Industrial Disputes/Conflicts

Though several measures are taken to manage

human resource, satisfy the demand of
employees and employer, disputes between
employee and employer conflicts take place due
to many reasons.
Conflict means struggle, a fight or a strong
disagreement. Thus we can say that a conflict is
an expression of disagreement.
Industrial disputes are open manifestations of
the feeling of dissatisfaction of
employee/workers.
 Definition of Industrial Dispute
According to the 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.”
 This definition includes all the aspects of a
dispute. It, not only includes the
disagreement between employees and
employers, but also emphasizes the
difference of opinion between worker and
worker.
This disagreement or difference could be
on any matter concerning the workers
individually or collectively. It must be
connected with employment or non-
employment or with the conditions of labor.
 Essentials of an Industrial Dispute
#There must be a dispute or difference
between:
a) Employers and employers.
b) Employers and workman.
c) Workman and workman.
#It should be connected with the
employment or non employment or the
terms of employment or with the conditions
of labour of any person.
 # The relationship between the employer
and the workman should be in existence and
should be the result of the contract and the
workman actually employed.
 Causes of Conflicts/Disputes
Industrial Factors:
 An industrial matter relating to employment,
work, Hours of work etc.
 Rising unemployment.
 Rising prices of essential commodities.
 Rapidly increasing population.
 Attitudes and temperaments of industrial
workers.
 Inadequacies of the Trade unions.
 Causes of Conflicts/Disputes
Management Attitude Towards Labour:
 Management not willing to talk over.
 Unwillingness of management to recognize a
particular union.
 Even when Trade Unions are recognized the
management does not delegate enough
authority to their officials.
 No interaction between management and
workers.
 Causes of Conflicts/Disputes
Government Machinery:
 The laws, legislations which are given by
government are ineffective and unsatisfactory.
 Governments conciliation machinery has been
ineffective.
Other Factors:
 Affiliation of trade unions with political parties.
 Political instability.
 Corruption in industries and personal life.
 Machinery for Settlement of Industrial
Disputes:
Negotiation Works Committee
Investigation Conciliation Officer
Mediation Board of Conciliation
Conciliation Courts of Enquiry
Arbitration Labour Courts
Adjudication Tribunals
National Tribunals
 Negotiation
Negotiation is a dialogue intended to resolve
disputes, to produce an agreement upon
courses of action, to bargain for individual or
collective advantage or to craft outcomes to
satisfy various interests. Here employees
union and employer should come together
and settle their differences and disputes by a
round table approach negotiation.
 Investigation
In order to settle the industrial dispute a board
or court of enquiry may be appointed by the
government. It may be voluntary or
compulsory.
If the investigation is conducted on the basis of
an application field on the basis of an
application field by any one or both parties to
the dispute it is called voluntary investigation.
On the other hand if the investigation is
conducted by the government without the
consent of the parties it is called compulsory
investigation.
 Mediation
Mediation, a form of Alternative dispute
resolution(ADR) or "appropriate dispute
resolution", aims to assist two (or more)
disputants in reaching an agreement.
The sole aim of mediation is the settlement
of dispute by bringing about a voluntary
agreement.
The mediator is an outsider who assists the
parties in their negotiations. He cannot
impose his judgments or will upon the parties.
 Mediation can be effective if some measures
are adopted:
 Mediator should be acceptable to both
parties.
 The mediator should be an impartial
person.
 The mediator should have full knowledge
about the case.
 Conciliation
Conciliation is an process whereby the
parties to a dispute (including future interest
disputes) agree to utilize the services of a
conciliator, who then meets with the parties
separately in an attempt to resolve their
differences.
It is a kind of friendly intervention of a
neutral person in dispute to help the parties
to settle their differences peacefully.
The conciliator tries to bridge the gap
between the parties without using force.
 Arbitration
Arbitration, is a legal technique for the
resolution of disputes outside the courts,
wherein the parties to a dispute refer it to one
or more persons (the "arbitrators", "arbiters" or
“arbitral tribunal"), by whose decision (the
“award") they agree to be bound.
It is the process in which a dispute is
submitted to an impartial outsider who makes
a decision which is usually binding on both
parties. It is judicial in character. It is
supported to produce justice and fair approach
to a dispute.
Qualities of an Arbitrator:
 Understanding the complexities of the labour
management relationship.
