Write a note on trade union movement

in UK and India ?
The growth of labour unions in India can be roughly classified into six
phases.

Pre-1918
 After textile and jute mills were set up followed by the railways,
cruelty towards workers came to light.
 origin of labour movements was traced to the 1860s
 first labour agitation in the history of India occurred in Bombay,
1875. It was organised under the leadership of S.S Bengalee. It
concentrated on the plight of workers, especially women and
children. This led to the appointment of the first Factory
commission, 1875. Consequently, the first factories act was
passed in 1881.
 In 1890, M.N Lokhande established Bombay Mill Hands
Association. This was the first organised labour union in
India.
 The movements in this era mainly concentrated on the welfare
of workers rather than asserting their rights.
 They were organised, but there was no pan India presence.
 A strong intellectual foundation or agenda was missing.

1918-1924: The early trade union phase

This is when true trade union movement started in India.

The deteriorated living conditions caused by the first world war and the
exposure with the outside world resulted in heightened class
consciousness amongst the workers. This provided fertile ground to the
development of the movement. This period is known as the early trade
union period.

Important unions: Ahmedabad Textile Labour Association (1917) led by

Smt. Anasuyaben Sarabhai, All India Postal and RMS Association,
Madras Labour Union led by B.P Wadia etc.
AITUC, the oldest trade union federation in India was set up in 1920. It
was founded by Lala Lajpat Rai, Joseph Baptista, N.M Joshi and Diwan
Chaman Lall. Lajpat Rai was elected the first president of AITUC.

The various factors that influenced the growth of trade union

movement in India during this phase may be briefly catalogued as
follows:
1. The wretched conditions of workers on account of spiralling prices of
essential commodities during the post-World-War I led workers to form
trade unions to improve their bargaining power and, in turn, living
conditions.

2. The political scenario characterized by the home-rule movement and

the martial law in Punjab made the politicians to recognize the workers
movement as an asset to their cause. At the same time, workers also
needed able guidance and leadership from the politicians to settle their
grievances with the employers.

3. The Russian Revolution also swayed the labour movement in India

showing a new social order to the common man in the country.

1925-1934 Phase:
With increasing hardships of workers, the signs of militant tendencies
and revolutionary approach in trade unionism got expression into violent
strikes since 1924. The communists gained influence in L trade union
movement during this period. They split the Trade Union Congress twice
with their widening differences with the left-wing unionists.

The moderate section under the leadership of Mr. N. M. Joshi and Mr. V.
V. Giri seceded from the Congress and set up a separate organization
named the National Trade Unions Federation (NTUF).

Another split in AITUC took place in 1931 at its Calcutta session when
the extreme left wing under the leadership of Messrs S. V. Deshpande
and B T Randive broke away and formed a separate organization,
namely, the All India Red Trade Union Congress Two Years later, the
National Federation of Labour was formed to facilitate unity among all
the left-wing organizations of labour. As a result, the AITUF and NFL
merged to form the National Trade Union Federation (NTUF).
Another important feature of this period was the passing of two Acts,
namely, the Trade Unions Act 1926 and the Trade Disputes Act, 1929
which also gave a fillip to the growth of trade unionism in India. The
former Act provided for voluntary registration and conferred certain rights
and privileges upon registered unions in return for obligations. The later
Act provided for the settlement of trade unions. This phase of the Indian
labour movement may be described as The Period of Left Wing Trade
Unionism.

D. 1935-1938 Phase:
The Indian National Congress was in power in seven provinces in 1937.
This injected unity in trade unions. As a result, the All India Red Trade
Union Congress itself with the AITUC in 1935. After three years in 1938,
the National Trade Union Congress (NTUC) also affiliated with the
AITUC. Other factors that contributed to the revival of trade unions were
increasing awakening among the workers to their rights and change in
the managerial attitude towards trade unions.

In 1938, one of the most developments took place was the enactment of
the Bombay Industrial Disputes Act, 1938. An important provision of the
Act, inter alia, to accord compulsory recognition of unions by the
employers gave a big fillip to the growth of trade unionism in India.

E. 1939-1946 Phase:
Like World War I, the World War II also brought chaos in industrial front
of the country. Mass retrenchment witnessed during the post-World War
II led to the problem of unemployment .This compelled workers to join
unions to secure their jobs. This resulted in big spurt in the membership
of registered trade unions from 667 in 1939-40 to 1087 in 1945-46.

Somuchso workers in the registered trade unions witnessed a

phenomenal increase from 18,612 to 38,570 during the same period.
The AITUC again split in 1941 when Dr. Aftab Ali, President of the
Seamen s Association, Calcutta disaffiliated his union from the Congress
and formed a new organization known as the “Indian Federation of
Labour”.
The year 1946 was also marked by two important enactments, namely,
the Industrial Employment (Standing Orders) Act, 1946 and the Bombay
Industrial Relations Act, 1946. Both the Acts, through their provisions,
contributed to strengthen the trade unionism in the country.

F. 1947 and Since:

Proliferation of trade unions in the pattern of proliferation of political
parties has been a distinguishing feature in the trade union history of
India during the post-Independence period. In May 1947, the Indian
National Trade Union Congress (INTUC) was formed by the nationalists
and moderates and was controlled by the Congress Party. Since by
then, the AITUC is controlled by the Communists.

