Basic Knowledge of Industrial Dispute BBA & MBA Students All factor affecting of Industrial Dispute All details of under company employess rules and regulation. Industrial Dispute Act 1947

1. INDUSTRIAL DISPUTES
Bahadur kumar
BBA 6th sem
9997734171
1702696

2. An industrial dispute may be defined as
“A conflict or difference of opinion between management and
workers on the terms of employment. It is a disagreement
between an employer and employees' representative; usually
a trade union, over pay and other working conditions and can
result in industrial actions.”
When an industrial dispute occurs, both the parties, that is
the management and the workmen, try to pressurize each
other. The management may resort to lockouts while the
workers may resort to strikes, picketing or gheraos.

3. As per Section 2(k) of Industrial Disputes Act,1947, an
industrial dispute is defined as any dispute or difference
between employers and employers, or between employers
and workmen, or between workmen and which is connected
with the employment or non-employment or the terms of
employment or with the conditions of labor, of any person.
This definition includes all the aspects of a dispute. It, not
only includes the disagreement between employees and
employers, but also emphasizes the difference of opinion
between worker and worker. The disputes generally arise on
account of poor wage structure or poor working conditions.
This disagreement or difference could be on any matter
concerning the workers individually or collectively. It must be
connected with employment or non-employment or with the
conditions of labor.

4. An industrial dispute resulting in stoppage of work means:
 A stoppage of production.
 Increase in the average cost of production since fixed
expenses continue to be incurred.
 A fall in sales and the rate of turnover
 A fall in profits.
 Employer may also be liable to compensate his customers
with whom he may have contracted for regular supply.
 Loss of prestige and credit,
 Alienation of the labor force,
 Loss due to destruction of property, personal injury and
physical intimidation or inconvenience .

5. For the employee, an industrial dispute entails
 Loss of income. The regular income by way of wages and
allowance ceases, and great hardship may be caused to the
worker and his family.
 Suffering from personal injury to employees if they indulge
into strikes and picketing
 Psychological and physical consequences of forced idleness.
 The threat of loss of employment in case of failure to settle
the dispute advantageously
 The threat of reprisal action by employers also exists.

6. Prolonged stoppages of work have also an adverse
effect on the national productivity, national income.
They cause wastage of national resources. Hatred
may be generated resulting in political unrest and
disrupting amicable social/industrial relations or
community attitudes.

7. The causes of industrial disputes can be broadly classified into
two categories:
 Economic causes : issues relating to compensation like wages,
bonus, allowances, and conditions for work, working hours,
leave and holidays without pay, unjust layoffs and
retrenchments.
 Non-economic causes: Issues like victimization of workers, ill
treatment by staff members, sympathetic strikes, political
factors, indiscipline etc.

8.  Wages & Allowances:
Since the cost of living index is increasing, workers generally
bargain for higher wages to meet the rising cost of living index
and to increase their standard of living.

9.  Personnel and retrenchment:
The personnel and retrenchment have also been an
important factor which accounted for disputes. During the
year 2002, disputes caused by personnel were 14.1% while
those caused by retrenchment and layoffs were 2.2% and
0.4% respectively. In 2003, a similar trend could be seen,
wherein 11.2% of the disputes were caused by personnel,
while 2.4% and 0.6% of disputes were caused by
retrenchment and layoffs. In year 2005, only 9.6% of the
disputes were caused by personnel, and only 0.4% were
caused by retrenchment.

10.  Indiscipline and violence:
The number of disputes caused by indiscipline has shown an
increasing trend. In 2002, 29.9% of disputes were caused
because of indiscipline, which rose up to 36.9% in 2003.
Similarly in 2004 and 2005, 40.4% and 41.6% of disputes were
caused due to indiscipline respectively. During the year 2003,
indiscipline accounted for the highest percentage (36.9%) of
the total time-loss of all disputes, followed by cause-groups
wage and allowance and personnel with 20.4% and11.2%
respectively. A similar trend was observed in 2004 where
indiscipline accounted for 40.4% of disputes.

11.  Bonus:
Bonus has always been an important factor in industrial
disputes. 6.7% of the disputes were because of bonus in 2002
and 2003 as compared to 3.5% and 3.6% in 2004 and 2005.

