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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.

Conflict / Dispute
Conflict of interest between management and labour leads to disputes / conflict . Industrial Dispute Act 1947 - Object of the act is to make provisions for investigation and settlement of industrial disputes , - Provides machinery for settlement of disputes , if disputes cannot be solved through Collective Bargaining .

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 , welfare organizations , professions , clubs , cooperatives , research institutes .

Industrial Dispute Act (1947) , Section 2 (k) industrial dispute means any dispute or difference between employers and employers , or between employers and workmen , or between workmen and workmen , which is connected with the employment or non employment or the terms and conditions of employment or with the conditions of labour , of any person .
Section 2 A , provides that dismissal , discharge , retrenchment of even a single workman will be industrial dispute even if no other workman or any union is a party to the dispute .

Industrial Dispute Act (1947) , Section 2 (x) workman means any person (including apprentice) employed in any industry to do any manual , clerical or supervisory work for hire or reward . It includes dismissed , discharged or retrenched person also . However , it does not include (i) Armed Forces i.e those subject to Air Force Act , Army Act or Navy Act (ii) Police or employees of prison (iii) Employed in mainly managerial or administrative capacity or (iv) person in supervisory capacity drawing wages exceeding Rs. 1,600 per month or functions are mainly of managerial nature

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

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 per month;

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

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 ;

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 ;

Classification of Industrial Disputes

1. Interest Disputes / Conflicts of interest / economic disputes / 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 .

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

- Involves individual workers only or a group of workers in the 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 , employment contract , Labour courts , Tribunals .

3. Recognition disputes :
- managements refusal to recognise a trade union for the purpose 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 .

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 to contractors ; - Acts of force and violence ; - Refuse collective bargaining ; - Continue illegal lock-out .

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 .

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 ;

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 ;

Strikes : Industrial Disputes Act ,1947 , Section 2 (q) : a cessation of work by a body of persons employed in any industry acting in combination , or a concerted refusal under a common understanding of a number of persons who are or have been so employed to continue to work or to accept employment . Elements of Strike : - Plurality of workmen ; - Cessation of work or refusal to do work ; and - Combined or concerted action .

Types of Strikes Industrial Disputes Strikes Primary

- Stay away - Sit down / Stay in / tool down / Pen down - Go- slow - Token / protest - Lightning / cat call - Picketing and Boycott - Gherao

- Sympathy

- General - Particular - Political - Bandh

1. Stay away : - workmen simply do not come to the work place during prescribed working areas . - They organise rallies and demonstrations to draw attention of the employer to their grievances ;
2. Sit -down / stay-in: Sit down - Group of employees or others interested in attaining certain objectives in a particular business take possession of property of that business , establish themselves in the plant , stop its production and refuse access to the owners or to others desiring to work . Tool /Pen down - employees lay down their tools /pen and refrain from doing work though they remain on job in workplace.

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 on matters of issue.

5. Lightning / Cat-call: - Such type of strike is suddenly announced , generally by way of surprise without notice or at very short notice and 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 marching or patrolling of workmen in front of the premises of the employer , 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. are involved

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 industry to 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 found guilty under Indian Penal Code

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 the purpose of directly aiding or supporting others in their cause .

- Strike is unjustifiable invasion of the rights of employers and is generally unlawful .

When are Strikes justified : 1. when launched for economic demands , such as basic 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 ration benefits are withdrawn

3. If there is any unfair labour practice on the part of

management a strike is justified 4. The demands of workmen should be reasonable and legitimate so that there is a prima facie justification for the demands . The demands should not be frivolously raised or for ulterior reasons . When the demands are excessive and unreasonable , 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.

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 .

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 the strike 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 .

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 ;

Evolution of Collective Bargaining

In India : - 1918, Gandhiji as a leader of the Ahmedabad Textile workers , 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.

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 .

Definitions :
Collective Bargaining is a negotiation between an employer or 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 terms and conditions of employment.

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.

Factors responsible for successful CB

- Given by Lester and Sister:

1. 2. 3. 4. 5. 6. 7.

Economic environment factors ; Psychological factors and structure of power relation ; Nature and Characters of the product market ; Nature of the labour market ; Capital requirement and cost conditions ; State of business conditions ; Types of industrial relationship : - employers attitude - workers attitude - Government policy.

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.

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 to make CB effective in practice .

5. honest , able and responsible leadership.

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

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 TU brings them. 4. greater emphasis on social considerations.

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;

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 which they are employed .

