Industrial Relations,

Trade Unions & Social Dialogue

Diploma in Labour Law & Industrial Relations
NATIONAL INSTITUTE OF LABOUR STUDIES,
SRI LANKA.
LECTURE BY
SANJAYA WILSON JAYASEKERA, LL.B, LL.M,
ATTORNEY-AT-LAW
INDUSTRIAL RELATIONS
What is industrial relations?
• V.B. Singh: “Industrial relations are an integral aspect of social relations arising out of
employer- employee interaction in modern industries, which are regulated by the State in
varying degrees, in conjunction with organised social forces and influenced by
prevailing, institutions. This involves a study of the State, the legal system, workers’ and
employers’ organisations on the institutional level; and that of patterns of industrial
organisation (including management), capital structure (including technology),
compensation of labour force and the forces of market on the economic level.”
• Ordway, Tead and Metcalf: “Industrial relation is the composite result of the attitudes
and approaches of employers and employees towards each other with regard to planning,
supervision, direction and coordination of the activities of an organisation with a
minimum of human efforts and frictions with an animating spirit of cooperation and with
proper regard for the genuine well-being of all members of that organisation.”
What is IR?

“Industrial relations may be defined

as the relations and interactions in
the industry particularly between
the labour and management as a
result of their composite attitudes
and approaches in regard to the
management of the affairs of the
industry, for the betterment of not
only the management and the
workers but also of the industry and
the economy as a whole”
 Objectives of IR
The objectives of industrial relations are, inter alia, as follows
• (i) To safeguard the interest of labour and management by securing high level of mutual understanding and
goodwill between all sections in the industry which are associated with the process of production.
• (ii) To raise productivity to a higher level by arresting the tendency of higher labour turnover and frequent
absenteeism.
• (iii) To avoid industrial conflicts and develop harmonious relations between labour and management for the
industrial progress in a country.
• (iv) To establish and maintain Industrial Democracy, based on labour partnership, not only by sharing the
gains of the organisation, but also by associating the labour in the process of decision making so that
individual personality is fully recognized and developed into a civilized citizen of the country.
• (v) To bridge about government control over such units which are running at losses or where production
has to be regulated in the public interest.
• (vi) To bring down strikes, lockouts, gheraos and other pressure tactics by providing better wages and
improved working conditions and fringe benefits to the workers.
• (vii) To bring the gap, by the state, between the imbalanced, disordered and maladjusted social order (which
has been the result of industrial development) and the need for reshaping the complex social relationships
adaptable to the technological advances by controlling and disciplining its members, and adjusting their
conflicting interests. (economicsdiscussion.net)
INDUSTRIAL PEACE AND CONFLICTS

 The causes of Industrial Disputes/Conflicts :

• uresolved differences of opinion/interests

• anti-trade union action and unfair labour practices
INDUSTRIAL PEACE
• Industrial peace is founded on a content labour force, enjoying a decent work
environment, with sound labour relations geared to productive employment.

Why is industrial peace necessary and why it is so important?

Industrial peace is the goal of best IR, which leads to
(I) Labour Productivity in the industries;
(II) Labour Efficiency;
(III)Stability of the market/Macroeconomic health.

• This requires highest level of human resource management and improving

dialogue and cooperation between workers and managers in workplaces.
Breach of Industrial Peace
• Consequences: Strikes, lock-outs, Destruction of property and life.
• Extreme circumstances:
Eg: The conflict between administration and workers of Maruti Suzuki’s
Manesar, Haryana car assembly plant in northern India in July 2012.
Failure to find a satisfactory solutions to the demands of workers led to
witch-hunt of employees on the purported allegations of complicity in
the killing of company’s Human Resources Manager Avineesh Dev. 13
workers including Union leaders were punished with life imprisonment
by Court.
Industrial Disputes/Conflicts
• Disputes regarding the hours of work, night-time work, allowances,
social benefits, wages, basic amenities, gender discrimination, decent
working conditions
• Eg. Dispute regarding tripartite deal on pro-rate wages during COVID-
19 entered into between Employers Federation of Ceylon (EFC) and
few Trade Unions to pro-rate wages based on varied levels of
deployment of staff. “The proposed wage cut amounts to a deep 50%
reduction in contrast to the 30-40% demanded from executives
employed by EFC companies. These reductions are not only iniquitous
but have no support in law – they are blatantly unlawful,” says Ceylon
Federation of Labour (CFL) .
IR APPROACHES
• Approaches are problem oriented or remedial and are analytical Categorizations.

