Industrial Disputes in India 1 1

Refer: Francis Cherunilam: Business Environment, “Labour Welfare and Social Security;” Chapter 28. Suresh Bedi: Business Environment, “Labour Environment;” Chapter 32. Ruddar Datt, K.P.M. Sundharam (2010): Indian Economy, “Labour Problems and Labour Policy;” Chapter 40.

Industrial Disputes Introduction There are conflicts between employers and workers; These conflicts (disputes) have different forms; From the side of workers, the protests may be in the form of: strikes, go slow, gheraos, demonstration etc.; From the side of employers, it could be in the form of: retrenchment, dismissals, lockouts etc. Industrial disputes result in loss of production and decline in national income; It is, therefore, in interest of all, to look into factors responsible (causes) for such disputes and the methods used to remove them.

Causes of Industrial Disputes The causes of industrial disputes could be both economic or non-economic. These are discussed as follows: - Workers demand for more wages (wages not rising in proportion to rise in prices); Workers demand for bonus the increase in bonus: There is an increasing feeling among workers that they should have greater share in the profits. Non-acceptance of this fact by the employers becomes a source of friction; Demand for improved working conditions – such as normal working hours, lunch time, holidays and leaves, better occupational health & safety measures at workplace, drinking water, clean washrooms, medical facilities, canteens, restrooms, etc. – their absence or lacking may cause workers protest.

Causes of Industrial Disputes Labour retrenchment or dismissal; Non-implementation of Labour Acts, awards and agreements, standing orders by the employers; Workers indiscipline and violence – resulting into lockouts. When the managements think that labour productivity has failed to rise commensurate with the rise in wages, consequently, the managements think that it is better to close down than pay inflated wages to an undisciplined labour force;

Settlement of Industrial Disputes Under the Industrial Dispute Act (IDA), 1947, the following arrangement exists for the prevention and settlement of industrial disputes: - Works Committees – these are joint committees comprising members from both, management and the workers, and is set up in order to promote harmonious relations between the two groups. These committees provide a forum for negotiations between workers and management at the factory level. Conciliation - under this, all establishments employing 50 workers or more, are required to establish Grievance Settlement Authority (GSA). All labour disputes have to be initially referred to it. If the decision of the GSA is not acceptable to all the concerned parties, then it is referred to a conciliation officer appointed by the Government for the purpose.

Settlement of Industrial Disputes If a settlement is arrived, the conciliation officer sends his report with the Memorandum of Settlement (signed by all the parties to the dispute) to the government. If the settlement is not arrived, the reasons for non-settlement are recorded and a report (of non-settlement) is sent to the government, which may then constitute a Board of Conciliation (consisting of a Chairman – an independent person, and members from both management and workers). The Board then reports to the government about the success or failure of its efforts; Arbitration - In arbitration mechanism, the concerned parties, by mutual agreement, can refer the dispute to an arbitrator (an external third person, acceptable to all) before the same has been referred for adjudication.

Settlement of Industrial Disputes In case the matter is not solved by arbitration, it is then referred to court (i.e. for adjudication); Court of Enquiry – Whenever the industrial dispute is not settled by conciliation and arbitration, the matter is referred to a court of enquiry. The court will investigate the whole dispute and will submit its report to the government (within a period of six months from the date of commencement of its inquiry). The case will then be referred to either a Labour Court or an Industrial Tribunal for adjudication; Adjudication (to deliver judgment) – Under the IDA, 1947 the adjudication mechanism is divided into two, depending upon the type of problem - The labour Court, and the Industrial Tribunals. The latter could be of two types, viz., State Tribunals, and National Tribunals.

Settlement of Industrial Disputes 5 a) Labour Courts – Are set up by State governments; These decide matters (contained in the 2nd Schedule of IDA, 1947) like disputed orders of the employers, dismissals, suspensions of employees, legality of strikes, lock-outs etc. The labour courts decide matters speedily and report to the government. 5 b) Industrial Tribunals – These tribunals decide matters (contained in 3rd Schedule of IDA, 1947) related to wages, bonus, allowances, other benefits, working conditions, discipline, retrenchment etc.). When set up by the State governments’ they are called State Tribunals. When set up by the Central Govt., they are called National Tribunals, and they decide upon matters of national importance or which affect industrial establishments situated in more than one State.

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