Preliminary:
The Industrial Disputes Act, 1947 extends to whole of India
Scope and
Objects (Sec. 1) ,
The objects of the industrial relation's legislation in
general are to maintain
industrial
peace and, to achieve economic justice. . .
The prosperity of any industry very much depends upon its
growing production. Production is possible when the industry functions smoothly
without any disturbances. This means industrial peace through harmonious
relationship between labour and management. Therefore every industrial
relations legislatiqn necessarily aims at providing conditions congeniel to the
industrial peace.
Economic justice is
another objective of industrial legislation. Almost all industrial interuptions
in production are due to industrial disputes. Dissatisfaction with the existing
economic conditions is the root cause of industrial disputes. The labour
demands for fair return is expressed in varied forms; e.g. increase in wages,
resistance to decrease in wages and grant of allowance and benefits etc. If a
labourer wants to achieve these gains individually, he fails because of his
weaker bargaining power against the sound economic footing of the management.
Therefore, the economic struggle of labour with capital can be fought
collectivity by organised labours. It is with this object to provide economic
justice by ensuring fair return to the labour, the State, being the custodian
of public interest, intervenes by 'State legislation' Economic justice has also
been ensured to the people of India
Thus the main object
of all labour legislation is to ensure fair wages and to prevent disputes so
that the production might not be adversely affected2. The principal objects of
Industrial Disputes Act as analyzed and interpreted by the Supreme Court are as
follows.3
(1) The promotion
of measures for securring and preserving amity and good relations between
employers and workmen;
(2)
Investigation and settlement of industrial dispute between employers and
employers, employers and workmen, or between workmen and workmen with a right
of representation by a registered Trade Union or . Federation of Trade Unions
or Association of Employers or a Federation of Association of Employers.
(3) The prevention of illegal strikes
and lock-outs;
(4) Relief to workmen in the matter of
lay-oft, retrenchment and closure of
an undertaking. .
(5) Collective bargaining.
Main Features or Characterstics of the
Act::
Some
of the important features of the Act may be summearised as below:
1. Any industrial dispute may be referred to
an industrial tribinal by mutual
consent
of paries to dispute or by the State Government, if it deems expedient to do
so.
2. An award
shall be binding on both the parties to the dispute for the
operated
period, not exceeding one year;
3. Strike
and lockouts are prohibited during:
(a) The pendency of
conciliation and adjudication proceedings;
(b) the pendency of settlements
reached in the course of conciliation
proceedings, and .
(c) the pendency of awards of
Industrial Tribunal declared binding by
the appropriate Government.
4.
In public interest or emergency, the appropriate Government has power to
declare the transport (other than railways), coal, cotton textiles, food stuffs
and iron and steel industries to be public utility services for the purpose of
the Act, for a maximum period of six months.
5.
In case of lay-oft or retrenchment of workmen, the employer is requested to pay
compensation to them. This provision stands in the case of transfer or closure
of an undertaking.
6.
A number of authorities (Works Committees, Conciliation Officers, Board of
conciliation, Courts of Inquiry, Labour Courts, Tribunal and National Tribunal)
are provided for settlement of Industrial disputes. Although the nature of
powers, functions and duties of these authorities differ from each other,
everyone plays important role in ensuring industrial peace.
Definitions (Sec.2) :
(a)
Appropriate Government: The Central Government as well as the State Government
are vested with various powers and duties in relation to matters dealt with in
this Act. In relation to some industrial disputes the Central Government and in
relation to some others, the State Government concerned are the appropriate
Government to deal with such disputes.
Under
sub-section [(i) (a)] and [(i)(b)] of the Act, Companies/Corporations/
Trusts/Boards/
Authorities, etc. established under the Act of Parliament; the Central
Government is the Appropriate Authority.
In all other cases, the
Appropriate Government is the State Government
within whose territory the industrial dispute aries Sub-section (ii).
(aa) Arbitrator - Arbitrator includes an umpire.
(aaa) Average Pay - "Average
Pay" means the average of the wages
payable to a workmen, Average pay in the case of workmen means:
(i) In the Case of
monthly paid workman- The average of monthly
wages payable
in three complete calendar months.
(ii) In the case of weekly
paid workman - the average of the weekly
wages payable
in four complete weeks.
(iii) In the case of daily paid workman -
the average of the wages for
twelve full
working days.
(b) Award - 'Award' means an interim or
final determination of any' industrial
dispute or of any question
relating thereto. The determination must be
made by any Labour Court
Enforcement
of an award - An award may be enforced in the following ways:
(1) The aggrieved party
may apply to Appropriate Government for
prosecuting the
defaulting party under Sec. 29 or 31 of this Act.
(2) Where the work man
'isto claim money from the employer, the
workman may move the
Appropriate Government for recovery of
the money due to him under
the award.
(3) The party in whose favour the award has
been granted may file a suit and obtain
a decree, which shall be enforced extension under provisions of the Civil
Procedure Code.
Where the interim order did not determine any
part of the industrial dispute or
any
other question relating there to, but only determined whether the Industrial
Tribunal has been properly constituted to which the industrial dispute could be
referred for adjudication, such order cannot be said to be an award as defined
in Sec. 2(b)2
(bb)
Banking Company - 'Banking Company' means a banking company
as defined in Sec.5 of the
Banking Companies Act, 1949.
(c) Board - 'Board' means a Board of
Conciliation constituted under this Act.
(cc)
Closure - 'Closure' means the permanent closing down of a place of
employment or
part thereof
Penalty for closure (Sec. 25R)
1.
Any employer who close down an undertaking without complying with the
provisions of the Sub-Sec. (1) of Sec. 25-0 shall be punishable with
imprisonment up to 6 months, or with fine up to Rs. 5,000 or with both.
2.
Any employer, who contravenes a direction given under Sub-sec. (2) of Sec. 25-0
or Sec. 25-P, shall be punishable with imprisonment up to one year, or with
fine up to Rs. 2,000 for every day during which the contravention continues
after the conviction.
3. Any
employer who contravenes the provisions of Sub Sec. 25-0 shall be punishable
with imprisonment up to one month, or with fine up to Rs. 1000 or with both.
(d) Conciliation Officer - 'Conciliation Officer' means a
conciliation officer appointed under the Act. .
(e) Conciliation Proceeding - 'Conciliation
Proceeding' means any proceeding
held by a Conciliation Officer or Board under the Act.
(ee) Controlled Industry - "Controlled
Industry" means any industry the control of which, by the Union has been declared by any Central Act to the
expedient in the public interest. That is, an industry which is controlled by
the Central Government. But it must also be declared by the Central Act to be
controlled by the Union .
(f) Court - "Court" means a Court of Inquiry constituted
under this Act. (g) (g) Employer -
"Employer" means, in relation to industries carried on by or under the authority of (i) Central
Government, (ii) State Government, or (iii) Local Authorities.
(h) Executive - "Executive", in relation
to a Trade Union means the body by whatever name called, to which by management
of the affairs of the Trade Union is entrusted.
(i) Independent - Means, for the purpose of
appointment of a person as Chairman or other member of a Board, Court or Tribunal. In
order that a person may be eligible for his appointment to these bodies, he must possess the following qualifications:
(i)
. He must be
unconnected with industrial dispute in question, or.
(ii) He must be unconnected with any
industry directly affected by such dispute.
(j)
Industry -
Industry means any
business, trade, undertaking, manufacture
or any service,
employment, handicraft or industrial occupation or
vocation of workmen.
In a Case In Banglore Water.Supply v. A Rajappa
1 a bench of the Supreme Court consisting of seven judges exclusively
considered the scope of industry and laid down the following test which has
practically reiterated as under:
"Where there is (i) systematic activity, (ii)
organised by co-operation between employer and employee, (iii) for the
production and/or distribution of goods and services calculated to satisfy
human wants and wishes, prima facie, these is an "Industry" in that
enterprise." This is known as Triple Test.
The Following points were also
emphasised in the said case:
(1) Industry does not include spiritual or
religious services or services geared to celestial bliss, e.g. making on a
large scale, "parsed" or food.
(2) Absence of profit motive or
gainful objective is irrelevant but, be the
venture in the public, joint,
private or other sector.
(3) The true focus is functional and
the decisive test is the nature of the
activity with special emphasis on the
employer-employee relations.
(4) If
the organisation is a trade or business, it does not cease to be one because of
philanthropy animating the undertaking.Therefore, the consequences of the
decision in this case are that professions, clubs, educational institutions,
co-operatives research insthtions, charitable
projects and other kind of adventures, if they fulfil the triple test stated
above cannot be exempted from the scope of industry.'
(k) Industrial Disputes
- Industrial Dispute is : (1) a
dispute or difference between (a) employers and employers, or (b) employers and
workmen,
(c) workmen and workmen; . .
(2)
the dispute or difference should be connected with (a) employment or .
non-employment, or (b) terms of employment, or (c) conditions of labour
of any person; .
(3) the dispute may be in relation to any
workman or workmen or any other
person in whom they are
interested as a body.
(ka) Industrial
Establishment or Undertaking -
It means an establishment or undertaking in which any industry is carried on;
provided that, where several activities are carried on in an establishement or
undertaking and only one or some of such activities is or are an industry or
industries:
(kk) Insurance Company
- According to this sub-section,
an insurance is one, which company is defined in Sec. 2 of the Insurance Act,
1938, having branches or other establishments in more than one State.
(kka)
Khadi -
"Khadi" has the meaning assigned to it in clause ( d) of Sec. 2 of the
Khadi and Village Industries Commission Act, 1956.
(kkb)
labour Court.- It
means a Labour.Court constituted under Sec. 7 of
the Industrial Disputes
Act, 1947.
(kkk) lay Off - Means putting aside workmen
temporarily. The duration of lay off should not be for a period longer than the
period of emergency. The employer-employee relationship does not come to an end
during the
period of lay-off but is merely
suspended during the period of emergency.
Any such
refusal or failure to employ a workman may be on account of:
(i) shortage of coal,
power or raw materials or
(ii) the accumulation of stock; or
(iii) the breakdown of machinery; or
(iv) natural calamity; or
(v) any other connected reasons.
Prohibition
of lay-off (as substituted by Amendment Act; 1984)
According
to Sec. 25M of Industrial Disputes Act, 1947, no workman whose name is borne on
the muster rolls of an industrial establishment shall be laid off by his
employer except with the prior permission of the appropriate Government or such
authority, as may be specified by that Government.