1. Unitary Approach
2. Pluralistic Approach – Kerr, Flanders, Fox
3. Marxist Approach – Karl Marx
4. Psychological Apprach
5. Systems Approach - Prof. John T. Dunlop
6. Oxford Approach – Flanders considers every business enterprise as a social
system of production and distribution, which has a structured pattern of
relationships.
7. Industrial Sociology Approach - Margerison
IR APPROACHES
8. Action Theory Approach - Henry Sanders
9. Social Action Approach – Max Weber
10. Human Relations Approach - founded by Elton Mayo and later propagated by Roethlisberger,
Whitehead, W. F. Whyte and Homans offers a coherent view of the nature of industrial conflict and harmony.
11.Gandhian Approach - M K Gandhi advocated “nonviolent communism”
12. Human Resource Management Approach

• The approaches to IR are Problem or Solution oriented and based on how production
relationships are viewed according to different analytical approaches. The first three are
popular approaches.
• Some theoreticians relate industrial relations to class conflict, others perceive it in terms of
mutual co-operation, and still others understand it in terms of competing interests of
various groups. 
Unitary Approach
• The unitary approach is based on the strong argument that there is only one source of authority i.e.,
the management, which owns and controls the dynamics of decision making in issues relating to
negotiation and bargaining. Under unitary approach, industrial relations are grounded in mutual co-
operation, individual treatment, team-work, and shared goals.
• Work place conflict is seen as a temporary aberration, resulting from poor management, from
employees who do not mix well with the organizational culture. Unions co-operate with the
management and the management’s right to manage is accepted because there is no ‘we-they’ feeling.
• The underlying assumption is that everyone benefits when the focus is on common interest and
promotion of harmony. Conflict in the form of strikes is not only regarded as unnecessary but
destructive.
• Advocates of the unitary approach emphasize on a reactive industrial relations strategy. They seek
direct negotiations with employees. Participation of government, tribunals and unions is not sought or
is seen as being necessary for achieving harmonious employee relations.
• The unitary approach is being criticized as a tool for seducing employees away from unionism and
socialism. It is also criticized as manipulative and exploitative. (economicsdiscussion.net)
 Pluralistic Approach
• The pluralistic approach totally departs from the unitary approach and assumes that the organization is
composed of individuals who form distinct groups with their own set of aims, objectives, leadership styles, and
value propositions.
• The organization is multi structured and there will be continued tension due to conflicts within and between the
various sectional groups. In contrast to the unitary approach, the pluralistic approach considers conflict between
management and employees as rational and inevitable.
• The pluralistic approach perceives:
1. Organizations as coalitions of competing interests, where the role of the management is to mediate amongst
the different interest groups.
2. Trade unions as legitimate representatives of employee interests.
3. Stability in industrial relations as the product of concessions and compromises between management and
unions.
• Legitimacy of the management’s authority is not automatically accepted. Conflict between the management and
workers is understood as inevitable and, in fact, is viewed as conducive for innovation and growth. Employees
join unions to protect their interests and influence decision-making by the management.
• Unions, thus, balance the power between the management and employees. In the pluralistic approach, therefore, a
strong union is not only desirable but necessary. Similarly, society’s interests are protected by state intervention
through legislation and industrial tribunals which provide orderly process for regulation and resolution of
conflict.
Marxist Approach
• Marxist approach is based on the proposition that the economic activities of production,
manufacturing, and distribution are majorly governed by the objective of profit. Marxists,
like the pluralists, regard conflict between employers and employees as inevitable.
• However, pluralists believe that the conflict is inevitable in all organizations. Marxists see
it as a product of the capitalist society. Adversarial relations in the workplace are simple
one aspect of class conflict. The Marxist approach, thus, focuses on the type of society in
which an organization functions.
• Conflict arises not only because of competing interests within the organization, but
because of the division within society between those who won or manage the means of
production and those who have only their labour to offer. Industrial conflict is, thus, seen
as being synonymous with political and social unrest.
• The Marxist approach argues that for social change to take place, class conflict is
required. Social change initiates strong reactions from the worker class and bridges the
gap between the economically settled owners of factors of production and the
economically dependent worker class. This approach views pluralism as unreal and
considers industrial disputes and class conflicts as inevitable 
Marxist Approach

