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1. Worker’s Participation in Management: It is a method whereby the workers are allowed to be consulted and to have a say in the management of the unit. The important schemes of workers’ participation are: Works committee, joint management council (JMC), shop council and joint council. These have been discussed later in this book. 2. Collective Bargaining: According to Dale Yoder, “Collective bargaining is the term used to describe a situation in which essential conditions of employment are determined by a bargaining process undertaken by representatives of a group of workers on the one hand and of one or more employers on the other.” Collective bargaining not only includes negotiation, administration and enforcement of the written contracts between the employees and the employers, but also includes the process of resolving labour-management conflicts. The role of collective bargaining for solving the issues arising between the management and the workers at the plant or industry level has been widely recognised. Labour legislation and the machinery for its implementation prepare a framework according to which industrial establishments should operate. But whatever labour laws may lay down, it is the approach of employers and trade union leaders which matters. Unless both are enlightened, industrial harmony is not possible. Therefore, the solution to common problems can be found directly through negotiation between both parties and in this context, the scope of collective bargaining is very wide. 3. Grievance Procedure: Grievances are symptoms of conflicts in the enterprise. So, they should be handled very promptly and efficiently. Coping with grievances forms an important part of a manager’s job. The manner in which he deals with grievances determines his efficiency in dealing with the subordinates. A manager is successful if he is able to build a team of satisfied workers by removing their grievances. This would help in the prevention of industrial disputes in the organisation. 4. Tripartite Bodies: Industrial relations in India have been shaped largely by principles and policies evolved through tripartite consultative machinery at industry and national levels. The aim of the consultative machinery is to bring the parties together for mutual settlement of differences in a spirit of cooperation and goodwill. Indian Labour Conference (ILC) and Standing Labour Committee (SLC) have been constituted to suggest way and means to prevent disputes. The representatives of the workers and employers are nominated to these bodies by the Central Government in consultation with the All-India organisations of workers and employers. The agenda of ILC/SLC meetings is settled by the Labour Ministry after taking into consideration the suggestions set to it by member organisations. These two bodies work with minimum procedural rules to facilitate free and fuller discussions among the members. The ILC meets once a year, whereas the SLC meets as and when necessary.
1.Work Committee: There is a Works Committee in factories employing 100 or more workers. [ section 3]. The committee will consist of equal number of representatives of employer and employees. Representatives of employees will be selected in consultation with Registered Trade Union. The Works Committee will first try to settle disputes. 2.Conciliation: Conciliation refers to the process by which representatives of employees and employers are brought together before a third party with a view to discuss, reconcile their differences and arrive at an agreement through mutual consent. The third party acts as a facilitator in this process. Conciliation is a type of state intervention in settling the Industrial Disputes. The Industrial Disputes Act empowers the Central & State governments to appoint conciliation officers and a Board of Conciliation as and when the situation demands.
Consolation Officer: If dispute is not solved, it will be referred to Conciliation Officer‘. He is appointed by Government. [Section 4]. The duties of a conciliation officer are: To hold conciliation proceedings with a view to arrive at amicable settlement between the parties concerned. To investigate the dispute in order to bring about the settlement between the parties concerned. To send a report and memorandum of settlement to the appropriate government. To send a report to the government stating forth the steps taken by him in case no settlement has been reached at.
Board of consolation. The matter may also be referred to Board of Conciliation‘. [section 4]. The Board of Conciliation consists of a chairman who must be an independent person and 3/4 members. Unsolved matters may be referred to labour tribunal / industrial tribunal / labour court (sec. 12 (5)) 2.Adjudication: Adjudication is the ultimate legal remedy for settlement of Industrial Dispute. Adjudication means intervention of a legal authority appointed by the government to make a settlement which is binding on both the parties. In other words adjudication means a mandatory settlement of an Industrial dispute by a labour court or a tribunal. For the purpose of adjudication, the Industrial Disputes Act provides a 3-tier machinery: Labour court Industrial Tribunal National Tribunal Labour Court: The appropriate government may, by notification in the official gazette constitute one or more labour courts for adjudication of Industrial disputes relating to any matters specified in the second schedule of Industrial Disputes Act. They are: Dismissal or discharge or grant of relief to workmen wrongfully dismissed. Illegality or otherwise of a strike or lockout. Withdrawal of any customary concession or privileges. Where an Industrial dispute has been referred to a labour court for adjudication, it shall hold its proceedings expeditiously and shall, within the period specified in the order referring such a dispute, submit its report to the appropriate government.
