it is the critical analysis of Industrial dispute act

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MATS LAW SCHOOL
A PROJECT REPORT ON:
“INDUSTRIAL DISPUTE ACT, 1947 AND ITS AMENDMENTS”
SUBJECT: LABOUR LAW-II (SOCIAL SECURITY LEGISLATION)
DATE:……………………
UNDER THE GUIDANCE OF-
MR. PANKAJ UMBARKAR
ASST. PROFESSOR, MATS LAW SCHOOL
SUBMITTED BY-
DIVYANSH SHARMA
MU13BBALLB09
MATS LAW SCHOOL, MATS UNIVERSITY
RAIPUR, CHHATTISGARH
STREAM: BBA.LLB (HONS.)
8TH
SEMESTER 4TH
YEAR

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ACKNOWLEDGEMENT
I feel highly elated to work on this dynamic and highly important topic that is
“INDUSTRIAL DISPUTE ACT, 1947 AND ITS AMENDMENTS” This topic instantly drew
my attention and attracted me to research on it.
I am fortunate to be provided with an opportunity to write my paper under the kind
supervision of Mr. Pankaj Umbarkar (Asst. Prof., MATS Law School) and I am thankful
to her for providing me with the appropriate guidance while writing the paper.
This paper would not have been possible without her valuable inputs, honest remarks
and earnest effort to guide me throughout the drafting of the paper. I would like to extend my
sincere thank to her for giving me her valuable time to view my research from her busy
schedule.
I am highly indebted to the library staff to help me find the relevant books and
journals, and other officials and office staffs, who have also extended their help whenever
needed.
I would like to extend my sincere thanks to my friends and for their review and honest
remarks.
So, I hope I have tried my level best to bring in new ideas and thoughts regarding the
basics of this topic. Not to forget my deep sense of regard and gratitude to my faculty adviser,
Mr. Pankaj Umbarkar who played the role of a protagonist. Last but not the least; I thank
all the members of the MATS Law School and all others who have helped me in making this
project a success.

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TABLE OF CONTENTS
CHAPTERS- PAGE NO.
Chapter-1 Introduction 4 - 8
Chapter-2 International labour standards 9
Chapter-3 Dispute Resolution in the Indian Context 10 - 13
Chapter-4 Procedure for Settlement of Industrial Disputes 14 - 15
Chapter-5 Settlement Machinery of Industrial Disputes 16 - 21
Chapter-6 Industrial Dispute Cases 22 - 25
Chapter-7 Amendments in Industrial Dispute Act 26 - 27
Chapter-8 Conclusion 28

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CHAPTER-1
INTRODUCTION
An Act to make provision for the investigation and settlement of industrial disputes, and for
certain other purposes.
Citation Act No. 14 of 1947
Enacted by Parliament of India
Date enacted 11 March 1947
Date assented to 11 March 1947
Date commenced 1 April 1947
The objective of the Industrial Disputes Act is to secure industrial peace and harmony by
providing machinery and procedure for the investigation and settlement of industrial disputes
by negotiations.
Various studies indicate that Indian labour laws are highly protective of labour, and labour
markets are relatively inflexible. These laws apply only to the organized sector.
Consequently, these laws have restricted labour mobility, have led to capital-intensive
methods in the organised sector and adversely affected the sector’s long-run demand for
labour. Labour being a subject in the concurrent list, State-level labour regulations are also an
important determinant of industrial performance. Evidence suggests that States, which have
enacted more pro-worker regulations, have lost out on industrial production in general; the
problem of industrial dispute is common to almost all the developed and developing countries

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of the world. Industrialization has tended to create a hiatus between management and
workers, owing to the absence of workers ownership over means of production this gap has
led to industrial friction and conflicts, which ultimately cause industrial disputes. Conflict
resolution is an essential part of any well-functioning labour market and industrial relations
system. This article highlights the legal and practical aspects of industrial dispute resolution
in India. Presence of a powerful collective bargaining machinery and proactive
communication between the management and the unions not only minimizes the grievances
but also promotes healthy industrial relations.
The Industrial Disputes Act (IDA) of 1947. Particular attention has been paid to its Chapter
V-B, introduced by an amendment in 1976, which required firms employing 300 or more
workers to obtain government permission for layoffs, retrenchments and closures. A further
amendment in 1982 (which took effect in 1984) expanded its ambit by reducing the threshold
to 100 workers. It is argued that since permission is difficult to obtain, employers are
reluctant to hire workers whom they cannot easily get rid of. Job security laws thus protect a
tiny minority of workers in the organised sector and prevent the expansion of industrial
employment that could benefit the mass of workers outside. It is also argued that the
restriction on retrenchment has adversely affected workplace discipline, while the threshold
set at 100 has discouraged factories from expanding to economic scales of production,
thereby harming productivity. Several other sections of the IDA allegedly have similar
effects, because they increase workers’ bargaining strength and thereby raise labour costs
either directly through wages or indirectly by inhibiting work reorganization in response to
changes in demand and technology. The Act also lies down:
1. The provision for payment of compensation to the workman on account of closure or
lay off or retrenchment.
2. The procedure for prior permission of appropriate Government for laying off or
retrenching the workers or closing down industrial establishments
3. Unfair labour practices on part of an employer or a trade union or workers.

