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Unit 3 : Management of Conflicts as related to IR
and different methods of resolving conflicts
1. Union recognition
2. Conditions for effective Collective Bargaining
and process of CB
3. Adjudicating and Proceedings under ID Act
and the role of Govt.
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Conflict / Dispute
Conflict of interest between management and labour leadsto disputes / conflict .
Industrial Dispute Act 1947
- Object of the act is to make provisions for investigationand settlement of industrial disputes ,
- Provides machinery for settlement of disputes , if disputes
cannot be solved through Collective Bargaining .
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Definitions :
Industrial Dispute Act (1947) , Section 2 (j) :
Industry means any business , trade , undertaking ,manufacture or calling of employers and includes
any calling , service , employment , handicraft or
industrial occupation or avocation of workmen .
Examples : hospitals , educational institutions ,
universities , charitable institutions , welfareorganizations , professions , clubs , cooperatives ,research institutes .
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Industrial Dispute Act (1947) , Section 2 (k)
industrial dispute means any dispute or
difference between employers and employers , orbetween employers and workmen , or between
workmen and workmen , which is connected withthe employment or non employment or the terms
and conditions of employment or with theconditions of labour, of any person .
Section 2 A , provides that dismissal , discharge ,
retrenchment of even a single workman will beindustrial dispute even if no other workman orany union is a party to the dispute .
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Industrial Dispute Act (1947) , Section 2 (x)
workman means any person (including apprentice)
employed in any industry to do any manual , clerical orsupervisory work for hire or reward . It includesdismissed , discharged or retrenched person also .However , it does not include (i) Armed Forces i.e thosesubject to Air Force Act , Army Act or Navy Act (ii) Police
or employees of prison (iii) Employed in mainlymanagerial or administrative capacity or (iv) person insupervisory capacity drawing wages exceeding Rs. 1,600per month or functions are mainly of managerialnature
Teachers are not considered as workmen thougheducational institutes fall under industry as per the Act.
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Conditions for dispute to qualify as Industrial
Dispute :
1. There must be a difference/dispute between employers,workmen or employers and workmen;
2. It is connected with employment / non-employment /
conditions of labour / any industrial matter ;
3. Workman does not draw wages exceeding Rs. 1600 permonth;
4. The relationship between the employer and theworkman must be in existence and should be the resultof a contract and the workman actually employed .
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Causes of Industrial Conflicts
1. Industry related factors :
- Terms and conditions of Employment ;
- Work ;
- Wages;
- Hours of work ;
- Privileges , the rights and obligations of employees and
employers ;
- Dismissal or non-employment of any person ;
2 . Other Causes :
- Political influence on trade union movements ;
- Corruption in industry and public life ;
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3. Management related factors :
- managements unwillingness to recognise a particular
trade union ;- Managements insistence that it alone is responsible for
recruitment , promotion , transfer , merit awards , and there
is no need to consult employees in regard to any of
these matters ;
4. Government related factors :
- Changes in economic policies ; ex. Liberalisation and
privatisation led to many strikes in country ;- Loss of relevance of labour laws in context of changed
industrial climate / culture ;
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Classification of Industrial Disputes
1. Interest Disputes / Conflicts of interest / economicdisputes / collective labour disputes :
- relate to the determination of new terms and conditions
of employment for the general body of workers.- Trade unions demand improvement in wages , fringe
benefits , job security .
- Bargaining power , compromise and test of economic
strength before the parties reach an agreed solution .
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2. Grievance / Right disputes / legal / Individual disputes :
- Involves individual workers only or a group of workers inthe same group ;
- Generally arise from day-to-day working relations in any
undertaking ;
- Grievance relating to discipline and dismissal ;- Payment of wages and other fringe benefits , working
time , over-time ,
- Promotions , demotions , transfer of seniority ;
- Resolved through collective agreement , employmentcontract , Labour courts , Tribunals .
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3. Recognition disputes :
- managements refusal to recognise a trade union for thepurpose of collective bargaining
- Rules for trade union recognition are given in Codes of
Discipline or Industrial Relations Charters.
4. Disputes over Unfair Labour Practices :
- Sec. 25 T : prohibits unfair labour practices by employer or
workman or a trade union .
- Sec. 25 U : If any person commits unfair labour practice ,he is punishable with fine upto Rs. 1,000 and
imprisonment upto 6 months .
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Fifth Schedule to Act gives list of Unfair Labour Practices :
In case of Employer :- Interfering in TU activities ;
- Threatening workmen to refrain them from TU activities ;
- Establish employer sponsored TU;
- Abolish work of regular nature and to give that work tocontractors ;
- Acts of force and violence ;
- Refuse collective bargaining ;
- Continue illegal lock-out .
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In case of Workmen and Trade Unions :
- Support or instigate illegal strike ;
- Coerce workmen to join or not to join a particular TU;- Threatening or intimidating workmen who do not join
strike ;
- Refuse collective bargaining in good faith ;
- Acts of force or violence or intimidation .
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Impact of Industrial Dispute :
1. Workers :
- Loss of wages ;
- Disruption of family life ,
- Personal hardship ;
2. Employers :
- Heavy losses due to stoppage of production ;
- Reduction in sales , loss of markets ;
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3. Society :
- Problems of law and order ;
4. National Economy :
- Impoverishment of people actually involved in the
stoppage ,
- If the output of the industry under the dispute is base
for other industries it results in loss of output , leading
to reduction in National income ;
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Strikes :
Industrial Disputes Act ,1947 , Section 2 (q) :
a cessation of work by a body of personsemployed in any industry acting in combination ,or a concerted refusal under a commonunderstanding of a number of persons who are or
have been so employed to continue to work or toaccept employment .
Elements of Strike :
- Plurality of workmen ;
- Cessation of work or refusal to do work ; and
- Combined or concerted action .
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Types of Strikes
Industrial Disputes
Strikes
Primary Secondary Others
- Stay away - Sympathy - General
- Sit down / Stay in - Particular/ tool down - Political
/ Pen down - Bandh
- Go- slow
- Token / protest- Lightning / cat call
- Picketing and Boycott
- Gherao
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1. Stay away :
- workmen simply do not come to the work place duringprescribed working areas .
- They organise rallies and demonstrations to drawattention of the employer to their grievances ;
2. Sit -down / stay-in:
Sit down - Group of employees or others interested inattaining certain objectives in a particular business takepossession of property of that business , establish themselvesin the plant , stop its production and refuse access to theowners or to others desiring to work .
Tool /Pen down - employees lay down their tools /pen andrefrain from doing work though they remain on job inworkplace.
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3. Go slow :
Deliberately delaying of production by workmen pretending
to be engaged in the factory .
4. Token / Protest :
- A short duration strike and is of the nature of signal of
danger ahead .- The purpose is to exert moral persuasion rather than to
precipitate a crisis ;
- Intention is not to disrupt the business of employer but
to communicate to him the sentiments of employees onmatters of issue.
