INDUSTRIAL CONFLICTS

GENESIS Conflict of interest between mgmt.& labour Profit maximization goal of mgmt and worker’s expectation of better wage-major source of conflict Conflict between “hands that produce” and “Hands that control” When conflict acquires specific dimensions- it becomes a dispute

IMPACT OF INDUSTRIAL DISPUTES Far reaching – Disturb economic, social & political life of country. All suffer – Workers, employers, consumers, community & nation. Huge wastage of mandays, loss of wages to workers, loss of employment Unsuccessful strikes demoralize workers, sullen & shake confidence in Unions.

IMPACT OF INDUSTRIAL DISPUTES (contd..) Employer also suffers heavily through reduction in sales, loss of market / Co. image & huge expenditure on crushing strike. Industrial unrest creates law & order problem for public and bitterness lingers. Affect national economy because of supply chain discontinuity.

STRIKES Defined in section 2(q) of IDA,1947 as “Cessation of work by a body of persons employed in any industry,acting in combination,or a concerted refusal under a common understanding of a number of persons,who are or have been so employed to continue to work or to accept employment” Hence three main elements: 1.Plurality of workmen 2.Cessation of work or refusal to do work 3.Combined or concerted action

Go- slow Industrial Disputes Strikes 1. Primary Strikes2. Secondary Strikes 3. Others Stay Away Strikes Sit-down Stay-in Tool-down / Pen-down Strikes Token or Protest Strikes Work to Rule Lightning or Cat-call strikes Gherao Sympathy Strikes General Particular Political Bandhs Picketin g & Boycott

WHEN ARE STRIKES JUSTIFIED Launched only for economic demands such as Pay, Fringe Benefits etc Prima facie justification for demands which are reasonable & legitimate Existing facilities are withdrawn If any unfair labour practice is there on part of mgmt. No response from mgmt on demands in spite of reminder Necessary in light of facts & used as a last resort, after exhausting all other possibilities.

PREVENTION OF STRIKES Management should adopt well defined, precise clear and HRM policies. Management should ensure proper implementation of HR policies. To ensure that an effective 2 way communication system is in operation to avoid any misunderstanding. Speedy grievance redressal procedure. Recognition to representative Unions Ensure joint consultation at various levels.

SETTLEMENT MACHINERY A.CONCILIATION B.ARBITRATION C.ADJUDICATION

A. CONCILIATION 3 rd Party intervention on promoting voluntary settlement of disputes. Most frequently used method even in International Disputes Conciliation is limited to encouraging parties to help develop their own proposed solutions. Conciliator very often Govt. official. In larger disputes there are Conciliation boards.

B. ARBITRATION A means of resolving a dispute by reference to 3 rd party who makes a decision binding on both parties. It is a judicial process & rests on equity & justice & has no place for compromise. Since established for agreement both parties have more faith & faster to that in courts & labour tribunals. Deprive labour of its right to go on strike Often biased against labour & usually not in their favour.

C. ADJUDICATION Involves intervention in disputes by a 3 rd party appointed by Govt. for deciding the nature of final settlement When Govt. get a report of failure of conciliation proceedings, it refers the dispute to arbitration or adjudication. When both parties agree, its called voluntary adjudication. 3 Tier System of Adjudication:- Labour Courts Industrial Tribunals National Tribunals

UNFAIR LABOUR PRACTICE (5 th Schedule, Section 2 (RA) On part of Employers. To interfere or coerce in the exercise of their rights to organize, form, join a TU, or to engage in activities such as threatening workmen with dismissal. To dominate, interfere or support to any Union by showing partiality. To establish employer-sponsored Union. To dismiss workmen by way of victimization or curbing his rights. Abolish work of regular nature & off loading. Transfer a person on malafied grounds. Recruit workers when strike is on.

UNFAIR LABOUR PRACTICE (5 th Schedule, Section 2 (RA) contd.. On part of Workmen & their unions. To actively support strike deemed to be illegal. To coerce workmen in exercise of their right to self organization. To stage or encourage actions as ‘Go Slow”, “Gherao” or demonstration at the residence of employers or damage Company property.

PROTECTED WORKMAN He cannot be proceeded against without obtaining permission for dismissal, discharge or punishment from the Tribunal. Related Law is Under Section 33 (3) & states that :- Protected workman means a workman who, being an officer of a registered TU connected with the establishment, is recognized as such in accordance with rules made in this behalf. In every establishment, no. of workmen to be recognized as protected shall be 1% of total no.,of workmen employed therein subject to a minimum no. of 5 & maximum of 100.

ESSENTIALS OF A DISPUTE Must be a dispute between : Employers and workmen Workmen and workmen Employers Relationship must be in existence and should be result of a conflict.