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Applicability
The Industrial Disputes Act extends to whole of India except Jammu and Kashmir and
applies to every industrial establishment carrying on any business, trade, manufacture or
distribution of goods and services irrespective of the number of workmen employed therein.
Every person employed in an establishment for hire or reward including contract labour,
apprentices and part time employees to do any manual, clerical, skilled, unskilled, technical,
operational or supervisory work, is covered by the Act. This Act though does not apply to
persons mainly in managerial or administrative capacity, persons engaged in a supervisory
capacity and drawing > 1600 P.M or executing managerial functions and persons subject to
Army Act, Air Force and Navy Act or those in police service or officer or employee of a
prison.
Authorities under this Act
Works Committee: Bipartite forum having representatives from employer & workmen side
in equal number ranging from 12 to 20 in total.
Conciliation Officer: The appropriate Govt. may appoint Conciliation Officers charged with
the duty of mediating in and promoting the settlement of industrial disputes.
Board of conciliation: The appropriate Govt. by a notification in official Gazette constitutes
a Board of Conciliation for promoting the settlement of an industrial dispute. A board should
consist of a chairman and two or four other members, as the appropriate Govt. thinks fit.
Labour Court: The appropriate Govt. may constitute one or more labour courts for the
adjudication of industrial dispute. A labour court shall consist of one person only with
necessary judicial qualification, to be appointed by the appropriate Government.
Tribunals: The appropriate Govt. may constitute one or more Industrial Tribunals for the
adjudication of industrial dispute relating to any matter, whether specified, in the second or
third schedule and for performing such other function as may be assigned to them.
Arbitrator: Voluntary reference of dispute to arbitrator for adjudication under an agreement.
Publication of arbitration agreement in official gazette is mandatory

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WHAT IS AN INDUSTRIAL DISPUTE?
U/S- 2(k) of the Industrial Disputes Act, 1947 defines an 'industrial dispute' as any dispute or
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 and conditions of employment of any person. An 'industrial dispute'
must necessarily be a dispute in an industry.
REFERENCE OF DISPUTE FOR ADJUDICATION
If a dispute is not settled by negotiations or conciliation and the parties are not interested for
voluntary arbitration, the government may at its discretion or on an application made by the
parties to the dispute representing the majority, separately or jointly, refer the dispute to the
Labour Court or Industrial tribunal for adjudication as per Section - 10(c)/10(d) as the case
may be. An order of reference shall specify the period within which the award is to be
submitted to the Government. The award received from the Labour Court / Tribunal shall
then be published by the government in the Official Gazette as stipulated under Section
17(1) and will come into force on expiry of 30 days from the date of publication. The Award
shall be binding on both the employer and employees. The award of the Labour Court or
Tribunal shall be final and not applicable. However a writ petition before the High Court and
thereafter an appeal before the Supreme Court can be filed.
The Labour Commissioner directly deals with disposing applications received from the
management of industrial establishments seeking permission for closure and for lay-off and
retrenchment of workers.
CLOSURE
An employer who intends to close down an Industrial undertaking wherein 50 workmen or
more but less than 100 are employed or were employed during the preceding 12 months has
to serve a notice to the Government in "Form Q" at least 60 days before the date of intended
closure stating the reasons for the proposed closure as laid down U/S- 25 FFA of the
Industrial Disputes Act, 1947.
In respect of an Industrial undertaking employing 100 or more workmen on an average in the
preceding 12 months, the employer has to obtain prior approval of the Government at least 90
days before the date of intended closure by giving an application in Form QA to Secretary to
Government (Labour) as stipulated U/S- 25(O) (1) of the Industrial Disputes Act, 1947. A