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5. Lightning / Cat-call:
- Such type of strike is suddenly announced , generally byway of surprise without notice or at very short noticeand thereafter the issues in dispute are discussed .
- Generally legal , except where notice is to be furnished .
6. Picketing and Boycott :
Picketing is an act of posting pickets and implies marchingor patrolling of workmen in front of the premises of theemployer , carrying and displaying signs /banners for the
purpose of preventing others from entering the place .Boycott voluntary withdrawal of cooperation .
- Not unlawful , unless coercion , threat , violence etc. areinvolved
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7. Gherao :
Physical blockade of a target by encirclement , intended to
block the egress and ingress from and to a particular office, workshop , factory or residence or forcible occupation .
- Target may be a place / persons etc.
- Object of gherao is to compel those who control industryto submit to the demand of workers without recourse to
the machinery provided by law and in disregard of it.
- All workmen guilty of wrongfully restraining any person
or wrongfully confining him during gherao may be foundguilty under Indian Penal Code
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Secondary Strike
Sympathetic :
- Strike in which striking workmen have no
demands or grievances of their own against their
employer but they may go on strike for thepurpose of directly aiding or supporting others in
their cause .
- Strike is unjustifiable invasion of the rights of
employers and is generally unlawful .
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When are Strikes justified :
1. when launched for economic demands , such asbasic pay , dearness allowance , increment , leave and
other fringe benefits which are primary objective of
a TU. Strike launched for political or for reasons
other than trade union objective are not justified .
2. When existing facilities are summarily withdrawn,
or when the provident fund is closed and rationbenefits are withdrawn
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3. If there is any unfair labour practice on the part ofmanagement a strike is justified
4. The demands of workmen should be reasonable and
legitimate so that there is a primafacie justification for the
demands . The demands should not be frivolously raised or
for ulterior reasons . When the demands are excessive andunreasonable , or when an agitation is launched though
demands are already settled , then any strike to enforce the
said demands cannot be said to be justified .
5. When there is no response from the management in
spite of refering a demand and issuing a reminder , a strike
is justified.
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Principle of Commensurability
Evolved by Federal Court of Germany for judging the
legality of a strike :
1. The strike must be appropriate for attaining legitimate
goals, consistent with subsequent industrial peace ;
2. The strike must take into account economic possibilities ,
keeping the public interest in view ;
3. The strike must be necessary in the light of facts and
should be used as the last resort after exhausting all
other possibilities and procedures like , for instance ,
arbitration in the dispute ;
4. The strike must be a fair fight . It must not have the aim
of destroying the opponents .
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5. Rules of the union and collective agreements generally
cast a duty for ensuring maintenance and other emergency
work , which includes the following elements :
a) Work for protecting the firm and averting danger to
public arising from the firm .
b) Measure for maintaining the firms plant and equipment
so that work can be resumed immediately , once thestrike is over.
c) Protection of vulnerable raw material and finished
product to ensure that resumption of work is not
jeopardised at the end of the industrial action .
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Collective Bargaining
- Made of two words collective group action through its
representatives and bargaining - negotiation.
- Term coined by Sydney and Beatrice Webb of Great
Britain which is said to be the home of collective
bargaining;
- Originated as trade union activity ;
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Evolution of Collective Bargaining
In India :
- 1918, Gandhiji as a leader of the Ahmedabad Textileworkers , advocated the resolution of conflict by mutual
negotiation and discussion between employers and
workmen .The Ahmedabad pattern of CB superheaded by
Gandhiji has influenced Government legislation in India.
In Britain :
- Process of Joint Production Committee (JPC) originated in
Whitley Councils of World War I , was given renewed
emphasis during World War II and further reinforced after
1945 with national objective of increasing productivity.It
offers an opportunity for a two way communication
process between management and workers.
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USA
- The Joint Production Committee was introduced during
World War II , but disappeared after World War II.
Both USA and Great Britain shared a common faith in CB
as the heart of their Industrial systems . But in Britain it
was more centralised due to small size of the country .
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Definitions :
Collective Bargaining is a negotiation between an employeror group of employers and a group of working people to
reach an agreement on working conditions
- The Encyclopaedia Britannica
Collective Bargaining is a process of negotiation and other
related pressure tactics (like threats , counter-threats )
adopted by the employers and the organised workers
represented by their union in order to determine the termsand conditions of employment.
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Subject matter of Collective Bargaining
- Union recognition and scope of bargaining unit ;
- Management rights ;
- Union Security ;
- Strikes and Lockouts
- Union activities and responsibilities ;
- Wages ;
- Working hours and working conditions ;
- Job rights and seniority ;
- Discipline , suspension and Discharge ;- Grievance Handling and Arbitration ;
- Health and Safety ;
- Insurance and Benefit Programmes.
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Factors responsible for successful CB
- Given by Lester and Sister:
1. Economic environment factors ;
2. Psychological factors and structure of power relation ;
3. Nature and Characters of the product market ;4. Nature of the labour market ;
5. Capital requirement and cost conditions ;
6. State of business conditions ;
7. Types of industrial relationship :
- employers attitude
- workers attitude
- Government policy.
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Importance of Collective Bargaining
- best suited to the concept of industrial democracy ;
- Ensures important status for workers ;
- Ensures industrial peace ;
- Not only a method of settling disputes , but also its
prevention ;
- Fosters responsibility on part of both workers and
employers.
- Presupposes workers right to strike and employers right
to lockout ie both the parties are conscious that if CB
fails there will be a loss to employer and workers both
- Better than external statutory regulation which often
involves cumbersome , expensive and long drawn legal
proceedings and leaves a bitterness on the party which
looses dispute.
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Principles of Collective Bargaining
- Arnold F. Campo
For Union and Management :
1. an educational as well as a bargaining process.
2. means of finding the best possible solution.
3. Both parties to a dispute should command
mutual respect.
4. Mutual confidence ,good faith, and a desire tomake CB effective in practice .
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5. honest , able and responsible leadership.
6. Two parties should observe and abide by all thenational and state laws which are applicable to
CB.
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For the Management :
1. develop and consistently follow a realistic labour
policy.
2. grant recognition to TU.
3. create the conditions in which grievances of the
employees are settled even before the TUbrings them.
4. greater emphasis on social considerations.
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For Trade Unions
1. should eliminate racketeering and other
undemocratic practices.
2. have obligations to assist management in the
elimination of waste and in improving quality
and quantity of production.3. resort to strikes only when all other methods of
settling a dispute have failed ;
4. should appreciate the economic implications of
CB;
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3. TU should to bring about satisfactory
results.
4. TU Leaders, for their demands are
generally met from the income and
resources of the organisation in whichthey are employed .