Recovery of money due from an employer
(Sec. 33C)
Where
any money is due to a workman from an employer under a settlement or an award
or for layoff or retrenchment, the workman himself or any other person
authorised by him in writing in this behalf, or in the case of the death of the
workman, his assignee or heirs may, without prejudice to any other mode of
recovery, make an application, within one year from the date on which the money
became due to the workman, to appropriate Government for the recovery of money
due to him, and if the appropriate Government is satisfied that any money is
due to him, it shall issue a certificate for that amount to the Collector who
shall proceed to recover the same in the same manner as an arrear of land revenue.
Penalty for layoff without permission
(Sec. 25Q)
Any
member who contravenes the provisions of Sec. 25M shall be punishable with
imprisonment for a term which may extend to one month, or with fine which may
extend to Rs. 1000, or with both.
(I) Lock
out - Means the closing of a place of employment, or the
suspension
of work, or the refusal by an employer to continue to employ any number of
persons employed by him.
While
strike is a weapon in the hands of the labour to force the management to accept
their demands, lockout is a weapon in the hands of the management to coerce the
labour to come down in their demand srelating to the conditions of employment.
Lockouts
has been described by the Supreme Court as the antithesis of strike.1
Difference
between lockout and lay-off:
(1)
Lockout is an act on the part of the employer to pressurise the labour; while
layoff is for trade reasons, beyond the control of the employer; i.e., it is
not intentional act.
(2)
Lockout is exercised due to an industrial dispute and continues during the
period of dispute; layoff is not necessiorily concerned with dispute with
workmen.
Difference between
lock-out and retrenchment:
(1) Temporary
or permanent: Lockout is temporary measure, while
retrenchment is permanent.
(2) Relationship: In lockout the relationship of employer and employee
is
only suspended; it does
not come to an end. In retrenchment such a
relationship is severed at
the instance of the employer.
(3) Motive: Lockout is with a motive to coerce the workmen; the
intention
of retrenchment is to
dispense with surplus labour.
(4) Trade dispute: Lockout is due to an industrial dispute, whereas in
case of retrenchment, there is
no such dispute
Difference between lock-out
and closure
(1)
Temporary/Permanent: Lockout is temporary measure, whereas closure is
permanent. .
(2) Weapon of coercion: Lockout is a
weapon of coercion in the hands of
employer; while closure is
generally made for trade reasons.
(3) Trade Dispute: Lockout is declared
during an industrial dispute, while
in case of closure, there need not
be any dispute.
(Ia) Major Port
"Any port which the Central
Government may by notification in official Gazette declare or may by any law for
the time being in force, have declared to be a major port".
(I
b) Mine: Means a mine as defined in
clause (j) of sub-section (1) of Sec. 2 of the Mines Act, 1952, Which reads as
under:
"Mine
means any excavation where any operation for the purpose of searching for or
obtaining minerals has been, or is being carried on, and includes, (unless
exempted by the Central Government by notification in the official Gazette) any
premises or part thereof, on which any process ancillary to the getting,
dressing or preparation for sale of mineral or of coke is being carried on
:"
(II) National Tribunal: Means a National Tribunal constituted under Sec.
78 of
the Act.
(III) Office Bearer: In relation to a
Trade union, it includes any member of the
executive thereof, but does not
include on auditor. (m) Prescribed: Means prescribed by rules made under this
act. (n) Public utility services: The following are public utility services as
laid down by the Act :
(i) any railway service;
(ii) any transport service
for the carriage of passengers or goods by
air;
(iii) any service in or in
connection with the working of any major port
or dock;
(iv) any section of an industrial
establishment, on the working of which
the safety of the
establishment or the workmen employed therein
.
depends;
(v) any postal, telegraph or telephone
service;
(vi) any industry which supplies
power, light or water to the public; (vii) any system of public conservancy or
sanitation.
(viii) any
industry specified in the First Schedule which the appropriate
Government may, if satisfied that public emergency or
public interest so requires, by notification in the Official Gazette declare to
be a public utility service for the purpose of this Act, for such period as may
be specified in the notification.
(0) Railway company - Means a Railway Company as defined
in Sec.8 of the Indian Railway Act, 1890. Sec 3(5) of the Indian Railways Act
states, "Railway Company" includes any person whether incorporated or
not who are owners or lessees of a railway or parties to any agreement for
working a railway."Sec. 3(4) of the Indian Railways Act defines the term
"Railway" as. "Railway means a railway, or any portion of a
railway, for the public carriage of passengers, animals or goods. and includes:
(a) all
lines of rails, or branches worked over the purpose of or in connection with a
railway.
(b) all stations, Offices,
Workhouses, Wherever, workshops, Fixed plant
and machinery and other works
constructed in connection with a railway,
and
(c) all ferries, ships, boats and
rafts which are used in inland waters for the
purpose
of traffic of railway and belong to or are hired or worked by the authority administering the
railways." .
(00) Retrenchment
- Means the discharge
of surplus labour or staff by the employer
for any reason What-so-ever.'
The term "retrenchment"
defines under the section 2(00) may be analysed as:
(1) Retrenchment means the
termination by the employer of the services
of a workman.
(2) The termination may be for any
reason what so ever.
(3) But the termination should not
be as a measure. of punishment by way
of disciplinary action.
Conditions of retrenchment:
According
to Sec. 25F of the Act no workman employed in any industry who has been in
continuous service for not less than one year under an employer shall be
retrenched
by the employer until: .
(a)
the workman has been given one month's notice in writing indicating the reasons
for retrenchment, or the workman has been paid in lieu of such notice, wages
for the period of notice;
(b)
the workman has been paid, at the time of retrenchment, compensation which
shall be equivalent to 15 days average pay for every completed
year of continuous service or any part
thereof, in excess of 6 months, and
(c) notice
in the prescribed manner is served on the appropriate Government or such
authority as may be specified by the appropriate Government by notification in
the Official Gazette.
Re-employment
of retrenched workmen
According
to Sec. 25H of the Act, where any workmen are retrenched and the employer
proposes to employ any persons, be shall, in such manner as may be prescribed,
give an opportunity to retrenched workmen who are citizens of India offer
themselves for the re-employment, and the retrenched workmen who offer
themselves for re-employment, shall have preference over others. But this
section cannot be applied retrospectively [Case: R,S
Ramdayal v. Labour Appellate Tribunal (Sec. 567) -1964].
The following cases are not retrenchment
(a) Voluntary retirement of a workman,
or
(b)
retirement of a workman on reaching the age of superannuation if the
contract
of employment between the employer and the workman concerned contains a
stipulation in that behalf; or
(bb)
Termination of the service of a workman as a result of the non-renewal of the
cortract of employment between the employer and the workman concerned on its
expiry or of such contract being terminated.
Difference between retrenchment and
closure
(1) Retrenchment affects only some
of the workman, whereas closure
affects all workman.
(2) In retrenchment the trade or
business remains uninterrupted as it
continues; while in
closure the business itself is discontinued.
(q)
Strike - Strike means (1) cessation of work by a body of persons employed
in any industry acting in combination, or (2) a concerted refusal of any number
of persons who are or have been employed in any industry to continue to work or
to accept employment; or (3) to refusal under a common understanding of any
number of persons who are or have been employed in industry to continue to work
or to accept employment.
Features of strike
(1) It is the stoppage of work by a
body of workmen acting in concert with
a view to
bring pressure upon the employer to concede to their demands.
(2) The workmen must be employed in any
industry.
(3) More cessation of work does not
come within the preview of strike,
unless it can be shown that such cessation
of work was a concerted action for the
enforcement of an industrial demand1.
Kinds of strike
These are three kinds of strikes, namely:
(1) General strike, (2) Stay-in-strike,
and (3) Go
slow strike.
(1)
General strike: A general strike is one, where the
workmen join together
for common cause and stay away
from work, depriving the employer of
their labour needed to run the
factory.
(2)
Stay-in-strike : A
stay-in-strike is also known as "total-dawn-strike" or
'pen-dawn-strike". It is the form
of strike where the workmen report to
their duties, occupy the premises, but do not
work. The employer is
thus prevented from employing other
labour to carryon his business.
(3)
Go-slow strike: In a 'Go Slow' strike, the .workmen do
not stay away from work, they do come to their work and work also, but with a
slow speed in order to lower down production, and thereby cause loss to the
employer.
In addition
to these three forms of strike a few more may be cited, although some of them
are not strike within the meaning of Sub-Section 2(q). Such forms are:
(i) Sympathetic strike: A sympathetic strike is resorted to in
sympathy of other striking workmen. Its aim is to encourage or to extend moral
support to or indirectly to aid the striking workmen. The sympathisers
resorting to such strike have no demand of grievance of their own.
(ii) Hunger strike: In hunger strike, a group of workmen
resort to fasting on or near the place of work or the residence of the employer
with a view to coerce the employer to accept their demands.
(iii) Work to rule : The employers in this case of
"work to rule" strictly adhere to rules while performing their duties
which ordinarily they do not observe. This causes the slowing down the tempo of
work. It is not a strike because there is no stoppage of work at all.
(qq)
Trade Union: Means a
trade union registered under the Trade Union
Act, 1926.
(r)
Tribunal: Tribunal
means an Industrial Tribunal constituted under Sec.
7 -A of the Act. It also includes an
Industrial Tribunal constituted before 10th March, 1957 under this
Act.
(ra)
Unfair labour practice: It
means any of the practices specified in the
Fifth Schedule.
.
(rb) Village Industries: It
has the meaning assigned to it in clause (h) of
Sec.2 of the Khadi and
Village Industries Commission Act, 1956.
(rr) Wages: It means all remuneration capable of
being expressed in terms of money, which would, if the terms of payment,
expressed or implied were fulfilled, be payable to a workman in respect of his
employment or of work done in such employment. Wages also includes(i) dearness
allowance as the workmen is for the time being entitled to; (ii) the value of
any house accommodation, or of the supply of light, water, medical benefits or
any concessional, supply of food grains or other articles; (iii) any travelling
concession; (iv) any commission payable on sales promotion or business, or
both.
However,
the following are not wages:- (a) any bonus; (b) any contribution paid or
payable by the employer to any pension fund or provident fund., (c) any
gratuity payable on the termination of service of workman.
(s) Workman: 'Workman" means any person
(including an apprentice) employed in any industry to do any manual, unskilled,
skilled, technical, operational, clerical or supervisory work for hire or
reward, whether the terms of employment be express or implied, .and for the
purpose of any proceeding under this Act. .