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copy of the application shall be served simultaneously on the representatives of the workmen
also.
The Government shall grant such approval, if it is satisfied with regard to the 'genuineness
and adequacy of the reasons' stated for closure, the interests of the general public and all
other relevant factors. The Government will communicate the Order within 60- days from the
date of application for closure by the employer.
Constitutional Provisions
In the Constitution of India from 1950, articles 14-16, 19(1)(c), 23-24, 38, and 41-43A
directly concern labour rights. Article 14 states everyone should be equal before the law,
article 15 specifically says the state should not discriminate against citizens, and article 16
extends a right of “equality of opportunity” for employment or appointment under the state.
Article 19(1)(c) gives everyone a specific right “to form associations or unions”. Article 23
prohibits all trafficking and forced labour, while article 24 prohibits child labour under 14
years old in a factory, mine or “any other hazardous employment”. Articles 38-39, and 41-
43A, however, like all rights listed in Part IV of the Constitution are not enforceable by
courts, rather than creating an inspirational “duty of the State to apply these principles in
making laws”. The original justification for leaving such principles unenforceable by the
courts was that democratically accountable institutions ought to be left with discretion, given
the demands they could create on the state for funding from general taxation, although such
views have since become controversial. Article 38(1) says that in general the state should
“strive to promote the welfare of the people” with a “social order in which justice, social,
economic and political, shall inform all the institutions of national life. In article 38(2) it goes
on to say the state should “minimize the inequalities in income" and based on all other
statuses. Article 41 creates a "right to work", which the National Rural Employment
Guarantee Act 2005 attempts to put into practice. Article 42 requires the state to “make
provision for securing just and human conditions of work and for maternity relief”. Article 43
says workers should have the right to a living wage and “conditions of work ensuring a
decent standard of life”. Article 43A, inserted by the Forty-second Amendment of the
Constitution of India in 1976, creates a constitutional right to codetermination by requiring
the state to legislate to “secure the participation of workers in the management of
undertakings”.

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CHAPTER-2
International labour standards
The main ILO instrument dealing with dispute prevention and settlement is the Voluntary
Conciliation and Arbitration Recommendation, 1951 (No. 92). It recommends that voluntary
conciliation should be made available to assist in the prevention and settlement of industrial
disputes between employers and workers. It also recommends that parties should refrain
from strikes or lockouts while conciliation or arbitration procedures are in progress, without
limiting the right to strike. Dispute resolution is further addressed under the Collective
Bargaining Convention, 1981 (No. 154), which provides that bodies and procedures for the
settlement of labour disputes. One objective of dispute resolution is in fact to promote the
mutual resolution of differences between workers and employers and, consequently, to
promote collective bargaining and the practice of bipartite negotiation. Also, 1967 (No. 130)
addresses dispute resolution at the enterprise level, including rights disputes over alleged
violations of collective agreements.
Origin and History of Industrial Disputes Resolution Mechanism
The legislative history of industrial disputes can be traced from the year 1890. The earliest
legislation in India was Bengal Regulation VII of 1819. Under this legislation the breach of
contract treated as criminal offence and this was also followed by Merchant Shipping Act (I
of 1859) and the Workmen s Breach of Contract Act, 1860. However, the development and
growth of central legislative measures to govern industrial legislation in India can be
examined and studied from employers and Workmen s Disputes Act, 1860 to the present
Industrial Dispute Act, 1947 which is being followed now. There were violent disturbances
and conflicts and death of one of the contractors took place in the year 1859 consequent to
disputes or differences between European Railway Contractors and their workmen in
Bombay Presidency relating to the failure. And delay in payment of wages. In this connection
on the request of the Bombay Government, the Government of India enacted the Employers
and Workmen s (Disputes) Act, 1860 The Trade Disputes Act, 1929 was codified for five
years as an experimental measure. The Act was amended in 1932 and was made permanent
by the Trade Disputes (Extending) Act, 1934.

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CHAPTER-3
Dispute Resolution in the Indian Context
In the Indian context, since disputes are resolved under the ID Act, the emergence of the non-
union firms would have no effect on the dispute resolution framework of conciliation,
arbitration and adjudication in some specific cases. U/S- 2A of the ID Act, where any
dispute or difference between that workman and his employer connected with, or arising out
of, such discharge, dismissal, retrenchment or termination shall be deemed to be an industrial
dispute notwithstanding that no other workman nor any union of workmen is a party to the
dispute . In fact the fairness perceptions may stem from all three kinds of justice that
constitute organizational justice; distributive justice which focuses on the fairness of
distribution of outcomes, procedural justice, which is concerned about the fairness of the
processes by which outcomes are distributed, and interactional justice that deals with the
fairness of interpersonal interactions and communications.
The objects of the Industrial Disputes Resolution Mechanism are:
This study attempts to examine some vital dimensions of the industrial disputes:
1. To examine the types of industrial disputes in India;
2. To analyze the dominating causes of Industrial disputes;
3. To provide for prevention of industrial disputes through works committees;
4. To provide for investigating the industrial disputes through Court of Inquiry;
5. To provide for the settlement of industrial disputes through a three tier system of
Labour Courts, Industrial Tribunals and National Tribunals;
6. To study the management attitude towards labour To impose prohibition on
commencement or continuation of strike and lock out during specified period;
7. To provide for payment of compensation in case of lay-off, Retrenchment and Closure;
8. To define and prohibit the unfair labour practices.
9. Offering suggestions and implications for improvement.

