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Industrial Dispute Act 1947

Disputes manifest in the

form of strikes, lockouts
& commonly known as
Industrial Dispute Act 1947 any
dispute or difference between
employers & employers,
employers & workmen, or
workmen & workmen, which is
connected with the employment
or non-employment or terms of
employment or with the condition
of labor of any person.
Causes for dispute

• Wage demand:

• The demand for has never been fully met

because of high rate of inflation & equally
high cost of living.
• Wage agreement reached in one company
will inspire unions in other plants.
Most organizations have multiple unions which
leads to rivalry among different unions.

Here, the problem of authenticity of membership

occurs for the manager.( unions put members in
such a way that overall the number exceeds the
total number of employees in the organization).

Secondly, the problem of collective bargain

Political interference
• Labor movement around the world would show
that labor union by their nature political.
• Drawbacks of unions being politicized:
• Distant ideological issues divide & fragment issues on party
• Because of wrong political influence the unions sometimes do
not sign on the agreement even though it is in favour of
• Political parties somehow engineers strikes, lockouts to show
their political strength, which leads to long lasting disputes.
Unfair labour practices
• Managements unwillingness to talk over ant dispute
or matter, enrages the workers.
• Managements unwillingness to recognize any
particular trade union.
• No enough authority to the officials to negotiate with
the workers.
• When during negotiations for settlement the
representatives take the side of management.
When management uses such words like they
have taken the decision of recruitment, selections
& training & that it need not consult employees in
any of these matters.

Large number of managements have not even

taken any step to provide benefits to the workers.
Too many laws:
• Labor legislation is regarded as most
dynamic institution. There are about 108
acts both central as well as state ,earning
our country the dubious distinction of
being highly labor legislated countries in
the world.
• But the employees & industries who are
benefited by these laws are very few.
• Judiciary also do not play a positive role .
How to solve disputes

• Collective bargaining.

• Code of discipline.
• Grievance procedure.
• Arbitration.
• Conciliation.
• Adjudication.
Collective bargaining:

it occurs when representatives of union meet with

They meet to discuss over employee’s wages &
benefits, to create or revise work rules & to resolve
disputes of labor contract.
The bargain is said to be collective in the sense that
chosen representatives act as bargaining agent for all
employees in dealing with management.
Code of discipline:

Defines duties & responsibilities of

employees & workers.
It ensures that employees recognize the
obligations and rights of one another.

Promotes cooperation.
Grievance Procedure:

1. Section head shall try to resolve & if this

2. Departmental heads shall intervene to
resolve ,if they fail
3.Division heads intervene, if they fail.
4.Complaint is referred to the union.

It is procedure in which the third party

studies the bargaining situation, listens to
both the parties & gathers information ,&
then makes recommendations that are
binding on both the parties.

In this representatives of workers &

employees are brought together
before a third party with a view to
persuade them to arrive at an
agreement by mutual discussion
between them.
It may be said that conciliator has no power to
force a settlement but can work with parties
separately to determine their respective positions,
explain the positions more fully to the opposition &
facilitates reaching of an agreement.

• Refers to mandatory settlement of an

industrial dispute by a labor court or a
tribunal. Generally Government refers a
dispute for adjudication on the failure of
conciliation proceedings.

Presented by:
Ms. Megha Mathur