DISPUTE RESOLUTION MECHANISM UNDER INDUSTRIAL DISPUTE ACT, 1947

A final draft submitted in fulfilment of the course of Labour Laws – 1 for attaining the degree
of B.A. LL.B.

Final submission made by -

Diksha Singh

B.A. LL.B.

Roll No. 1724

Final submission made to -

Ms. Pallavi Shankar

Faculty, Labour Laws – 1

March, 2019

Chanakya National Law University,

Nyaya Nagar, Patna – 800001

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 DECLARATION BY THE CANDIDATE

I hereby declare that the work reported in the B.A., LL.B (Hons.) Project Report entitled
“Dispute Resolution Mechanism under Industrial Dispute Act, 1947 ” submitted at Chanakya
National Law University is an authentic record of my work carried out under the supervision
of Ms. Pallavi Shankar. I have not submitted this work elsewhere for any other degree or
diploma. I am fully responsible for the contents of my Project Report.

SIGNATURE OF CANDIDATE

NAME OF CANDIDATE: DIKSHA SINGH

CHANAKYA NATIONAL LAW UNIVERSITY, PATNA.

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 ACKNOWLEDGEMENT

I would like to thank my faculty Ms. Pallavi Shanakr whose guidance helped me a lot with
structuring my project.

I owe the present accomplishment of my project to my friends, who helped me immensely with
materials throughout the project and without whom I couldn’t have completed it in the present
way.

I would also like to extend my gratitude to my parents and all those unseen hands that helped
me out at every stage of my project.

THANK YOU,

NAME: Diksha Singh

COURSE: B.A., LL.B. (Hons.)

ROLL NO: 1724

SEMESTER – Fourth

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 CONTENT

ACKNOWLEDGEMENT ......................................................................................................... 3

CONTENT ................................................................................................................................. 4

1. Introduction ........................................................................................................................ 6

2. Works Committee ............................................................................................................... 8

3. Grievance Redressal Machinery ......................................................................................... 8

4. Duties of Conciliation Officers........................................................................................... 9

5. Board of Conciliation ......................................................................................................... 9

6. References of Disputes to Board of Conciliation ............................................................. 10

7. Duties and Powers of the Board ....................................................................................... 10

8. Court of Inquiry ................................................................................................................ 10

9. Collective Bargaining ....................................................................................................... 11

10. Voluntary Arbitration.................................................................................................... 11

11. Compulsory Establishment of Bipartite Committees ................................................... 12

12. Establishment of Compulsory Collective Bargaining................................................... 13

13. Conciliation and Mediation........................................................................................... 13

A. Voluntary conciliation and mediation ........................................................................... 13

B. Compulsory conciliation and mediation ....................................................................... 14

14. Compulsory Investigation ............................................................................................. 14

15. Compulsory Arbitration or Adjudication ...................................................................... 15

16. Adjudication in India .................................................................................................... 15

17. Adjudication vs. Collective Bargaining ........................................................................ 16

Adjudication ......................................................................................................................... 16

Collective Bargaining ........................................................................................................... 16

18. Machinery for the Prevention and Settlement of Industrial Disputes in India ............. 17

Statutory Machinery ............................................................................................................. 17

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 Non-statutory Bodies............................................................................................................ 18

19. Indian Labour Conference and Standing Labour Committee ....................................... 19

A. Code of Discipline in Industry ...................................................................................... 19

B. Working ........................................................................................................................ 19

20. Industrial Committees ................................................................................................... 20

21. Wage Boards ................................................................................................................. 21

22. Board of Arbitration for Central Government Employees ........................................... 21

Other Tripartite Bodies at the Central Level ........................................................................ 21

23. State Labour Advisory Boards ...................................................................................... 22

24. Other Tripartite Bodies at the State Level .................................................................... 22

25. Conclusion and Suggestion ........................................................................................... 22

BIBLIOGRAPHY

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 1. INTRODUCTION

Settlement Without State Intervention

There are two ways in which the basic parties to an industrial dispute-the employer and the
employees-can settle their disputes.

 Collective bargaining
 Voluntary arbitration

Settlement Under the Influence of the State

 Compulsory establishment of bipartite committees;

 Establishment of compulsory collective bargaining;
 Conciliation and mediation (voluntary and compulsory);
 Compulsory investigation; and
 Compulsory arbitration or adjudication.

