Industrial dispute, it's mechanism and methods of resolution of industrial dispute

1. N A M E : M A L L I K A R J U N V E L I P
C L A S S : T . Y . B . A . L L . B
R O L L . N O : 2 1 0 6 0 5 6
S U B J E C T : L A B O U R L A W

2. I N D U S T R I A L D I S P U T E A
C O N C E P T U A L A N A L Y S I S
W I T H R E L E V A N T C A S E
L A W S

3. I N T R O D U C T I O N
• Industrialization in a country has always contributed to employment, contribution to national income, per capita
income, exports and economic development on one side and industrial disputes on the other. It has always been the
case of mixed blessing. The conflict of interest between management and labour is what leads to industrial disputes.
The management has a goal of profit maximization and on the other hand the workers expect rise in income, security
of job, protection o f their skills, improvement in their status and in the working conditions. Those who control the
factors of production require strict administration, closer supervision, and maintenance of strict discipline and
implementation o f rules, code of conduct and code of discipline. Whereas the workers demand a share in capital,
voice in management, freedom of expression, participation in management and dignity of employees. So the people
that control the factors of production and people that produce always have different or conflicting interest which gives
birth to industrial disputes.

4. D E F I N I T I O N O F
I N D U S T R I A L
D I S P U T E
• According to the Industrial Dispute Act, 1947.
Section 2 (K) “Industrial Disputes mean 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 terms of employment or with the
conditions of labour of any person”.

5. C A S E L A W S
Case law:Dimakuchi Tea Estate’s workman v/s Manager of Dimakuch Tea Estate AIR 19598It
was held that the industrial disputes need not to be related to any workmen. The term any other
person used in the definition shows that it could be any person whose interest is vested in term of
employment and condition of labour.
Case law:Tate Chemical v/s workmen 1978 SCIt has been said that industrial disputes does not
requires that it must be limited to the union representative collectively of majority of employer and
workmen but union could be which shall not be represented because the definition of industrial
dispute provides that it is sufficient to be dispute between employee and workmen.
Case law:Sarvashramik Sangh v/s Indian Hume Pipe company ltd. 1993It is held by the court
that industrial dispute is required to related to the condition of employment. Such condition may be
related to the salary, allowance, bonus, illegal termination of service and lock-out etc

6. C A U S E S O F
I N D U S T R I A L
D I S P U T E
• Industrial disputes are a common feature in all industrialized
economies, regardless of their capitalist, socialist, or mixed
economies. They arise from economic, political, social, or socio-
economic backgrounds, with employers and employees being
responsible for various factors. Common causes include wages,
allowances, personnel policies, retrenchment, layoffs, bonuses,
discipline, violence, union rivalry, non-implementation of awards,
demands, workload, work standards, surplus labor, changing
manufacturing processes, violation of rules, shift working, political
motives, closures, ineffective communication, refusal to recognize
unions, authoritarian or autocratic management, and non-
implementation of labor law.

7. M A C H I N E R Y F O R S E T T L E M E N T
I N D U S T R I A L D I S P U T E
• The Industrial Disputes Act, 1947 provides an elaborate
and efficient machinery for the peaceful and amicable
settlement of the industrial disputes. They include:
1. Works Committees (Sec 3)
2. Conciliation Officers (Sec 4)
3. Board o f Conciliation (Sec5)
4. Courts o f Enquiry (Sec6)
5. Labour Courts (Sec 7)
6. Tribunals (Sec 7A)
7. National Tribunals (Sec 7B)

8. 1) Works committee:This committee represents of workers and employers. Under
the Industrial Disputes Act 1947, works committees exist in industrial establishments
in which one hundred or more workmen are employed during the previous year. It is
the duty of the Works Committee to promote measures for securing and preserving
amity and good relations between the employers and workers. It also deals with
certain matters viz. Condition of work, amenities, safety and accident prevention,
educational and recreational facilities.
2) Conciliation officer:Conciliation Officers are appointed by the
government under the Industrial Disputes Act 1947.
The conciliation officer’s duties include negotiating a fair and amicable
dispute settlement, holding conciliation proceedings in public utility service,
sending a report to the government if a settlement is reached, and providing
a report within 14 days of the conciliation proceedings’ commencement.
3) Board of Conciliation:The government can also appoint a Board of Conciliation for
promoting settlement of Industrial Disputes. The chairman of the board is an independent
person and other members (may be two or four) are to be equally represented by the parties to
the disputes.The board’s duties involve investigating disputes and promoting fair and amicable
settlements by investigating merits and assisting parties in reaching a resolution. They must
send a report to the government within two months of a dispute’s redressal.

