Machinery for prevention and settlement of industrial dispute

By: Chinta Mani Bhattarai

HRM 4th semester Institute of Banking and Management studies (IB&MS)

Interest Industrial disputes

power

Rights

Direction of Xs View

Party Y sees mostly YELLOW

Employee benefits

X represents the management Y represents the employees

Management benefits Party X sees mostly RED

Direction of Ys view

Industrial dispute?

The conflict or difference in opinion between employer (management) and employees (workers) on terms of employment. According to section 2(K) of industrial dispute act 1947, any dispute between employers and employers or between employers and workmen or between workmen and workmen and which is connected with the employment and non-employment or the terms of employment or with the condition of labour.

Disagreement Employer VS employee representative (i.e, Trade union) Management may resort to lockouts While Workers may resort to strikes, picketing or gheraos.

Causes of industrial disputes

E c o n o m i c e c o N n o o n m i c

Wages, Bonus, Allowances, Conditions of work, Working hours, Leave and Holidays without pay, Unjust layoffs and Retrenchments.

Victimization of workers, ill treatment by staff members, sympathetic strikes, political factors and indiscipline.

Causes of
Miscellaneous factors
Inter/intra union rivalry Charter of demands Work load Standing orders/rules/service conditions/safety measures Non implementation of agreements and rewards etc.

Percentage distribution of industrial disputes by causes in India

Trends of industrial disputes in India

VIDEO

Machinery for prevention and settlement of industrial disputes in India

Voluntary method Government machinery

Statuary measures

- Collective bargaining - Trade unions - Joint consultants - Standing orders - Grievance procedure - Code of discipline

-work committees -conciliation (conciliation officer and Labour administration conciliation board) machinery -arbitration - State level -Adjudication (Labour - Central level court, Industrial tribunal, National tribunal)

Voluntary method Collective bargaining

It occurs when representatives of union meet with management.

They meet to disputes over employee wages and benefits, to create or revise work rule and to resolve disputes of labour contract.
It is said to be collective bargaining in the sense that chosen representatives act as bargaining agent for all employees dealing with management.

Trade union

Trade union acts as negotiator where representatives discuss with management issues which affects people working in an organization. Represents the individual members when they have problem at work, like unfair treat with individuals. Unions have wealth of information which is useful to people at work.

Thus, trade union activities leads to collective bargaining because they tries to find out the solutions of different views.

Joint management council

Emphasize labour participation in management, and consists of equal numbers of workers and employers (minimum 6 & maximum 12). Representation of workers to the JMCs should be based on the nomination by the representation. Objectives Satisfy the psychological needs of workers Improve the welfare measures Increase workers efficiency Improve the relation and association between workers, managers and promoters.

a) b) c) d)

Standing orders
Standing orders define and regulate terms and conditions of employment and bring about uniformity in them. It specifies the duties and responsibilities of both employers and employees thereby regulating standards of their behaviour. Therefore, standing orders can be a good basis for maintaining harmonious relations between employees and employers. Under Industrial Dispute Act, 1947, every factory employing 100 workers or more is required to frame standing orders in consultation with the workers. These orders must be certified and displayed properly by the employer for the information of the workers.

Grievance procedure

Section head shall try to resolve and if this fails Department head shall intervene to resolve and if this fails Division head intervene, if this fail Complain is referred to the union.

Code of discipline

Defines duties and responsibilities of employees and workers It ensures that employees recognize the obligations and rights of one another. Promotes co-operation

Government machinery

Labour administration machinery 1. 2. State level Central level

Statutory measures
Work committees
As per the industrial dispute act 1947, work committees have to be settled all those industrial units which employee 100 or more persons. It is basically a consultative body. Giving greater participation to workers. Ensuring close interaction between labour and management Generating cooperative atmosphere for negotiation between parties Opening the door to union to have a clear view of what is going on within the unit

Strengthening the sprit of voluntary settlement of dispute

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. The Industrial Disputes Act 1947 prohibits strikes and lockouts during that time when the conciliation proceedings are in progress. Conciliation Officer: The conciliation officer however has no power to force a settlement. He can only persuade and assist the parties to reach an agreement. He is supposed to give judgment within 14 days of commencement of the conciliation precedings. Conciliation board: it is an ad-hoc, tripartite body having a power of civil court created for specific dispute (if the conciliation officer fails to resolve dispute within a time frame, conciliation board is appointed).

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 judgment. There are two types of arbitration: Voluntary Arbitration: In voluntary arbitration the arbitrator is appointed by both the parties through mutual consent and the arbitrator acts only when the dispute is referred to him. Compulsory Arbitration: Implies that the parties are required to refer the dispute to the arbitrator whether they like him or not. Usually, when the parties fail to arrive at a settlement voluntarily, or when there is some other strong reason, the appropriate government can force the parties to refer the dispute to an arbitrator.

Adjudication
Adjudication is the ultimate legal remedy for settlement of Industrial Dispute. 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: 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: 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: 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.

Thank you