INDUSTRIAL DISPUTE ACT 1947

Industrial dispute means 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 terms of employment or with the conditions of labour of any person. But in reality, dispute is

understood as the conflict employees and employers

between

PURPOSE OF THE ACT

The Industrial Disputes Act, 1947 came into existence in April 1947. It was enacted to make provisions for investigation and settlement of industrial disputes . for providing certain safeguards to the workers in case of lay off, retrenchment, wrong full dismissals .

INDUSTRIAL CONFLICT

Conflict is inherent in industrial relations today. Interest of labor and management usually opposes The prevailing unrest , work stoppages resulting from strikes or lock-outs , slowing down of production etc.

When issues of conflict are submitted to the management for negotiation, they take the form of industrial disputes.

Special causes of industrial conflict may be treated as causes of industrial disputes.;

Essentials of an Industrial Dispute?

It must affect a large group of workmen

It should invariably be taken up by the industry union or by an appreciable number of workmen There must be a concerted demand by the workers for redress and the grievance becomes such that it turns from individual complaint to a general complaint If the dispute was in the beginning an individual dispute and continued to be such till referred for adjudication, it can not be converted into industrial dispute by later support from other workmen

Essentials of an Industrial Dispute?

A workman can raise a dispute directly before a Conciliation Officer in the case of discharge, dismissal, retrenchment or any form of termination of service. In all other cases listed at 2 above, the dispute has to be raised by a Union / Management

IMP. DEFINITIONS

Industrial Dispute : Any dispute between :

Employers & employers Employers & workmen Workmen & workmen The terms of employment or Conditions of labour of any person.

Connected with

DEFINE WORKMAN U/S 2(S)

Any person (including an apprentice)

employed in an industry to do any manual, unskilled, skilled technical operational, clerical or supervisory work for hire or reward Whether the terms of employment be express or implied and for the purpose of this Act includes any such person who has been dismissed discharged or retrenched in connection with or as a consequence of an industrial dispute or whose dismissal or retrenchment has led to the dispute

But, does NOT include a person :

who is subject to Army Act, 1950 , Air Force Act 1950 or Navy Act 1957 Who is employed in police service as an officer or other employee of a prison Who is employed mainly in managerial or admn. Capacity A supervisor drawing wages exceeding a specified amount (mentioned in the Rules)

DEFINE INDUSTRY [U/S 2(J)]

Any systematic activity carried on by cooperation between employer & his workmen (whether workmen are employed directly or through an agency) for the production, supply or distribution of goods or services. or services with a view to satisfy human wants or wishes (not being wants or wishes which are merely spiritual or religious in nature), whether or not,Whether or not any capital has been invested or such activity is being carried out for the purpose of making profits

But it DOES NOT include: Any agricultural operation (except when the agri operation is integrated with another activity & that is the predominant one) Hospitals or dispensaries Educational, scientific, research or training institutions Khadi or village industry Any sovereign function of the govt Any domestic service Any profession practiced by an individual if the number of persons employed by the individual is less than ten Cooperative society employing less than 10 persons

Causes of Dispute

Wages Union rivalry Political interference Unfair labour practices Multiplicity of labour laws others

Classification/ Types of ID

Interest disputes: arrising out of deadlocks in negotiation for collective bargaining Grievance disputes: may pertain to discipline, wages, working time, promotion, rights of supervisors etc. also some times called interpretation disputes Unfair labour practices: those arising out of right to organise, acts of violence, failure to implement an award,discriminatory treatment, illegal strikes and lockouts Recognition disputes: over the rights of a TU to represent class or category of workers

MACHINERY FOR THE PREVENTION & SETTLEMENT OF INDUSTRIAL DISPUTES

Authorities appointed under ID Act :

Works Committee Conciliation Officer Board of Conciliation Court of Inquiry Labour Court Industrial Tribunal National Tribunal

WORKS COMMITTEE (U/S 3)

What is the statutory requirement for constituting WC? Every Industrial establishment in which: 100 or more workmen are employed or have been employed on any day in the preceding 12 months. Whom does it consist of ? Bipartite representatives of both Representatives of workmen equal to that of employer , Term of representatives shall be 2 years Which type of issues handled ? Matters arising out of the day to day working of the organisation (e.g health, safety , welfare of employees , productivity , quality, cost consciousness)

Conciliation officer (sec 4)

Appropriate govt. may appoint CO CO may be Labor officer(less than 20 workmen),Labor Commisioner or Deputy Com for more than 20. CO work is to induce both the parties to the dispute to come to fair and amicable settlement. Send a report (proceedings- successful or failed) to govt. within 14 days of start of proceedings After considering the govt may refer the dispute to BOC , Labour court, Tribunal or national tribunal.

Powers of conciliation officers

Have no power to decide, but strive to find solution.