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Causes Consequences and Settlement of Industrial Disputes
Industrial Disputes Act provides for machinery for just and equitable settlement of Industrial
disputes by adjudication, negotiation and conciliation. It promotes measures for securing and
preserving amity and good relations between employer and workmen. It helps prevention of
illegal strikes and lockouts, and provides provision for relief to workmen in the case of layoff
and retrenchment. It promotes a base or collective bargaining also.
Causes of Industrial Disputes
The problem of industrial unrest is inherent in the industrial system. The main features of
industrial work anywhere are that (a) it involves division of labour; (b) it is a group activity;
(c) it is carried under control. Broadly speaking, the causes of industrial disputes can be
classified as: 1. Economic causes; 2. Management causes; 3. Political causes; a brief
description of each is given below:
1.Economic causes:
Economic causes include questions pertaining to wages, bonus and allowances, retrenchment
of workmen by the employer retionalisation and automation, faulty retrenchment system,
leave and so on. Low wages, irrespective of rising prices, demand for a rise in D.A.,
intolerable working and living conditions, issues pertaining to hours of work, etc. are some
other economic causes that provoked a number of strikes in India. The worker factors
responsible for industrial unrest have been: (1) Inter union rivalries, (2) Economic and
political environment that exercise adverse effects on workers attitudes, and (3) Indiscipline
amongst workers.
2. Managerial causes
Some of the causes of discontent are inherent in the industrial system, itself such as:
(1) Workers do not get any opportunity for self-expression; or
(2) Their social needs are not fulfilled; that is. the position of workers within in informal
groups formed in industrial undertakings and problems of conflict within the groups may not
be taken into account.
(3)Lack of communication on one hand, between the workers and management may turn
petty quarrels into industrial unrest and on the other; the problem of discipline in industrial

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units may assume serious dimensions. The other managerial factors responsible for industrial
unrest have been as
1. Mental inertia on the part of management and labour.
2. Management's general attitude of hatred towards their workers,
3. Lack of competence on the supervisor and other managers in human relations.
4. Management's desire to pay comparatively lesser amount of bonus or dearness
allowance against the desire of workmen.
5. Efforts to introduce modernization without prior or appropriate environment.
6. Excessive work load and inadequate welfare facilities.
7. Defective policy of lay-off.
8. Denial of the workers right to recognize union.
9. Unfair practices like victimization or termination of services without assigning any
reasons.
10. Lack of definite wage policy and stabilization of prices.
11. Lack of a proper policy of union recognition. Denial of worker's right to organize,
etc.
3. Political causes
Industrial disputes are pertly political also. Some important political strikes I organized by
industrial workers in India. Prior to independence, as early , there was a mass strike in
Mumbai against the sentence of imprisonment strikes occurred on account of actions taken
against, for participating in demonstrations, trial of political leaders, etc. After the
independence also, some strikes have occurred owing to agitations of political parties on
questions like re-organisation action of States, National Language, etc. Percentage
distribution of industrial disputes by causes as published by the Ministry of Labour.
Impact/Effect/Consequences of Industrial Disputes
Industrial law is no exception to the shifting emphasis of the modern law towards statutory
law. The Industrial Disputes Act, 1947 is therefore, the matrix, the charter, as it were, to the
industrial law. This Act and other analogous State statutes provide the machinery for
regulating the rights of the employers and employees to lock-outs and strikes and foster
investigation and settlement of industrial disputes in peaceful and harmonious atmosphere by

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providing scope for collective bargaining by negotiations and mediation and, failing that, by
voluntary arbitration or compulsory adjudication by the authorities created under these
statutes with the active participation of the unions.
The consequences of Industrial disputes are many, a brief description is given:
(1) Disturb the economic, social and political life of a country: When labour and
equipment in the whole or any part of an industry are rendered idle by strike or
lockout, national dividend suffers in a way that injures economic welfare.
(2) Decline in the demand for goods and services: Strikes reduces the demand for the
goods that other industries make, if the industry in which stoppage has occurred is
one that furnishes raw materials semi-finished goods or service largely used in the
products of other industries.
(3) Lasting loss to the workers: There is a lasting injury to the workers in the form of
work being interrupted due to the strikes which involves a loss of time which cannot
be replaced. The wages are lost and the workers can least afford to lose them
especially when the average earning of a worker is not very high.
(4) Increase in indebtedness: This increases the indebtedness among the workers and not
only the old debts become heavier but fresh debts may also be incurred.
(5) Loss of health of family members: The workers and their family members also suffer
from loss of health due to mental warrious resulting from loss of wages.
(6) Problem to consumers: Strikes and lockouts create problem to consumers also.
Articles of their requirements are not available in time, and the prices of such articles
reach high due to black marketing activities.
(7) Loss to the management/employer: When workers stop working, the plant and
machinery remain idle. The fixed express are to borne by the employer even when the
production stops. This way the employer suffers from great loss.
(8) Bad effect on labour relations: Strikes and lockouts bring bad effects on industrial
relations. With the result the workmen and the employer always be in mental tension.
Obstruction to economic growth: Strikes creates many kinds of violence which obstruct
the growth of economy.

