industrial disputes act,1947 yo yo

7/29/2019 Industrial Disputes Act,1947 Yo Yo

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INDUSTRIAL DISPUTES ACT,1947

KIRLOSKAR INSTITUTE OF ADVANCED MANAGEMENT STUDIES

INDUSTRIAL DISPUTES ACT , 1947


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PRESENTED TO: PRESENTED BY:1)BASHISHTH GUPTA

2)

3) NIHAL SINGH SUHAG(1017)

4)

5)

6)7)


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HISTORY

The objective of the Industrial Disputes Act is to secure industrialpeace and harmony by providing machinery and procedure for theinvestigation and settlement of industrial disputes by negotiations.

Various studies indicate that Indian labour laws are highlyprotective of labour, and labour markets are relatively inflexible.

These laws apply only to the organised sector.

Consequently, these laws have restricted labour mobility, have ledto capital-intensive methods in the organised sector and adverselyaffected the sectors long-run demand for labour.

Labour being a subject in the concurrent list, State-level labourregulations are also an important determinant of industrialperformance.

Evidence suggests that States, which have enacted more pro-worker regulations, have lost out on industrial production ingeneral.

HISTORY

d h h d f l k


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HISTORY CONTD..

amendment in 1976, which required firms employing 300 or more workersto obtain government permission for layoffs, retrenchments and closures.

A further amendment in 1982 (which took effect in 1984) expanded itsambit 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 couldbenefit the mass of workers outside.

It is also argued that the restriction on retrenchment has adversely affectedworkplace discipline, while the threshold set at 100 has discouragedfactories from expanding to economic scales of production, therebyharming productivity.

Several other sections of the IDA allegedly have similar effects, becausethey increase workers bargaining strength and thereby raise labour costseither directly through wages or indirectly by inhibiting work reorganization

in response to changes in demand and technology.

HISTORY CONT


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The Act also lays down

THE ACT ALSO LAYS DOWN

The provision for payment of compensation to the workman on

account of closure or lay off or retrenchment.

The procedure for prior permission of appropriate Government

for laying off or retrenching the workers or closing down

industrial establishments.

Unfair labour practices on part of an employer or a trade union

or workers.


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DEFINITIONS NEEDED TO BE FAMILIAR

WITH

DEFINATIONNEEDED TO BE

FAMILIAR WITH

Average pay means the average of the wages payable to a workman.

Award - means an interim or a final determination of any industrial

dispute or of any question relating thereto by any Labour Court, IndustrialTribunal or National Industrial Tribunal and includes an arbitration award

made.

Closure - means the permanent closing down of a place of employment

or part thereof.

"industry" - means any systematic activity carried on by co-operationbetween an employer and his workmen.


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DEFINITIONS CONTD..

DEFINATION CONT

Conciliation officer" means a conciliation officer appointed under thisAct;

Conciliation proceeding" means any proceeding held by a conciliation

officer or Board under this Act.

"Board" means a Board of Conciliation constituted under this Act.


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Causes of industrial Disputes:

CAUSES OF INDUSTRIAL DISPUTE

Causes of Industrial disputes may be grouped into four categories :

(A) Industrial Factors

(B) Managements Attitude towards workers

(C) Government Machinery ; and

(D) Other Causes


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INDUSTRIAL FACTORS

INDUSTRIAL FACTOR

Under this category, some of the causes of dispute may be :

(i) An industrial matter relating to employment, work, wages, hours ofwork, privileges, the rights and obligations of employees and employers, terms

and conditions of employment including matters pertaining to :(a) dismissal or non-employment of any person

(b) Registered agreement , settlement or award : and

(c) demarcation (establishing limits) of the functions of an employee

(ii) An industrial matter in which both the parties are directly andsubstantially interested.

(iii) disputes arising out of unemployment, inflation, change in the attitudeof employers and rivalry among unions.


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MANAGEMENT ATTITUDE TOWARDS

LABOR

MANAGEMENT ATTITUDE TOWARDS LABOR

(i) Management s unwillingness to talk over any dispute with theiremployees.