The Congress socialists who stayed in AITUC at the time of the

formation of INTUC subsequently formed the Hind Mazdoor Sabha
(HMS) in 1948 under the banner of the Praja Socialist Party.
Subsequently, the HMS was split up with a group of socialist and formed
a separate association, namely, “Bhartiya Mazdoor Sabha” (BMS) which
is now an affiliate of the Bhartiya Janata Party (B JP). Years after, the
communist party split into various fractions forming the United Trade
Union Congress (UTUC) and the Center of Indian Trade Unions (CITU).

Later again, a group disassociated itself from the UTUC and formed
another UTUC—Lenin Sarani. Of late, with the emergence of regional
parties since 1960, most of the regional parties have shown its
inclination to a trade union wing, thus, adding to the proliferation of trade
unions in the country. Thus, it is clear that the origin and growth of trade
union movement in India is riddled with fragmented politicization.

At present, there are 8 central trade union organisations. Of these,

four major federations with their national network are:
1. All India Trade Union Congress (AITUC)

2. Indian National Trade Union Congress (INTUC)

3. Bhartiya Mazdoor Sangh (BMS)

4. Centre of Indian Trade Unions (CITU)

Discuss the role of ILO and trade
union provisisons ?
International Labour Organisation (ILO) is the most important
organisation in the world level and it has been working for the benefit of
the workers throughout the world. It was established in the year 1919. It
is a tripartiate body consisting of representatives of the Government,
Employer, workers. It functions in a democratic way by taking interest for
the protection of working class throughout the world

It is also working at the international level as a ‘saviour of workers’

‘protector of poor’ and it is a beacon light for the change of social justice
and social security. The I.L.O examines each and every problem of the
workers pertaining to each member country and discusses thoroughly in
the tripartiate body of all the countries. The I.L.O passes many
Conventions and Recommendations on different subjects like Social
Security, Basic Human Rights, Welfare Measures and Collective
Bargaining. On the basis of Conventions and Recommendations of
I.L.O. every country incorporates its recommendations and suggestions
in its respective laws

The idea of protecting the interest of the labour against the exploitation
of capitalists owes its origin to the philanthropic ideology of early thinkers
and philosophers, and famous among them is “Robert Owen” who being
himself an employer took interest in regulating hazardous working
conditions of the workers and also in human conditions under which the
workers were being crushed underneath the giant wheels of production.

Aims of the International Labour Organisation

The principle aim of the I.L.O is the welfare of labour as reaffirmed by

the Philadelphia Conference of 1944 under the Philadelphia Declaration,
on which the I.L.O. is based

1. Labour is not a commodity;

2. Freedom of expression and of association are essential to sustained
progress;

3. Poverty anywhere constitutes danger to prosperity everywhere; and

4. The war against want requires to be carried on with unrelenting vigour

within each nation, and by continuous and concerted international effort
in which the representatives of workers and employers, employing equal
status with those of governments, join with them in free discussion and
democratic decision with a view to the promotion of the common welfare.

International Labour Standards on Freedom of Association

The principle of freedom of association is at the core of the ILO's values.

The right to organize and form employers' and workers' organizations is

the prerequisite for sound collective bargaining and social dialogue.

1. Freedom of Association and Protection of the Right to Organize

Convention, 1948:

This Convention provides that workers and employers shall have the
right to establish and join organizations of their own choosing without
previous authorization. The public authorities are to refrain from any
interference which would restrict the right to form organization or impede
its lawful exercise. These organizations shall not be liable to be
dissolved or suspended by administrative authority. It also provides
protection against act of anti-union discrimination in respect of their
employment. This convention has been ratified by Albania, Argentina,
Austria, Belgium, Brazil,Byelorussia, Cuba, Denmark, Dominican
Republic, Finland and France. Federal Republic of Germany and India
have not ratified this particular convention.

As regards the Trade Unions Act, 1926, it limits the number of outsiders
in the executive of a trade union. Further there is restriction on outsiders
in the federations of Government servants who cannot affiliate
themselves with any central federations of workers. Also, the
Government in public interest can forego any association or trade union
and detain or arrest a trade union leader under the Essential Services
Act, 1967 , the Preventive Detention Act, 1950, the Maintenance of
Internal Security Act, 1971 Likewise the Code of discipline in industry,
although non-legal and nonstatutory, one regulates the organization of
constitution of India itself, while guaranteeing freedom in public interest
and public good. These laws and practice on trade unions do not
conform to the requirements of the convention.

2. Right to Organize and Collective Bargaining Convention, 1949

This fundamental convention provides that workers shall enjoy adequate

protection against acts of anti-union discrimination, including
requirements that a worker not join a union or relinquish trade union
membership for employment, or dismissal of a worker because of union
membership or participation in union activities. Workers' and employers'
organizations shall enjoy adequate protection against any acts of
interference by each other, in particular the establishment of workers'
organizations under the domination of employers or employers'
organizations, or the support of workers' organizations by financial or
other means, with the object of placing such organizations under the
control of employers or employers' organizations. The convention also
enshrines the right to collective bargaining.

