3. IR Unit

download 3. IR Unit

of 148

Transcript of 3. IR Unit

  • 8/3/2019 3. IR Unit

    1/148

    Unit 3 : Management of Conflicts as related to IR

    and different methods of resolving conflicts

    1. Union recognition

    2. Conditions for effective Collective Bargaining

    and process of CB

    3. Adjudicating and Proceedings under ID Act

    and the role of Govt.

  • 8/3/2019 3. IR Unit

    2/148

    Conflict / Dispute

    Conflict of interest between management and labour leadsto disputes / conflict .

    Industrial Dispute Act 1947

    - Object of the act is to make provisions for investigationand settlement of industrial disputes ,

    - Provides machinery for settlement of disputes , if disputes

    cannot be solved through Collective Bargaining .

  • 8/3/2019 3. IR Unit

    3/148

    Definitions :

    Industrial Dispute Act (1947) , Section 2 (j) :

    Industry means any business , trade , undertaking ,manufacture or calling of employers and includes

    any calling , service , employment , handicraft or

    industrial occupation or avocation of workmen .

    Examples : hospitals , educational institutions ,

    universities , charitable institutions , welfareorganizations , professions , clubs , cooperatives ,research institutes .

  • 8/3/2019 3. IR Unit

    4/148

    Industrial Dispute Act (1947) , Section 2 (k)

    industrial dispute means any dispute or

    difference between employers and employers , orbetween employers and workmen , or between

    workmen and workmen , which is connected withthe employment or non employment or the terms

    and conditions of employment or with theconditions of labour, of any person .

    Section 2 A , provides that dismissal , discharge ,

    retrenchment of even a single workman will beindustrial dispute even if no other workman orany union is a party to the dispute .

  • 8/3/2019 3. IR Unit

    5/148

    Industrial Dispute Act (1947) , Section 2 (x)

    workman means any person (including apprentice)

    employed in any industry to do any manual , clerical orsupervisory work for hire or reward . It includesdismissed , discharged or retrenched person also .However , it does not include (i) Armed Forces i.e thosesubject to Air Force Act , Army Act or Navy Act (ii) Police

    or employees of prison (iii) Employed in mainlymanagerial or administrative capacity or (iv) person insupervisory capacity drawing wages exceeding Rs. 1,600per month or functions are mainly of managerialnature

    Teachers are not considered as workmen thougheducational institutes fall under industry as per the Act.

  • 8/3/2019 3. IR Unit

    6/148

    Conditions for dispute to qualify as Industrial

    Dispute :

    1. There must be a difference/dispute between employers,workmen or employers and workmen;

    2. It is connected with employment / non-employment /

    conditions of labour / any industrial matter ;

    3. Workman does not draw wages exceeding Rs. 1600 permonth;

    4. The relationship between the employer and theworkman must be in existence and should be the resultof a contract and the workman actually employed .

  • 8/3/2019 3. IR Unit

    7/148

    Causes of Industrial Conflicts

    1. Industry related factors :

    - Terms and conditions of Employment ;

    - Work ;

    - Wages;

    - Hours of work ;

    - Privileges , the rights and obligations of employees and

    employers ;

    - Dismissal or non-employment of any person ;

    2 . Other Causes :

    - Political influence on trade union movements ;

    - Corruption in industry and public life ;

  • 8/3/2019 3. IR Unit

    8/148

    3. Management related factors :

    - managements unwillingness to recognise a particular

    trade union ;- Managements insistence that it alone is responsible for

    recruitment , promotion , transfer , merit awards , and there

    is no need to consult employees in regard to any of

    these matters ;

    4. Government related factors :

    - Changes in economic policies ; ex. Liberalisation and

    privatisation led to many strikes in country ;- Loss of relevance of labour laws in context of changed

    industrial climate / culture ;

  • 8/3/2019 3. IR Unit

    9/148

    Classification of Industrial Disputes

    1. Interest Disputes / Conflicts of interest / economicdisputes / collective labour disputes :

    - relate to the determination of new terms and conditions

    of employment for the general body of workers.- Trade unions demand improvement in wages , fringe

    benefits , job security .

    - Bargaining power , compromise and test of economic

    strength before the parties reach an agreed solution .

  • 8/3/2019 3. IR Unit

    10/148

    2. Grievance / Right disputes / legal / Individual disputes :

    - Involves individual workers only or a group of workers inthe same group ;

    - Generally arise from day-to-day working relations in any

    undertaking ;

    - Grievance relating to discipline and dismissal ;- Payment of wages and other fringe benefits , working

    time , over-time ,

    - Promotions , demotions , transfer of seniority ;

    - Resolved through collective agreement , employmentcontract , Labour courts , Tribunals .

  • 8/3/2019 3. IR Unit

    11/148

    3. Recognition disputes :

    - managements refusal to recognise a trade union for thepurpose of collective bargaining

    - Rules for trade union recognition are given in Codes of

    Discipline or Industrial Relations Charters.

    4. Disputes over Unfair Labour Practices :

    - Sec. 25 T : prohibits unfair labour practices by employer or

    workman or a trade union .

    - Sec. 25 U : If any person commits unfair labour practice ,he is punishable with fine upto Rs. 1,000 and

    imprisonment upto 6 months .

  • 8/3/2019 3. IR Unit

    12/148

    Fifth Schedule to Act gives list of Unfair Labour Practices :

    In case of Employer :- Interfering in TU activities ;

    - Threatening workmen to refrain them from TU activities ;

    - Establish employer sponsored TU;

    - Abolish work of regular nature and to give that work tocontractors ;

    - Acts of force and violence ;

    - Refuse collective bargaining ;

    - Continue illegal lock-out .

  • 8/3/2019 3. IR Unit

    13/148

    In case of Workmen and Trade Unions :

    - Support or instigate illegal strike ;

    - Coerce workmen to join or not to join a particular TU;- Threatening or intimidating workmen who do not join

    strike ;

    - Refuse collective bargaining in good faith ;

    - Acts of force or violence or intimidation .

  • 8/3/2019 3. IR Unit

    14/148

    Impact of Industrial Dispute :

    1. Workers :

    - Loss of wages ;

    - Disruption of family life ,

    - Personal hardship ;

    2. Employers :

    - Heavy losses due to stoppage of production ;

    - Reduction in sales , loss of markets ;

  • 8/3/2019 3. IR Unit

    15/148

    3. Society :

    - Problems of law and order ;

    4. National Economy :

    - Impoverishment of people actually involved in the

    stoppage ,

    - If the output of the industry under the dispute is base

    for other industries it results in loss of output , leading

    to reduction in National income ;

  • 8/3/2019 3. IR Unit

    16/148

    Strikes :

    Industrial Disputes Act ,1947 , Section 2 (q) :

    a cessation of work by a body of personsemployed in any industry acting in combination ,or a concerted refusal under a commonunderstanding of a number of persons who are or

    have been so employed to continue to work or toaccept employment .

    Elements of Strike :

    - Plurality of workmen ;

    - Cessation of work or refusal to do work ; and

    - Combined or concerted action .

  • 8/3/2019 3. IR Unit

    17/148

    Types of Strikes

    Industrial Disputes

    Strikes

    Primary Secondary Others

    - Stay away - Sympathy - General

    - Sit down / Stay in - Particular/ tool down - Political

    / Pen down - Bandh

    - Go- slow

    - Token / protest- Lightning / cat call

    - Picketing and Boycott

    - Gherao

  • 8/3/2019 3. IR Unit

    18/148

    1. Stay away :

    - workmen simply do not come to the work place duringprescribed working areas .

    - They organise rallies and demonstrations to drawattention of the employer to their grievances ;

    2. Sit -down / stay-in:

    Sit down - Group of employees or others interested inattaining certain objectives in a particular business takepossession of property of that business , establish themselvesin the plant , stop its production and refuse access to theowners or to others desiring to work .

    Tool /Pen down - employees lay down their tools /pen andrefrain from doing work though they remain on job inworkplace.

  • 8/3/2019 3. IR Unit

    19/148

    3. Go slow :

    Deliberately delaying of production by workmen pretending

    to be engaged in the factory .

    4. Token / Protest :

    - A short duration strike and is of the nature of signal of

    danger ahead .- The purpose is to exert moral persuasion rather than to

    precipitate a crisis ;

    - Intention is not to disrupt the business of employer but

    to communicate to him the sentiments of employees onmatters of issue.

