THE INDUSTRIAL DISPUTES ACT, 1947

Industrial Conflict


Conflict is inherent in industrial relations today. Interest of labor and management usually opposes The prevailing unrest , work stoppages resulting from strikes or lock-outs , slowing down of production etc.

When issues of conflict are submitted to the management for negotiation, they take the form of industrial disputes. Special causes of industrial conflict may be treated as causes of industrial disputes.;

OBJECTIVES
 

To prevent & resolve industrial disputes Securing amity & good relations between workers & management, for common good

IMP. DEFINITIONS
 

Industrial Dispute : Any dispute between :

Employers & employers Employers & workmen Workmen & workmen

Connected with
The terms of employment or Conditions of labour of any person.

DEFINE WORKMAN U/S 2(S)



Any person (including an apprentice)

employed in an industry to do any manual, unskilled, skilled technical operational, clerical or supervisory work for hire or reward Whether the terms of employment be express or implied and for the purpose of this Act includes any such person who has been dismissed discharged or retrenched in connection with or as a consequence of an industrial dispute or whose dismissal or retrenchment has led to the dispute

But, does NOT include a person :

who is subject to Army Act, 1950 , Air Force Act 1950 or Navy Act 1957 Who is employed in police service as an officer or other employee of a prison Who is employed mainly in managerial or admn. Capacity A supervisor drawing wages exceeding a specified amount (mentioned in the Rules)

DEFINE INDUSTRY [U/S 2(J)]



Any systematic activity carried on by cooperation between employer & his workmen (whether workmen are employed directly or through an agency) for the production, supply or distribution of goods or services. or services with a view to satisfy human wants or wishes (not being wants or wishes which are merely spiritual or religious in nature), whether or not,Whether or not any capital has been invested or such activity is being carried out for the purpose of making profits

        

But it DOES NOT include: Any agricultural operation (except when the agri operation is integrated with another activity & that is the predominant one) Hospitals or dispensaries Educational, scientific, research or training institutions Khadi or village industry Any sovereign function of the govt Any domestic service Any profession practiced by an individual if the number of persons employed by the individual is less than ten Cooperative society employing less than 10 persons

MACHINERY FOR THE PREVENTION & SETTLEMENT OF INDUSTRIAL DISPUTES



Authorities appointed under ID Act :

Works Committee Conciliation Officer Board of Conciliation Court of Inquiry Labour Court Industrial Tribunal National Tribunal

WORKS COMMITTEE (U/S 3)



What is the statutory requirement for constituting WC? Every Industrial establishment in which: 100 or more workmen are employed or have been employed on any day in the preceding 12 months. Whom does it consist of ? Bipartite representatives of both Representatives of workmen equal to that of employer , Term of representatives shall be 2 years Which type of issues handled ? Matters arising out of the day to day working of the organisation (e.g health, safety , welfare of employees , productivity , quality, cost consciousness)
Consultative body

Conciliation officer
 

Appropriate govt. may appoint CO CO may be Labor officer(less than 20 workmen),Labor Commissioner or Deputy Com for more than 20. CO work is to induce both the parties to the dispute to come to fair and amicable settlement. Mediation (negotiate on proposal made by mediator v/s Conciliation( own proposal) Send a report (proceedings- successful or failed) to govt. within 14 days of start of proceedings After considering the govt may refer the dispute to BOC , Labour court, Tribunal or national tribunal.

Board of concilliation
Composition :Chairman and 2 or 4 members , Duties & power same as conciliatory officer : if dispute is settled then report to be sent to app. Govt.If not then also. Submit within 2 months

Courts of Inquiry


The app govt may constitute COI connected with dispute A COI may consist of one or more persons as members.Chairman Inquire into the report and submit to govt within 6 months from commencement of inquiry. Inquire and reveal the case

Labour court
 

 

The app govt may appoint LC any matter specifies in II Schedule Composition consist of 1 person should be or have been a judge of HC, or for 3 yrs been a district judge or an add district judge, have held any judicial office in india for 7 yrs, Matters in II schedule: under standing order, Application or interpretation of SO, discharge or dismissal of workers, workers wrongly dismissed, withdrawal of concession or privilege, illegality of strike or lockout, all matters other than III schedule

Tribunals
 

Whether in II schedule or III consist of 1 person should be or have been a judge of HC, or for 3 yrs been a district judge or an add district judge Matters; wages , including period, mode of payment, compensatory allowances, hrs of work, intervals, leave with wages, bonus , profit, pf gratuity, shift work, classification fo grades, rules of discipline, retrenchment, closure,

National tribunal


Central govt may refer the dispute to NT : if the matter is of national importance

The parties to an industrial dispute are required not to resort to work stoppage if dispute is pending before the Board of Concilation or adjudication authority.