"Workman"
does not include any such person - (i) who is subject to the Air Force Act,
1950, or the Army Act, 1950, or the Navy Act, 1957, or (ii) who is employed in
the Police Service or as an officer or other employee of a prison, or (iii) who
is employed mainly in a managerial or administrative capacity, or (iv) who,
being employed in a supervisory
capacity,
draws wages exceeding Rs. 1600/- per mensem, or exercises functions mainly of
management nature.
Difference
between workman and independent contractor:
(1)
For any person to be a workman, it is necessary that he should be in the
employment of an employer. Merely a contract to do some work is not enough to
be called as worker.
(2)
Relationship of master and servant must be implied in the term of
"employed" as a workman. In the absence of such a relationship one cannot be admitted or established as a
workman.
Authorities
under the ACT
Power
and Duties
The
adjudication of industrial disputes has been kept out of the jurisdiction of
Municipal Courts at the first instance so that effort may be made for
settlement of such disputes through some other agencies. The various modes of
settlement of industrial disputes provided by the Act. may be classified under
three heads: (1) Conciliation (2) Adjudication and (3) Arbitration
Authorities make use of conciliation
The authorities that make use of
conciliation on the sole method of settlement of disputes are:
(1) Works Committee
. (2)
Conciliation Officer
(3) Board of Conciliation
The adjudicating authorities that
decide any dispute under the Act. are:
(1) Court of Inquiry
(2) The Labour Court
(3) Industrial Tribunal;
(4) National Tribunal, and
Sec. 10-A of the Act. makes
provision for voluntary reference of disputes to arbitration. Apart from the
above, provision has also been made for constitution of Court of Inquiry, whose
main function is inquire into any matter appearing to be connected with or
relevant to an industrial dispute
1.
Work committee (Sec.3)
The
works committee is considered to be powerful social institution only to secure
cooperation between workers and employers, but to make the will of the
employees effective on the management. According to sec.3 of the Industrial
Disputes Act, 194"1, in the case of an industrial establishment in which
100 or more workmen are employed or have been employed oh any day in the
preceding 12 months, the appropriate Government may, by general or special order,
require the employer to constitute a Works committee consisting of
representatives of employers and workmen engaged in the establishment. The
number of representatives of workmen on Works Committee shall be not being less
than that of the representatives of the employers.
The representatives of the workmen
shall be chosen from among the workmen in consultation with their trade union,
if any registered under the Indian Trade Union Act.1926. .
The
duties of the Works Committee are to promote measures for securing and
preserving amity and good relations between the employers and workmen and to
comment upon matters of their interest or concern and to endeavour to compose
any material difference of opinion in respect of matters of common intents or
concern of employers and workmen.
2.
Conciliation Officers (Sec.4)
The
appropriate Government may by notification in the official gazette, interest
appoint conciliation officers for any specified area or for one or more
specified industries, either permanently or for a limited period of time.
Conciliation officers are charged with the duty of holding conciliatory
proceedings for the purpose of bringing about a fair and amicable settlement of
any industrial dispute. The jurisdiction, powers and other matters in respect
of the Conciliation Officer ~hall be published in the Gazette
Powers of Conciliation Officer: According to Sec.11 of the Act,
conciliation officer may, for the purpose of inquiry into any existing or
apprehended industrial dispute, after giving reasonable notice, enter the
premises occupied by any establishment which the dispute relates. He may call
for and inspect any document which he has ground for considering to be relevant
to the industrial dispute or be necessary for the purpose of verifying the
implementation of any award or carrying out any duty imposed on him under the
Act. and for the aforesaid purposes. He will have the same powers as one vested
in a Civil Court
Under
Sec 11(6), Conciliation Officers are members of Board or Court and the
Presiding Officer of Labour Court Tribunal or National Tribunal shall be deemed
to be public servants within the meaning of Sec.21 of IPC.
Duties of Conciliation Officers
(sec.12):
For
the purpose of bringing about fair and amicable settlement of an industrial dispute,
the Conciliation Officer is required to discharge the following duties- .
(1)
where any industrial dispute exists or is apprehended, the Conciliation
Officer, shall hold conciliation proceedings. He will interview both the
workmen concerned with the dispute and endeavour to bring about a settlement.
(2)
The conciliation Officer shall, for the purpose of bringing about a settlement
of the dispute, investigate the dispute and all matters affecting the merits
and the right settlement thereof and may do all such things as he thinks fit
for the purpose of inducing the parties to come to a fair
and amicable settlement
of the dispute. .
(3) If
a settlement of the dispute or of any of the matters in dispute is arrived at
in the course of the conciliation proceedings, the Conciliation Officer shall
send a report thereof to the settlement singed by the parties
to dispute. .
(4)
If no such settlement is arrived at, the Conciliation Officer shall, as soon as
practicable after the close of the investigation, send to the appropriate
Government a full report setting forth the steps taken by him for ascertaining
the facts and circumstances relating to the dispute and for bringing about a
settlement thereof, together with a full statement
of
such facts and circumstances, and the reasons on account of which, in his
opinion, a settlement could not be arrived at.
(5)
The report must be submitted within 14 days of the commencement of the
conciliation proceedings or within such shorter period as may be fixed by the
appropriate Government: provided that, subject to the approval of the
Conciliation Officer, the time for the submission of the report may be extended
by such period as may be agreed upon in writing by all the parties to the
dispute.
(6).
If, on a consideration of the report in respect of failure of settlement, the
appropriate Government is satisfied that there is a case for reference to
Board, Labour Court, Tribunal or National Tribunal, it may make such reference.
Where the Government does not make such a reference, it shall record and
communicate to the parties concerned it's reasons thereof
3 Board of Conciliation (Sec.5)
The
appropriate Govt. may as occasion arises by notification in the in the Official
Gazette constitute a Board of
Conciliation for promoting the
settlement of an industrial dispute. A Board shall consist of a Chairman and
two or four other members, as the appropriate Government thinks fit. The
Chairman shall be an independent person and shall be appointed on the
recommendation of the party they represent. The quorum for a meeting is two
where the total number is three, and three where the number is five. A Board,
having a quorum, may act not withstanding the absence of the chairman or any of
its members, or any vacancy in it's number. But; if the Government informs the
board that the services of the Chairman or any other member have ceased to be
available, the board must not act until a new Chairman or member has been
appointed.
Powers of Conciliation Officer
Conciliation
Officer has all powers of a Civil
Court
Conciliation
Officer has to endeavour to bring about a settlement of a dispute referred to
him and to do anything to induce the parties to come to a fair and amicable
settlement. Where a settlement is reached a similar report and a memorandum of
settlement have to be submitted to the appropriate Government. But in case of
failure, apart from furnishing all the details as required in the case of a
report, by a Conciliation Officer, he is also required to submit his
recommendations for tha determination of the dispute. The time limit prescribed
for submission of such reports is 2 months of the date on which the dispute was
referred to him or within such shorter period as may be fixed by the
appropriate Government or all the parties to the dispute may, however, further
extend the period by agreement in writing. Where a dispute, in which the Board
has failed to bring about a settlement, relates to a public utility service and
the Government does not refer it to a Labour
Court
Courts
of Inquiry (Sec.G)
The
appropriate Government may, as occasion arises, by notification in the official
Gazette, constitute a Court of Inquiry for inquiring into any matter appearing
to be
connected with or relevant to an industrial dispute. Such a Court may consist
of one or more independent persons, as the Government may appoint. Where it
consists of more than one member, one of them shall be appointed as Chairman.
The Court having the prescribed quorum may act even if the Chairman or a member
is absent; but not if the services of the Chairman have ceased to be available,
and on other Chairman has beer' appointed. The Court shall inquire into the
matters referred to it and report thereon to the appropriate Government within
6 months from the date of commencement of the inquiry.
Members
of Court of Inquiry shall deemed to be public servants within the meaning of
Sec. 21 of IPC. The Court of Inquiry, if it so thinks fit, appoint one or more persons
having special knowledge of the matter under consideration as assessor or
assessors to advise it In
the proceeding before it.
On
a perusal of the relevant Sections 22, 23 and 33 of the Act. relating to the
Court during the pendency of a proceeding before a Court of Inquiry, the following
right remain unaffected, such as:
(i) The right of a workman to go on strike
(ii) The right of an employer to
lookout his business. and
(iii) The right of the employer to
dismiss or otherwise to punish the workman in certain cases under Sec.33
Duties
of Courts of Inquiry
(Sec. 14)
The Court of Inquiry of shall
inquire into the matters referred to it and the
report
of Inquiry thereon be presented before the appropriate Government; ordinarily
within a period of 6 months from the commencement of inquiry.
The
report of the Court of Inquiry shall be in writing and be signed by all the
members of the Court, provided that a member may record a minutes of dissent
also. Labour Court
The
appropriate Government may, by notification in the Official Gazette, constitute
one or more Labour Courts for the adjudication of industrial disputes relating
to any of the following matters or for performing such other function as may be
assigned to them under the Act. The functions of the Labour Court
. Act.
are:
(i) Adjudication of industrial
disputes relating to any matter specified in the
Second Schedule
(ii) Performing of such other
functions as may be assigned to them under this Act. 1 he following matters are
specified in the Second Schedule, namely
(i) The propriety or legality of an
order passed by an employer under Standing Orders; .
(ii) The application and
interpretation of Standing Orders;
(iii) discharge or dismissal of
workman including re-instatement of, or grant of relief to; workmen wrongfully
dismissed;
(iv) withdrawal of any customary
concession or privilege;
(v) illegality or otherwise of a
strike or lockout; and
(vi) all matters other then those
specified in the Third Schedule.
.
According to sec.? (2) a Labour
Court
Powers of the Labour Court
Powers of the Labour Court
dismissal of workman are as under.
(1) Subject to any rule that may
be made in this behalf, the labour Court
may follow such procedure that
it may think fit.
(2)
The Presiding Officer of the Court may, for the purpose of inquiry into any
existing or apprehended dispute, enter into the premises occupied by any establishment
to which the dispute relates.
(3) The Labour Court
Court.
(4) If it thinks fit, appoint one
or more persons, having special knowledge.
of the matter under
consideration, as an assessor to advise it in the
proceedings before it.