Arbitration is a procedure in which a neutral third party studies the bargaining situation,
listens to both the parties and gathers information, an then makes recommendations that are
binding on the parties. Arbitration is effective as a means of resolving disputes because it is
they have established the parties themselves and the decision is acceptable to them, and is
relatively expeditious when compared to courts or tribunals. Delays are cut down and
settlements are speed up.

Conciliation is a process by which representatives of workers and employers are brought

together before a third party with a view to persuade them to arrive at an agreement by
mutual discussion between them. The third party may be one individual or a group of people.
The alternative name for third party is mediators. It may be stated that the conciliator has no
power to force a settlement, but can work with the parties separately to determine their
respective positions, explains a position more fully to the opposition, points out bases for
agreement that may not have been apparent previously, helps in the search for solutions, and
generally facilitates the reach of an agreement. In effect, mediators act as communications
catalyst, and their effectiveness depends on their impartiality and on their capacity to win the
trust of both parties.

Adjudication means a mandatory settlement of an industrial dispute by a labour court or a

tribunal. Generally, the government refers a dispute or adjudication depending on the failure

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of conciliation proceedings. Section 10 of the Industrial Disputes Act, 1947, provides for
reference of a dispute to labour court or tribunal. The Act also lays down rules regarding the
composition and powers of labour courts and tribunals. Disputes are generally referred to
adjudication on the recommendation of the conciliation officer who had dealt with them
earlier. However, the government has discretionary powers to accept or reject
recommendations of the conciliation officer. It is obvious that once a dispute is referred for
adjudication, the verdict of a labour court or tribunal is binding on both the parties. The
system of adjudication is the most significant instrument of resolving disputes. But, it has
been criticized because of the delay involved in resolving conflicts. Continued dependence on
adjudication deprives the trade unions of their right to recognize and consolidate their
strength.

AIMS AND OBJECTIVE

 To find out about the mechanism of dispute resolution under the Act.
 To find out about the courts and boards adjudicating the disputes.

HYPOTHESIS

The researcher presumes that the dispute resolution is effective under this Act.

RESEARCH METHODOLOGY

The researcher proposes to take a doctrinal research.

REVIEW OF LITERATURE

The researcher has examined the primary and secondary sources of data in the project. The
primary source is Industrial Dispute Act, 1947. The secondary sources are books, journals,
newspaper etc.

LIMITATIONS FOR RESEARCH

 Because of posterity of time, money and resources.

SCOPE OF STUDY

 It will be useful for the society and government.

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 2. WORKS COMMITTEE

In the case of any industrial establishment in which 100 or more workmen are employed or
have been employed on any day in the preceding 12 months, the appropriate Government
may by general or special order require the employer to constitute in the prescribed manner a
Works Committee consisting of representatives of employer and workmen engaged in the
establishment. It shall be the duty of the Works Committee to promote measures for securing
and preserving amity and good relations between the employer and workmen and, to that end
to comment upon matters of their common interest or concern and endeavour to compose any
material difference of opinion in respect of such matters. The Committees attempt to remove
causes of friction between employers and workers in the day-to-day working of the factory.
They provide a forum for negotiations between employers and workers at the factory level. In
Kemp & Company Ltd., Vs. their Workmen that The Works Committees are normally
concerned with problems arising in the day to day working of the concern and the functions
of the Works Committees are to ascertain the grievances of the employees and when occasion
arises to arrive at some agreement also.1

3. GRIEVANCE REDRESSAL MACHINERY

The Industrial Disputes (Amendment Act), 2010 had substituted a new chapter for chapter II-
B.

