NEW LAW COLLEGE

SUBJECT: LABOUR LAWS

TOPIC: THE INDUSTRIAL DISPUTES ACT 1947

NAME: Pravin Madhukar Tete

ROLL NO: 149

DIVISION: B

I have taken the above-mentioned topic for my F.Y.LL.B

Semester - I Assignment.

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 INDEX
Sr.No Topics Page No.
Chapter-1 Introduction 03-05
Chapter-2 International labour standards 06
Chapter-3 Dispute Resolution in the 07-09
Indian Context
Chapter-4 Procedure for Settlement of 10
Industrial Disputes
Chapter-5 Settlement Machinery of 11-14
Industrial Disputes
Chapter-6 Industrial Dispute Cases 15-17
Chapter-7 Conclusion 18

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CHAPTER-1 INTRODUCTION
An Act to make provision for the investigation and settlement of industrial disputes, and for certain other
purposes. Citation Act No. 14 of 1947 Enacted by Parliament of India Date enacted 11 March 1947 Date
assented to 11 March 1947 Date commenced 1 April 1947.
The objective of the Industrial Disputes Act is to secure industrial peace and harmony by providing machinery
and procedure for the investigation and settlement of industrial disputes by negotiations.
Various studies indicate that Indian labour laws are highly protective of labour, and labour markets are
relatively inflexible. These laws apply only to the organized sector. Consequently, these laws have restricted
labour mobility, have led to capital-intensive methods in the organised sector and adversely affected the sector’s
long-run demand for labour. Labour being a subject in the concurrent list, State-level labour regulations are also
an important determinant of industrial performance. Evidence suggests that States, which have enacted more
pro-worker regulations, have lost out on industrial production in general; the problem of industrial dispute is
common to almost all the developed and developing countrie of the world.
Industrialization has tended to create a hiatus between management and workers, owing to the absence of
workers ownership over means of production this gap has led to industrial friction and conflicts, which
ultimately cause industrial disputes. Conflict resolution is an essential part of any well-functioning labour
market and industrial relations system. This article highlights the legal and practical aspects of industrial dispute
resolution in India. Presence of a powerful collective bargaining machinery and proactive communication
between the management and the unions not only minimizes the grievances but also promotes healthy industrial
relations.
The Industrial Disputes Act (IDA) of 1947. Particular attention has been paid to its Chapter V-B, introduced by
an amendment in 1976, which required firms employing 300 or more workers to obtain government permission
for layoffs, retrenchments and closures. A further amendment in 1982 (which took effect in 1984) expanded its
ambit by reducing the threshold to 100 workers. It is argued that since permission is difficult to obtain,
employers are reluctant to hire workers whom they cannot easily get rid of. Job security laws thus protect a tiny
minority of workers in the organised sector and prevent the expansion of industrial employment that could
benefit the mass of workers outside. It is also argued that the restriction on retrenchment has adversely affected
workplace discipline, while the threshold set at 100 has discouraged factories from expanding to economic
scales of production, thereby harming productivity. Several other sections of the IDA allegedly have similar
effects, because they increase workers’ bargaining strength and thereby raise labour costs either directly through
wages or indirectly by inhibiting work reorganization in response to changes in demand and technology. The
Act also lies down:
1. The provision for payment of compensation to the workman on account of closure or lay off or retrenchment.
2. The procedure for prior permission of appropriate Government for laying off or retrenching the workers or
closing down industrial establishments
3. Unfair labour practices on part of an employer or a trade union or workers.

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Applicability
The Industrial Disputes Act extends to whole of India except Jammu and Kashmir and applies to every
industrial establishment carrying on any business, trade, manufacture or distribution of goods and services
irrespective of the number of workmen employed therein. Every person employed in an establishment for hire
or reward including contract labour, apprentices and part time employees to do any manual, clerical, skilled,
unskilled, technical, operational or supervisory work, is covered by the Act. This Act though does not apply to
persons mainly in managerial or administrative capacity, persons engaged in a supervisory capacity and drawing
> 1600 P.M or executing managerial functions and persons subject to Army Act, Air Force and Navy Act or
those in police service or officer or employee of a prison.
Authorities under this Act
Works Committee: Bipartite forum having representatives from employer & workmen side in equal number
ranging from 12 to 20 in total.
Conciliation Officer: The appropriate Govt. may appoint Conciliation Officers charged with the duty of
mediating in and promoting the settlement of industrial disputes.
Board of conciliation: The appropriate Govt. by a notification in official Gazette constitutes a Board of
Conciliation for promoting the settlement of an industrial dispute. A board should consist of a chairman and two
or four other members, as the appropriate Govt. thinks fit.
Labour Court: The appropriate Govt. may constitute one or more labour courts for the adjudication of
industrial dispute. A labour court shall consist of one person only with necessary judicial qualification, to be
appointed by the appropriate Government.
Tribunals: The appropriate Govt. may constitute one or more Industrial Tribunals for the adjudication of
industrial dispute relating to any matter, whether specified, in the second or third schedule and for performing
such other function as may be assigned to them.
Arbitrator: Voluntary reference of dispute to arbitrator for adjudication under an agreement. Publication of
arbitration agreement in official gazette is mandatory