12.  Leave and working hours:
Leaves and working hours have not been so important causes
of industrial disputes. During 2002, 0.5% of the disputes were
because of leave and hours of work while this percentage
increased to 1% in 2003. During 2004, only 0.4% of the
disputes were because of leaves and working hours.

13.  Miscellaneous: The miscellaneous factors include
- Inter/Intra Union Rivalry
- Charter of Demands
- Work Load
- Standing orders/rules/service conditions/safety measures
- Non-implementation of agreements and awards etc.

14. Two types of Industrial Disputes-
 Interest disputes
Relate to determination of new wage level and other
condition of employment
 Rights disputes.
Relate to interpretation and application of existing standards
and usually involve an individual worker or group of workers.

15. Under category of rights disputes, claim is made that the
workmen have not been treated in accordance with the rules,
individual contracts of employment, laws and regulations and
as per collective agreements.
Such disputes are also described as grievance disputes.
Such grievances may be regarding retrenchment ,dismissal,
payment of wages, working time, overtime, demotion ,
promotion, transfer, seniority, job classification, work rules
and fulfillment of obligation relating to safety and health laid
down in an agreement.

16.  Overt:
Overt action is action undertaken that is clearly visible.
Overtime bans
members refuse
to work overtime
Sit-ins
Members occupy buildings to
publicise their protest
Work-to-rule
Members follow their
job description
Go-slow
Carry out work slower
than normal
Picketing
Members stand
outside
the firm
Strikes
Members withdraw
their labour

17.  Covert:
Covert action is secretive, hidden forms of industrial action
which may be undertaken by both employers and employees.
Examples:
◦ Exclusion from decision making
◦ Labour turnover
◦ Sabotage
◦ Absenteeism

19. “Grievance procedure is a formal communication between an
employee and the management designed for the settlement
of a grievance.”
The grievance procedures differ from organization to
organization.
Major 2 types of Grievance Policies:
 Open door policy
 Step Ladder Policy

20.  Under this policy, the aggrieved employee is free to meet the
top executives of the organization and get his grievances
redressed.
 Such a policy works well only in small organizations.
 However, in bigger organizations, top management executives
are usually busy with other concerned matters of the
company.
 Moreover, it is believed that open door policy is suitable for
executives; operational employees may feel shy to go to top
management.

21.  Under this policy, the aggrieved employee has to follow a step
by step procedure for getting his grievance redressed.
 In this procedure, whenever an employee is confronted with a
grievance, he presents his problem to his immediate
supervisor.
 If the employee is not satisfied with superior’s decision, then
he discusses his grievance with the departmental head.

22.  The departmental head discusses the problem with joint
grievance committees to find a solution.
 However, if the committee also fails to redress the grievance,
then it may be referred to chief executive. If the chief
executive also fails to redress the grievance, then such a
grievance is referred to voluntary arbitration where the award
of arbitrator is binding on both the parties.

23.  The 15th session of Indian Labor Conference held in 1957
emphasized the need of an established grievance procedure
for the country which would be acceptable to unions as well
as to management.
 In the 16th session of Indian Labor Conference, a model for
grievance procedure was drawn up.
 This model helps in creation of grievance machinery.

24.  According to it, workers’ representatives are to be elected for
a department or their union is to nominate them.
 Management has to specify the persons in each department
who are to be approached first and the departmental heads
who are supposed to be approached in the second step.
 The Model Grievance Procedure specifies the details of all the
steps that are to be followed while redressing grievances.

25. STEP 1: In the first step the grievance is to be submitted to
departmental representative, who is a representative of
management. He has to give his answer within 48 hours.
STEP 2: If the departmental representative fails to provide a
solution, the aggrieved employee can take his grievance to
head of the deptt., who has to give his decision within 3 days.
STEP 3: If the aggrieved employee is not satisfied with the
decision of departmental head, he can take the grievance to
Grievance Committee.

26. The Grievance Committee makes its recommendations to the
manager within 7 days in the form of a report.
The final decision of the management on the report of
Grievance Committee must be communicated to the
aggrieved employee within three days of the receipt of
report.
An appeal for revision of final decision can be made by the
worker if he is not satisfied with it.
The management must communicate its decision to the
worker within 7 days.
STEP 4: If the grievance still remains unsettled, the case may
be referred to voluntary arbitration.