• Trade unions are seen both as labour reaction to exploitation by capital, as well as a weapon to
bring about a revolutionary social change. Concerns with wage-related disputes are secondary.
Trade unions focus on improving the position of workers within the capitalist system and not
to overthrow. For the Marxists, all strikes are political and should be directed towards
overthrowing of profit-driven class system and Labour exploitation, not industries per se.
• Marxists regard state intervention via legislation and the creation of industrial tribunals as
supporting management’s interest rather than ensuring a balance between the competing
groups. This view is in contrast to the belief of the pluralists who argue that state intervention
is necessary to protect the overall interest of society.
• To Marxists, the pluralist approach is supportive of capitalism, the unitary approach anathema.
Consequently, enterprise bargaining, employee participation, co­operative work culture, and
the like which help usher in cordial industrial relations are not acceptable to Marxists.
• Such initiatives are regarded as nothing more than sophisticated management techniques
designed to reinforce management control and the continuation of the capitalist system.
Systems Approach
• Prof. John T. Dunlop – Systems Approach in his book “Industrial Relations Systems”
1958:
• Dunlop defines an industrial relations system in the following way – An industrial
relations system at any one time in its development is regarded as comprised of certain
actors, certain contexts, an ideology, which binds the industrial relations system together,
and a body of rules created to govern the actors at the workplace and work community.
There are three sets of independent variables – the ‘actors’, the ‘contexts’ and the
‘ideology’ of the system.
• The actors are – (a) hierarchy of managers and their representatives in supervision, (b) a
hierarchy of workers (non-managerial) and any spokesmen, and (c) specialised
governmental agencies (and specialised private agencies created by the first two actors)
concerned with workers, enterprises, and their relationships.
• The contexts are the environment in which the actors are interacting with each other at
various levels and the ideology is their philosophy of industrial relations.
(economicsdiscussion.net)
Industrial Sociology Approach

• The core of industrial relations is the nature and development of the conflict itself.
Margerison argued that conflict is the basic concept that should form the basis of the
study of industrial relations. The author criticised the prevalent approach to industrial
relations, which was more concerned with studying the resolution of industrial conflict
than its generation; with the consequences of industrial disputes than on their causes.
• According to this school of thought, there are two major conceptual levels of industrial
relations. One is the intra plant level where situational factors, such as job content, work
task and technology, and interaction factors produce three types of conflict – distributive,
structural, and human relations. These conflicts are being resolved through collective
bargaining, structural analysis of the socio-technical systems and man-management
analysis respectively.
• The second level is outside the firm and, in the main, concerns with the conflict not
resolved at the intra-organisational level. However, this approach rejects the special
emphasis given to rule determination by the “Systems and Oxford models”. In its place,
it suggests a method of inquiry, which attempts to develop sociological models of
conflicts. (economicsdiscussion.net)
Action Theory Approach
• Like the systems model, the action theory approach takes the collective
regulation of industrial labour as its focal point. The actors operate
within a framework, which can at best be described as a coalition
relationship. The actors, it is claimed, agree in principle to cooperate in
the resolution of the conflict, their cooperation taking the form of
bargaining. Thus, the action theory analysis of industrial relations
focuses primarily on bargaining as a mechanism for the resolution of
conflicts.
• Whereas, the systems model of industrial relations constitutes a more or
less comprehensive approach, it is hardly possible to speak of one
uniform action theory concept. (Economicsdiscussion.net)
CORE LABOUR PRINCIPLES
ILO Declaration on Fundamental Principles and Rights at Work, adopted in June
1998, highlights a set of core labour principles endorsed by the international
community.
The Declaration covers 4 main areas for the establishment of a social “floor” in the
world of work:
● freedom of association and the effective recognition of the right to collective
bargaining;
● the elimination of all forms of forced or compulsory labour;
● the effective abolition of child labour;
● the elimination of discrimination in respect of employment and occupation(anti-
discrimination)
INTERNATIONAL LABOUR STANDARDS

Professor Paul Whitehead of Penn State University identifies four ways

of laying down International Labour standards by International Labour
Organization(ILO)
1. Conventions -binding upon nations ratified (189 conventions, but
82 Conventions recognized as uptodate )
2. Protocols – amendments/additions to Conventions (6)
3. Recommendations - not binding (203, but 87 recognized as
uptodate)
4. Declarations - not binding
ILO LABOUR STANDARDS

Characteristics of Labour Standards:

• Universality
• Flexibility
• Tripartism
• Minimum level.
TRADE UNION RIGHTS – International Law