Duties
of Labour Court
Where
an industrial dispute has been referred to Labour-Court, for adjudication, it
shall hold its adjudication expeditiously and shall, submit its award to the
appropriate Government. The award of Labour
Court
Every
award of Labour Court
. (a) if the appropriate Government is of
opinion, in any case where the
award has
been given by a Labour Court or Tribunal in relation to an industrial dispute
to which it is a party that it will be in expedient to give effect to the whole
or any part of the award on public grounds effecting: .
(i) national economy,
(ii) social justice. .
(b) if the Central Government, in any case
where the award has been given by a National Tribunal, on similar grounds in of
the opinion that it would be in expedient to give effect to the whole .or part
of the award.
For
the purpose of stopping the enforcement of any award, a notification in the
Official Gazette is necessary.
Industrial
Tribunals (Sec. 7 A)
.
Industrial Tribunals were created for it's first time by the Industrial Dispute
Act.1947. Commenting upon the starts of these tribunal, the Supreme Court has
observed that tribunals under the Act. are invested with many trappings of a
Court; but do not have the same status as courts'. The Tribunal is the judicial
body or at any rate, a quasi-judicial body2.
The
appropriate Government may by notification in the Official Gazette, constitute
one or more industrial tribunals for the adjudication of industrial dispute s
relating to any matters specified above as in the case of Labour Court, or the
following
matters, namely
(1) Wages including the period and
mode of 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 and gratuity;
(6) Shift working otherwise than in
accordance with standing orders; (7) Classification by grades;
(8) Rules of discipline;
(9) Rationalization;
(10) Retrenchment of workmen and
closure of establishment; and (11) Any other matter that may be prescribed.
A
Tribunal shall consist of one person only to be appointed by the appropriate
Government. A person to be appointed as a Presiding Officer of a Tribunal must
.be, or must have been, a judge of a high Court; or if he has for a period of
not less than three years, be a District Judge or on Additional District-Judge.
Only experienced persons of high integrity can be appointed as Providing
Officer of the Tribunal. It is provided by Sec.7-A(4) that the Appropriate
Government, if thinks fit, may appoint two persons as assessors to advise the
Tribunal in the proceedings before it.
Industrial
Tribunals shall have the same power vested in a Civil Court
National Tribunals (Sec
78) .
. .
The Central Government may, by
notification in the Official Gazette, constitute one or more National
Industrial Tribunals for the adjudication of industrial disputes which, in the
opinion of the Central Government involve questions 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, such disputes.
A
National Tribunal shall consist of one person only to be appointed by the
Central Government. In order to be qualified as a Presiding Officer of a
National Tribunal, a person must be or must have been a Judge of a High Court,
or must have held the office of the Chairman or any other member of the Labour
Appellate Tribunal for at least 2 years. The Central Government may appoint two
assessors to advise the National Tribunal, in proceeding before it. .
Disqualifications for Presiding
Officiers of Labour Courts, Tribunals And National Tribunals (Sec.7 - C).
No
person shall be appointed to, or continue in the office of the Presiding
Officer 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.
Filling of Vacancies (Sec. 8)
If a
vacancy occurs in the office of the Presiding Officer of a Labour
Court,
Tribunal or National Tribunal, the appropriate Government shall appoint another
person in accordance with the provisions of the Act. A vacancy
may
arise due to transfer resignation or acquisition of any disqualification as
provided in Sec. 7 -C of the Act.
Finality
of orders constituting boards (Sec. 9)
The
main object of enacting Sec. 9 of the Industrial Disputes Act is to make
immune, any order of the appointment made under Sections 5 to 7 of the Act,
from being called in question. Therefore, no question can be raised whether an
appointment was legally and properly made or not. Sec. 9 (1) of the Act
provides that no order of the appropriate Government or of the Central
Government appointing any person as the Chairman or any other member of the
Board or Court, or as the Presiding officer of a Labour Court, Tribunal or
National Tribunal shall be called in question in any manner on the ground of
merely of the existence of any vacancy in, or defect in the constitution of
such Board or Court.
Reference
to grievance settlement authorities (Sec. 9-C)
A new
Chapter II - B has been instead by Industrial Disputes (Amendment) Act, 1982
whereby a new Sec. 9 - C has- been added But this Chapter has not been enforced
till now.
According to
Sec. 9 - C:
(1)
The employer in relation to every industrial establishment in which 50 or more workmen
are employed or have been employed on any day in the preceding 12 months shall
provide for a grievance settlement authority for settlement of industrial
disputes with an individual workman employed in the establishment in accordance
with the rules made' in this behalf under the Act.
.(2)
Where an individual dispute connected with an individual workman arises in an
establishment referred to in sub. sec. (1) a workman or any trade union cf
workmen of which such workman is member, may refer in such manner as may be prescribed
such dispute to Grievance Settlement Authority provided for, by the employer,
for settlement.
(3)
The Grievance Settlement Authority shall follow such procedure and complete its
proceedings within such period as may be prescribed.
(4)
'No reference shall be made under Chapter III with respect to any dispute referred
to in this section unless such dispute has been referred to the Grievance
Settlement Authorities concerned and the decision of the Grievance Settlement
Authority is not acceptable to any of the parities to the dispute.
Powers of National Tribunals
(Sec.11)
1. Subject
to any rules that may be made in this behalf, National Tribunal shall
follow
such procedure as the arbitrator or other authority concerned may think fit.
2.
The presiding officer of National Tribunal may for the purpose of inquiry into
any existing or apprehended industrial dispute, after giving reasonable notice,
enter the premises occupied by any establishment to which the dispute relates.
3.
Every national Tribunal shall have the same powers as are vested in only
experienced persons of high integrity can be appointed as presiding offer of
the TribunaL It is. provided by Sec. 7 - A (4) that the Appropriate Government
of it thinks fit may appoint two persons as assessors to advise the Tribunal in
the proceedings before It a Civil Court under CPC, 1908 when trying a suit, in
respect of the fo!!owing matters, viz.,-(a) enforcing the attendance of any
person and examining him on oath; (b) compelling the production of
document and material objects; (c) Issued commissions for the examination of
witness; (d) in respect of such other matters as may be prescribe: and every
by a Board, Court, Labour Court, Tribunal or National
Tribunal shall be deemed to be a judicial proceeding within the meaning of Sec.
193 arid 228 of the Indian Penal Code.
(4)
National Tribunal may, if it so thinks fit, appoint one or more persons having
special knowledge of the matter under consideration as assessor or assessors to
advise it in the proceeding before it.
(5)
All the Presiding Officers of a National Tribunal shall be deemed to be public
servants within the meaning of Sec.
21 of the Indian Penal Code.
(6)
Subject to any rules made under this Act, the costs of, and incidental to, any
proceeding before a National Tribunal shall be in the discretion of that
National Tribunal, and shall have full power to determine by and to whom and to
what extent and subject to what conditions, of any, such costs are. top be
paid, and to give all necessary direction for the purpose aforesaid and such
costs may, on application made to the .appropriate Government by the person
entitled, be recovered by the Government in the same manner as an arrear of
land revenue.
(7) Every National Tribunal shall be
deemed to be a Court for the purpose of Sec. 480, 482 and 484 of the Criminal
Procedure Code, 1948.
Note: The procedure and power of different
authorities laid down under Sec. 11 of the Act, are equally applicable in the
case of Conciliation Officers / Board, Court of Inquiry, Labour Court
Persons on whom settlement and awards
are binding (Sec. 18)
For this purpose, settlements are
classified into two catagories, namely
(i) Settlement arrived at otherwise
than in the course of conciliation
proceedings, i.e. without
the aid of statutory agency; and
(ii) settlement arrived at in the
course of conciliation proceedings; Le. with
the aid of statutory
agency.
In
the first case, a settlement under Section 18(1) arrived at by agreement
between the employer and workmen otherwise than in the course of conciliation
proceedings, shall be binding on the parties to the agreement. But any such
settlement; in order to be binding must be signed by the parties there to in
the manner prescribed by rule and a copy of it must also be sent the
appropriate Government. .
In
the second case Sec. 18 (2 and 3) provide that an arbitration award which has
become enforceable shall be binding on the parties to the agreement who
referred the disJ3ute to the arbitration. This section 18(3) provides that
(i) a settlement arrived at in the
course of conciliation proceeding under
this Act.
(ii) an arbitration award in a case
where a notification has been issued
under sub section (3-A) of
Sec. 10-A; or
(iii)
an award of a Labour Court
(a) all parties to the in industrial
dispute.
(b) all other parties summoned to
appear in the proceedings as parties to the. dispute,
(c)
where a party referred to is an employer, his heirs, successors or assigns in
respect of the establishment in which the dispute relates.
(d) where a party referred to in clause (a)
or (b) is composed of workmen, all persons who were employed in the
establishment or part of the establishment, as the case may be, to which the
dispute relates on the date of the dispute and all persons who subsequently
become employed in that establishment or part there of.
Certain
matters to be kept confidential (Sec. 21)
This
section of the Act. provides that certain matters are to be kept confidential.
Therefore, such things shall not be included in any report or award made under
the Act. Any information obtained by a Conciliation Officer, Board, Court,
Labour Court, Tribunal, National Tribunal or an Arbitrator in the course of any
investigation on inquiry, which relates to a Trade Union on any individual
business (whether carried on by a person, firm or company) which is not
available otherwise than through the evidence given before any such authority,
shall not be included in any report or award; if the parties concerned or in
question has made a request in writing to treat such information as
confidential.
REFERENCE OF DISPUTES TO BOARDS,
COURTS OR TRIBUNALS
Section
10(1) of the Industrial Disputes Act.,1947 provides that where the appropriate
Government is of the opinion that any industrial dispute exists or apprehended,
it may, at any time:
(a) refer the dispute to a Board of
conciliation for promoting a settlement
there of; or
(b) refer any matter appearing to be
Connected with or relevant to the dispute to a Court for Inquiry; or
(c)
refer the dispute or any matter appearing to be connected with, or relevant to the dispute to a Labour Court
for adjudication provided the dispute relates to any matter specified in the
Second Schedule; or
(d) refer the dispute or any matter appearing
to be connected with or relevant to the dispute to a Tribunal for adjudication,
where it relates to any matter specified in the Second or Third Schedule.,
provided that:
(i)
where the dispute relates to any matter specified in the Third
Schedule
and is not likely to effect more than 100 workmen; the appropriate Government
may make the reference to a Labour
Court
(ii)
where the dispute in relation to which the Central Government is the appropriate
Government, it shall be competent for the Government to refer the dispute to a Labour Court
(iii)
where the dispute relates to a public utility service and a notice of strike or
lockout under Sec. 22 has been the appropriate Government shall be competent to
refer the dispute to a Labour
Court
Under Sec.1 0(1-A), the Central
Government may refer any dispute to a National tribunal for adjudication, if it
is the opinion that:
(i) any dispute exists or is appended; and
(ii) the dispute involves any question
of national importance; or
(iii) the dispute is of such nature
that industrial establishment situated in
more than one State are likely to be
interested in, or affected by such dispute; and
(iv) the dispute should be adjudicated
by National Tribunal (the reference to National Tribunal shall be made by the
Central Government only).