28.  Collective Bargaining
 Negotiation
 Conciliation & Mediation
 Arbitration
 Adjudication

29.  Collective Bargaining is a technique by which dispute as to
conditions of employment, are resolved amicably, by
agreement, rather than by coercion.
 The dispute is settled peacefully and voluntarily, although
reluctantly, between labour and management.
 A process of bargaining between employers and workers, by
which they settle their disputes relating to employment or
non-employment , terms of employment or conditions of the
labour of the workman, among themselves, on the strength
of the sanctions available to each side .

30.  It is the respective strength of the parties which determine
the issue, rather than the wordy duals which are largely put
on for show, as an element of strength in one party is by the
same token, an element of weakness in another.
 The final outcome of bargaining may also depend upon the
art, skill and dexterity of displaying the strength by the
representatives of one party to the other.

31.  Negotiation is one of the principal means of settling labour
disputes.
 However, due to lack of trust between the employers and
workmen or their trade unions or inter-rivalry of the trade
unions and the employers being in a commanding position,
many a time negotiations fail.

32.  Through conciliation and mediation a third party provides
assistance with a view to help the parties to reach an
agreement.
 The conciliator brings the rival parties together discuss with
them their differences and assist them in finding out solution
to their problems.
 Mediator on the other hand is more actively involved while
assisting the parties to find an amicable settlement.
Sometimes he submits his own proposals for settlement of
their disputes.

33.  It is voluntary if the parties are free to make use of the same,
while it is compulsory when the parties have to participate
irrespective of whether they desire to do so or not.
 Section 4 of the Industrial Dispute Act 1947 provides for
appointment for conciliation officer and Section 5 for
constitution of Boards of Conciliation.
 Board of conciliation is to consist of an independent Chairman
and two or four member representing the parties in equal
number
 Conciliation Officer is charged with the duty of mediating in
and promoting the settlement of industrial disputes, the
Board of Conciliation is required to promote the settlement of
industrial disputes.

34.  The act generally allows registered trade unions or a
substantial number of workers/ employees and also in certain
cases individual workman to raise disputes.
 The performance of conciliation machinery, though it does
not appear to be unsatisfactory, causes delays due to casual
attitude of the parties towards conciliation, defective
processes in the selection of personnel and unsatisfactory
pre-job training and period-in-service-training.
 Delays in conciliation are attributed partly to the excessive
work-load on officers and partly to the procedural defects.

35.  Since conciliation officer has no powers of coercion over
labour and management , he can only persuade them to
climb down and meet each other.
 The settlements that are claimed to result from conciliation
are increasingly the result of political intervention
 Success of conciliation depends upon the appearances and
their sincere participation in conciliation proceedings of the
parties before the conciliation officers.
 Non-appearance and non- participation of the parties in
conciliation proceedings poses a serious hindrance in this
direction.

36.  The resort to arbitration procedure may be compulsory or
arbitrary .
 Compulsory arbitration is the submission of disputes to
arbitration without consent or agreement of the parties
involved in the dispute and the award given by the arbitrator
being binding on the parties to the dispute.
 On the other hand in case of voluntary arbitration, the
dispute can be referred for arbitration only if the parties
agree to the same.

37.  Section 10 A of the ID Act, however, provides only for
voluntary reference of dispute to arbitration.
 This system, however, has not been widely practiced so far.
 One of the main reasons for not gaining popularly of this
procedure is lack of arbitrators who are able to command
respect and confidence of the parties to the dispute.
 Inter Union rivalry also sometimes makes it difficult in arriving
at an agreement on settlement of an arbitrator who is
acceptable to all the trade unions in the industry.

38.  If despite efforts of the conciliation officer , no settlement is
arrived at between employer and the workman, The
Industrial Dispute act provides for a three tier system of
adjudication viz. Labour Courts , Industrial Tribunals and
National Tribunals under section, 7 , 7A and under section 7B
respectively.
 Labour Courts have been empowered to decide disputes
relating to matters specified in the Second Schedule.

