Industrial Dispute -

7/30/2019 Industrial Dispute -

1/43

INDUSTRIALDISPUTE ACT 1947


2/43

Definition

The industrial dispute means any dispute or difference between:-

(i) Employers and employers

(ii)Employers and Workmen or(iii)Workmen and workmen, which is connected with

Industrial disputes may be said to be disagreement or

controversy between management and labor with respect towages, working conditions, other employment matters or

union recognition.


3/43

Industry

As per section 2 (J) of industrial disputes act 1947,Industry mean any systematic activity carried on bycooperation between an employer and his work manfor the production supply or distribution of goods and

services with a view of satisfy human wants or needs.


4/43

Objective

Promotion of measures of securing,preserving Industrial harmony

Settlement of disputes between

Rights of Registered Trade Union

Prevention of illegal- Strike; Lockout

Promotion of collective bargaining

EmployerWorkman

Employer - Employer

Workman - Workman


5/43

Types Of IDs

Interest disputes: arisingout of deadlocks in

negotiation for collectivebargaining

Grievance disputes: maypertain to discipline,wages, working time,

promotion, rights ofsupervisors etc. also sometimes called interpretation

disputes

Unfair labor practices:

those arising out of right toorganize, acts of violence,

failure to implement anaward, discriminatory

treatment, illegal strikes andlockouts

Recognition disputes: overthe rights of a TU to

represent class or categoryof workers


6/43

Authority

Any personwho is aworkman

employed inan industrycan raise anindustrial

dispute.

A workman

includes anyperson (includingan apprentice)employed in anindustry to do

manual, unskilled,skilled, technical,

operational,

clerical orsupervisory workfor hire or reward.

It excludes thoseemployed in

managerial oradministrative

capacity.

Industry means

any business,trade, undertaking,manufacture andincludes anyservice,employment,handicraft, orindustrial

occupation oravocation ofworkmen.


7/43

Prohibition of strikes and lock-outs

According to SEC 22 (1) No person employed with a public

utility service shall go on strike in breach of contract

Without giving the employer notice of strike, within six weeks

before the strike. Before the expiry of date of strike specifiedin such notice. According to SEC 23; No employee of any

industrial establishment shall go on strike during the period

when proceedings in any disputes case is going on or when

final judgment is awaited .


8/43


9/43

ORIGIN

Strikes became important during theindustrial revolution when mass labour

become important in factories and mines.

In most countries, they were quickly madeillegal, as factory owner had far more

political power then workers. Most western

countries partially legalized striking in thelate 19th or early 20th century.


10/43

AIM OF STRIKES

Strikes are mostly used to put pressure onthe government or the top management to

change policies or fulfill their demands.

It can be anything like for increasing theirsalary or for bonus or for facilities related

to workplace, etc.


11/43

BAD IMPACTS ON

Economy

Government

Production

International trade

Businessmen

Common people


12/43

RECENT STRIKES IN INDIA

All the pilots of Jet airways going on strikeon same day.

All clerks & P.O of banks going on strike

on same day. Teachers & staff of universities of M.P

going on strike.

Strike of truck operators.


13/43

Works Committee

Conciliation officer

IndustrialUndertaking

CG/State Govt.

Board

Labour court

Tribunal

Arbitral Tribunal AWARD

INDUSTRIAL DISPUTE RESOLUTION

MECHANISM


14/43

Settlement Without State Intervention

There are two ways in which the basic parties to an industrial

dispute- the employer and the employees- can settle their

disputes.

Collective bargaining Voluntary arbitration


15/43

Settlement Under the Influence of the State

Compulsory establishment of bipartite committees.

Establishment of compulsory collective bargaining.

Conciliation and mediation (voluntary and compulsory).

Compulsory investigation.

Compulsory arbitration or adjudication.


16/43

Voluntary Arbitration

It is commonly viewed as less expensive and faster than

resolving a dispute in court.

An arbitrator may be a single person or a panel.

Sometimes, however, the parties may agree to submit the

dispute to an arbitrator but at the same time, reserve their right

to accept or reject the award when it comes.


17/43

Adjudication in India

3 types of adjudication

authorities for theadjudication ofindustrial disputes:

Labor Court Tribunal National Tribunal


18/43

Cont..

Labor Courts and the Tribunal can be established both by the

central and state governments, but the National Tribunal is

setup only by the central government.

National Tribunal is set up to adjudicate such disputes whichinvolve any question of national importance or are of such a

nature that industrial establishments situated in more than one

state are likely to be interested in or affected by them.