Sec.10(3)
of the Act. provides that where an industrial dispute has been referred to
Board, Labour Court
Sec.10(6)
of the Act. provides that where any reference has been made under sub-section
(1-A) to a National Tribunal, then notwithstanding anything contained in this
Act., no Labour Court or Tribunal shall have jurisdiction to adjudicate dicta
upon any matter which is under adjudication before the National Tribunal.
Sections
10 and 1 O-A are the alternative remedies to settle industrial dispute. Once
the parties have chosen the remedy under Sec.1 O-A, the Government cannot refer
the same dispute for adjudication under Sec. 10. If any such reference is made,
it is invalid.1
Voluntary
Reference of Disputes to Arbitration (Sec. 10-A)
This
section provides that where any industrial dispute exist or is apprehended, the
employer and the workman agree to refer the dispute to arbitration, they may
refer the dispute to arbitration: Such referen<?e by agreement may be made
at any time before the dispute has been referred under Sec.1 0 a Labour Court,
Tribunal or National Tribunal. The agreement to make a reference must be in
writing.
Sec.
10-A(1-A) provided that where an arbitration agreement provides for reference
of the dispute to an even number of, arbitrators the agreement shall provide for
appointment of another person as umpire who shail enter upon the reference if
the arbitrators are equally divided in their opinion.
Sec. 1
0-A(2) provides that an arbitration agreement referred to in sub-section (1)
shall be in such form and shall be signed by the parties there to in such a
number as may be prescribed.
Under
Sec. 10-A(3) copy of the arbitration agreement shall be forwarded to
appropriate Government and the Conciliation Officer, and the appropriate
Government shall within one month from the date of receipt of such copy
publish. the same in the official Gazette.
Under
Sec. 10-A(4) the
arbitrator or arbitrators shall investigate the dispute and submit to the
appropriate Government the arbitration award signed by the arbitrator or all
arbitrators as the case may be.
Under
Sec.(4-A): where an industrial dispute has been referred to arbitration and a
notification has been issu8d, the appropriate Government may prohibit the
continuance of any strike or lockout in connection with such dispute. The appropriate
Government shall do so by issuing an order.
Sub-sec.(5) provider that nothing in
the Arbitration Act. 1940 shall apply to arbitration under this section.
An arbitrator functioning under Sec.1
O-A of the Act is a statutory Tribunal.
STRIKES AND LOCKOUTS
IN INDUSTRIAL UNITS
Strike is collective stoppage of work by
workmen undertaken in order to bring pressure upon the employer. It is a
spontaneous and concerted withdrawal of workmen from production. A strike in
usually organized by common agreement on the part of the workers with a view to
obtaining or resisting change to their conditions of work.
Lockout is a weapon in the hands of the
employer; which is used to curb the militant spirit of the workers. In
Lock-out, an employer shuts down his place of business as a result of reprisal,
or 2S an instrument of coercion or as a mode of exerting pressure upon the
employees with a view it dictate his own terms to them.
Strikes
and lockouts have now become important factors in the employer employee
relations.
Prohibition
of strikes and lockouts (Sec. 22 and 23)
Sec.22 of the Industrial Disputes Act
provides that:
(1) No
person employed in a public utility service go on strike in breach of contract:
(a) without giving notice of strike to
the employer within six weeks
before striking, or
(b) within 14 days of giving notice,
or
(c)before the expiry of
the date of strike specified in any such
notice as aforesaid, or
(d) during the pendency of
any conciliation proceedings and 7 days
after the conclusion of such proceedings.
(2) No employer on any public utility
service shall lockout any of his workmen
(a) without giving them
notice of lock-out as herein after provided
within six weeks before
locking out; or
(b) within 14 days of
giving such notice; or
(c) before the expiry of
the date of lockout specified in any such
notice as aforesaid; or
(d) during the pendency of
any conciliation proceeding before
Conciliation Officer and
seven days after the conclusion of such
proceedings.
However,
notice of strike or lockout will not be necessary where there is already in
existence a strike or lockout in the public utility service. The employer in
such a case must notify to concerned authority as may be appointed by the
appropriate Government, of the declaration of a strike or lockout. The notice
of strike or lockout shall be given by such number of persons in the prescribed
manner [Sec.22(4&5)]
General provisions of strikes and lockouts:
Sec.23
of the Act provides that, "no workmen who is employed in any industrial
establishment shall go on strike in breach of contract and on employer of any
such workmen shall declare a lockout:
(i) during the pendency of conciliation
proceeding before a Board, and 7
days after its conclusion.
(ii) during the pendency of proceeding
before Labour Court
National Tribunal, and 2
months after its conclusion.
(iii)
during pendency of arbitration proceedings before an arbitrator and two months after completion of such proceedings,
where a notification has been issued under Sub sec.(3-A) of Sec. 10-A; or
(iv) during the period of which a
settlement or award is in operation in respect of the matters covered by such
settlement or award.
Illegal strikes and Lockouts (Sec. 24)
Sec.
24 of the Act provides that a strike or a lockout shall be illegal if it is:
(a) commenced or declared in contravention of Sec. 22 or 23, and
(b) continued in contravention of the
prohibitory order made by appropriate Government after the dispute has been
referred under Sec. 10(3) or sub-section( 4-A) of Sec.1 ()"A of the Act.
Prohibition
of financial aid to illegal strikes and lockouts (Sec. 25)
This section of the Act prohibits
financial aid to illegal. strikes and lockouts.
This
section has the following ingradients: .
(1) spending or applying money:
(2) money spent or applied in direct
furtherance or support of an illegal
strike,
Punishments (Sec. 28)
For
any violation of provisions of Sec. 25, punishment is imposed by Sec. 28 of the
Act. According to the provision, even a person who is not a workmen can be
penalized violating the provisions of Sec. 25. The effect of Sections 25 and 28
is the prosecution to support a conviction for breach of Sec.25 must prove
that:
. (i) the
strike or lock-out in question was illegaL
(ii) the accused had knowledge
that
(a) the strike or
lockout was iIIegal and
(b) the money spent or
applied by him was in direct furtherance or
support of a strike or
lockout.
(iii) that the money was actually
spent or applied by the accused.
However, assistance to strikers in
any other from, for example, supplying
clothes, food, etc. is not prohibited
under Sec. 25 of the Act.
LAY-OFF AND RETRENCHMENT: COMPENSATION
THERE OF
The
Industrial Disputes Act, 1947, as originally enacted made no provision for the
payment of "Lay-Off" or "Retrenchment" compensation.
Therefore, there were no uniform rule that can be said to have observed by the
adjudicating bodies in the case of payment of compensation for
"lay-off" or "retrenchment". In order to overcome the
situation, the President of India promulgated the Industrial Disputes (Amendment)
Ordinance in Oct., 1953 to the effect from 24th Oct. 1953 . The said Ordinance was
repealed and replaced by the Industrial Disputes (Amendment) Act, 1953 took
effect from 23rd Dee ember 1953. According to
this amendment, Section 25-A to Section 25-J were added by this Amendment Act
of 1953.
According to Sec. 25A (application of
Sections 25-C to 25E inclusive) shall
not
apply to industrial establishment to which Chapter V-B applies, or :
(a) to industrial establishment in which less
than 50 workmen, on an average
per working day have been employed in
the preceding calendar month,
and
(b) to industrial establishment which are of
a seasonal character or in which
work is performed only
intermittantly.
Thus,
where the exemption under Sec 25-A applies, the workmen are not entitled to
lay-off compensation and the Tribunal has no right to grant relief on any
fanciful notices of Social Justice.
Sec
25 B of the Act defines continuous service. Sub-sec.2 defines continuous
service for a period of one year or a period of six months Clause (a) of
Sub-Section (2) provides that a workman. shall be deemed to have been in
continuous service for a year, if
1.
he has been in employment for 12 calendar months; and
2. he
actually worked for not less than
(a)
One hundred and ninety days in the case of a workmen employed below ground in a
mine; and
(b) Two hundred and forty
days in any other case.
The following conditions must be
fulfilled by a workman to entitle him for a
continuous service of six months:
(1) The workman has been in
employment for a period of six calendar months;
(2) Such workman has actually worked
for not less than:
(a) Ninety five days in
the case of his being employed below ground
in mine, and
(b) One-hundred and twenty
days in any other case.
Rights of workman laid-Off for
compensation (Sec.25-C)
This
section of the Act entitles a workman to get compensation from the employer for
the period he is laid off. When the employer is unable to provide work to his
workmen for reasons beyond his control, he owns duty to pay lay-off
compensation to such workmen. For a workman to be eligible to claim lay-off
compensation, he must fulfil the following conditions:
(1)
his name must be borne on the muster rolls of an industrial establishment and
(2) he
must have completed at least one year's continuous service (an
defined in Sec. 25-B)
The above rule is subject to the
following limitations:
(1) If
a workman is laid off for more than 45 days during any period of 12
months, no compensation
shall be payable in respect of any period
of the
lay-off after the expiry 45 days, provided these is an agreement between the
workman and the employer to this effect.
(2)
Where a workman is laid off for a period of 45 days during 12 months. the
employer has a right to retrench such workman at any time after the expiry of
45 days of lay-off. When an employer decides to retrench a workman he musf
comply with the requirements of Sec.25F of the Act
(as stated below).
.
Workmen not entitled to Compensation
in Certain Cases (Sec. 25-E)
This section of the Act provides that a laid
off workman shall not be entitled to
compensation:
(1)
If he refuses to accept alternative employment provided that such alternative
employment is offered in the same establishment or in any other establishment
belonging to the same employer in the same town or village within a radius of 5
miles from the establishment he belongs.
(2) If
he does not present himself for work at the establishment at the
appointed time during
normal working hours at least once a day.