1. Every industrial establishment employing 20 or more workmen shall have one or

more GRC for the resolution of disputes arising out of individual grievances.
2. The GRC shall consist of equal number of members from the employer and the
workmen.
3. The chairperson of the GRC shall be selected from the employer and from among the
workmen alternatively on rotation basis every year.
4. The total number of members of the GRC shall not exceed more than six. Provided
that there shall be, as far as practicable, one woman member if the GRC has two
members and in case the numbers of members are more than two, the number of
women members may be increased proportionately.2

1
S.N. Mishra, Labour and Industrial Laws
2
Labour And Industrial Laws Bare Act

8
 5. Notwithstanding anything contained in this section, the setting up of GRC shall not
affect the right of the workman to arise industrial dispute on the same matter under
the provisions of this Act.
6. The GRC may complete its proceedings within 30 days on receipt of a written
application by or on behalf of the aggrieved party.
7. The workman who is aggrieved of the decision of the GRC may prefer an appeal to
the employer against the decision; and the employer shall, within one month from the
date of receipt of such appeal, dispose of the same and send a copy of his decision to
the workman concerned.
8. Nothing contained in this section shall apply to the workmen for whom there is an
established GRC in the establishment concerned.

4. DUTIES OF CONCILIATION OFFICERS

The Conciliation Officer is required to submit his report within 14 days of the
commencement of the conciliation proceedings, but the time for the submission of the report
may be extended further on the written request of the parties to the dispute. Where a
settlement is not reached, the appropriate Government, after considering the report of the
conciliation officer, may refer the dispute to a Board of Conciliation or Labour Court or
Industrial Tribunal or National Tribunal as the case may be. A Conciliation Officer may take
appropriate steps for inducing the parties to a fair and amicable settlement of the dispute.3 If a
settlement is arrived at during conciliation proceedings, he must send a copy of the report and
the memorandum of the settlement to the Government. In case no settlement is arrived at, he
is required to send to Government, full report of the steps taken by him to resolve the dispute,
and the reasons on account of which a settlement could not be arrived at.

5. BOARD OF CONCILIATION

Section 5 of the Industrial Disputes Act, 1947 provides for creation of Board of Conciliation
which is simply an extension of conciliation officers work. Unlike a Conciliation Officer, the
board may not be a permanent body and can be set up as the occasion arises. It comprises of
two or four members representing parties to the dispute in equal numbers and a chairman

3
Supra 1

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who has to be an independent person . The Board has the status of a Civil Court and can issue
summons and administer oaths.4

6. REFERENCES OF DISPUTES TO BOARD OF CONCILIATION

Where the appropriate Government is of the opinion that any industrial dispute exist or is
apprehended, it may at any time, by order in writing, refer the dispute to a Board of
Conciliation for promoting settlement. In case the parties to an industrial dispute make an
application in the prescribed manner whether jointly or separately, for a reference of the
dispute to a Board of Conciliation, the appropriate Government is required.5 Where the
dispute is referred to the Board, the appropriate Government may prohibit the continuance of
any strike or lock-out in connection with such dispute which may be in existence on the date
of reference.

7. DUTIES AND POWERS OF THE BOARD

When a dispute has been referred to the Board of Conciliation, it may take suitable steps to
induce the parties to come to a fair and amicable settlement. If settlement is arrived at, the
board is required to send a report and a memorandum of the settlement signed by the parties
to the disputes to the appropriate Government.6 If no such settlement is arrived at, the Board
is required to the appropriate Government a full report setting forth the proceedings and steps
taken by the board for ascertaining the facts and circumstances relating to the disputes and
bringing about a settlement and the reasons on account of which a settlement could not be
arrived at, and also its recommendations for the determination of the dispute. The board is
required to submit report within two months of the date of the reference of the dispute or
within shorter period as determined by the appropriate Government.

8. COURT OF INQUIRY

The appropriate Government is empowered to constitute a Court of inquiry as occasion

arises, for the purpose of inquiry in to any matter appearing to connect with or relevant to an
industrial dispute . Generally Court of Inquiry is constituted when no settlement is arrived at
as a result of efforts made by the Conciliation Board. The idea of Court Inquiry is new in this
Act and has been borrowed from the British Industrial Court Act, 1919. The Government can

4
S.N. Mishra, Labour and Industrial Laws
5
IBID.
6
IBID.

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refer any single or more matter connected or relevant to the dispute or can refer whole to the
Court which can be set up irrespective of consent of parties to dispute.7

9. COLLECTIVE BARGAINING

Collective bargaining implies the following main steps:

a. Presentation in a collective manner, to the employer, their demands and grievances by

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

When collective negotiations reach a deadlock, the parties themselves may call in third
persons to help them settle their disputes. The role of this third person is to break the
deadlock, to interpret the view point of one to the other, and thereby to help the parties arrive
at an agreement. The solution, if any comes out of the parties themselves; the presence of the
outsider neither supersedes the process of collective bargaining nor the freedom of the parties
to agree or to disagree. Bargaining with the help of the third party is generally called
conciliation or mediation. Strikes and lock-outs are an integral part of the process of
collective bargaining. If the threat of a strike were not there, mutual negotiations would rarely
succeed. The solutions arrived at in the process of collective bargaining are ultimately
evolved by the parties themselves and are of lasting value.