Industrial Tribunal: The appropriate government may, by notification in the official gazette, constitute one or more Industrial Tribunals for the adjudication of Industrial disputes relating to the following matters: Wages Compensatory and other allowances Hours of work and rest intervals Leave with wages and holidays Bonus, profit-sharing, PF etc. Rules of discipline Retrenchment of workmen Working shifts other than in accordance with standing orders It is the duty of the Industrial Tribunal to hold its proceedings expeditiously and to submit its report to the appropriate government within the specified time.
National Tribunal: The central government may, by notification in the official gazette, constitute one or more National Tribunals for the adjudication of Industrial Disputes in Matters of National importance Matters which are of a nature such that industries in more than one state are likely to be interested in, or are affected by the outcome of the dispute. It is the duty of the National Tribunal to hold its proceedings expeditiously and to submit its report to the central government within the stipulated time. 4.Arbitration: A process in which a neutral third party listens to the disputing parties, gathers information about the dispute, and then takes a decision which is binding on both the parties. The conciliator simply assists the parties to come to a settlement, whereas the arbitrator listens to both the parties and then gives his judgment. There are two types of arbitration: Voluntary Arbitration: In voluntary arbitration the arbitrator is appointed by both the parties through mutual consent and the arbitrator acts only when the dispute is referred to him. Compulsory Arbitration: Implies that the parties are required to refer the dispute to the arbitrator whether they like him or not. Usually, when the parties fail to arrive at a settlement voluntarily, or when there is some other strong reason, the appropriate government can force the parties to refer the dispute to an arbitrator.
K H U S H B U B H A R D W A J
STANDING LABOR COMMITTEE
INDIAN LABOR CONFERENCE
CODE OF DISCIPLINE
To give shape to the IR policy tri partite bodies
were set up by the government to provide a forum
to discuss upon labor issues, policies and
Indian labor conference
Standing labor committee
Committee of conventions
The aim of the consultative machinery is
“to bring the parties together for mutual settlement
of differences in a spirit of cooperation an goodwill”
These bodies play the role of consultants!!
STANDING LABOR COMMITTEE
The standing order committee was set up in 1942
To advice the government of India on matters
brought to it’s notice.
Preventive steps should be taken so that industrial
disputes do not occur
If preventive machinery fails then the Government
activates the industrial Settlement machinery.
MACHINERY FOR HANDLING
(Voluntary or Non-statutory)
Indian Labor Conference (ILC) and Standing Labor
Committee (SLC) have been constituted to suggest
ways and means to prevent disputes.
Central Government appoints the representatives
of the workers and employers in consultation with
the All-India organizations of workers and
The Labour Ministry settles the agenda for
ILC/SLC meetings after taking into consideration
the suggestions sent to it by member organisations.
These two bodies work with minimum procedural
rules to facilitate free and fuller discussions among
ILC meets once a year, whereas the SLC meets as
and when necessary.
FUNCTIONS OF ILC
To promote uniformity in labor legislation.
To lay down a procedure for the settlement of
To discuss matters of All-India importance as
between employers and employees.
FUNCTIONS OF THE STANDING
To consider and determine such questions as
may be referred to it by the Plenary Conference
or the Central Government.
To render advice, taking into account the
suggestions made by various governments,
workers and employers.
CODE OF DISCIPLINE
It is a set of self-imposed mutually agreed voluntary
principles of discipline and relations between the
management and workers.
In view of growing industrial conflict, the Fifteenth
Indian Labor Conference agreed that there should be a
set of general principles of discipline, which should be
adopted by labor and management voluntarily.
To evolve such a set of principles, a tripartite sub-
committee was set up.
CODE OF DISCIPLINE
The resulting draft was discussed at Standing Labour
Committee meeting in October 1957.
At the Sixteenth Indian Labor Conference held in 1958,
the final form of the Code of Discipline was approved.
There are three sets of principles in the Code Of
The first set of principles is for the management and
The second set is for the Management
The third one is for the union
The Standing Orders regulate the conditions of
employment from the stage of entry to the organisation to
the stage of exit from the organisation.
Thus, they form the regulatory pattern for industrial
relations. Since the Standing Orders provide Do’s and
Don’ts, they act as a code of conduct for the employees
during their working within the organisation.