(3) If the lay-off is due to strike or
slowing down of production on the part of workmen in another part of the same
establishment.
Conditions
precedent to retrenchment of workmen (Sec. 25 F)
This section lays down the
requirements for a valid retrenchment of an
employed who has been in continuous
service for not less than one year.
This section prescribes three
conditions for a valid retrenchment; namely.
(a) The workman should be given one
months notice in writing indicating
the reasons for retrenchment. .
(b) The workman has been paid, at the time
of retrenchment, compensation equivalent to 15 days average pay for every
completed year of continuous service or any part thereof in excess of 6 months.
(c)
Notice in the prescribed manner is served on the appropriate Government or such
authority as may be specified by the appropriate Government by notification in
the Official Gazette.
Compensation to workmen in case of transfer of
undertakings (Sec. 25 FF)
This
section provides that in case of transfer of ownership or management of an
undertaking from one employer to another, every workman:
(a) shall, before such transfer
entitled to notice, and
(b) shall also be entitled to
compensation in accordance with provisions of
Sec. 25-F, as if the workman had
been retrenched.
In order to entitle a workman
compensation under this section, the following
conditions must be
simultaneously complied with:
(1)the service of the workman has
not been interrupted by the transfer,
and
(2) terms and conditions of service
to the workrnan, after such transfer, are
not in any way less
favourable to the workman than those applicable
immediately before the
transfer.
Notice
to be given of intention to close down any undertaking (Sec. 25FFA)
Any
employer who intends to close down an undertaking shall serve, at least 60 days
before the date on which the intended closure is to become effective, in a
prescribed manner on the appropriate Government, stating therein that noting in
this section shall apply to :
(a)
an undertaking in which (i) less than 50 workmen are employed, or (ii) less
than fifty workman were employed, on an average, per working day in the
preceding 12 months;
(b) an
undertaking set-up for the construction of building, bridges, roads,
canals.
dams or for other construction work or project.
Compensation
to workmen in the case of closing down of undertaking (Sec. 25-FFF)
The purpose
of this section is to create a sense of security in a workman that if he sticks
to his work, he will not be thrown away out of his employment in case of
closing down of the undertaking
Procedure
for Retrenchment
The
well recognised principle of retrenchment in industrial law is 'first come last
go' and 'last come first go'. This principle has been incorporated in Sec 25-G
of the Act. The protection provided under this section can be claimed by a
workman on fulfilment of the following conditions:
(1) The workman must be a workman
within the meaning of Sec. 2(8) of the Act. (2) The workman should be an Indian
Citizen.
(3) The
workman should be employed in an establishment which is an
industry within the
meaning of Sec. 2(J) of the Act.
(4) The workman should belong to a
particular category of workmen in the
establishment; and
(5) There should be no agreement
contrary to the principle of 'first come
last go' between the
employer and workman.
Re-employment
of retrenched Workman (Sec. 25H)
According
to this section, when a workman has been retrenched by employer on the ground
of surplus staff. such a workman should first be given an opportunity to join
service whenever an occasion to employ another hand arises. In order to claim
preference in employment under this section, a workman must satisfy the
following conditions:
(1) He should have been retrenched
prior to re-employment.
(2) He should be a citizen of India
(3) He should have been retrenched
from the same category of service.
Special
provisions relating to lay-off, retrenchment and closure in
certain
establishments:
By-an amendment made in the year 1978, a new
Chapter V-B has been added
to the Industrial Disputes Act (Sec.
25-K) .
The provision of this Chapter shall apply
to an industrial establishment, not
being an establishment of a seasonal
character
For the
purpose of this chapter V-B, Sec. 25-L, defines (a) Industrial
establishment means:
(i) a factory as defined in clause
(m) of Sec.2 of the Factories Act. 1948;
(ii) a mine as defined in clause (j) of
sub-section (1) of Sec.2 of the Mines
Act, 1952; or
(iii) a plantation as defined in clause
(f) of Sec.2 of the Plantations Labour
Act, 1951;
Prohibition of Lay-Off (Sec. 25-M)
No
workman (other than a 'bad Ii' workman or a casual workman) whose name is borne
on the muster rolls of an industrial establishment to which this Chapter V-B
applies shall be laid off by employer except with the prior permission of the
appropriate Government or such authority as may be specified by the Government
by notification in official gazette (Sub.Sec.1).
Where
the workman of an industrial establishment being a mine, have been laid off
under sub-section (1) above, for reasons of fire, flood or excess of
inflammable gas or explosion, the employer in relation to such establishment,
shall within a period of 30 days from the date of such lay-off apply in the
presented manner, to the Appropriate Government or the specified authority (Sub
Sec. (3))
Where
an application for permission under Sub. See (1) and (3) has been made to
appropriate Government after making inquiry as it thinks fit and after being
heard to the employer, the workmen concerned and the person interested in such
lay off, grant or refuse to grant, permission. A copy of such order shall be
communicated to the employer and the workmen.
Conditions precedent to retrenchment
of Workmen (Sec. 25-N)
:
No
workman employed in any industrial establishment, who has been in continuous
service for not less than one year under an employer shall be retrenched by the
employer, until the workman has been given three months notice in writing
indicating the reasons for retrenchment or the workman has been paid wages in
lien of notice period, if the period of notice has expired.
Procedure for closing
down an undertaking (Sec. 25-0) :
An
employer who intends to close down an undertaking of an industrial
establishment shall, in the prescribed manner, apply to the appropriate
Government for prior permission 90 days before the intended closure is to
become effective, stating the reasons for the intended closure. A copy of such
application shall also be served on the representative of the workmen in the
prescribed manner (Sub Sec. (1 )).
On
receipt of application, the appropriate Government, makes inquiry as it thinks
fit and after giving reasonable opportunity of being hard to the employer, the
workman and the persons interested in such closure may grant or refuse to grant
permission, and a copy of such order shall be served to the employer and the
workmen.
Special Provisions as to Restarting of
closed down undertaking (Before Commencement of the Industrial Disputes
(Amendment) Act, 1976, (Sec. 25-P)
If the
appropriate Government is of opinion in respect of any understanding of
an industrial
establishment which was closed down before the commencement of Amendment Act,
1976
(a)
that it was closed down otherwise than on account of unavoidable
circumstance beyond the
control of the employers;
(b) that there are possibilities
of restarting the undertaking;
(c)
that it is necessary for the rehabilitation of the workmen employed before its
closure or for the maintenance of supplies and services essential to the life
of the community to restart the undertaking; or both; and (d) that the
restarting of the undertaking will not result in hardship to the employer in
relation to the undertaking.
After
it may after giving an opportunity to such employer and workmen, the
appropriate Government may direct by order published in official Gazette that
the undertaking shall be restarted within such time published in the official
Gazette, (not being less than one month from the date of order) as may be
specified in the order.
Penalty for Lay-Off and Retrenchment
with Previous Permission (Sec. 25-Q)
Any employer who contravenes the provision of
Sec. 25 M or Sec. 25 N, shall
be
punishable with imprisonment for a term which may extend to one month, or with
fine which may extend to Rs. 1000/-, or with both.
Penalty
for Closure (Sec. 2 R)
Any
employer who closes down an undertaking without complying with the provisions
of sub-section (1) of Sec. 25-0 shall be permissible with imprisonment for a
term which may extend to six months, o(with fine which may extend to Rs. 5000/
-, or with both.
Similarly,
any employer who contravenes an order refusing to grant permission to close
down an undertaking under sub-section (2) of Sec. 25-0 or a direction given under Sec. 25-P,
shall be permissible with imprisonment for a term which may extend to Rs.
5000/-, or with both. Where the contravention continuous further, with a
further which may extend to Rs. 2000/- for every day during the contravention
continues after the conviction.
No employer
or workmen or a Trade Union, whether registered under Trade
Any person who commits any unfair
labour practice shall be punishable with imprisonment for a term which may
extend to six months or with fine which may extend to Rs. 1000/- or with both.
UNFAIR
LABOUR PRACTICES
No employer
or workmen or a Trade Union, whether registered under Trade
Any person who commits any unfair
labour practice shall be punishable with imprisonment for a term which may
extend to six months or with fine which may extend to Rs. 1000/- or with both.
Unfair
labour practices on the Part of Employers and Trade Unions of Employers (as per
New Schedule V added with Industrial Disputes (Amendment) Act, 1982).
As defined in Schedule V, unfair
trade practices are:
1. To
interfere with, restrain from, or coerce, workmen in the exercise of their
rights to organise from, join or assist a trade union or to engage in concerted
activities for the purposes of collective bargaining or other mutual aid or
protection, that is to say
10. To recruit workmen during a strike
which is not an illegal strike.
11. Failure to implement award,
settlement or agreement.
12. To indulge in acts of force or violence.
13. To refuse to bargain collectively
in good faith with the recognised trade unions.
Unfair labour Practices on the part of
Workmen and Trade Unions of Workmen (as per New Schedule V added with
Industrial Disputes (Amendment) Act, 1982.
They include the following:
1. To advise or actively support or
instigate any strike deemed to be illegal
under this Act.
2. To coerce workmen in the exercise
of their right to self-organisation or
to join a trade union or
restrain from joining any trade union, such as :
(a) for a trade union or
its members to picketing in such a manner
that non-striking
workmen are physically debarred from entering
the work places;
(b) to indulge in acts of
force or violence or to hold out threats of
intimidation in
connection with a strike against non-striking
workmen or against
managerial staff.
3. For a recognised union to refuse
to bargain in good faith ..vith the
employer.
4. To indulge in coercive activities
against certification of a bargaining
representative.
5. To
stage demonstrations at the residence of the employers or the
managerial staff members.
6. To incite or indulge in wilful
damage to employer's property connected
with the industry, etc.
Victimization
Victimization
means one of two things. One is when the workmen concerned is innocent and yet
he is punished because he has in some way displeased the employer. For example,
by being an active member of the union of workmen who were acting prejudicially
to the interests of the employer1. The second instance is where an employee has
committed an offence but is given a punishment quite out of prosportion to the
gravity of the offence, simply because he has incurred the displeasure of the
employer, or where the punishment is shockingly disproportion to the misconduct.
PENALTIES AND
MISCELLANEOUS PROVISIONS
Penalty for illegal strikes and lockouts (Sec. 26)
This
section prescribes penalty imposed on any workman who continues or otherwise
acts in furtherance of a strike which is illegal under this Act. Any workman
found guilty of participating in an illegal strike shall be punishable with
imprisonment for a term which may extend to one month or with
a maximum fine of 50/-,
or with both.