  • 8/3/2019 3. IR Unit

    20/148

    5. Lightning / Cat-call:

    - Such type of strike is suddenly announced , generally byway of surprise without notice or at very short noticeand thereafter the issues in dispute are discussed .

    - Generally legal , except where notice is to be furnished .

    6. Picketing and Boycott :

    Picketing is an act of posting pickets and implies marchingor patrolling of workmen in front of the premises of theemployer , carrying and displaying signs /banners for the

    purpose of preventing others from entering the place .Boycott voluntary withdrawal of cooperation .

    - Not unlawful , unless coercion , threat , violence etc. areinvolved

  • 8/3/2019 3. IR Unit

    21/148

    7. Gherao :

    Physical blockade of a target by encirclement , intended to

    block the egress and ingress from and to a particular office, workshop , factory or residence or forcible occupation .

    - Target may be a place / persons etc.

    - Object of gherao is to compel those who control industryto submit to the demand of workers without recourse to

    the machinery provided by law and in disregard of it.

    - All workmen guilty of wrongfully restraining any person

    or wrongfully confining him during gherao may be foundguilty under Indian Penal Code

  • 8/3/2019 3. IR Unit

    22/148

    Secondary Strike

    Sympathetic :

    - Strike in which striking workmen have no

    demands or grievances of their own against their

    employer but they may go on strike for thepurpose of directly aiding or supporting others in

    their cause .

    - Strike is unjustifiable invasion of the rights of

    employers and is generally unlawful .

  • 8/3/2019 3. IR Unit

    23/148

    When are Strikes justified :

    1. when launched for economic demands , such asbasic pay , dearness allowance , increment , leave and

    other fringe benefits which are primary objective of

    a TU. Strike launched for political or for reasons

    other than trade union objective are not justified .

    2. When existing facilities are summarily withdrawn,

    or when the provident fund is closed and rationbenefits are withdrawn

  • 8/3/2019 3. IR Unit

    24/148

    3. If there is any unfair labour practice on the part ofmanagement a strike is justified

    4. The demands of workmen should be reasonable and

    legitimate so that there is a primafacie justification for the

    demands . The demands should not be frivolously raised or

    for ulterior reasons . When the demands are excessive andunreasonable , or when an agitation is launched though

    demands are already settled , then any strike to enforce the

    said demands cannot be said to be justified .

    5. When there is no response from the management in

    spite of refering a demand and issuing a reminder , a strike

    is justified.

  • 8/3/2019 3. IR Unit

    25/148

    Principle of Commensurability

    Evolved by Federal Court of Germany for judging the

    legality of a strike :

    1. The strike must be appropriate for attaining legitimate

    goals, consistent with subsequent industrial peace ;

    2. The strike must take into account economic possibilities ,

    keeping the public interest in view ;

    3. The strike must be necessary in the light of facts and

    should be used as the last resort after exhausting all

    other possibilities and procedures like , for instance ,

    arbitration in the dispute ;

    4. The strike must be a fair fight . It must not have the aim

    of destroying the opponents .

  • 8/3/2019 3. IR Unit

    26/148

    5. Rules of the union and collective agreements generally

    cast a duty for ensuring maintenance and other emergency

    work , which includes the following elements :

    a) Work for protecting the firm and averting danger to

    public arising from the firm .

    b) Measure for maintaining the firms plant and equipment

    so that work can be resumed immediately , once thestrike is over.

    c) Protection of vulnerable raw material and finished

    product to ensure that resumption of work is not

    jeopardised at the end of the industrial action .

  • 8/3/2019 3. IR Unit

    27/148

    Collective Bargaining

    - Made of two words collective group action through its

    representatives and bargaining - negotiation.

    - Term coined by Sydney and Beatrice Webb of Great

    Britain which is said to be the home of collective

    bargaining;

    - Originated as trade union activity ;

  • 8/3/2019 3. IR Unit

    28/148

    Evolution of Collective Bargaining

    In India :

    - 1918, Gandhiji as a leader of the Ahmedabad Textileworkers , advocated the resolution of conflict by mutual

    negotiation and discussion between employers and

    workmen .The Ahmedabad pattern of CB superheaded by

    Gandhiji has influenced Government legislation in India.

    In Britain :

    - Process of Joint Production Committee (JPC) originated in

    Whitley Councils of World War I , was given renewed

    emphasis during World War II and further reinforced after

    1945 with national objective of increasing productivity.It

    offers an opportunity for a two way communication

    process between management and workers.

  • 8/3/2019 3. IR Unit

    29/148

    USA

    - The Joint Production Committee was introduced during

    World War II , but disappeared after World War II.

    Both USA and Great Britain shared a common faith in CB

    as the heart of their Industrial systems . But in Britain it

    was more centralised due to small size of the country .

  • 8/3/2019 3. IR Unit

    30/148

    Definitions :

    Collective Bargaining is a negotiation between an employeror group of employers and a group of working people to

    reach an agreement on working conditions

    - The Encyclopaedia Britannica

    Collective Bargaining is a process of negotiation and other

    related pressure tactics (like threats , counter-threats )

    adopted by the employers and the organised workers

    represented by their union in order to determine the termsand conditions of employment.

  • 8/3/2019 3. IR Unit

    31/148

    Subject matter of Collective Bargaining

    - Union recognition and scope of bargaining unit ;

    - Management rights ;

    - Union Security ;

    - Strikes and Lockouts

    - Union activities and responsibilities ;

    - Wages ;

    - Working hours and working conditions ;

    - Job rights and seniority ;

    - Discipline , suspension and Discharge ;- Grievance Handling and Arbitration ;

    - Health and Safety ;

    - Insurance and Benefit Programmes.

  • 8/3/2019 3. IR Unit

    32/148

    Factors responsible for successful CB

    - Given by Lester and Sister:

    1. Economic environment factors ;

    2. Psychological factors and structure of power relation ;

    3. Nature and Characters of the product market ;4. Nature of the labour market ;

    5. Capital requirement and cost conditions ;

    6. State of business conditions ;

    7. Types of industrial relationship :

    - employers attitude

    - workers attitude

    - Government policy.

  • 8/3/2019 3. IR Unit

    33/148

    Importance of Collective Bargaining

    - best suited to the concept of industrial democracy ;

    - Ensures important status for workers ;

    - Ensures industrial peace ;

    - Not only a method of settling disputes , but also its

    prevention ;

    - Fosters responsibility on part of both workers and

    employers.

    - Presupposes workers right to strike and employers right

    to lockout ie both the parties are conscious that if CB

    fails there will be a loss to employer and workers both

    - Better than external statutory regulation which often

    involves cumbersome , expensive and long drawn legal

    proceedings and leaves a bitterness on the party which

    looses dispute.

  • 8/3/2019 3. IR Unit

    34/148

    Principles of Collective Bargaining

    - Arnold F. Campo

    For Union and Management :

    1. an educational as well as a bargaining process.

    2. means of finding the best possible solution.

    3. Both parties to a dispute should command

    mutual respect.

    4. Mutual confidence ,good faith, and a desire tomake CB effective in practice .

  • 8/3/2019 3. IR Unit

    35/148

    5. honest , able and responsible leadership.

    6. Two parties should observe and abide by all thenational and state laws which are applicable to

    CB.

  • 8/3/2019 3. IR Unit

    36/148

    For the Management :

    1. develop and consistently follow a realistic labour

    policy.

    2. grant recognition to TU.

    3. create the conditions in which grievances of the

    employees are settled even before the TUbrings them.

    4. greater emphasis on social considerations.

  • 8/3/2019 3. IR Unit

    37/148

    For Trade Unions

    1. should eliminate racketeering and other

    undemocratic practices.

    2. have obligations to assist management in the

    elimination of waste and in improving quality

    and quantity of production.3. resort to strikes only when all other methods of

    settling a dispute have failed ;

    4. should appreciate the economic implications of

    CB;

  • 8/3/2019 3. IR Unit

    38/148

    3. TU should to bring about satisfactory

    results.

    4. TU Leaders, for their demands are

    generally met from the income and

    resources of the organisation in whichthey are employed .