9. 4) Court of Enquiry:The government may appoint a court of enquiry for enquiring into any
industrial dispute. A court may consist of one person or more than one person in and in that case
one of the persons will be the chairman. The court shall be required to enquire into the matter
and submit its report to the government within a period of six months.
5) Labour courts: As per the Second Schedule of the Industrial Dispute
Act 1947 establishes Labour Courts to address various matters, including
the legality of employer orders, their application and interpretation,
dismissal of workers, withdrawal of customary privileges, illegality of
strikes or lockouts, and other matters not specified in the Third Schedule.
These courts are responsible for ensuring fair and just treatment of
workers.
7) National Tribunal:A National Tribunal is constituted by the Central
Government for Industrial Disputes involving questions of national
importance.
6) Industrial Tribunals:A Tribunal is appointed by the government for
the adjudication of Industrial Disputes.

10. M E T H O D S O F R E S O L V I N G
I N D U S T R I A L D I S P U T E S
Industrial disputes can be resolved through any of the methods of amicable
settlement such as negotiation, conciliation, mediation or arbitration. Mostly,
industrial disputes are civil in nature, which can be compromised between the
parties to restore peace and harmony in the industrial premises.
1) Conciliation
Conciliation is a method of resolving disputes between the
management and the workmen through an independent and neutral
third party known as a conciliator. A conciliator brings both parties
together to discuss and negotiate their issues peacefully. The main
aim of this process is to alleviate further differences or conflicts
between them. A conciliator helps them in negotiation and guides
them in solutions to their problems. The Industrial Dispute Act
provides for the Conciliator officers and Board of Conciliators for
amicable settlement of industrial disputes.

11. 2) Mediation
Mediation is one of the most popular methods of resolving
disputes in India. It involves negotiations between two parties
who are unable to find solutions to their issues or unable to come
to equal terms. It also involves a neutral third party known as a
mediator who plays an important role in collecting information,
assessing a situation or suggesting solutions to resolve the
dispute. Both mediation and conciliation are advisory in nature
and not binding on the parties.

12. 3) Arbitration
Arbitration is a method which parties resort to when other
methods of dispute resolution fail. Just like conciliation and
mediation, arbitration also involves the help of an impartial third
party, called an arbitrator, in resolving industrial disputes. But
unlike conciliation and mediation, arbitration is judicial in nature
and not only advisory. An arbitration award is binding in nature.
Industrial Disputes Act also provides for compulsory and
voluntary arbitration for the settlement of industrial disputes.
Parties can refer their disputes to arbitration by an agreement
between the employer and employees.

13. C O N C L U S I O N
• Good management-employee relation is necessary to keep
industrial peace and harmony alive, which is necessary for any
country’s economic growth and development. Good industrial
relation depends upon mutual understanding between the
management and the workers. When this understanding between
them disrupts, it leads to several types of industrial disputes, such
as disputes on rights, disputes on interests, disputes related to
unfair labour practices or recognition disputes. Each dispute has
solutions to it. There are many dispute resolution machinery
functioning in the country that provides expedient and amicable
settlement of disputes. But it must be understood that disputes will
always lead to conflicts and disruption in industrial peace, so it is
important to resolve these disputes as early as possible by
employing any of the methods provided by the amicable settlement
of disputes.

14. R E F E R E N C E
1. https://blog.ipleaders.in/types-of-industrial-disputes/
2. https://www.legalserviceindia.com/legal/article-943-
industrial-disputes.html
3. S.N MISRA , LABOUR & INDUSTRIAL LAWS 28TH
EDITION BY CENTRAL LAW PUBLICATION