Settlement of Disputes

1. INDUSTRIAL RELATIONS
MACHINERY

2. Industrial Relations Machinery
 These are the machinery for handling industrial
conflicts so that industrial disputes do not occur.
 If preventive machinery fails ,then the industrial
dispute settlement machinery should be activated
by the government because non settlement of
disputes will prove to be very costly to the workers
, management and the society as a whole.

4. Preventive machinery
 The preventive machinery has been set up with a view to
creating harmonious relations between labour and
management so that dispute do not arise.
 It comprises the following measures
 Schemes of workers participation
 Collective bargaining
 Grievance procedure
 Tripartite bodies
 Code of discipline
 Standing orders

5. SETTLEMENT MACHINERY
 This machinery has been provided under the
Industrial Dispute Act,1947.
 It provides a legalistic way of setting the disputes.
 This machinery comprises following organs
 Conciliation
 Court of Inquiry
 Voluntary arbitration
 Adjudication

6. Schemes of workers participation
 Schemes of workers participation It is a method
where by the workers are allowed to be consulted
and to have a say in the management of the unit.
 The important schemes of workers participation
are :
 Work Committee,
 Joint Management Council (JMC)

7. Workers participation
Works Committees
 It have to be set up in all those industrial
units which employs 100 or more persons.
Joint Management Councils (JMC)
 The JMC should consist of equal numbers of
representatives of workers and employers
(minimum 6 and maximum 12)

8. Collective Bargaining
 According to Dale Yoder, collective bargaining is the
term used to describe a situation in which essential
conditions of employment are determined by a
bargaining process under taken by representatives of a
group of workers on the one hand and of one or more
employees on the other.
 Collective bargaining not only includes negotiation,
administration and enforcement of the written contracts
between the employees and the employers ,but also
includes the process of resolving labour management
conflicts

9. Grievance Procedure
 Grievance are symptoms of conflicts in the
enterprises. so they should be handled very
promptly and efficiently
 Coping with grievances forms an important
part of a managers job.

10. Tripartite Bodies
 Industrial relations in India have been shaped largely
by principles and policies evolved through tripartite
consultative machinery at industry and national
levels.
 The aim of the consultative machinery is to bring the
parties together for mutual settlement of differences
in a spirit of cooperation and goodwill
 Indian Labour Conference (ILC) and Standing
Labour Committee(SLC) have been constituted to
suggest ways and means to prevent disputes.

11. Code Of Discipline
 Code of Discipline is a set of self imposed
mutually agreed voluntary principles of
discipline and good relations between the
management and the workers in industry.
 In India, Code of Discipline was approved by
the 16th Indian Labour Conference held in
1958.

12. Standing Orders
 To prevent the emergency of industrial strife over the
condition of employment ,one important measure is
the standing orders.
 The standing orders regulate the condition of
employment from the stage of entry to the stage of
exit from the organization.
 It also act as a code of conduct for the employees
during their working life within the organization.
 The Industrial Employment (Standing Orders) Act of
1946 provides for the framing of standing orders in all
industrial undertakings employing 100 or more
workers.

13. Conciliation
 Conciliation is a method of resolving the industrial conflict
with the help of third party , who intervenes in the dispute
situation upon a request by either or both the parties.
 Conciliation is a form of mediation - mediation is the act of
making active effort to bring two conflicting parties to
compromise.
 Conciliation is a process by which representatives of workers
and employers are brought together before a third person or a
group of persons with a view to persuade them to come to a
mutually satisfying agreement.
 The Industrial Dispute Act,1947 provides for conciliation, and
can be utilized either by appointing conciliation officers or by
constituting a board of conciliation .

14. Conciliation Officer
 The law provides for the appointment of
Conciliation Officer by the Government to
conciliate between the parties to the industrial
disputes.
 The conciliation officer is appointed by the
appropriate government by notification in the
official Gazette

15. Board Of Conciliation
 The board is tripartite and ad hoc body.
 It consist of a chairman and two or four
members.
 The chairman is an independent person and
other members are nominated in equal
numbers by the parties to the dispute.

16. Voluntary Arbitration
 Voluntary arbitration refers to getting the disputes settled
through an independent person chosen by the parties
involved mutually and voluntarily.
 Arbitration offers an opportunity for a solution of the
dispute through an arbitrator jointly appointed by the
parties.
 When conciliation proceedings fail to settle the dispute,
the conciliation officer may persuade the conflicting
parties to voluntarily refer the dispute to a third party
known as Arbitrator, appointed by the parties themselves.
 The arbitrator listens to the viewpoints of both parties
and delivers an award or judgement on the dispute.

17. Court Of Inquiry
 In case of the failure of the conciliation
proceeding to settle a dispute , the
government can appoint a Court of Inquiry
to enquire into any matter connected with
or relevant to industrial dispute.
 The court is expected to submit its report
within six months.

18. Adjudication
 Adjudication consist of settling disputes through
intervention by the third party appointed by the
government.
 Adjudication or compulsory arbitration is the
ultimate remedy for the settlement of disputes in
India.
 The law provides the adjudication to be conducted
by the
 Labour court
 Industrial tribunal
 National tribunal

19. Adjudication
Labour
Court
Industrial
Tribunals
National
Tribunals

20. Labour Court
 The labour court consists of one
independent person who is or has been a
judge of a High Court, or has been a district
judge or additional district judge for not less
than 3 years or has held any judicial office in
India for not less than 7 years.

21. Industrial Tribunal
This is also a one-man adhoc body
appointed by the Government. It has a wider
jurisdiction than the labour court.
The government concerned may appoint
two assessors to advice the presiding officer
in the proceedings.

22. National Tribunal
 This is the third one-man adjudicatory body
to be appointed by the central government to
deal with disputes of national importance or
issues which are likely to affect the industrial
establishments in more than one state.