10.VOLUNTARY ARBITRATION

In many cases an argument simply cannot be settled as both parties disagree on their own
grounds. They therefore enter into Voluntary Arbitration, which involves appointing an
independent party to assess the situation and then make a decision based on the facts
presented to them. It is commonly viewed as less expensive and faster than resolving a
dispute in court. An arbitrator may be a single person or a panel.

7
Supra 4

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At the time of submitting a dispute to arbitration, the parties may agree in advance, to abide
by the award of the arbitrator and thus industrial peace is maintained and the dispute is
resolved. Sometimes, however, the parties may agree to submit the dispute to an arbitrator
but at the same time, reserve their right to accept or reject the award when it comes.

Factors hampering the adoption of Voluntary arbitration in India:

i. Easy availability of adjudication in case of failure of negotiations;

ii. Dearth of suitable arbitrators who command the confidence of both parties;
iii. Absence of recognised union which could bind the workers to common
agreements;
iv. Legal obstacles;
v. The fact that in law no appeal was competent against an arbitrator’s award;
vi. Absence of a simplified procedure to be followed in voluntary arbitration.

11.COMPULSORY ESTABLISHMENT OF BIPARTITE COMMITTEES

The state has passed enactments requiring the establishment of bipartite committees
consisting of the representatives of workers and their employer at the plant or industrial level.
These bipartite committees are given the power to settle differences between the workers and
the employers as soon as they appear, and thereby they prevent them from growing into big
conflagrations. In India the Industrial Disputes Act, 1947 provides for the compulsory
formation of works committees in industrial establishments employing 100 or more
employees. A works committee is entrusted with the responsibility “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 endeavour
to compose any material difference of opinion in respect of such matters. The relevant rules
framed by the Central Govt. under this Act lay down the details concerning the size of Works
Committees, the selection of worker’s representatives, terms of office, facilities of meeting
and so on. State Govt. has formed similar rules requiring the formation of works committees
in different industrial establishments. Some of these Works Committees are functioning
successfully while some have proved to be a failure.

The main factors accounting for their failure have been:

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 i. The reluctance and hostility of the employer or the trade union concerned, ii.
Illiteracy and ignorance of the workers, and iii. Absence of leadership from the
rank-and-file.
ii. The basic idea behind the establishment of such bipartite committees are: a.
Giving encouragement to the parties concerned to settle and compose their
differences by themselves, to avoid the intervention of third party, and b.
Facilitating the composition of the differences at their embryonic stages without
causing work –stoppages.

12.ESTABLISHMENT OF COMPULSORY COLLECTIVE BARGAINING

State may encourage, and if necessary, force workers and employers to enter into formal
collective bargaining through their representatives. In India, refusal to bargain collectively in
good faith by the employer and the recognised union, has been included in the list of unfair
labour practices by an amendment of the Industrial Disputes Act in 1982. However, in
absence of making recognition of representative union by the employer statutorily
compulsory, this provision of the Industrial Disputes Act, 1947 does not have much
significance.

13.CONCILIATION AND MEDIATION

a) Voluntary conciliation and mediation

b) Compulsory conciliation and mediation

The only difference between conciliator and mediator is that conciliator is more active and
more intervening than the mediator who is said to perform a “go messenger” service.

A. VOLUNTARY CONCILIATION AND MEDIATION

The state sets up a conciliation and mediation machinery, consisting of personnel trained in
the art of conciliating disputes. The services of this machinery are always available to the
disputants. The aim of the conciliator is to break the deadlock, if any, explain the stand and
the view-points of one party to the other, convey messages and generally keep the negotiation
going. Suggestions may come from the conciliator or the mediator, but the parties are free to
accept or reject them.