Forms of Collective Bargaining 1. 2. Single Plant Bargaining between management and a single TU . Multiple Plant Bargaining A single factory or establishment having several 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

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 secret ballot ; b. Selection through verification of membership by some government agency ; c. Bargaining with joint committee of all major unions;

d. Bargaining with a negotiation committee in which different unions would be represented in proportion to their verified membership ;
e. Bargaining with a negotiation committee which consists of elected representative of every department of the organisation selected by secret ballot, irrespective of their union affiliations .

2. Level of Bargaining : - at the level of the enterprise ; - at the level of the entire industry in the country / 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 management and TU to cover many issues of interest to both parties as possible.

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.

- 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 is obtained 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 of the TU over which bargaining has to be made, the demands which are acceptable and which are not acceptable .

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 of action and tactics to be adopted during negotiations .

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 / Labourmanagement agreement ie. A statement of the terms and conditions of service which have been arrived at between the two parties

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

B. Contract Administration Once the agreement is signed , both TU and 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 is guided by that contract .

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.

For the Management

Management should avoid paternalism and strive to treat the TU representatives and its employees as equals . 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 with their implementation , understand the terms of agreement that it may have arrived at with its employees and / or their representatives.

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 it that 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.

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 have provided an ingenious mechanism for the promotion of CB practices.

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.

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 the agreements or settlements, which are arrived at by a process of negotiation or conciliation , are not terminated by a section of the workers.

Recent trends in Collective Bargaining

CB in India is shifting from traditional issues like wages , DA ,employment conditions to nontraditional 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.

- Educational allowance Fourth Pay Commission makes a specific reference to payment of educational allowance for the children of employees. Generally covers cost of tuition fees, books, uniform etc.

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 as unsatisfactory as it is popularity believed . Its extension to a wider area is certainly desirable .

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 . A beginning 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 of industrial relations needs to be defined ; CB cannot exist without the right to strike /lockout.

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 minimum membership 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 an individual 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.

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 the establishment . The commission will deal with various aspects of union recognition such as (i) determining the level of recognition whether plant , industry , centre-cumindustry ,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 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 its members and nominating its representatives on works / grievance committees and other bipartite committees ; 4. The unions should be made strong , organisationally and financially .

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 .

lockout means the closing of a place of business or employment or the suspension of work, or the refusal by an employer to continue to employ any number of persons employed by him Sec. 2 (1),Industrial Dispute Act

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 so far 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.

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. 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 illwill. In the absence of this overt-act , the temporary suspension of work would not amount to a lockout and the workmen cannot claim wages for the period of closure .

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 one person 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 : to bring the parties together for mutual settlement of differences in a spirit of cooperation and goodwill Tripartite Bodies in India Set up by government to provide a forum of discussion and consultation on various labour-related issues .

1. Indian Labour Conference : Function to advise the Government of India on any matter referred to it for advice , taking into account suggestions made by the provincial government, the states and representatives of the organisations of workers and employers
Central Government in consultation with all India organisations of workers and employees ,nominated representatives of workers and employers .

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 and employers .

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 be made 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);

- 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 formulation of comprehensive procedures for the settlement of disputes under the Industrial Disputes Act,1947 . Both the inception of Labour Appelate 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 - Three-man Tripartite committee set-up in 1954. - Objectives:

to examine the ILO conventions and recommendations 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 : - First committee was constituted in 1947 ; - Relating to plantations , cotton textiles , jute , coalmining , 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 : - 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 : - Purely consultative committees and not negotiative . - Equal representation of employers and the workers ; - First recognised in 1920s ; - Two important constituents : - Works Committee - Joint Management Council

1. Works Committee
- 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 secretary either employer / worker - Functions promote measures for securing and preserving amity and good relations between the employer and the workmen; and to that end,comment upon 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 , restroom , 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 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 Disputes Act, 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 the Commissioner 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 :

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 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 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 of subsistence allowance to workmen who were kept under suspension , pending a domestic enquiry .

Industry Employer Dispute Mutually settled Agreement (Sec.18 (1)) Fails to get settled Workmen

Conciliation Officer

Talks fail

Talk Succeed (Settlement Sec. 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 are the claims by workers of a Trade Union concerning their individual or collective rights under 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 procedure which 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 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 to an arbitrator 3. A grievance procedure should be such that it gives a 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 should have a provision that in case a unanimous decision is not possible , the unsettled grievance may be referred to arbitration . At the earlier stages, a worker should be free to be represented by a coworker and later by an officer of the union, if one exists. 5. It should be introduced in all units employing 100 or more workers.

Grievance Procedure

Grievance Procedure
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 this purpose, who shall give an answer within 48 hours. b) If the employee is not satisfied with the decision, he can, 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 the departmental head to refer the matter to the grievance committee, which normally consists of equal representatives of management and the union. The grievance 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 any case, 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.

