Machineries provided for settlement of disputes by industrial disputes act, 1947

MACHINERIES PROVIDED FOR SETTLEMENT OF
DISPUTES BY INDUSTRIAL DISPUTES ACT, 1947.

BY
MANISHA VAGHELA

INTRODUCTION TO INDUSTRIAL DISPUTES ACT, 1947.

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 Prior to the year 1947, Industrial Disputes were being
settled under the provisions of the Trade Disputes Act,
1929. Experience of the working of the 1929 Act revealed
various defects which needed to be overcome by a fresh
legislation. Accordingly the Industrial Disputes Bill was
introduced in the Legislature. The Bill was referred to the
Select Committee. On the recommendations of the Select
Committee amendments were made in the original Bill.
vaghela_manisha13@yahoo.com BY:MANISHA VAGHELA

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 The Industrial Disputes Bill having been passed by the Legislature
received its assent on 11th March, 1947. It came into force on 1st
April, 1947 as THE INDUSTRIAL DISPUTES ACT, 1947.
 The Industrial Disputes Act, 1947 is a Piece of Central Legislation
enacted to both employers and employees and thereby promote
industrial progress.
 The Act extends to the whole of India and applies to every industrial
establishment carrying on any business, trade,


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manufacture or distribution of goods and services,
irrespective of the number of workmen employee
therein.
 The Industrial Dispute Act, 1947 armed the government
with powers which could be used whenever it considered
fit to intervene in Industrial Disputes.


DEFINITION OF Industrial Disputes.

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 “Industrial Disputes means any dispute or difference between
employers and employers, or employers and workmen or
between workmen and workmen which is connected with
employment or non-employment or terms of employment or
conditions of labour of any person.”
- Industrial Disputes Act, 1947 [Section
2(k)].

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 Industrial Disputes means any conflicts, unrest or dissentation
between the workers and the management on any ground.

 Industrial strifes constitute militant and organized protest
against existing industrial condition. They are symptoms of
industrial unrest in the same way that boils are symptoms of a
disorder of body.


ESSENTIALS OF Industrial Dispute Act,
1947.
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 There must be a dispute or difference.

 The dispute or difference must be between employers & employers or
between employers & workmen or between workmen & workmen.
 The dispute or difference must be connected with employment or non-
employment or terms of employment or with the condition of labor of any
person.

 Dispute should be related to working industry.


OBJECTIVES OF INDUSTRIAL DISPUTE ACT,
1947
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 To make provision for the investigation of settlement of
industrial dispute and for certain other purposes.

 To ensure the industrial peace.

 To ensure harmonious relations through monitoring of
industrial relations in the organization.

 To implement the settlement of disputes.


RELEVANT ILO STANDARDS
9

 The International Labor Organization [ILO] has set up
International Standards related to labor matters including
industrial dispute settlement. The ILO conventions and
recommendations which are relevant to industrial dispute
settlements are as follows:


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 The termination of employment convention, 1982.
 Examination of grievance recommendation, 1967.
 Voluntary conciliation and arbitration recommendation, 1951.
 Collective bargaining convention, 1981.
 The tripartite consultation [International Labor Standards] convention, 1976.
 Right to organize collective bargaining convention, 1948.
 The freedom of association and protection of right to organize convention, 1948.


Machineries provided for settlement of
disputes by Industrial Disputes Act, 1947.
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 The Industrial Disputes Act provides an elaborative and
effective machineries for bringing about Industrial Peace
in an organization by setting up the following Authorities
for the Investigation and Settlement of industrial
Disputes.


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 Works Committee [Sec. 3].  Industrial Tribunals [Sec. 7(A)].
 Conciliation Officer [Sec. 4].  National Tribunals [Sec. 7(B)].
 Board of Conciliation  Voluntary Arbitration
[Sec. 5]. [Sec. 10(A)].
 Courts of Inquiry [Sec. 6].  Adjudication.
 Labor Courts [Sec. 7].  Mediation.


Works committee
13

According to Section 3, of the act empowers the appropriate
government to require an employer of any industrial
establishment where 100 or more workmen are employed or
have been employed on any day in the preceding 12 months to
constitute a Works Committee.
 This committee consists of representatives of the employer
and the workmen engaged in the establishment so that the
number of representatives of the workmen is not less than
number of

representatives of the employer.

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 The representatives of the workmen shall be chosen among
the workmen engaged in the establishment and in consultation
with their trade unions, if any, registered under the Trade
Unions Act,1926.


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 The duty of the works committee is to promote measures for
securing and preserving amity and good relations between the
employer and the workmen, and to that end to comment upon
matters of their common interest or concern and endeavor to
compose any material difference of opinion in respect of such
matters.


Conciliation Officer

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 According to Section 4, the appropriate government may, by
notification in the official gazette, appoint such Conciliation
Officers, charged with the duty of mediating in and promoting
the settlement of industrial disputes.

 A Conciliation Officer may be appointed for a specified area or
for specified industries in a specified area or for one or more
specified industries and his appointment may be permanent or
temporary.

 The Conciliation Officer for the purpose of bringing about a

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settlement of the dispute, without delay, investigate the
dispute and all matters affecting the merits and the right
settlement thereof and 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.