3. Workers' Representatives Convention, 1971

Workers' representatives in an undertaking shall enjoy effective

protection against any act prejudicial to them, including dismissal, based
on their status or activities as a workers' representative or on union
membership or participation in union activities, in so far as they act in
conformity with existing laws or collective agreements or other jointly
agreed arrangements. Facilities in the undertaking shall be afforded to
workers' representatives as may be appropriate in order to enable them
to carry out their functions promptly and efficientl
Discuss in detail the scope and
significance of the trade union act ? ?
(Salient Features and scope with
significance are one and the same)
The objective of the Trade Unions Act of 1926 was to:

1. Ensure Security of Workers:

This ensured continued employment of workers, prevent
retrenchment, lay off or lock-outs. Controlled application of
“fire― or dismissal or discharge and VRS.
2. Obtain Better Economic Returns:
This ensured wages hike at periodic intervals, bonus at higher
rate, other admissible allowances, subsidized canteen and
transport facilities.
3. Secure Power To Influence Management:
This ensured workers’ participation in management, decision
making, role of union in policy decisions affecting workers, and
staff members.
4. Secure Power To Influence Government:
This ensured influence on government to pass labour legislation
which improves working conditions, safety, welfare, security and
retirement benefits of workers and their dependents, seek
redressal of grievances as and when needed.
Wrie a note on the process of
registration of trade union and its
Importance ?
Appointment of Registrars

According to section 3 of the Act, the appropriate government shall

appoint a person to be the Registrar of Trade Unions for each state, and
the appropriate government shall also appoint as many additional
registrars as it may deem fit to carry out the purposes of the Act.

Mode of Registration

According to section 4 of the Act, any seven or more members of a

Trade Union in accordance with the provisions of the Act may make an
application apply for registration of the trade union. There are two
conditions subsequent to the same, firstly no trade union of workmen
shall be registered unless at least 10% or 100 of the workmen,
whichever is less engaged in the employment of the establishment are
its members on the date of making of its application and secondly no
trade union shall be registered unless on the date of making of
application, minimum seven of its members who are workmen are
employed in the establishment or industry.

Also, such application shall not be deemed to be invalid merely on the

ground that at any time after the date of the application, but before the
registration of the trade union some of the members but not exceeding
half of the total number of persons who made the application has ceased
to be members.
Application for registration

According to section 5 of the Act, every application for the registration of

the trade union shall be made to the Registrar and shall be accompanied
by a copy of the rules of the Trade Union and a statement of the
following particulars namely-

1. The names, occupations and addresses of the members making

the application;
2. The name of the trade union and the address of its head office,
and
3. The titles, names, ages, addresses and occupations of the
office- bearers of the trade union.

Where a trade union has been into existence for more than a year, then
a copy of the assets and liabilities shall also be submitted along with the
application for registration.

Provisions to be contained in the rules of a Trade Union

According to section 6 of the Act, a Trade Union shall not be entitled to

registration under the Act unless the executive committee has been
established in accordance with the provisions of the Act and the rules
provide for the following-

1. The name of the trade union;

2. The whole of the objects for which the trade union has been
established;
3. The whole of the purposes for which the general funds of the
trade union shall be applicable;
4. The maintenance of a list of the members of the trade union;
5. The admission of ordinary members who shall be persons
actually engaged or employed in an industry with which the
trade union is connected;
 6. The conditions under which any member shall be entitled to any
benefit assured by the rules and under which any fine or
forfeiture may be imposed on the members;
7. The manner in which the rules shall be amended, varied or
rescinded;
8. The manner in which the members of the executive and the
other office bearers of the Trade Union shall be elected and
removed;
9. The safe custody of the funds of the trade union, an annual
audit, in such manner, as may be prescribed, of the accounts
thereof, and adequate facilities for the inspection of the account
books by the office bearers and members of the trade union,
and;
10. The manner in which the trade union may be dissolved.

Power to call for further particulars and to require alteration of

name

According to section 7 of the Act, the registrar may call for further
information for the purpose of satisfying himself that whether all the
particulars are in accordance with section 5 and 6 of the Act.

In case the trade union applying for registration bears a name identical
to that of an existing trade union and the registrar feels that the name so
resembles that of the other that there are fairs chances of the persons
being misled then the registrar shall ask the trade union applying to
change the name and shall refuse to register the same until such
alteration has been made.

Registration

According to section 8 of the Act, if the registrar thinks that the trade
union has complied with all the provisions of the Act, it shall register the
Trade Union by entering in a register all the particulars in accordance
with the provisions of the Act.
Certificate of registration

According to section 9 of the Act, the registrar shall issue a certificate of

registration to the trade union after registration under section 8 which
shall be conclusive proof that a trade union has been duly registered.

Cancellation of registration

According to section 10 of the Act, a certificate of registration of a trade

union may be cancelled or withdrawn or an application of the trade union
to be verified in such manner as may be prescribed; where the registrar
is satisfied that the certificate has been obtained by fraud or mistake or
the trade union has ceased to exist or has willfully and other notice from
the registrar contravened any provisions of the Act and if the registrar is
satisfied that a registered trade union ceases to have requisite number
of members.