Methods for settlement and prevention of Industrial dispute

Collective Bargaining: Steps  Presentation in collective manner(demands and grievances)  Discussions, bargaining and negotiations on mutual grounds  Signing of formal agreement or informal understanding  In even of failure,likely resort to strikes or lock outs

Bargaining with the help of third party is called Conciliation or mediation Voluntary Arbitration  When the parties feel that mutual negotiations will not succeed ,it may decide to submit the dispute to a neutral person or group of persons for arbitration.  Award given may or may not be binding on parties


Conciliation and Mediation The aim of conciliator is to break the deadlock ,explain the view point of one party to the other, convey messages and keep the negotiation going. Parties may or may not accept the sugestions.

 

Adjudication Under the condition when dispute is not settled and parties adhere to strikes and lockouts, Govt may decide to refer the dispute to adjudication and force the parties to abide by the award of the adjudicator Prohibit the party from work stoppages.

  

Compulsory method in which parties are forced to go by the power of the state. Decision imposed by third party Basis of decision is law and justice Referred to Court of Arbitration of Tribunal

VOLUNTARY REFERENCE OF DISPUTES TO ARBITRATION



Sec. 10 (A) (1): Before the Govt. refers a dispute to adjudication, the employer & workmen, can voluntarily refer it to an arbitrator(s) through a written agreement. If there are an even number of arbitrators are there an umpire shall be appointed whose decision shall prevail if the others are equally divided in their opinion. A copy of the arbitration agreement shall be sent to the appropriate Govt. and the conciliation officer and the same shall be published in the official gazette within one month.

When the Govt. is satisfied that the persons who have signed the arbitration agreement represent the majority of each party , the dispute is referred to arbitration and the Govt. issues a notification (The dispute shall be settled through arbitration .) and . When a dispute has been referred to arbitration and a notification has been issued, the Govt. may prohibit the continuance of a strike or lock out The arbitrator (s) shall investigate the dispute and submit the award to the appropriate Govt.

CASE : LIBERTY FOOTWEAR CO.



 

Karnal Leather Karamcjari Sanghathan Vs. Liberty Footwear Co. , AIR 1990 , SC Question : If an arbitration agreement is not published, will the arbitrators award still be valid ? Facts : Workers Union claimed that the management had illegally terminated more than 200 workmen . Workers went on strike .. Violence .. Police.. Deputy Commissioner.. Labour Commissioner

   

  

Both parties agreed to get the dispute settled through an arbitration committee consisting of 5 persons (2 from the management, two from the Union with the D.C as the President) The committee gave its award to reinstate 159 workers The management did not reinstate the workers . another dispute arose! The management challenged the validity of the arbitrartion award .. Writ petition in the High Court The ground .. the arbitrartion agreement was not published in the official gazzette as per requirement of subsec. 3 of Sec. 10 (A) . The High Court accepted the writ petition i.e requirement of publishing the agreement is mandatory. Workmen appealed to the Supreme Court SC : upheld the HC decision , i.e the arbitration agreement must be published without which the validity of arbitral award is questionable.

STRIKE & LOCK OUT



2(q) : Cessation of work by a body of persons employed in an industry acting in combination , or a concerted refusal , or a refusal under common understanding of any number of persons who are or have been so employed to continue to work or accept employment.

Relevant provisions : Sec. 10(3) ; 10A (4A); 22-28

STRIKE : A concerted and temporary cession of work by workers with a view to furthering or protecting their interests and rights an securing a fufillment of their specific demands LOCKOUT : temporary closing of place of employment or the suspension of work or refusal by an employer to continue to employ any number of persons employed by him or her

10 (3) : App. Govt. can prohibit the continuance of a strike in connection with a dispute referred to BOC, LC, T or NT 10 A (4A) : App. Govt. can prohibit the continuance of a strike in connection with a dispute referred to arbitration and a notification is issued u/s 10(3A)

Forms of strike
Authorized strikes Only when union has given consent


Unauthorized strike or Wild Cat strike Without the approval of the union Strike by a section of workmen on the spur of moment without any formal preparation,any formal notice to the employer or consent of relevant unions

General Strikes  Wide coverage.  Depending on strike confined to city,or industries Particular Strikes  Limited in scope , confined to single plant or or few plants and to a single trade or occupation in a particular town or city.

Work-to-rule strike: Employees declare that they will perform their tasks strictly in accordance with the rules prescribed . may result in slow down.
 

Ordinary strike Workers quit their places of work and prevent others, occasionally by violence but mostly by persuasion or picketing, from replacing them

Sympathetic Strike : Conducted out of sympathy for the cause of another group whether on strike or not. Gherao: Involves confinement of authorities in their offices by workers to exert pressure on management to accept their demands


Types based on Techniques



Slow down strike: workers do not stop working ,rather they slow down the pace of work Quickie strike : Workers remain in their place of work,but they stop work for a brief period for few minutes or hours. Sit-down strike: Workers remain in their place of work but they do not work. Duration is long as compared to quickie.

