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INDUSTRIAL DISPUTES
Dr. Kokila Saxena
Disputes mainly relate to the strife between employers and
their employees.
According to the Industrial Dispute Act,1947 sec
(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 labor of
any person.
Causes of industrial Disputes:
Causes of Industrial disputes may be grouped into
four categories :
(A) Industrial Factors
(B) Managements Attitude towards workers
(C) Government Machinery ; and
(D) Other Causes
(A)Industrial Factors :
Under this category, some of the causes of dispute may be :
(i) An industrial matter relating to
employment, work, wages, hours of work, privileges, the
rights and obligations of employees and employers, terms
and conditions of employment including matters
pertaining to :
(a) dismissal or non-employment of anyperson
(b) Registered agreement , settlement or award : and
© demarcation (establishing limits) of the functions of
an employee
(iii) An industrial matter in which both the parties are
directlyand substantially interested.
(iii) disputes arising out of
unemployment, inflation, change in the attitude of
(II) Management AttitudeTowards Labor:
(i)Management’s unwillingness to talk over any
dispute with their employees.
(i)Managements unwillingness to recognize a particular
trade union , delegating enough authority to the
representatives,etc.
(ii) unwillingness to negotiation and settlement of disputes.
(iii)Managements insistence to take care of
recruitments, promotion etc without consulting the
concerned employees
(iv)Managements unwillingness to provide services and
benefits to its employee's
(III) Government Machinery :
(a)Though there are number of enactments for promotion
of harmonious relations, it is ineffective and unsatisfactory
due to various reasons like their irrelevancy in the context of
the challenges of present industrialclimate
/culture, incapability of understanding and answering
imperatives of development, improper and inadequate
implementation by many employers.
(b)The governments conciliation machinery has settled a very
negligible number of disputes.
(IV) Other Causes :
(i) Affiliation of the trade unions with a political
party, where the latter may instigate the trade unions to
conduct strikes, lockouts , gheraos etc.
(ii)Political instability, centre- state relations,sometimes
result into industrial conflict.
(iii)Other potential factors like corruption in industry and
public life, easy money, etccan also result into industrial
disputes.
Industrial disputes are basically of two types ,i.e. Strikes and
Lockouts.
Strikes :
Strikes are a result of more fundamental
maladjustments, injustices and economic
disturbances.
Strike is a temporary cessation of work by a group of
employees in order to express grievances or to enforce a
demand concerning changes in work conditions.
Strikes are divided into three types .They are Primary strikes,
secondary strikes and other strikes.
I.Primary strikes are generally against the employer with
whom the dispute exists.They are :
(i) Stay Away Strikes: In this strike workmen stay away
from the work place.They organize
rallies, demonstrations, etc.
(ii)Stay-in or sit Down Strikes : In this strike, workmen
come to the place , they stay at the work place but they
don‘t work.
(iii)Tools Down, Pen Down Strike : Here the strikers lay
down their tools in case of factory workers , office
workers lay down their pens,
(iv)Token or Protest Strikes : It is of very short
duration and is in nature of signal for the danger
ahead. In this strike workers do not work for an
hour or a day.
(v)Lightening orWild cat strike : In this strike, the
strike is done without any prior notice or with a
shortest notice.
(vi)Go –Slow : In this strike, the workers
intentionally reduce the speed of work.
(vii)Work to rule : In this strike, the strikers undertake the
work according to rules or job description.
(viii)Picketing : It is an act of protesting by the workmen in front
of the premises of the employer.
(ix)Boycott: It aims at disrupting the normal functioning of
theenterprise.
(x)Hunger Strike : This type of strike is resorted to either by
the leaders of the union or by some workers all at a time for a
limited period or upto the period of settlement of disputes.
II Secondary Strike : Secondary strikes are against a third party.
These strikes are sympatheticstrikes.
III. Other Strikes :These strikes are in the form of general,
particular, political and bandhs.
Lockouts:
Lockout means the closing of a place of business of employment or
the suspension of work, or the refusal by the employer to continue
to employ any number of persons employed byhim.