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Forms of Collective Bargaining
1. Single Plant Bargaining- between management and a single TU .
2. Multiple Plant Bargaining
- A single factory or establishment havingseveral plants and workers employed in
all these plants.
3. Multiple employer bargaining- Between all TUs of the same industry and
employers federation . Ex. Textile industry
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A. Developing a Bargaining Relationship
1. Recognition of Bargaining Agent :
(in case if there are multiple TUs , selection
could be made on the basis of following )
a. Selection of representative union by secretballot ;
b. Selection through verification of
membership by some government agency ;
c. Bargaining with joint committee of all
major unions;
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d. Bargaining with a negotiation committee
in which different unions would be
represented in proportion to their verifiedmembership ;
e. Bargaining with a negotiation committee
which consists of elected representative of
every department of the organisation
selected by secret ballot, irrespective oftheir union affiliations .
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2. Level of Bargaining :
- at the level of the enterprise ;
- at the level of the entire industry in thecountry / at national level;
- at the level of the industry in a particular
region regional industry level.
3. Scope and Coverage of Collective Bargaining :
- wages , bonus , promotion etc. is yet it is
considered advantageous , both for managementand TU to cover many issues of interest to
both parties as possible.
2 P f N ti ti d i B i i
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2. Process of Negotiation during Bargaining
a. The negotiation stage and
b. The stage of contract administration.
Negotiation Stage :
a. Preparation for negotiation- Huge data collection on various issues ;
- Management collects this data from government
, research staff etc.
- TUs collect data from their own central
organisations.
P l d t t t th bj ti hi h
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- Personnel department sets the objectives which
are proposed to be achieved through negotiation
and which are related to anticipated TU demands
. However top managements approval isobtained on :
i. The specific proposals of the company, including
objectives of negotiation ;
ii. An appraisal of the cost of implementing the
proposals if they are accepted by the two parties
; and
iii. An approval in principle of the demands ofthe TU over which bargaining has to be made,
the demands which are acceptable and which
are not acceptable .
b N ti ti T h i / P d
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b. Negotiation Technique / Procedure :
- Negotiation committee must ideally have
3-6 members
- Management Committee has a chief
spokesman / principal negotiator
- Committee plans the negotiations while
chief negotiator evolves a strategy ofaction and tactics to be adopted during
negotiations .
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Union Demands could be analysed and classified
into three categories :
i. demands which may possibly be met ;ii. Demands which may be rejected ;
iii. Demands which call for hard bargaining.
CB culminates in an agreement which is known as
Labour contract / Union contract / Labour-
management agreement ie. A statement of the
terms and conditions of service which have been
arrived at between the two parties
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c. Follow up action :
Agreement should be printed and
circulated among all the employees so
that they know exactly what has been
agreed upon between management and
their representatives
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B. Contract Administration
Once the agreement is signed , both TUand management are required to honour it
in letter and spirit . Union officers and
company executives should explain the
terms and implications of the contract to
employees and supervisors with a view to
ensure that day-to-day working relationship
between workers and management isguided by that contract .
Campo laid down principles which must act
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Campo laid down principles which must act
as guidelines for persons administering
contract :
1. For Union and Management :
- both should make genuine effort to
establish and strengthen the machinery
for CB and make it function effectively .
- proper procedure should be adopted for
redressal of grievances.
- both parties should see to it that every
commitment made by either is
scrupulously honoured.
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For the Management
Management should avoid paternalism and strive to
treat the TU representatives and its employees asequals .
Management should be available for conferences
with workers representatives so that it may acquire
first hand knowledge of the changing attitudes and
problems of the employees.
Management should see to it that its top executives
and all those who may have anything to do withtheir implementation , understand the terms of
agreement that it may have arrived at with its
employees and / or their representatives.
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For the TUs
TU must see that its members understand the
terms of the agreement it has reached with the
management ;
TU should assume responsibility and see to itthat its members meticulously observe the terms
of the agreement ;
Union representatives should make themselves
available for a conference whenever they are
required to do by the management.
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Collective Bargaining in India
Factors fostering Collective Bargaining in India
1. Statutory provisions , which have laid down some
general principles of negotiation , procedure for
collective agreements and the character of the
representation of the negotiating parties.
2. Voluntary measures , such as tripartite
conferences, joint consultative boards and
industrial committees at the industry level haveprovided an ingenious mechanism for the
promotion of CB practices.
3
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3. The measures like schemes for workers education ,participation of labour in management , evolution of Code of
Inter-Union Harmony, the Code of Efficiency and Welfare, the
Code of Discipline, the formation of joint management councils,work committees and shop councils and the formulation of
grievances redressal procedure at plant level - have
encouraged growth of CB.
4. The Industrial Truce Resolution (1962) has also influenced
the growth of CB. The Resolution required managements and
workers to strive for constructive cooperation in all possible
ways and enjoined on them to resolve their disputes
peacefully through mutual discussion,conciliation and
voluntary arbitration.
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5. The amendment to the Industrial Disputes
Act 1964, provided for the termination of an
award or a settlement only when a proper
notice to that effect was given by a majority
of workers and not by any TU representing
a minority . They also ensure that theagreements or settlements, which are arrived
at by a process of negotiation or conciliation
, are not terminated by a section of theworkers.
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Recent trends in Collective Bargaining
CB in India is shifting from traditional issues
like wages , DA ,employment conditions to non-
traditional issues like welfare facilities ,fringe
benefits ;
Following items are included :- House Rent Allowance : recommended in Fourth
Pay Commission ,all government employees are
entitled to fixed HRA on the basis of category of
city in which it resides.
- Leave Travel Concession : tax free benefit , in form
of one or one and half month salary with 10-15
days of privilege leave to travel.
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- Educational allowance
Fourth Pay Commission makes a specific reference
to payment of educational allowance for thechildren of employees. Generally covers cost of
tuition fees, books, uniform etc.
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National Commission on Labour on CB
Recommendations of 1st National Commission on
Labour (1969) on CB:
1. In the absence of arrangements for statutory
recognition of unions except in some States and
provisions which required employers and workers to
bargain in good faith , it is no surprise that
reaching of collective agreements has not much
made headway in our country . Nonetheless, the
record of collective agreements has not been asunsatisfactory as it is popularity believed . Its
extension to a wider area is certainly desirable .
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2. There is a case for shift in emphasis and increasingly
greater scope for and reliance on CB. Any sudden change
replacing adjudication by a system of CB is neither called
for nor is practicable. The process has to be gradual . Abeginning has to be made in the move towards CB by
declaring that it will acquire primacy in the procedure of
settling industrial disputes.
3. Conditions have to be created to promote CB . The most
important among them is statutory recognition of a
representative union as the sole bargaining agent. The place
which strikes /lockout should have in the overall scheme ofindustrial relations needs to be defined ; CB cannot exist
without the right to strike /lockout.