  • 8/3/2019 3. IR Unit

    39/148

    Forms of Collective Bargaining

    1. Single Plant Bargaining- between management and a single TU .

    2. Multiple Plant Bargaining

    - A single factory or establishment havingseveral plants and workers employed in

    all these plants.

    3. Multiple employer bargaining- Between all TUs of the same industry and

    employers federation . Ex. Textile industry

  • 8/3/2019 3. IR Unit

    40/148

    A. Developing a Bargaining Relationship

    1. Recognition of Bargaining Agent :

    (in case if there are multiple TUs , selection

    could be made on the basis of following )

    a. Selection of representative union by secretballot ;

    b. Selection through verification of

    membership by some government agency ;

    c. Bargaining with joint committee of all

    major unions;

  • 8/3/2019 3. IR Unit

    41/148

    d. Bargaining with a negotiation committee

    in which different unions would be

    represented in proportion to their verifiedmembership ;

    e. Bargaining with a negotiation committee

    which consists of elected representative of

    every department of the organisation

    selected by secret ballot, irrespective oftheir union affiliations .

  • 8/3/2019 3. IR Unit

    42/148

    2. Level of Bargaining :

    - at the level of the enterprise ;

    - at the level of the entire industry in thecountry / at national level;

    - at the level of the industry in a particular

    region regional industry level.

    3. Scope and Coverage of Collective Bargaining :

    - wages , bonus , promotion etc. is yet it is

    considered advantageous , both for managementand TU to cover many issues of interest to

    both parties as possible.

    2 P f N ti ti d i B i i

  • 8/3/2019 3. IR Unit

    43/148

    2. Process of Negotiation during Bargaining

    a. The negotiation stage and

    b. The stage of contract administration.

    Negotiation Stage :

    a. Preparation for negotiation- Huge data collection on various issues ;

    - Management collects this data from government

    , research staff etc.

    - TUs collect data from their own central

    organisations.

    P l d t t t th bj ti hi h

  • 8/3/2019 3. IR Unit

    44/148

    - Personnel department sets the objectives which

    are proposed to be achieved through negotiation

    and which are related to anticipated TU demands

    . However top managements approval isobtained on :

    i. The specific proposals of the company, including

    objectives of negotiation ;

    ii. An appraisal of the cost of implementing the

    proposals if they are accepted by the two parties

    ; and

    iii. An approval in principle of the demands ofthe TU over which bargaining has to be made,

    the demands which are acceptable and which

    are not acceptable .

    b N ti ti T h i / P d

  • 8/3/2019 3. IR Unit

    45/148

    b. Negotiation Technique / Procedure :

    - Negotiation committee must ideally have

    3-6 members

    - Management Committee has a chief

    spokesman / principal negotiator

    - Committee plans the negotiations while

    chief negotiator evolves a strategy ofaction and tactics to be adopted during

    negotiations .

  • 8/3/2019 3. IR Unit

    46/148

    Union Demands could be analysed and classified

    into three categories :

    i. demands which may possibly be met ;ii. Demands which may be rejected ;

    iii. Demands which call for hard bargaining.

    CB culminates in an agreement which is known as

    Labour contract / Union contract / Labour-

    management agreement ie. A statement of the

    terms and conditions of service which have been

    arrived at between the two parties

  • 8/3/2019 3. IR Unit

    47/148

    c. Follow up action :

    Agreement should be printed and

    circulated among all the employees so

    that they know exactly what has been

    agreed upon between management and

    their representatives

  • 8/3/2019 3. IR Unit

    48/148

    B. Contract Administration

    Once the agreement is signed , both TUand management are required to honour it

    in letter and spirit . Union officers and

    company executives should explain the

    terms and implications of the contract to

    employees and supervisors with a view to

    ensure that day-to-day working relationship

    between workers and management isguided by that contract .

    Campo laid down principles which must act

  • 8/3/2019 3. IR Unit

    49/148

    Campo laid down principles which must act

    as guidelines for persons administering

    contract :

    1. For Union and Management :

    - both should make genuine effort to

    establish and strengthen the machinery

    for CB and make it function effectively .

    - proper procedure should be adopted for

    redressal of grievances.

    - both parties should see to it that every

    commitment made by either is

    scrupulously honoured.

  • 8/3/2019 3. IR Unit

    50/148

    For the Management

    Management should avoid paternalism and strive to

    treat the TU representatives and its employees asequals .

    Management should be available for conferences

    with workers representatives so that it may acquire

    first hand knowledge of the changing attitudes and

    problems of the employees.

    Management should see to it that its top executives

    and all those who may have anything to do withtheir implementation , understand the terms of

    agreement that it may have arrived at with its

    employees and / or their representatives.

  • 8/3/2019 3. IR Unit

    51/148

    For the TUs

    TU must see that its members understand the

    terms of the agreement it has reached with the

    management ;

    TU should assume responsibility and see to itthat its members meticulously observe the terms

    of the agreement ;

    Union representatives should make themselves

    available for a conference whenever they are

    required to do by the management.

  • 8/3/2019 3. IR Unit

    52/148

    Collective Bargaining in India

    Factors fostering Collective Bargaining in India

    1. Statutory provisions , which have laid down some

    general principles of negotiation , procedure for

    collective agreements and the character of the

    representation of the negotiating parties.

    2. Voluntary measures , such as tripartite

    conferences, joint consultative boards and

    industrial committees at the industry level haveprovided an ingenious mechanism for the

    promotion of CB practices.

    3

  • 8/3/2019 3. IR Unit

    53/148

    3. The measures like schemes for workers education ,participation of labour in management , evolution of Code of

    Inter-Union Harmony, the Code of Efficiency and Welfare, the

    Code of Discipline, the formation of joint management councils,work committees and shop councils and the formulation of

    grievances redressal procedure at plant level - have

    encouraged growth of CB.

    4. The Industrial Truce Resolution (1962) has also influenced

    the growth of CB. The Resolution required managements and

    workers to strive for constructive cooperation in all possible

    ways and enjoined on them to resolve their disputes

    peacefully through mutual discussion,conciliation and

    voluntary arbitration.

  • 8/3/2019 3. IR Unit

    54/148

    5. The amendment to the Industrial Disputes

    Act 1964, provided for the termination of an

    award or a settlement only when a proper

    notice to that effect was given by a majority

    of workers and not by any TU representing

    a minority . They also ensure that theagreements or settlements, which are arrived

    at by a process of negotiation or conciliation

    , are not terminated by a section of theworkers.

  • 8/3/2019 3. IR Unit

    55/148

    Recent trends in Collective Bargaining

    CB in India is shifting from traditional issues

    like wages , DA ,employment conditions to non-

    traditional issues like welfare facilities ,fringe

    benefits ;

    Following items are included :- House Rent Allowance : recommended in Fourth

    Pay Commission ,all government employees are

    entitled to fixed HRA on the basis of category of

    city in which it resides.

    - Leave Travel Concession : tax free benefit , in form

    of one or one and half month salary with 10-15

    days of privilege leave to travel.

  • 8/3/2019 3. IR Unit

    56/148

    - Educational allowance

    Fourth Pay Commission makes a specific reference

    to payment of educational allowance for thechildren of employees. Generally covers cost of

    tuition fees, books, uniform etc.

  • 8/3/2019 3. IR Unit

    57/148

    National Commission on Labour on CB

    Recommendations of 1st National Commission on

    Labour (1969) on CB:

    1. In the absence of arrangements for statutory

    recognition of unions except in some States and

    provisions which required employers and workers to

    bargain in good faith , it is no surprise that

    reaching of collective agreements has not much

    made headway in our country . Nonetheless, the

    record of collective agreements has not been asunsatisfactory as it is popularity believed . Its

    extension to a wider area is certainly desirable .

  • 8/3/2019 3. IR Unit

    58/148

    2. There is a case for shift in emphasis and increasingly

    greater scope for and reliance on CB. Any sudden change

    replacing adjudication by a system of CB is neither called

    for nor is practicable. The process has to be gradual . Abeginning has to be made in the move towards CB by

    declaring that it will acquire primacy in the procedure of

    settling industrial disputes.

    3. Conditions have to be created to promote CB . The most

    important among them is statutory recognition of a

    representative union as the sole bargaining agent. The place

    which strikes /lockout should have in the overall scheme ofindustrial relations needs to be defined ; CB cannot exist

    without the right to strike /lockout.

