis, a grievance procedure which will ensure a speedy and full investigation leading to settlement They will abide by various stages in the grievance procedure and take no arbitrary action which would by-pass this procedure They will educate the management personnel and workers regarding their obligations to each other
Not to increase work-loads unless
agreed upon or settled otherwise
Not to support or encourage any unfair labour practice To take prompt action for (a) settlement of grievances and (b) implementation of settlements, awards, decision and orders To display in conspicuous places in the undertaking the provisions of this code in the local language(s)
To distinguish between actions justifying
immediate discharge and those where discharge must be preceded by warning, reprimand, suspension or some other form of disciplinary action and to arrange that all such disciplinary action should be subject to an appeal through normal grievance procedure To take appropriate disciplinary action against its officers and members in cases where enquiries reveal that they were responsible for precipitate action by workers leading to indiscipline To recognize the union activities
Not to engage in any form of physical
duress; Not to permit demonstrations which are not peaceful Members will not engage or cause other employees to engage in any union activity during working hours To discourage unfair labour practices such as (a) negligence of duty, (b) careless operation, (c) damage to property, (d) interference with or disturbance to normal work and (e) insubordination;
To take prompt action to implement
awards, agreements, settlements
and decisions To display in conspicuous places in the union offices, the provisions of this Code in the local languages To express disapproval and to take appropriate action against officebearers and members for indulging in action against the spirit of this code
It is only a gentleman's agreement between employers and
employees to maintain a standard of discipline in dealings with
each other with the main object of securing better discipline in industry and to facilitate peaceful settlement of disputes
There is no legal binding on code of discipline
However, the organizations of employers and workers are
required to apply sanctions against their members for violating
the code
These sanctions have been laid down by Standing Labour
Committee Indian Labour Conference
They are reformative in character and not punitive.
The collective bargaining process can be
possible only when employer recognizes a
trade union as bargaining agent and agree to negotiate with it because it is difficult to negotiate with multiple trade unions in a single organization. Therefore, it is a business necessity The Trade Unions Act, 1926 has no provisions
relating to it However, State legislations are available
Election by Secret Ballot Method
Check-Off method Verification by union membership by
Directorate Rule of Thumb or Intelligent guessing
1. Right to raise issues with the management
2. Right to collect membership fees within the 3. 4. 5. 6. 7.
premises of the organization
Right to demand check-off facility Right to hold discussions with the employees at a suitable place within the premises Right to discuss members grievances with the employer Right to inspect the place of employment Right to nominate its members in committees formed by the management for the sake of IR
Where there is more than one union, a union
claiming recognition should have been functioning for at least one year after registration. [Where there is only one union, this condition would not apply] 2. The membership of the union should cover at least 15% of the workers in the establishment concerned. Membership would be counted only to those who had paid their subscription for at least three months during the period of six months immediately proceeding the reckoning. 3. A union may claim to be recognised as a representative union for an industry in a local area if it has a membership of atleast 25% of the workers of that industry in that area. 1.
4.When a union is recognised,
there should be no change in its position for a period of two years 5.Where there are several unions in an industry or establishment, the one with the largest membership should be recognised
6. In the case of trade union
federations, which are not affiliated to any of the major central organisations of labour, the question of recognition would have to be dealt with separately. 7.Only unions, which observe Code of Discipline, would be entitled for recognition
Initially by the end of March, 1962, the code was
accepted voluntarily by about 900 independent
employers and trade unions. The number increased to around 3000 by the end of
1967 Over the years, however, the willingness and enthusiasm
of the parties to observe the code has declined, and they
have developed an attitude of indifference to the code
It has proved to be difficult for them to abide by self-
imposed discipline in terms of obligations backed only by
A Form of Collective Bargaining Leading To A Productivity Agreement in Which Management Offers A Pay Raise in Exchange For Alterations To Employee Working Practices Designed To Increase Productivity