Recognition of Unions
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Recognition of Unions
A TU seeking recognition as a bargaining agent from an
individual employer should have a membership of at least
30% of workers in the establishment . The minimummembership should be 25 % if the recognition is sought for
an industry in a local area .
Recommendations of National Commission on Labour
1. Recognition should be made compulsory under a Central
Law in all undertakings employing 100 or more workers or
where the capital invested is above a stipulated size. A TU
seeking recognition as a bargaining agent from anindividual employer should have a membership of at least
30 % of the workers in the establishment. The minimum
membership should be 25% if recognition is sought for
local area.
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2. The Industrial Relations Commission is to certify the
Union as a representative union on the basis of either
verification of membership of the contending unions or
by a secret ballot open to all workers in theestablishment . The commission will deal with various
aspects of union recognition such as (i) determining the
level of recognition whether plant , industry , centre-cum-
industry ,to determine which is the majority union ; (ii).
Certifying the majority union as a recognised union for
collective bargaining ; and (iii). Generally dealing with
other related matters .
3. The minority unions should be allowed only the right to
represent cases of dismissal and discharge of their
members before the Labour Court .
3. The recognised union should be statutorily given certain
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g y g
exclusive rights and facilities , such as the right of sole
representations; the right to enter into collective
agreements on terms of employment and conditions of
service ; the right to collect membership subscriptions
within the premises of the undertaking ; the right of
check-off ; holding discussion with departmental
representatives within factory premises , inspecting , by
prior agreement , the place of work of any of itsmembers and nominating its representatives on works /
grievance committees and other bipartite committees ;
4. The unions should be made strong , organisationally andfinancially .
Multiplicity of unions and intra-union rivalries
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Multiplicity of unions and intra-union rivalries
should be discouraged :
- providing compulsory registration of unions ;
- raising the minimum number required for
forming a union ;
- raising the minimum membership fees ;
- reduction in the number of outsiders ;
- Taking steps to build internal leadership .
L k t
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Lockouts
lockout means the closing of a place ofbusiness or employment or the suspension
of work, or the refusal by an employer to
continue to employ any number of personsemployed by him
Sec. 2 (1),Industrial Dispute Act
1 A Lockout is the closure of an Industrial
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1. A Lockout is the closure of an Industrial
undertaking because of the existence of
or apprehension of an industrial dispute ,
violence and damage to property ;
2. It is the suspension of employment in sofar as the employer refuses to give work
to the workmen until they yield to his
demand or withdraw the demands made
on him or because of closing down of a
place of employment and the suspension
of the work.
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3. A lockout is an antithesis of a strike . Just
as the employees can go on a strike , so
the employer has a weapon against the
employees to lock them out of his
premises and not allow them to return to
work.
4 A lockout is used with some intention i e
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4. A lockout is used with some intention , i.e.
To coerce or force workmen to come to
terms. The lockouts , thus , necessarily
involve an overt act on the part of the
employer and an element of motive of ill-
will. In the absence of this overt-act , the
temporary suspension of work would notamount to a lockout and the workmen
cannot claim wages for the period of
closure .
Following do not constitute lockout :
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Following do not constitute lockout :
1. Prohibiting an individual employee is not a
lockout ;
2. Termination of employment by retrenchment
does not amount to a lockout ;
3. Termination of services of more than oneperson at the same time would not be a
lockout.
4. Declaration of a lockout by an employer merely
on the ground that the workmen have refrained
from attending to work is not a lockout .
Consultative Machinery :
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Consultative Machinery :
to bring the parties together for mutual
settlement of differences in a spirit of co-operation and goodwill
Tripartite Bodies in IndiaSet up by government to provide a forum
of discussion and consultation on various
labour-related issues .
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1. Indian Labour Conference :
Function to advise the Government of India on
any matter referred to it for advice , taking intoaccount suggestions made by the provincial
government, the states and representatives of the
organisations of workers and employers
Central Government in consultation with allIndia
organisations of workers and employees
,nominated representatives of workers andemployers .
2. Standing Labour Commission
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2. Standing Labour Commission
Function to consider and examine such
questions as may be referred to it by Plenary
Conference or the Central Government, and to
render advice taking into account the suggestions
made by various governments, workers andemployers .
Evaluation of ILC and SLC:
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Evaluation of ILC and SLC:
According to the National Commission on Labour
, these two bodies have immensely contributed
to attainment of the objectives set before them.
the ILC /SLC have facilitated the enactment of
Central legislation on various subjects to bemade applicable to all the states and union
territories in order to promote uniformity in
labour legislation . Tripartite deliberations helped
to reach a consenus, inter alia,
- on statutory minimum wage fixation (1944) ,
- introduction of a health insurance scheme (1945);
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( );
- Enactment of the Standing Employment Order Act
(1946);
- The Industrial Disputes Act (1947)
- Enactment of Minimum Wages Act (1948);
- Dock Workers Regulation of Employment Act
(1948);- The Employees State Insurance Act ,1948 ;
- Provident Fund Scheme 1950;
- The Mines Act ,1952- The Employees Provident Fund Act ,1952
and making of legislation concerning payment of
bonus , regulation and abolition of contract labour
The tripartite deliberations also facilitated the
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The tripartite deliberations also facilitated the
formulation of comprehensive procedures for the
settlement of disputes under the Industrial
Disputes Act,1947 . Both the inception of LabourAppelate Tribunal in 1950 and its abolition in
1956 were the result of such deliberations . The
range of subjects discussed at the forums of ILC /
SLC has been large and has included social ,
economic and administrative matters concerning
labour policy
- workers education , workers participation in
management, Code of Discipline etc.
3. Committee on Conventions
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3. Committee on Conventions
- Three-man Tripartite committee set-up in
1954.
- Objectives:
- to examine the ILO conventions andrecommendations which have not so far been
ratified by India; and
- To make suggestions with regard to a phased
and speedy implementation of ILO standards
4. Industrial Committees :
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- First committee was constituted in 1947 ;
- Relating to plantations , cotton textiles , jute , coal-
mining , mines other than coal , cement , tanneries
and leather goods manufactures , iron and steel ,
building and construction industry , chemical
industries , road transport , engineering industries ,metal trades , electricity , gas and power and
banking .
5. Other Tripartite Committees:
a. Steering Committee on Wages : set up in 1956
as a study group on wages ;
Functions :
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- To study trends in wages , production and prices ;
- To plan collection of material for drawing up a
wage map of India ; and
- To draw up reports from time to time for laying
down principles which will guide wage fixing
authorities .
b. National Productivity Council :
Consists of representatives of the government ,employers associations , labourers associations ,
labourers organisations and certain independent
experts.
Bipartite Bodies :
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Bipartite Bodies :
- Purely consultative committees and notnegotiative .