39.  These matters are concerned with the rights of workers, such
as propriety of legality of an order passed by an employer
under the standing orders, application and interpretation of
standing orders, discharge or dismissal of workman including
reinstatement of grant of relief to workman wrongfully
discharged or dismissed, withdrawal of any customary
concession or privilege and illegality of a strike or lockout.
 The industrial tribunal are empowered to adjudicate on
matters specified in both the Second and Third schedule i.e.
both rights and interest disputes. The jurisdiction of the
Industrial Tribunal is wider that the labour courts.

40.  In case of disputes which in the opinion of the Central Govt.
involve question of national importance or is of such nature
that workers in more than one State are likely to be affected.
The Act provides for constitution of National Tribunals.
 Industrial adjudication has undoubtedly played a conclusive
role in the settlement of industrial disputes and in
ameliorating the working and living conditions of labour class.
 the adjudicating machinery has exercised considerable
influence on several aspects of conditions of work and labour
management relations.

41.  Adjudication has been on of the instruments for the
improvement of wages and working conditions and for
securing allowances for maintaining real wages, bonus and
introducing uniformity in benefits and amenities.
 It has also helped to avert many work stoppages by providing
an acceptable alternative to direct action and to protect and
promote the interest of the weaker sections of the working
class, who were not well organized or were unable to bargain
on an equal footing with the employer.

43.  Collective bargaining is process of joint decision making and
basically represents a democratic way of life in industry.
 It is the process of negotiation between firm’s and workers’
representatives for the purpose of establishing mutually
agreeable conditions of employment.
 It is a technique adopted by two parties to reach an
understanding acceptable to both (management &
employees)through the process of discussion and negotiation.

44. ILO has defined collective bargaining as,
“Negotiation about working conditions and terms of
employment between an employer and a group of employees
or one or more employee, organization with a view to
reaching an agreement wherein the terms serve as a code of
defining the rights and obligations of each party in their
employment/industrial relations with one another.”

45.  Collective bargaining involves discussions and negotiations
between two groups as to the terms and conditions of
employment.
 It is called ‘collective’ because both the employer and the
employee act as a group rather than as individuals.
 It is known as ‘bargaining’ because the method of reaching an
agreement involves proposals and counter proposals, offers
and counter offers and other negotiations.

46. Thus collective bargaining:
 is a collective process in which representatives of both the
management and employees participate.
 is a continuous process which aims at establishing stable
relationships between the parties involved.
 not only involves the bargaining agreement, but also involves
the implementation of such an agreement.
 attempts in achieving discipline in the industry
 is a flexible approach, as the parties involved have to adopt a
flexible attitude towards negotiations.

47.  It is a group process, wherein one group, representing the
employers, and the other, representing the employees, sit
together to negotiate terms of employment.
 Negotiations form an important aspect of the process of
collective bargaining i.e., there is considerable scope for
discussion, compromise or mutual give and take in collective
bargaining.
 Collective bargaining is a formalized process by which
employers and independent trade unions negotiate terms and
conditions of employment and the ways in which certain
employment-related issues are to be regulated at national,
organizational & workplace levels.

48.  Collective bargaining is a process in the sense that it consists
of a number of steps. It begins with the presentation of the
charter of demands and ends with reaching an agreement,
which would serve as the basic law governing labor
management relations over a period of time in an enterprise.
Moreover, it is flexible process and not fixed or static. Mutual
trust and understanding serve as the by products of
harmonious relations between the two parties.
 It a bipartite process. This means there are always two parties
involved in the process of collective bargaining. The
negotiations generally take place between the employees and
the management. It is a form of participation.
 .

49.  Collective bargaining is a complementary process i.e. each
party needs something that the other party has; labor can
increase productivity and management can pay better for
their efforts
 Collective bargaining tends to improve the relations between
workers and the union on the one hand and the employer on
the other.
 Collective Bargaining is continuous process. It enables
industrial democracy to be effective. It uses cooperation and
consensus for settling disputes rather than conflict and
confrontation.

50.  Collective bargaining takes into account day to day changes,
policies, potentialities, capacities and interests.
 It is political activity frequently undertaken by professional
negotiators

51.  A Collective Bargaining process generally consists of four
types of activities-
◦ Distributive Bargaining,
◦ Integrative Bargaining,
◦ Attitudinal Restructuring
◦ Intra-organizational Bargaining.