(ii) Managements unwillingness to recognize a particular trade union ,delegating enough authority to the representatives,etc.(iii) Unwillingness to negotiation and settlement of disputes.

(iv) Managements insistence to take care of recruitments, promotionetc. without consulting the concerned employees.

(v) Managements unwillingness to provide services and benefits to itsemployees.


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GOVERNMENT MACHINERY

GOVERNMENT MACHINERY

(a) Though there are number of enactments for promotion of harmoniousrelations, it is ineffective and unsatisfactory due to various reasons like

their irrelevancy in the context of the challenges of present industrialclimate /culture, incapability of understanding and answeringimperatives of development, improper and inadequate implementation bymany employers.

(b) The governments conciliation machinery has settled a very negligiblenumber of disputes.


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OTHER CAUSES

OTHER CAUSES

(i)Affiliation of the trade unions with a political party, where the lattermay instigate the trade unions to conduct strikes, lockouts , gheraos etc.

(ii) Political instability, Centre- state relations, sometimes result intoindustrial conflict.

(iii) Other potential factors like corruption in industry and public life, easymoney, etc.can also result into industrial disputes.


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StrikesLockouts

Primary

Strikes

Secondary

StrikesOthers

1. General

2. Particular

3. Political

4. Bandhs

Stay-

away

Strikes

Sit down

Stay-in

Tool Down

or

Pen Down

Strikes

Go -

Slow

Work

To

Rule

Token

or

Protes

t

Strikes

Industrial Disputes

Lightening orCat-Call

strikes

Picket

ing &

Boyco

tt

Gher

aoHunger

Strikes


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DEFINITIONS

DEFINITIONS

Layoff

Layoff is the temporary suspension or permanent termination

of employment of an employee or a group of employees for

business reasons. By layoff, workmen employed in such job,

division or factory or other establishment will become jobless for

the time being.

Retrenchment

Retrenchment means the termination by the employer of the

service of a workmen for any reason whatsoever, otherwise than

as a punishment inflicted by way of disciplinary action.


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Difference between Layoff & Retrenchment

Layoff Retrenchment

Temporary or Permanent

Groups of People.

Due to Lack of Work.

Permanent.

Individualistic.

Surplus work force.


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DEFINITIONS CONTD..

DEFINITIONS CONT.

Closure

Closure is permanent closing down of a place ofemployment or part there of, it is initiated by

management generally because of trade reasons.Lockout

As per the Industrial Disputes Act 1947:

A lockout means the closing down or shutting downthe undertaking or refusing to provide its employeeswith work with the intention of forcing them eitherto accept the demands made by them or towithdraw the demands made by them on him.


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Industrial disputes are basically of two types ,i.e.Strikes and Lockouts.

INDUSTRIAL DISPUTES ARE OF BASICALLY TWO TYPES

Strikes : Strikes are a result of more fundamental maladjustments, injustices

and economic disturbances.

Strike is a temporary cessation of work by a group of employees inorder to express grievances or to enforce a demand concerningchanges in work conditions.

Strikes are divided into three types .They are Primary strikes,secondary strikes and other strikes.


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I.PRIMARY STRIKES

1). PRIMARY STRIKES

Are generally against the employer with whom the dispute exists. They

are :

(i) Stay Away Strikes: In this strike workmen stay away from the workplace. They organize rallies, demonstrations, etc.

(ii) Stay-in or sit Down Strikes : In this strike, workmen come to theplace , they stay at the work place but they dont work.

(iii) Tools Down, Pen Down Strike : Here the strikers lay down their toolsin case of factory workers , office workers lay down their pens,


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PRIMARY STRIKES CONTD..

PRIMARY STRIKES CONT.

(iv) Token or Protest Strikes : It is of very short duration and is in natureof signal for the danger ahead. In this strike workers do not work for an

hour or a day.

(v) Lightening or Wild cat strike : In this strike, the strike is done withoutany prior notice or with a shortest notice.

(vi) GoSlow : In this strike, the workers intentionally reduce the speedof work.


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PRIMARY STRIKES CONTD..

