INDUSTRIAL RELATION - BASIC CONCEPTS 1
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Transcript of INDUSTRIAL RELATION - BASIC CONCEPTS 1
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PreambleThe ID ACT,1947 has been enacted to make
provisions for the investigation andsettlement of industrial disputes.
To ensure fair terms to the workmen and toprevent disputes between the employers andthe employees so that production might notbe adversely affected and the larger interests
of the public might not suffer.
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Who is an employer ?An employer means every person having in
his, her or its service under a contract ofservice or apprenticeship another person
engaged in work in or about an industry andincludes,
(1)a trustee, receiver, liquidator, executor oradministrator who carries on an industry,
(2)a person who authorizes or permits a learnerto be in or about an industry for the purpose ofundergoing training or probationary work, or
(3)a deemed employer.
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Factors to be considered as
an industryA number of disputes arose as to whether a
particular activity comes within the purview ofthis definiton.
Case : Bangalore water supply & sewerage boardVs Rajappa.
The Supreme Court held as follows : Where there is systematic activity organised by
co-operation between employer and workmen forproduction and / or distribution of goods andservices calculated to satisfy human wants andwishes, prima facie there is an industry in thatenterprise regardless of profit motive or gainfulobjective.The decisive test is the nature of activity
with special emphasis on employer-employee
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Is Cooperative housing
society an industry?
If the bye-laws of the Cooperative housingsociety shows that the object of the society isto carry on trade of buying, selling buildings,there is no doubt that the society is anindustry.
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Is the Irrigation department
an industry?
If there is a systematic and organized activityby the govt. and its employees are satisfyingthe need of irrigation, supply of electricity,etc and such activities are satisfying thehuman needs then it is an industry.
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If a doctor or an engineer employsone person as an assistant will that
establishment be an industry?
There is only one person employed in thatestablishment.Hence it is not an industry
although there may be a systematic activitybeing carried on to provide services to satisfyhuman wants.
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Is hospital an industry?Hospitals are carrying out systematic activities
organized in co-operation between employerand employees, producing and distributingservices that satisfy human wants. Hence it isan industry.
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Do charitable institutions and non-profit org.come within the definition of industry?OR ?
Whether free legal services provided by thelawyers are defined as industry?
Absence of profit motive or gainful objective is
irrelevant, be the venture in the public, joint,private or other sector. If the organizationcarries on the trade or business it does notcease to be an industry because of
Philanthropic act animating the undertaking.
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, ,universities, industriescovered under the industrialdisputes act ?The three factors :-
Systematic activity
Organised by the co-operation of employer andemployees
For the production and distribution of servicesthat satisfy human wants.
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ContdAll the above are present in schools,collegesand universities hence they are industries as
per the definition.
A bill called hospitals and other institutions billwas introduced in Parliament two decadesago.That has not been passed yet.
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Whether clubs, insurancecompanies, charitable projects are
industries as per the definition ?These institutions come under the definition of
industrybecause of the type of activity and
master-servant relationship.
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Who is a workman under this
Act ?Under the ID ACT, a workman is any person
(including an apprentice) employed in anyindustry to do any manual, unskilled, technical,
operational clerical or supervisory work for hire orthe terms of employment be express or
implied,and for the purposes of any proceedingunder this act in relation to an industrial dispute,
includes any such person who has been dismissed ,discharged or retrenched in connection with, oras a consequence of, that dispute, or whosedismissal,discharge or retrenchment has led tothat dispute.
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Who is not a workman in
this act ?Any person
(1)Who is subject to the Air Force Act,1950 or theArmy Act,1950 or the Navy Act,1957.
(2)Who is employed in Police service or as an officeror other employer of a prison.
(3)A person employed mainly in the managerial oradministrative capacity.
(4)A person employed in a supervisory capacitydrawing wages exceeding Rs.1600/- per month,or employed as administrators/managers oremployed as supervisors but performing mainlymanagerial works are not termed as workmenunder this Act.
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What do you mean by a
supervisor ?
An employee whose nature of duties andfunctions areplanning, direction and control
of human beings is a supervisor. Overseeingwork, recommending / sanctioning leave andappraising the performance of subordinateshave been held as important elements of
supervison.
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Mr.X was designated asSupervisor but his nature of work
is clerical. Is he a workman?
Mr.X is a workman since he is performing onlyclerical work but not doing any supervisory
work.Whatever the designation may be, themain criterion is the nature of work only.