WHAT IS AN INDUSTRIAL DISPUTE?

U/S- 2(k) of the Industrial Disputes Act, 1947 defines an 'industrial dispute' as any dispute or difference
between employers and employers or between employers and workmen, or between workmen and workmen,
which is connected with the employment or non- employment or the terms and conditions of employment of any
person. An 'industrial dispute' must necessarily be a dispute in an industry.
REFERENCE OF DISPUTE FOR ADJUDICATION
If a dispute is not settled by negotiations or conciliation and the parties are not interested for voluntary
arbitration, the government may at its discretion or on an application made by the parties to the dispute
representing the majority, separately or jointly, refer the dispute to the Labour Court or Industrial tribunal for
adjudication as per Section - 10(c)/10(d) as the case may be. An order of reference shall specify the period
within which the award is to be submitted to the Government. The award received from the Labour Court /
Tribunal shall then be published by the government in the Official Gazette as stipulated under Section 17(1) and
will come into force on expiry of 30 days from the date of publication. The Award shall be binding on both the

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employer and employees. The award of the Labour Court or Tribunal shall be final and not applicable. However
a writ petition before the High Court and thereafter an appeal before the Supreme Court can be filed.
The Labour Commissioner directly deals with disposing applications received from the management of
industrial establishments seeking permission for closure and for lay-off and retrenchment of workers.

CLOSURE
An employer who intends to close down an Industrial undertaking wherein 50 workmen or more but less than
100 are employed or were employed during the preceding 12 months has to serve a notice to the Government in
"Form Q" at least 60 days before the date of intended closure stating the reasons for the proposed closure as laid
down U/S- 25 FFA of the Industrial Disputes Act, 1947.
In respect of an Industrial undertaking employing 100 or more workmen on an average in the preceding 12
months, the employer has to obtain prior approval of the Government at least 90 days before the date of
intended closure by giving an application in Form QA to Secretary to Government (Labour) as stipulated U/S-
25(O) (1) of the Industrial Disputes Act, 1947. A copy of the application shall be served simultaneously on the
representatives of the workmen also.
The Government shall grant such approval, if it is satisfied with regard to the 'genuineness and adequacy of the
reasons' stated for closure, the interests of the general public and all other relevant factors. The Government will
communicate the Order within 60- days from the date of application for closure by the employer.

Constitutional Provisions
In the Constitution of India from 1950, articles 14-16, 19(1)(c), 23-24, 38, and 41-43A directly concern labour
rights. Article 14 states everyone should be equal before the law, article 15 specifically says the state should not
discriminate against citizens, and article 16 extends a right of “equality of opportunity” for employment or
appointment under the state. Article 19(1)(c) gives everyone a specific right “to form associations or unions”.
Article 23 prohibits all trafficking and forced labour, while article 24 prohibits child labour under 14 years old
in a factory, mine or “any other hazardous employment”. Articles 38-39, and 41- 43A, however, like all rights
listed in Part IV of the Constitution are not enforceable by courts, rather than creating an inspirational “duty of
the State to apply these principles in making laws”. The original justification for leaving such principles
unenforceable by the courts was that democratically accountable institutions ought to be left with discretion,
given the demands they could create on the state for funding from general taxation, although such views have
since become controversial. Article 38(1) says that in general the state should “strive to promote the welfare of
the people” with a “social order in which justice, social, economic and political, shall inform all the institutions
of national life. In article 38(2) it goes on to say the state should “minimize the inequalities in income" and
based on all other statuses. Article 41 creates a "right to work", which the National Rural Employment
Guarantee Act 2005 attempts to put into practice. Article 42 requires the state to “make provision for securing
just and human conditions of work and for maternity relief”. Article 43 says workers should have the right to a
living wage and “conditions of work ensuring a decent standard of life”. Article 43A, inserted by the Forty-
second Amendment of the Constitution of India in 1976, creates a constitutional right to codetermination by
requiring the state to legislate to “secure the participation of workers in the management of undertakings”.

