PREVENTION AND SETTLEMENT OF INDUSTRIAL DISPUTES

INDUSTRIAL RELATIONS

Industrial Dispute and individual dispute

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 employment or non-employment or the terms of employment .The dispute has to be between plurality of workman and employer Individual workman cannot raise an industrial dispute

INDUSTRIAL DISPUTE
Industrial Disputes: The causes of industrial disputes are many: psychological, political and economic. Three widely recognized classifications are: 1. income 2. employment; and 3. technical changes. The labor Bureau, India, has classified the causes as: 1. Wage and allowance 2. Bonus 3. Personnel and retrenchment 4. Leave and hours of work 5. Indiscipline and violence and others. It is not possible to find out one single important cause of an industrial dispute because a dispute is the culmination of many causes some visible and others not so visible. An analysis of the causes of industrial disputes reveals that wages, allowances and bonus have been the most important causes of industrial disputes in India

Industrial Disputes The industrial relations in India have been far from cordial. There has been increasing discontent among workers culminating in strikes, lockouts, work stoppages, mass absenteeism, violence and other forms of industrial unrest. As a result, millions of mandays are lost every year. The number of industrial disputes (strike + lockouts), number of workers involved in these disputes and the loss of time in the form of mandays lost from 1921 to 2002 is on the increasing trend. The mandays lost due to lockouts were 1.95 millions in 1961, 4.74 million in 1971 and 15.38 millions in 1981. It rose to 22.50 millions in 1982 and 26.58 million in 2002.

In the new industrial system, the employers wanted to maximize their profits and lost sight of all other considerations. They started treating their employees as a commodity for price. On the other hand, the employees wanted to get the maximum share in profit earned by the employer by using their labour and skills. That gave rise to the conflict of interests between employers who wishes to buy labour cheap and workers who wish to sell their services dear. Both the parties organized themselves into trade unions and trade associations with a view to protect and promote their interests. Thus came into existence the problem of industrial relations which is concerned with the finding of ways and means of reconciling the conflicting interests in industry. As a result, a number of formal institutions for the prevention and settlement of industrial disputes have been established in all the industrialized societies.

Individual dispute deemed as industrial dispute

1965 amendment to I.D ACT and insertion of 2A. Where any employer discharges, dismisses, retrenches or otherwise terminates the services of an individual workman, any dispute or difference between that workman and his employer.shall be deemed to be an industrial dispute notwithstanding that no other workman nor any union of workmen is a party to the dispute. This definition is not applicable to disputes short of termination

FORMS OF UNREST/DISPUTES
STRIKES: A strike is spontaneous and concerted refusal of work and withdrawal of labor from production temporarily. It is a collective stoppage of work for pressurizing their employers to accept certain demands. TYPES OF STRIKES:
SYMPATHETIC STRIKE: To show sympathy with workers in other industries GENERAL STRIKE: Strike by all or most of the unions in an industry or a region UNOFFICIAL STRIKE: Strike undertaken without the consent of the unions SECTIONAL STRIKE: Refusal of a section of a given class of workers to perfor their normal duties BUMPER STRIKES: to paralyze the industry firm by firm SIT DOWN /TOOL DOWN/PEN DOWN: Strike when unions plan strike and workers cease to perform but do not leave the place of work: SLOW DOWN STRIKE: Go-slow tactic, workers do not stop working but dot perform at their normal pace LIGHTNING STRIKE: Workers may go on strike without notice or at very short notice with an element of surprise HUNGER STRIKE: To gain sympathy from public and get noticed by employer workers may decide to forego food for a specified period. Such non-violent protests generally bring moral pressure on employers

FORMS OF UNREST/DISPUTES
LOCK-OUTS:
It is the counterpart of strike. It is the weapon available with employer to close down the factory till the workers agree to resume work on the conditions laid down by employer. If it is impossible to meet the demands of workers, employers may decide o go for lock-out An employer may also pull down the shutters so as to bring psychological pressure on the workers to agree to his conditions or face the closure of unit Gherao means to surround Group of workers initiate collective action aimed at preventing members of he management from leaving the office. This can happen outside the premises too Persons who atre under gherao are not allowed to move for a long time, sometime even without food or water National commission on labor has refused to accept it as a form of industrial protest While picketing workers carry/display signs ,banners and placards( In connection with dispute), prevent others from entering the place of work and persuade others to join the strike Boycott aims at disrupting the normal functioning of an enterprise, Through forceful and negative behavioral acts, strikers prevent others not to cooperate with employer

GHERAO:

PICKETING and BOYCOTT

MANAGEMENT ACTION TO COUNTER STRIKES

EMPLOYERS ASSOCIATION:
Employers may form their unions to collectively oppose the working class and put pressure on trade unions It is the counterpart of strike. An employer may close down the place of employment temporarily. It is very powerful weapon available with employer to pressurize workers till they agree to resume work on the conditions laid down by employer. If it is impossible to meet the demands of workers, employers may decide o go for lock-out An employer may also pull down the shutters so as to bring psychological pressure on the workers to agree to his conditions or face the closure of unit Employer may resort to suspension or disciplinary action leading to termination of workers on strike. The list of employees so suspended or dismissed may be circulated to the other employer so as to restrict their chances of getting employment with other employers.