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Mr.Y earns Rs.1650/- per month anddesignated as a supervisor. Is he a
workman ?
Mr.Y is not a workman since he earns morethan Rs. 1600 /- and he is performing theduties of a supervisor.
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r. earns s - permonth as a clerk,is he a
workman ?
Mr.Z is a workman since he is doing only theclerical work and not the supervisory
work.The ceiling of Rs. 1600 /- isapplicable only to supervisors.
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. .work was actually directing,planning and initiating new
projects. Is he a workman ?Mr.B is not a workman since he is performing
mainly managerial functions and as already
stated designation is not the only criteria forthe test to decide whether the employee is aworkman or not.
Mr C is a watchman in the Directors
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Mr.C is a watchman in the DirectorsBungalow employed by the company. Ishe a workman ?
Mr.C is a workman since he is employed by thecompany to work in Directors Bungalow andas he is a non- supervisor.
M D i d d i b th B k
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Mr.D is engaged as a driver by the BankManager. The car is maintained by the bank.
The manager gets allowance for the salary of
the driver. Mr. D is a personal driver. Is thedriver a workman of the bank ?
Mr.D is not a workman since he is not directly
employed by the bank. He is employed by theBank Manager and his salary is paid by theBank Manager directly from out of theallowance he gets.
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Mr. E dismissed technician raised adispute with the conciliation officer.Is Mr. a workman ?
Mr.E a terminated workman raising disputeunder this act with the conciliation officer fordismissal is also a workman.
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What is an Industrial
Dispute ? Sec 2(k)An industrial dispute may be defined as a
conflict or difference of opinion betweenmanagement and workers on the terms of
employment.It is a disagreement between an employer and
employees' representative; usually a tradeunion, over pay and other working conditions
and can result in industrial actions.
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Whether the term any person
in the definition of industrialdispute covers every person ??
Any person need not necessarily be aworkman, but he must be a person in whoseconditions of employment etc. the workersare directly or substantially interested or with
whom they have a community of interest.
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Whether a dispute has to be
collective?Generally the dispute has to be a collective
one and it doesnot mean there must be amajority.
Even a minority union or minority group ofworkmen can raise an Industrial Dispute.
However, liberty for an individual workmen toraise an Industrial Dispute has been given
under section 2 (A) in the event of dismissal,discharge or termination otherwise.
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Whether the dispute should
be raised by a union ?
The dispute need not be raised onlyby anunion. Even a group of workmen can raise an
Industrial Dispute.
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Whether the dispute should be
taken up by registered union orrecognized union of a company ?
An unregistered union or an unrecognizedunion in the company may also raise anindustrial dispute.
e er an n v ua
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e er an n v uadispute becomes an
industrial dispute ?All individual disputes under sec 2 (A) are
industrial disputes, but all industrial disputesunder sec 2(k) may not be individual
disputes.(1) Under sec 2 (k) , the difference or dispute
may be between employers and employers; oremployers and workmen; or workmen and
workmen; whereas the difference or dispute,under sec 2(A) is between the employer and anindividual workman only.
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Contd.Subject matter of the dispute or difference,under sec 2(k) , may be connected with theemployment or non- employment or the
terms of employment or with the conditionsof labour of any person;
whereas, under sec 2(A) it should beconnected with, or arising out of an individual
workmans discharge, dismissal,retrenchment or otherwise termination ofservice only.
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ContdThe union of workmen can raise a disputeunder sec 2 (k) with regard to employment,non employment, terms of the employment
or conditions of the labor of any person inrespect of whom the union/ workmen havedirect or substantial interest; whereas anindividual workman cannot raise an industrial
dispute under sec 2 (A) for other workmen.
ow can a sc arge
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ow can a sc argeworkman raise an industrial
dispute ?If a workman feels that he has beenunjustifiably dismissed/retrenched/dischargedhe can send his objections to his employer
and request for reinstatement and he cansend a copy of the same to the conciliationofficerwho will take up the case if it is a fitone.In certain states, a workman aggrieved
on his dismissal, discharge or termination canstraight away raise a dispute in a labourcourt.
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What are the bodies or authoritiesconstituted by the act for
settlement of disputes ?Works committee
Conciliation officers
Boards of Conciliation
Courts of inquiry
Voluntary arbitration
Labor courts
Industrial tribunalsNational tribunals
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Who appoints the workcommittee ?