    Recognition of Unions

  • 8/3/2019 3. IR Unit

    59/148

    Recognition of Unions

    A TU seeking recognition as a bargaining agent from an

    individual employer should have a membership of at least

    30% of workers in the establishment . The minimummembership should be 25 % if the recognition is sought for

    an industry in a local area .

    Recommendations of National Commission on Labour

    1. Recognition should be made compulsory under a Central

    Law in all undertakings employing 100 or more workers or

    where the capital invested is above a stipulated size. A TU

    seeking recognition as a bargaining agent from anindividual employer should have a membership of at least

    30 % of the workers in the establishment. The minimum

    membership should be 25% if recognition is sought for

    local area.

  • 8/3/2019 3. IR Unit

    60/148

    2. The Industrial Relations Commission is to certify the

    Union as a representative union on the basis of either

    verification of membership of the contending unions or

    by a secret ballot open to all workers in theestablishment . The commission will deal with various

    aspects of union recognition such as (i) determining the

    level of recognition whether plant , industry , centre-cum-

    industry ,to determine which is the majority union ; (ii).

    Certifying the majority union as a recognised union for

    collective bargaining ; and (iii). Generally dealing with

    other related matters .

    3. The minority unions should be allowed only the right to

    represent cases of dismissal and discharge of their

    members before the Labour Court .

    3. The recognised union should be statutorily given certain

  • 8/3/2019 3. IR Unit

    61/148

    g y g

    exclusive rights and facilities , such as the right of sole

    representations; the right to enter into collective

    agreements on terms of employment and conditions of

    service ; the right to collect membership subscriptions

    within the premises of the undertaking ; the right of

    check-off ; holding discussion with departmental

    representatives within factory premises , inspecting , by

    prior agreement , the place of work of any of itsmembers and nominating its representatives on works /

    grievance committees and other bipartite committees ;

    4. The unions should be made strong , organisationally andfinancially .

    Multiplicity of unions and intra-union rivalries

  • 8/3/2019 3. IR Unit

    62/148

    Multiplicity of unions and intra-union rivalries

    should be discouraged :

    - providing compulsory registration of unions ;

    - raising the minimum number required for

    forming a union ;

    - raising the minimum membership fees ;

    - reduction in the number of outsiders ;

    - Taking steps to build internal leadership .

    L k t

  • 8/3/2019 3. IR Unit

    63/148

    Lockouts

    lockout means the closing of a place ofbusiness or employment or the suspension

    of work, or the refusal by an employer to

    continue to employ any number of personsemployed by him

    Sec. 2 (1),Industrial Dispute Act

    1 A Lockout is the closure of an Industrial

  • 8/3/2019 3. IR Unit

    64/148

    1. A Lockout is the closure of an Industrial

    undertaking because of the existence of

    or apprehension of an industrial dispute ,

    violence and damage to property ;

    2. It is the suspension of employment in sofar as the employer refuses to give work

    to the workmen until they yield to his

    demand or withdraw the demands made

    on him or because of closing down of a

    place of employment and the suspension

    of the work.

  • 8/3/2019 3. IR Unit

    65/148

    3. A lockout is an antithesis of a strike . Just

    as the employees can go on a strike , so

    the employer has a weapon against the

    employees to lock them out of his

    premises and not allow them to return to

    work.

    4 A lockout is used with some intention i e

  • 8/3/2019 3. IR Unit

    66/148

    4. A lockout is used with some intention , i.e.

    To coerce or force workmen to come to

    terms. The lockouts , thus , necessarily

    involve an overt act on the part of the

    employer and an element of motive of ill-

    will. In the absence of this overt-act , the

    temporary suspension of work would notamount to a lockout and the workmen

    cannot claim wages for the period of

    closure .

    Following do not constitute lockout :

  • 8/3/2019 3. IR Unit

    67/148

    Following do not constitute lockout :

    1. Prohibiting an individual employee is not a

    lockout ;

    2. Termination of employment by retrenchment

    does not amount to a lockout ;

    3. Termination of services of more than oneperson at the same time would not be a

    lockout.

    4. Declaration of a lockout by an employer merely

    on the ground that the workmen have refrained

    from attending to work is not a lockout .

    Consultative Machinery :

  • 8/3/2019 3. IR Unit

    68/148

    Consultative Machinery :

    to bring the parties together for mutual

    settlement of differences in a spirit of co-operation and goodwill

    Tripartite Bodies in IndiaSet up by government to provide a forum

    of discussion and consultation on various

    labour-related issues .

  • 8/3/2019 3. IR Unit

    69/148

    1. Indian Labour Conference :

    Function to advise the Government of India on

    any matter referred to it for advice , taking intoaccount suggestions made by the provincial

    government, the states and representatives of the

    organisations of workers and employers

    Central Government in consultation with allIndia

    organisations of workers and employees

    ,nominated representatives of workers andemployers .

    2. Standing Labour Commission

  • 8/3/2019 3. IR Unit

    70/148

    2. Standing Labour Commission

    Function to consider and examine such

    questions as may be referred to it by Plenary

    Conference or the Central Government, and to

    render advice taking into account the suggestions

    made by various governments, workers andemployers .

    Evaluation of ILC and SLC:

  • 8/3/2019 3. IR Unit

    71/148

    Evaluation of ILC and SLC:

    According to the National Commission on Labour

    , these two bodies have immensely contributed

    to attainment of the objectives set before them.

    the ILC /SLC have facilitated the enactment of

    Central legislation on various subjects to bemade applicable to all the states and union

    territories in order to promote uniformity in

    labour legislation . Tripartite deliberations helped

    to reach a consenus, inter alia,

    - on statutory minimum wage fixation (1944) ,

    - introduction of a health insurance scheme (1945);

  • 8/3/2019 3. IR Unit

    72/148

    ( );

    - Enactment of the Standing Employment Order Act

    (1946);

    - The Industrial Disputes Act (1947)

    - Enactment of Minimum Wages Act (1948);

    - Dock Workers Regulation of Employment Act

    (1948);- The Employees State Insurance Act ,1948 ;

    - Provident Fund Scheme 1950;

    - The Mines Act ,1952- The Employees Provident Fund Act ,1952

    and making of legislation concerning payment of

    bonus , regulation and abolition of contract labour

    The tripartite deliberations also facilitated the

  • 8/3/2019 3. IR Unit

    73/148

    The tripartite deliberations also facilitated the

    formulation of comprehensive procedures for the

    settlement of disputes under the Industrial

    Disputes Act,1947 . Both the inception of LabourAppelate Tribunal in 1950 and its abolition in

    1956 were the result of such deliberations . The

    range of subjects discussed at the forums of ILC /

    SLC has been large and has included social ,

    economic and administrative matters concerning

    labour policy

    - workers education , workers participation in

    management, Code of Discipline etc.

    3. Committee on Conventions

  • 8/3/2019 3. IR Unit

    74/148

    3. Committee on Conventions

    - Three-man Tripartite committee set-up in

    1954.

    - Objectives:

    - to examine the ILO conventions andrecommendations which have not so far been

    ratified by India; and

    - To make suggestions with regard to a phased

    and speedy implementation of ILO standards

    4. Industrial Committees :

  • 8/3/2019 3. IR Unit

    75/148

    - First committee was constituted in 1947 ;

    - Relating to plantations , cotton textiles , jute , coal-

    mining , mines other than coal , cement , tanneries

    and leather goods manufactures , iron and steel ,

    building and construction industry , chemical

    industries , road transport , engineering industries ,metal trades , electricity , gas and power and

    banking .

    5. Other Tripartite Committees:

    a. Steering Committee on Wages : set up in 1956

    as a study group on wages ;

    Functions :

  • 8/3/2019 3. IR Unit

    76/148

    - To study trends in wages , production and prices ;

    - To plan collection of material for drawing up a

    wage map of India ; and

    - To draw up reports from time to time for laying

    down principles which will guide wage fixing

    authorities .

    b. National Productivity Council :

    Consists of representatives of the government ,employers associations , labourers associations ,

    labourers organisations and certain independent

    experts.

    Bipartite Bodies :

  • 8/3/2019 3. IR Unit

    77/148

    Bipartite Bodies :

    - Purely consultative committees and notnegotiative .