- Equal representation of employers and the
workers ;
- First recognised in 1920s ;
- Two important constituents :
- Works Committee
- Joint Management Council
1. Works Committee
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- Formed by any enterprise employing 100 or more
workers ;
- Total number of members not to exceed 20 ;- Structure :
- a chairman appointed by employer ;
- a vice-chairman members of committee ;
- secretary and a joint secretaryeither employer /worker
- Functions promote measures for securing and
preserving amity and good relations between the
employer and the workmen; and to that end,commentupon matters of their common interest or concern
and endeavour to compose any material difference of
opinion in respect of such matters Sec. 3 (1)(2) IDA -
1947
- Supply of drinking water , ventilation , temperature , rest-
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pp y g , , p ,
room , medical and health services , safe working
conditions ; administration of welfare funds , educational
and recreational activities etc.
2. Joint Management Councils :
Concept is implicit in the staement of Industrial Policy
Resolution, April 1956 :In a sociolaist demcracy , labour is a partner in the
common task of development and should participate in it
with enthusiasm. There should be joint consultation ,
workers and technicians should , wherever possible, be
associated progressively in management . Enterprises in
the public sector have to set an example in this respect
Standing Orders and Grievance Procedure
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Standing Order:
- Refer to the rules and regulations which govern the
conditions of employemnt of workers.- specify duties and responsibilities on the part of both
employer and employee
First legislative enactment was Bombay Industrial DisputesAct, 1932 (Sec. 26 Chapter V):
Every employer, in respect of any industry or occupation
to which this Section has been applicable, shall within 2
months from the date of such application, submit to theCommissioner of Labour for approval in such manner as
may be prescirbed, Standing Orders regulating the
relations between him and his employees with regard to
industrial matters mentioned in Schedule I
Matters mentioned in Schedule I were :
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Matters mentioned in Schedule I were :
1. Classification of Employees - whether permanent
, temporary, apprentices, probationers, or badlis ;
2. Manner of notification to employees of the
period and hours of work , holdays , pay-days
and wage rates ;3. Shift working ;
4. Attendance and late coming ;
5. Leave and holidays and conditions , procedure
and authority for the grant of these ;
6. Liability to search and entry into premises
through certain gates ;
7. Temporary stoppages of work and rights and
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e po a y s oppages o o a d g s a d
liabilities of employers and employees arising
therefrom ;
8. Termination of employment and notice to be
given by employer and employees ;
9. Suspension or dismissal for misconduct and acts
of omissions which constitutes misconduct ; and
10. Means of redress for employees against unfair
treatment or wrong exactions on the part of
the employer or his agent or servant .
Industrial Employment (Standing Orders) Act was
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enacted in 1946 , with a view to regulate :
- the conditions of recruitment ;
- discharge ;
- disciplinary action and
- holidays of the workers employed in industrial
undertaking .
Industrial Employment (Standing Orders) Act was
amended in 1982 to provide for the payment ofsubsistence allowance to workmen who were
kept under suspension , pending a domestic
enquiry .
Industry
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Employer Workmen
Dispute
Mutually settled Fails to get settled
Agreement (Sec.18 (1))
Conciliation Officer
Talks fail Talk Succeed (SettlementSec. 12(3))
Failure report to appropriate Government
Does not refer for adjudication Refer for adjudication(Parties free to lockout or strike)
Labour Court Industrial Tribunal National Tribunal
AWARD (binding for atleast one year)
Grievances
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Grievances
Grievances are the claims by workers of a Trade
Union concerning their individual or collective rightsunder an applicable collective agreement , individual
contract of employment , law, regulations, work rules,
custom or usage.
Views of National Commission on Labour
1. There should be a statutory backing for the
formulation of an effective grievance procedurewhich should be simple, flexible, less cumbersome
and more or less on the lines of the Model
Grievance Procedure
2 . It should be time-bound and have a limited
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number of steps, namely :
- approach to the immediate supervisory staff
- appeal to the bipartite grievance committee
representing management and the recognised
union . In rare cases, where unanimity eludes
the committee, the matter may be referred toan arbitrator
3. A grievance procedure should be such that it givesa sense of satisfaction to the individual worker,
ensures reasonable exercise of authority to the
manager and a sense of participation to unions.
4. The constitution of the grievance committee
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should have a provision that in case a
unanimous decision is not possible , the
unsettled grievance may be referred toarbitration . At the earlier stages, a worker
should be free to be represented by a co-
worker and later by an officer of the union, if
one exists.
5. It should be introduced in all units employing
100 or more workers.
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G i P d
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Grievance Procedure
Grievance Procedure
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The Code of discipline, adopted in the 16th session of
the Indian Labour Conference, highlighted the need for
a model grievance procedure as under:
a) The aggrieved employee to present grievance
verbally in person to the officer designated for thispurpose, who shall give an answer within 48 hours.
b) If the employee is not satisfied with the decision, hecan, accompanied by a union representative, present
the grievance in writing to the head of the department,
who shall settle it within 3 days.
c) If the workman is still dissatisfied, he may request
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the departmental head to refer the matter to the
grievance committee, which normally consists of equal
representatives of management and the union. Thegrievance committee shall submit its recommendations
to the manager concerned within 7 days of receipt of
the grievance. Unanimous recommendations shall be
straight away implemented by the management. In anycase, the decision should be is communicated to the
employee by the personnel officer within 3 days of the
receipt of the recommendations of the grievance
committee.
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d) If dissatisfied with the decision, the employee has a
right of appeal to the higher tier of management for
revision. A decision on the appeal should becommunicated within 7 days.
e) If still not satisfied with the decision, the union mayask for voluntary arbitration in the matter.
Indiscipline / Misconduct
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Discipline first, it is the training that corrects,moulds, strengthens or perfects individual behaviour ;
second , it is control gained by enforcing obedience ;
and third , it is punishment or chastisement
- Websters Dictionary
Misconduct is a transgression of some established
and definite rules where no discrimination is left tothe employee.
Causes of Misconduct
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1. unfair labour practices and victimisation on the
part of employers, like wage differentials ,unreasonable declaration of payment or non-
payment of bonus ,wrongful works assignment,
defective grievance procedure etc. ;
2. Bad service conditions ,defective communication
by superiors and ineffective leadership lead to
discipline ;
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3. Poverty, frustration, indebtedness, generally
overshadow the minds of the workers. These agitate
his minds and often results in indiscipline.
4. Generally speaking absenteeism , insubordination ,
dishonesty and disloyalty , violation of plant rules ,gambling , incompetence , damage to machine and
property , strikes , etc. , all lead to industrial
indiscipline.
Model Standing Orders , Clause 14
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Acts and omissions which are generally regarded
as misconduct and provide for disciplinary action.
Wilful insubordination or disobedience whether
alone or in combination with others , to any
lawful and reasonable order of a supervisor ;
Theft , fraud or dishonesty in connection withemployers business or property ;
Wilful damage to , or loss of , employers goods
or property ; Taking or giving bribes or any illegal gratification ;
Habitual negligence or neglect of work ;
Habitual absence without leave or absence
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without leave for more than ten days .