Public Utility Service

   

 

Any railway service or any transport service Any service in major port and dock Any postal, telegraph or telephone service Any industry which supplies power,light or water to public Sanitation Any industry specified in the First Schedule

GENERAL PROHIBITION OF STRIKES & LOCKOUTS



Sec. 23 : No person employed in any industrial establishment shall go strike in breach of contract and no employer shall declare lockout :
During the pendency of conciliation proceedings before a board and 7 days after the conclusion of such proceedings During the pendency of proceedings before a Labor Court , Tribunal or national Tribunal and two months after the conclusion of such proceedings. During the pendency of arbitration proceedings before an arbitrator and two months after the conclusion [Sec. 10A (3a)] During any period in which a settlement or award is in operation in respect of any matter covered by the settlement or award.

STRIKES & LOCK OUTS (CHAPTER V)

 

Sec. 22 : Prohibition of Strikes & Lock Outs (1)No person employed in a Public Utility Service shall go strike in breach of contractWithout giving to the employer , notice of strike, within 6 weeks before striking or Within 14 days of giving the notice or Before the expiry of the date of strike specified in such notice During the pendency of any conciliation proceedings before a CO & 7 days after the conclusion of such proceedings.

STRIKES & LOCK OUTS (CHAPTER V)



Sec, 22 (2) :No employer carrying on a Public Utility Service shall lock out any of his workmen Without giving them, within 6 weeks before locking out Within 14 days of giving the notice Before the expiry of the date of Lock out specified in such notice During the pendency of any conciliation proceedings before a CO & 7 days after the conclusion of such proceedings.

Employers obligation : to inform the appropriate govt. about any notice of strike received from the workmen or any notice of lock out given to them within 5 days of receiving or giving such notices.

EXCEPTIONS


Notice of lockout is not necessary when strike is already in existence , but intimation of the same is to be sent to the authority specified by appropriate govt. Notice of strike is not necessary when lockout is already in existence , but intimation of the same is to be sent to the authority specified by appropriate govt.

ILLEGAL STRIKES & LOCKOUTS



 

A strike or lock out shall be deemed to be illegal if : It is commenced in contravention of section 22 or 23 In case of arbitration strike prohibit A lock out in consequence of an illegal strike is NOT illegal and a strike in consequence of an illegal lockout is NOT illegal.

PROHIBITION OF FINANCIAL AID



Sec. 25 : No person shall knowingly spend any money to support an illegal strike or lockout.

IS STRIKE A FUNDAMENTAL RIGHT?



 

All India bank Employees Union Vs. National Industrial Tribunal , AIR 1962, SC Ar. 19 (1)(c ) : Right to form a Union Union : It implies that the right to strike should be guaranteed , which is necessary to achieve the objectives of the Union (e.g Collective bargaining) SC : rejected the contention , right to strike is controlled or restricted by appropriate legislation.

LAY OFF


2 (kkk) : Failure , refusal or inability of an employer on account of :

Shortage of coal, power or raw material accummulation of stock Breakdown of machinery Natural calamity Or any other connected reason to give employment to a workman whose name is borne on the muster rolls of industrial establishment and who has not been retrenched.

Lay off results in temporary unemployment Application of provisions of Act Donot apply in establishments
A). in which less than fifty workmen on an average per working day have been employed in preceding calender month B). which is of seasonal character or in which work is performed only intermittently.

 


CONTINUOUS SERVICE
 

Uninterrupted Service Including service interrupted on account of :

sickness /accident authorized leave Legal strike Lock Out Any cessation of work without the fault of workmen

 

Continuous service of One year : In 12 calendar months, actually worked for at least
190 days establishment below ground 240 days any other case

The number of days on which workman has actually worked shall include:
Days laid off Leave with full wages Absent due to temporary disablement caused by accident arising out of & in the course of employment Maternity leave of max. 12 weeks

Right of workmen laid off for compensation



A workman other than badli or casual workman whose name is on the muster rolls and who has completed one year of continuous service ,if laid off ,is entitled to 50% of the total basis wages and dearness allowance. If workman is laid off for more than 45 days ,no compensation is payable in respect of any period of lay off after expiry of first 45 days. It is lawful for the employer to retrench the workmen at any time after expiry of 45 days and compensated accordingly.

WORKMEN NOT ENTITLED TO LAY-OFF COMPENSATION



If workman refuses to accept alternative employment in the same est. or another est of the same employer situated within a radius of 5 miles, if this employment does not call for any special skill or experience & the wages are also the same . If he does not present himself for work If lay off is due to a strike or slow down

RETRENCHMENT


2(ooo) : Termination by the employer of the service of a workman for any reason whatsoever, otherwise than as a punishment inflicted by way of disciplinary action, but does not include termination due to :
Voluntary retirement Superannuation Non-renewal of service contract Continued ill health

RETRENCHMENT CHAPTER VA


Conditions precedent to Retrenchment 25 F : No workman employed in an industry who has cont. service of at least one year, can be retrenched unless
served 1 month notice indicating reasons for retrenchment or wages in lieu of it has been paid compensation @ 15 days average pay for every completed year of continuous service or any part thereof in excess of 6 months. Notice to the app. Govt.