Appeal

According to section 11 of the Act, any person aggrieved by any refusal

to register a trade union or withdrawal of registration, etc by registrar
may file an appeal where the trade union head office is situated within
the limits of a presidency town to the High Court, or where the head
office is situated in an area, falling within the jurisdiction of a Labour
Court or an Industrial Tribunal, to that court or tribunal as the case may
be; where the head office is situated in any area, to such court, not
inferior to the court of an additional or assistant judge of a principal Civil
Court of original jurisdiction as the appropriate government may
appoint.

On an application to the appropriate forum, the court may either dismiss

the appeal or pass an order directing the registrar to take appropriate
measures.

The court shall have the same powers of a civil court under Civil
Procedure Code, 1908 and may follow the same procedures.
The highest appeal can be made to the High Court.

Registered office

According to section 12 of the Act, all communications shall be made on

the registered office of the trade union

Incorporation of registered trade union

According to section 13 of the Act, every registered trade union shall be

a body corporate having a common seal and perpetual succession with
power to acquire and hold movable and immovable property and shall by
the said name sue and be sued.

Conclusion

The presence of trade unions establishes a healthy relationship between

the employer and workmen with a sense of responsibility towards each
other. Trade unions define and channelize the rights of the workers with
pressure on the employer to not deceit them. The registration of Trade
Union ensures that a trade union duly certified and recognized and
thereby the provisions for same are laid down exhaustively in the Act.
Write a note on concept of collective bargaining? ( Meaning,
Mechanism, Features, Relationship)

Definition of Collective Bargaining:

Industrial disputes between the employee and employer can also be
settled by discussion and negotiation between these two parties in order
to arrive at a decision.

This is also commonly known as collective bargaining as both the parties

eventually agree to follow a decision that they arrive at after a lot of
negotiation and discussion.

Collective Bargaining is concerned with the relations between unions

reporting employees and employers (or their representatives).

It involves the process of union organization of employees, negotiations

administration and interpretation of collective agreements concerning
wages, hours of work and other conditions of employees arguing in
concerted economic actions dispute settlement procedures”.

Collective Bargaining Involves:

(i) Negotiations

(ii) Drafting

(iii) Administration

(iv) Interpretation of documents written by employers, employees and

the union representatives

(v) Organizational Trade Unions with open mind.

Main Features of Collective Bargaining:

Some of the salient features of collective bargaining are:
1. It is a Group Action:
Collective bargaining is a group action as opposed to individual action.
Both the parties of settlement are represented by their groups. Employer
is represented by its delegates and, on the other side; employees are
represented by their trade union.
2. It is a Continuous Process:
Collective bargaining is a continuous process and does not end with one
agreement. It provides a mechanism for continuing and organised
relationship between management and trade union. It is a process that
goes on for 365 days of the year.

3. It is a Bipartite Process:
Collective bargaining is a two party process. Both the parties—
employers and employees— collectively take some action. There is no
intervention of any third party. It is mutual given-and-take rather than
take-it-or-leave-it method of arriving at the settlement of a dispute.

4. It is a Process:
Collective bargaining is a process in the sense that it consists of a
number of steps. The starting point is the presentation of charter of
demands by the workers and the last step is the reaching of an
agreement, or a contract which would serve as the basic law governing
labour-management relations over a period of time in an enterprise.

5. It is Flexible and Mobile and not Fixed or Static:

It has fluidity. There is no hard and fast rule for reaching an agreement.
There is ample scope for compromise. A spirit of give-and-take works
unless final agreement acceptable to both the parties is reached.

6. It is Industrial Democracy at Work:

Collective bargaining is based on the principle of industrial democracy
where the labour union represents the workers in negotiations with the
employer or employers. Industrial democracy is the government of
labour with the consent of the governed—the workers. The principle of
arbitrary unilateralism has given way to that of self-government in
industry. Actually, collective bargaining is not a mere signing of an
agreement granting seniority, vacations and wage increase, by sitting
around a table.

7. It is Dynamic:
It is relatively a new concept, and is growing, expanding and changing.
In the past, it used to be emotional, turbulent and sentimental, but now it
is scientific, factual and systematic.
8. It is a Complementary and not a Competitive Process:
Collective bargaining is not a competitive process i.e., labour and
management do not coopt while negotiating for the same object. It is
essentially a complementary process i.e., each party needs something
which the other party has, namely, labour can put greater productive
effort and management has the capacity to pay for that effort and to
organise and guide it for achieving the enterprise’s objectives.

9. It is an Art:
Collective bargaining is an art, an advanced form of human relations.

Means of Collective Bargaining:

Generally, there are four important methods of collective bargaining,
namely, negotiation, mediation, conciliation and arbitration for the
settlement of trade disputes. In this context R.F. Hoxie said that
arbitration is often provided for in collective bargaining under certain
contingencies and for certain purposes, especially when the parties
cannot reach agreement, and in the interpretation of an agreement
through negotiation.

Conciliation is a term often applied to the art of collective bargaining, a

term often applied to the action of the public board which attempts to
induce collective bargaining.

Mediation is the intervention usually uninvited, of some outside person of

body with a view of getting conciliation or to force a settlement,
compulsory arbitration is extreme mediation. All these things are aids or
supplement to collective bargaining where it breaks down. They
represent the intervention of outside parties.