PRIMARY STRIKES CONT.

(vii) Work to rule : In this strike, the strikers undertake the work accordingto rules or job description.

(viii) Picketing : It is an act of protesting by the workmen in front of thepremises of the employer.

(ix) Boycott: It aims at disrupting the normal functioning of the enterprise.

(x) Gherao : It is a physical blockade of a target either by encirclement,

intended to block from and to a particular office, workshop etc.(xi) Hunger Strike : This type of strike is resorted to either by the leadersof the union or by some workers all at a time for a limited period or up tothe period of settlement of disputes.


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SECONDARY STRIKES & LOCKOUTS

SECONDARY STRIKES AND LOCKOUTS

II. Secondary Strike : Secondary strikes are against a third party.These strikes are sympathetic strikes.

III. Other Strikes : These strikes are in the form of general,

particular, political and bandhs.Lockouts:

Lockout means the closing of a place of business of employmentor the suspension of work, or the refusal by the employer to

continue to employ any number of persons employed by him. However, termination of employment or retrenchment, and

prohibiting an employee are not lockouts.


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Difference between lockout & strike

Lockout strike A lockout is a temporary workstoppage during a labor dispute.

Initiated by the Management.

When lockout by employer is legal

and justified, Workmen are notentitled to payment of wages.

Employees are restricted to enter

into the company premises.

Employees are restricted to enter

into the company premises.

A strike is a work stoppagecaused by the mass refusalof employees to work

Initiated by the workforce in theorganization or factory.

Wages during strike period arepayable only if the strike is bothlegal and justified.

The workers can hold a strike atthe workplace or outside the

company premises. Hence thereis no such restriction.

Whereas, Strike is a weapon inthe hands of workers.

PREVENTIVE MEASURES OF INDUSTRIAL


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PREVENTIVE MEASURES OF INDUSTRIALDISPUTES

LaborWelfareOfficer

TripartiteandBipartiteBodies

StandingOrders

GrievanceProcedure

CollectiveBargaining

StrongTrade

Unions

Labor Co-Partnership and

Profit sharing

Joint Consultations


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1.Labor Welfare Officer

LABOR WELFARE OFFICER

Section 49 (1) and (2) of the Factories Act, 1948 specifies thatevery factory wherein 500 or more workers are ordinarilyemployed at least one welfare Officer must be appointed, wherethe number of workers are in excess of 2500,the assistant and /or additional welfare officers are required to be appointed toassist the Welfare Officer.

The functions of Labor Welfare Officer includes :

(I) Labor Welfare Functions :Advice and assistance inimplementing legislative and non-legislative provisions relating to:


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Labor Welfare Officer Contd..

LABOR WELFARE OFFICER CONT

(a)Health &Safety

(b)Working conditions

(c)Sanitation & Cleanliness

(d)Recreation

(e)Welfare Amenities

(f) Workers Education

(g)Services like Co-operative grain shops, housing cooperatives.(h)Formation of welfare committees.

(i) Housing

(j) Implementation of welfare Acts.


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LABOR WELFARE OFFICER CONT..

(II) Labor Administration Functions :These may cover:

(a)Organizational Discipline

(b)Safety & Medical administration(c)Wage& salary administration

(d)Administration of Legislation covering Industrial

Relations.


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LABOR WELFARE OFFICER CONT

(III) Labor Relations Functions: These may consist of :

(a)Administration of standing orders.

(b)Settlement of Grievances.

(c)Settlement of Disputes through statutory procedures.

(d)Trade unions& union management relations

(e)Steps to increase productivity efficiency.


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2.Tripartite and Bipartite Bodies

TRIPARTITE AND BYPARTITE BODIES

Industrial relations in India have been shaped largely by thepolicies and practices of Tripartite and Bipartite bodies.

The purpose of consultative machinery is to bring the

partners together for mutual settlement of differences inspirit of cooperation and goodwill.

Bipartite consultative machinery comprises two parties i.e.employees and employer, the important bipartite body is

works committees.


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3. Standing Orders

STANDING ORDERS

Majority of the industrial disputes are related to conditionsof employment.