Habitual breach of any law applicable to the
establishment;
Riotous or disorderly behaviour during working
hours at the establishment or any subversive of
discipline; Frequent repetition of any act or omission for
which a fine may be imposed to a maximum of
two per cent of the wages in the month ;
Restoring to a strike or inciting others to go on
a strike in contravention of the provisions of any
law or rule having the force of law.
Disciplinary Action
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Disciplinary Action
Principles to conform disciplinary action :
1. The principal of natural justice must
guide all enquiries and actions . No party
of interest should be involved in this.
2. The principle of impartiality or consistency
.No marked difference should be their in
identical situations .
3. The principle of impersonality , the disciplinary
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3. The principle of impersonality , the disciplinary
authority should not have a sense of elation /
triumph / sadistic pleasure on punishing the
employees.
4. The disciplinary authority should afford
reasonable opportunity to the offender todefend himself . Article 311 of the Constitution
of India says: No person employed by the
Union or a State Government shall be dismissed
or removed until he has been given a
reasonable opportunity showing cause against
the action proposed to be taken in regard to
him.
Model Standing Orders lay down beforedi i i l h h ld b i
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dismissing an employee , he should be given an
opportunity to explain the circumstances alleged
against him.
Procedure for Punishment :
1. Framing and issuing a chargesheet2. Receiving the Defendents Explanation
3. Issuing Notice of Enquiry
4. Holding the Enquiry
5. Findings of the Enquiry Officer
6. Decision of the Disciplinary Authority
7. Communication of the Order of Punishment
Termination of Employment
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p y
1. Voluntary abandonment of service by the
employee2. Resignation by the employee
3. Discharge by notice thereof given by the
employer4. Discharge or dismissal by the employer as a
punishment for misconduct
5. Retirement on reaching the age of
superannuation.
Mediation and Conciliation
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Conciliation encourages the parties to discuss their
differences and to help them develop their ownproposed solutions.
Mediation is a stronger form of intervention and a
mediator may be permitted to offer to the parties
proposals for settlement.
Both of them refer to different form of third-partyintervention in promoting voluntary settlement.
Mediation:
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Mediation is a process by which a third party
brings together the opposing groups not only to
iron out the differences between them but also tofind an answer to problems or specified proposals
and offer alternative suggestions.
Kinds of Mediator :
Prof. Pigou
1. The eminent outsider;
2. The non-governmental board ; and
3. The board connected with some part of the
governmental system of the country.
Factors for successful Mediation
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1. Climate of consent ;
2. Mediator must be an impartial and unprejudiced
person having influence on the parties ;
3. It should support collective bargaining , and not
substitute it.
Conciliation
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the practice by which the services of a neutral
third party are used in a dispute as a means of
helping the disputing parties to reduce the extent
of their differences and to arrive at an amicable
settlement or agreed solution . It is a process or
rational and orderly discussion of differencesbetween the parties to a dispute under the
guidance of a conciliator
- ILO
Conciliation Machinery in India :
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Conciliation Officer :
According to IDA-1947, the Central and State
Governments can appoint conciliation officer by a
notification in the Official Gazette to that effect.
charged with the duties of mediating in and
promoting the settlement of industrial disputes. He
may be appointed for a specified area or for
specified industries in any area or for one or morespecified industries. He can be permanently
appointed or for a limited period.
- Sec. 4 IDA
Sec. 12 (2) , IDA - he may do all such things as he thinks fit
for the purpose of inducing the parties to come to a fair
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and amicable settlement of the disputes .
If no settlement is reached , the conciliation officer is
required to send immediately a full report to the
appropriate government setting forth the steps taken by him
and the probable reasons for failure. The report shall
contain a full statement of the facts and circumstances ofthe dispute . The conciliation officer can only send a report
but has no authority to pass a final order. He must submit
the report of the settlement or non-settlement of the
dispute within 14 days of the commencement of theconciliation proceedings , or within such shorter period as
may be fixed by the appropriate government. (Sec. 12)
Sec. 5, IDA -1947 : the Government may also , as
occasion arises appoint a Board of Conciliation
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occasion arises, appoint a Board of Conciliation,
consisting of a Chairman (who is an independent
person ie. Unconnected with the dispute or withany industry directly affected by such dispute) and
two to four other members, to promote the
settlement of disputes.
- Conciliation is compulsory in case of Public Utility
Services , whereas in case of non-public utility
services , it is not compulsory but trend istowards compulsion.
Qualities of a Conciliator:
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Qualities of a Conciliator:
- Independence and impartiality ;
- Should be fit physically and psychologically ;
- Should be well-acquainted with laws and
regulations of industrial relations and settlement
of industrial disputes ;- Well-trained in different aspects of the
management process ;
- Ability and versatility to form judgements.
Types of Conciliation
1 Voluntary Conciliation : the disputes are referred to
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1. Voluntary Conciliation : the disputes are referred to
the conciliation officer or the Board of Conciliation
by both parties of their own free will ; they agreeto have their disputes settled by an outsider
(without any compulsion of law) ; but they are free
to accept or not to accept the decision .
2. Compulsory Conciliation : conciliation procedure is
made compulsory by provisions requiring the
parties attendance at conciliation proceedings or
empowering the conciliation authority to compeltheir attendance at such proceedings ,as well as by
the prohibition of strikes and lockouts without prior
resort to conciliation.
Preliminary steps towards Conciliation
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A decision has to be taken to submit a dispute
to conciliation ; A conciliator has to be assigned to the case ;
Conciliator has to make initial/ exploratory
contacts with the parties .- he will give them information ;
- obtain information from them ;
- establish his relationship with them on a
positive basis ;
Conciliator may hold two types of meetings :
i J i t f tt d d b b th ti d
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i. Joint conferences attended by both parties ; and
ii. Separate meetings with only one party.
Sequential pattern of Conciliation:
1. Hard Posture Phase:
- Each party takes stand of it being correct and
other party being wrong ;
- Conciliator acquires information on the partiesposition and of gap which separates them , on the
basis of which he begins his efforts ;
2 Search for his Accommodation :
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2. Search for his Accommodation :
- Each party is concerned with protecting its own
bargaining position ;
- Conciliators objective is to induce them to adopt
a flexible attitude and move closer to each other.
3. Emergency of appropriate mood for settlement of
compromise:
- Conciliator encourages and assists the parties to
make modified proposal and counter-proposals
Drafting of an agreement :
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In case of settlement of dispute , a signed report is
to be submitted to government as well as partiesconcerned , which indicates the following :
1. The steps taken by the conciliator to ascertain
the facts and circumstances relating to thedispute ;
2. The steps taken to bring about the settlement ;
3. Full statement of facts and circumstances ;
4. The reasons for which the settlement could not
be reached
Arbitration
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Arbitration is a means of securing an award on a
conflict issue by reference to a third party .