The act provides for setting up of workscommittee in every industrial establishmentemploying 100 or more workmen.
The composition of works committee isbipartite consisting of equal number ofworkmens representatives as well as theemployers representatives.
Elected from the various groups, categoriesand classes of workmen in consultation withtheir registered union/unions.
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What is the purpose of a
works committee ? The works committee will promote measures
for
securing and preserving amity and good
relations between employers and workmento comment upon matters of their common
interest or concern
to endeavor to compose any materialdifference of opinion in respect of suchmatters.
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Who is the appropriate
government ?It is the Central Govt. in relation to anyindustrial dispute concerning any industrycarried on by or under the authority of the
Central Govt. and any such controlledindustry as may be specified in this behalf bythe Central govt.
In relation to any other industrial dispute in
establishments the State Govt.
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ContdThe govt. having jurisdiction over the area
where the dispute has arisen or apprehendedwould be competent to make a reference inrespect of the industries specified for Central
govt.The govt. may refuse to make a reference on a
consideration of various factors in bonafideexercise of its powers.
There is no time limit to make reference.
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Who appoints the Court of
Inquiry ?
The appropriate govt. appoints the Court ofInquiry.
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Purpose of Court of
InquiryFact finding and the report to the govt. has tobe sent within 6 months from the start ofenquiry.
The court of inquiry cannot decide uponanything.
Its duty is only to enquire into any matterappearing to be connected with or relevant to
any industrial dispute and enlighten the govt.about the opinion of the public on thedispute.
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Who appoints the
Conciliation Officer?The appropriate govt. appoints theConciliation Officer to conciliate, mediate andpromote settlement of industrial disputes.
The conciliation officer is appointed for aspecific industry or specific industry in aspecified area.
Normally conciliation officers are officers of
labor departmentof the app. Govt concerned.
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officer ? (1)The conciliation officer shall, for the purpose of bringing
about a settlement of the dispute without delay investigatethe dispute and all matters affecting the merits and rightsettlement thereof and may do all such things as he thinksfit for the purpose of inducing the parties to come to a fairand amicable settlement of the dispute.
(2) If a settlement of the dispute or of any of the matters in
dispute is arrived at in the course of the conciliationproceedings the conciliation officer shall send a reportthereof to the appropriate Government1[or an officerauthorized in this behalf by the appropriate Government]together with a memorandum of the settlement signed by
the parties to the dispute. (3) If no such settlement is arrived at, the conciliation officer
shall, as soon as practicable after the close of theinvestigation, send to the appropriate Government a fullreportsetting forth the steps taken by him for ascertaining
the facts and circumstances relating to the dispute and forbringing about a settlement thereof, together with a full
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Powers of conciliation
officer ?The conciliation officer has the power tocompel the employer and the workmen topresent the documents
To enforce attendance of parties for theconciliation proceedings.
If he feels that the account books, wage bills,balance sheet are necessary for the dispute
he can insist on production of the same.
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ContdHe has the right to enter the premises, inspectthe location in which the dispute is relatedand can also question the persons concerning
the disputes.The art of the conciliation officer is that he
should be neutral; be fair to both the parties.
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What is a board of
conciliation ?The govt. appoints a board of persons forpromoting the settlement of specificindustrial disputes.
An independent person is appointed asChairman and two or four other membersrepresenting the parties to the dispute in
equal numbers are also appointed.
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Can a board of conciliationimpose an award on partiesto the disputes ?
No, it can only try to bring forth settlement.
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difference between a
conciliation officer and aboard of conciliation ?
Conciliation officer is an executive of
appropriate govt. where as a Board ofconciliation is constituted.
(1) The CO can start the conciliationproceedings on his own initiative in respect of
Public Utility Service; where as a board hasjurisdiction only when the govt. refers thedispute.
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ContdBoard can make recommendations to the govt.for the determination of the dispute; COsubmits either the report on settlement or
failure report to appropriate govt.During the pendency of proceedings before a
board strikes are illegal .Strikes are illegalonly when the dispute relates to a PSU and
conciliation proceedings are pending beforethe CO.
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Contd.If the parties to the dispute with the approvalof the CO agrees that the time limit can beextended, then it can be done.
Conciliation proceedings are concluded whenthe settlement is signed or if a failure reportis received by the govt. from the CO or whenthe Board of conciliation is appointed by the
appropriate govt. or when the dispute isreferred for adjudication by a Labour Court ora Tribunal.
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