he Industrial Disputes (Amendment) Bill, 2010: Facts and thoughts

The Industrial Dispute Act, 1947 is considered as one among the foundation legislations related to workplace relations in India. While a section hails the actfor the protection it provides, other talk about the Industrial Dispute Act as a road block in the way of progress. The act has been amended many times. The latest amendment i.e. the Industrial Disputes (Amendment) Bill, 2010 has been passed by the Rajya Sabha on August 3, 2010. It has been already approved by the Lok Sabha. Few modifications that were proposed by the Parliamentary Standing Committee on Labour were included. The initial bill was referred to the Standing Committee on February 26, 2009. The suggestions of the committee were considered by government and some of the recommendations we included for the amendments proposed in the Bill. The amendment proposals were finalized mainly on the issues on which consensus were arrived at. The salient features are as follows:

1. Amplification of the definition of the Appropriate Government

The Bill has proposed the amplification of the definition of appropriate government under Section 2(a) of the Act. The Central Government is the appropriate Government as per the categories listed in Section 2 (a)(i) of theIndustrial Dispute Act, 1947. Adding up to this, it is further clarified that Central Government would be appropriate government for any company in which more than 51 percent of the paid up share is held by the Central Government, or any corporation, established by or under any law laid by the Parliament, or the Central Public Sector Undertaking, subsidiary companies set up by the principal undertaking and autonomous bodies owned or controlled by the Central Government. State Government is also covered under the definition ofappropriate Government in relation to any other industrial dispute, which includes the State Public SectorUndertaking, subsidiary companies set up by the principal undertaking and autonomous bodies owned or controlled by the State Government. (Section, of bill)

The Bill also has incorporated the recommendation of the Standing Committee, to amplify the definition ofappropriate government, in order to eliminate all the ambiguities in interpretation of the definition. Henceforth, the industrial disputes between a contractor and contract labour employed in any industry is also brought underthe purview of appropriate government i.e. Central or State Government, as the case will be.

2. Enhancement of wage ceiling in the definition of workers

The wage ceiling limit in the definition of workmen under Section 2(s) (iv) of ID Act 1947 has been enhanced from Rs. 1600 per month to Rs. 10000 per month. This ceiling limit enhancement is done to bring the in wages ofindustrial workers in parity with different labour laws.

3. Industrial Tribunals will be connected to disputes relating to Termination/Dismissal/Retrenchment/Discharge

As per the amendment in Section 2A of Industrial Dispute Act, 1947 pertaining to retrenchment, discharge, dismissal or dismissal or termination of services etc workman can now directly approach the Labour Court or Tribunal. Within 45 days of approaching to these conciliation machinery the disputes has to be resolved. Earlier only appropriate government could approach Tribunal and Labour Court disputes under Section 2A.

4. A new chapter will be substituted for Chapter IIB titled as Grievance Redressal Machinery

With the amendment, every establishment having 20 or more workmen will have to constitute Grievance Redressal Machinery (GRM) within their organization. This GRM will help workman and employers to resolvedisputes on an individual level, at the lowest level itself. In the formation of Grievance Redressal Committee the number of members should not exceed more than six. And as far as practicable, if the committee has two members out of which one member should be a woman, and incase of increase in number of members, the participation of women members may be increase appropriately.

5. Eligibility of qualification of Presiding Officers

The scope of qualifications of Presiding Officers of Central Government Industrial Tribunal cum Labour Court has been expanded. Now the Deputy Chief Labour Commissioner (Central) or State Joint Labour Commissioner or Grade III officers of the Indian Legal Service will be eligible for the appointment for the post of Presiding Officers.

6. Changes in salaries and other terms and conditions of Presiding Officer

As per the amendment in Section 38 (2)(c) proposed there will be a specific provision in the Act, according to which the Government will frame rules to decide and review salaries, allowance and other terms and conditions for the appointment of Presiding Officers.

7. Enforcement of Orders by Labour Courts or Tribunal

As per the proposition by the Bill the awards, orders of settlements executed by the Labour Court or Tribunal will be considered as a decree of Civil Court. This is to check the better enforcement of the awards passed by the Labour Courts or Tribunal and to empower them.

What is in store for Indian Industrial relations (IR) with the amendments?

The amendments will serve to address some (not all) of the issues that has been pressing all stake holders. One significant contribution will be the introduction of permanent grievance machinery. In our opinion, it will help employees, trade unions and employers settle issues at the work place itself, instead of dragging it through long and laborious process. Enhancing the salary levels for consideration under the act, will not only bring harmony between legislations, but also enhance the coverage and protection for workers. This may not be welcomed by a section of stake holders. Another area of change will be on labour administration front, where by changing thedefinitions of qualification and reviewing remuneration of Presiding offices, efficiency of the system can be improved.