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 B. COMPULSORY CONCILIATION AND MEDIATION
In many countries state goes a step further after creation of conciliation service, it imposes an
obligation on the parties to submit their dispute to the conciliation service and makes it a duty
of the of the latter to seek to conciliate the dispute. Meanwhile, the state requires the parties
to refrain from causing any work-stoppage for the purpose of resolving the dispute, so long as
the conciliation proceeding is going on. Generally there is a time limit for the conciliators and
mediators to conclude their efforts at conciliation.

There are three main considerations for prohibiting the parties from causing work stoppage
and imposing time limit. They are:

1. Conciliation provides a cooling off period during which emotional tensions may subside
and a settlement can be arrived at.

2. Freedom of the parties to settle their disputes even by causing work stoppage, should not
be taken away from them for long period.

3. If conciliation does not achieve an early break-through, it is not very likely to succeed
later.

If, at the end of the conciliation proceeding, the parties fail to settle their dispute, they are free
to go on a strike or declare a lock-out, but the state may further persuade the parties and use
other methods for bringing about a peaceful settlement of the dispute.

14.COMPULSORY INVESTIGATION

Many governments have assumed power under laws relating to industrial relations, to set up a
machinery to investigate into any dispute. A Court of Inquiry is appointed which finds out the
relevant facts and issues involved and give them wide publicity so that the pressure of public
opinion may force the recalcitrant party to give up its obstinate attitude. Further, it provides a
cooling off period to the parties concerned so that they could reconsider their respective
stands, realise the implications of their steps and, if possible, settle their disputes peacefully.

In India, the Court of Inquiry has the same powers as are vested in a civil court under the
Code of Civil Procedure in respect of:

a. Enforcing the attendance of any person and examining him on oath;

b. Compelling the production of documents and material objects;

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c. Issuing commissions for the examination of witnesses;

d. In respect of matters prescribed under relevant rules.

15.COMPULSORY ARBITRATION OR ADJUDICATION

The government under some conditions may decide to refer the dispute to adjudication and
force the parties to abide by the award of the adjudicator and at the same time, prohibit the
parties from causing work-stoppages.

There are two principal forms of compulsory arbitration based upon the nature of reference
and nature of the award:

a) Compulsory reference but voluntary acceptance of the award

b) Compulsory reference and compulsory acceptance of the award.

The parties are required to refrain from going on a strike or declaring a lock-out during the
pendency of the adjudication proceedings and during the period when the award is in
operation. An Arbitration Court may consist of one person only or a few persons with one
member acting as the chairman. Usually the adjudicators are drawn from the judiciary. The
qualifications and tenure of office, powers and functions of the adjudicators are, in general,
prescribed under the law itself. Sometimes, representatives of employers and employees are
also associated with the deliberations of the Court.

16.ADJUDICATION IN INDIA

The Industrial Disputes Act,1947, provides for three types of adjudication authorities for the
adjudication of industrial disputes:

a. Labour Court
b. Tribunal
c. National Tribunal

Labour Courts and the Tribunal can be established both by the central and state governments,
but the National Tribunal is set up only by the central government.

 National Tribunal is set up to adjudicate such disputes which involve any

question 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 them.

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  The Labour Court adjudicates disputes relating to the propriety or legality of
an order passed by the employer under the standing orders, discharge or
dismissal of workmen, legality or otherwise of a strike or lock-out.
 The Tribunal and National Tribunal generally deal with such subject matters
as wages, bonus, profit-sharing, rationalisation, allowances, hours of work,
provident fund, gratuity etc.
 Strikes and lock-outs are prohibited during the pendency of the proceedings
before any of the adjudication authorities, and two months after the conclusion
of such proceedings and during any period in which the award is in operation,
in respect of any matter covered by the award.

17.ADJUDICATION VS. COLLECTIVE BARGAINING

ADJUDICATION
➢Introduces an element of law and justice

➢Standards of adjudication of industrial disputes may be imperfect, yet they are far better
than the principle of ‘might is right’ that underlies CB

COLLECTIVE BARGAINING
➢ It gives democratic freedom to parties to resolve their disputes by mutual discussions and
negotiations.

➢ Use of coercive economic power of one party against the other.

➢Compulsory arbitration is based upon the coercive power of the state.