Power of entry and inspection of premises Power to call for and inspect documents Report to be submitted within 14 days or less from commencement

Board of concilliation (sec 5)

Composition :Chairman and 2 or 4 members , Duties & power same as conciliatory officer : if dispute is settled then report to be sent to app. Govt.If not then also. Submit within 2 months

Courts of Inquiry

The app govt may constitute COI connected with dispute A COI may consist of one or more persons as members.Chairman Inquire into the report and submit to govt within 6 months from commencement of inquiry. Inquire and reveal the case

Labour court

The app govt may appoint LC any matter specifies in II Schedule Composition consist of 1 person should be or have been a judge of HC, or for 3 yrs been a district judge or an add district judge, have held any judicial office in india for 7 yrs, Matters in II schedule: under standing order, Application or interpretation of SO, discharge or dismissal of workers, workers wrongly dismissed, withdrawal of concession or privilege, illegality of strike or lockout, all matters other than III schedule

Tribunals

Matter in III schedule consist of 1 person should be or have been a judge of HC, or for 3 yrs been a district judge or an add district judge Matters; wages , including period, mode of payment, compensatory allowances, hrs of work, intervals, leave with wages, bonus , profit, pf gratuity, shift work, classification fo grades, rules of discipline, retrenchment, closure,

National tribunal

Central govt may refer the dispute to NT : if the matter is of national importance

The parties to an industrial dispute are required not to resort to work stoppage if dispute is pending before the Board of Concilation or adjudication authority.

No person shall be appointed to, or continue in, the office of the Presiding Officer of a Labour Court, Tribunal or National Tribunal, if (a) he is not an independent person; or (b) he has attained the age of sixty-five years.

Methods for settlement and prevention of Industrial dispute

COLLECTIVE BARGAINING Takes place when representatives of a labour union meet management representatives to determine employees wages and benefits and to solve other issues. Collective bargaining is the most effective method of resolving industrial disputes Approaches to collective bargaining As a process of social change As a peace treaty between conflicting parties

Collective Bargaining: Steps Presentation in collective manner(demands and grievances) Discussions, bargaining and negotiations on mutual grounds Signing of formal agreement or informal understanding In even of failure,likely resort to strikes or lock outs

CONCILIATION
Conciliation is an important method for settlement of disputes through third-party intervention Conciliation is a friendly intervention of a neutral person in a dispute to help parties settle differences peacefully The aim of conciliator is to break the deadlock ,explain the view point of one party to the other, convey messages and keep the negotiation going. Parties may or may not accept the sugestions.

ARBITRATION

Arbitration is the process in which a neutral third party listens to disputing authorities, gathers information about dispute and makes a decision which is binding on both parties. When the parties feel that mutual negotiations will not succeed ,it may decide to submit the dispute to a neutral person or group of persons for arbitration. Award given may or may not be binding on parties

It differs from conciliation in the sense that in arbitration , arbitrator gives a decision on dispute while in conciliation, conciliator merely facilitates disputing authorities disputing parties to arrive at a decision.

VOLUNTARY REFERENCE OF DISPUTES TO ARBITRATION

Sec. 10 (A) (1): Before the Govt. refers a dispute to adjudication, the employer & workmen, can voluntarily refer it to an arbitrator(s) through a written agreement. If there are an even number of arbitrators are there an umpire shall be appointed whose decision shall prevail if the others are equally divided in their opinion. A copy of the arbitration agreement shall be sent to the appropriate Govt. and the conciliation officer and the same shall be published in the official gazette within one month.

When the Govt. is satisfied that the persons who have signed the arbitration agreement represent the majority of each party , the dispute is referred to arbitration and the Govt. issues a notification (The dispute shall be settled through arbitration .) and . When a dispute has been referred to arbitration and a notification has been issued, the Govt. may prohibit the continuance of a strike or lock out The arbitrator (s) shall investigate the dispute and submit the award to the appropriate Govt.

ADJUDICATION

Under the condition when dispute is not settled and parties adhere to strikes and lockouts, Govt may decide to refer the dispute to adjudication and force the parties to abide by the award of the adjudicator Adjudication means a mendatory settlement of an industrial dispute by a labour court or a tribunal. Prohibit the party from work stoppages.

CASE : LIBERTY FOOTWEAR CO.

Karnal Leather Karamcjari Sanghathan Vs. Liberty Footwear Co. , AIR 1990 , SC Question : If an arbitration agreement is not published, will the arbitrators award still be valid ? Facts : Workers Union claimed that the management had illegally terminated more than 200 workmen . Workers went on strike .. Violence .. Police.. Deputy Commissioner.. Labour Commissioner

Both parties agreed to get the dispute settled through an arbitration committee consisting of 5 persons (2 from the management, two from the Union with the D.C as the President) The committee gave its award to reinstate 159 workers The management did not reinstate the workers . another dispute arose! The management challenged the validity of the arbitrartion award .. Writ petition in the High Court The ground .. the arbitrartion agreement was not published in the official gazzette as per requirement of subsec. 3 of Sec. 10 (A) . The High Court accepted the writ petition i.e requirement of publishing the agreement is mandatory. Workmen appealed to the Supreme Court SC : upheld the HC decision , i.e the arbitration agreement must be published without which the validity of arbitral award is questionable.

