Industrial Disputes

A HUMAN RESOURCE MANAGEMENT INSPIRED PROJECT BY

JACOB GEORGE

Introduction/Concept

Sec 2 of Industrial Disputes Act, 1947 calls it as“Any dispute or difference between Employers and employers or Between employers and workmen or Between workmen and workmenIn connection to 1. employment or non-employment2. the terms of employment 3. the conditions of labor of any person

Forms of Industrial Disputes: Strikes

A spontaneous and concerted withdrawal of labor from production.

“Suspension or cessation of work by a group of persons employed in any industry, acting in combi nation or a concerted refusal;

or a refusal under a common understanding(of any number of persons) who are or have been so employed to continue to work or accept

employment”.-Industrial Disputes Act, 1947.

Examples: stay-away strike stay-in strike sit-down strike: prevent the employers from replacing them with

strikebreakers or, in some cases, moving production to other locations.

Lock-Outs: Counter-part of strikes. While a ‘strike’ is an organized or concerted withdrawal of labor,

‘lock-out’ is withholding demand for it. Lock-out is the weapon available to the employer to shut-down the

place of work till the workers agree to resume work on the conditions laid down by the employer.

“The temporary shutting down or closing of a place of business by the employer”.

-The Industrial Disputes Act, 1947

Gherao: It is a physical blockade of managers by encirclement aimed at preventing

the egress and ingress from and to a particular office or place. The object of Gherao is to compel the “gheraoed” persons to accept the

workers’ demands without recourse to the machinery provided by law. The National Commission on Labor has refused to accept ‘gherao’ as a form

of industrial protest on the ground that it tends to inflict physical threat on the persons gheraoed and endangers not only industrial harmony but also creates problems of law and order.

Picketing and Boycott: Picketing is a method designed to request workers to withdraw co operation to

the employer. Workers through display signs, banners and play-cards draw the attention of

the public that there is a dispute between workers and employer. Workers discourage their colleagues from entering the place of work and

persuade them to join the strike.

Boycotting, on the other hand, aims at Disrupting the normal functioning of the organisation. The striking workers voluntarily withdraw co-operation with the employer as an

expression of protest. Examples: Boycotting classes and examinations are seen in the Universities

also.

Types of Industrial Disputes:The Industrial Disputes into two main types.1. Interest Disputes:

These disputes are also called ‘economic disputes’. Such types of disputes arise out of terms and conditions of employment either

out of the claims made by the employees or offers given by the employers. Such demands or offers are generally made with a view to arrive at a

collective agreement. Examples of interest disputes are lay-offs, claims for wages and bonus, job

security, fringe benefits, etc.2. Grievance or Right Disputes: grievance or right disputes arise out of application or interpretation of existing agreements or contracts between the employees and the manage ment. They relate either to individual worker or a group of workers in the same group. That’s way in some countries; such disputes are also called ‘individual disputes’. Payment of wages and other fringe benefits, working time, over-time, seniority, promotion, demotion, dismissal, discipline, transfer, etc. are the examples of grievance or right disputes.

If these grievances are not settled as per the procedure laid down for this purpose, these then result in embitterment of the working relationship and a climate for industrial strife and unrest. Such grievances are often settled through laid down standard procedures like the provisions of the collective agreement, employment contract, works rule or law, or customs /usage in this regard. Besides, Labour Courts or Tribunals also adjudicate over grievance or interest disputes.

Causes of Industrial Disputes: Economic causes:

Wages, Bonus, Dearness allowance, Conditions of work and employment, Working hours, Leave and holidays with pay, and Unjust dismissals

Non-economic causes: Recognition of trade unions, Victimization of workers, Ill-treatment by supervisory staff

Effect of Industrial Disputes Unrest and unnecessary tensions engulf the hearts and minds of all the

people involved – workers and senior management. There is Economic Loss due to conflicts as it may result in strikes and

lock-outs. This causes low or no production resulting in industrial loss. Industrial losses may cause economic depression because many

industries are interlinked. A problem in one industry may drastically affect another industry. Example: Maruti Lockouts

The lives of low-level laborers become worse when they are out of work. When industrial conflicts get out of hand, they become a threat to peace

and security. Workers may resort to violence and indulge in sabotage.

Industrial Dispute Settlement Machineries in India1. Conciliation: is the “practice by which the services of a neutral party is used in a

disputea). For helping the disputing parties to reduce the extent of their

differences and;b). To arrive at an amicable settlement.”

The Conciliation Officer: The law provides for the appointment of Conciliation Officer by the Government to conciliate between the parties to the industrial dispute.

The Conciliation Officer is given the powers of a civil court, whereby he is authorized to call the witness and the parties for enquiry. However, whereas civil court cannot go beyond interpreting the laws, the conciliation officer can go behind the facts and make judgment which will be binding upon the parties.

Report about the case must be submitted within 14 days of the commencement of conciliation.

Industrial Dispute Settlement Machineries Contd.

2. Court of Inquiry: The government can appoint a Court of Inquiry to enquire into any matter connected with or relevant to industrial dispute. The court is expected to submit its report within six months.The court of enquiry may consist of one or more persons to be decided by the appropriate government.

NOTE!!!A Board of Conciliation aims at inquiring into and revealing the causes of an industrial dispute.A Court of Inquiry’s basic objective is to promote the settlement of an industrial dispute. Thus, a court of enquiry is primarily fact-finding machinery.

Voluntary Arbitration: Getting the disputes settled through an independent person chosen

by the parties involved mutually and voluntarily. This is done on failure of conciliation proceedings. The conciliation

officer may persuade the parties to refer the dispute to a voluntary arbitrator.

Arbitrator is jointly appointed by the parties into the dispute. This process saves time and money of both the parties which is

usually wasted in case of adjudication(compulsory arbitration).

Adjudication (Compulsory Arbitration) The ultimate remedy for the settlement of an industrial dispute is its reference

to adjudication by labor court or tribunals. The need arises when conciliation machinery fails to come to a reasonable

settlement. A dispute can also be referred to adjudication by the Government even if there

is no consent of the parties in which case it is called ‘compulsory adjudication’.

Trade UnionAny combination,

whether temporary or permanent, formed primarily for the purpose of regulating the

relationship between(a) Workmen and employers, or (b) Workmen and workmen, or (c) Employers and employers or (d) For imposing restrictive conditions on the conduct of any

trade or business.

More about Trade Union Act, 1926 Trade Union Act, 1926 provides for registration of trade unions. Any 7 or more members of a trade union may apply for registration of trade

union under this Act (Section 4) to the Registrar of Trade Unions. The Registrar issues a Certificate of Registration in a prescribed form which

acts as evidence that trade union has been duly registered under the Act.

Roles of Trade Unions The Act clearly defines the rights and liabilities of registered

trade union. It indicates the objects on which general funds may be spent. The trade unions are given immunity from civil suits in certain

cases. The members of trade unions can inspect the books of trade

unions.

Thank You!