To prevent this, Standing orders are formulated.

It was made obligatory that standing orders should governthe conditions of employment under the IndustrialEmployment (Standing Orders ) Act of 1946.

The Standing Orders regulate the conditions of employmentfrom the stage of entry to the stage of exit.


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4. Grievance Procedure

GRIEVANCE PROCEDURE

Grievance generally arise from dayto- day workingrelations.

Grievances of the employees are readdressed by themanagement.

Management can prevent the occurrence of industrialdisputes by solving the individual problems.


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5. Collective Bargaining

COLLECTIVE BARGAINING

Collective bargaining helps for settlement of issues andprevention of industrial disputes.

It occurs when representatives of a labor union meetmanagement representatives to determine employees wagesand benefits, to create or revise work rules and to resolve

disputes or violations of the labor contract.


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6. Strong Trade unions

STRONG TRADE UNIONS

Trade union is the most suitable and effective agency toconduct collective bargaining on behalf of the workers.

A powerful bargaining may be achieved by strong tradeunions, which enable the workforce to maintainharmonious relations with the management.


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7. Labor Co-partnership and profit sharing

LABOR PARTNERSHIP AND PROFIT SHARING

Good industrial relations can be maintained through properpartnership and profit sharing; employer gives a portion oftotal profits to workers in addition to their normal wages.

This sort of attitude of management would createpsychological conditions favorable for industrial peace.


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8.Joint Consultation

JOINT CONSULTATION

Joint Consultation involves a continuous relationshipbetween labor and management and expects willingness ofmanagement and the participation of workers in discussing

common problems of interest.

This is the result of collective bargaining relations on astable basis when parties know each other well and have amutual trust.

h b h f d l d h


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Settlement of Disputes:

SETTLEMENT OF DISPUTES

Whatever may be the cause of industrial disputes, theconsequences are harmful to all stakeholders- management,employees, economy and the society .

For management, disputes result in loss of production, revenue,profit, and even sickness of the plant.

Employees would be hard hit as the disputes may lead to

lockouts and consequent loss of wages and even jobs.


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Collective

Bargaining

Code of

Discipline

Grievance

Procedure

Dispute

Settlement

ConsultativeMachinery

Arbitration

Conciliation

Adjudication

C ll i b i i h l f l f i d i f


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Collective Bargaining

COLLECTIVE BARGAINING

Collective bargaining helps for settlement of issues and prevention ofindustrial disputes.

It occurs when representatives of a labor union meet managementrepresentatives to determine employees wages and benefits, to create or

revise work rules and to resolve disputes or violations of the laborcontract. The bargaining is collective in the sense that the chosen representative

of the employees (i.e. union ) acts as a bargaining agent for all theemployees in carrying out negotiations and dealings with the

management. On the employer side, it is collective in those common situations in

which the companies have joined together in an employer associationfor the purposes of bargaining with a union.


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Environment

Preparation for

Negotiation

Bargaining

Issues

Negotiating

NegotiationBreakdowns

Reaching theAgreement

Ratifying the agreement

Administration of the

Agreement

OvercomingBreakdowns

Yes

No

h d f d l d f d d b l f


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Code of Discipline

CODE OF DICIPLINE

The code of discipline defines duties and responsibilities ofemployers and workers. The objectives of the code are:

1. To ensure that employers and employees recognize each

others rights and obligations.2. To promote consecutive co-operation between parties

concerned at all levels.

3. To eliminate all forms of coercion, intimidation andviolence in IR.

4. To avoid work stoppages.

5. To facilitate the growth of trade unions.

6. To maintain discipline in the industry.

G i P d

This is another method of resolving disputes


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Grievance Procedure

GRIEVANCE PROCEDURE

This is another method of resolving disputes. Grievance is any discontent or dissatisfaction, arising out of

employment relationship, which an employee thinks , believes or feels tobe unfair, unjust or inequitable.