COLLECTIVE BARGAINING RELATIONSHIP W LABUR LAWS

Collective bargaining is a key means through which employers and their

organizations and trade unions can establish fair wages and working
conditions. It also provides the basis for sound labour relations. Typical
issues on the bargaining agenda include wages, working time, training,
occupational health and safety and equal treatment. The objective of
these negotiations is to arrive at a collective agreement that regulates
terms and conditions of employment. Collective agreements may also
address the rights and responsibilities of the parties thus ensuring
harmonious and productive industries and workplaces. Enhancing the
inclusiveness of collective bargaining and collective agreements is a key
means for reducing inequality and extending labour protection.

Therefore, the Government of India under Industrial Disputes Act

1947 has created the following seven different authorities for the
prevention and settlement of disputes:
1. Workers Committees.

2. Conciliation Officer.

3. Board of Conciliation.

4. Court of Enquiry.

5. Labour Courts.

6. Industrial Tribunals.

7. National Tribunals.

Advantages: 1. Collective Bargaining imposes an obligation on both

parties to the dispute and creates a specific code of conduct for parties
to the process. 2. The parties to the dispute undertake not to resort to
strikes or lock-outs, and thus collective bargaining ensures peace and
industrial harmony.

Disadvantages: 1. Increase in wages, and extra expenses to provide

other amenities to workmen and improvement of working conditions can
cause higher cost of production. 2. Political interference in the labour
unions during the collective bargaining process increases the chance for
adverse effects.
What is an industrial dispute? Elucidate on the salient features of
industrial disputes act ?

Industrial Dispute is “any dispute of difference between employers and

employers or between employers and workmen; or between workmen
and workmen, which is connected with the employment or non-
employment or the terms of employment or with the conditions of labour
of any person.”

Industrial dispute as defined under Sec. 2(k) exists between-

Parties to the dispute who may be

 Employers and workmen

 Employers and Employers
 Workmen and workmen
 a) There should be a factum of dispute not merely a difference of
opinion.

 b) It has to be espoused by the union in writing at the

commencement of the dispute. Subsequent espousal will render
the reference invalid. Therefore date when the dispute was
espoused is very important.
 c) It affects the interests of not merely an individual workman but
several workmen as a class who are working in an industrial
establishment.
 d) The dispute may be in relation to any workman or workmen or
any other person in whom they are interested as a body.

The provision also lays down the grounds that need to be abided by
in order to term a dispute as an industrial dispute. These grounds are
provided hereunder:

1. The mere difference of opinion will not constitute an industrial

dispute instead of a factum of dispute will.
2. The date of commencement of the dispute should be provided in
writing by the union otherwise the same reference will be declared
invalid. It was in the case of Union of Journalists v. The Hindu where
the court observed that for a dispute to be claimed under industrial
dispute, the same should be existing or apprehending on the date
 that has been referred. Therefore what the court meant by these
observations is that if the demand by the employees were not
brought before the management under which they work, and similar
demands were raised during the time of the proceedings, the
dispute will still be considered as an industrial dispute and proceed
further with settlement mechanisms. Similar kind of view was made
by the court in the case of Shambhu Nath Goel v Bank of
Baroda also.
3. The dispute should be such that it affects the well-being of the
majority of workmen and not a single work-man.
4. The dispute that has arisen should be in relation with an individual
workman or workmen in whom they being a body is or are
interested in.

Main features of The Industrial Dispute Act:

1. Strike and lock-outs are prohibited during the pendency of
conciliation, adjudication settlement preceding.
2. Any industrial dispute may be referred to an industrial tribunal by
an agreement of parties to dispute or by State Government.
3. An award shall be binding on both the parties to the dispute for a
specified period not exceeding one year enforced by the
government.
4. In public interest or emergency, the appropriate government has
the power to declare the transport, coal, iron and steel industry to
be public utility services for the purpose of The Industrial Dispute
Act, for a maximum period of six months.
5. In case of lay off or retrenchment of workmen, the employer is
required to pay compensation.
6. Provision has also been made for payment of compensation to
workmen.
7. A number of authorities such as works committee, Conciliation
Officer, Board of Conciliation, Labour court, Tribunal are provided
for settlement of industrial disputes.
Write a note on authorities under
the industrial disputes act ?

Authorities under the Act

The following are the authorities specified under the Industrial Dispute
Act.

 Works Committee.
 Conciliation Officers.
 Board of Conciliation.
 Court of Inquiry.
 Labour Court.
 Industrial Tribunal.
 National Tribunal.

Works Committee
The works committee is considered to be a powerful social institution
only to secure cooperation between workers and employers, but to make
the will of the employees effective on the management. According to
section 3 of the Industrial Disputes Act, in case of an industrial
establishment which contains 100 or more workmen are employed or
have been employed on any day in the preceding twelve months, the
appropriate Government by ordinary or particular order, acquire the
employer to build a works committee containing of representatives of
employers and workmen engaged in the establishment. The number of
representatives of workers on Works Committee should not be less than
the number of representatives of the employers.

