Escolar Documentos
Profissional Documentos
Cultura Documentos
ON
VOLUNTARY SETTLEMENT OF INDUSTRIAL
DISPUTE
SUBMITTED BY
MS. SONALI SINGH
UNIVERSITY ROLL NO.
UNIVERSITY REGD. NO.
I have taken efforts in this project. However, it would not have been
possible without the kind support and help of many individuals. I would
like to extend my sincere thanks to all of them.
I am highly indebted to Dr. Sukant Kumar Nanda Sir and Dr. Soumitra
Kumar Chatterjee Sir for their guidance and constant supervision as
well as for providing necessary information regarding the project & also
for their support in completing the project.
I would like to express my gratitude towards my parents for their kind
co-operation and encouragement which help me in completion of this
project.
My thanks and appreciations also go to my friends in developing the
project and people who have willingly helped me out with their
abilities.
SONALI SINGH
BA.LLB. (HONS) 9TH SEMESTER
CONTENTS
1. Introduction
2. Definition of Industrial Disputes
3. Causes of Industrial Disputes
a. Wage Demands
b. Union Rivalry
c. Political Interference
d. Unfair Labour practices
4. Dispute Settlement Methods and Machinery
a. Conciliation
b. Court of enquiry
c. Voluntary arbitration
d. Adjudication (Compulsory arbitration).
i. Conciliation
ii. Court of Enquiry
iii. Voluntary Arbitration
iv. Adjudication (Compulsory Arbitration
5. Conclusion
INTRODUCTION:
Every human being (say a worker) has certain needs, e.g., economic
needs, social needs and needs for security. When these needs do not
get satisfied, there arises a conflict between labour and capital.
Thus both the strikes and lock-outs are the two extreme measures
followed by employees and employers respectively in extreme cases.
Thus these sorts of conflicts between the employer and employees are
known as industrial disputes. The industrial disputes result in huge loss
of mandays as well as production.
The industrial relations are disturbed by industrial disputes and growing
industrial disputes may pollute the entire industrial climate of the
country leading to a total chaos in the economy.
CAUSES OF INDUSTRIAL DISPUTES
The causes of industrial disputes are many and varied. The major
ones related to wages, union rivalry, political interference, unfair labour
practices, multiplicity of labour laws, economic slowdown and others.
Wage Demands
By far, the most important cause for disputes is related to wages. The
demand for wages has never been fully met because of inflation and
high cost of living. High inflation results in increased cost of living
resulting in never-ending demands from unions.
Union Rivalry
Multiplicity of unions leads to inter-union rivalries. If one union agrees
to a wage settlement, another union will oppose it. The consequence is
never-ending disputes, as has been happening at the Singareni
Collieries. The company had 445 strikes in 1990-91 resulting in a loss of
production of 3.12 million tonnes and 34.19 lakh man-days. The reason
is mainly union rivalry. One union or the other is always on strike and
often the demands of rival unions on an issue are conflicting.
Political Interference
There are more than 155 Acts, both Central and State, earning our
country the dubious distinction of being one of the few highly labour
legislated countries in the world. What has been the outcome of all
these? Surely, the result has been endless confusion, industrial strife,
loss of production and exploitation of labour by the management and
of the management by the labour.
What is strange is that in developed countries of the Western world,
labour legislation followed the emergence of industrialisation and in
response to a demand for economic and social betterment of the
workers. We neither experienced an industrial revolution. in the true
sense of the tenn, leading to the gradual emergence of a welfare state.
nor a socialist revolution which binds the public sector with a sense of
performance.
DISPUTE SETTLEMENT METHODS AND
MACHINERIES
This machinery has been provided under the Industrial Disputes Act,
1947. It, in fact, provides a legalistic way of setting the disputes. As said
above, the goal of preventive machinery is to create an environment
where the disputes do not arise at all.
Even then if any differences arise, the judicial machinery has been
provided to settle them lest they should result into work stoppages. In
this sense, the nature of this machinery is curative for it aims at curing
the aliments.