Freedom of Association and Protection of the Right to Organise

Convention, 1948 (No. 87) – SL ratified in 1995
 Right to Organise and Collective Bargaining Convention,1949
(No.98) SL ratified in 1972
Two other Conventions relevant:
 Tripartite Consultation (International Labour Standards) Convention,
1976 (No. 144)
 Collective Bargaining Convention, 1981 (No.154)
Freedom of Association and Protection of the Right to
Organise Convention, 1948 (No. 87)
• Article 2: Workers and employers, without distinction whatsoever, shall have the right to establish
and, subject only to the rules of the organisation concerned, to join organisations of their own
choosing without previous authorisation.
• Article 3
1. Workers' and employers' organisations shall have the right to draw up their constitutions and
rules, to elect their representatives in full freedom, to organise their administration and activities
and to formulate their programmes.
2. 2. The public authorities shall refrain from any interference which would restrict this right or
impede the lawful exercise thereof.
• Article 4Workers' and employers' organisations shall not be liable to be dissolved or suspended by
administrative authority.
• Article 5: Workers' and employers' organisations shall have the right to establish and join
federations and confederations and any such organisation, federation or confederation shall have
the right to affiliate with international organisations of workers and employers.
Right to Organise and Collective Bargaining
Convention,1949 (No.98) SL ratified in 1972
• Article 1
(i)Workers shall enjoy adequate protection against acts of anti-union
discrimination in respect of their employment.
(ii)Such protection shall apply more particularly in respect of acts
calculated to-(a) make the employment of a worker subject to the condition
that he shall not join a union or shall relinquish trade union membership;(b)
cause the dismissal of or otherwise prejudice a worker by reason of union
membership or because of participation in union activities outside working
hours or, with the consent of the employer, within working hours.
• Article 2, 3,4,
Tripartite Consultation (International Labour Standards)
Convention, 1976 (No. 144)
• The Convention IS NOT concerned as such with promoting a national
tripartite dialogue on labour and social matters
• The ILO instrument doing that is the Consultation (Industrial and
National Levels) Recommendation, 1960 (No. 113)
• The Convention DOES NOT require the setting-up of tripartite bodies
• What the Convention requires is that the most representative
organizations of workers and employers be consulted on all measures
taken by the Government in relation to International Labour Standards
Collective Bargaining Convention, 1981 (No.154)
• Article 1
(i) This Convention applies to all branches of economic activity.
(ii) The extent to which the guarantees provided for in this Convention apply to the
armed forces and the police may be determined by national laws or regulations or
national practice.
(iii) As regards the public service, special modalities of application of this Convention
may be fixed by national laws or regulations or national practice.
• Article 2: For the purpose of this Convention the term collective bargaining extends to
all negotiations which take place between an employer, a group of employers or one or
more employers' organisations, on the one hand, and one or more workers'
organisations, on the other, for--(a) determining working conditions and terms of
employment; and/or(b) regulating relations between employers and workers; and/or(c)
regulating relations between employers or their organisations and a workers'
organisation or workers' organisations.
• State parties to promote collective bargaining –Part III
SL: TRADE UNION DEFINITION

Trade union means any association or combination of workmen or employers,

whether temporary or permanent, having among its objects one or more of the
following objects:-

(a) the regulation of relations between workmen and employers, or between

workmen and workmen or between employers and employers; or
(b) the imposing of restrictive conditions on the conduct of any trade or business; or
(c) the representation of either workmen or employers in trade disputes; or
(d) the promotion or organization or financing of strikes or lock-outs in any trade or
industry or the provision of pay or other benefits for its members during a strike or
lock-out, and includes any federation of two or more trade unions.“
 Trade Unions Ordinance No. 14 of 1935, (S. 2)
 International Evolution of Trade Unionism
• Trade Unions developed as organizations of workers to win industrial demands.
• The origins of the labor movement lay in the formative years of the American nation, when a free wage-
labor market emerged in the artisan trades late in the colonial period. The earliest recorded strike occurred in
1768 when New York journeymen tailors protested a wage reduction. The formation of the Federal Society
of Journeymen Cordwainers (shoemakers) in Philadelphia in 1794 marks the beginning of sustained trade
union organization among American workers. 
• With the creation of International Typographical Union in 1852, national unions began bringing together
local unions of the same trade from across the United States and Canada (hence the frequent union
designation “international”).
• The early labor movement was, inspired by more than the immediate job interest of its craft members. It
harbored a conception of just society, deriving from the Ricardian labor theory of value and from the
republican ideals of the American Revolution, which fostered social equality. The transforming economic
changes of industrial capitalism ran counter to labor’s vision. The result, as early labor leaders saw it, was to
raise up “two distinct classes, the rich and the poor.” Beginning with the workingmen’s parties of the
1830s, the advocates of equal rights mounted a series of reform efforts that spanned the nineteenth century.
Most notable were the National Labor Union, launched in 1866, and the Knights of Labor, which reached its
zenith in the mid-1880s.  (history.com)
International Evolution of Trade Unionism
• the British movement favoured political activism, which led to the formation of
the Labour Party in 1906, while American unions pursued collective bargaining as
a means of winning economic gains for their workers.
• British unionism received its legal foundation in the Trade-Union Act of 1871. 
• In 1866 the formation of the National Labor Union (NLU) represented an early
attempt to create a federation of American unions. 
• The founding of the American Federation of Labor (AFL) by several unions of
skilled workers in 1886 marked the beginning of a continuous large-scale labour
movement in the United States. (Britannica.com)
• In Janus v. American Federation of State, County, and Municipal Employees
 (2018), the U.S. Supreme Court held that public employees cannot be required to
pay service fees to a union to support its collective-bargaining activities on their
behalf.
Evolution of Trade Unionism in Sri Lanka
• Read history of left political movement leading workers:
1. The Rise of the Labour Movement in Ceylon, Kumari Jayawardena (Sajiva
Books)
2. Tomorrow Is Ours: The Trotskyist Movement in India and Ceylon, 1935-48,
Charles Wesley Ervin (Social Scientists Association)
• A.E.Gunasinha organised Sri Lanka's first trade union, the "Ceylon Labour
Union" in 1922. Bala Thampoe suceeded in the name Ceylon Merchantile Union
• The Employers’ Federation of Ceylon (EFC) was established in 1929 as an
organization of employers dealing with labour and social issues in Sri Lanka. 
• Trade Unions Act provided that seven employees can institute a Trade Union.
• In Sri Lanka, there are 2,074 registered trade unions, of which 54.5% are in the
public sector, 27.5% in public corporations and 18% in the private sector. The
number of members covered by the trade unions amount to 9.5 % of the total
workforce of Sri Lanka. (ILO)
FREEDOM OF ASSOCIATION AND THE EFFECTIVE
RECOGNITION OF THE RIGHT TO COLLECTIVE
BARGAINING