    - Equal representation of employers and the

    workers ;

    - First recognised in 1920s ;

    - Two important constituents :

    - Works Committee

    - Joint Management Council

    1. Works Committee

  • 8/3/2019 3. IR Unit

    78/148

    - Formed by any enterprise employing 100 or more

    workers ;

    - Total number of members not to exceed 20 ;- Structure :

    - a chairman appointed by employer ;

    - a vice-chairman members of committee ;

    - secretary and a joint secretaryeither employer /worker

    - Functions promote measures for securing and

    preserving amity and good relations between the

    employer and the workmen; and to that end,commentupon matters of their common interest or concern

    and endeavour to compose any material difference of

    opinion in respect of such matters Sec. 3 (1)(2) IDA -

    1947

    - Supply of drinking water , ventilation , temperature , rest-

  • 8/3/2019 3. IR Unit

    79/148

    pp y g , , p ,

    room , medical and health services , safe working

    conditions ; administration of welfare funds , educational

    and recreational activities etc.

    2. Joint Management Councils :

    Concept is implicit in the staement of Industrial Policy

    Resolution, April 1956 :In a sociolaist demcracy , labour is a partner in the

    common task of development and should participate in it

    with enthusiasm. There should be joint consultation ,

    workers and technicians should , wherever possible, be

    associated progressively in management . Enterprises in

    the public sector have to set an example in this respect

    Standing Orders and Grievance Procedure

  • 8/3/2019 3. IR Unit

    80/148

    Standing Order:

    - Refer to the rules and regulations which govern the

    conditions of employemnt of workers.- specify duties and responsibilities on the part of both

    employer and employee

    First legislative enactment was Bombay Industrial DisputesAct, 1932 (Sec. 26 Chapter V):

    Every employer, in respect of any industry or occupation

    to which this Section has been applicable, shall within 2

    months from the date of such application, submit to theCommissioner of Labour for approval in such manner as

    may be prescirbed, Standing Orders regulating the

    relations between him and his employees with regard to

    industrial matters mentioned in Schedule I

    Matters mentioned in Schedule I were :

  • 8/3/2019 3. IR Unit

    81/148

    Matters mentioned in Schedule I were :

    1. Classification of Employees - whether permanent

    , temporary, apprentices, probationers, or badlis ;

    2. Manner of notification to employees of the

    period and hours of work , holdays , pay-days

    and wage rates ;3. Shift working ;

    4. Attendance and late coming ;

    5. Leave and holidays and conditions , procedure

    and authority for the grant of these ;

    6. Liability to search and entry into premises

    through certain gates ;

    7. Temporary stoppages of work and rights and

  • 8/3/2019 3. IR Unit

    82/148

    e po a y s oppages o o a d g s a d

    liabilities of employers and employees arising

    therefrom ;

    8. Termination of employment and notice to be

    given by employer and employees ;

    9. Suspension or dismissal for misconduct and acts

    of omissions which constitutes misconduct ; and

    10. Means of redress for employees against unfair

    treatment or wrong exactions on the part of

    the employer or his agent or servant .

    Industrial Employment (Standing Orders) Act was

  • 8/3/2019 3. IR Unit

    83/148

    enacted in 1946 , with a view to regulate :

    - the conditions of recruitment ;

    - discharge ;

    - disciplinary action and

    - holidays of the workers employed in industrial

    undertaking .

    Industrial Employment (Standing Orders) Act was

    amended in 1982 to provide for the payment ofsubsistence allowance to workmen who were

    kept under suspension , pending a domestic

    enquiry .

    Industry

  • 8/3/2019 3. IR Unit

    84/148

    Employer Workmen

    Dispute

    Mutually settled Fails to get settled

    Agreement (Sec.18 (1))

    Conciliation Officer

    Talks fail Talk Succeed (SettlementSec. 12(3))

    Failure report to appropriate Government

    Does not refer for adjudication Refer for adjudication(Parties free to lockout or strike)

    Labour Court Industrial Tribunal National Tribunal

    AWARD (binding for atleast one year)

    Grievances

  • 8/3/2019 3. IR Unit

    85/148

    Grievances

    Grievances are the claims by workers of a Trade

    Union concerning their individual or collective rightsunder an applicable collective agreement , individual

    contract of employment , law, regulations, work rules,

    custom or usage.

    Views of National Commission on Labour

    1. There should be a statutory backing for the

    formulation of an effective grievance procedurewhich should be simple, flexible, less cumbersome

    and more or less on the lines of the Model

    Grievance Procedure

    2 . It should be time-bound and have a limited

  • 8/3/2019 3. IR Unit

    86/148

    number of steps, namely :

    - approach to the immediate supervisory staff

    - appeal to the bipartite grievance committee

    representing management and the recognised

    union . In rare cases, where unanimity eludes

    the committee, the matter may be referred toan arbitrator

    3. A grievance procedure should be such that it givesa sense of satisfaction to the individual worker,

    ensures reasonable exercise of authority to the

    manager and a sense of participation to unions.

    4. The constitution of the grievance committee

  • 8/3/2019 3. IR Unit

    87/148

    should have a provision that in case a

    unanimous decision is not possible , the

    unsettled grievance may be referred toarbitration . At the earlier stages, a worker

    should be free to be represented by a co-

    worker and later by an officer of the union, if

    one exists.

    5. It should be introduced in all units employing

    100 or more workers.

  • 8/3/2019 3. IR Unit

    88/148

    G i P d

  • 8/3/2019 3. IR Unit

    89/148

    Grievance Procedure

    Grievance Procedure

  • 8/3/2019 3. IR Unit

    90/148

    The Code of discipline, adopted in the 16th session of

    the Indian Labour Conference, highlighted the need for

    a model grievance procedure as under:

    a) The aggrieved employee to present grievance

    verbally in person to the officer designated for thispurpose, who shall give an answer within 48 hours.

    b) If the employee is not satisfied with the decision, hecan, accompanied by a union representative, present

    the grievance in writing to the head of the department,

    who shall settle it within 3 days.

    c) If the workman is still dissatisfied, he may request

  • 8/3/2019 3. IR Unit

    91/148

    the departmental head to refer the matter to the

    grievance committee, which normally consists of equal

    representatives of management and the union. Thegrievance committee shall submit its recommendations

    to the manager concerned within 7 days of receipt of

    the grievance. Unanimous recommendations shall be

    straight away implemented by the management. In anycase, the decision should be is communicated to the

    employee by the personnel officer within 3 days of the

    receipt of the recommendations of the grievance

    committee.

  • 8/3/2019 3. IR Unit

    92/148

    d) If dissatisfied with the decision, the employee has a

    right of appeal to the higher tier of management for

    revision. A decision on the appeal should becommunicated within 7 days.

    e) If still not satisfied with the decision, the union mayask for voluntary arbitration in the matter.

    Indiscipline / Misconduct

  • 8/3/2019 3. IR Unit

    93/148

    Discipline first, it is the training that corrects,moulds, strengthens or perfects individual behaviour ;

    second , it is control gained by enforcing obedience ;

    and third , it is punishment or chastisement

    - Websters Dictionary

    Misconduct is a transgression of some established

    and definite rules where no discrimination is left tothe employee.

    Causes of Misconduct

  • 8/3/2019 3. IR Unit

    94/148

    1. unfair labour practices and victimisation on the

    part of employers, like wage differentials ,unreasonable declaration of payment or non-

    payment of bonus ,wrongful works assignment,

    defective grievance procedure etc. ;

    2. Bad service conditions ,defective communication

    by superiors and ineffective leadership lead to

    discipline ;

  • 8/3/2019 3. IR Unit

    95/148

    3. Poverty, frustration, indebtedness, generally

    overshadow the minds of the workers. These agitate

    his minds and often results in indiscipline.

    4. Generally speaking absenteeism , insubordination ,

    dishonesty and disloyalty , violation of plant rules ,gambling , incompetence , damage to machine and

    property , strikes , etc. , all lead to industrial

    indiscipline.

    Model Standing Orders , Clause 14

  • 8/3/2019 3. IR Unit

    96/148

    Acts and omissions which are generally regarded

    as misconduct and provide for disciplinary action.

