CHAPTER 14:

TRADE DISPUTE SETTLEMENT

OCTOBER 2010

OVERVIEW

RESOLVING TRADE DISPUTES

INDUSTRIAL COURT

1. RESOLVING TRADE DISPUTES

1.1 DIRECT NEGOTIATION

Ideal method

2 parties are willing to come together for discussion

until a satisfactory compromise is reached

Solutions arrive at by mutual decision between the 2

parties without the involvement of an outsider is

more likely to result in smooth implementation

without further damaging their relationship

Seen as a mature and harmonious way of settling a

dispute

Voluntary negotiations- encouraged in the IRA

Eg: a collective agreement must include a grievance

procedure(a method the parties can use to settle

any dispute arising out of the implementation of the

agreement)

1.2 CONCILIATION

Definition: process of arriving at a settlement of a trade dispute with the help of a third party(neutral party)

Carried out by officers of the Dept of Industrial Relations

Can be voluntarily requested requested by either of the disputing parties, or the Director General of Industrial Relations may intervene ‘in public interest’, requiring the parties to attend a conciliation meeting->COMPULSORY CONCILIATION

Director General cannot intervene, however until he is sure that the parties’ effort to settle the problems themselves although negotiations have filed

Procedure

If the 2 parties still fail to resolve, the DG can:

Use other methods to bring the 2 parties to resolve the problems

Inquire further the causes and circumstances of the dispute

Appoint arbitrator

IR officers meet the parties

Both parties brief on problems that have arose

IF officer advice both parties until acceptable by both parties

It must be noted that the officers have no authority to insist that the parties accept any particular recommendations

1.3 ARBITRATION

When the disputing employer and union cannot find

a solution by themselves with the help of the DG,

arbitration may be the only way to settle dispute

In arbitration, an impartial 3rd party which is

Industrial Court is given the authority to settle the

dispute by examining the information given by both

sides and then make judgement

Types

Voluntary: 2 Parties disputing request a third party to

solve the problems and they are willing to accept

whatever decisions made by arbitrator

Compulsory: the 2 parties are compelled by law to

have arbitration

Decision of arbitrators will be an award and shall

be binding to parties in dispute

1.4 MEDIATION

A rare method; not mentioned in employment laws but is occasionally used nevertheless

The mediator needs to pay for the services whereas conciliation is free

Similar to conciliation in that a neutral 3rd party is called in by the employer and the trade union who are in the midst of a dispute to help them find a settlement

The mediator is not usually from the government, but is a person considered unbiased and impartial and is respected and trusted by both parties

A politician or other local leader may intervene in a dispute at the request of the parties and he may be able to bring about a settlement

2. INDUSTRIAL COURT

2.1 ROLE OF INDUSTRIAL COURT:

PART 7 IRA

Role:

To provide a peaceful and unbiased means of settling

disputes between employer and employees(arbitration)

To prevent conflict from escalating

2.2 STRUCTURE OF THE INDUSTRIAL

COURT:

SECTION 21, IRA Industrial Court consists of a President appointed by

YDPA and a number of Chairman to assist president

and also 3 panels:

Representative of employer

Representative of employees

Independent person

2.3 PROCEEDINGS:

SECTION 27 OF IRA

Parties to a dispute may be represented at the

hearing as follows:

Employer may choose one of his officers (from Industrial

Relations Dept of Legal Dept) to present his case, if can

be represented by officer/employee of association or

represented by MEF official

Union of employees may appoint officer/employee of

trade union of MTUC official to represented them

Employees may be represented by office/employee of

trade union or MTUC

2.4 POWER OF INDUSTRIAL COURT:

SECTION 29, IRA

To summon any person who in the court’s opinion is connected with the proceedings

To join, substitute or strike off a party

To take evidence on oath or affirmation

To compel the production of books, papers, documents

To hear and determine the dispute referred to it in the absence of any party notified to the proceedings and despite the failure of any party to submit a written statement within the prescribed time

To conduct its proceedings in private

To call in the aid of experts

To direct and do everything necessary to determine speedily the dispute referred

POWER OF INDUSTRIAL COURT:

SECTION 30, IRA

To make an interim award(award relating to issues

in dispute before the court)

To make a consent award(award based on terms of

settlement reached to parties to the dispute before

the court, prior to or during the proceedings)

To specify period for which an award is to be

effective

POWER OF INDUSTRIAL COURT:

SECTION 33B, IRA

Award of Industrial Court shall be final and

conclusive and shall not be challenged, appealed

against, reviewed or called in question in any court

2.5 JURISDICTIONS OF INDUSTRIAL

COURT(IC)

Definition

Practical authority granted to a formally constituted

legal body or to a political leader to deal with and

make pronouncements on legal matters and, by

implication, to administer justice within a defined area

of responsibility

The right and power to interpret and apply law

Jurisdictions

Unfair dismissal claim: IC has jurisdiction over representations alleging unjustified dismissal made by non-unionized workmen against their employers

Trade disputes: IC has jurisdiction over trade disputes referred to for arbitration by the Minister.

He may refer a dispute to the Court on the joint request of the employer and also of the union representing workmen.

He may also refer a dispute on his own motion, if he is satisfied that he is expedient(helpful) to do so.

Interpretation of collective agreement or award:

IC has jurisdiction over all collective agreement entered into by employers and workmen’s unions. Every agreement must be submitted jointly by parties to the court for its cognizance or approval.

IC also has jurisdiction over request to interpret awards.

In interpreting an award, the Court is required to afford the parties thereto a reasonable excuse to be heard.

Contravention of union rights or complaints of non-compliance

IC has jurisdiction over complaints alleging non-compliance with awards or approved collective agreements and also over complaints alleging contravention of the trade union rights and responsibilities imposed on employers and workmen.

Amendment

IC has the power to require the parties to amend the

agreement as directed by it. And if they refuse, the court

has the authority to amend the agreement itself after

affording them a reasonable opportunity to be heard.

Misbehavior

IC has jurisdiction over any contempt or misbehavior

committed in its presence. The court may detain the offender

in custody or have him removed. It may also punish him by

fine or imprisonment, or discharge him or remit his

punishment.

Bonus

Bonus: a widespread practice in the private sector.

Encouraged by the gov- ingredient in the flexi-wage

system where workers are rewarded financially if the

company improves its productivity

Reduction of existing benefits