Board of Conciliation

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

 According to Section 5, the appropriate government may as
occasion arises by notification in the official gazette constitute
a Board of Conciliation for promoting the settlement of an
industrial dispute.

 A Board shall consist of a chairman and two or four other
members, as the appropriate government thinks fit.


 The chairman shall be an independent person and the other
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members shall be persons appointed in equal numbers to
represent the parties to the dispute. Board of Conciliation
enjoy more powers than those enjoyed by Conciliation Officer.


Courts of Inquiry

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 According to Section 6, The appropriate government may as
occasion arises by notification in the official gazette constitute a
Court of Inquiry for inquiring into any matter appearing to be
connected with or relevant to an industrial dispute.
 A Court may consist of one independent person or of such number
of independent persons as the appropriate government may think
fit and where a Court consists of two


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or more members, one of them shall be appointed as the chairman.

 A Court, having the prescribed quorum, may not act
withstanding the absence of the chairman or any of its
members or any vacancy in its member.


Labor Courts
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 According to Section 7, The appropriate government may, by
notification in the official gazette, constitute one or more Labor
Courts for the adjudication of industrial disputes relating to any
matter and for performing many other functions as may be
assigned to them, under this Act.
 A Labor Court shall consist of one person only to be appointed
by the appropriate government. The Labor Court has an


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inherent right in the interest of justice to seek proper assistance
and grant ‘leave’ to a party before it is represented by a legal
practitioner.


Industrial Tribunals

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 According to Section 7[A], the appropriate government may,
by notification in the official gazette, constitute one or more
Industrial Tribunals for the adjudication of industrial disputes
relating to any matter and for performing many other
functions as may be assigned to them under this Act.
 An Industrial Tribunal shall consist of one person only to be
appointed by the appropriate government.


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 Generally, Industrial Tribunal are appointed for adjudicating
on the matters which have failed to form a solution through
the other machinery of conciliation authorities .These
Tribunals are somewhat different from courts though they
have been empowered to adjudicate on industrial disputes.


National tribunals
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 According to Section 7[B], The Central Government may, by
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 a nature that
industrial establishments situated in more than one State are
likely to be interested in, or affected by, such disputes.


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 A National Tribunal shall consist of one person only to be
appointed by the Central Government. The Central
Government may, if it so thinks fit, appoint two persons as
assessors to advise the National Tribunal in the proceeding
before it.


Voluntary Arbitration

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 Voluntary Arbitration is one of the recognized and democratic
ways for settling industrial dispute it is the best method for
resolving industrial conflicts and is a close supplement to
collective bargaining.
 It is quicker way of settling industrial dispute. It is the
functioning of democracy in industry that inculcates some
degree of union management accommodation.


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 Voluntary Arbitration in India was introduced and experimented for
the first time in textile industry of Ahmadabad as far back as 1920
under the initiative and guidance of Mahatma Gandhi.

 The Industrial Dispute Act, 1947 as originally passed, did not
contain any provision for Voluntary Arbitration. In 1956,this act
was amended and a new Section 10 [A] was inserted providing for
voluntary reference of disputes to arbitration.


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 The National Arbitration Promotion Board [NAPB] was set up
by the government of India in 1967 to strengthen the system
of Voluntary Arbitration in our country.


Adjudication

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 Adjudication means a mandatory of industrial disputes by
Labor Courts or Industrial Tribunals or National Tribunals under
this act or under any other corresponding state statues.
 The government generally refers an industrial dispute for
adjudication on failure of conciliation proceedings.
Adjudication machinery has exercised considerable influence
on several aspects of conditions of work.


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 By and large the ultimate legal remedy for the settlement of
an unresolved dispute is its reference to Adjudication by the
appropriate government.


Mediation

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 Mediation is a process in which top parties involved in contract
negotiation by which an outside party is called in by union and
management to help them reach a settlement.

 The mediators function is to provide a positive environment for
dispute resolution by drawing on extensive professional
experience in the field of labor management interaction.


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 A mediator must possess attributes such as integrity,
impartiality, and fairness. A mediator must be effective
communicator, should know the importance of timing and
must have trust and confidence of the parties.


Conclusion

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This act ensures harmonious relations through:

a) Monitoring of industrial relations in Central Sphere.

b) Intervention, mediation and conciliation in industrial
disputes in order to bring about settlement of disputes.

c) Intervention in situations of threatened strikes and lockouts
with a view to avert the strikes and lockouts.

d) Implementation of settlements and awards.


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 The Industrial Disputes Act, 1947 is a piece of Central
Legislation enacted to both employers and employees and
thereby promote industrial progress.
 The Act extends to the whole of India and applies to every
industrial establishment carrying on any business, trade,
manufacture or distribution of goods and services, irrespective
of the number of workmen employee therein.


BIBILIOGRAPHY

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 Labour Laws.
By - Taxmann’s.
Publication: Taxmann Allied Services Pvt. Ltd.

 Industrial Relation.
By - A.M. Sarma.
Publication: Himalaya Publishing House.


Machineries provided for settlement of disputes by industrial disputes act, 1947

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