52.  It involves haggling over the distribution of surplus. Under it,
the economic issues like wages, salaries and bonus are
discussed.
 In distributive bargaining, one party’s gain is another party’s
loss.
 This is most commonly explained in terms of a pie. Disputants
can work together to make the pie bigger, so there is enough
for both of them to have as much as they want, or they can
focus on cutting the pie up, trying to get as much as they can
for themselves.
 In general, distributive bargaining tends to be more
competitive.
 This type of bargaining is also known as conjunctive
bargaining.

53.  This involves negotiation of an issue on which both the
parties may gain, or at least neither party loses.
 For example, representatives of employer and employee sides
may bargain over the better training programme or a better
job evaluation method.
 Here, both the parties are trying to make more of something.
 In general, it tends to be more cooperative than distributive
bargaining.
 This type of bargaining is also known as cooperative
bargaining.

54.  This involves shaping and reshaping some attitudes like trust
or distrust, friendliness or hostility between labor and
management.
 When there is a backlog of bitterness between both the
parties, attitudinal restructuring is required to maintain
smooth and harmonious industrial relations.
 It develops a bargaining environment and creates trust and
cooperation among the parties.

55.  It generally aims at resolving internal conflicts.
 This is a type of maneuvering to achieve consensus with the
workers and management.
 Even within the union, there may be differences between
groups.
 For example, skilled workers may feel that they are neglected
or women workers may feel that their interests are not looked
after properly.
 Within the management also, there may be differences. Trade
unions maneuver to achieve consensus among the conflicting
groups.

56.  Collective bargaining generally includes negotiations between
the two parties (employees’ representatives and employer’s
representatives).
 Collective bargaining consists of negotiations between an
employer and a group of employees that determine the
conditions of employment.
 Often employees are represented in the bargaining by a union
or other labor organization.

58.  The result of collective bargaining procedure is called the
collective bargaining agreement (CBA).
 Collective agreements may be in the form of procedural
agreements or substantive agreements.
 Procedural agreements deal with the relationship between
workers and management and the procedures to be adopted
for resolving individual or group disputes.

59.  This will normally include procedures in respect of individual
grievances, disputes and discipline.
 Frequently, procedural agreements are put into the company
rule book which provides information on the overall terms
and conditions of employment and codes of behavior.
 A substantive agreement deals with specific issues, such as
basic pay, overtime premiums, bonus arrangements, holiday
entitlements, hours of work, etc.
 In many companies, agreements have a fixed time scale and a
collective bargaining process will review the procedural
agreement when negotiations take place on pay and
conditions of employment.

60.  Prepare:
This phase involves composition of a negotiation team. The
negotiation team should consist of representatives of both
the parties with adequate knowledge and skills for
negotiation.
In this phase both the employer’s representatives and the
union examine their own situation in order to develop the
issues that they believe will be most important.
The first thing to be done is to determine whether there is
actually any reason to negotiate at all.
A correct understanding of the main issues to be covered and
intimate knowledge of operations, working conditions,
production norms and other relevant conditions is required.

61.  Discuss:
Here, the parties decide the ground rules that will guide the
negotiations.
A process well begun is half done and this is no less true in
case of collective bargaining.
An environment of mutual trust and understanding is also
created so that the collective bargaining agreement would be
reached.

62.  Propose:
This phase involves the initial opening statements and the
possible options that exist to resolve them.
In a word, this phase could be described as ‘brainstorming’.
The exchange of messages takes place and opinion of both
the parties is sought.

63.  Bargain:
Negotiations are easy if a problem solving attitude is adopted.
This stage comprises the time when ‘what ifs’ and ‘supposals’
are set forth and the drafting of agreements take place.

64.  Settlement:
Once the parties are through with the bargaining process, a
consensual agreement is reached upon wherein both the
parties agree to a common decision regarding the problem or
the issue.
This stage is described as consisting of effective joint
implementation of the agreement through shared visions,
strategic planning and negotiated change.

65. Collective bargaining includes not only negotiations between
the employers and unions but also includes the process of
resolving labor-management conflicts.
Thus, collective bargaining is, essentially, a recognized way of
creating a system of industrial jurisprudence.
It acts as a method of introducing civil rights in the industry,
that is, the management should be conducted by rules rather
than arbitrary decision making.
It establishes rules which define and restrict the traditional
authority exercised by the management.