19/43

Introduction

The Labor Court adjudicates disputes relating to the propriety or legality of

an order passed by the employer under this standing orders, discharge

or dismissal of workmen, legality or otherwise of a strike or lock-out.

The Tribunal and National Tribunal generally deal with such subject

matters as wages, bonus, profit-sharing, rationalization, allowances, hours

of work, provident fund, gratuity etc.

Strikes and lock-outs are prohibited during the pendency of the proceedings

before any of the adjudication authorities, and two months after the

conclusion of such proceedings and during any period in which the award

is in operation, in respect of any matter covered by the award.


20/43

Other Tripartite Bodies at the State Level

Amongst the important tri partite committees functioning in

the states are:

Implementation and Evaluation Committees

Committees for particular industries

Labor Welfare Boards or Committees

Some of these are permanent, while others are constituted as

and when required.


21/43

Works Committee(1) In the case of any industrial establishment in which one hundred or

more workmen are employed or have been employed on any day in thepreceding twelve months the appropriate Government may by general orspecial order require the employer to constitute in the prescribed manner aWorks Committee consisting of representatives of employers and workmenengaged in the establishment so however that the number ofrepresentatives of workmen on the Committee shall not be less than thenumber of representatives of the employer.

(2) It shall be the duty of the Works Committee to promote measures forsecuring and preserving amity and good relations between the employerand workmen and, to that end, to comment upon matters of their common

interest or concern and endeavour to compose any material difference ofopinion in respect of such matters.

AUTHORITIES UNDER THIS ACT


22/43

The appropriate Government may, by notification in the Official Gazette,

appoint such number of persons as it thinks fit, to be conciliation officers,charged with the duty of mediating in and promoting the settlement ofindustrial disputes.

A conciliation officer may be appointed for a specified area or for specifiedindustries in a specified area or for one or more specified industries andeither permanently or for a limited period.

Conciliation officers


23/43

(1)The appropriate Government may as occasion arises by notification in the OfficialGazette constitute a Board of Conciliation for promoting, the settlement of anindustrial dispute.

(2) A Board shall consist of a Chairman and two or four other members, as theappropriate Government thinks fit.

(3) The Chairman shall be an independent person and the other members shall bepersons appointed in equal numbers to represent the parties to the dispute and any

person appointed to represent a party shall be appointed on the recommendation ofthat party:

Provided that, if any party fails to make a recommendation as aforesaid within theprescribed time, the appropriate Government shall appoint such persons as it thinksfit to represent that party.

(4) A Board, having the prescribed quorum, may act notwithstanding the absence of the

Chairman or any of its members or any vacancy in its number:

Provided that if the appropriate Government notifies the Board that the services ofthe Chairman or of any other member have ceased to be available, the Board shallnot act until a new chairman or member, as the case may be, has been appointed.

Boards of Conciliation


24/43

(1) The appropriate Government may as occasion arises by notification in theOfficial Gazette, constitute a Court of Inquiry for inquiring into an matterappearing to be connected with or relevant to an industrial dispute.

(2) A Court may consist of one independent person or of such number ofindependent persons as the appropriate Government may think fit andwhere a Court consists of two or more members, one of them shall be

appointed as the chairman.

(3) A Court, having the prescribed quorum, may act notwithstanding theabsence of the chairman or any of its members or any vacancy in itsnumber:

Provided that, if the appropriate Government notifies the Court that theservices of the Chairman have ceased to be available, the Court shall notact until a new chairman has been appointment

Courts of Inquiry


25/43

(1) The appropriate Government may, by notification in the Official Gazette,constitute one or more Labour Courts for the adjudication of industrialdisputes relating to any matter specified in the Second Schedule and forperforming such other functions as may be assigned to them under this Act.

(2) A Labour Court shall consist of one person only to be appointed by theappropriate Government.

(3) A person shall not be qualified for appointment as the Presiding Officer of aLabour Court, unless -

(a) he is, or has been, a Judge of a High Court; or

(b) he has, for a period of not less than three years, been a District Judgeor an Additional District Judge; or]

(c) he has held any judicial office in India for not less than seven years ; or(d) he has been the Presiding Officer of a Labour Court constituted underany Provincial Act or State Act for not less than five years.]

Labour Courts


26/43

(1) The appropriate Government may, by notification in the Official Gazette,constitute one or more Industrial Tribunals for the adjudication of industrialdisputes relating to any matter and for performing such other functions asmay be assigned to them under this Act.

