C.K.

PITHAWALLA INSTITUTE OF MENAGEMENT

Methods of Settling Industrial Disputes
Presented By: Kachhadiya Rachana 15 Savalia Payal 51 Tailor Rinal 55 Vaddoriya Hetal 57
Presented to:Tejal Patel

What is a dispute?

Academically speaking, industrial dispute refers to any conflict between employees and employers, But in reality, dispute is understood as the conflict between employeesand employers.

There are three types of Disputes :

Disciplinary disputes Grievance disputes Industrial disputes

What is Industrial disputes?

The relationship between the employers and employees and trade unions is called Industrial Relations. Harmonious relationship is necessary for both the employers and employees to safeguard the interests of both the parties of production. Industrial disputesThe conflicts and disputes between employer and employees on any industrial matter are known as industrial disputes.

Methods of Settling Industrial Disputes

Without state intervention

With state intervention

Collective Bargaining

Voluntary Arbitration

Compulsory Establishment Of bipartite committees

Establishment of Compulsory compulsory Investigation Collective bargaining

Compulsory Conciliation And mediation

Compulsory Arbitration or adjudication

Settlement without state intervention

Collective Bargaining
Collective Bargaining is process of joint decision making and basically represents a democratic way of life in industry. It is a technique adopted by two parties to reach an understanding acceptable to both through the process of discussion and negotiation. According to Prof. Paul Samuelson, Collective Bargaining is the process of negotiation between firms and workers representatives for the purpose of establishing mutually agreeable conditions of employment.

 Steps of Collective bargaining

Presentations in a collective manner, to the employer, their demands and grievances by the employees. Discussions and negotiations on the basis of mutual give and take for settling the grievances and fulfilling the demands. Signing of a formal agreement or an informal understanding when negotiations result in mutual satisfaction. In the event of the failure of negotiations; a likely resort to strike or lock out to force the recalcitrant party to come to terms.

Voluntary Arbitration
When conciliation proceedings fail to settle the dispute, the conciliation officer may persuade the conflicting parties to voluntarily refer the dispute to a third party known as Arbitrator, appointed by the parties themselves. The arbitrator listens to the viewpoints of both parties and delivers award or judgment on the disputes. He, however, does not enjoy judicial powers. The arbitrator submits his judgment on the disputes to the government.Therefore the government publishes the award within 30 days of itsubmission.

 Submit the dispute to a neutral person or a group of persons for arbitration. The neutral person hears the parties and give his award which may or may not be binding on them. Almost all the state governments and union territory administrations have also either set up Arbitration Promotion Boards, to popularize voluntary arbitration.

Why Voluntary Arbitration?

Easy availability of adjudication in case of failure of negotiation Dearth of suitable arbitrators who command the confidence of both parties Absence of recognized union which could bind the workers to common agreements Legal obstacles The fact that in law no appeal was competent against an arbitrators award Absence of a simplified procedure to be followed Cost of parties, particularly workers

Settlement under the influence of the state

Compulsory Establishment of Bipartite Committees

Establishment of bipartite committees consisting of the representatives of workers and their employer at the plant or industrial level. the primary ideas behind establishment of such bipartite committees are
o

giving encouragement to the parties concerned to settle and compose their differences by themselves in order to avoid direct intervention of a third agency facilitating the composition of the differences at their embryonic stages without causing work stoppages.

Establishment of compulsory collective bargaining

The idea behind such a policy is to force the parties to seek to settle their differences through mutual negotiations and discussions before they decide to resort to strikes or lockouts. In India, refusal to bargain collectively in good faith by the employer and the recognized union, has been included in the list of unfair labor practices by an amendment of the industrial disputes Act in 1982.