Responsibilities of Work Committee

 To promote measures for securing and preserving good relations

between the employer and the workmen.
 To communicate upon subjects of their common interest or
concern.

Conciliation Officers
The appropriate government will appoint conciliation officers charged
with the duty of mediating in and promoting the settlement of the
industrial disputes. Those conciliation officers are appointed for a
specified area or a specified industry in a specified area, and his
appointment may be permanent or temporary.

Responsibilities of Conciliation Officers

 In case of any industrial disputes exist, the conciliation officer

should maintain conciliation proceedings in a prescribed manner
without delay to have the right settlement.
 Whether the settlement is reached or not, the conciliation officer
has to submit the report within 14 days of the commencement of
the conciliation proceedings or within the date fixed by the
appropriate government.
 If the report proposed in satisfied to the respective Government, it
may refer or not refer the dispute to any concerned authority under
the Act. If the Government is not performing any endorsement, it
should record and communicate the reason to the relevant parties.
 The duty of a conciliation officer is administrative and not judicial.

Board of Conciliation
Similarly, a board of conciliation also be constituted to promote the
settlement of industrial disputes. A board should consist of a chairperson
and two or four other members, as the appropriate government thinks fit.
The chairman should be an independent person, and the other member
should be a person appointed in equal numbers to represent the parties
to the dispute on the recommendation of the parties concerned. If any
party refuses to make a recommendation within the prescribed time,
then the appropriate government can appoint such persons eligible to
represent the party.

Responsibilities of Board of Conciliation

 When a dispute has been proposed to a Board, the board will

investigate the matter affecting the merits and right settlement of
the dispute without delay.
 Whether settlement reached or not, the Board must submit the
report within two months of the date on which the dispute was
proposed to it.
 If no settlement has arrived, the Government may refer the dispute
to the labour court, Industrial Tribunal or National Tribunal.
 The time for submission of the report will be extended by the
period as agreed by all the parties to the disputes
 The report of the Board should be in the written notice and has to
be signed by all the members of the Board.
 The appropriate Government should publish the report submitted
within 30days from the receipt
 A Board of Conciliation only has the power to bring about a
settlement. It has no authority to impose a settlement on the
parties to the dispute.

Courts of Inquiry
The appropriate government will constitute a court of inquiry consisting
thirteen of one or more independent persons to inquire into any subject
connected with or relevant to an industrial dispute where a court consists
of two or more members any one of them will be appointed as chairman.

Responsibilities of Courts of Inquiry

 A Court will inquire into the request raised to it and report to the
appropriate government within six months from the
commencement of the inquiry.
 The report of the court will be in the form of a written statement
and signed by all the members of the court.
 Members are free to record their dissent. The report submitted will
be published within 30 days of its receipt by the Government.
Labour Courts
The appropriate government will constitute one or more labour courts to
adjudicate industrial disputes relating to any of the following entities.

 The propriety or legality of an order passed by an employer under

the standing orders.
 The application and interpretation of standing orders.
 Discharge or dismissal of workers, including the retirement, grant
of relief to workers wrongfully dismissed.
 Withdrawal of any customary concession or privilege.

The appropriate government will appoint a labour court which consists of

one person with the necessary judicial qualifications and will be
appointed by the appropriate government.

Responsibilities of Labour Courts

 Adjudicate upon the industrial disputes regarding any subject

specified in the Second Schedule.
 When an industrial dispute has been proposed to a Labour Court
for adjudication, within the specified period, it should submit award
to the appropriate Government.
 The appropriate Government will publish it within 30 days from the
date of its receipt.

Industrial Tribunals
The appropriate Government by notification in the legal Gazette will
constitute one or more industrial tribunals for the adjudication of
industrial disputes relating to any matters specified above as in the case
of Labour Court, or the following matters, namely

 Wages include the period and mode of payment

 Compensatory and other allowances;
 Hours of work and rest intervals.
 Leave with wages and holidays.
 Bonus, profit sharing, provident fund and gratuity.
 Shift working otherwise than by standing orders.
 Rules of discipline
 Rationalisation
 Retrenchment of workers and closure of establishment and
 Any other subject which is prescribed.
Responsibilities of Industrial Tribunals

 It should submit its request to the appropriate Government within a

specified period if an industrial dispute is proposed to an Industrial
Tribunal.
 The request should be in written format and also be signed by its
presiding officer.
 The request made should be published by the appropriate
government within 30 days in a prescribed manner.
 Then the judicial body needs to serve notice upon the parties to
the reference by name before making any request.

National Tribunal
The Central Government by notification in the legal Gazette, constitute
one or more National Industrial Tribunals for the adjudication of industrial
disputes in the opinion of the Central Government involve questions of
the national importance of industrial establishments situated in more
than one State are likely to be interested or affected by such disputes.

A National Tribunal will consist of one person to be appointed by the

Central Government. To be qualified as a Presiding Officer of a National
Tribunal, a person must be or must have been a Judge of a High Court,
or must have held the office of the Chairman or any other member of the
Labour Appellate Tribunal for at least two years. The Central
Government may appoint two assessors to advise the National Tribunal,
in proceedings before it.