66.  Develops a sense of self-respect and responsibility among the
employees
 Increases the strength of the workforce, thereby, increasing
their bargaining capacity as a group.
 Increases the morale and productivity of employees.
 Restricts management’s freedom for arbitrary action against
the employees. Moreover, unilateral actions by the employer
are also discouraged.

67.  It becomes easier for the management to resolve issues at
the bargaining level rather than taking up complaints of
individual workers.
 Collective bargaining tends to promote a sense of job security
among employees and thereby tends to reduce the cost of
labor turnover to management.
 Collective bargaining opens up the channel of communication
between the workers and the management and increases
worker participation in decision making.
 Collective bargaining plays a vital role in settling and
preventing industrial disputes.


68.  Effective collective bargaining machinery strengthens the
trade union movement.The workers feel motivated as they
can approach the management on various matters and
bargain for higher benefits.
 It helps in securing a prompt and fair settlement of
grievances. It provides a flexible means for the adjustment of
wages and employment conditions to economic and
technological changes in the industry, as a result of which the
chances for conflicts are reduced.

70.  State intervention in labour matter can be traced back to the
enactment of the Employers and Workmen’s Disputes Act
1860 which provided for the speedy disposal of the dispute
relating to the wages of workmen engaged in railways, canals
and other public works, by Magistrates.
 After World War-1 however, State intervention in Dispute
Resolution became more systematic and effective.
 The Trade Dispute Act was passed providing for constituting
courts of Inquiry and Conciliation Boards and forbidding
strikes in public utility services without notice.

71.  The Act 1920 was replaced by the Trade Dispute Act 1929
incorporating provisions relating to general strikes as well.
Thereafter Bombay Trade Dispute (Conciliation) Act 1934 was
passed providing for permanent cadre for conciliators in
selected industries.
 In the Year 1938 , Trade Dispute Act 1929 was amended
authorizing and Central and Provincial Govts. to appoint
Conciliation Officers.
 In the same year, Bombay Industrial Dispute Act 1938 was
passed providing for setting up of an industrial Court and
prohibiting strikes and lockouts under certain conditions.

72.  Thereafter, during the emergency caused by World War II ,
under Rule 81A of the Defence of India Rules , power was
given to the appropriate Govt. to appoint industrial tribunals
and enforce the awards passed by them.
 Later on Bombay Industrial Disputes Act was replaced by the
Bombay Industrial Relations Act 1946.
 Little later in the year 1947, the Industrial Dispute Act 1947
(here after referred as the Act) was passed providing for
appointing /constituting conciliation officers, boards of
conciliation, courts of inquiry and industrial tribunals.

73.  The Act was amended in the year 1956 providing for
constituting labour courts and national industrial tribunals.
 The subject labour having been in the concurrent list of the
Constitution of India, both the centre and states have the
power to legislate on labour matters.
 Several states have amended the Central Act 1947 so as to
suit to them while others have enacted their own Acts.
 The Act provides for prevention and settlement of industrial
disputes.

74.  The main object of the enactment of the Act is to ensure
social justice to both the employees and employers and
advance the progress of industry by bringing about the
existence of harmony and cordial relationship between the
parties so as to bring about industrial peace which would
accelerate procedure activity of the country.

75.  Industrial Peace and industrial harmony may have the same
meaning; but we are inclined to think that the concept of
industrial peace is somewhat negative and restrictive.
 It emphasizes absence of strife and struggle.
 The concept of industrial harmony is positive and
comprehensive and it postulates the existence of
understanding cooperation and a sense of partnership
between the employers and the employees.
 That is why we prefer to describe our approach as one is
quest of industrial harmony.

76. Ingredients of an Industrial Dispute…
Dispute must be between :
◦ Employer vs employer
◦ Employer vs workmen
◦ Workmen vs workmen
The subject matter of the dispute must be :
◦ connected with employment or non-employment
◦ connected with terms of employment
◦ connected with conditions of labour
Dispute must be raised by
workmen : by union, or a group of workmen.