➢The authority of the state is used to prevent strong groups and organizations, whether they
belong to the employers or to the workers, from holding the community to ransom.

➢Even if parties fight for the time being , they will ultimately succeed in working out a
lasting solution of their problems as they have to live together on a permanent basis.

➢In CB it is not just cause but the relative strength of the parties , that ultimately wins.

➢Adjudication in India does not suppress CB, rather supplements it.

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➢There are heavy expenses and delays in adjudication but it can be improved and is
gradually improving.

➢Helps workers in poorly organised sector in securing significant gains.

➢A strong union may take up a weak case and still win and vice versa.

➢The institution of collective bargaining is rooted in the coercive power of the parties
themselves.

➢There are no standards which can be used by adjudicators, to resolve divergent interests
and to judge the fairness or otherwise of conflicting claims.

➢The adoption of collective bargaining comes with a freedom to resort to strikes and lock-
outs which can hamper industrial growth.

18.MACHINERY FOR THE PREVENTION AND SETTLEMENT OF INDUSTRIAL

DISPUTES IN INDIA

Prevention and settlement of Industrial Disputes requires:

i. Leaving the parties free to settle their differences in a way they like best, but
without causing work-stoppages, that is, CB without the right to strike and declare
a lock-out;
ii. Assisting the parties by the provision of conciliation services, to arrive at a
peaceful settlement.
iii. In case the parties still fail to settle their disputes in a peaceful manner, imposing
on them adjudication, if state deems it fit;
iv. Imposing certain restrictions on the right to strike and declare a lock-out, in case
of some industries of public importance and under certain conditions in all
industries;
v. Establishing a number of non-statutory bodies for the purpose of working out the
guiding principles of the relations between the employers and the employees, and
recommending actions so as to prevent industrial disputes from arising.

STATUTORY MACHINERY
Statutory Machinery consists of:

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 a. Works Committee,
b. Permanent conciliation services for particular geographical areas or industries both at
the central and state levels,
c. Ad hoc Board of Conciliation at the central and state levels,
d. Ad hoc Courts of Inquiry at the central and state level,
e. Adjudication authorities consisting of Tribunals and Labour Courts at the central and
state levels,
f. National Tribunals at the central level.

Both the central and state Govt. are empowered to require the employers of industrial
undertakings employing 100 or more workmen, to constitute a Work Committee consisting of
representatives of the employers and the workmen. In pursuance of the provisions of the
Industrial Disputes Act, 1947, permanent conciliation services have been established by both
the central and state governments for particular geographical areas or industries. The
Conciliation Officers are required to hold conciliation proceedings in the case of public utility
services where a notice of strike or lockout has been given, but in other cases, it is up to them
to do so. A settlement arrived at in the course of conciliation proceedings is binding on the
parties. The govt. is empowered to refer at any time, an industrial dispute pending before a
Conciliation Officer to an adjudication authority for decision. Courts of Inquiry may be set up
by the central or state governments when considered necessary for the purpose of inquiry into
any matter appearing to be connected with or relevant to an industrial dispute. The
adjudication authorities set up under the Industrial Disputes Act, 1947 consist of Labour
Courts and Tribunals at both the central and state levels and National Tribunals at the central
level. The parties to an industrial dispute are not to resort to work-stoppage if the dispute is
pending before a Board of Conciliation or any adjudication authority. Additional restrictions
on the right to strike and lock-out have been imposed, in case of public utility and essential
services.

NON-STATUTORY BODIES
Non statutory bodies exist at different levels such as the Indian Labour Conference and
Standing Labour Committee at the national level, Wage Boards and Industrial Committees at
the industry level, and State Labour Advisory Boards at the state level. The primary purpose
of these organisations is to work out the guiding principles of the relations between
employers and employees in order to prevent industrial disputes from arising.