workers and all employers have the right to freely form and join
groups for the support and advancement of their occupational
interests: A basic human right.
This right is closely related to freedom of expression
Freedom of association means that workers and employers can set up,
join and run their own organizations without interference from the
State or one another.
 Workers’ and employers’ organizations can independently determine
how they wish to best promote and defend their occupational interests.
SRI LANKA CONSTITUTIONAL RIGHTS

Freedom of Association and Trade is Constitutionally recognized in Sri Lanka, as in

many other countries:
• Article 14(1)(c): “Every citizen is entitled to the freedom of Association.” This
right may be restricted in the interest of racial and religious harmony or national
economy.
• Article 14(1)(d): “Every citizen is entitled to the freedom to form and join a trade
union”.
• Article 14(1)(g): “Every citizen is entitled to the freedom to engage by himself or
in association with others in any lawful occupation, profession, trade, business or
enterprise.” This may be restricted in the interests of national economy and other
requirements.
IR: SRI LANKA STATUTORY LAWS

• Employees' Councils Act, 1979 (No. 32 of 1979).

• Employees’ Councils Rules, 1979
• Termination of Employment of Workmen (Special Provisions) Act (No. 45 of 1971).
• Trade Union Representatives (Entry into Estates) Act (No. 25 of 1970).
• Industrial Disputes Regulations, 1958.
• Shop and Office Employees (Regulation of Employment and Remuneration)
Regulations, 1954 .
• Industrial Disputes Act (No. 43 of 1950)
• Wages Boards Ordinance (No. 27 of 1941)
• Trade Unions Regulations, 1935.
• Trade Unions Ordinance (No. 14 of 1935)
Collective Bargaining definitions
• Collective bargaining is defined in the Collective Bargaining Convention,
1981 (No. 154), as “all negotiations which take place between an
employer, a group of employers or one or more employers’ organisations,
on the one hand, and one or more workers’ organisations, on the other, for:
(a) determining working conditions and terms of employment; and/or (b)
regulating relations between employers and workers; and/or (c) regulating
relations between employers or their organisations and a workers’
organisation or workers’ organisations.”
• The collective bargaining process also covers the phase before actual
negotiations – information sharing, consultation, joint assessments
• No definition in Sri Lankan statutes. But defines collective agreement.
Collective Agreement in SL law
In this Act, “collective agreement” means an agreement -
(a) which is between -
(i) any employer or employers, and
(ii) any workmen or any trade union or trade unions consisting of
workmen, and
(b) which relates to the terms and conditions of employment of any
workman, or to the privileges, rights or duties of any employer or
employers or any workmen or any trade union or trade unions consisting
of workmen, or to the manner of settlement of any industrial dispute.
 Industrial Disputes Act (No. 43 of 1950) (Cap. 131). (s. 5)
Collective Agreements In SL
• 32A(g)of the Industrial Disputes Act : "No employer shall...
(g) refuse to bargain with a trade union which has in its membership not less than
40% of the workmen on whose behalf such trade union seeks to bargain.
(Representativity)
• So, majority trade unions are granted the right to bargain with employers, which
in turn the employer cannot refuse. However, there is no general Representativity
requirement for a Trade Union to conclude a CA.
• The terms of a collective agreement shall be implied terms in the contract of
employment between the employers and workmen bound by the agreement.
[S.8(1)]
National Institutional Framework for IR via
Tripartite Social Dialogue
• Main tripartite (or tripartite plus) social dialogue institution(s) that serve as the
umbrella institution(s) of general nature at national level in Sri Lanka is
National Labour Advisory Council (NLAC), an advisory body operating
under the Ministry of Labour
• Formation: The NLAC was first introduced in 1989. By the 1990s, the NLAC
was dysfunctional,but it was then re-established in 2009 as a permanent body.
• Purpose: The NLAC is the national tripartite consultative mechanism
established to provide for consultation and co-operation between the
government and the organizations of workers and employers at the national
level on matters relating to social and labour policies and international labour
standards.
National Framework for IR
The objectives of the NLAC:

