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Summary of industrial dispute.

Detailed explanation of Industrial Disputes Industrial disputes are conflicts, disorder or unrest arising between workers and employers on any ground. Such disputes finally result in strikes, lockouts and mass refusal of employees to work in the organization until the dispute is resolved. So it can be concluded that Industrial Disputes harm both parties employees and employers and are always against the interest of both employees and the employers.

According to the Industrial Dispute Act,1947 sec (2(k)),Industrial disputes mean 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 labor of any person
In practice, Industrial dispute mainly refers to the strife between employers and their employees. An Industrial dispute is not a personal dispute of any one person. It generally affects a large number of workers community having common interests For a dispute to become Industrial Dispute there must be a dispute difference between:

1. 2. 3.

Employers and employees Employers and workmen Workmen and workmen

It is connected with the employment or terms of employment or with the conditions of labour. Principles assigned by courts for judging the nature of disputes The term Industrial Disputes has been interpreted differently in different situations by courts. So the court has assigned some principles for judging the natures of Industrial Dispute, these principles are as follows:s

1. 2. 3. 4. 5.

The dispute must affect large number of workmen The dispute should be taken up by the Industry Union The parties involved in dispute must have direct interest The consulted demand must become grievance Workmen can raise Industrial Dispute himself under Section 2A of Industrial Disputes Act -1947.

Causes of industrial dispute.


1. Demand for Higher wages The employees want higher wages. The employer wants more profit by paying lower wages. This results in frustration among employees and they resort to agitation.

2. Non-Implementation of Bonus Schemes Bonus is a strong incentive for the employees. They want share in the profit in the form of bonus. However, the employers generally show deficit and do not pay bonus to the employees. This results in industrial dispute.

3. Demand for better working condition The employees want better working conditions. If their demand is not accepted by the employer they resort to agitational approach(movement). The result is industrial disputes.

4. 5.

Failure to recognise Unions The employers cannot tolerate trade unions as they feel that these unions are threat to their profit. Therefore, they
discourage union movement by the policy of divided and rule. But the workers believe in collective bargaining and desire the recognition of unions by the employers.

Government Machinery : (a)Though there are number of enactments for promotion of harmonious relations, it is ineffective and unsatisfactory due to various reasons like their irrelevancy in the context of the challenges of present industrial climate /culture, incapability of understanding and answering imperatives (compulsory) of development, improper and inadequate implementation by many employers. (b) The governments conciliation machinery has settled a very negligible number of disputes

5. Demand for proper leave Rules The employers want that leave rules and working hours should as laid down in factory act. No worker should be forced to work more than 48 hours or more in a week. However, generally employers ignore these rules which results in industrial dispute.

6. Over Time Payment -

The employees demand over-time payment as prescribed in the factory act. But the employer either does not make any payment or makes under-payment. This causes frustration among employees and they resort to agitations.

7. Political Interference Most of the trade unions in India are dominated by political parties. Sometimes, political leaders use workers as tool for their selfish ends. They excite the workers to go on strike or adopt other agitational approach.

8. Punishment to Workers Sometimes, the employer adopts dictational policy and victimises the employers by suspending or dismissing them from services. In order to get the victimisation redressed the employees resort to agitational approach. This disturbs the industrial peace.

9. Mass retrenchment & undue promotions :One major cause of industrial dispute is the mass retrenchment and undue promotions of the employees. The employees start agitation to show their resentment against the callous attitude of the management.

10. Insecurity of Service In India, the employment opportunities are very tight. The employees want security of service. If the employer does not meet with their demand they adopt agitational approach.

11. Wrong policy or decision Sometimes, the policy or decision taken by the management is determental to the interests of employees. This causes frustration among the employees and they went to agitational approach in bid to put pressure on the management to withdraw the wrong decision..

13. Non-redressal of grievances The employees place their grievances before the management time and again. If their genuine grievances are not removed or properly attended, it give rise to frustration and ultimately a dispute.

Prevention of Industrial Disputes:


Prevention of Industrial disputes is a pro-active approach in which an organisation undertakes various actions through which the occurrence of Industrial disputes is prevented. Like the old saying goes, prevention is better then cure The consequences of an Industrial dispute will be harmful to the owners of industries, workers, economy and the nation as a whole, which results in loss of productivity, profits, market share and even closure of the plant. Hence, Industrial disputes need to be averted by all means

Voluntary measures 1.Collective bargaining:- Collective Bargaining is process of joint decision making and basically represents a
democratic way of life in industry. It is a technique adopted by two parties to reach an understanding acceptable to both through the process of discussion and negotiation. According to Prof. Paul Samuelson, Collective Bargaining is the process of negotiation between firms and workers representatives for the purpose of establishing mutually agreeable conditions of employment. ILO has defined Collective Bargaining as, Negotiation about working conditions and terms of employment between an employer and a group of employees or one or more employee, organization with a view to reaching an

agreement wherein the terms serve as a code of defining the rights and obligations of each party in their employment relations with one another.

2.Trade union
Strong trade unions help prevent industrial Disputes. They can bargain with employers effectively and seek quick redressal of grievances. Industrial relations will be sound only when the bargaining power of the employees union is equal to that of management. A strong union can protect the employees interest relating to wages, benefits, job security, etc.

3.Standing Orders :Majority of the industrial disputes are related to conditions of employment.