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CHAPTER-4
Procedure for Settlement of Industrial Disputes
The Industrial Disputes Act, 1947 provides procedure for settlement of industrial disputes,
which must be followed in all public utility service , has been defined in section 2 (n) of
the Act so as to include any railway, postal, telegraph or telephone service that supplies
power, water and light to the public, any system of public conservancy or sanitation, any
section of an industrial establishment on the working of which the safety of the establishment
or the workmen employed therein depend and any industry which keeping in view the public
emergency has been declared as such by the appropriate Government .
As laid down in the Act a dispute should first go through the process of conciliation before it
could be referred to the appropriate authorities for adjudication. Where any industrial dispute
exists or is apprehended, the Conciliation Officer may or where the dispute relates to a public
utility service and a notice under Section 22 has been given shall hold conciliation
proceedings in prescribed manner.
Conciliation proceedings are deemed to have been started from the date on which a notice
issued to the parties to appear before the conciliation officer who may meet them jointly or
separately. The Conciliation Officer must submit his report to the Government within 14
days of the starting of conciliation proceedings.
During this period he tries to bring about a fair and amicable settlement between the parties
to dispute. If a settlement arrived at, the Conciliation Officers will send a report to the
Government along with a memorandum of settlement duly signed by both parties. If no
settlement is reached by the parties, the conciliation officer will submit his report to the
appropriate Government stating the reasons for which he thinks no settlement could be
arrived at as well as the facts of the case.
Action by the Government
On receipt of the report from the Conciliation Officer, the Government will come to a
decision on whether the circumstances and the facts of the case as such to justify a further
reference. The Government has to arrive at prima facie, conclusion that the nature of the
dispute justifies a further reference. If in the opinion of the Government, there is a scope of

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arriving at a settlement by further conciliation efforts, it may refer the case to the Board of
Conciliation.
Collective Bargaining as a method of Settlement of Industrial
Disputes
Collective bargaining as such is one of the most developed in Indian history since
independence, and deserves the attention of all who are concerned with the preservation of
industrial peace and implement of industrial productivity. In the laissez faire the employers
enjoyed unfettered rights to hire and fire. In United States of America the workers have the
right to organize and bargain collectively. In Japan the right to collective bargaining is
guaranteed under their Constitution.
Collective bargaining in India is of late development and therefore in view of the above
circumstances, the legislature in order to establish and maintain harmony and peace between
labour and capital came out with a legislation named The Industrial Disputes Act, 1947
which provides for the machinery for the settlement of industrial disputes. This act has two
main objects, first is the investigation and the second is the settlement. There are some
routine criticism of the adjudicatory system i.e., delay, expensive Governmental interference
in referrals and uncertain outcome. Therefore the parties to the industrial dispute are coming
closure to the idea that direct negotiations provide better approach to resolving key
deference over wages and other conditions of employment.

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CHAPTER-5
Settlement Machinery of Industrial Disputes
State intervention in industrial relations is essentially a modern development. The
concern of state in matters relating to labour is a product of its obligations to protect the
interest of industrial community, while at the same time fostering economic growth in
almost all countries. The state has assumed powers to regulate labour relations in some
degree or the other. In 1947, the Government of India passed the Industrial Disputes
Act under which machinery for the preventions and settlement of the disputes was
outlined. The Act as amended in 1956 has set up machinery for settlement of disputes.
The present system of establishing industrial peace and to settle industrial disputes is as
under:
The Works Committee
In the case of any industrial establishment in which 100 or more workmen are
employed or have been employed on any day in the preceding 12 months, the
appropriate Government may by general or special order require the employer to
constitute in the prescribed manner a Works Committee consisting of representatives of
employer and workmen engaged in the establishment. It shall be the duty of the Works
Committee
Short Comings
The scope of the Works Committee as in Sec. 3 (ii) of the Industrial Disputes Act, 1947 is
vague. Besides health, safety, welfare and human relations, the committees advise on a
number of technical matters and are kept posted with the undertaking position of trade, sale
and account sheets.

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Grievance Redressal Machinery
The Industrial Disputes (Amendment Act), 2010 had substituted a new chapter for chapter II-
B.
1. Every industrial establishment employing 20 or more workmen shall have one or more
GRC for the resolution of disputes arising out of individual grievances.
2. The GRC shall consist of equal number of members from the employer and the workmen.
3. The chairperson of the GRC shall be selected from the employer and from among the
workmen alternatively on rotation basis every year.
4. The total number of members of the GRC shall not exceed more than six. Provided that
there shall be, as far as practicable, one woman member if the GRC has two members and in
case the numbers of members are more than two, the number of women members may be
increased proportionately.
5. Notwithstanding anything contained in this section, the setting up of GRC shall not
affect the right of the workman to arise industrial dispute on the same matter under the
provisions of this Act.
6. The GRC may complete its proceedings within 30 days on receipt of a written application
by or on behalf of the aggrieved party.
7. The workman who is aggrieved of the decision of the GRC may prefer an appeal to the
employer against the decision; and the employer shall, within one month from the date of
receipt of such appeal, dispose of the same and send a copy of his decision to the workman
concerned.
8. Nothing contained in this section shall apply to the workmen for whom there is an
established GRC in the establishment concerned.