• To promote social dialogue between the government and the organizations of

workers and employers on social and labour issues.
• To provide a forum for the government to seek the views, advice and assistance of
organizations of workers and employers on matters relating to social and labour
policies, labour legislation and matters concerning the ratification, application and
implementation of international labour standards.
• To promote mutual understanding and good relations and foster closer co-
operation between the government and organizations of workers and employers
with a view to developing the economy, improving conditions of work and raising
standards of living.
Functions of the NLAC are:

• Consultation and co-operation between the government and organizations of workers and employers on
such matters such as:
- Establishment and functioning of national bodies
- Formulation and implementation of laws and regulations affecting the interests of workers and employers
• Consideration of matters concerning replies to the International Labour Organization on ratification and
implementation of labour standards

Composition and Function:

• The NLAC, chaired by the Minister of Labour, meets monthly and members are able to express their
views on the items of the agenda and put forward proposals for the future agenda. Meetings of the NLAC
convene regularly and frequently as may be determined by the minister, at least once a month.
• There may be appointed tripartite Industrial Committees and Ad hoc Committees to discuss special issues
that need to be studies and reported to the NLAC, with experts' assistance whenever necessary.
Consultation is being maintained through written communications with most Representative Workers'
Organisations and Employers' Organisations.
Social Dialogue and Workplace Corporation Unit
Social Dialogue & Work Place Coperation Unit of the Department of Labour
This is established under the restructuring programme of the industrial relations division. 
With a view to :-
a.) Introducing & implementation of policies & strategies to encourage Social Dialogue, 
Collective Bargaining & reaching collective agreements at Work Place (Enterprise) level.
b.) Planning & Implementation of training programmes, Workshops & Seminars  on
promotions  Social Dialogue And Work Place Coperation.
c.) Coordinating with trade unions & employers in promoting Social Dialogue &
 Collective Agreements.
d.) Working as a facilitator in Social Dialogue & reaching Collective Agreements.
e.) Minimize  Industrial Disputes.
• The Unit functions in district level: District Labour Advisory Council
Employees' Councils
• Bodies that promote information sharing and consultation between workers and employers at the
workplace.
• Employee’s Councils established under Employees' Councils Act, No. 32 of 1979
• "The objects of the Council shall be -
(a) the promotion and maintenance of effective participation of employees in the affairs of the specified
undertaking;
(b) the securing of the mutual co-operation of the employees and employer in achieving industrial peace
and greater efficiency and productivity in the specified undertaking and with regard to matters
connected therewith; (Section 34)
• Information sharing : "The Council shall be entitled to receive information from the employer and
advice from any person employed in the specified undertaking. (Section 37)
• The Employees' Council Act is only applicable to 'state undertakings' that belong to the following
categories: Mining and Quarrying, Manufacturing, Construction, Electricity, Gas, Water and Sanitary
Services; Transport, Storage and Communication; Wholesale and Retail Trade, Banking and Insurance
and Services. (Employees' Councils Rules, 1979)
• The Council shall have the right of consultation with the employer in the matters set out in Section 45
Employee’s Councils
Dispute resolution mechanisms for disputes arising from the interpretation or
implementation of the outcomes of information sharing, consultation, or joint
decision-making
• Section: 38. (3) The employer and the Council shall discuss every disputed matter
including any alleged contravention of the provisions of this Act, with a view to
settlement.
(4) Any settlement of a disputed matter between the employer and the Council shall be
binding on the employer, the Council and the employees in the specified undertaking.
• S.39. (1) Where a dispute is not settled between the Employees’ Council and the
employer, the employer or the Employees’ Council may refer the dispute to the
