Industrial Disputes

Name – B.S.J Perera

Index Number – 10022289
Degree Program – Bsc. In Business Management (Logistics) (Special)
Intake – 17.2
Introduction
An industrial dispute as a conflict or a difference in opinion between management and
workers regarding employment. It is a disagreement between an employer and employees
representative i.e. trade union. The issue of disagreement is usually pay or other working
conditions. During an industrial dispute, both the parties try to pressurize each other to agree
to their terms and conditions. The industrial unrest manifests itself as strikes, lock-outs,
picketing, gheraos and indiscipline on the part of workers. The causes of this unrest are either
specific organizational problems such as insufficient pay, lack of benefit and assistance
schemes, or the causes may be wider socio-economic problems such as poverty and
unemployment etc.
During an industrial dispute, both the parties try to pressurize each other to agree to their
terms and conditions. The industrial unrest manifests itself as strikes, lock-outs, picketing,
gheraos and indiscipline on the part of workers. An industrial dispute can never be said to be
a good choice. Consequences of industrial disputes are very far reaching, for they disturb the
economic, social and political life of a country. They are no less than a war. In a war,
casualties and sufferings are not confined to soldiers fighting on the front, so stoppage of
work due to strike or any other mode resulting in stoppage of work does not affect the
employees or the employers of the struck plant, but it affect the whole society or country.

Effects on Workers
When industrial dispute leads to strike, the wages may not be paid to workers for the strike
period. Thus, workers and their families have to face financial difficulties due to such
disputes. The rate of bonus also comes down due to disputes as disputes result in reducing the
rate of profitability. Due to continuous disputes, the employer may introduce lock-out and the
workers will have to suffer. Some workers, particularly temporary workers, may be dismissed
during the period of dispute. Prolonged industrial disputes lead to industrial sickness and
even closure of the enterprise. As a result, workers lose their jobs. Due to industrial disputes,
the employers lose sympathy for the workers. As a result, certain welfare and other facilities
may be denied to them.
Effects on Employers
The productivity and profit ability of the industrial unit go down due to industrial disputes.
The quality of production and thereby the market reputation is adversely affected due to
limited interest or non-cooperation from workers during the period of dispute. Industrial
disputes bring higher labour turnover. Moreover, efficient and sincere workers may not like
to continue with the firm where such disputes are common. Spoiled work increases due to
indifferent attitude of workers during the period of dispute. Industrial disputes affect labour-
management relations and this disturbs the smooth working of the industrial unit.
Different methods used for industrial dispute resolution
However, when a major issue or dispute comes up, then following methods can be adopted
for its settlement

1. Collective Bargaining
“Collective Bargaining” is that the method of negotiating terms of employment and
alternative conditions of labour between the representatives of management and unionized
labour. Once it's freed from intimidation and coercion and is conducted in honestness,
dialogue culminates in an exceedingly executable contract i.e., labour contract.
A labour contract may be a labour contract between the representatives of labour and
management for the sale of labour services at selected wage rates, hours of labour, and
alternative terms of employment and conditions of labour for an expressed amount of your
time.
The contract typically demands joint social control and administration of the agreement.
Accountable labour leaders and employers area unit progressively subsidence their variations
round the council table instead of through industrial warfare. The method of negotiation the
settlement of disputes is commonly expedited through outside help within the type of
conciliation, mediation, or arbitration.
Requirements for no-hit Negotiations
The representatives or spokesmen of management and labour should have ample authority to
bind all sides within the negotiation. The representatives should have intensive data of the
company’s scale of measurement and also the wage scales of the trade and also space.
They should be versed in all told points in question and recognize past court choices
regarding similar cases. They ought to study all the projected clauses to the contract and
attain tentative agreements. The negotiators sign AN agreement solely in any case
outstanding problems' area unit settled.
Contract provisions in labour agreements usually stipulate details regarding union
membership, the length of the agreement, the procedure for termination or change, wages and
hours, overtime, shift differentials, insurance and alternative edges, seniority, grievance
procedure, and conditions for rent, promotion, or dismissal.

Role of the Personnel Director

Collective negotiation, a high management perform, is mostly the responsibility of operative
executives, with the personnel director taking part in an exceedingly simply consultive
capability. Once the personnel director takes a vigorous role in negotiations, he ought to tend
the title of vice-president.
After a labour contract has been signed, the personnel director plays a vigorous role in
implementing the agreement, typically decoding the contract provisions to foremen and
supervisors, handling or taking part within the grievance procedure, reviewing discharge and
transfer cases, and activating varied labour-management committees.

2. Mediation
Mediation is an effort to settle disputes with the assistance of AN outsider UN agency that
attempts to stimulate labour and management to succeed in some variety of agreements. The
negotiant, not like AN intermediator, cannot decide the problem. He listens, suggests,
communicates and persuades. He doesn't provide any awards.