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 be communicated within 7 days. e) If still not satisfied with the decision, the union may ask for voluntary arbitration in the matter.

Indiscipline / Misconduct
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 to the employee.

Causes of Misconduct
1. unfair labour practices and victimisation on the part of employers, like wage differentials , unreasonable declaration of payment or nonpayment of bonus ,wrongful works assignment, defective grievance procedure etc. ; 2. Bad service conditions ,defective communication by superiors and ineffective leadership lead to discipline ;

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

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 with employers 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 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 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 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 to defend 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 before dismissing an employee , he should be given an opportunity to explain the circumstances alleged against him. Procedure for Punishment : 1. Framing and issuing a chargesheet 2. 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 1. Voluntary abandonment of service by the employee 2. Resignation by the employee 3. Discharge by notice thereof given by the employer 4. Discharge or dismissal by the employer as a punishment for misconduct 5. Retirement on reaching the age of superannuation.

Mediation and Conciliation

Conciliation encourages the parties to discuss their differences and to help them develop their own proposed 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-party intervention in promoting voluntary settlement.

Mediation: 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 to find 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 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.

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 differences between the parties to a dispute under the guidance of a conciliator - ILO

Conciliation Machinery in India : 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 more specified 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 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 of the 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 the conciliation 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, consisting of a Chairman (who is an independent person ie. Unconnected with the dispute or with any 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 is towards compulsion.

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 the conciliation officer or the Board of Conciliation by both parties of their own free will ; they agree to 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 compel their attendance at such proceedings ,as well as by the prohibition of strikes and lockouts without prior resort to conciliation.

Preliminary steps towards Conciliation

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. 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 parties position and of gap which separates them , on the basis of which he begins his efforts ;

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 : In case of settlement of dispute , a signed report is to be submitted to government as well as parties concerned , which indicates the following : 1. The steps taken by the conciliator to ascertain the facts and circumstances relating to the dispute ; 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 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; 5. The dispute must be referred to arbitration at any time before it has been referred to a labour court or 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 is forwarded to the government and the conciliation officer ;

Qualification of Arbitrator
1. Understanding of the complexities of the labourmanagement 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 strong belief in the importance of successful arbitration ;

4. High integrity , ie should be impartial towards the 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 the dispute 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 past agreements ; ordinances , court decisions, statutes (bearing on the case) and arbitration decisions 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 evidence

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 signed by 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 should 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 , unable to compose their differences by themselves or with the help of the mediator or conciliator, 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 willingness on their part . When one of the parties to an industrial dispute feels aggrieved by an act of the 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 Mahatma Gandhi of its application to the settlement of disputes in the textile industry in Ahmedabad ; - Bombay Industrial Disputes Act and Bombay Industrial Relations Act 1946 recognised voluntary arbitration as 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 done in IDA -1947 Section 10 (A) , (which became effective from March 10, 1957 ) the parties to a dispute 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 its promotion , government appointed National Arbitration Promotion Board in July, 1967.

Functions of the Board are : 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 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 involves intervention in the dispute by a third party appointed by the government for the 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 to arbitration . The reference of dispute to adjudication is at the discretion of the government .

1. Voluntary Adjudication : When both parties , at their own accord agree to refer the dispute to adjudication , it is obligatory on the part of government 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 the dispute , it is known as Compulsory Adjudication .

Three Tier System of Adjudication :

1. Labour courts ; 2. Industrial Tribunals ; and 3. National Tribunals .

Labour Courts : - Adjudicate upon disputes listed in Schedule II of the Act. - Labour court usually deals with matters which arise out of the day-to-day working of an undertaking.

Constitution : 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 not less than 7 years . No person shall be appointed or continue in the office of the labour court if he is not an independent person , or if he has attained the age of 65.

Duties of Labour court : 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 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 the Third 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 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 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 Chairman or 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 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 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 and gratuity ; 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 ; 11. Any other matter that may be prescribed.
Twelve Central Government Industrial Tribunals cum- Labour Courts. - two of each are located in Dhanbad and Bombay - one each at Asansol , Kolkata , Jabalpur , New Delhi , Jaipur , Chandigarh , Kanpur and Bangalore .

National Tribunals : Central government may by a notification in the Official Gazette constitute one or more national tribunals 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 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 Tribunal for 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 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 to each 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 take place (this date should be fixed within six weeks of the date on which it was referred for adjudication) 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 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 dispute for adjudication ;

Central Industrial Relations Machinery in India

- 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 the prevention , 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 ; - 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 in industries located in the central sphere (for which the Central Government is appropriate government under the Industrial Disputes Act, 1947);
2. Enforcement of labour laws in industries and establishments 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 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 ; 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 .