77. Can all employees in an industry raise an Industrial
Dispute ?
Answer is NO
Industrial dispute can be raised only by employees satisfying
the definition of workman in section 2(s).
Those not satisfying the definition of workman cannot raise a
dispute under id act.

78. Definition of Workmen
 All employees in an establishment are not workmen under the
Industrial Dispute Act.
 Only employees doing any manual, unskilled, skilled, technical,
operational, clerical (irrespective of whether their wages is above
rs.1600/- per month or not) and such of the supervisors drawing
wages below rs.1600/- pm
 It also includes dismissed workmen falling under the above categories.
 However managerial staff are totally excluded irrespective of their
salary.
 Wages will include basic, DA, value of house accommodation, other
amenities, travelling concession, commission payable and other
remuneration payable under the contract, but excludes any bonus and
retirement benefits like EPF/gratuity etc.

79. Can only a majority of workmen in an industry raise a
dispute ?
It is not necessary that a majority of workmen should support
the raising of the dispute.
It is enough if a substantial number back the raising of the
dispute.
While a union can raise a dispute, it is not necessary that only
a union can raise a dispute.
A single workman cannot normally raise dispute.

80.  can workmen raise an industrial dispute pertaining to non-
workmen ?
Answer is yes- they can as per section 2(k) raise an industrial
dispute regarding any person if it can be shown that person has
a nexus with their industry (they could therefore raise disputes
demanding benefits or reinstatement of dismissed managers /
supervisors).
 how can an individual workman redress his dispute ?
He should get other workmen / union to sponsor it to make it an
industrial dispute under sn.2(k). If it is a termination case he can
raise it himself under sn.2(a).

82.  Conciliation by an officer [sn.4 & 2(d)] and a board (an
ad- hoc board consisting of an independent chairman
and equal number of workmen and employer
representatives) [sn.5 & 2(e)].
 This is not a permanent body, set up only for a
particular dispute and the board will stand dissolved
when the issue is settled.

83. Duties of a conciliation officer
As per sn.12 (1) and rule 9(1)
 when a strike / lockout notice is issued under rule 71/72 in
a public utility service, he is bound to immediately convene
a conciliation meeting.
 As per sn.12(1) and rules 9(2) & 10, in non public utility
service or in non-strike disputes in public utility service he
is not bound, but may hold conciliation meetings.
 He will however hold ordinary joint meetings which would
not be counted as conciliation meetings. He will try to
persuade the parties to resolve the disputes as per rules
10a, 11, 12 and 13.

84.  If he succeeds in bringing about an understanding, he gets the
parties to sign a settlement in form-h as per sn.12(3), 18(3) and
rule-58. As per rule 75, he has to maintain a register in form-o,
giving the details of the settlements signed by him.
 If he fails to bring about a settlement, as per sn.12(4) he has to
inform the government and this is called a failure report.
 Before sending the failure report he should ask the disputing
parties whether they would like the dispute to be sent for
arbitration.
 As per sn.12(6) he is expected to close the conciliation
proceedings within 14 days but with the consent of the parties
he can keep the conciliation process going for a longer duration.

85.  When notice of change is issued under sn.9a he is obliged to
hold meetings to resolve the dispute.
 When approval/permission applications are filed under
sn.33/33a he is required to pass appropriate orders. Note :
unlike in arbitration/adjudication proceedings, a conciliation
officer has no power to enforce his decision on the parties. He
can only try to persuade the parties to accept his suggestion.

86. Powers of a conciliation officer…
As per sn.11(1) and rule 23, he can enter and inspect any
establishment.
As per sn.11(4) and rule 17 he can summon any person as
witness or compel the production of documents having
relevance to the dispute.
As per sn.33/33a and rules 59, 60, 61 he can grant/refuse
approval/permission to petitions filed by employer on
disciplinary matters during pendency of conciliation before
him.

87. “Adjudication is a judicial (decision making) process for
settlement of industrial disputes”
Adjudicating bodies under the ID Act
 Labour Courts
 Tribunals
 National Tribunals

88. Can parties (employer or workmen) approach the
adjudicating bodies directly for dispute settlement ?
 Unlike in the civil courts, parties cannot approach the
labour court / tribunal / national tribunal directly.
 Disputes can be taken up by labour court / tribunal /
national tribunal only if they are referred to them by the
government.
 Government can refer the disputes after receipt of the
conciliation failure report or when the parties request the
government to make a reference

89. When does adjudication commence and when does it end ?
 Adjudication proceedings are deemed to have commenced
from the date the government referred the dispute to labour
court/tribunal / national tribunal.
 It is deemed to have concluded on the date the award
becomes enforceable as per sn.17a [sn.20(3)].