The purpose of having Standing Orders at the plant level
is to regulate industrial relations.
They define with sufficient precision the conditions of
employment under the employers and hold them liable to
make the said conditions known to workmen employed by
These orders regulate the following Conditions of
The Standing Orders are much wider in scope as compared
to the Code of Discipline.
The Code of Discipline just applies to the management and
union and that also a specific work related area.
The Standing Orders on the other hand apply to all the
aspects of an employees working.
It encompasses all the rules and regulations from his entry
SETTLEMENT OF INDUSTRIAL DISPUTES
Preventive measures seek to create an environment where
industrial disputes do not arise.
If they arise every effort is required to be made to settle them
as early as possible so that they do not lead to work stoppage.
The machinery for the settlement of industrial disputes has
been provided under the Industrial Disputes Act, 1947.
This machinery comprises:
(b) Arbitration, and
Conciliation or mediation signifies third party intervention in
promoting the voluntary settlement of disputes.
The International Labour Organisation has defined
“ 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 of rational and orderly discussion of differences
between the parties to a dispute under the guidance of a conciliator.”
The conciliator assists the parties to dispute in their
negotiations by removing bottlenecks in communication
Voluntary arbitration became popular as a method of
settling difference between workers and
On failure of conciliation proceedings, the
conciliation officer may persuade the parties to refer
the dispute to a voluntary arbitrator.
Voluntary arbitration refers to getting the disputes
settle through an independent person chosen by the
parties involved mutually and voluntarily.
The ultimate remedy for the settlement of an unresolved
dispute is its reference by the Government to adjudication.
Adjudication may be described as process which involves
intervention in the dispute by a third party appointed by the
government, with or without the consent of the parties to the
dispute, for the purpose of settling the dispute.
The Industrial Disputes Act, 1947 provides a three-tier
adjudication machinery comprising
Industrial Tribunals, and
However, adjudication is not a democratic method
and may create bitterness among the parties. It tends
to encourage litigation and irresponsible behavior
among employers and labor.
The functioning of the adjudication machinery has in
practice been unsatisfactory.
Settlement made is binding to both the parties.
VENUE: Vigyan Bhawan, New Delhi
DATE: 20th and 21st July 2015
DURATION: 8 hours
INAUGRATED BY: Hon'ble Prime Minister,
Mr. Narendra Modi
Social security for unorganized workers
Social security for workers in organised sector
Employees’ provident fund
Employees’ Deposit Linked Insurance Scheme, 1976
Employees state insurance corporation
Amendment in the Mines Act, 1952
Amendment in the Factories Act, 1948
Comprehensive amendment to the Employees
Provident Fund & Miscellaneous Provisions Act
Amendment to the Minimum Wages Act, 1948
Amendment to the Payment of Bonus Act 1965
COMPOSITION OF INDIAN LABOUR
Minister of State (Independent Charge) for Labour &
34 members from the central government and all
the state government members
Employers’ Group (Total 21 Seats)
Council of Indian Employers (10 seats)
All India Manufacturers Organization (3 + 1* seats)
Laghu Udyog Bharti (3 seats)
Federation of Indian Chambers of Commerce & Industry (1 + 1 seat)
Confederation of Indian Industries (CII) (1 + 1@ seat)
The Associated Chambers of Commerce & Industry of India (1 seat)
* One additional seat is allocated to AIMO & LUB in the ILC on rotational
@ One additional seat is allocated to FICCI, CII & ASSOCHAM in the ILC
on rotational basis starting with FICCI in 2009
TOTAL 21 SEATS
Bhartiya Mazdoor Sangh (BMS) (5 seats)
Indian National Trade Union Congress (INTUC) (3 seats)
All India Trade Union Congress (AITUC) (2 seats)
Hind Mazdoor Sabha (HMS) (2 seats)
Centre of Indian Trade Unions (CITU) (2 seats)
All India United Trade Union Centre (AIUTUC) (1 seat)
Trade Union Coordination Centre (TUCC) (1 seat)
Self-Employed Women’s Association (SEWA) (1 seat)
All India Central Council of Trade Unions (AICCTU)(1 seat)
Labour Progressive Federation (LPF) (1 seat)
United Trade Union Congress (UTUC) (1 seat)
National Front of Indian Trade Unions (Dhanbad) (1 seat)