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 19.INDIAN LABOUR CONFERENCE AND STANDING LABOUR COMMITTEE

The ILC and SLC are tripartite in character consisting of representatives of the central and
state governments, employers and workers. Both of them were set up in 1942, with initial
membership of 44 in the ILC and 20 in the SLC. Both bodies are expected to ensure equal
representation of the employers and workers, and the representatives of the government being
equal to those of the employers and workers taken together just like International Labour
Conference and the Governing Body of ILO. Decisions in these bodies are arrived at on the
basis of a consensus arising out of the discussions rather than on formal voting, although a
provision exist in the rules of both the ILC and the SLC, for taking decisions by a two-third
majority. The main objectives underlying their establishment were: promoting uniformity in
labour legislation; laying down of a procedure for the settlement of industrial disputes; and
discussing all matters of national importance as between employers and employees. The
scope of the deliberations of both bodies is confined mainly to labour matters in the country.
The deliberations of these bodies have helped reaching a consensus regarding minimum wage
fixation, introduction of health insurance and provident fund schemes, enactment of new
labour laws and modification of the existing ones. The procedure of settling industrial
disputes as envisaged in the Industrial Disputes Act, 1947 is a direct outcome of the
deliberations of these bodies. The Code of Discipline and the Code of Conduct evolved at the
ILC have also played an important role in influencing the pattern of industrial relations.

A. CODE OF DISCIPLINE IN INDUSTRY

• The Code of Discipline, as drafted by a tripartite sub-committee appointed by the Indian
Labour Conference in 1957 and modified by the Standing Labour Committee was
unanimously adopted by the ILC at its 16th session held in May 1958. the Code came into
force from June 1958. the text of the Code is mentioned in your book on page no. 203

B. WORKING
• The Code of Discipline has come to be accepted not only by the central organisations of
employers and workers represented by the Indian Labour Conference, but also by those who
are not he members of these organisations. The Code is also applicable to public sector
undertakings run as companies and corporations except those under the Ministry of Defence,
Railways , and Ports. The Code has also come to be applied to the Department of Defence
Production, LIC, SBI and RBI. The Code soon became an instrument to which credit/

19
discredit was given for industrial peace/ conflict and was perhaps conveniently used by
employers and workers to point out the shortcoming of other side.

Some of the factors accounting for the ineffectiveness of the Code have included:

i. absence of a genuine desire for, and limited support to, self-imposed voluntary
restraints on the part of employers’ and workers’ organisations
ii. the worsening economic situation which eroded the real wage of workers
iii. the inability of some employers to implement their obligations
iv. the disarray among labour representatives due to rivalries
v. Conflict between the Code and the law, and above all
vi. The state of discipline in the body politic.

Some of the points of Code of Discipline should be embodied in law as suggested by the first
National Commission on Labour. These include:

i. Recognition of unions as bargaining agents,

ii. Setting up of an grievance machinery in an undertaking,
iii. Prohibition of strike/lock-outs without notice,
iv. Penalties for unfair labour practices and
v. Provision for voluntary arbitration.

20. INDUSTRIAL COMMITTEES

The establishment of Industrial Committees for specific industries was the outcome of the
1944 session of the Indian Labour Conference. There are no rigid constitution in respect of
these committees, but the policy of their remaining tripartite in character and equal
representation of employers and workers is accepted. Within the framework of this broad
policy, the actual composition is decided afresh each time a meeting is convened. The first
Industrial Committee was set up in 1947 for plantations. Later, such committees came to be
set up for many other industries like, coal mining, cotton textiles, cement, tanneries and
leather goods manufactories, mines other than coal, jute, building and construction, chemical
industries, iron and steel, road transport, engineering industries, metal trades, electricity, gas
and power, and banking. Meeting of Industrial Committees are , however, not held regularly;
these are convened as and when required.

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 21. WAGE BOARDS

Second Five Year Plan had observed:

 Statistics of industrial disputes show that wages and allied matters are the major
source of friction between employer and workers.
 An authority like a tripartite wage board, consisting of equal representatives of
employers and workers and an independent chairman will probably ensure more
acceptable decisions.
 Such wage boards should be instituted for individual industries in different areas.

• The Third Five Year Plan also encouraged Wage Board. The first non-statutory Wage
Board was set up for the cotton textile industry in 1957. subsequently, Wage Boards were set
up for other industries too. A Wage Board generally consists of an impartial Chairman, two
other independent members, and two or three representatives of employers and workers each.
The Boards were purely recommendatory bodies and dissolved after they had submitted their
recommendations. The most important function performed by a Wage Board had been to
determine the wage structure for the industry concerned and to specify the categories of
employees to be brought under the purview of the wage fixation. In some cases, they were
also asked to deal with such questions as gratuity, hours of work and bonus. Now, the Wage
Board system has fallen in disuse.