However, termination of employment or retrenchment, and
prohibiting an employee are not lockouts.
Preventive Measures of Industrial Disputes
Labor
Welfare
Officer
Tripartite
and
Bipartite
Bodies
Standing Grievance
Orders Procedure
Collective
Bargaining
Strong
Trade
Unions
Labor Co-
Partnership and
Profit sharing
Joint Consultations
1]LaborWelfare Officer : Section 49 (1) and (2) of the Factories
Act, 1948 specifies that every factory wherein 500 or more workers
are ordinarily employed at least one welfare Officer must be
appointed, where the number of workers are in excess of 2500,the
assistant and / or additional welfare officers are required to be
appointed to assist theWelfareOfficer.
The functions of LaborWelfare Officer includes :
(I) Labor Welfare Functions :Advice and assistance in
implementing legislative and non-legislative provisions relating
to :
 Health &Safety
 Working conditions
 Recreation
 Welfare Amenities
 Workers Education
 Services like Co-operative grain shops, housing cooperatives
 Housing
 Implementation of welfareActs.
(II) Labor Administration Functions :These may cover:
 Organizational Discipline
 Safety & Medical administration
 Wage & salary administration
 Administration of Legislation
(III) Labor Relations Functions:
Administration of standingorders.
Settlement of Grievances.
Settlement of Disputes through statutory procedures.
Trade unions& union management relations
Steps to increase productivity efficiency.
2]Tripartite and Bipartite Bodies :
Industrial relations in India have been shaped largely by the
policies and practices of Tripartite and Bipartite bodies.
The purpose of consultative machinery is to bring the
partners together for mutual settlement of differences in spirit
of cooperation andgoodwill.
Bipartite consultative machinery comprises two parties i.e.
employees and employer, the important bipartite body is
works committees.
Works Committee : Works committees greatly contribute in prevention
of industrial disputes. It is represented by an equal number of
representatives of each party and the method of their appointment are
also laid down in agreements or enactments.
Objectives and Functions :
(a) Topromote industrialgoodwill.
(b)Tosecure cooperation from employers and employees.
(c)To ensurethe cooperation of private concerns. (d)To provide for a
popular agency for supervising the
management of nationalizedundertakings.
For the successful working of the works committee, the employers are
required to abstain from doing anything that is likely to hamper various
facilities to workers. The Trade unions on the committees also have to abstain
from doing things that upset the operations of the undertaking.
3] Standing Orders :Majority of the industrial disputes are related to
conditions of employment. To prevent this, Standing orders are formulated. It
was made obligatory that standing orders should govern the conditions of
employment under the Industrial Employment (Standing Orders ) Act of
1946. The Standing Orders regulate the conditions of employment from the
stage of entry to the stage of exit.
4] Grievance Procedure : Grievance generally arise from day – to-
day working relations. Grievances of the employees are
readdressed by the management. Management can prevent the
occurrence of industrial disputes by solving the individual
problems.
5] Collective Bargaining :
Collective bargaining helps for settlement of issues and
prevention of industrial disputes.It occurs when representatives
of a labor union meet management representatives to determine
employees wages and benefits, to create or revise work rules and
to resolve disputes or violations of the laborcontract.
6] StrongTrade unions :Trade union is the most suitable and
effective agency to conduct collective bargaining on behalf of the
workers. A powerful bargaining may be achieved by strong trade
unions, which enable the workforce to maintain harmonious
relations with the management.
7] Labor Co-partnership and profit sharing :Good industrial
relations can be maintained through proper partnership and profit
sharing; employer gives a portion of totalprofits to workers in
addition to their normal wages.This sort of attitude of
management would create psychological conditions favorable for
industrial peace.
8] Joint Consultation : Joint Consultation involves a continuous
relationship between labor and management and expects willingness
of management and the participation of workers in discussing
common problems of interest.This is the result of collective
bargaining relations on a stable basis when parties know each other
well and have a mutual trust.