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CHAPTER-2 International labour standards

The main ILO instrument dealing with dispute prevention and settlement is the Voluntary Conciliation and
Arbitration Recommendation, 1951 (No. 92). It recommends that voluntary conciliation should be made
available to assist in the prevention and settlement of industrial disputes between employers and workers. It also
recommends that parties should refrain from strikes or lockouts while conciliation or arbitration procedures are
in progress, without limiting the right to strike. Dispute resolution is further addressed under the Collective
Bargaining Convention, 1981 (No. 154), which provides that bodies and procedures for the settlement of labour
disputes. One objective of dispute resolution is in fact to promote the mutual resolution of differences between
workers and employers and, consequently, to promote collective bargaining and the practice of bipartite
negotiation. Also, 1967 (No. 130) addresses dispute resolution at the enterprise level, including rights disputes
over alleged violations of collective agreements.
Origin and History of Industrial Disputes Resolution Mechanism

The legislative history of industrial disputes can be traced from the year 1890. The earliest legislation in India
was Bengal Regulation VII of 1819. Under this legislation the breach of contract treated as criminal offence and
this was also followed by Merchant Shipping Act (I of 1859) and the Workmen s Breach of Contract Act, 1860.
However, the development and growth of central legislative measures to govern industrial legislation in India
can be examined and studied from employers and Workmen s Disputes Act, 1860 to the present Industrial
Dispute Act, 1947 which is being followed now. There were violent disturbances and conflicts and death of one
of the contractors took place in the year 1859 consequent to disputes or differences between European Railway
Contractors and their workmen in Bombay Presidency relating to the failure. And delay in payment of wages. In
this connection on the request of the Bombay Government, the Government of India enacted the Employers and
Workmen s (Disputes) Act, 1860 The Trade Disputes Act, 1929 was codified for five years as an experimental
measure. The Act was amended in 1932 and was made permanent by the Trade Disputes (Extending) Act, 1934.

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CHAPTER-3 Dispute Resolution in the Indian Context
In the Indian context, since disputes are resolved under the ID Act, the emergence of the non- union firms
would have no effect on the dispute resolution framework of conciliation, arbitration and adjudication in some
specific cases. U/S- 2A of the ID Act, where any dispute or difference between that workman and his employer
connected with, or arising out of, such discharge, dismissal, retrenchment or termination shall be deemed to be
an industrial dispute notwithstanding that no other workman nor any union of workmen is a party to the dispute
. In fact the fairness perceptions may stem from all three kinds of justice that constitute organizational justice;
distributive justice which focuses on the fairness of distribution of outcomes, procedural justice, which is
concerned about the fairness of the processes by which outcomes are distributed, and interactional justice that
deals with the fairness of interpersonal interactions and communications.
The objects of the Industrial Disputes Resolution Mechanism are:
This study attempts to examine some vital dimensions of the industrial disputes:
1. To examine the types of industrial disputes in India;
2. To analyze the dominating causes of Industrial disputes;
3. To provide for prevention of industrial disputes through works committees;
4. To provide for investigating the industrial disputes through Court of Inquiry;
5. To provide for the settlement of industrial disputes through a three tier system of Labour Courts, Industrial
Tribunals and National Tribunals;
6. To study the management attitude towards labour To impose prohibition on commencement or continuation
of strike and lock out during specified period;
7. To provide for payment of compensation in case of lay-off, Retrenchment and Closure;
8. To define and prohibit the unfair labour practices.
9. Offering suggestions and implications for improvement.
Causes Consequences and Settlement of Industrial Disputes
Industrial Disputes Act provides for 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; 3. Political causes; a brief description of each is given below:

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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 groups formed in
industrial 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 modernization 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.
11. Lack of a proper policy of union recognition. Denial of worker's right to organize, etc.
3. Political causes
Industrial disputes are pertly political also. Some important political strikes I organized by industrial workers in
India. Prior to independence, as early , there was a mass strike in Mumbai against the sentence of imprisonment
strikes occurred on account of actions taken against, for participating in demonstrations, trial of political leaders,
etc. After the independence also, some strikes have occurred owing to agitations of political parties on questions
like re-organisation action of States, National Language, etc. Percentage distribution of industrial disputes by
causes as published by the Ministry of Labour.