1. Conciliation
2. Court of Enquiry
3. Voluntary Arbitration
4. Adjudication (Compulsory Arbitration).
1. Conciliation:
The Industrial Disputes Act, 1947 provides for conciliation, and can be
utilised either by appointing conciliation officers (permanently or for a
limited period) or by constituting a board of conciliation. This conciliation
machinery can take a note of a dispute or apprehend dispute either on
its own or when approached by either party.
Conciliation is an art where the skill, tact, imagination and even personal
influence of the conciliation officer affect his success. The Industrial
Disputes Act, therefore, does not prescribe any procedure to the
followed by him.
Board of Conciliation:
2. Court of Inquiry:
The court of enquiry is required to submit its report within a period of six
months from the commencement of enquiry. This report is subsequently
published by the government within 30 days of its receipt. Unlike during
the period of conciliation, workers’ right to strike, employers’ right to
lockout, and employers’ right to dismiss workmen, etc. remain
unaffected during the proceedings in a court to enquiry.
3. Voluntary Arbitration:
The provision for voluntary arbitration was made because of the lengthy
legal proceedings and formalities and resulting delays involved in
adjudication. It may, however, be noted that arbitrator is not vested with
any judicial powers.
He derives his powers to settle the dispute from the agreement that
parties have made between themselves regarding the reference of
dispute to the arbitrator. The arbitrator should submit his award to the
government. The government will then publish it within 30 days of such
submission. The award would become enforceable on the expiry of 30
days of its publication.
Voluntary arbitration is one of the democratic ways for setting industrial
disputes. It is the best method for resolving industrial conflicts and is a
close’ supplement to collective bargaining. It not only provides a
voluntary method of settling industrial disputes, but is also a quicker way
of settling them.
4. Adjudication:
These include:
The Industrial Disputes Act, 1947 provides three-tier machinery for the
adjudication of industrial disputes:
a. Labour Court
b. Industrial Tribunal
c. National Tribunal
A brief description on these follows:
A. Labour Court:
B. Industrial Tribunal:
C. National Tribunal:
This is the third one man adjudicatory body appointed by the Central
Government by notification in the Official Gazette for the adjudication of
industrial disputes of national importance. The central Government may,
if it thinks fit, appoint two persons as assessors to advise the National
Tribunal. When a national tribunal has been referred to, no labour court
or industrial tribunal shall have any jurisdiction to adjudicate upon such
matter.
The main highlights revealed from figures in Table 25.7 are gleaned as
follows:
Here it is noteworthy that the data given in the Table 25.7 is incomplete
in the sense that in no year did all the States and Union Territories send
all the information. For example in some years as many as 12 States and
Union Territories did not furnish information to the Union Ministry of
labour, as can be verified from the latter’s annual reports for the years
decrease in the number of disputes taken for conciliation from 47,788 in
19801 in 981 is explained by the same reason, i.e. non-furnishment of
information on dispute conciliation by all States and Union Territories.
In 1951, total number of work stoppages was about 1,071 which involved
nearly 6.9 lakh workers and resulted in a total loss of 38.2 lakh man-days.
During the planning period, the problem of industrial disputes magnified
considerably. In 1974, total number of work stoppages rose to 2,938 and
number of workers involved significantly increased to 28.55 lakh
resulting in a huge loss of 402.6 lakh man-days.
In recent years also, the industrial disputes remain unabated. Thus the
number of man-days lost due to strikes and lockouts over industrial
disputes was 307.7 lakh in 1989-90 which declined significantly to 236.0
lakh in 1990-91. But in 1991-92, there was a sharp increase in the man-
days lost to the tune of 341.5 lakh. There has however, been a steep
decline in the mandays lost in 1992-93 which stood at 22.97 million
mandays.
There has been an improvement in the industrial relations scenario of
the country in the 1990s as compared to the 1980s as reflected in the
statement of mandays lost on account of strikes and lockouts. The above
table reveals that the number of strikes which was 732 in 1995 has
increased to 793 in 1997 and then it declined to 173 in 2012.
Considering the radical changes that have taken place in the domestic
industrial scenario and the labour market, Second National Commission
on Labour was set up to suggest among others, rationalisation of the
existing laws in the organised sector so as to make them more relevant
and appropriate in the changing context of globalisation and opening up
of the Indian Economy.