Responsibilities of National Tribunals

 When an industrial dispute is requested to the National Tribunal for

adjudication, it should submit its request to the appropriate
government.
 The request should be in written format and also be signed by the
presiding officer of the National Tribunal.
 It should publish the request made within a period of 30days from
the date of its receipt by Central Government.

Provision of Illegal Strike and Lockout under the Act

As per the Section 24 of the Act provides that a strike or a lockout shall
be illegal in the following cases:
 Declared in contravention of Section 22 or Section 23.
 Continued in contravention of the prohibitory order performed by
appropriate Government after the dispute has been stated under
Section 10(3).
What is voluntary arbitration? Distinguish it from compulsory
adjudication ?

Mechanism of Settlement disputes under the Industrial Dispute Act

Certain machinery is existing under the methods of settling industrial

disputes which helps in regulating the settlement and handling of the dispute
in a just and fair manner for the parties involved in the dispute and thereby
ensure or guarantee a normalised situation under which the employer and
the employee can exist and work in a friendly manner which is required for
the growth of the industry.

Out of the methods mentioned there are voluntariry arbitration and

compulsory adjudication.

VOLUNTARY ARBITRATION

Arbitration means a procedure which involves a third party in the form of a

single arbitrator or a board of arbitrators who are assigned with the duty to
resolve the dispute between the parties. Voluntary symbolises self
willingness and consent. Therefore voluntary arbitration means that the
parties who are involved in the dispute willfully agree to the decision taken
by the arbitrator or the board of arbitrators without any outside compulsion.

SECTION 10A of the Industrial Dispute Act, 1947 provides the provision for
voluntary arbitration which in a real-world is completely carried out by
adjudication. Arbitration and adjudication have a very thin line of difference
between them. While in the former the judge is decided by the parties
involved in the dispute, whereas in the latter the judge is appointed by the
State.

The origin of voluntary arbitration in India dates back to the issue of plague
bonus in the Ahmedabad Textile Mills under the leadership of the father of
the nation, Mahatma Gandhi. To make voluntary arbitration compulsory, The
Trade Unions & Industrial Disputes (Amendment) Bill, 1988 was brought in
laying down restrictions on legal strikes by the employees. According to the
bill, legal strikes can be carried out by the parties only after either of the
parties has rejected the offer of arbitration that had been provided to the
parties to settle the dispute. Although several efforts have been put to effect
by the Indian government, voluntary arbitration still remains in shadows as
have been reflected by the statistics.

It was in the case of Gujarat Steel Tubes Ltd. v. Gujarat Steel Tubes Mazdoor
Sabha, the apex court inform judicial legislation vested on the arbitrator the
powers of a labour tribunal for cases of discharge of workmen as a form of
punishment. This provided the arbitrator with appellate jurisdiction using
which the arbitrator can oppose the decision of an employer regarding his
employees. These exceptional powers were conferred by the Supreme Court
of India on the arbitrator.

Engineering Mazdoor Sabha v. Hind Cycles

Ltd.

Its held that an arbitration

under section 10A of the Act is not a tribunal for the purpose of
Article 136 of the Constitution. Hence the Court cannot entertain an
appeal under Article 136 from a decision of the "arbitrator".
For invoking Art. 136 (1) two conditions must be satisfied. First, the
proposed appeal must be from a judgment, decree, determination,
sentence or order

Secondly, the said determination or order must have been made or

passed by any court or tribunal in the territory of India. The
Supreme Court in the instant case has also conceded " that the
decisions of the arbitrators to whom industrial disputes are
voluntarily referred under S. 10A of the Act are quasi- judicial
decisions and they amount to determinations or orders under
Article 136(1).

Adjudication SECTION 10
It is not that adjudication replaces conciliation totally but rather the matter is
if conciliation fails to settle the dispute between the parties in the industry,
adjudication takes charge in carrying out the job which the conciliation
mechanism was assigned to do. It is just another legal remedy that can be
adopted if the necessity arises. The ultimate remedy for resolving an
industrial dispute is by adjudication.

Adjudication can also be termed as the compulsory settlement of the

industrial dispute in concern by labour courts, industrial tribunals, and
national tribunal as provided by the Industrial Dispute Act,1947. The terms
adjudication and arbitration have minute differences if placed in our country.

It is on the government to decide whether to refer to the party or not before

proceeding with the adjudication mechanism. If the parties are involved by
the government then that type of adjudication will be referred to as
voluntary adjudication. Whereas if the government does not feel it to be
necessary to involve the parties in the adjudication mechanism then that
kind of adjudication will be called compulsory adjudication.

Adjudication of the industrial dispute will take place by a three-tier system

___________________________________________________________

Scope of Section 10 - Nature of Government Power

Section 10(1) Act states that, where the Appropriate Government is of opinion that any industrial
dispute exists or is apprehended it may at anytime; by order in writing refer the dispute to a Board
or Court of Inquiry or Labour Court or to an Industrial Tribunal for adjudication. From the above
provision, it is evident that the Appropriate Government can only refer a dispute to any adjudicatory
body provided if it is satisfied that there exists an industrial dispute or apprehension of such dispute
but not otherwise.

It shows that the foremost object of the Act is to provide for economical and expeditious machinery
for the decision of all industrial disputes by referring them to adjudication, and avoid industrial
conflict resulting from frequent lock-outs andstrikes.