(2) A Tribunal shall consist of one person only to be appointed by theappropriate Government.

(3) A person shall not be qualified for appointment as the presiding officer of aTribunal unless:

(a) he is, or has been, a Judge of a High Court; or

(b) he has, for a period of not less than three years, been a District Judge or an

Additional District Judge.

(4) The appropriate Government may, if it so thinks fit, appoint two persons asassessors to advise the Tribunal in the proceeding before it.

Tribunals


27/43

(1) The Central Government may, by notification in the Official Gazette,constitute one or more National Industrial Tribunals for the adjudication ofindustrial disputes which, in the opinion of the Central Government, involvequestions of national importance or are of such a nature that industrialestablishments situated in more than one State are likely to be interestedin, or affected by, such disputes.

(2) A National Tribunal shall consist of one-person only to be appointed by theCentral Government.

(3) A person shall not be qualified for appointment as the presiding officer of aNational Tribunal unless he is, or has been, a Judge of a High Court.

(4) The Central Government may, if it so thinks fit, appoint two persons asassessors to advise the National Tribunal in the proceeding before it.

National Tribunals


28/43

No person shall be appointed to, or continue in, the office of the PresidingOfficer of a Labour Court, Tribunal or National Tribunal, if -

(a) he is not an independent person; or

(b) he has attained the age of sixty-five years.

Disqualifications for the Presiding Officers of Labour Courts, Tribunals and National Tribunals


29/43

Employee Welfare

Employee welfare means the efforts tomake lifeworth living for workmen. According toToddemployee welfare means anything donefor thecomfort and improvement, intellectual or

social, of the employees over and abovethe wages paidwhich is not a necessity of the industry


30/43

Features of Employee Welfare

Employee welfare is a comprehensive term including various services, facilities and

amenities

provided to employees for their betterment.

* The basic purpose in to improve the lot of the

working class.

* Employee welfare is a dynamic concept.

* Employee welfare measures are also knownas

fringe benefits and services.

* Welfare measures may be both voluntary and

statutory

Obj ti f E l W lf


31/43

Objectives of Employee Welfare Employee welfare is in the interest of the employee, the

employer and the society as a whole. The objectives of employee welfare are: -

* It helps to improve.* It improves the loyalty and morale of the employees.* It reduces labor turnover and absenteeism.* Welfare measures help to improve the goodwill and

public image of the enterprise.

* It helps to improve industrial relations and industrial

peace.

* It helps to improve employee productivity

A i f E l W lf


32/43

Agencies of Employee Welfare 1. Central government: - The central government has made

elaborate provisions for the health, safety and welfare under

Factories Act 1948, and Mines Act 1952. These acts provide forcanteens, crches, rest rooms, shelters etc.

2. State government: - Government in different states and Union

Territories provide welfare facilities to workers. State governmentprescribes rules for the welfare of the workers and ensures

compliance with the provisions under various labor laws.

3. Employers: - Employers in India in general looked upon welfare

work as fruitless and barren though some of them indeed had done

pioneering work.

4. Trade unions: - In India, trade unions have done little for the

welfare of workers. But few sound and strong unions have been thepioneering in this respect. E.g. the Ahmedabad textiles laborassociation and the Mazdoor sabha, Kanpur.

5. Other agencies: - Some philanthropic, charitable d socialservice

organizations like: - Seva Sadan society, Y.M.C.A., etc

T f E l W lf


33/43

Types of Employee Welfare * Intramural: - These are provided within the

organization like: -

1. Canteen, 2. Rest rooms,

3. Crches,4. Uniform etc.

* Extramural: - These are provided outside the organization, like: -

1. Housing,

2. Education,

3. Child welfare,4. Leave travel facilities,5. Interest free loans,6. Workers cooperative stores,7. Vocational guidance etc.

Types of Employee Welfare


34/43

Types of Employee Welfare Statutory welfarework - comprising the legal provisions in various pieces of labor legislation.

Voluntary welfare work - includes those activities which are undertaken by employers for their voluntary work.

Different ways of Social Security Provision in India

1. Social Insurance-common fund is established with

periodical

contribution from workers out of which all benefits in terms ofcash or kind are paid.The employers & state prove major portion offinances.Benifits shuch as PF, Group Insurance etc are offered.