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Impact/Effect/Consequences of Industrial Disputes
Industrial law is no exception to the shifting emphasis of the modern law towards statutory law. The Industrial
Disputes Act, 1947 is therefore, the matrix, the charter, as it were, to the industrial law. This Act and other
analogous State statutes provide the machinery for regulating the rights of the employers and employees to lock-
outs and strikes and foster investigation and settlement of industrial disputes in peaceful and harmonious
atmosphere by providing scope for collective bargaining by negotiations and mediation and, failing that, by
voluntary arbitration or compulsory adjudication by the authorities created under these statutes with the active
participation of the unions.
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.
(2) 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 occurred is one that furnishes raw materials semi-finished goods or
service largely used in the products of other industries.
(3) 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 especially when the average earning of a worker is not very high.
(4) 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.
(5) 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.
(6) 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.
(7) 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.
(8) 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. Obstruction to economic growth: Strikes creates
many kinds of violence which obstruct the growth of economy.

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CHAPTER-4 Procedure for Settlement of Industrial Disputes
The Industrial Disputes Act, 1947 provides procedure for settlement of industrial disputes, which must be
followed in all public utility service , has been defined in section 2 (n) of the Act so as to include any railway,
postal, telegraph or telephone service that supplies power, water and light to the public, any system of public
conservancy or sanitation, any section of an industrial establishment on the working of which the safety of the
establishment or the workmen employed therein depend and any industry which keeping in view the public
emergency has been declared as such by the appropriate Government .
As laid down in the Act a dispute should first go through the process of conciliation before it could be referred
to the appropriate authorities for adjudication. Where any industrial dispute exists or is apprehended, the
Conciliation Officer may or where the dispute relates to a public utility service and a notice under Section 22
has been given shall hold conciliation proceedings in prescribed manner.
Conciliation proceedings are deemed to have been started from the date on which a notice issued to the parties
to appear before the conciliation officer who may meet them jointly or separately. The Conciliation Officer must
submit his report to the Government within 14 days of the starting of conciliation proceedings.
During this period he tries to bring about a fair and amicable settlement between the parties to dispute. If a
settlement arrived at, the Conciliation Officers will send a report to the Government along with a memorandum
of settlement duly signed by both parties. If no settlement is reached by the parties, the conciliation officer will
submit his report to the appropriate Government stating the reasons for which he thinks no settlement could be
arrived at as well as the facts of the case.
Action by the Government
On receipt of the report from the Conciliation Officer, the Government will come to a decision on whether the
circumstances and the facts of the case as such to justify a further reference. The Government has to arrive at
prima facie, conclusion that the nature of the dispute justifies a further reference. If in the opinion of the
Government, there is a scope of arriving at a settlement by further conciliation efforts, it may refer the case to
the Board of Conciliation.
Collective Bargaining as a method of Settlement of Industrial Disputes
Collective bargaining as such is one of the most developed in Indian history since independence, and deserves
the attention of all who are concerned with the preservation of industrial peace and implement of industrial
productivity. In the laissez faire the employers enjoyed unfettered rights to hire and fire. In United States of
America the workers have the right to organize and bargain collectively. In Japan the right to collective
bargaining is guaranteed under their Constitution.
Collective bargaining in India is of late development and therefore in view of the above circumstances, the
legislature in order to establish and maintain harmony and peace between labour and capital came out with a
legislation named The Industrial Disputes Act, 1947 which provides for the machinery for the settlement of
industrial disputes. This act has two main objects, first is the investigation and the second is the settlement.
There are some routine criticism of the adjudicatory system i.e., delay, expensive Governmental interference in
referrals and uncertain outcome. Therefore the parties to the industrial dispute are coming closure to the idea
that direct negotiations provide better approach to resolving key deference over wages and other conditions of
employment.

