Dispute Resolution

Methods and
Machinery
 Methods of Dispute Settlement

Voluntary Methods Statutory Measures

 Collective Bargaining  Work Committees
 Trade Unions  Conciliation Authorities
 Joint Consultants  Conciliation Officer
 Boards of Conciliation
 Standing Orders
 Court of Enquiry
 Grievance Procedure
 Adjudication
 Code of Discipline
 Labour Courts
 Industrial Tribunals
 National Tribunals

 Arbitration
 Joint Management Council
 1. Work Committees
 As per the provisions of the Industrial Disputes
Act, 1947, organizations employing 100 or
more persons have to set up works committees
at unit level.
 It is represented by an equal number of
representatives of each party and the method of
their appointment are also laid down in
agreements or enactments.
 Works committees are purely consultative in
nature. Works committees greatly contribute in
prevention of industrial disputes.
 Main duty of the works Committee is to
promote measures for securing and preserving
amity and good relations between the
employers and workers.
Objectives
 1. Remove the causes of friction in the day-to-day work situation.
 2. Foster amity and harmonious relationship between the parties.
 3. Create an atmosphere for voluntary settlement of disputes and
frictions.

Functions :
 To promote industrial goodwill.
 The main function of the works committee is “to promote measures
for securing and preserving amity and good relations between the
employer and workmen”.
 To secure cooperation from employers and employees.
 Concerned with problems of day-to-day working.
 2. Conciliation Authorities
 Conciliation is a process by which the representatives
of workers and employers are brought together
before a third party with a view to persuading them to
arrive at an agreement by mutual discussion between
them.
 The third party may be an individual or a group of
people. The third party may also be called as
mediators.
 The ID Act, 1947and other state enactments authorize
the governments to appoint conciliators charged
with duty of mediating in and promoting the
settlement of industrial disputes.
 In Conciliation , the ultimate decision rests with the
parties themselves but the conciliator may offer a
solution to the dispute acceptable to both the parties
and serve as a channel communication . The parties
may accept his recommendation or reject it.
 2.1 Conciliation Officer
 An authority appointed by the government to mediate
disputes between parties brought to his notice; enjoying
the power of civil court.
 He is supposed to give judgement withing 14 days of the
commencement of the conciliation proceedings.
 The conciliation officer shall send a report on the
settlement of the dispute to the appropriate Government
together with a memorandum of the settlement signed
by the parties to the dispute.
 If, on a consideration of the failure report referred above
the appropriate Government is satisfied, that there is a
case for reference to a Board, Labor Court, Tribunal or
National Tribunal it make such reference. Where the
appropriate Government does not make such a reference
it shall record and communicate to the parties concerned
its reasons thereof
 2.2 Boards of Conciliation
 The board is an ad hoc, tripartite body having the
power of a civil court created for a specific dispute
(when conciliation officer fails to resolve disputes
within a time frame, the board is appointed).
 A Board shall consist of Chairman and two or four
other members, as the appropriate Government
thinks fit. The Chairman is an independent person
and other members are representatives of the
parties to the dispute in equal numbers.
 The board shall submit its report within 2 months
of the date on which the dispute was referred to it
or within such shorter period as may be fixed by
the appropriate Government.
 The functions of the Board of Conciliation are the
same as those of the conciliation officers
 2.3 Court of Enquiry
 In case of the conciliation proceedings fail to
resolve a dispute, a court of enquiry is
constituted by the government to investigate
the dispute.
 A court may consist of one independent
person or of such number of independent
persons as the appropriate Government may
think fit and where a Court consists of two or
more members, one of them shall be
appointed as the chairman.
 A court shall enquire into the matters referred
to it and report thereon to the appropriate
Government ordinarily within a period of 6
months from the commencement of its
enquiry.
 3. Adjudication
 Adjudication means a mandatory settlement of an
industrial dispute by a labour court or a tribunal.
Generally, the government deems a dispute for
adjudication depending on the failure of conciliation
proceedings.
 Disputes are generally referred to adjudication on the
recommendation of conciliation officer who had dealt
with them earlier.
 Once referred for adjudication the verdict of a labour
court or tribunal is binding on both the parties.
 This is most significant instrument of resolving disputes.
But, it has been criticized because of the delay involved
in resolving conflicts.
 Section 10 of the Industrial Act, 1947, provides for
reference of a dispute to labour court or tribunal.
 3.1 Labour Courts
 A labor court consists of one person only, who is
normally a sitting or an ex-judge of a High Court.
It may be constituted by the appropriate
Government for adjudication of disputes which
are mentioned in the second schedule of the Act.
 The issues referred to a labor court may include:
 The propriety or legality of an order passed by an
employer under the Standing Orders
 The application and interpretation of Standing
Orders.
 Discharge and dismissal of workmen and grant of
relief to them.
 Withdrawal of any statutory concession or
privilege.
 Illegality or otherwise of any strike or lockout.
 3.2 Industrial Tribunals
 Like a labor court, an industrial tribunal is also a
one-man body.
 Industrial tribunals have wider jurisdiction than the
labor courts.
 Moreover an industrial tribunal, in addition to the
presiding officer, can have two assessors to advise
him in the proceedings.
 The Industrial Tribunal may be referred the
following issues:
 Wages
 Compensatory and other allowances
 Hours of work and rest intervals
 Leave with wages and holidays
 Bonus, profit-sharing, PF etc.
 Rules of discipline
 Retrenchment of workmen
 Working shifts other than in accordance with standing
orders
 3.3 National Tribunals
 A National tribunals is constituted by the Central
government for Industrial Disputes involving
question of national importance.
 It also includes the “industrial dispute is of such a
nature that undertakings established in more than
one state are likely to be affected by such a
dispute”.
 The Central Government may appoint two
assessors to assist the national tribunal. The award
of the tribunal is to be submitted to the Central
Government.
 Every award of a Labor Court, Industrial Tribunal
or National Tribunal must be published by the
appropriate Government within 30 days from the
date of its receipt.
4. Arbitration
 The employer and employees may agree to settle
the dispute by appointing an independent and
impartial person called Arbitrator.
 Arbitration provides justice at minimum cost.
 Process in which a neutral third party listens to the
disputing parties, gathers information about the
dispute, and then takes a decision which is binding
on both the parties.
 Relatively expeditious when compared to courts and
tribunals.
 There are two types of arbitration:
 Voluntary Arbitration
 Compulsory Arbitration
 5. Joint Management Council
 Joint management council (JMC) were set up to enable
workers to participate in management and infuse a spirit
of cooperation between the workers and the
management.
 The salient features of the JMCs are as follows:
 The scheme is a voluntary one.
 The minimum and maximum number of its members are 6
and 12 respectively consisting of equal number of
representatives of workers and employers.
 The JMCs deal with matters like information sharing,
consultative, and administrative.
 The decisions taken by the JMC should be unanimous
ones.
 The JMCs can be set up in the units employing 500 or
more persons and having strong trade unions.
 In the industries where JMCs have been setup have been
better industrial relations, more satisfied work force,
increase in productivity, better profits, etc.