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Industrial Disputes
Industrial Disputes
INDUSTRIAL DISPUTES
Introduction
Industrial relations are invariably a combination of cooperation, collaboration and conflict between labour and management. However efforts should be made to seek the maximum degree of cooperation and collaboration between them so that organizational objective may be achieved efficiently. Some degree of conflict always remains because of the following reasons Both labours as well as management have different orientation and perceptions which generate generally negative image about each other. Both the group claims complete rationality for their demands; because there are no mutually accepted norms to guide their behavior in the pursuit of their objectives. Both groups dont come on the negotiation table with a clean slate.
Industrial Peace
Industrial peace is an ideal situation for industrial growth. It is, therefore desirable to establish cordial labour-management relation. The responsibility of creating industrial peace rests with employers, employees and the government. Industrial peace is possible only when all the three parties take suitable steps for maintaining cordial industrial relation. It means absence of industrial unrest or the existence of harmonious relations between labour and management. The predictions of lasting industrial peace are There should be strong trade unions with democratic norms The employers should have a progressive outlook Both workers and managements should have faith in collective bargaining and other peaceful means of settling disputes Workers participation in management should be encouraged There should be open two way communication between the parties to industrial relations.
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Industrial Dispute
Industrial Dispute means any dispute or difference between employer and employees, or between employer and workmen or between workmen and workmen, which is connected with the employment or non employment or the terms of employment or with the conditions of Labour, or any person Industrial Disputes Act, 1947. Industrial dispute is disagreement and difference between two disputants, namely labour and management. This disagreement could be on any matter concerning them individually or collectively but must be connected with employment or non-employment or with the conditions of labour. The severity of industrial disputes is measured on the basis of man-days lost on account of industrial disputes. For an industry, severity rate may be calculated by the following formula R = L/M 100 Where R = severity rate, L= total number of mandays lost on account of disputes during the year, M=total number of mandays available in the year.
2. Lock-outs:
Lock out is the counter part of strike. It is the weapon available to the employer to close down the factory till the workers agree to resume work on the conditions laid down by the employer. The Industrial Disputes Act of 1947 defined it as the closing of a place of an employment, or the suspension of work or the refusal of an employer to continue to employ ay number of persons employed by him. If it is impossible to meet the demands of the workers, employers may decide to go for lock out.
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3. Gherao:
Gherao means to surround. In this method a group of workers initiate collective action aimed at preventing members of the management from leaving the office. This can happen outside the factory premises too. The main object of gherao is to inflict physical and mental torture to the person being gheraoed and hence this weapon disturbs the industrial peace to a great extent.
2. Political Causes Trade unions in India are controlled by various political parties. In many cases their leadership vests in the hands of persons who are more interested in achieving their political interests rather than the interests of labourers. 3. Personnel Causes Sometimes industrial disputes arise because of personnel problems like dismissal, retrenchment, transfer, promotion, etc. 4. Indiscipline Industrial disputes also take place because of indiscipline and violence on the part of the work force. Lock outs are resorted to by the managements to curb indiscipline and violence.
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IMPACT OF INDUSTRIAL DISPUTES Consequences of industrial disputes are often far reaching as they disturb the economic, social and political life of a country. Industrial disputes create turmoil between the management and the labour and are, in fact, symptoms of poor industrial relations. The adverse effect of industrial disputes may be enumerated as follows: i. Disturbance of Industrial Peace: Tense industrial relation resulting in disputes lead to a fall in the normal tempo of work in the factory. Plant capacity utilization falls below the optimal level; costs go up; absenteeism and labour turnover increase and production suffers both quantitatively as well as qualitatively. Resistance to change: To be successful in business, innovations are a must. Innovation involves changes which can be introduced with the cooperation of employees only in an environment of poor industrial relation employees lose their faith in management and resist all changes necessary for the survival and growth of the enterprises. Intensification of Social Tension: Frustration among employees leads to a reduction in their cordiality towards management and this creates social tension in the industry.
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Collective bargaining
Grievance procedure
Tripartite Bodies
Code of discipline
Standing orders
Conciliation
Court of enquiry
Voluntary arbitration
Adjudication
Conciliation officers
Conciliation board
Labour court
Industrial tribunals
National tribunals
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Collective Bargaining:
Collective Bargaining is a technique by which dispute as to conditions of employment, are resolved amicably, by agreement, rather than by coercion. The dispute is settled peacefully and voluntarily, although reluctantly, between labour and management. In the context of present day egalitarian society, with its fast changing social norms, a concept like collective bargaining is not a capable of a precise definition. The content and Scope collective bargaining also varies from country to country. Broadly Speaking Collective bargaining is a process of bargaining between employers and workers, by which they settle their disputes relating to employment or non-employment, terms of employment or conditions of the labour of the workman, among themselves, on the strength of the sanctions available to each side. Occasionally, such bargaining results in an amicable settlement arrived at voluntarily and peacefully, between the parties. But quite often, the workers and employers have to apply sanctions by resorting to weapons of strike and lockouts, to pressurize one another, which makes both the sides aware of the strength of one another and that finally forces each of them to arrive at a settlement in mutual interest. It is thus the respective strength of the parties which determine the issue, rather than the wordy duals which are largely put on for show, as an element of strength in one party is by the same token, an element of weakness in another. The final outcome of bargaining may also depend upon the art, skill and dexterity of displaying the strength by the representatives of one party to the other.
Negotiation:
Negotiation is one of the principal means of settling labour disputes. However, due to lack of trust between the employers and workmen or their trade unions or inter-rivalry of the trade unions and the employers being in a commanding position, many a time negotiations fail. Through Amendment in the Act by Act 46 of 1982 Chapter II B providing for reference of certain individual disputes to Grievance Settlement Authority has been inserted in the Act. Under this Chapter, section 9 C has made it obligatory for the employers to make provision for Grievance Settlement Authority for settlement of industrial disputes connected with an individual workman employed in an establishment in which fifty or more workmen are employed or have been employed on any day. In the preceding twelve months. This amendment however even inspite of having been made twenty one years back has not seen the light of the day.
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Arbitration:
The resort to arbitration procedure may be compulsory or arbitrary. Compulsory arbitration is the submission of disputes to arbitration without consent or agreement of the parties involved in the dispute and the award given by the arbitrator being binding on the parties to the dispute. On the other hand in case of voluntary arbitration, the dispute can be referred for arbitration only if the parties agree to the same. Section 10 A of the Act, however, provides only for voluntary reference of dispute to arbitration. This system, however, has not been widely practiced so far. One of the main reasons for not gaining popularly of this procedure is lack of arbitrators who are able to command respect and confidence of the parties to
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the dispute. Inter Union rivalry also sometimes makes it difficult in arriving at an agreement on settlement of an arbitrator who is acceptable to all the trade unions in the industry.
Adjudication:
If despite efforts of the conciliation officer , no settlement is arrived at between employer and the workman, The Industrial Dispute a provides for a three tier system of adjudication viz. Labour Courts , Industrial Tribunals and National Tribunals under section, 7 , 7A and under section 7B respectively. Labour Courts have been empowered to decide disputes relating to matters specified in the Second Schedule. These matters are concerned with the rights of workers, such as propriety of legality of an order passed by an employer under the standing orders, application and interpretation of standing orders, discharge or dismissal of workman including reinstatement of grant of relief to workman wrongfully discharged or dismissed, withdrawal of any customary concession or privilege and illegality or otherwise of a strike or lockout. The industrial tribunal is empowered to adjudicate on matters specified in both the Second and Third schedule i.e. both rights and interest disputes. The jurisdiction of the Industrial Tribunal is wider that the labour courts.
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