THE PROCEDURE


Employer : application for permission to the app. Govt. and its copy to the workmen

Appropriate Govt. makes an enquiry gives the employer & the workmen an opportunity to present their cases and decides whether the retrenchment is genuinely required .

App. Govt. passes an order granting or refusing the permission for retrenchment . Copy of the order is communicated to both employer and workmen

PRINCIPLE FOR RETRENCHMENT 25 G

 

Last Come , first go Unless the employer records the reasons for retrenching any other workman.

CLOSURE :
  

Permanent closing of a place of employment or part thereof Provisions applicable under chapter VA (51 to 99 workmen) Sec. 25 FF A : Sixty days notice Notice of the intention to close down an undertaking is to be given to the app. Govt. 60 days before the intended date of closure. This condition is not applicable to undertakings :  employing less than 50 workmen on an average / day during the past 12 mths or  engaged in construction of roads, bridges, canals or other construction work. Govt. can grant exemption from the requirement of notice period , under exceptional circumstances (e.g a major accident in the undertaking requiring it to close down)

SPECIAL PROVISIONS RELATED TO LAY OFF CHAPTER VB

 

Prohibition of lay off : Sec. 25 M Employer cannot lay off workmen except with the prior permission of the appropriate govt. except under the following circumstances : Shortage of power Natural calamity Mine : fire, flood, emission of inflammable gas or explosion

THE PROCEDURE


Employer : application for permission to the app. Govt. and its copy to the workmen

Appropriate Govt. makes an enquiry gives the employer & the workmen an opportunity to present their cases and decides whether the lay off is genuinely required .

App. Govt. passes an order granting or refusing the permission for lay off . Copy of the order is communicated to both employer and workmen

SPECIAL CIRCUMSTANCES


If the employer has already laid off workmen due to the permissible reasons [25 (M) (1)] , one still has to obtain permission in the prescribed manner in order to continue the lay off . If an application for permission has been made but app. Govt. does not reply within 60 days, the permission is deemed to have been granted.

VALIDITY OF GOVTS ORDER



An Govts order (granting or refusing the permission shall be a binding on both the parties and shall be in force for a period of one year.

CLOSURE :
  

Permanent closing of a place of employment or part thereof Provisions applicable under chapter VA (51 to 99 workmen) Sec. 25 FF A : Sixty days notice Notice of the intention to close down an undertaking is to be given to the app. Govt. 60 days before the intended date of closure. This condition is not applicable to undertakings :  employing less than 50 workmen on an average / day during the past 12 mths or  engaged in construction of roads, bridges, canals or other construction work. Govt. can grant exemption from the requirement of notice period , under exceptional circumstances (e.g a major accident in the undertaking requiring it to close down)

COMPENSATION ON CLOSURE OF AN UNDERTAKING ?

Every workman who has been in cont. service of not less than one year shall be paid compensation as per sec. 25 F as if he had been retrenched. Further , if an undertaking is closed down due to exceptional circumstances beyond the control of employer the total amount of compensation shall NOT exceed 3 months avg. pay.

The following are NOT exceptional circumstances in this regard :

Financial losses Accumulation of undisposed stock Expiry of the period of lease or license Mine : exhaustion of minerals in an area

THE PROCEDURE FOR CLOSURE:SEC. 25 O



Employer : application for permission to the app. Govt. and its copy to the workmen - 90 days before date of intended closure

Appropriate Govt. makes an enquiry gives the employer & the workmen an opportunity to present their cases and decides whether the closure is genuinely required .

App. Govt. passes an order granting or refusing the permission for closure . Copy of the order is communicated to both employer and workmen

Voluntary Measures for prevention and settlement of Industrial Disputes

Settlement without state intervention  Collective Bargaining  Voluntary Arbitration

Statutory Measures for prevention and settlement of Industrial Disputes

With Intervention of Govt.


 

 

Compulsory establishment of Bipartite Committees : e.g. Works Committee Establishment of Compulsory Collective Bargaining Conciliation and Mediation : Voluntary or compulsory Compulsory Investigation : e.g. Court of Inquiry Compulsory Arbitration or Adjudication

PRACTICAL PROBLEMS


An employer who intends to close down an undertaking serves a notice 30 days before the date on which the intended closure is to becomes effectives on the appropriate government. Is the notice valid??

HINT
 

No As per Section 25FFA of the Industrial Disputes Act,1947 60 days.