.In
the case of employer, sub section (2) of
Sec. 26 provides that the employer shall be punishable with imprisonment
extending to one month or with a maximum fine of Rs. 1000/-, or with both, if:
(1) such employer commences, continues
or otherwise; acts in furtherance
of lock-out; and
(2) such lock-out is illegal under the
Act.
Penalty
for instigation, etc.(Sec. 27):
This section makes the following acts
punishable:
(1) Instigation
or incitement to others to take part in an illegal strike or
lockout;
(2) Otherwise acting in furtherance of a
strike or lockout which is illegal
under the Act.
Any
person, other then employer and workmen, who has no personal interest in a
dispute, instigate or inciting of an illegal strike or lockout is more severely
punishable under the Act. There must be something tangible in evidence to show
that the persons are responsible for instigating or inciting the strike.
Penalty for giving Financial Aid to
illegal strike and lockout (Sec. 28)
Any
person who knowingly extends or applies any money in direct furtherance or
support of any illegal strike shall be punishable under this section.
Punishment may extend to six months imprisonment, or Rs. 1000/- as fine, or
with both.
Penalty for breach of settlement of
award (Sec. 29)
In
order to be penalised a person under this section, the following facts must be
proved:
(1) An award or settlement was in
operation at the time of breach;
(2) Such award or settlement must be
valid,
(3)The award or settlement must be
binding on the accused,
(4)The accused must be responsible for
committing breach of such award or settlement.
(5) The appropriate Government must
have made complaint regarding the
breach.
If
these requirements are cumulatively fulfilled the accused shall be punishable
with imprisonment extending to 6 months or with fine or with both. If the
breach is continuing a further fine which may extend to two hundred rupees for
every day during which the breach continues after the conviction for the first
breach.
Penalty for disclosing confidential
Information (Sec. 30)
Any
person who discloses any information in contravention of Sec. 21
(confidential matters) shall be
penalised under Sec. 30 of the Act. Punishment provided is imprisonment
extending to 6 months or fine upto Rs. 1000/-, or with both. For valid exercise
of power under this section, the following conditions must be satisfied:
(1) A complaint must have been made by
or on behalf of (a) the Trade
Penalty
for closure without notice (Sec.3D-A)
Any
employer who closes down any undertaking without complying with provisions of
Sec. 25 FFA shall be punishable with imprisonment for a term which may extend
to six months or with fine, which may extend to Rs. 5000/-, or with both.
Penalty
for other offences (Sec. 31)
This
section provides that at any employer who contravene the provisions of Sec. 33
shall be punishable with imprisonment for a term which may extend to six months
or with fine which may extend to Rs. 1000/-, or with both (sub. Sec.1)
A
Criminal Court has jurisdiction to try any employer for violation of Sec. 33
these two sections 31 and 33 are intended to protect the right of workmen
pending industrial dispute and for that purpose the employer is prohibited from
doing anything to the prejudice of workmen without express permission or
approval of the authorities before whom a reference is pending. .
(Sec.33
ensures against victimization of workmen by the employer).
Offence by companies etc. (sec.32).
This
section provides that where a person committing an offence under this Act. is a
company, or other body corporate or an association of persons (whether
incorporated or not) every director manager, secretary, agent or other officer
or person concerned with management thereof shall, that the offence was
committed without his knowledge or consent, be deemed to be guilty of such offence.
Conditions
of service, etc. to remain unchanged (Sec. 33)
The
purpose of this section is to maintain status quo during the pending of certain
proceeding under this Act. This section applies during the pendency of the
following proceedings:
(a) conciliation proceedings before a
Conciliation Officer or Board.
(b) any proceeding before an
Arbitrator; and
(c) any proceeding before Labour Court
Sec.
33(3)'of the Act deals with the right of protected workman. The employer shall not
take the following action against a "protected workman" in regard to
any matter connected with the pending dispute:
Special provision for adjudication as
to whether conditions of service etc. changed during the pendency of
proceedings (Sec.33-A).
Where an employer contravenes the
provisions of Sec. 33 du ring the pendency of proceedings before a Conciliation
Officer, Board, an Arbitrator, a Labour Court, Tribunal or National Tribunal,
an employee aggrieved by such contravention may make compliant in writing, in
the prescribed manner, to such authority before it the matter is pending,
The
object of Sec. 33 and 33-A is to protect workmen against victimization by the
employer.
Recovery of money due from an employer
(Sec. 33-C)
This
section deals with the proceeding for recovery of money due to a workman from
an employer under a settlement or an award or under the provisions of Chapter VA
The
application for recovery of money due may be made to the appropriate
Government. If the Government is satisfied that the claim in genuine it shall
issue a certificate for that amount to the District Collector, who shall
recover the amount, as shown in the recovery certificate as an of land revenue.
Every
application for recovery shall be made within one year from the date on which
the money becomes due to the workman from the employer. However, the
appropriate Government may consider the application which was presented even
after one year if it is satisfied that the applicant had sufficient reason for
not making the application within the period of one year.
Cognizance
of offences (Sec. 34).
This
section provides that a Court shall take cognizance of any offence punishable
under this Act or of the abatement of any such offence, if a compliant to that
effect is made either:
(i) by the appropriate Government, or
(ii) under the authority of the
appropriate Government. [sub sec. (1)] Sub section (2), provides that any Court
inferior to the Court of Metropolitan
Magistrate or a Judicial Magistrate of
tha first class shall not try any offence punishable under this Act.
Protection of persons (Sec. 35).
No
person refusing to take part or to continue to take part in any strike or
lockout
which is illegal under the Act shall, by reason of such refusal or by reason of
any action taken by him under this section, be subject to expulsion from any
trade or society, or to any fine or penalty, or to deprivation of any right or
benefit to which he or his legal representatives would otherwise be entitled,
either directly or indirectly,
. under
any disability or at any disadvantage as compared with other members of the
Union or Society, anything to the contrary in the rules of a trade union or
society notwithstanding.
This
section further provides that nothing ill the rules of a Trade Union or
Society
requiring the settlement of disputes shall apply to any proceeding for
enforcing any right or exemption secured by this section and in any such
proceeding, the Civil Court may, in lieu ordering a person who has been
expelled from membership of a Trade Union or Society to be restored to membership,
order that he be paid out of the Trade Union funds such sum by way of
compensation or damages as that Court thinks fit.
Representation
of parties (Sec. 36)
According to sub section (1), a workman
who is a party to a dispute shall be
entitled to be represented in any
proceeding under this Act by:
(a) any member of the executive or other
office bearer of a registered Trade
(b) any member of the executive or officer
bearer of a Federation of Trade
Union to which the Trade Union is
affiliated;
(c) where the workman is not a member of any
Trade Union, by any member
of executive or other office bearer of
any Trade Union connected with it
or by any workman employed in, or the
industry in which the worker is employed
and authorized in such manner as may be prescribed.
In the
opinion of the appropriate Government, any difficulty or doubt arises as to
interpretation of any provision of the award, or settlement, it may refer the
matter to such Labour Court / Tribunal/National Tribunal; as it may think fit
(Sec 36-A).
The
decision of the Labour Court
Power
to exempt from the provisions of the Act (Sec 36-B) Para Where the appropriate
Government is satisfied in relation to any industrial establishment or
undertaking carried on by a department of the Government that adequate
provisions exist for the investigations and settlement of industrial disputes;
such class of establishments or undertaking, it may, by notification in the
official Gazette, exempt, conditionally or unconditionally such establishments,
or undertakings from all or any of the provisions of this Act.
Protection
of action taken under the Act (Sec. 37)
No
suit, prosecution or other legal proceeding shall exist against any person for
anything done in good faith or intended to be done in pursuance of this Act, or
any rule made there under.
Power
to make rules (Sec. 38)
The
appropriate Government may make rules for the purpose of giving effect to the
provisions of this Act. Such rules may provide for all or any of the following
matters; namely
(a)
the powers and procedure of Conciliation Officers, Boards, Court, Labour Courts,
Tribunals or National Tribunal, including rules as to the summoning
of witness, the production
of document concerned.
(aa) the form of arbitration
agreement.
(aaa) the appointment of assessors in
proceeding under this Act,
(ab) the constitution of Grievance
Settlement Authorities.
(b) the
constitution and functions of, and the filling of vacancies in Works
Committees, and the
procedure to be followed by it.
(c) the allowances admissible to
members of Courts and Boards and
Presiding Officers of
labour Courts, Tribunals and National Tribunal.
(d) the ministerial establishment
which may be allotted to a Court, Board,
Tribunal or National
Tribunal.
(e) the manner in which and the
persons by and to whom notice of strike or lockout may be given and mode of
communication.
(f) the conditions subject to
which parties may be represented by legal
practitioners in proceeding
under this Act before a Court, Labour
Court
Tribunal or National
Tribunal
(g) any other matter which is to be or
may be prescribed.
Delegation of powers (Sec. 39)
The
appropriate Government may by notification in the official Gazette, direct that
any power exercisable by it under the Act or rules made there under, shall be
exercisable by:
(a) by such officer or authority subordinate
to the Central Government,
(where
the appropriate Government is the Central Government) or by the State
Government or by such officer or authority subordinate to the state Government
as may be specified in the notification; and
(b)
where the appropriate Government is a State Government, by such officer or
authority subordinate to the state Government, as may be specified in the
notification.
Power to amend schedules (Sec. 40)
If
the appropriate Government or the Central Government feels it necessary in the
public interest, can amend the schedule by notification issued in the official
Gazette. The first; second or third schedule can be amended.
CAUSES
CONSEQUENCES AND SETTLEMENT OF
INDUSTRIAL
DISPUTES
Industrial
Disputes Act provides for a machinery for just and equitable settlement of
Industrial disputes by adjudication, negotiation and conciliation. It promotes measures
for securing and preserving amity and good relations between employer and
workmen. It helps prevention of illegal strikes and lockouts, and provides
provision
for
relief to workmen in the case of layoff and retrenchment. It promotes a base or
collective bargaining also.