    Wilful insubordination or disobedience whether

    alone or in combination with others , to any

    lawful and reasonable order of a supervisor ;

    Theft , fraud or dishonesty in connection withemployers business or property ;

    Wilful damage to , or loss of , employers goods

    or property ; Taking or giving bribes or any illegal gratification ;

    Habitual negligence or neglect of work ;

    Habitual absence without leave or absence

  • 8/3/2019 3. IR Unit

    97/148

    without leave for more than ten days .

    Habitual breach of any law applicable to the

    establishment;

    Riotous or disorderly behaviour during working

    hours at the establishment or any subversive of

    discipline; Frequent repetition of any act or omission for

    which a fine may be imposed to a maximum of

    two per cent of the wages in the month ;

    Restoring to a strike or inciting others to go on

    a strike in contravention of the provisions of any

    law or rule having the force of law.

    Disciplinary Action

  • 8/3/2019 3. IR Unit

    98/148

    Disciplinary Action

    Principles to conform disciplinary action :

    1. The principal of natural justice must

    guide all enquiries and actions . No party

    of interest should be involved in this.

    2. The principle of impartiality or consistency

    .No marked difference should be their in

    identical situations .

    3. The principle of impersonality , the disciplinary

  • 8/3/2019 3. IR Unit

    99/148

    3. The principle of impersonality , the disciplinary

    authority should not have a sense of elation /

    triumph / sadistic pleasure on punishing the

    employees.

    4. The disciplinary authority should afford

    reasonable opportunity to the offender todefend himself . Article 311 of the Constitution

    of India says: No person employed by the

    Union or a State Government shall be dismissed

    or removed until he has been given a

    reasonable opportunity showing cause against

    the action proposed to be taken in regard to

    him.

    Model Standing Orders lay down beforedi i i l h h ld b i

  • 8/3/2019 3. IR Unit

    100/148

    dismissing an employee , he should be given an

    opportunity to explain the circumstances alleged

    against him.

    Procedure for Punishment :

    1. Framing and issuing a chargesheet2. Receiving the Defendents Explanation

    3. Issuing Notice of Enquiry

    4. Holding the Enquiry

    5. Findings of the Enquiry Officer

    6. Decision of the Disciplinary Authority

    7. Communication of the Order of Punishment

    Termination of Employment

  • 8/3/2019 3. IR Unit

    101/148

    p y

    1. Voluntary abandonment of service by the

    employee2. Resignation by the employee

    3. Discharge by notice thereof given by the

    employer4. Discharge or dismissal by the employer as a

    punishment for misconduct

    5. Retirement on reaching the age of

    superannuation.

    Mediation and Conciliation

  • 8/3/2019 3. IR Unit

    102/148

    Conciliation encourages the parties to discuss their

    differences and to help them develop their ownproposed solutions.

    Mediation is a stronger form of intervention and a

    mediator may be permitted to offer to the parties

    proposals for settlement.

    Both of them refer to different form of third-partyintervention in promoting voluntary settlement.

    Mediation:

  • 8/3/2019 3. IR Unit

    103/148

    Mediation is a process by which a third party

    brings together the opposing groups not only to

    iron out the differences between them but also tofind an answer to problems or specified proposals

    and offer alternative suggestions.

    Kinds of Mediator :

    Prof. Pigou

    1. The eminent outsider;

    2. The non-governmental board ; and

    3. The board connected with some part of the

    governmental system of the country.

    Factors for successful Mediation

  • 8/3/2019 3. IR Unit

    104/148

    1. Climate of consent ;

    2. Mediator must be an impartial and unprejudiced

    person having influence on the parties ;

    3. It should support collective bargaining , and not

    substitute it.

    Conciliation

  • 8/3/2019 3. IR Unit

    105/148

    the practice by which the services of a neutral

    third party are used in a dispute as a means of

    helping the disputing parties to reduce the extent

    of their differences and to arrive at an amicable

    settlement or agreed solution . It is a process or

    rational and orderly discussion of differencesbetween the parties to a dispute under the

    guidance of a conciliator

    - ILO

    Conciliation Machinery in India :

  • 8/3/2019 3. IR Unit

    106/148

    Conciliation Officer :

    According to IDA-1947, the Central and State

    Governments can appoint conciliation officer by a

    notification in the Official Gazette to that effect.

    charged with the duties of mediating in and

    promoting the settlement of industrial disputes. He

    may be appointed for a specified area or for

    specified industries in any area or for one or morespecified industries. He can be permanently

    appointed or for a limited period.

    - Sec. 4 IDA

    Sec. 12 (2) , IDA - he may do all such things as he thinks fit

    for the purpose of inducing the parties to come to a fair

  • 8/3/2019 3. IR Unit

    107/148

    and amicable settlement of the disputes .

    If no settlement is reached , the conciliation officer is

    required to send immediately a full report to the

    appropriate government setting forth the steps taken by him

    and the probable reasons for failure. The report shall

    contain a full statement of the facts and circumstances ofthe dispute . The conciliation officer can only send a report

    but has no authority to pass a final order. He must submit

    the report of the settlement or non-settlement of the

    dispute within 14 days of the commencement of theconciliation proceedings , or within such shorter period as

    may be fixed by the appropriate government. (Sec. 12)

    Sec. 5, IDA -1947 : the Government may also , as

    occasion arises appoint a Board of Conciliation

  • 8/3/2019 3. IR Unit

    108/148

    occasion arises, appoint a Board of Conciliation,

    consisting of a Chairman (who is an independent

    person ie. Unconnected with the dispute or withany industry directly affected by such dispute) and

    two to four other members, to promote the

    settlement of disputes.

    - Conciliation is compulsory in case of Public Utility

    Services , whereas in case of non-public utility

    services , it is not compulsory but trend istowards compulsion.

    Qualities of a Conciliator:

  • 8/3/2019 3. IR Unit

    109/148

    Qualities of a Conciliator:

    - Independence and impartiality ;

    - Should be fit physically and psychologically ;

    - Should be well-acquainted with laws and

    regulations of industrial relations and settlement

    of industrial disputes ;- Well-trained in different aspects of the

    management process ;

    - Ability and versatility to form judgements.

    Types of Conciliation

    1 Voluntary Conciliation : the disputes are referred to

  • 8/3/2019 3. IR Unit

    110/148

    1. Voluntary Conciliation : the disputes are referred to

    the conciliation officer or the Board of Conciliation

    by both parties of their own free will ; they agreeto have their disputes settled by an outsider

    (without any compulsion of law) ; but they are free

    to accept or not to accept the decision .

    2. Compulsory Conciliation : conciliation procedure is

    made compulsory by provisions requiring the

    parties attendance at conciliation proceedings or

    empowering the conciliation authority to compeltheir attendance at such proceedings ,as well as by

    the prohibition of strikes and lockouts without prior

    resort to conciliation.

    Preliminary steps towards Conciliation

  • 8/3/2019 3. IR Unit

    111/148

    A decision has to be taken to submit a dispute

    to conciliation ; A conciliator has to be assigned to the case ;

    Conciliator has to make initial/ exploratory

    contacts with the parties .- he will give them information ;

    - obtain information from them ;

    - establish his relationship with them on a

    positive basis ;

    Conciliator may hold two types of meetings :

    i J i t f tt d d b b th ti d

  • 8/3/2019 3. IR Unit

    112/148

    i. Joint conferences attended by both parties ; and

    ii. Separate meetings with only one party.

    Sequential pattern of Conciliation:

    1. Hard Posture Phase:

    - Each party takes stand of it being correct and

    other party being wrong ;

    - Conciliator acquires information on the partiesposition and of gap which separates them , on the

    basis of which he begins his efforts ;

    2 Search for his Accommodation :

  • 8/3/2019 3. IR Unit

    113/148

    2. Search for his Accommodation :

    - Each party is concerned with protecting its own

    bargaining position ;

    - Conciliators objective is to induce them to adopt

    a flexible attitude and move closer to each other.

    3. Emergency of appropriate mood for settlement of

    compromise:

    - Conciliator encourages and assists the parties to

    make modified proposal and counter-proposals

    Drafting of an agreement :

  • 8/3/2019 3. IR Unit

    114/148

    In case of settlement of dispute , a signed report is

    to be submitted to government as well as partiesconcerned , which indicates the following :

    1. The steps taken by the conciliator to ascertain

    the facts and circumstances relating to thedispute ;

    2. The steps taken to bring about the settlement ;

    3. Full statement of facts and circumstances ;

    4. The reasons for which the settlement could not

    be reached

    Arbitration

  • 8/3/2019 3. IR Unit

    115/148

    Arbitration is a means of securing an award on a

    conflict issue by reference to a third party .