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Duties of Conciliation Officers
The Conciliation Officer is required to submit his report within 14 days of the
commencement of the conciliation proceedings, but the time for the submission of the
report may be extended further on the written request of the parties to the dispute.
Where a settlement is not reached, the appropriate Government, after considering the
report of the conciliation officer, may refer the dispute to a Board of Conciliation or
Labour Court or Industrial Tribunal or National Tribunal as the case may be.
A Conciliation Officer may take appropriate steps for inducing the parties to a fair and
amicable settlement of the dispute. If a settlement is arrived at during conciliation
proceedings, he must send a copy of the report and the memorandum of the settlement to the
Government. In case no settlement is arrived at, he is required to send to Government, full
report of the steps taken by him to resolve the dispute, and the reasons on account of which a
settlement could not be arrived at.

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Unfair Labour Practices
I. -On the part of employers and trade unions of employers
1. To interfere with, restrain from, or coerce, workmen in the exercise of their right to
organise, form, join or assist a trade union or to engage in concerted activities for the
purposes of collective bargaining or other mutual aid or protection, that is to say :-
(a) Threatening workmen with discharge or dismissal, if they join a trade union;
(b) Threatening a lock-out or closure, if a trade union is organised;
(c) Granting wage increase to workmen at crucial periods of trade union Organisations, with
a view to undermining the efforts of the trade union Organisations.
2. To dominate, interfere with or contribute support, financial or otherwise, to any trade
union, that is to say :-
(a) An employer taking an active interest in organising a trade union of his workmen; and
(b) An employer showing partiality or granting favour to one of several trade unions
attempting to organise his workmen or to its members, where such a trade union is not a
recognised trade union.
3 To establish employer sponsored trade unions of workmen.
4. To encourage or discourage membership in any trade union by discriminating against any
workman, that is to say :-
(a) Discharging or punishing a workman, because he urged other workmen to join or organise
a trade union;
(b) Discharging or dismissing a workman for taking part in any strike (not being a strike
which is deemed to be an illegal strike under this Act);
(c) Changing seniority rating of workmen because of trade union activities;
(d) Refusing to promote workmen to higher posts on account of their trade union activities;
(e) Giving unmerited promotions to certain workmen with a view to creating discord amongst
other workmen, or to undermine the strength of their trade union;

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(f) Discharging office-bearers or active members of the trade union on account of their trade
union activities.
5. To discharge or dismiss workmen-
(a) By way of victimization;
(b) Not in good faith, but in the colourable exercise of the employer’s rights;
(c) By falsely implicating a workman in a criminal case on false evidence or on concocted
evidence;
(d) For patently false reasons;
(e) On untrue or trumped up allegations of absence without leave;
(f) In utter disregard of the principles of natural justice in the conduct of domestic enquiry or
with undue haste;
(g) For misconduct of a minor or technical character, without having any regard to the nature
of the particular misconduct or the past record or service of the workman, thereby leading to
a disproportionate punishment.
6.To abolish the work of a regular nature being done by workmen, and to give such work to
contractors as a measure of breaking a strike.
7.To transfer a workman mala fide from one place to another, under the guise of following
management policy.
8. To insist upon individual workmen, who are on a legal strike to sign a good conduct bond,
as a pre-condition to allowing them to resume work.
9. To show favouritism or partiality to one set of workers regardless of merit.
10.To employ workmen as ‘badlis”, casuals or temporaries and to continue them as such for
years, with the object of depriving them of the status and privileges of permanent workmen.
11. To discharge or discriminate against any workman for filing charges or testifying against
an employer in any enquiry or proceeding relating to any industrial dispute.
12. To recruit workmen during a strike which is not an illegal strike.

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13. Failure to implement award, settlement or agreement.
14. To indulge in act, of force or violence.
15. To refuse to bargain collectively, in good faith with the recognised trade unions.
16. Proposing or continuing a lock-out deemed to be illegal under this Act.
II.-On the part of workmen and trade unions of workmen
1) To advise or actively support or instigate any strike deemed to be illegal under this Act.
2) To coerce workmen in the exercise of their right to self-organizations or to join a trade
union or refrain from joining any trade union, that is to say :-
(a) For a trade union or its members to picketing in such a manner that non-
striking workmen are physically debarred from entering the work places;
(b) To indulge in acts of force or violence or to hold out threats of intimidation
in connection with a strike against non-striking workmen or against
managerial staff.
3) For a recognized union to refuse to bargain collectively in good faith with the employer.
4) To indulge in coercive activities against certification of a bar-gaining representative.
5) To stage, encourage or instigate such forms of coercive actions as wilful go slow”,
squatting on the work premises after working hours or ‘gherao’ of any of the members of
the managerial or other staff.
6) To stage demonstrations at the residences of the employers or the managerial staff
members.
7) To incite or indulge in wilful damage to employer’s property connected with the industry.
8) To indulge in acts of force or violence or to hold out threats of intimidation against any
workman with a view to prevent him from attending work.

