UNIT – II
Disputes – Impact – Causes – Strikes –
Prevention – Industrial Peace –
Government Machinery – Conciliation –
Arbitration – Adjudication.
An industrial dispute may be defined as a conflict or
difference of opinion between management and workers
on the terms of employment. It is a disagreement between
an employer and employees' representative; usually a
trade union, over pay and other working conditions and
can result in industrial actions. When an industrial
dispute occurs, both the parties, that is the management
and the workmen, try to pressurize each other. The
management may resort to lockouts while the workers
may resort to strikes
Impact of Industrial disputes
The consequences of industrial disputes disturb the economic ,
social and political life of a country.
1. Industrial disputes result in a huge wastage in the
2. When such stoppage of work take place the short supply of
consumer goods result in sky-rocketing of prices, and leads to
their non availability in the open market.
3. The worker losses the wages for the strike period and in
turn it disturbs their family life.
4. The employers suffer heavy losses , not only through
stoppage of production, reduction in sales and loss of market .
5. In public /Society it creates law and order problems.
What causes industrial disputes?
Poor industrial relations
Introduction to new technology
A strike usually takes place in response to employee
grievances. Strikes became important during the
industrial revolution, when mass labour became
important in factories and mines.
In most countries, they were quickly made illegal, as
factory owners had far more political power than
Most western countries partially legalized striking in the
late 19th or early 20th centuries.
Strikes are sometimes used to put pressure on
governments to change policies. Occasionally, strikes
destabilize the rule of a particular political party.
Types of strikes
• Stay away strike:- Workmen do not come to the
workplace during work hours.
• Sit down and stay in strike:- A group of employees
interested in attaining certain objectives in particular
business take possession of property of that business,
establish themselves in plant, stop it production.
• Tools Down Strike- lay down their tools and refrain
from doing work.
• Go-Slow- Reduce the speed of work to adopt dilatory
tactics to reduce production.
• Ghero- Physcial blockade of a target by encirclement.
• Hunger strike
Prevention of strikes
• The Management should adopt well defined,
precise, clear HRM policies for good industrial
• Effective administration & Timely implementation.
• Effective two way communication system in
• Provide just & humane conditions of work, along
with suitable welfare activities.
• Should give recognition to representative union
• Should ensure joint consultation and encourage
“Industrial peace signifies the active presence of
harmonious and good industrial relations
generating amity & good will between industry-
a condition which is both the cause and effect of
Conciliation' is an alternative dispute
resolution (ADR) process whereby the
parties to a dispute (including future interest
disputes) agree to utilize the services of a
conciliator, who then meets with the parties
separately in an attempt to resolve their
Conciliation differs from arbitration in that the
conciliation process, in and of itself, has no
legal standing, and the conciliator usually has
no authority to seek evidence or call witnesses,
usually writes no decision, and makes no
Conciliation differs from mediation in that the
main goal is to conciliate, most of the time by
seeking concessions. In mediation, the
mediator tries to guide the discussion in a way
that optimizes parties needs, takes feelings into
account and reframes representations.
Role of Conciliator
• As a discussion Leader:- He reduce the
irrationality and antagonism between parties. He
guide them towards a problem solving approach. He
ensure both parties discuss their differences.
• As a safety valve:- places himself in the position of
an alternative target when he feel the parties are in
an aggressive mood.
• As a Innovator and protector
• As a Stimulator & Adviser
• As a promoter for collective bargaining
Types of conciliation
• Voluntary :- The disputes are refereed to the
conciliation by the both parties of their own free will
; they agree to have their disputes settled by an
outsider, but free to accept or not accept the
• Compulsory:- The procedure is made compulsory
by provisions requiring the parties attendance at
conciliation proceeding or empowering the
conciliation authority to compel their attendance at
such proceeding as well as by the prohibition of
strikes or lockout.
The Arbitration and Conciliation Act does not
provide definition of the word "Arbitration" but
its literally recognized meaning is that
"settlement" of differences or disputes by mutual
understanding or agreement by the parties where
the rights and liabilities of the parties are
determined in judicial point of view which are
binding to them, such settlement may be before
the arbitral tribunal but not by the court of law.
STAGES OF ARBITRATION
• The parties agree to submit their present or future differences to arbitration.
In case of any dispute, one of the parties to the contract must file a request
for Arbitration and pay the required fee to an Arbitration Institution referred
to in the agreement that provides Arbitration services.
• Often the Arbitration Institution will suggest an arbitrator or arbitrators to
which the parties must agree. (The arbitrator may be an attorney, judge, or
• After the parties have defined their dispute, there will be a hearing, often at
the arbitrator's office, where the parties present evidence and witnesses in a
fairly informal manner without the formal rules of evidence used in court
• After the evidence has been presented, the arbitrator reaches a decision and
usually later sends the parties a written reasoned opinion (an award).
• In our country, an award passed by an arbitration tribunal has the force of a
decree. Thus, it can be executed in the same manner in which a court decree
can be executed.