    Conditions for referring a dispute to Arbitration

    IDA 1947 :

    1. An industrial dispute exists or is apprehended in

    an establishment ;

    2. The employer and the workers agree , in writing , to

    refer the dispute to arbitration ;3. The arbitration agreement is in the prescribed form

    and signed by the parties to it in the prescribed

    manner;

    4. The agreement must be accompanied by the

    consent in writing of the arbitrator or arbitrators;

  • 8/3/2019 3. IR Unit

    116/148

    consent , in writing, of the arbitrator or arbitrators;

    5. The dispute must be referred to arbitration at any

    time before it has been referred to a labour courtor tribunal or a national tribunal ;

    6. The reference must be to the person or persons

    specified in the arbitration agreement to act as

    arbitrator / arbitrators ;

    7. The arbitration agreement must set forth the

    issue / issues to be decided by the arbitration

    procedure and a copy of the agreement isforwarded to the government and the conciliation

    officer ;

    Qualification of Arbitrator

  • 8/3/2019 3. IR Unit

    117/148

    1. Understanding of the complexities of the labour-

    management relationship ;

    2. A knowledge of collective bargaining and the

    operation of arbitration procedures, as well as skill

    and experience in the interpretation of collective

    agreements; and familiarity with personnel policies

    ,industrial discipline and human relations ;

    3. Committed to the maintenance of harmonious

    labour-management relations and have a strongbelief in the importance of successful arbitration ;

    4. High integrity , ie should be impartial towards the

    parties ;

  • 8/3/2019 3. IR Unit

    118/148

    parties ;

    5. They must be acceptable to the parties .

    Procedure for Investigation :

    1. Referring the dispute to the arbitrator ;

    2. Collection of data pertaining to the particular

    disputes ;

    3. Investigation of facts and circumstances of thedispute with the objective of ascertaining who

    and what are involved in the dispute ;

    4. Arbitrator may call witnesses , get evidence and

    relevant records and documents , current and the

  • 8/3/2019 3. IR Unit

    119/148

    ,

    past agreements ; ordinances , court decisions,

    statutes (bearing on the case) and arbitrationdecisions by other arbitrators in similar cases ,

    that may suggest a line of reasoning .

    5. Arbitrator has to follow certain principles while

    dealing with a particular dispute :

    - fair hearing , which demands that an

    opportunity must be given to both the parties

    to be heard and cross- examined ;- natural justice, party should have notice of

    proceedings , issues involved and role of the

    party.

    - party should be free to give any evidencewhich is relevant to enquiry and on which it

  • 8/3/2019 3. IR Unit

    120/148

    which is relevant to enquiry and on which it

    relies for it arguments ;

    6. Submission of Award : after investigation , arbitrator

    has to submit his award to the government .

    - award has same legal force as the judgment of a

    labour court or tribunal . The award must be signedby arbitrator ;

    - arbitrator must ensure the following points while

    writing an award:

    - the award is in line with the terms of

    reference and that it does not go beyond its

    jurisdiction ;

    - it must be precise and definite and shouldnot be capable of being misunderstood or

  • 8/3/2019 3. IR Unit

    121/148

    not be capable of being misunderstood or

    misinterpreted ;

    - capable of being enforced or implemented ;

    - should contain a date or a specific period for

    its implementation ;

    - award should not violate any provision of any

    existing law or settlement legally arrived at , or

    one which is binding on parties ;

    - award should contain sufficient justification or

    reasons for settlement arrived at by the

    arbitrator

    Types of Arbitration :

    1 Voluntary : implies that two contending parties

  • 8/3/2019 3. IR Unit

    122/148

    1. Voluntary : implies that two contending parties ,

    unable to compose their differences by

    themselves or with the help of the mediator orconciliator, agree to submit the conflict / dispute

    to an impartial authority , whose decision they

    are ready to accept .

    Essential elements in voluntary arbitration :

    - voluntary submission of dispute to an arbitrator ;

    - Subsequent attendance of witnesses and

    investigations ;

    - Enforcement of an award may not be necessary

    and binding because there is no compulsion .

    Compulsory Arbitration : when the parties are

    required to accept arbitration without any

  • 8/3/2019 3. IR Unit

    123/148

    required to accept arbitration without any

    willingness on their part . When one of the parties

    to an industrial dispute feels aggrieved by an act ofthe other, it may apply to appropriate government

    to refer the dispute to an adjudication machinery.

    Voluntary Arbitration in India

    - In India it became prominent with the advocacy by

  • 8/3/2019 3. IR Unit

    124/148

    In India , it became prominent with the advocacy by

    Mahatma Gandhi of its application to the

    settlement of disputes in the textile industry inAhmedabad ;

    - Bombay Industrial Disputes Act and Bombay Industrial

    Relations Act 1946 recognised voluntary arbitrationas well as the machinery set up by the state for

    composing differences between employers and

    workers ;

    - On ILOs suggestion of voluntary arbitration being a

    better mode of settlement of disputes Government

    of India amended Industrial Dispute Act -1947 , in

    1956 to provide for settlement of industrial disputes

    by voluntary references to arbitration This was

  • 8/3/2019 3. IR Unit

    125/148

    by voluntary references to arbitration . This was

    done in IDA -1947 Section 10 (A) , (which became

    effective from March 10, 1957 ) the parties to adispute can , by written agreement, refer the

    dispute to an arbitrator for arbitration , before it

    has been reffered for adjudication ;

    - National Arbitration Promotion Board :

    To make voluntary arbitration more acceptable to

    parties and to co-ordinate efforts for itspromotion , government appointed National

    Arbitration Promotion Board in July, 1967.

    Functions of the Board are :

    1 To review the position periodically ;

  • 8/3/2019 3. IR Unit

    126/148

    1. To review the position periodically ;

    2. To examine the factors inhibiting a wider

    acceptance of this procedure and suggest measure

    to make it more popular ;

    3. To compile and maintain up-to-date panels of

    suitable arbitrators for different areas and

    industries and to lay down their fees ;

    4. To evolve principles , norms and procedures for the

    guidance of the arbitrator and the parties ;

    5. To advise parties , in important cases, to accept

    arbitration for resolving disputes so that litigation

  • 8/3/2019 3. IR Unit

    127/148

    arbitration for resolving disputes so that litigation

    in courts may be avoided ;

    6. To look into the cause or causes of delay and

    expedite arbitration proceedings , wherever

    necessary ;

    7. To specify , from time to time , the types of

    disputes which would normally be settled by

    arbitration in tripartite decisions .

    Adjudication

  • 8/3/2019 3. IR Unit

    128/148

    Adjudication involves intervention in the dispute

    by a third party appointed by the government forthe purpose of deciding the nature of final

    settlement

    Types of Adjudication :

    When the government gets a report of failure of

    conciliation proceedings , it has to decide whether

    it would be appropriate to refer the dispute toarbitration . The reference of dispute to

    adjudication is at the discretion of the

    government .

    1. Voluntary Adjudication : When both parties , at their

  • 8/3/2019 3. IR Unit

    129/148

    1. Voluntary Adjudication : When both parties , at their

    own accord agree to refer the dispute to

    adjudication , it is obligatory on the part ofgovernment to make a reference. When a reference

    to adjudication is made by the parties , it is called

    Voluntary adjudication.

    2. Compulsory Adjudication : When reference is made

    to adjudication by the government without the

    consent of either or both the parties to thedispute , it is known as Compulsory Adjudication .

  • 8/3/2019 3. IR Unit

    130/148

    Constitution :

    A labour court shall consist of one person only

  • 8/3/2019 3. IR Unit

    131/148

    A labour court shall consist of one person only ,

    who :

    a. Is or has been a judge of a High Court ; or

    b. Has been , for a period of not less than 3

    years , a district judge ; or

    c. Has held any judicial office in India for notless than 7 years .

    No person shall be appointed or continue in the

    office of the labour court if he is not anindependent person , or if he has attained the

    age of 65.