Causes of Industrial
Disputes
The
problem of industrial unrest is inherent in the industrial system. The main
features of industrial work anywhere are that (a) it involves division of
labour; (b) it is a group activity; (c) it is carried under control. Broadly
speaking, the causes of industrial disputes can be classified as:
1 . Economic
causes
2. Management
causes, and
3. Political
causes
A brief description of each, is given
below:
1. Economic
causes
Economic
causes include questions pertaining to wages, bonus and allowances,
retrenchment of workmen by the employer retionalisation and automation, faulty
retrenchment system, leave and so on. Low wages, irrespective of rising prices,
demand for a rise in D.A., intolerable working and living conditions, issues
pertaining to hours of work, etc. are some other economic causes that provoked
a number of strikes in India
The
worker factors responsible for industrial unrest have been: (1) Inter union
rivalries, (2) Economic and political environment that exercise adverse effects
on workers attitudes, and (3) Indiscipline amongst workers.
2. Managerial causes
Some of the causes of discontent are
inherent in the industrial system, itself
such
as:
(1) Workers do not get any opportunity
for self-expression; or
(2) Their social needs are not
fulfilled; that is. the position of workers within in informal qroups formed in jndustrial undertakings and
problems of conflict within the groups may not be taken into account.
(3)Lack of communication on one hand,
between the workers and management may turn petty quarrels into industrial
unrest and on the other, the problem of discipline in industrial units may
assume serious dimensions.
The other managerial factors
responsible for industrial unrest have been as
1. Mental inertia on the part of
management and labour.
2. Management's general attitude of
hatred towards their workers,
3..Lack of competence on the
supervisor and other managers in human relations.
4..Management's desire to pay
comparatively lesser amount of bonus or dearness allowance against the desire
of workmen.
5. .Efforts to introduce modernisation
without prior or appropriate environment.
6. Excessive work load and inadequate
welfare facilities.
7. Defective policy of lay-off.
8. Denial of the workers right to
recognize union.
9. Unfair practices like victimization
or termination of services without assigning any reasons.
10.Lack
of definite wage policy and stabilization of prices.
12. Lack of a proper policy of union recognition.
13.Denial of worker's right to organise, etc.
Political
causes
Industrial
disputes are pertly political also. Some important political strikes I
organized by industrial workers in India
Impact/Effect/Consequences
of Industrial Disputes
The consequences of Industrial
disputes are many. A brief description is given
(1) Disturb the economic, social and political
life of a country: When labour and equipment in the whole or any part of an
industry are rendered idle by strike or lockout, national dividend suffers in a
way that injures economic welfare.
Loss of
Output:
(2)Loss of Output : Loss of output in an
industry which is directly affected by a dispute, but other industries are also
affected adversely, as stoppage of work in one industry checks activity in
other industries too.
(3)
Decline in the demand for goods and
services: Strikes reduces the demand for the goods that other industries
make, if the industry in which stoppage has occured is one that furnishes raw materials
semi-finished goods or service largely used in the products of other
industries.
(4)
Lasting loss to the workers: There is a lasting injury to the workers in
the form of work being interrupted due to the strikes which involves a loss of
time which cannot be replaced. The wages are lost and the workers can least
afford to lose them specially when the average earning of a worker is not very
high.
(5)
Increase in indebtedness : This increases the indebtedness among the
workers and not only the old debts become heavier but fresh debts may also be
incurred.
(6)
Loss of health of family members : The workers and their family members
also suffer from loss of health due to mental warrious resulting from loss of
wages.
(7)
Problem to consumers : Strikes and lockouts create problem to consumers
also. Articles of their requirements are not available in time, and the prices
of such articles reach high due to black marketing activities. ..
(8)
Loss to the management/employer : When workers stop working, the plant
and machinery remain idle. The fixed express are to borne by the employer even
when the production stops. This way the employer suffers from great loss.
(9)
Bad effect on labour relations: Strikes and lockouts bring bad effects
on industrial relations. With the result the workmen and the employer always be
in mental tension.
(10) Obstruction to economic
growth: Strikes creates many kinds of
violence which obstruct the growth of
economy.
PREVENTION AND SETTLEMENT OF INDUSTRIAL DISPUTES:
Machinery
for prevention of disputes in India
(1) Strong Trade Union
(2) Profit Sharing and Co-partnership
(3) Joint Consultation
(4) Inrlustrial Employment Standing
Orders
(5) Code of Discipline
(6) Collective Bargaining
(7) Works Committees
(8) Workers Participation in
Management
(9) Tripartite Bodies/ Machinery
(10) LabourWelfare Officer
(11 ) Wage Board
1. Strong
Trade Union: A
strong trade union responsible to the welfare of workers must work to protect
and promote the interests of workers and the condition of their employment. It
must provide advice and information to management on personnel policies and
practices. Unions also impress upon workers the need to exercise restraint in
the use of their rights. Unions assist employers in maintaining discipline and
in increasing productivity. Unions should act as a link between employers and
workers so as to develop mutual understanding and co orporation between the two
sides. As a matter of fact a trade union is the most switable and most
effective agency to conduct bargaining strong.
2. Profit Sharing and Co-partnership: (a) Profit-Sharing: This method
helps for maintenance of good industrial relations. Profit sharing means that
the employer gives to the workers a portion of profit of the business, in
addition to wages. It is usually based on an agreement between the employer and
the workers.
Importance of profit
sharing:
(1) The
award to labour of a share of profits would create psychological
conditions favourable to
the restoration of industrial peace.
(2) Profit sharing is likely to
strongthen the common interest of labour and
capital and thereby
increase the productive efficiency of the workers.
(3) Profit sharing e"nhances
social justice so far as labour, a primary factor
of production, that
produces profits, is allowed to share in them.
(4) Protit sharing makes the worker
responsible, creates a feeling of identity
with business and settles
all disputes peacefully.
Limitations
of profit sharing:
(1)
Although the purpose of profit sharing is to lay foundation for harmonious
industrial relations, they often fail to gain the confidence of the worker
since the amount of profits accruing to the workers has not been very
large. The workers suspect honesty and
good faith on the part of the employer in distribution of profits.
(2) There is possibility of
conflicts since the employees contend that the
increased profits are due
to their efforts.
(3) The workers often fear that employers may use the profit-sharing
scheme to weaken the trade unions and to make the workers dependent upon them.
(4)
Profit sharing may make the workers sluggish and therefore, production instead
of being augmented, may actually diminish.
Broadly
speaking; until a climate of mutual trust and confidence is created between the
two sides, the success of profit sharing schemes in industry so far as
industrial peace is concerned, seems doubtful.
(b)
Co-partnership:
Co-partnership
has come to be a applied to schemes which include a system of profit sharing as
well as control in the management. It is necessary that in order to acquire
control of business, the workers may other acquire share-capital gaining
thereby the rights and responsibility of share-holders or may form a
co-partnership committee having a voice in internal management of the business.
So far as India
(3) Joint consultation:
The
industrial democracy necessitates joint consultation in industry between
employer~ and workers to eliminate most of the problems faced by them. Joint
consultation involves a regular and continuous relationship between workers and
management, and therefore, pre-supposes the willing acceptance by management of
the participation of workers representatives in discussing Common problems of
interest to the enterprise. While full joint consultation can be expected only
after the establishment of a collective bargaining relationship, mutual
consultation at the plant level often helps to bring the parties together and
to train them in the discussion of common problems. Thus, there is tremendous
scope of reducing industrial tension and improving productivity through joint
consultation in industry.
The
system of joint consultation in India
The
functions of Joint Consultative Machinery in India
4.
Industrial Employment Standing Orders: This is another constructive step
towards the prevention of industrial disputes which determine the terms and
conditions of industrial employment. Every worker should have the knowledge
about the terms and conditions in which he has been employed. He is also
expected to know the rules of discipline that is supposed to be followed by
him. This problem is solved by 'Standing Orders' in which terms and conditions
for employers and employees are prescribed. The provision for 'Standing orders
was for the first time, made in the Bombay Industrial Disputes Act, 1938.
Thereafter, in order to define the condition of employment and to make them
known to the workmen, the Government enacted the Industrial Employment (Standing
Orders) Act, 1946. This
Act applies to every industrial establishment wherein 100 or more workers are
employed or were employed on any day of the preceding 12 months.
5.
Code of Discipline: The Indian Labour Conference at its 15th Session in
1957 evolved a 'Code of Industrial Discipline'. The Code voluntarily binds the
employers and workers to settle all grievances and disputes by mutual
negotiations, conciliation and voluntary arbitration. The main features of this
Code include the following.
(1) Both,
employers and employees should recognise the rights and
responsibilities
of each other.
(2) Neither party will have recourse to
coercion, intimidation, litigation and
victimisation, but will settle all disputes
through the existing machinery
for the settlement of
industrial disputes.
(3) A mutually agreed procedure will be set up and both the parties will
abide by it without
taking arbitrary action.
6. Collective
Bargaining: It is a
form of joint consultation, and a process in which the representative of the
employer and of the employees meet and attempt to negotiate a contract
governing the employer-employees union relationship. It involves discussion and
negotiation between the two groups as to the terms and conditions of
employment. The main object of collective bargaining is to protect the
interests of workers through collective action and by preventing unilateral
action on the part of the employer. It promotes industrial democracy.
7. Works committees:
Works committees are the most
suitable agency for prevention of industrial disputes. In most of the countries
like India
According
to Sec. 3 of the Industrial Disputes Act 1947, in the case of an industrial establishment in which 100
or more workmen are employed or have been
employed on
any day in the preceding 12 months, the appropriate Government may, by general
or special order require the employer to constitute a Works Committee
consisting of representatives of employers and worker engaged in the
establishment, the number of representatives of workmen not being less than
that of the employers representatives, to be chosen in consultation with their
trade union, if any.
The
duties of the Works Committee are to promote measures for securing and
preserving amity and good relations between the employer and workmen and to
comment upon matters of their interest, and to endeavor to compose any material
difference of opinion in respect of such matters.
8.
Workers participation in
management: These councils aim at enabling the workers to participate in
management, help them to understand the problems and difficulties of the
industry concerned and bring about better relationship between the management
and labour.
9. Tripartite Bodies/Machinery: Several tripartite bodies have been
constituted at Central and State levels. The Indian Labour Conference, Standing
Labour Committees, Wage Bounds and Industrial Committees operate at the Centre.
At the State Level, State Labour Advisory Bounds have been set up. All these
bodies play important role in reaching at agreements on various labour matters.
The recommendations of these bodies are advisory in nature but carry a great
weight on employers, trade unions and the Government. All these bodies
constitute the consultative machinery for the private sector.
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