2. Social Assistance- Benefits are offered to persons of small means by govt out of its general revenues. Eg- Old age pension

Social Security Employee Welfare


35/43

Social Security Employee Welfare Medical care

- Sickness benefit in cash

- Old age pension or retirement benefit- Invalidity pension- Maternity benefit- Accident benefit- Survivors benefit

Art 41 0f Indian constitution says that the state shallwithin the

limits of its economic capacity & develeopment, makeeffectiveprovision for security , the right to work, to education & topublicassistance in cases of unemployment, oldage, sickness&disablement & in other cases of undeserved want

Philosophy of Employee Welfare


36/43

Philosophy of Employee Welfare The philosophy of labour welfare activities is

based on the theory that success of industrial

development depends upon harmoniousrelations and co-operation between labourandmanagement (employer ). The labour has a

fund of knowledge and experience at hisjobs. Ifrightly directed and fully used, it would makeagood contribution to the prosperity of the

organization this can be achieved onlythroughthe satisfaction of the labour.

Theories of Employee Welfare


37/43

Theories of Employee Welfare The Police Theory: This is based on the contention that a minimum standard of welfare is necessary for

labourers. Here the assumption is that withoutpolicing, that is, without compulsion, employers donot provide even the minimum facilities for workers

The Religious Theory: This is based on the concept

that man is essentially "a religious animal." The Philanthropic Theory: This theory is based on man's love for mankind. Philanthropy means "Loving

mankind.

Trusteeship Theory - This is also called thePaternalistic Theory ofLabour Welfare. According to this the industrialistor employer holds the total industrial estate,properties, and profits accruing from them in a

trust.

Th i f E l W lf


38/43

Theories of Employee Welfare Placating Theory -According to this theory, timely and

periodical

acts of labour welfare can appease the workers.They are some kind of pacifiers which come with afriendly gesture

The Public Relation Theory: This theory provides thebasis for an atmosphere of goodwill between labour and

management, and also between management and the public,labour welfare programmes under this theory, work as a sortof an advertisement and help an organization to project itsgood image and build up and promotegood and healthy publicrelations.

The Functional Theory -This is also called the EfficiencyTheory. Here, welfare work is used as a means to secure,preserve and develop the efficiency and productivity oflabour, It is obvious that if an employer takes good care ofhis workers, they will tend to become more efficient andwill thereby step up production.

R l f M t i E l W lf


39/43

Role of Management in Employee Welfare

Organizations provide welfare facilities to their employees tokeep

their motivation levels high. The employee welfare schemescan be

classified into two categories viz. statutory and non-statutory

welfare schemes.

The statutory schemes are those schemes that arecompulsory to

provide by an organization as compliance to the lawsgoverningemployee health and safety. These include provisionsprovided in

industrial acts like Factories Act 1948, Dock Workers Act(safety,health and welfare) 1986, Mines Act 1962.

The non statutory schemes differ from organization toorganization

and from industry to industry


40/43

Impact of Welfare on Productivity


41/43

Impact of Welfare on Productivity The welfare measures aim at integrating the socio-psychological

needs of employees, the unique requirements of a particular

technology, the structure and processes of the organization andtheexisting socio-cultural environment.

It creates a culture of work commitment in organizations and

society which ensure higher productivity and greater job

satisfaction to the employees.

Due to the welfare measures, the employees feel that the

management is interested in taking care of the employees thatresult in the sincerity, commitment and loyalty of the employeestowards the organization.

The employees work with full enthusiasm and energetic behavior

which results in the increase in production and ultimately the

increased profit

I L O & E l W lf


42/43

I L O & Employee Welfare

ILO was setup in 1919 as a part of League of Nations for

the promotion of universal peace through social justice.

Important areas of ILO activities & field operations- Manpower orgn & vocational training

- Migrant workers- need to promote equality of migrantworkers in

all social &labour matters.

-Women workers- protection

- Child workers- against exploitation

- Social Security-Conditions of work-Health , safety & welfar

I L Os Employee Welfare


43/43

I L O s Employee Welfare

ILO has suggested welfare funds on a collective basis tofinance

activities in small undertakings.

It has adopted a number of convections & recommendations

regarding industrial accidents & occupational health.

New dimension to welfare activities has been provided by

ILOs contribution to family welfare & population education prog

among

industrial workers in organised sector in India

It has rendered exemplary service to all 3 elements

composing it govt, employees & workers.

It has greatly influenced labour legislation, labour welfare ,trade

unionism & Industrial Relations in India

Industrial Dispute -

Documents

Transcript of Industrial Dispute -