Commissioner for settlement.
(2) The employer, the Council and any trade union acting on behalf of its member, shall
be entitled to participate in proceedings before the Commissioner of Labour.
• S.40. A settlement before the Commissioner shall be binding on the employer, the
Council and the employees in the specified undertaking.
SOCIAL DIALOGUE (SD)
• Social dialogue is defined by the ILO to include all types of
negotiation, consultation or simply exchange of information between,
or among, representatives of governments, employers and workers, on
issues of common interest relating to economic and social policy.
• Social dialogue is regarded as a problem-solving mechanism and as a
means to achieve social equity, economic efficiency and democratic
participation. It is important for protecting labour rights, facilitating
wage determination, improving working conditions and promoting
sustainable enterprises. ILC 107th Session Report VI, 2018.
ILO AND SOCIAL DIALOGUE
• Social dialogue is the ILO’s bestmechanism in promoting better living and
working conditions as well as social justice. It is an instrument, a tool of good
governance in various areas and its relevance is not just related to the process of
globalization but in general to any effort to make the economy more performing
and more competitive and to make society in general more stable and more
equitable.
• Social dialogue based on freedom of association and the right to collective
bargaining takes into account each country’s cultural, historical, economic and
political context. There is no “one size fits all” model of social dialogue that can
be readily exported from one country to another. Adapting social dialogue to the
national situation is key to ensuring local ownership of the process.
ILO AND SOCIAL DIALOGUE
• The Declaration of Philadelphia encapsulates the ILO's commitment to
participation with the statement that “the war against want requires to
be carried on with unrelenting vigour within each nation, and by
continuous and concerted international effort in which the
representatives of workers and employers, enjoying equal status with
those of governments, join with them in free discussion and democratic
decision with a view to promotion of the common welfare”.
• ILO encourage its constituents to strengthen Social Dialogue by
dealing with various labour problems and being present in the most
accurate and crucial issues.
SOCIAL DIALOGUE AND DWA
• Tripartism and social dialogue are integral components of the Decent
Work Agenda of the ILO and essential channels for achieving it. The
Resolution concerning tripartism and social dialogue, adopted by the
90th Session of the International Labour Conference in 2002, invited
the governments of member States to ensure that the necessary
preconditions exist for social dialogue, including respect for the
fundamental principles and the right to freedom of association and
collective bargaining, a sound industrial relations environment, respect
for the role of social partners, achieving employment goals and
improving social protection.
Enabling conditions for Social Dialogue - ILO
1. Strong, independent representative workers' and employers’
organisations with the technical capacity and access to the relevant
information to participate in social dialogue.
2. Political will and commitment to engage in good faith in social
dialogue on the part of all the parties.
3. Respect for the fundamental rights of freedom of association and
collective bargaining (as enshrined in ILOconventions n.87 and
n.98).
4. Appropriate institutional support
5. The representatives of thesocial partners should be recognized as
equal partners by each other.
SOCIAL DIALOGUE
• Social dialogue” is a term widely used in Europe to denote all instances of
negotiation, joint working or even simple exchange of views between
employers’ and workers’ representatives. It is a wider and more inclusive term
than “industrial relations” or “collective bargaining.” The latter of course
denotes the specific collective negotiation between employers and workers on
remuneration and working conditions, for a given sector, company or
workplace, resulting in a bargained agreement. 
• Social dialogue is not merely conversation but a discussion seeking consensus
and harmony among social partners; a discussion aimed at fulfilling a certain
objective or to achieve a goal; a dialogue that brings mutual understanding and
harmony, as the final outcome ends in a solution and makes the parties happy.
Different forms of SD