Compulsory investigation
The purpose behind the appointment of a court of inquiry, is essentially to find out the relevant facts and issues involved and to give them wide publicity so that the pressure of public opinion may force the recalcitrant party to give up its obstinate attitude. To provide a cooling off period to the parties concerned so that they could reconsider their respective stands, realize the implications of their steps and settle their disputes peacefully. In India under section 6 of the Industrial Disputes Act 1947, both the Central and State Government have the power to constitute a court of inquiry for inquiring into any matter appearing to be concerned with industrial dispute

Conciliation and Mediation

Peaceful settlement of industrial disputes by conciliation and mediation services. Voluntary conciliation and mediation
State sets up a conciliation and mediation machinery, consisting of personnel trained in the art of conciliating disputes. o The aim of the conciliator is to break the deadlock, if any, explain the stand and the view points of one party to the other, convey messages and generally keep the negotiations going. o It is the parties who ultimately decide the issues. They may or may not come to an agreement.
o

Cont
Compulsory conciliation and mediation
State imposes an obligation on the parties to submit their dispute to the conciliation service and makes it a duty of the latter to seek to conciliate the dispute. o There is a time limit for the conciliators and mediators to conclude their efforts at conciliation. o At the end of conciliation proceeding, the parties fails to settle disputes, they are free to go on a strike or declare a lock-out.
o

Cont
Conciliation and mediation in different countries
o

Under the Industrial Dispute Act, 1947; giving of a notice of strike or lockout is obligatory on the parties before they go on strike. Under the rules, a copy of the notice has to be sent to the conciliator appointed by the government for a particular geographical region or the industry where the parties are located. Any agreement arrived at during the course of the conciliation proceeding is legally binding on the parties concerned, the violation of which is a penal offence. If an agreement is signed by the parties and the conciliation officer, the agreement becomes a settlement.

Compulsory Arbitration and Adjudication

Two principal forms of compulsory arbitration:
Compulsory reference but voluntary acceptance of the award o Compulsory reference and compulsory acceptance of the award
o

First type dispute is referred to a tribunal or court of Arbitration for adjudication either by the government or the parties may be required, to submit their dispute for adjudication though they are free to accept or reject the award In the second type Government has the power to refer the dispute for adjudication, but also parties are put under legal obligation to abide by its award.

Adjudication or Compulsory Arbitration in India

The Industrial Disputes Act 1947, provides for 3 types of adjudication authorities for Industrial disputes, namely Labor Court, Tribunal and National Tribunal. Labor court is intended to adjudicate disputes relating to propriety or legality of an order passed by an employer under the standing ode, discharge or dismissal of workmen, legality of a strike etc. Tribunal and National Tribunal deals with wages, bonus, profit sharing, rationalization, allowances, hours of work etc.

Adjudication/compulsory Arbitration v/s collective bargaining

It could be discussed under two head
o o

Argument relating to its principle In collective bargaining it is not the just cause but the relative strength of the parties ultimately triumphs. A strong union may take up the weak case and still win and vice versa. Compulsory Arbitration introduces an element of law and justice in the conduct of industrial relations.

 Argument relating to its practice in India

Industrial need is the supreme need of the hour. Collective bargaining may be democratic but it endangers industrial peace. Therefore compulsory arbitration has to be used for the purpose of resolving industrial disputes. o Compulsory arbitration in India does not suppress collective bargaining rather supplements it.
o

Arguments Against Adjudication/Compulsory Arbitration

Relating to Its Principle
o

o o

In a democratic society, Industrial democracy implying Collective and joint determination of the terms and conditions of employment and settlement of their disputes by the parties themselves without any outside interference. Compulsory arbitration relates to the absence of standards which can be used by adjudicators. The civil judge is interpreter of law, the adjudicator of an industrial disputes become a law giver. It is criticized for its inability to ensure industrial peace. Compulsory arbitration is said to vitiate industrial relations by creating a litigious atmosphere.

 Related to its practice in India

It involves long delays and heavy expenditure, which puts the trade unions in a disadvantageous position. Compulsory arbitration depends in most cases upon the reference of a dispute o the adjudication authorities, by the appropriate government in its discretion. The practice of compulsory arbitration in India has hindered the growth of a genuine and effective trade union movement.