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CHAPTER-5 Settlement Machinery of Industrial Disputes
State intervention in industrial relations is essentially a modern development. The concern of state in matters
relating to labour is a product of its obligations to protect the interest of industrial community, while at the same
time fostering economic growth in almost all countries. The state has assumed powers to regulate labour
relations in some degree or the other. In 1947, the Government of India passed the Industrial Disputes Act under
which machinery for the preventions and settlement of the disputes was outlined. The Act as amended in 1956
has set up machinery for settlement of disputes. The present system of establishing industrial peace and to settle
industrial disputes is as under:
The Works Committee
In the case of any 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 in the prescribed manner a Works Committee consisting of representatives of
employer and workmen engaged in the establishment. It shall be the duty of the Works Committee.
Short Comings
The scope of the Works Committee as in Sec. 3 (ii) of the Industrial Disputes Act, 1947 is vague. Besides
health, safety, welfare and human relations, the committees advise on a number of technical matters and are
kept posted with the undertaking position of trade, sale and account sheets.
Grievance Redressal Machinery
The Industrial Disputes (Amendment Act), 2010 had substituted a new chapter for chapter II- B.
1. Every industrial establishment employing 20 or more workmen shall have one or more GRC for the
resolution of disputes arising out of individual grievances.
2. The GRC shall consist of equal number of members from the employer and the workmen.
3. The chairperson of the GRC shall be selected from the employer and from among the workmen alternatively
on rotation basis every year.
4. The total number of members of the GRC shall not exceed more than six. Provided that there shall be, as far
as practicable, one woman member if the GRC has two members and in case the numbers of members are more
than two, the number of women members may be increased proportionately.
5. Notwithstanding anything contained in this section, the setting up of GRC shall not affect the right of the
workman to arise industrial dispute on the same matter under the provisions of this Act.
6. The GRC may complete its proceedings within 30 days on receipt of a written application by or on behalf of
the aggrieved party.
7. The workman who is aggrieved of the decision of the GRC may prefer an appeal to the employer against the
decision; and the employer shall, within one month from the date of receipt of such appeal, dispose of the same
and send a copy of his decision to the workman concerned.
8. Nothing contained in this section shall apply to the workmen for whom there is an established GRC in the
establishment concerned.

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Duties of Conciliation Officers
The Conciliation Officer is required to submit his report within 14 days of the commencement of the
conciliation proceedings, but the time for the submission of the report may be extended further on the written
request of the parties to the dispute. Where a settlement is not reached, the appropriate Government, after
considering the report of the conciliation officer, may refer the dispute to a Board of Conciliation or Labour
Court or Industrial Tribunal or National Tribunal as the case may be.

A Conciliation Officer may take appropriate steps for inducing the parties to a fair and amicable settlement of
the dispute. If a settlement is arrived at during conciliation proceedings, he must send a copy of the report and
the memorandum of the settlement to the Government. In case no settlement is arrived at, he is required to send
to Government, full report of the steps taken by him to resolve the dispute, and the reasons on account of which
a settlement could not be arrived at.

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Unfair Labour Practices
I. -On the part of employers and trade unions of employers
1. To interfere with, restrain from, or coerce, workmen in the exercise of their right to organise, form, 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 :-
(a) Threatening workmen with discharge or dismissal, if they join a trade union;
(b) Threatening a lock-out or closure, if a trade union is organised;
(c) Granting wage increase to workmen at crucial periods of trade union Organisations, with a view to
undermining the efforts of the trade union Organisations.
2. To dominate, interfere with or contribute support, financial or otherwise, to any trade union, that is to say :-
(a) An employer taking an active interest in organising a trade union of his workmen; and
(b) An employer showing partiality or granting favour to one of several trade unions attempting to organise his
workmen or to its members, where such a trade union is not a recognised trade union.
3 To establish employer sponsored trade unions of workmen.
4. To encourage or discourage membership in any trade union by discriminating against any workman, that is to
say :-
(a) Discharging or punishing a workman, because he urged other workmen to join or organise a trade union;
(b) Discharging or dismissing a workman for taking part in any strike (not being a strike which is deemed to be
an illegal strike under this Act);
(c) Changing seniority rating of workmen because of trade union activities;
(d) Refusing to promote workmen to higher posts on account of their trade union activities;
(e) Giving unmerited promotions to certain workmen with a view to creating discord amongst other workmen,
or to undermine the strength of their trade union;
(f) Discharging office-bearers or active members of the trade union on account of their trade union activities.
5. To discharge or dismiss workmen-
(a) By way of victimization;
(b) Not in good faith, but in the colourable exercise of the employer’s rights;
(c) By falsely implicating a workman in a criminal case on false evidence or on concocted evidence;
(d) For patently false reasons;
(e) On untrue or trumped up allegations of absence without leave;
(f) In utter disregard of the principles of natural justice in the conduct of domestic enquiry or with undue haste;