Advantages of arbitration
• when the subject matter of the dispute is highly technical,
arbitrators with an appropriate degree of expertise can be
• arbitration is often faster than litigation in court
• arbitration can be cheaper and more flexible for businesses
• arbitral proceedings and an arbitral award are generally secret
• because of the provisions of the New York Convention 1958,
arbitration awards are generally easier to enforce in other
nations than court judgments
• in most legal systems, there are very limited avenues for
appeal of an arbitral award
Disadvantages of arbitration
• consumers and employees usually do not know in advance that they have been forced into
mandatory binding pre-dispute arbitration by purchasing a product or taking a job
• if the arbitration is mandatory binding pre-dispute arbitration, the individual must, in advance, give
up his or her right to access the courts and have a judge or jury decide the case
• the parties need to pay for the arbitrators, which adds an additional layer of legal cost that can be
prohibitive, especially in small consumer disputes
• a recovery of attorneys' fees is usually unavailable, making it difficult or impossible for consumers
or employees to get legal representation
• the arbitrator depends on the corporation for repeat business, so there is an inherent incentive to
rule against the consumer or employee
• there are very limited avenues for appeal, which means that an erroneous decision cannot be
• although usually thought to be speedier, when there are multiple arbitrators on the panel, juggling
their schedules for hearing dates in long cases can lead to delays
• in some legal systems, arbitral awards have fewer enforcement remedies than judgments
• arbitrators are generally unable to enforce interlocutory measures against a party, making it easier
for a party to take steps to avoid enforcement of an award, such as the relocation of assets offshore
• rule of applicable law is not binding, and arbitrators not subject to overturn on appeal may be more
likely to rule according to their personal ideals
• large corporations may exert inappropriate influence in consumer disputes, pressuring arbitrators to
decide in their favor or lose future business
“Adjudication involves intervention in the
dispute by a third party appointed by the
government for the purpose of deciding the
nature of final settlement.”
Three types of disputes are
resolved through adjudication
• Disputes between private parties, such as
individuals or corporations.
• Disputes between private parties and public
• Disputes between public officials or public
Types of adjudication:-
• When both parties at their own accord agree
to refer the dispute to adjudication it is
called as Voluntary adjudication.
• On the other hand when reference is made
to adjudication by the government without
the consent of either parties to the dispute it
is known as Compulsory adjudication.
Three-tier system of
1) Labour court –adjudicate upon disputes
listed in schedule II of the act.
2) Industrial tribunal- adjudicate upon
disputes listed in schedule II / III of the act.
3) National tribunal – adjudicate upon
disputes of national importance
A labour court shall consist of
one person who
• a) Is or has been judge of
• b) Has been for a period of
not less than 3 years
• c) Has held judicial office in
India for not less than 7
The jurisdiction of labour court
extends to the adjudication of
the following disputes:-
• a) Propriety or legality of order
passed by employer.
• b) Application & Interpretation
of standing order.
• c) Discharge or dismissal of
• d) Withdrawal of any customary
• e) Illegality or otherwise of a
strike or lockout.
A industrial tribunal shall
consist of one or more
• a) Are or have been judge of
• b) Have been for a period of
not less than 3 years
• c) Have hold office of the
chairman or member of
labour appellate tribunal
• for not less than 2 years
The jurisdiction of industrial
tribunal extends to the
adjudication of the following
• a) Wages, Compensatory and
• b) Hours of work
• c) Leave with wages and holiday
• d) Rules of discipline
• e) Classification of grades
• f) Rationalization
• g) Retrenchment of workmen.
A national tribunal shall
consist of one or more
• a) Are or have been judge of
• b) Have hold office of the
chairman or member of
labour appellate tribunal for
not less than 2 years
Labor Relations Commissions are Japanese government
commissions responsible for protecting the legal rights of workers
in Japan under the Constitution of Japan and the Trade Union Act
1. The Central Labor Relations Commission is located in Tokyo.
Parties dissatisfied with a decision in one of the prefectural labor
commissions can appeal the Central Labor Commission. It also
hears cases of nationwide scale or great importance
2. Commission are appointed by the Prime Minister .
Labor Relations Commissions have two main functions:
a) Making administrative decisions (such as deciding unfair
b) Adjusting labour relations (bringing together disputing
How an industrial relations conflict
between employees/employers can be
1. Take the complaint to the union shop steward (union
representative, union steward)
2. The union shop steward will follow the grievance
procedure agreed with the employer
3. If no union, agreed employees should talk directly to
manager responsible or to the HR manager
Help from the LRC(Labour Relations
4. Agreement of both sides, the matter is taken to the
LRC which provides the following conflict resolution
Conciliation services (for group conflict resolution)
Rights Officer Service (for individual conflict
Getting Help From the LABOUR COURT
5. This is seen as the last resort for industrial
disputes. It provides an ARBITRATION SERVICE
for group conflict resolution.
What is the role of the
(EEA) employment equality
The employment agency acts to eliminate against
any discrimination between the treatment of
employees in the workplace.
• It was established in association with the
Employment Equality Act 1977.
• It is responsible for ensuring that the employment
equality legislation is obeyed by employers
• This legislation states that it is illegal to
discriminate on the grounds of religion, sex or
Main services of the EEA
1. Advises employers on their
responsibilities and employees on their
rights regarding equality issues.
2. Monitors the equality legislation to
ensure it is being properly implemented.
3. Investigates complaints concerning any
discrimination against individual
employees. This work is done by equality
Role of the (EAT) Employment
The EAT is responsible for ensuring that
firms obey the Unfair Dismissals Act 1977-
93. It investigates any disputes between
employees/employers concerning sackings,
Note: Compensation must be paid to
employees up to a maximum of two years if
a firm is guilty of unfair dismissals
How Industrial Relations are
conducted at national level
Since 1987 national agreements have been negotiated
between the social partners every three years.
The social partners include:
• Government representatives
• Employers representatives – IBEC (Irish Business
and employers confederation)
• Employees representatives – ICTU(Irish Congress
of Trade Unions )
• Farmers – IFA(International Federation on Ageing)
• Community Organisations
Examples of social partnership
• Programme for national recovery (PNR)
• Partnership 2000 which covered the years
from 1997 – 2000
• Programme for prosperity & fairness (PPF)
• Towards 2016 (partnership agreement we
are currently in)