 Knowledge of collective bargaining, the
operations of arbitration procedure, industrial
discipline and human relations.
 Deep sense of impartiality.
 Commitment to the maintenance of
harmonious labour management relations.
 Adjudication
Adjudication is the legal process by which
an arbiter or judge reviews evidences and
argumentation including legal reasoning set
forth by opposing parties to come to a
decision which determines rights and
obligations between the parties involved.
The ultimate legal remedy for the
settlement of an unresolved dispute is its
reference to adjudication by the government
 Works Committee
In the case of any industrial establishment in
which one hundred or more workmen are
employed or have been employed on any day in
the preceding twelve months the appropriate
Government may by general or special order
require the employer to constitute in the
prescribed manner a Works Committee
consisting of representatives of employers and
workmen engaged in the establishment so
however that the number of representatives of
workmen on the Committee shall not be less than
the number of representatives of the employer.
 Conciliation Officer
 The appropriate Government may, by
notification in the Official Gazette, appoint
such number of persons as it thinks fit, to
be conciliation officers, charged with the
duty of mediating in and promoting the
settlement of industrial disputes.
 A conciliation officer may be appointed for a
specified area or for specified industries in a
specified area or for one or more specified
industries and either permanently or for a
limited period.
 Board of Conciliation
 The appropriate Government may as occasion
arises by notification in the Official Gazette
constitute a Board of Conciliation for promoting the
settlement of an industrial dispute.
 A Board shall consist of a Chairman and two or
four other members, as the appropriate
Government thinks fit.
 The Chairman shall be an independent person and
the other members shall be persons appointed in
equal numbers to represent the parties to the
dispute and any person appointed to represent a
party shall be appointed on the recommendation of
that party.
 Courts of Enquiry
 The appropriate Government may as occasion
arises by notification in the Official Gazette,
constitute a Court of Inquiry for inquiring into
any matter appearing to be connected with or
relevant to an industrial dispute.
 A Court may consist of one independent
person or of such number of independent
persons as the appropriate Government may
think fit and where a Court consists of two or
more members, one of them shall be
appointed as the chairman.
 Labour Courts
 The appropriate Government may, by
notification in the official Gazette, constitute
one or more Labour Courts for the adjudication
of industrial disputes relating to any matter
specified in the Second Schedule and for
performing such other functions as may be
assigned to them under this Act.
 A Labour Court shall consist of one person
only to be appointed by the appropriate
Government.
 A person shall not be qualified for appointment
as the Presiding Officer of a Labour Court,
unless –
(a) he is, or has been, a Judge of a High Court;
or
(b) he has, for a period of not less than three
years, been a District Judge or an Additional
District Judge; or
(c) he has held any judicial office in India for not
less than seven years; or
(d) he has been the Presiding Officer of a Labour
Court constituted under any Provincial Act or
State Act for not less than five years.
 Tribunals
 The appropriate Government may, by
notification in the Official Gazette, constitute
one or more Industrial Tribunals for the
adjudication of industrial disputes relating to
any matter, whether specified in the Second
Schedule or the Third Schedule and for
performing such other functions as may be
assigned to them under this Act.
 A Tribunal shall consist of one person only to
be appointed by the appropriate Government.
 A person shall not be qualified for
appointment as the presiding officer of a
Tribunal unless –
(a) he is, or has been, a Judge of a High
Court; or
(aa) he has, for a period of not less than
three years, been a District Judge or an
Additional District Judge;
 The appropriate Government may, if it so
thinks fit, appoint two persons as assessors
to advise the Tribunal in the proceeding
before it.
 National Tribunals
 The Central Government may, by notification in
the Official Gazette, constitute one or more
National Industrial Tribunals for the
adjudication of industrial disputes which, in the
opinion of the Central Government, involve
questions of national importance or are of such
a nature that industrial establishments situated
in more than one State are likely to be
interested in, or affected by, such disputes.
 A National Tribunal shall consist of one person
only to be appointed by the Central
Government.
 A person shall not be qualified for
appointment as the presiding officer of a
National Tribunal unless he is, or has been, a
Judge of a High Court.
 Has held the office of the chairman or any
other member of labour tribunal for a period
not less than 2 years.
 The Central Government may, if it so thinks
fit, appoint two persons as assessors to
advise the National Tribunal in the
proceeding before it.