22.BOARD OF ARBITRATION FOR CENTRAL GOVERNMENT EMPLOYEES

In 1966, the Government of India introduced a scheme for the Joint Consultative Machinery
and Compulsory Arbitration for resolving differences between the government as an
employer and the general body of its employees. The scheme provides for compulsory
arbitration of pay and allowances, weekly hours of work and leave of a class or grade of
employees. The Board of Arbitration functions under the administrative control of the
Ministry of Labour. Its awards are binding on both sides and can be modified or rejected only
by the Parliament.

OTHER TRIPARTITE BODIES AT THE CENTRAL LEVEL

Notable tripartite bodies which have been functioning at the central level are:

 Central Implementation and Evaluation Committee

 Central Board of Workers’ Education

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  National Productivity Council

23.STATE LABOUR ADVISORY BOARDS

State Labour Advisory Boards on the pattern of the Indian Labour Conference have also been
set up in almost all the states in the country. These Boards provide a forum of the
representatives of government, employers and employees to discuss problems so as to
maintain and promote harmonious industrial relations and to increase production. They
advise the state governments on all matters relating to labour.

24.OTHER TRIPARTITE BODIES AT THE STATE LEVEL

Amongst the important tripartite committees functioning in the states are:

 Implementation and Evaluation Committees

 Committees for particular industries
 Labour Welfare Boards or Committees

Some of these are permanent, while others are constituted as and when required.

25. CONCLUSION AND SUGGESTION

This article is an informative guide to the practical aspects of industrial dispute settlement
in India. By providing the information regarding the legal framework of industrial
relations laws, this article should prove helpful to those firms which are contemplating the
establishment of businesses or factories in India. Salient features of the dispute settlement
processes in India. It can be said that formal grievance procedures arise from structural
and environmental determinants of increased dependency of organizational participants.
While voice and fairness perceptions help in minimizing and resolving grievances it
would appear from a social exchange perspective that fair and supportive employers
would benefit when circumstances become less favourable. Employee involvement
enables employees to respond to solve problems, act at work within their own authority
while providing them with a high degree of self-esteem, empowerment, learning
environment, opportunities for personal growth and development, and a sense of
achievement. The article also demonstrates the salient weaknesses of Indian labour
legislation. First, the legislation allows for a multiplicity of unions thereby resulting in an
intense inter- union rivalry that generates a large number of industrial disputes. Second,
the dispute resolution machinery has increasingly failed to bring about timely agreements

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 and reduce the number of workdays lost due to work stoppages. Finally, there seems to be
a need to encourage parties to use collective bargaining, rather than rely on third party
dispute resolution. Whether the Indian government will introduce these changes is yet
unknown. It is only a matter of time before the current industrial relations laws receive
increased attention, since the labour relations climate also plays an important role in the
decision of foreign investors to establish industries in India.

A) To suggest rationalization of existing laws relating to labour in organized sector;

B) To suggest an umbrella legislation for ensuring a minimum level of protection to the
workers in the unorganized sector;
C) That it is necessary to provide a minimum level of protection to managerial and other
employers too, against unfair dismissals or removals. This has to be brought
adjudication by Labour Court or Labour Relation Commission or Arbitration; That all
these laws are judicially constituted into a single law called the Labour Management
Relations;
D) That the changes in the labour laws be accompanied by a well-defined social security
package that will benefit all workers, be they in the organized or unorganized sector
and should also cover those in administrative managerial and other categories which
have been excluded from the purview of the term worker .
E) Between arbitration and adjudication, the better of the two and would like, the system of
arbitration to become the accepted mode.

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 BIBLIOGRAPHY

PRIMARY SOURCES
Judgements

Bare Act

SECONDARY SOURCES
Books

S.N. Mishra, Labour And Industrial Laws

Websites

http://www.ijcrar.com/vol-2-8/M.J.Arputharaj%20and%20R.%20Gayatri.pdf

https://www.managementstudyhq.com/methods-of-settlement-of-disputes.html

http://www.yourarticlelibrary.com/industries/3-methods-for-settlement-of-industrial-
disputes/35436

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