On the construction of this Section the Supreme Court in a number of decisions explained that this
power of the Appropriate Government is purely of an ‘administrative nature’, as the expression is
understood in contradiction to quasi judicial or judicial power.

The restriction on the Government is that it should exercise the power bonafide after application of
its mind to the matter before it. It should take all relevant matters into consideration and leave out
all irrelevant consideration.

The adjudication of industrial disputes under the Act, is based on the concept of compulsory
adjudication and hence, the Appropriate Government has to refer the industrial dispute and the
adjudicator is bound to adjudicate on the referred industrial dispute and thereafter to give its
decision in writing inthe form of award.

1. Compulsory Arbitration – In cases where the government

instructs the two parties to opt for the process of arbitration. The
judgement produced by the arbitrator is binding on both the
parties.
What are award and settlement ? Write a note on the Judicial
review of the award

What is award -

The judgment of an arbitrator is called his Award. Award (Judgement)

of Arbitrators under section 10A is an Award.

3) Definition of Award -

Section 2(b) of the Industrial Dispute Act,1947 defines Award as

follows -

According to Section 2(b) of the Industrial Disputes Act, 1947 ‘Award’

means an interim or a final determination of any Industrial Dispute or of
any question relating thereto by any Labour Court, Industrial
Tribunal or National Industrial Tribunal and includes an arbitration
award made under section 10A.

4) Ingredients of Award -

To constitute Award under Section 2(b) of the Industrial Dispute

Act, 1947 the following ingredients are to be satisfied -

(a) An Award is an interim or final determination of an industrial

dispute.

(b) It is an Interim or final determination of any question relating to

such dispute.

(c) Such interim or final determination is made by any Labour

Court, Industrial Tribunal or National Industrial Tribunal.

(d) Award (Judgement) of Arbitrators under section 10A is an

Award.
What is Settlement -

According to Section 2 (p) of the Industrial Dispute Act, 1947

“Settlement” means a settlement arrived at in the course of conciliation
proceeding and includes a written agreement between the employer and
workmen arrived at otherwise than in the course of conciliation

proceeding where such agreement has been signed by the parties

thereto in such manner as may be prescribed and a copy thereof has
been sent to an officer authorised in this behalf by the appropriate
Government and the conciliation officer.

On whom Awards and Settlements are binding

According to Section 18 of the Industrial Disputes Act, 1947

Awards and Settlements are binding on the following persons -

(1) A settlement arrived at by agreement between the employer

and workman otherwise than in the course of conciliation proceeding
shall be binding on the parties to the agreement.

(2) Subject to the provisions of sub-section (3), an arbitration award

which has become enforceable shall be binding on the parties to the
agreement who referred the dispute to arbitration.

(3) A settlement arrived at in the course of conciliation

proceedings and an award of a Labour Court, Tribunal or National
Tribunal shall be binding on-

(a) All parties to the industrial dispute;

(b) All other parties summoned to appear in the proceedings

as parties to the dispute, unless the Board, arbitrator Labour Court,
Tribunal or National Tribunal, as the case may be, records the opinion
that they were so summoned without proper cause;

(c) Where a party referred to in clause (a) or clause (b) is an

employer, his heirs, successors or assigns in respect of the
establishment to which the dispute relates;
 (d) All persons who were employed in the establishment or
part of the establishment on the date of the dispute and all persons who
subsequently become employed in that establishment or part.

Distinction between Awards and Settlement

No Award Settlement
1 Section 2(b) of the Section 2(p) of the
Industrial dispute Act Industrial dispute Act
1947 defines Award. 1947 defines
Settlement.
2 “Award” means an “Settlement” means a
interim or a final settlement arrived at in
determination of any the course of
industrial dispute or of conciliation
any question relating proceeding and
thereto by any Labour includes a written
Court, Industrial Tribunal agreement between
or National Industrial the employer and
Tribunal and includes an workmen arrived at
arbitration award made otherwise than in the
under Section 10-A. course of conciliation
proceeding where
such agreement has
been signed by the
parties thereto in such
manner as may be
prescribed and a copy
thereof has been sent
to an officer
authorized in this
behalf by the
appropriate
Government and the
conciliation officer.
3 It is the decision given It is arrived at as a
by the arbitrator, Labour result of conciliation
Court or Industrial between the parties to
Tribunal. the settlement.
4 It resembles the It resembles a
 judgment of a Court. gentleman agreement.
5 It is to be signed by the It is signed by the
Presiding Officer. parties to the dispute.

Sirsilk Vs Govt Of Andhra Pradesh

# There was an industrial dispute between the employers and the
employees.
# Dispute was referred by the govt. for adjudication under section 10 (1)
# This matter was decided in a labour court and as per section 15
adjudicator is bound to present an award as expedious as possible.
# Parties reached to a private settlement but award was yet not
published
# Parties made an request to the govt. not to go ahead with the
publication of the award.
# ISSUE: whether the govt. can withhold the publication of award?
# It was held that the govt. has no power to withhold the award, they
have to publish the award nut due to some extraordinary situations such
as in this case govt. was allowed not to publish the award.