• Social dialogue takes many different forms.

• It can exist as a tripartite process, with the government as an official party to the
dialogue or it may consist of bipartite relations only between labour and
management (or trade unions and employers' organizations), with or without
indirect government involvement.
• Concerted search for a consensus can be informal or institutionalized, and often it
is a combination of the two. It can take place at the national, regional or local level.
It can be inter-sectoral, sectoral or at enterprise level. Social dialogue institutions
are often defined by their composition. They can be bipartite or tripartite.
• The tripartite actors are the representatives of governments, employers’ and
workers’ organizations.
TRIPARTISM and SD
• Tripartism is defined in the ILO Thesaurus as “the interaction of
government, employers and workers (through their representatives) as
equal and independent partners to seek solutions to issues of common
concern”. It refers to institutions, mechanisms and processes for
consultation, negotiation and joint decision-making, depending on
arrangements agreed between the parties involved. These arrangements
may be ad hoc or institutionalized. Peak-level social dialogue involving
governments and nationwide organizations of employers and workers
can contribute to the formulation and adoption of social, economic and
labour policies and can be applied to any decision-making that affects
the workplace or the interests of employers and workers.
BIPARTISM
Bipartite social dialogue involves two parties – employers and/or
employers’ organizations, and workers’ organizations – that agree to
exchange information, consult each other or negotiate together. It is
often practised through collective bargaining or workplace cooperation.
Usual activities of Social Dialogue
• NEGOTIATION: This is integral – and one of the most widespread – forms
of social dialogue. Parties can engage in collective bargaining at the
enterprise, sectoral, regional, national and even multinational level.
• INFORMATION-SHARING: This is one of the most basic and indispensable
elements for effective social dialogue. In itself, it implies no real discussion
or action on the issues but it is nevertheless an essential part of those
processes by which dialogue and decisions take place.
• CONSULTATION: This requires an engagement by the parties through an
exchange of views which in turn can lead to more in-depth dialogue. The
parties participating in tripartite or bipartite bodies can engage in negotiations
and the conclusion of formal agreements. Some of them are only consultative
and information bodies, others are empowered to reach agreements that are
binding on the parties (e.g. Governments, workers and employers).
Role of Workers’Organizations in SD
• Workers and their organizations play a vital role in social dialogue. Freedom of association and the
effective recognition of the right to collective bargaining are the two fundamental principles.
• These rights at work are essential to the democratic process.
• Social dialogue is a valuable means of protecting and promoting the interests of workers by
extending democracy and human dignity to the workplace. It is also a well-tested instrument for
managing social and economic change while maintaining consensus and stability in society.
• Through social dialogue and collective bargaining, workers and their organizations improve their
working conditions and wages, and, in many instances, have successfully expanded the scope of
collective bargaining to include questions of workers protection such as safety and health at the
workplace and social security schemes, workers’ education and training, and even the participation
of workers in the management of enterprises.
• rade union organizations at local, national, regional and international levels are the major means
by which workers participate in social dialogue and as such serve as indispensable instruments for
working people to improve their quality of life and to promote equitable and sustainable
development of the society as a whole
Role of Employers In SD
• Employers' organizations play an important role in helping society to set the
conditions necessary to achieve employment and living standards objectives.
• Employers’ organizations help to enhance enterprise success by influencing
the environment in which they do business, and by providing services that
improve their individual performance.
• By providing enterprises with information, advice and training, employer’s
organizations contribute to their operational efficiency.
• As partners in tripartism and social dialogue, employers’ organizations have
a major contribution to make in building the relationships and understanding
that must underpin the Decent Work Agenda.
Role of governments in SD
Two roles:
1. Promotion of social dialogue: labour administrations are made
responsible for promoting consultation with the social partners and
for taking appropriate measures to ensure that such consultation is
regular and effective.
2. Furnishing instruments to encourage dialogue between the social
partners. It plays a variety of roles, including the one of employer in
the public sector. Labour administration must take part in tripartism
as a partner, in order to encourage exchanges, carry forward the
discussion and even to find support for its policies and actions.
ILO’s Role in SD

“Strengthen tripartism and

social dialogue…”
1. INFOCUS PROGRAMME ON SOCIAL
DIALOGUE, LABOUR LAW AND
LABOUR ADMINISTRATION •
IFP/DIALOGUE
2. BUREAU FOR WORKERS’
ACTIVITIES (ACTRAV)
3. BUREAU FOR EMPLOYERS’
ACTIVITIES (ACT/EMP)
4. SECTORAL ACTIVITIES
DEPARTMENT(Sector)
International Framework for IR
• Managed and standard laid by ILO
• ILO is well placed to play a leading role in fostering the dialogue, partnerships and participatory
approaches to decision making.
• It helps its constituents by:
1. Promoting International labour standards concerning social dialogue.
2. Promoting gender equality in each of its programmes and activities.
3. Creating social dialogue indicators developed as part of the overall decent work indicators.
4. Contributing to modernize labour legislation, strengthening labour ministries.
5. By establishing a plan of action to operationalize the Resolution concerning social dialogue and
tripartism adopted at the 90th Session of the International Labour Conference.
6. By organizing tripartite and bi-partite meetings in several technical areas.
OTHER FORMS OF DISPUTE RESOLUTION

• Collective Bargaining is part of Social Dialogue.

• Where collective bargaining is unsupportive, following options are
available:
1. Concilliation
2. Mediation
3. Arbitration
4. Litigation (preferably avoided)
Other Dispute Resolution Mechanisms in SL
• Voluntary mediation / conciliation : Industrial Disputes Act (IDA) No.
43 of 1950 [S. 3(1)]
• Voluntary arbitration: Industrial Disputes Act No. 43 of 1950
[S.3(1)3d]
• Sections 3, 4, 19, 20 of IDA
OPEN MARKET GLOBALIZATION AND CHALLENGES
• There is a declining trend in unionization in Sri Lanka as it is with other countries
of the region. The main contributory factor is recognized to be the loss of
bargaining power of trade unions.
• Growing unpopularity of Trade Unions among rank-and-file workers
• Market Capitalism, Free Trade, Protectionism, Globalisation of Production and
Labour.
• ILO recognizes that social dialogue and the practice of tripartism is essential in
effectively addressing the challenges of globalization and the new economic and
social realities of a rapidly changing world of work. Collective bargaining is under
threat, owing to the decline in the representativity of workers' and employers'
organizations... The high prevalence of the informal economy, changing patterns
of employment, a shift to atypical employment, and difficulties in organizing
workers in precarious sectors, all point to the need for innovation. 
Thank You
Contact Lecturer: sanjayawilson@gmail.com