NOTICE OF CHANGE

Section 9 A prohibits employer to make any change in conditions of service of any workman, in respect of matter specified in fourth schedule. Objective of this section is to provide an opportunity to the workmen,to consider the effect of a proposed change & if necessary to present their views on the proposal. The conditions of service for change of which notice is to be given are specified in fourth schedule which are as under: Wages Hours of Work

NOTICE OF CHANGE

Contribution paid by workers to any PF, pension or the benefit of the workmen under any law Compensatory and other Allowance Classification by Grades Withdrawal of any concession Leave with wages and holidays Withdrawl of any concession or privilege or change in usage Introduction of new rules of discipline or alteration of existing rules so far as they are provided in the standing order. Standardisation or improvement of plant or technique which is likely to retrenchment of workers.

NOTICE OF CHANGE

However section requires that 2 conditions may be fulfilled before any change in the conditions of workmen is made1.Employer should give notice to the workmen who are likely to be affected by the change.Notice should be given in the prescribed manner & must state the change proposed to be effected. 2.The employer must wait for 21 days after giving the notice,for change brought about prior to this period shall be invalid.

PROHIBITION OF STRIKES AND LOCKOUTS SECTION 22 (1)

Strikes & lockouts are prohibited in public utility services without fulfilling following conditions: A statutory notice of strike/lockout must be given to employer or workmen within six weeks before striking or lockout. There must be no strike/ lockout within 14 days of giving such notice. When date is specified in the notice,no strike or lockout can be calld/declared before before the expiry of that day. Where any conciliation proceedings are pending, no strike or lockout declared during pendency of any conciliation proceedings and seven days after conclusion of proceedings.

GENERAL PROHIBITION OF STRIKES AND LOCKOUTS- SECTION 23

According to Section 23, no workman who is employed in any industrial establishment shall go on strike in breach of contract and no employer shall declare a lockout: During the pendency of conciliation proceedings before a board & seven days after conclusion of proceedings During pendency of proceedings before labour court, industrial or national tribunal and two months after conclusion of such proceedings. During pendency of arbitration proceedings before an arbitrator and two months after conclusion of such proceedings. During the period in which a settlement or award is in operation,in respect of any of the matters covered by the settlement of award.but there is no bar to call strike or to declare a lockout in respect of other matters.

PROHIBITION OF STRIKE & LOCKOUT BY ORDER OF GOVERNMENT

When an industrial dispute has been referred to a board,labor court,industrial or national tribunal, Appropriate govt may by order prohibit the continuance of a strike or lockout in connection with such dispute which may be in existence on the date of the reference or which has been referred to arbitration and a notication has been issued under sub-section (sec.10A(4A).)

ILLEGAL STRIKES AND LOCKOUTS

Strikes and Lockouts are legal when they are declared in compliance with provisions of Act. A strike is illegal when it is commenced in contravention of Section 22 or Section 23 of the Act.

ILLEGAL STRIKES AND LOCKOUTS

However in following cases a strike will not treated as illegal: 1. A strike is called strictly in compliance ofwith the provisions of Act,eg. Where workmen refuse to do additional work imposed on them by employer under a rationalisation scheme. When it is resorted to ,for the purpose of influencing the employer,to open negotiation as to their demands,provided it doesnot hit in any way provisions of sec22 & 23.

conti.

Where a lockout has been declared in consequences an illegal strike or a strike declared in consequence of an illegal lockout. If a strike or lockout was commenced before and continued before and continued during pendency of arbitration proceedings and also if continuedaftr a reference has been made to a board,labor court or tribunal.

PROHIBITION OF FINANCIAL AID TO ILLEGAL STRIKE & LOCKOUT

No person shall knowingly expand or apply any money in direct support of any illegal strike or lockout.

PENALTIES

Committing unfair labour practices Illegal strike and lock-outs Instigation etc. for illegal strike or lock-outs. Giving financial aid to illegal strikes and lock-outs. Breach of settlement or award Closure without 60 days notice under Sec.25 FFA Contravention of Sec.33 pertaining to change of conditions of Service during pendency of dispute etc.

OFFENCES AND PENALTIES FOR ILLEGAL STRIKES AND LOCKOUT SECTION 26

Any worker who commences or acts in furtherance of illegal strike shall be punishable with imprisonment up to one month or fine up to Rs.500 or both. Similarly, if any employer who indulges in an illegal lockout will entail a liability for payment of wages during lockout. He will also be punishable with imprisonment up to one month or fine up to Rs. 1,000 or both

CONTI

Any person who instigates or incites others to take part in illegal strike or lockout or acts in furtherance of such an illegal strike or lockout is punishable with imprisonment upto 6 months or with fine upto 1000 Rs or both. Any person who is giving financial aid for illegal strikes and lockout shall be punishable with imprisonment upto 6 months or with fine upto 1000 Rs or both.