Conditions for referring a dispute to Arbitration
IDA 1947 :
1. An industrial dispute exists or is apprehended in
an establishment ;
2. The employer and the workers agree , in writing , to
refer the dispute to arbitration ;3. The arbitration agreement is in the prescribed form
and signed by the parties to it in the prescribed
manner;
4. The agreement must be accompanied by the
consent in writing of the arbitrator or arbitrators;
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consent , in writing, of the arbitrator or arbitrators;
5. The dispute must be referred to arbitration at any
time before it has been referred to a labour courtor tribunal or a national tribunal ;
6. The reference must be to the person or persons
specified in the arbitration agreement to act as
arbitrator / arbitrators ;
7. The arbitration agreement must set forth the
issue / issues to be decided by the arbitration
procedure and a copy of the agreement isforwarded to the government and the conciliation
officer ;
Qualification of Arbitrator
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1. Understanding of the complexities of the labour-
management relationship ;
2. A knowledge of collective bargaining and the
operation of arbitration procedures, as well as skill
and experience in the interpretation of collective
agreements; and familiarity with personnel policies
,industrial discipline and human relations ;
3. Committed to the maintenance of harmonious
labour-management relations and have a strongbelief in the importance of successful arbitration ;
4. High integrity , ie should be impartial towards the
parties ;
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parties ;
5. They must be acceptable to the parties .
Procedure for Investigation :
1. Referring the dispute to the arbitrator ;
2. Collection of data pertaining to the particular
disputes ;
3. Investigation of facts and circumstances of thedispute with the objective of ascertaining who
and what are involved in the dispute ;
4. Arbitrator may call witnesses , get evidence and
relevant records and documents , current and the
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,
past agreements ; ordinances , court decisions,
statutes (bearing on the case) and arbitrationdecisions by other arbitrators in similar cases ,
that may suggest a line of reasoning .
5. Arbitrator has to follow certain principles while
dealing with a particular dispute :
- fair hearing , which demands that an
opportunity must be given to both the parties
to be heard and cross- examined ;- natural justice, party should have notice of
proceedings , issues involved and role of the
party.
- party should be free to give any evidencewhich is relevant to enquiry and on which it
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which is relevant to enquiry and on which it
relies for it arguments ;
6. Submission of Award : after investigation , arbitrator
has to submit his award to the government .
- award has same legal force as the judgment of a
labour court or tribunal . The award must be signedby arbitrator ;
- arbitrator must ensure the following points while
writing an award:
- the award is in line with the terms of
reference and that it does not go beyond its
jurisdiction ;
- it must be precise and definite and shouldnot be capable of being misunderstood or
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not be capable of being misunderstood or
misinterpreted ;
- capable of being enforced or implemented ;
- should contain a date or a specific period for
its implementation ;
- award should not violate any provision of any
existing law or settlement legally arrived at , or
one which is binding on parties ;
- award should contain sufficient justification or
reasons for settlement arrived at by the
arbitrator
Types of Arbitration :
1 Voluntary : implies that two contending parties
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1. Voluntary : implies that two contending parties ,
unable to compose their differences by
themselves or with the help of the mediator orconciliator, agree to submit the conflict / dispute
to an impartial authority , whose decision they
are ready to accept .
Essential elements in voluntary arbitration :
- voluntary submission of dispute to an arbitrator ;
- Subsequent attendance of witnesses and
investigations ;
- Enforcement of an award may not be necessary
and binding because there is no compulsion .
Compulsory Arbitration : when the parties are
required to accept arbitration without any
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required to accept arbitration without any
willingness on their part . When one of the parties
to an industrial dispute feels aggrieved by an act ofthe other, it may apply to appropriate government
to refer the dispute to an adjudication machinery.
Voluntary Arbitration in India
- In India it became prominent with the advocacy by
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In India , it became prominent with the advocacy by
Mahatma Gandhi of its application to the
settlement of disputes in the textile industry inAhmedabad ;
- Bombay Industrial Disputes Act and Bombay Industrial
Relations Act 1946 recognised voluntary arbitrationas well as the machinery set up by the state for
composing differences between employers and
workers ;
- On ILOs suggestion of voluntary arbitration being a
better mode of settlement of disputes Government
of India amended Industrial Dispute Act -1947 , in
1956 to provide for settlement of industrial disputes
by voluntary references to arbitration This was
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by voluntary references to arbitration . This was
done in IDA -1947 Section 10 (A) , (which became
effective from March 10, 1957 ) the parties to adispute can , by written agreement, refer the
dispute to an arbitrator for arbitration , before it
has been reffered for adjudication ;
- National Arbitration Promotion Board :
To make voluntary arbitration more acceptable to
parties and to co-ordinate efforts for itspromotion , government appointed National
Arbitration Promotion Board in July, 1967.
Functions of the Board are :
1 To review the position periodically ;
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1. To review the position periodically ;
2. To examine the factors inhibiting a wider
acceptance of this procedure and suggest measure
to make it more popular ;
3. To compile and maintain up-to-date panels of
suitable arbitrators for different areas and
industries and to lay down their fees ;
4. To evolve principles , norms and procedures for the
guidance of the arbitrator and the parties ;
5. To advise parties , in important cases, to accept
arbitration for resolving disputes so that litigation
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arbitration for resolving disputes so that litigation
in courts may be avoided ;
6. To look into the cause or causes of delay and
expedite arbitration proceedings , wherever
necessary ;
7. To specify , from time to time , the types of
disputes which would normally be settled by
arbitration in tripartite decisions .
Adjudication
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Adjudication involves intervention in the dispute
by a third party appointed by the government forthe purpose of deciding the nature of final
settlement
Types of Adjudication :
When the government gets a report of failure of
conciliation proceedings , it has to decide whether
it would be appropriate to refer the dispute toarbitration . The reference of dispute to
adjudication is at the discretion of the
government .
1. Voluntary Adjudication : When both parties , at their
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1. Voluntary Adjudication : When both parties , at their
own accord agree to refer the dispute to
adjudication , it is obligatory on the part ofgovernment to make a reference. When a reference
to adjudication is made by the parties , it is called
Voluntary adjudication.
2. Compulsory Adjudication : When reference is made
to adjudication by the government without the
consent of either or both the parties to thedispute , it is known as Compulsory Adjudication .
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Constitution :
A labour court shall consist of one person only
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A labour court shall consist of one person only ,
who :
a. Is or has been a judge of a High Court ; or
b. Has been , for a period of not less than 3
years , a district judge ; or
c. Has held any judicial office in India for notless than 7 years .
No person shall be appointed or continue in the
office of the labour court if he is not anindependent person , or if he has attained the
age of 65.