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CHAPTER-6
Industrial Dispute Relevant Cases
 In State of Bombay v. Hospital Mazdoor Sabha, the Supreme Court held the State is
carrying on an ‘undertaking’ within Sec. 2(j) when it runs a group of hospitals for purpose
of giving medical relief to the citizens and for helping to impart medical education. The
court observed as follows:
 An activity systematically or habitually undertaken for the production or distribution
of goods or for the rendering of material services to the community at large or a part
of such community with the help of employees is an ‘undertaking.
 It is the character of the activity in question which attracts the provisions of Sec. 2 (j),
who conducts the activity and whether it is conducted for profit or not, do not make a
material difference.
 In Management of Safdarjung Hospital v. Kuldip Singh, it was held that a place of
treatment of patients run as a department of the government was not an industry because
it was a part of the functions of the government. Charitable hospitals run by Government
or even private associations cannot be included in the definition of industry because they
have not embarked upon economic activities analogous to trade or business. If hospitals,
nursing home or a dispensary is run as a business in a commercial way, there may be
elements of industry.
 To raise a dispute against the employer, a workman need not be “workmen” strictly
within the meaning of the Act, but can be one in whose employment, non-employment,
terms of employment or conditions of labour, the workmen as a class have a direct or
substantial interest- Workman of Dimakuchi Tea Estate v. Management of DTE AIR
1958 SC 353.

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Industrial Dispute Cases in Bhilai Steel Plant
 Retrenchment
Retrenchment is a subject-matter of industrial dispute as per the analysis of definition
provided under Industrial Disputes Act, 1947 read along with the concerned Standing Orders.
In the case of Bajrang v. Bhilai Steel Plant in front of the Industrial Tribunal in Jabalpur
(M.P.), the management of Bhilai Steel Plant was not held liable for retrenchment of a
contractual workman.
The facts of the case may be summarized as follows:
i. Petitioner was a contractual workman employed in the Dalli Rajhara mines of
Bhilai Steel Plant appointed by the contractor M/s Commercial Transport
Company. Thus, Bhilai Steel Plant was not the actual employer but only a
principal employer.
ii. As per the rules and procedure, regular medical check-up was done of each
employee. Thereby, a proper test was done by the Medical Board.
iii. The Petitioner was declared unfit for working in the mines by virtue of his poor
vision (6/60) as the Standing Orders (Mines) read with the concerned Rules
prescribed the required eyesight of 6/12 – 6/18).
iv. As such, the petitioner’s name was removed from Form-B and his entry into the
mines was stopped. Thereafter, the petitioner was removed from employment by
the contractor.
v. Aggrieved by this, he filed a complaint against Bhilai Steel Plant for illegal
retrenchment.
The two major claims made by the petitioner were that Bhilai Steel Plant was its actual
employer as it payed his Provident Fund as mandated by the Standing Orders. Further, the
medical report of District Hospital (Durg) which declared him fit for working in the mines
was not taken into consideration before dismissing him from work. The CGIT Jabalpur took
into account all these contentions and found that, as such, the Provident Fund was payed by
the contractor who was the actual employer and not BSP. Furthermore, the report of District
Hospital was not acceptable as per the Rules. Moreover, Rule 29(j) of the Mines Act, 1952
allows provision for appeal to Medical Board for re-examination within 30 days. No such

24. P a g e | 24
appeal had been filed; therefore, the medical certificate of District Hospital was not
acceptable.
Hence, the Tribunal was of the opinion that Bhilai Steel Plant was not liable for illegal
retrenchment as claimed by the petitioner.
 Penalty on grounds of misconduct (as per the governing Standing Orders)
Application and interpretation of the Standing Orders is one of the most common grounds of
dispute/ difference between employers and workmen. An instance of such a dispute is seen in
the case of P.K. Trivedi v. Bhilai Steel Plant.
In the instant case, the facts may be stated as:
i. The Petitioner was an employee in the Nandini Mines of the Bhilai Steel Plant and
the President of a Trade Union, CSSS, representing the workers in the mine.
ii. The Petitioner was charged with several misconducts as per the Standing Orders
(Mines) such as stoppage of work, inciting the co-workers to strike, holding
meetings within the Mines without authorization, etc.
iii. A departmental enquiry was held against the delinquent employee and as many as
5 charges out of the alleged 7 charges were affirmed and thereby he was held
liable for the misconduct.
iv. As a result of this, he was penalized with demotion of two grades to S-6 with
cumulative effect.
v. Aggrieved by the order of the management, the union referred the dispute to the
Industrial Tribunal.
The Petitioner further contended that being the President of the Trade Union he was voicing
against the current conditions of work as well as the salary being given. But the management
didn’t heed to their demands, on the other hand, he was being targeted unjustly. Also, the
misconducts listed in the charge-sheet against him and the penalty so imposed was not as per
the Standing Orders.
The management put forth its witnesses and pleaded that his conduct called for dismissal but
the management took lenient view considering his age and penalized him with demotion of 2
grades to S-6 with cumulative effect.