A grievance procedure is a formal process which is preliminary toarbitration, which enables the parties involved to attempt to resolve

their differences in a peaceful and orderly manner. It enables the company and the trade union to investigate and

discuss the problem at issue without in any way interrupting the

peaceful conduct of business. When the grievance redressal machinery works effectively, it

satisfactorily resolve most of the disputes between labor andmanagement.

Voluntary


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Voluntary

Arbitration

Committee of

union &

ManagementRepresentatives

Manager

Grievance Committee

Departmental

Representatives

Department

Representatives

Head of the

department

Supervisor

Foreman

Grievant Employee

VI stage within7 days

V stage Appeal to

Management for

revision

IV stage communicates the

decision within 7 days

II stage decision

within 3days

I stage answer to be

given within 48 hrs

III stage conveys

verbally

NS

NS

NS

NS

NS

NS

NS- Not satisfied

A bi i i d i hi h l hi d


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Arbitration

ARBITRATION

Arbitration is a procedure in which a neutral third partystudies the bargaining situation, listens to both the parties,gathers information and then makes recommendations thatare binding on both the parties.

Arbitration is effective means of resolving disputes becauseit is :

1. Established by the parties themselves and the decision isacceptable to them.

2. Relatively expeditious when compared to courts andtribunals.

P f A bit ti

1) The labor union generally takes initiative to go for arbitration when the


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Process of Arbitration

PROCESS OF ARBITRATION

1) The labor union generally takes initiative to go for arbitration. when theunion decides, it notifies the management.

2) The union & the management select the potential arbitrator by carefullystudying the previous decisions given by the particular arbitrator, to detect

any biases.3) After the arbitrator is selected, the time & place for hearing will be

determined, the issue to be resolved will be presented to the arbitrator in adocument that summarizes the questions to be decided, any contracts

restrictions that prohibit the arbitrator from making an award that wouldchange the terms of existing contract.

4) Each side represents its case at the hearing.

5) Each party has to submit formal written statements.

C ili i i b hi h h i f k d


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Conciliation

CONCIALATION

Conciliation is a process by which the representatives of workers andemployers are brought together before a third party with a view to persuadingthem to arrive at an agreement by mutual discussion between them. The thirdparty may be an individual or a group of people. The third party may also be

called as mediators.

The ID Act, 1947and other state enactments authorize the governments toappoint conciliators charged with duty of mediating in and promoting thesettlement of industrial disputes.

In Conciliation , the ultimate decision rests with the parties themselves butthe conciliator may offer a solution to the dispute acceptable to both theparties and serve as a channel communication . The parties may accept hisrecommendation or reject it.

Adj di i

Adjudication means a mandatory settlement of an industrial dispute by a


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Adjudication

ADJUDICATION

j y p ylabor court or a tribunal. Generally, the government a dispute foradjudication depending on the failure of conciliation proceedings. Section 10of the Industrial Act, 1947, provides for reference of a dispute to labor court

or tribunal. Disputes are generally referred to adjudication on the recommendation of

the conciliation officer who had dealt with them earlier. The government has adiscretionary powers to accept or reject recommendations of the conciliationofficer. It is obvious that once is referred for adjudication , the verdict of a

labor court or tribunal is binding on both the parties. This is the most significant instrument of resolving disputes. But, it has been

criticized because of the delay involved in resolving conflicts.

C l i M hi

C lt ti hi i t b th t t l fli t Th i


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Consultative Machinery

CONSULTATIVE MACHINERY

Consultative machinery is set by the government to resolve conflicts. The mainfunction is to bring the parties together for mutual settlement of differences in thespirit of co-operation and goodwill.

A consultative machinery operates at plant , industry , state and national levels. At

plant level, there are works committee and joint management councils. Being bipartite in character, works committee are constituted as per the provisions

of industrial Disputes Act, 1947 and joint management councils are set up followingthe trust laid down in the Industrial Policy Resolution,1956. At the industry level,there are wage boards and industrial committee.

Labor advisory boards operate at the state and at the all India level there are Indianlabor conference and the Standing labor committee. The bodies operating at stateand national level, are

tripartite in character , representing government, labor and management.


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industrial disputes act,1947 yo yo

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