To prevent this, Standing orders are formulated. It was made obligatory that standing orders should govern the conditions of employment under the Industrial Employment (Standing Orders ) Act of 1946. The Standing Orders regulate the conditions of employment from the stage of entry to the stage of exit. employers have to formulate standing orders in consultation with workers and submit to a certifying officer. The matters to be highlighted therein are: (a) Classification of employees, (b) Hours of work, holidays, payday, wage rates, (c) Shift working, (d) Attendance and late coming, (e)Leave rules, (f) Temporary stoppages of work, (g) Termination, suspension and disciplinary actions, etc

4.Grievance Procedure:- Grievance is any discontent or dissatisfaction, whether expressed or not,whether valid or not,
arising out of anything connected with the company which an employee thinks, believes and even feels to be unfair, unjust orinequitable. A model grievance procedure, as suggested by the Indian Labour Conference, 1958, has more or less been widely accepted now in India . A written complaint filed by an employee and claiming unfair treatment. A complaint of any one or more workers in respect of wages, allowances, conditions of work & interpretation of service stipulations, covering such areas as overtime, leave, transfer, promotion, seniority, work assignment and discharge constitute grievance.

5.Code of Discipline : The code of discipline defines duties and responsibilities of employers and workers. The objectives
of the code are: 1. To ensure that employers and employees recognize each others rights and obligations. 2. To promote consecutive co-operation between parties concerned at all levels. 3. To eliminate all forms of coercion, intimidation and violence in IR. 4. To avoid work stoppages. 5. To facilitate the growth of trade unions. To maintain discipline in the industry

Statutory Measures
1.Joint Consultations To prevent industrial disputes, two ways of joint consultation are adapted works committees and Joint management councils. Works Committees A number of issues come under the purview of works committees like wages, benefits, bonus, hours of work, terms and condition of employment, welfare measures, training, transfers, etc 1. Greater participation to workers in day-to-day affairs. 2. Ensures close mutual interaction between labour and management. 3. Generates a cooperative atmosphere for negotiations between the two parties. 4. Opens the door for unions to have a clear view of what is going on within the unit. 5. Strengthens the spirit of voluntary settlement of disputes. The Industrial Disputes Act, 1947, legalized the establishment of works committees at the plant level. Joint management councils (JMCs) In the Industrial Policy Resolution 1956, the need for joint managementcouncils consisting of representatives of management, technicians andworkers was emphasized. Management must supply facts regarding the working of a unit and the council discusses various matters across the table and recommends steps for improving efficiency.. The main features of the scheme are given below: it involves a continuous relationship between labor and management the participation of workers in discussing common problems of interest. This is the result parties know each other well and have a mutual trust The scheme is voluntary, not obligatory. The JMC should consist of equal numbers of representatives of workers and employers (minimum 6 and maximum 12) JMCs should look after three areas: (1) information sharing (2)consultative and (3) administrative. Matters relating to welfare, safety 2.Conciliation : Conciliation is a process by which the representatives of workers and employers are brought together before a third party with a view to persuading them to arrive at an agreement by mutual discussion between them. The third party may be an individual or a group of people. The third party may also be called as mediators. Conciliation Officer The conciliation officer may be appointed by the government for specified area or specified industries.Their main duty is to investigate and promote settlement of disputes by inviting the parties to come to a fair and amicable settlement. In Concialition , the ultimate decision rests with the parties themselves but the conciliator may offer a solution to the dispute acceptable to both the parties and serve as a channel communication . The parties may accept his recommendation or reject it. If the conciliation fails, the next stage may be compulsory adjudication or the parties may be left with their own choice. In cases where a settlement is arrived at, they can record the settlement and in case of failure of the conciliatory negotiations, they can send a failure report to the appropriate government. .3 Voluntary Arbitration When conciliation proceedings fail to settle the dispute, the conciliation officer may persuade the conflicting parties to voluntarily refer the dispute to a third party known as Arbitrator, appointed by the parties themselves. The arbitrator listens to the viewpoints of both parties and delivers award or judgment on the disputes. He, however, does not enjoy judicial powers. The arbitrator submits his judgment on the disputes to the government. Therefore the government publishes the award within 30 days

of it submission. the award becomes enforceable after 3 days of its publication. The arbitration award is binding on all the parties to the agreement Process of Arbitration : 1. 2. 3. The labor union generally takes initiative to go for arbitration. when the union decides, it notifies the management. The union & the management select the potential arbitrator by carefully studying the previous decisions given by the particular arbitrator, to detect any biases. After the arbitrator is selected, the time & place for hearing will be determined, the issue to be resolved will be presented to the arbitrator in a document that summarizes the questions to be decided, any contracts restrictions that prohibit the arbitrator from making an award that would change the terms of existing contract. Each side represents its case at the hearing. Each party has to submit formal written statements

4. 5.

.4 AdjudicationAdjudication or compulsory arbitration is the ultimate remedy for the settlement of disputes in India. Adjudication consists of settling disputes through the intervention of a third party appointed by the government. An industrial dispute can be referred to adjudication by the mature consent of the disputing parties. The government can also refer a dispute to adjudication without the consent of the parties. The Industrial Disputes Act, 1947, provides a three-tier adjudication machinery namely Labour Courts, Industrial Tribunals and National Tribunals for the settlement of industrial disputes. Under the provision of the Act, Labour Courts and Industrial Tribunals can be constituted by both Central and Stat government but the National Tribunals can be constituted by the Central government only.

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