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(g) For misconduct of a minor or technical character, without having any regard to the nature of the particular
misconduct or the past record or service of the workman, thereby leading to a disproportionate punishment.
6.To abolish the work of a regular nature being done by workmen, and to give such work to contractors as a
measure of breaking a strike.
7.To transfer a workman mala fide from one place to another, under the guise of following management policy.
8. To insist upon individual workmen, who are on a legal strike to sign a good conduct bond, as a pre-condition
to allowing them to resume work.
9. To show favouritism or partiality to one set of workers regardless of merit.
10.To employ workmen as ‘badlis”, casuals or temporaries and to continue them as such for years, with the
object of depriving them of the status and privileges of permanent workmen.
11. To discharge or discriminate against any workman for filing charges or testifying against an employer in
any enquiry or proceeding relating to any industrial dispute.
12. To recruit workmen during a strike which is not an illegal strike.
13. Failure to implement award, settlement or agreement.
14. To indulge in act, of force or violence.
15. To refuse to bargain collectively, in good faith with the recognised trade unions.
16. Proposing or continuing a lock-out deemed to be illegal under this Act.
II.-On the part of workmen and trade unions of workmen
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-organizations or to join a trade union or refrain from
joining any trade union, that is to say :-
(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 recognized union to refuse to bargain collectively in good faith with the employer.
4) To indulge in coercive activities against certification of a bar-gaining representative.
5) To stage, encourage or instigate such forms of coercive actions as wilful go slow”, squatting on the work
premises after working hours or ‘gherao’ of any of the members of the managerial or other staff.
6) To stage demonstrations at the residences of the employers or the managerial staff members.
7) To incite or indulge in wilful damage to employer’s property connected with the industry.
8) To indulge in acts of force or violence or to hold out threats of intimidation against any workman with a view
to prevent him from attending work.

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CHAPTER-6 Industrial Dispute Relevant Cases
 In State of Bombay v. Hospital Mazdoor Sabha, the Supreme Court held the State is carrying on an
‘undertaking’ within Sec. 2(j) when it runs a group of hospitals for purpose of giving medical relief to
the citizens and for helping to impart medical education. The court observed as follows:

 An activity systematically or habitually undertaken for the production or distribution of goods or

for the rendering of material services to the community at large or a part of such community
with the help of employees is an ‘undertaking.

 It is the character of the activity in question which attracts the provisions of Sec. 2 (j), who
conducts the activity and whether it is conducted for profit or not, do not make a material
difference.

 In Management of Safdarjung Hospital v. Kuldip Singh, it was held that a place of treatment of
patients run as a department of the government was not an industry because it was a part of the
functions of the government. Charitable hospitals run by Government or even private associations
cannot be included in the definition of industry because they have not embarked upon economic
activities analogous to trade or business. If hospitals, nursing home or a dispensary is run as a business
in a commercial way, there may be elements of industry.

 To raise a dispute against the employer, a workman need not be “workmen” strictly within the meaning
of the Act, but can be one in whose employment, non-employment, terms of employment or conditions
of labour, the workmen as a class have a direct or substantial interest- Workman of Dimakuchi Tea
Estate v. Management of DTE AIR 1958 SC 353.
Industrial Dispute Cases in Bhilai Steel Plant
 Retrenchment

Retrenchment is a subject-matter of industrial dispute as per the analysis of definition provided under
Industrial Disputes Act, 1947 read along with the concerned Standing Orders.

In the case of Bajrang v. Bhilai Steel Plant in front of the Industrial Tribunal in Jabalpur (M.P.), the
management of Bhilai Steel Plant was not held liable for retrenchment of a contractual workman.

The facts of the case may be summarized as follows:

i. Petitioner was a contractual workman employed in the Dalli Rajhara mines of Bhilai Steel Plant
appointed by the contractor M/s Commercial Transport Company. Thus, Bhilai Steel Plant was not the
actual employer but only a principal employer.

ii. As per the rules and procedure, regular medical check-up was done of each employee. Thereby, a
proper test was done by the Medical Board.

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 iii. The Petitioner was declared unfit for working in the mines by virtue of his poor vision (6/60) as the
Standing Orders (Mines) read with the concerned Rules prescribed the required eyesight of 6/12 – 6/18).

iv. As such, the petitioner’s name was removed from Form-B and his entry into the mines was stopped.
Thereafter, the petitioner was removed from employment by the contractor.

v. Aggrieved by this, he filed a complaint against Bhilai Steel Plant for illegal retrenchment.