Duties of Labour court :
1 To hold adjudication proceedings expeditiously ;
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1. To hold adjudication proceedings expeditiously ;
and
2. Submit its award to the appropriate government
as soon as practicable on the conclusion of the
proceedings .
Jurisdiction of labour court adjudicates following
disputes specified in Second Schedule :
1. The propriety or legality of an order passed by
an employer under the Standing Orders ;
2. The application and interpretation of Standing
Orders ;
3. Discharge or dismissal of workers, including
reinstatement of , or grant of relief to, workers
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, g ,
wrongfully dismissed ;
4. Withdrawal of any customary concession or
privilege ;
5. Illegality or otherwise of a strike or lockout ;
6. All matters other than those specified in theThird Schedule of the Act (i.e. Those matters which
are within the jurisdiction of industrial tribunals).
Limitations :
1 It cannot act as a guardian of an industrial
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1. It cannot act as a guardian of an industrial
establishment ;
2. Its duty is limited to see whether the enquiry
satisfies the principles of natural justice .
Industrial Tribunals
- Government may appoint one or more industrial
tribunals for the adjudication of industrial
disputes relating to any matter , whether specified
in the Second or the Third schedule ;- Ex. new demands ;
- It is not a court , but has all necessary attributes
of a court of justice .
Constitution :
A tribunal consists of one or more persons such
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A tribunal consists of one or more persons , such
as:
1. Are or have been judge(s) of a High Court ;
2. Are or have been District Judge(s) for a period
of not less than 3 years ;
3. Hold or have held the office of the Chairmanor any other member of the Labour Appellate
Tribunal or any tribunal for a period of not less
than 2 years.
- The government may , if it thinks fit, also appoint
two persons as assessors to advise the tribunal in
the proceedings before it .
Functions and Duties of Industrial Tribunal :
1 May create new obligations or modify contracts
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1. May create new obligations or modify contracts
in the interest of industrial peace ;
2. Protect legitimate trade union activities and
prevent unfair practices and victimisation ;
3. Tribunals are required to give awards based on
circumstances peculiar to each dispute .
Jurisdiction :Covers matters specified in Second or Third
schedule , covering the promotion of social justice :
Matters specified in Third Schedule are:
1. Wages, including the period and mode of
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g , g p
payment ;
2. Compensatory and other allowances ;
3. Hours of work and rest intervals;
4. Leave with wages and holidays ;
5. Bonus , profit-sharing , provident fund andgratuity ;
6. Shift working , otherwise than in accordance with
the standing orders ;
7. Classification of grades ;
8. Rules of discipline ;
9. Rationalisation;
10. Retrenchment of workmen and closure of an
establishment ;
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establishment ;
11. Any other matter that may be prescribed.
Twelve Central Government Industrial Tribunals
cum- Labour Courts.
- two of each are located in Dhanbad andBombay
- one each at Asansol , Kolkata , Jabalpur , New
Delhi , Jaipur , Chandigarh , Kanpur and Bangalore .
National Tribunals :
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Central government may by a notification in the
Official Gazette constitute one or more nationaltribunals for the adjudication of industrial disputes ,
which in the opinion of the Central Government ,
involve questions of national importance or are of
such nature that industrial establishments situated
in more than one state are likely to be interested
in, or affected by such disputes .
Constitution :
A national tribunal shall consist of one person
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A national tribunal shall consist of one person
only to be appointed by the Central Government
, who :
a. is or has been a judge of a High Court or
b. Has held the office of the Chairman or any
other member of the Labour Apellate Tribunalfor a period of not less than 2 years .
If the Central Government thinks fit , it may
appoint two persons as assessors to advise the
national tribunal on the proceedings before it.
Procedure for settlement of Disputes
1 Disputes are referred for adjudication to a
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1. Disputes are referred for adjudication to a
labour court , tribunal or national tribunal by the
government within two weeks of the date of
receipt of the order of reference , the parties
representing workers and employers involved in
the dispute must file a statement of demands
relating to such issues included in the order of
reference ;
2. A copy of this statement must be forwarded toeach one of the opposite parties involved in the
said dispute ;
3. After filing of the statement , the date is fixed
on which the first hearing of the dispute will
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take place (this date should be fixed within six
weeks of the date on which it was referred foradjudication)
4. The hearing must ordinarily be continued from
day-to-day and arguments must follow
immediately after all the evidence has been
submitted.
5. The adjudication authority should not ordinarily
grant an adjournment for a period exceeding a
week at a time and not more than three
adjournments in all at the instance of one of
the parties to the dispute .
6. The proceedings before a labour court , tribunal
or national tribunal is deemed to have
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commenced on the date of reference of dispute
for adjudication ;
7. The proceedings before a labour court , tribunal
or national tribunal is deemed to have
concluded on the date of reference of disputefor adjudication ;
Central Industrial Relations Machinery in India
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- Set up in 1945 with Chief Labour Commissioner
as Head of the Department ;
- Objective : to make effective the various
provisions of Industrial Disputes Act - for theprevention , investigation and settlement of
disputes in the industries in the Central sphere
and the enforcement of awards, settlemnts of
labour laws of which the responsibility is vested
in the Central Government.
- C.I.R.M is located in Delhi ;
- Head : Chief Labour Commissioner ;
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Head : Chief Labour Commissioner ;
- Assisted by 31 officers who perform line and
staff functions ;
- Has 18 Regional Labour Commissioners heading
18 respective regions Ajmer , Ahmedabad ,
Asansol , Bombay, Bangalore, Bhubaneshwar ,Chandigarh, Calcutta , Cochin, Dhanbad, Guwahati,
Hyderabad, Jabalpur, Kanpur , Madras , New Delhi,
Nagpur and Patna ;
- 70 Assistant Labour Commissioners ;
- 160 Labour Enforcement Officers
Functions of C.I.R.M. :
1. Prevention and settlement of industrial disputes
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1. Prevention and settlement of industrial disputes
in industries located in the central sphere (for
which the Central Government is appropriategovernment under the Industrial Disputes Act,
1947);
2. Enforcement of labour laws in industries andestablishments located in the central sphere (for
which the Central Government is appropriate
government under the relevant labour laws)
3. Ad hoc verification of membership of TU in
major ports
4. Verification of membership of TUs in
nationalised banks for identification of the
i i f ili h i
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representative union to facilitate the appointment
of workers director on the board of directors
5. Verification of membership of registered trade
unions affiliated to the Central Trade Union
Organisations (CTUOs) to determine the strength
of CTUOs for the purpose of giving
representation to CTUOs on national and
international force .
6. Enforcement of awards and settlements;
7. Conduct of enquiries into the breaches of code
of discipline ;
8. Promotion of Works Committees and workers
participation in management ;
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9. Collection of statistical information in the central
sphere pertaining to industrial disputes, work
stoppages, wages , labour situation and labour
regulation ;
10. Defence of Court cases and writ petitions arising
out of implementation of labour laws .