90. Duties of labor court / tribunal / national tribunal
 To hold adjudicating proceedings expeditiously and submit
their report to the government within the prescribed time
limit .
 To confine the scope of their judgment to the points
referred to them for determination

91. The powers of labour court / tribunal /national tribunal
 They can enter any establishment for fact finding
 Can enforce attendance of any person and production of
documents and materials having bearing on the dispute
 Empowered to administer oaths and issue summons to
parties / witnesses.
 Can appoint assessors to assist them

92.  Can pass orders on awarding costs to the aggrieved party
 can exercise powers of civil courts for purposes of the civil
procedure code of 1973
 Has powers to review disciplinary punishment orders issued
by management and can reduce/substitute punishments or
order reinstatement with/without back wages
 can pass orders on money claim petitions filed by workmen
against employers.

93. Procedure for enforcing adjudication awards
 Decisions given by labour court / tribunal / national tribunal are
called awards
 Awards are not enforceable directly.
 The labour court / tribunal / national tribunal can only send
their findings to the government and cannot announce them
directly.
 After receipt of the report, the appropriate government would
decide whether to accept / modify / with-hold the report
 The government has to announce their decision through the
gazette within 30 days of receipt of the report
 The government order on the adjudication decision becomes
enforceable on the expiry of 30 days from the date of the
gazette notification

94. “It is a dispute resolving process through an umpire
selected by the disputing parties.”
 While the presiding officers of conciliation and adjudication
proceedings are full time officers appointed by
government, arbitrators are ad-hoc umpires appointed by
the disputants.
 While the conciliation officer has no power to impose his
decision on the parties, an arbitrator has authority to give
an order which cannot be challenged by the parties.
 Adjudicators get their power from statute , arbitrators
acquire their power from the consent of the parties.

95. How is arbitration process initiated ?
When conciliation fails, before sending the failure report, the
conciliation officer asks the parties if they wish to send the
dispute for arbitration.
If parties desire so, they must sign an arbitration agreement
in form-c under rule 7 and send it to the government.
Government will then notify him as an arbitrator
Awards of arbitrators?
Arbitrators hear the pleadings of both parties and submit their
orders to the government who processes it like an
adjudication award and it is implemented like an adjudication
award.

96.  What is a Strike?
“Workmen refusal to work or accept employment by a body
of persons in industry”
 What is a Lockout?
“Employer temporary closing of place of employment, or
refusal to continue to employ persons employed by an
employer”

97. Is notice of strike/lockout mandatory ?
If industry falls under definition of public utility service or if
the terms of employment (appointment letter) or standing
order requires giving of notice.
When it is non-mandatory?
In non-public utility service, unless standing orders or
appointment orders stipulates giving of notice, or it is in
retaliation for a strike or lockout.

98. When would strikes or lockouts be illegal in public utility
service?
when strike / lockout is commenced :
a) without giving atlest 14 days notice
b) commenced after 42 days of notice
c) prior to date indicated in the notice
d) during pendency of proceedings before conciliation
officer/board and seven days thereafter
e) during pendency of proceedings before labour court /
tribunal / arbitrators and two months thereafter
f) during the period when a settlement or award is in
operation on matters covered

99. In non-public utility service
When strike / lockout is commenced :
 In breach of contract
 During pendency of conciliation before a board and seven
days thereafter
 During pendency of conciliation before labour court / tribunal
/ arbitrator and two months thereafter
 During the period on matters covered when a settlement or
award is in operation.
Note : a strike/lock out legally commenced would become
illegal if continued after government bans it under section
10(4a) and 24

100. On workmen?
All workmen no wages
Instigators could be punished/imprisoned under sections 26,
27, 28.
On employer?
Will have to pay wages
Can be punished/imprisoned under sections 26, 27, 28.
On any person?
Any person extending financial assistance to further an illegal
strike or lockout would be violating section 25.