The two major claims made by the petitioner were that Bhilai Steel Plant was its actual employer as it
payed his Provident Fund as mandated by the Standing Orders. Further, the medical report of District
Hospital (Durg) which declared him fit for working in the mines was not taken into consideration before
dismissing him from work. The CGIT Jabalpur took into account all these contentions and found that, as
such, the Provident Fund was payed by the contractor who was the actual employer and not BSP.
Furthermore, the report of District Hospital was not acceptable as per the Rules. Moreover, Rule 29(j) of
the Mines Act, 1952 allows provision for appeal to Medical Board for re-examination within 30 days.
No such appeal had been filed; therefore, the medical certificate of District Hospital was not acceptable.

Hence, the Tribunal was of the opinion that Bhilai Steel Plant was not liable for illegal retrenchment as
claimed by the petitioner.

 Penalty on grounds of misconduct (as per the governing Standing Orders)

Application and interpretation of the Standing Orders is one of the most common grounds of
dispute/ difference between employers and workmen. An instance of such a dispute is seen in the
case of P.K. Trivedi v. Bhilai Steel Plant.

In the instant case, the facts may be stated as:

i. The Petitioner was an employee in the Nandini Mines of the Bhilai Steel Plant and the
President of a Trade Union, CSSS, representing the workers in the mine.

ii. The Petitioner was charged with several misconducts as per the Standing Orders (Mines) such
as stoppage of work, inciting the co-workers to strike, holding meetings within the Mines without
authorization, etc.

iii. A departmental enquiry was held against the delinquent employee and as many as 5 charges
out of the alleged 7 charges were affirmed and thereby he was held liable for the misconduct.

iv. As a result of this, he was penalized with demotion of two grades to S-6 with cumulative
effect.

v. Aggrieved by the order of the management, the union referred the dispute to the Industrial
Tribunal.

The Petitioner further contended that being the President of the Trade Union he was voicing
against the current conditions of work as well as the salary being given. But the management

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 didn’t heed to their demands, on the other hand, he was being targeted unjustly. Also, the
misconducts listed in the charge-sheet against him and the penalty so imposed was not as per the
Standing Orders.

The management put forth its witnesses and pleaded that his conduct called for dismissal but the
management took lenient view considering his age and penalized him with demotion of 2 grades
to S-6 with cumulative effect.

However, the Tribunal decided in favour of the departmental enquiry held against the Petitioner.
Taking into consideration the testimony of the officer in-charge of the mines as well as other
witnesses, 5 out of the 7 charges against the Petitioner were affirmed. The Tribunal, further,
stated that the penalty on grounds of misconduct was according to Section- 29 of the Standing
Orders (Mines).

Hence, the Tribunal upheld the penalty imposed by the management upon its departmental
enquiry and the penalty was allowed as per Rules.

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CHAPTER-8 Conclusion

The Industrial Disputes Act 1947 is the most elaborative part of legislation that governs the formation and
conduct of industrial affairs. The Act confers a variety of powers on the Central Government and the Industrial
Law board to monitor, regulates and controls the affairs of the Industries. The Industrial Disputes Act secures
industrial peace and harmony by providing machinery and procedure for the investigation and settlement of
industrial disputes by negotiations. All the Business and Industrial laws which has been constituted are for the
protection of rights of employees solving disputed in harmonized way.
Various studies indicate that Indian labour laws are highly protective of labour, and labour markets are
relatively inflexible. These laws apply only to the organized sector. Consequently, these laws have restricted
labour mobility, have led to capital-intensive methods in the organized sector and adversely affected the sector’s
long-run demand for labour. Labour being a subject in the concurrent list, State-level labour regulations are also
an important determinant of industrial performance but still there are some weaknesses of Indian labor
legislation. First, the legislation allows a multiplicity of unions thereby which creates a intense inter-union
rivalry that generates a large number of industrial disputes. Second, the dispute resolution machinery has
increasingly failed to bring about timely agreements and reduce the number of workdays lost due to work
stoppages. Finally, there seems to be a need to encourage parties to use collective bargaining, rather than rely on
third party dispute resolution.

Reference:

 Bare Act On The Industrial Disputes Act, 1947 | 2017 Edition by Labour Law Agency (Author).

 Industrial Relations and Labour Laws Dr. A.M. Sarma (Author) Edition By Himalaya Publication

House.

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