Industrial Disputes Resolution Mechanism

The Industrial Disputes Act, 1947 provides for the creation of different authorities to preserve industrial harmony, prevention and settlement of industrial disputes. These are as follows

Works Committee

In establishments where hundred or more workers are employed:

a) The appropriate government may require the employer to set-up works committee.

b) It is composed of equal number of representatives of workmen and management who are chosen with consultation of the trade union.

c) Its functions are to preserve amity and establish cordial relations and to resolve differences of opinion on matters of common interest.

Conciliation Officer

a) The conciliation officer may be appointed by the government for specified area or specified industries.

b) Duty of the conciliation officer is to mediate in and promote the settlement of industrial disputes. Where industrial dispute exists or is apprehended and relates to a public utility, the conciliation officer shall hold conciliation proceedings and it is mandatory. In such cases conciliation officer will investigate the dispute and induce the parties to come to amicable settlement. If no settlement is reached then also he has to report to the government giving reasons on account of which settlement could not be reached.

Board of Conciliation

The government may notify constitution of board of conciliation for promoting settlement of an industrial dispute. Its role is also consultative, like conciliation officer.

Court of Enquiry

The government may constitute a court of enquiry to enquire into any matter connected with an industrial dispute. In the case of board of conciliation the object is to promote settlement of an industrial dispute.

Voluntary Arbitration

It is voluntary method of resolving individual disputes if dispute is not settled by negotiating parties. Here both parties are willing to go to an arbitrator of their choice and submit to his decision. Arbitrators are named by the parties in the written agreement.

Adjudication

The Industrial Disputes Act provides for three-tier system of adjudication of industrial disputes. Labour courts and industrial tribunal may be constituted by the state government while national tribunal is constituted by the central government.

1. Labour Courts:

• Legality of an order passed by an employer under the standing order,
• Application and interpretation of standing orders,
• Discharge or dismissal of workman,
• Withdrawal of any customary concession or privilege,
• Illegality or otherwise of a strike or lock-out, and
• All matters (not specified for industrial court).

2. Industrial Tribunals:

• All matters within jurisdiction of labour courts,
• Wages,
• Compensatory and other allowances,
• Hours of work and rest intervals,
• Leave with wages and holidays,
• Bonus, Provident Fund and Gratuity,
• Shift Working,

3. National Tribunal:

The national tribunal shall be constituted by the Central government (only) when undertakings in more than one stage is affected by such industrial dispute and is of ‘national importance’ and matters related to the functioning of labour and industrial courts.

Central and State Industrial Relations Machinery

Central Industrial Relations Machinery consists of the Chief Labour Commissioner and Regional Labour Commissioner together with Labour Enforcement Officers. Their main functions are:

• prevention, investigation and settlement of industrial disputes in industries, or enforcement of labour laws and awards,
• verification of union membership,
• fixation of minimum wages, etc.,
• central implementation and evaluation machinery ensures implementation of code of discipline, labour laws, awards and settlements, take preventive action by settling disputes, etc.

Code of Discipline, 1958

The code reflects the policy of the government to build up an industrial democracy on a voluntary basis and is the anchor of Mahatma Gandhi’s philosophy of industrial relations. The main elements of the code are:

• The two parties agree to utilize the existing machinery for the settlement of industrial disputes.
• The parties shall not resort to strikes and lock-outs without first exploring all avenues of settlement
• The parties accept that the disputes not settled mutually shall be referred to voluntary arbitration.
• The code specifies the criteria for the recognition of trade unions and creates an obligation on employers to recognize the majority union in an establishment or industry.

Code of Conduct

The other code adopted in May 1958 was the code of conduct. The representatives of the four central trade union organizations – the INTUC, AITUC, HMS and UTUC – agreed to observe certain principles with a view to maintaining harmonious inter-union relations. Inter-union and intra-union rivalries emerge out of certain weakness of Indian trade unions such as fragmentation and multiplicity.

Tripartite Bodies

The other tripartite bodies which came into existence were:

• Indian Labour Conference,
• Standing Labour Committee,
• Industrial Committees, and
• Tripartite Committee on International Labour Organisation Conventions, 1954.

Mediation and Litigation

Mediation is very much a part of Indian culture. Litigation, on the other hand, was introduced by the colonial masters as a top down model. It is alien to Indian culture and never got imbibed into the Indian culture. Respectable and elderly people acting as mediators or functioning as Panchayat members is integral to Indian culture. In the past it was these respectable and elderly people who used to help in resolving disputes through mediation or mediation-cum-arbitration in Panchayats.

Lok Adalats

Lok Adalats is a product of judicial activism and is a recent phenomenon. In fast-changing industrial scenario, institutions like Lok-Adalats are likely to be more popular for speedy settlement/prevention of Industrial disputes. The term Lok Adalat literally means Peoples’ Court. This literal meaning is misleading because of the word ‘court’. Court is popularly understood to be a place where disputes are resolved through decisions made by a judicial authority. Court exercises the sovereign power of the State. Sovereign power and Peoples’ Court cannot go together.

Lok Adalats and the Industrial Disputes Act, 1947 The Lok Adalat process is similar to conciliation in the Industrial Disputes Act, 1947 (I.D. Act). In I.D. Act, conciliation is compulsory. Only when conciliation fails, does the Appropriate Government body refer the dispute for adjudication. However, some State Governments have made amendments to allow termination disputes to go for adjudication before labour court directly. When there is conciliation facility available under the I.D. Act why are we talking about Lok Adalats for resolution of industrial disputes which is again conciliation.

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