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However, the Tribunal decided in favour of the departmental enquiry held against the
Petitioner. Taking into consideration the testimony of the officer in-charge of the mines as
well as other witnesses, 5 out of the 7 charges against the Petitioner were affirmed. The
Tribunal, further, stated that the penalty on grounds of misconduct was according to Section-
29 of the Standing Orders (Mines).
Hence, the Tribunal upheld the penalty imposed by the management upon its departmental
enquiry and the penalty was allowed as per Rules.

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CHAPTER-7
Amendments in Industrial Dispute Act
S.No Section Pre-amended position Post-amended position
1 Sec.2(a)(i) The scope of appropriate
Government so far as central
Government is concerned was
restricted to only those
enumerated in sub-clause(i) of
clause(a) of Sec. 2
Now this scope has been expanded
to include companies — (i)In which
not less than 51% of the paid up
share capital is held by Central
Government or any corporation
(excluding those mentioned in sub-
clause
(i) set-up by Central law or held by
central public sector undertakings or
by subsidiaries of principal
undertakings owned by or controlled
by the Central Government.
(ii) Another important amendment
made to clause (a) of Sec.2 is to
define appropriate government with
regard to disputes between contractor
and the contract labour. It now
depends up on the question whether
the industrial establishment which
employs the contract labour in
which such dispute arises, falls under
the control of Central Government or
State Government. If it falls under
the control of Central Govt., central
govt. will be the appropriate
government otherwise, the State
Govt.
2 Sec.2(s) Supervisors drawing wages not
exceeding Rs.1600/ p.m are
coming within the definition of
workmen.
Now, Supervisors drawing wages not
exceeding Rs.10000/-p.m are coming
within the definition of workmen.

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3 Sec.2A Under present provision, an
individual dispute raised a
workman who is retrenched or
dismissed can be adjudicated
by the Labour Court/Industrial
Tribunal only when it is
referred by the Government on
recipt of report from
Conciliation Officer.
After amendment, a new sub-
sections (2) & (3) have been added
which enable the individual
workman who is retrenched or
dismissed and who raises the dispute
before conciliation officer, can now
directly make an application to the
Labour Court/industrial Tribunal for
adjudication of his dispute after a
lapse of 45 days from the date of
making an application to the
conciliation officer.
(3) The application referred to in
sub-section (2) shall be made to the
Labour Court or Tribunal before the
expiry of three years from the date of
discharge, dismissal, retrenchment or
otherwise termination of service as
specified in sub-section (1).”.
4 Chapter
IIB-
Sec.9(C)
The Present Sec. 9(C) does not
precisely give the constitution
of the grievance redressal
mechanism and the procedure.
This section has been
constituted by Sec.9(C).
The new Section 9(C) provides –
i).Composition of the Grievance
Redressal Committee.
ii).Fixes a thirty day time limit for
redressal of the grievance.
iii).Provides for appeal to the
employer by the workman aggrieved
by the decision of the committee.
5 Sec.11 The present section does not
refer to the manner of
execution of awards made by
Labour Court/ Industrial
Tribunal.
New subsections (9) &(10) have
been added to Section 11 where by
the Labour Court or Industrial
Tribunal shall transmit any award or
order or settlement arrived before it
to a civil court which will execute
the same as if it were a decree passed
by it.

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CHAPTER-8
Conclusion
The Industrial Disputes Act 1947 is the most elaborative part of legislation that governs the
formation and conduct of industrial affairs. The Act confers a variety of powers on the
Central Government and the Industrial Law board to monitor, regulates and controls the
affairs of the Industries. The Industrial Disputes Act secures industrial peace and harmony by
providing machinery and procedure for the investigation and settlement of industrial disputes
by negotiations. All the Business and Industrial laws which has been constituted are for the
protection of rights of employees solving disputed in harmonized way.
Various studies indicate that Indian labour laws are highly protective of labour, and labour
markets are relatively inflexible. These laws apply only to the organized sector.
Consequently, these laws have restricted labour mobility, have led to capital-intensive
methods in the organized sector and adversely affected the sector’s long-run demand for
labour. Labour being a subject in the concurrent list, State-level labour regulations are also an
important determinant of industrial performance but still there are some weaknesses of Indian
labor legislation. First, the legislation allows a multiplicity of unions thereby which creates a
intense inter-union rivalry that generates a large number of industrial disputes. Second, the
dispute resolution machinery has increasingly failed to bring about timely agreements and
reduce the number of workdays lost due to work stoppages. Finally, there seems to be a need
to encourage parties to use collective bargaining, rather than rely on third party dispute
resolution.