3. Conciliation
Conciliation is simply the transportation along by a 3rd party the 2 parties in disputes.

4. Arbitration
Arbitration is resorted to by the parties who fail to attain a settlement by voluntary technique.
The parties to the dispute could then appoint AN intermediator and refer the dispute to him.
The arbitration award is binding upon the parties UN agency referred the dispute to
arbitration. The arbitration will be either voluntary or mandatory.
The leader And staff could conform to settle the dispute by appointing a freelance and
impartial person. Mr. V.V. Giri favoured this technique of judgement against the mandatory
judgement of disputes.
Arbitration provides justice at the minimum value. AN industrial dispute is also said AN
intermediator by an agreement entered into by leader and staff at any time before referring a
dispute to a labour court or industrial judicature or national judicature.
If the arbitrator's area unit is over one then, one amongst them are appointed as umpire. Per
Sec one OA (3), a replica of the arbitration agreement shall be forwarded to the suitable
Government and also the conciliation officer. The voluntary arbitration initial created its look
in Bharat within the year 1918 once nationalist leaders intervened within the dispute between
the Ahmedabad manufacturing plant house owners and their staff.
5. Works Committees
This Committee consists of representatives of employees and employers. Underneath the
economic Disputes Act 1947, works committees exist in industrial institutions during which
100 or additional workmen area units were utilized throughout the previous year. It consists
of AN equal range of representatives of workmen and leaders.
The works committee must push measures for securing and conserving amity and sensible
relations between the leader and workmen. It additionally deals with bound matters viz.,
conditions of labour, amenities, safety and accident bar, academic and recreational activities,
promotion of thrift and saving etc.

Works committees won't upset the subsequent things

1. Wages and allowance

2. Bonus and share schemes
3. Rationalisation and matters connected with fixation of work
4. Matters connected with the fixation of the ordinary labour force
5. Programmes of designing and development
6. Retrenchment and lay-off
7. Using for organisation activities
8. Provident Fund, gratuity schemes and also the retiring edges
9. Quantum of leave and national and pageant holidays
10. Incentive schemes
11. Housing facilities
6. Conciliation Officers
Conciliation Officers are appointed by the govt below the commercial Disputes Act, 1947.
The duties of the Conciliation officer are given below,
He must do everything for conveyance a good and lovable settlement of the dispute. Just in
case of public-service corporation service, he should hold conciliation proceedings within the
prescribed manner.
He shall send a report back to the govt if the dispute is settled within the course of
conciliation proceedings at the side of the memoranda of the settlement signed by the parties.
Where no settlement is reached, the conciliation officer sends a report back to the govt setting
forth the steps taken by him for ascertaining the facts, circumstances concerning the dispute
and also the reasons on account of that settlement couldn't be reached. The report shall be
submitted within fourteen days of the commencement of the conciliation proceedings.
In India, the government of Mumbai 1st introduced Conciliation and Labor Officer in 1934
once the Mumbai Trade Dispute Conciliation Act was passed.

7. Boards of Conciliation
The Government may appoint a Board of Conciliation for promoting the settlement of
commercial disputes. The chairman of the board is an associate degree freelance person and
different members are to be equally diagrammatic by the parties to the dispute.
The duties of the board embody,

(a) To research, the dispute and everyone matters moving the deserves and do all things
because it thinks fit the aim of inducement the parties to come back to a good and lovable
settlement.

(b) A report must be sent to the govt by the board whether or not a dispute is settled or not
within 2 months of the date on that the dispute was remarked it.

8. Court Of Inquiry
The government could appoint a court of inquiry for inquiring into any industrial dispute. A
court could contain one person or quite one person therein case one in every one of the
persons is going to be the chairman. The court shall inquire into the matter and submit its
report back to the govt within an amount of six months.

9. Labor Courts
The government has come upon Labor Courts for addressing the matters laid out in the
Second Schedule of the commercial Disputes Act 1947.
I. These matters embody,
II. The proneness or lawfulness of associate degree order elapsed associate degree leader
below the standing orders.
III. The applying and interpretation of standing orders.
IV. Discharge or dismissal of workmen as well as reinstatement or grantor, relief to
workmen lawfully fired.
V. Withdrawal of any customary concession or privilege.
VI. Unlawfulness or otherwise of a strike or lock-out, and ü All matters aside from those
laid out in the Third Schedule.

10. Industrial Tribunals

An assembly is appointed by the govt for the assessment of commercial Disputes concerning
any matter laid out in the Third Schedule.
These matters are given below

1. Wages as well as the amount and mode of payment.

2. Compensatory and different allowances.
3. Hours of labour and rest intervals.
4. Leave with wages and holidays.
 5. Bonus, percentage, provident fund and gratuity.
6. Shift operating otherwise than following standing orders.
7. Classifications by grades.
8. Rules of discipline.
9. Rationalization.
10. Retrenchment of workmen and closure of multinational.
11. Any other matter which will be prescribed.
The Industrial assembly consists of just one that is appointed by the govt. He ought to either
be a decision of a tribunal or District decide for an amount of not but 3 years. It makes a
reward once hearing the parties to the dispute and also the award is binding on them.

11. National assembly

A National assembly is well-grooved by the Central Government for the assessment of
commercial disputes involving queries of national importance. A National assembly shall
contain one person solely to be appointed by the Central Government. Someone United
Nations agency is or has been a decision of tribunal or United Nations agency has controlled
the workplace of the Chairman or member of the Labor proceedings assembly is eligible for
the appointment of this assembly.
Thank You!

References

Your Article Library. 2021. Industrial Disputes: 7 Useful Methods used for Prevention and Settlements
of Industrial Disputes. [online] Available at: <https://www.yourarticlelibrary.com/industries/industrial-
disputes-7-useful-methods-used-for-prevention-and-settlements-of-industrial-disputes/26086>
[Accessed 27 July 2021].

Economics Discussion. 2021. Industrial Dispute: Meaning, Concept, Characteristics, Types, Causes,

Settlement, Prevention. [online] Available at: <https://www.economicsdiscussion.net/industrial-
disputes-2/industrial-dispute/32493> [Accessed 27 July 2021].