    Duties of Labour court :

    1 To hold adjudication proceedings expeditiously ;

  • 8/3/2019 3. IR Unit

    132/148

    1. To hold adjudication proceedings expeditiously ;

    and

    2. Submit its award to the appropriate government

    as soon as practicable on the conclusion of the

    proceedings .

    Jurisdiction of labour court adjudicates following

    disputes specified in Second Schedule :

    1. The propriety or legality of an order passed by

    an employer under the Standing Orders ;

    2. The application and interpretation of Standing

    Orders ;

    3. Discharge or dismissal of workers, including

    reinstatement of , or grant of relief to, workers

  • 8/3/2019 3. IR Unit

    133/148

    , g ,

    wrongfully dismissed ;

    4. Withdrawal of any customary concession or

    privilege ;

    5. Illegality or otherwise of a strike or lockout ;

    6. All matters other than those specified in theThird Schedule of the Act (i.e. Those matters which

    are within the jurisdiction of industrial tribunals).

    Limitations :

    1 It cannot act as a guardian of an industrial

  • 8/3/2019 3. IR Unit

    134/148

    1. It cannot act as a guardian of an industrial

    establishment ;

    2. Its duty is limited to see whether the enquiry

    satisfies the principles of natural justice .

    Industrial Tribunals

    - Government may appoint one or more industrial

    tribunals for the adjudication of industrial

    disputes relating to any matter , whether specified

    in the Second or the Third schedule ;- Ex. new demands ;

    - It is not a court , but has all necessary attributes

    of a court of justice .

    Constitution :

    A tribunal consists of one or more persons such

  • 8/3/2019 3. IR Unit

    135/148

    A tribunal consists of one or more persons , such

    as:

    1. Are or have been judge(s) of a High Court ;

    2. Are or have been District Judge(s) for a period

    of not less than 3 years ;

    3. Hold or have held the office of the Chairmanor any other member of the Labour Appellate

    Tribunal or any tribunal for a period of not less

    than 2 years.

    - The government may , if it thinks fit, also appoint

    two persons as assessors to advise the tribunal in

    the proceedings before it .

    Functions and Duties of Industrial Tribunal :

    1 May create new obligations or modify contracts

  • 8/3/2019 3. IR Unit

    136/148

    1. May create new obligations or modify contracts

    in the interest of industrial peace ;

    2. Protect legitimate trade union activities and

    prevent unfair practices and victimisation ;

    3. Tribunals are required to give awards based on

    circumstances peculiar to each dispute .

    Jurisdiction :Covers matters specified in Second or Third

    schedule , covering the promotion of social justice :

    Matters specified in Third Schedule are:

    1. Wages, including the period and mode of

  • 8/3/2019 3. IR Unit

    137/148

    g , g p

    payment ;

    2. Compensatory and other allowances ;

    3. Hours of work and rest intervals;

    4. Leave with wages and holidays ;

    5. Bonus , profit-sharing , provident fund andgratuity ;

    6. Shift working , otherwise than in accordance with

    the standing orders ;

    7. Classification of grades ;

    8. Rules of discipline ;

    9. Rationalisation;

    10. Retrenchment of workmen and closure of an

    establishment ;

  • 8/3/2019 3. IR Unit

    138/148

    establishment ;

    11. Any other matter that may be prescribed.

    Twelve Central Government Industrial Tribunals

    cum- Labour Courts.

    - two of each are located in Dhanbad andBombay

    - one each at Asansol , Kolkata , Jabalpur , New

    Delhi , Jaipur , Chandigarh , Kanpur and Bangalore .

    National Tribunals :

  • 8/3/2019 3. IR Unit

    139/148

    Central government may by a notification in the

    Official Gazette constitute one or more nationaltribunals for the adjudication of industrial disputes ,

    which in the opinion of the Central Government ,

    involve questions of national importance or are of

    such nature that industrial establishments situated

    in more than one state are likely to be interested

    in, or affected by such disputes .

    Constitution :

    A national tribunal shall consist of one person

  • 8/3/2019 3. IR Unit

    140/148

    A national tribunal shall consist of one person

    only to be appointed by the Central Government

    , who :

    a. is or has been a judge of a High Court or

    b. Has held the office of the Chairman or any

    other member of the Labour Apellate Tribunalfor a period of not less than 2 years .

    If the Central Government thinks fit , it may

    appoint two persons as assessors to advise the

    national tribunal on the proceedings before it.

    Procedure for settlement of Disputes

    1 Disputes are referred for adjudication to a

  • 8/3/2019 3. IR Unit

    141/148

    1. Disputes are referred for adjudication to a

    labour court , tribunal or national tribunal by the

    government within two weeks of the date of

    receipt of the order of reference , the parties

    representing workers and employers involved in

    the dispute must file a statement of demands

    relating to such issues included in the order of

    reference ;

    2. A copy of this statement must be forwarded toeach one of the opposite parties involved in the

    said dispute ;

    3. After filing of the statement , the date is fixed

    on which the first hearing of the dispute will

  • 8/3/2019 3. IR Unit

    142/148

    take place (this date should be fixed within six

    weeks of the date on which it was referred foradjudication)

    4. The hearing must ordinarily be continued from

    day-to-day and arguments must follow

    immediately after all the evidence has been

    submitted.

    5. The adjudication authority should not ordinarily

    grant an adjournment for a period exceeding a

    week at a time and not more than three

    adjournments in all at the instance of one of

    the parties to the dispute .

    6. The proceedings before a labour court , tribunal

    or national tribunal is deemed to have

  • 8/3/2019 3. IR Unit

    143/148

    commenced on the date of reference of dispute

    for adjudication ;

    7. The proceedings before a labour court , tribunal

    or national tribunal is deemed to have

    concluded on the date of reference of disputefor adjudication ;

    Central Industrial Relations Machinery in India

  • 8/3/2019 3. IR Unit

    144/148

    - Set up in 1945 with Chief Labour Commissioner

    as Head of the Department ;

    - Objective : to make effective the various

    provisions of Industrial Disputes Act - for theprevention , investigation and settlement of

    disputes in the industries in the Central sphere

    and the enforcement of awards, settlemnts of

    labour laws of which the responsibility is vested

    in the Central Government.

    - C.I.R.M is located in Delhi ;

    - Head : Chief Labour Commissioner ;

  • 8/3/2019 3. IR Unit

    145/148

    Head : Chief Labour Commissioner ;

    - Assisted by 31 officers who perform line and

    staff functions ;

    - Has 18 Regional Labour Commissioners heading

    18 respective regions Ajmer , Ahmedabad ,

    Asansol , Bombay, Bangalore, Bhubaneshwar ,Chandigarh, Calcutta , Cochin, Dhanbad, Guwahati,

    Hyderabad, Jabalpur, Kanpur , Madras , New Delhi,

    Nagpur and Patna ;

    - 70 Assistant Labour Commissioners ;

    - 160 Labour Enforcement Officers

    Functions of C.I.R.M. :

    1. Prevention and settlement of industrial disputes

  • 8/3/2019 3. IR Unit

    146/148

    1. Prevention and settlement of industrial disputes

    in industries located in the central sphere (for

    which the Central Government is appropriategovernment under the Industrial Disputes Act,

    1947);

    2. Enforcement of labour laws in industries andestablishments located in the central sphere (for

    which the Central Government is appropriate

    government under the relevant labour laws)

    3. Ad hoc verification of membership of TU in

    major ports

    4. Verification of membership of TUs in

    nationalised banks for identification of the

    i i f ili h i

  • 8/3/2019 3. IR Unit

    147/148

    representative union to facilitate the appointment

    of workers director on the board of directors

    5. Verification of membership of registered trade

    unions affiliated to the Central Trade Union

    Organisations (CTUOs) to determine the strength

    of CTUOs for the purpose of giving

    representation to CTUOs on national and

    international force .

    6. Enforcement of awards and settlements;

    7. Conduct of enquiries into the breaches of code

    of discipline ;

    8. Promotion of Works Committees and workers

    participation in management ;

  • 8/3/2019 3. IR Unit

    148/148

    9. Collection of statistical information in the central

    sphere pertaining to industrial disputes, work

    stoppages, wages , labour situation and labour

    regulation ;

    10. Defence of Court cases and writ petitions arising

    out of implementation of labour laws .