UNIT IV

The methods of the settlement of disputes/conflicts generally

include:

• Investigation
• Mediation
• Conciliation
• Arbitration
• Adjudication
 INVESTIGATION
• It is conducted by a board or court appointed by the government.
• It may be voluntary or compulsory.
• If the investigation is conducted on an application by either or both the
parties to the dispute, it is voluntary.
• If the government appoints a court of inquiry to investigate into a
dispute without the consent of the parties, it is compulsory.
• Investigation do not aim at bringing about the settlement of disputes
directly, but by analyzing the facts they aims at bringing about an
amicable solution.
 MEDIATION
• In this method, an outsider assists the parties in their negotiations.
• It takes place with the consent of both the parties.
• The mediator performs the messenger’s job for the parties.
• The main aim of mediation is the settlement of disputes by bringing about a
voluntary agreement.
• Three kinds of mediation:
The Eminent Outsider
Non-Government Board and
Semi-Government Board.
• If mediation is conducted skillfully and sympathetically along proper lines, it can
bring about the adjustment of differences that might otherwise contribute to
stoppage of work.
 CONCILIATION

• The main objective of a conciliation is to reunite the two conflicting groups in industry
in order to avoid interruption of production, distrust etc.
• Conciliation is a process by which representatives of both workers and employers.
• Conciliation is an extension of collective bargaining with third party assistance.
• It is the practice by which the services of neutral third party.
• It is a process of rational and orderly discussions of differences between the parties to
a dispute under the guidance of a conciliator.
• Conciliation machinery consists of a conciliator officer and board of conciliations.
• The conciliation officer induces the parties to a course of action.
The task of conciliation is to offer advice and make suggestions to the parties to
the dispute on controversial issues. Conciliator plays the roles of:
• As a Discussion Leader
• As a Safety Value
• As a Communication Link
• As an Innovator
• As a Sounding Board
• As a Protector
• As a Fail-Safe Device
• As a Stimulator
• As an Adviser
• As a Face Saver
• As a Promoter of Collective Bargaining
 VOLUNTARY ARBITRATION

If the two parties to the dispute fail to come to an agreement, either by themselves or
with the help of a mediator or conciliator agrees to submit the dispute to an impartial
authority, whose decision, they are ready to accept,
The essential elements in voluntary arbitration are:
• The voluntary submission of dispute to an arbitrator.
• The subsequent attendance of witness and investigations:
• The enforcement of an award may not be necessary and binding because there is no
compulsion.
• Voluntary arbitration may be specially needed for disputes arising under
agreements.
 NATIONAL ARBITRATION PROMOTION BOARD
To make voluntary arbitration more acceptable to the parties and to coordinate
efforts for its promotion the government appointed in July 1967, a National Arbitration
Promotion Board with a tripartite composition.

The functions of the board are:

• To review the position periodically
• To examine the factors inhibiting wider acceptance
• To compile and maintain up-to-date panels of suitable arbitrators
• To evolve principles, norms and procedures
• To advise parties
• To look into the cause of delay
• To specify from time to time
 COMPULSORY
ARBITRATION/ADJUDICATION
• Where trade unions are weak the method of Compulsory Arbitration
is used.
• Compulsory Arbitration is utilized generally when the parties fail to
arrive at a settlement through the voluntary methods.
• In India, Compulsory Arbitration is enforced because collective
bargaining was not used for regulating wages and other conditions of
employment.
• The objective of state intervention in the field of IR should be to do
social justice and make the weaker party equally strong to enable it
ultimately to stand on its own legs and settle its differences through
negotiations and collective bargaining.
Compulsory arbitration is one where the parties are required to
arbitrate without any willingness on their part. Any one of the parties
may apply to the appropriate governments to refer the dispute to
adjudication machinery.
Under compulsory arbitration, the parties are forced to arbitration by
the state when:
• The parties fail to arrive at a settlement by voluntary method
• National Emergency
• Economic Crisis
• Public dissatisfaction
• Industries of strategic importance
• ill balanced (Unions Weak, ill-organized and powerless)
 THREE-TIER SYSTEM OF ADJUDICATION
The Industrial Disputes Act, 1947, provides three-tier system of adjudication:
1. Labour Courts
2. Industrial Tribunals
3. National Tribunals

Labour Courts:

One or more Labour courts may be constituted by the appropriate Government

for adjudicating on industrial disputes relating to any matter specified in the
Second Schedule to the Act, and for performing such other function as may be
assigned to them
Industrial Tribunals:

The appropriate Government may appoint one or more Industrial Tribunals

for adjudication of industrial disputes relating to any matter whether specified in
the Second Schedule or the Third Schedule.

National Tribunals:

The Central Government may be notification in the official gazette, constitute

one or more National Tribunals for the adjudication of industrial disputes which
in the opinion of the Central Government involve questions of national
importance or are of such nature that industrial establishments situated in more
than one state are likely to be interested in, or affected by, such disputes.
 Managing Discipline
Disciplinary procedures in Indian industries comprise of the following
stages:
• Issuing a letter of charge to the employee calling upon him for
explanation.
• Consideration of the explanation.
• Show-cause notice.
• Holding of a full-fledged enquiry.
• Considering the enquiry proceedings and findings and making final order
of punishment.
• Follow-up.
 Process of Domestic Enquiry
• Preparing and serving the charge-sheet.
• To supervise in grave cases.
• To obtain reply to charge-sheet.
• To select enquiry officer.
• To conduct enquiry proceedings.
• To hold of enquiry in the free environment.
• To record findings.
• Submit enquiry officer’s report to the disciplinary authority.
• Decision of the disciplinary authority.
• To communicate of the order of punishment.
 Types of Punishment
The type of punishment should be commensurate with the severity of
the omission or misconduct. Different types of punishments resulting
from various types of omissions or misconduct are as follows:
• Oral Warnings
• Written warnings
• Loss of privileges and fines
• Punitive suspension
• Withholding of increments
• Demotions
• Termination (Discharge and Dismissal)
 Principles of Effective Discipline
As a personnel manager should be:
• Have interest in the welfare of each employee.
• View discipline as a corrective measure
• Not take disciplinary action unless it is a must
• Not administer discipline on routine basis
• Have all the facts and circumstances
• Give a fair chance to the worker to defend himself
• Discover the employee’s mind
• Maintain consistency in disciplinary actions
• Admit his mistake willingly
• Resume normal attitude and behavior towards the employee
• Have the audit over the entire action and situation to correct the employee.