LOCKOUT:

TERMINATION:

INDUSTRIAL DISPUTE ACT (1947)

Ever expanding complex multi product/project companies with diverse and conflicting interests of workmen and employers, growing labor consciousness, resulting in strikes and lockouts, lead to the outcome of Industrial dispute Act, 1947

Main provisions of the Act are: Settlement machinery -Provides suitable machinery for investigation, just, equitable and peaceful settlement of industrial
disputes and aims to provide justice both to employers and workmen - Collective bargaining, Negotiation

Aims at promoting security, amity and good relations between employer and employee or between employers and workmen or among workmen Prevent illegal strikes and lockouts and explains the contingencies when these can be lawfully resorted to or when these can be declared illegal or unlawful. Provide conditions and relief to workmen in the matters of lay-offs, retrenchment, dismissals and victimization
Last in first out in a retrenchment case or specific reasons in case of others

Provides conditions under which an industrial unit can be closed down

60 days notice to be given of intention to close down any undertaking Compensation to workmen in case of closing down

Get the workmen the right of collective bargaining and promote conciliation Lists down unfair labor practices on the part of both parties introduced in 1984

MACHINARY FOE SETTLEMENT OF INDUSTRIAL DISPUTES

KEY PROVISIONS OF INDUSTRIAL DISPUTE ACT : NEGOTIATIONS COLLECTIVE BARGAINING: It is a technique by which disputes as to conditions of employment are resolved amicably, by agreement rather than coercion

CONCILIATION AND MEDIATION: It is facilitated negotiation, essential in public utility services, Binding on parties to the disputes

ARBITRATION: agreement between workmen and management.

Conciliation (if successful Settlement) Sec. 18(3) of The I D act

INDUSTRIAL DISPUTES

Judicial review - Art. 226 or Art. 136

Collective Bargaining If successful settlement Sec. 18(1) of ID Act

Conditions for Successful Bargaining

1. Freedom of association
Workers and employers are free to form their own associations to represent their interests.

2. Stability of union
Unions have to be stable for collective bargaining to be effective union is able to honor the agreement.

3. Recognition of union by employer

Collective bargaining begins after employer recognizes the union that claims to represent the specific group of workers.

Conditions for Successful Bargaining

4. Good faith
Both parties must be willing to resolve differences to reach an agreement.

5. Mutual respect
Relationship affected and process becomes tense and difficult if any party used unfair practices such as victimization.

6. Supportive legal system

Employment laws to ensure process takes place in an orderly manner.

Negotiations
A Typical Negotiation Process begins with each party stating its position. As discussion progresses, each party adjusts its demands to seek a mutually acceptable agreement. Process depends on these factors:
1. Subject matter to be discussed 2. Persons involved 3. Circumstances under which the discussion is held.

Steps in Negotiation
1. Preparation
Each party must know what it wants.

2. Presentation
Each party presents its case.

3. Exchange and compromise

Parties look for possible adjustment or compromise.

4. Reaching an agreement
Parties sign a written statement on what have been agreed.

Ways to Settle Disputes

Impasse: settlement cannot be reached Impasses may be solved by these alternatives:
Conciliation Mediation Arbitration

Ways to Settle Disputes

Conciliation
Impartial third party helps the two parties to reach a mutually acceptable settlement. Conciliator meets parties separately or together to exchange information, clarify issues and settle misunderstanding. Conciliator does not impose a solution but works with the parties to enable them to come to an agreement.

Ways to Settle Disputes

Arbitration
Third party settles the dispute by making an independent decision for the two parties. Some prefer arbitration as the responsibility for reaching agreement is made by a neutral party (quite often, appointed by the government e.g. Arbitration Court). Arbitration gives some people the impression that they did not give in to the other party but fought all the way to the Arbitration Court.

Ways to Settle Disputes

Mediation
Impartial third party helps to reach a mutually acceptable agreement. Mediator makes recommendations for the two parties to consider. Final agreement is made by the two parties themselves.

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