Layoff
Layoff implies temporary removal of an employee from the
payroll of the organization due to circumstances beyond the
control of the employer. It may last for an indefinite period.
But the employee is not terminated permanently and is expected to be
called back in future. The employer employee relationship does not come to
an end but is merely suspended during the period of layoff. It is temporary
denial of employment. The purpose of layoff is to reduce the financial
burden on the organization when the human resources cannot be utilized
profitably.
Under Section 2(KKK) of the Industrial Disputes Act, 1947
layoff is defined as ―the failure, refusal or inability of an employer, on
account of shortage of coal, power or raw materials or accumulation of
stocks or breakdown of machinery or by any other reason, to give
employment to a workman whose name appears on the muster rolls of his
industrial establishment and who has not been retrenched‖.
According to Section 25(c) of the IndustrialDisputes
Act, 1947, a laid off worker is entitled to compensation equal to 50 per
cent of the basic wages and dearness allowance that would have been payable
to him had he not been laid off.
However, in order to claim this compensation, the laid off workman
must satisfy the following conditions:
a) he should not be a badli or a casual worker,
b)his name must appear on the muster rolls of the industrial establishment,
c)he must have completed not less than one year of continuous service, and
d)he must present himself for work at the appointed time during normal
working hours at least once a day.
Retrenchment
Retrenchment means permanent termination of service of an employee for economic
reasons in a going concern. The Industrial Disputes Act, 1947 defines retrenchment as the
―termination by the employer of the services of workman for any reason other than
termination of services as punishment given by way of disciplinary action, or retirement
either voluntary or reaching age of superannuation, or continued ill-health or the closure and
winding up of abusiness‖.
The Act lays down the following conditions for retrenchment.
1.The employee must be given one month‘s notice in writing indicating the reasons for
retrenchment or wages in lieu of such notice.
2. The employee must be paid compensation equal to 15 days for every
completed year of service.
3.Notice in the prescribed manner must be served on the appropriate Government
authority.
4. In the absence of any agreement to the contrary, the worker employed last
must be terminated first.
THANK YOU

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Industrial disputes ppt pdf- Dr. kokila saxena

  • 2. Disputes mainly relate to the strife between employers and their employees. According to the Industrial Dispute Act,1947 sec (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 labor of any person.
  • 3. Causes of industrial Disputes: Causes of Industrial disputes may be grouped into four categories : (A) Industrial Factors (B) Managements Attitude towards workers (C) Government Machinery ; and (D) Other Causes
  • 4. (A)Industrial Factors : Under this category, some of the causes of dispute may be : (i) An industrial matter relating to employment, work, wages, hours of work, privileges, the rights and obligations of employees and employers, terms and conditions of employment including matters pertaining to : (a) dismissal or non-employment of anyperson (b) Registered agreement , settlement or award : and
  • 5. © demarcation (establishing limits) of the functions of an employee (iii) An industrial matter in which both the parties are directlyand substantially interested. (iii) disputes arising out of unemployment, inflation, change in the attitude of (II) Management AttitudeTowards Labor: (i)Management’s unwillingness to talk over any dispute with their employees.
  • 6. (i)Managements unwillingness to recognize a particular trade union , delegating enough authority to the representatives,etc. (ii) unwillingness to negotiation and settlement of disputes. (iii)Managements insistence to take care of recruitments, promotion etc without consulting the concerned employees (iv)Managements unwillingness to provide services and benefits to its employee's
  • 7. (III) Government Machinery : (a)Though there are number of enactments for promotion of harmonious relations, it is ineffective and unsatisfactory due to various reasons like their irrelevancy in the context of the challenges of present industrialclimate /culture, incapability of understanding and answering imperatives of development, improper and inadequate implementation by many employers. (b)The governments conciliation machinery has settled a very negligible number of disputes.
  • 8. (IV) Other Causes : (i) Affiliation of the trade unions with a political party, where the latter may instigate the trade unions to conduct strikes, lockouts , gheraos etc. (ii)Political instability, centre- state relations,sometimes result into industrial conflict. (iii)Other potential factors like corruption in industry and public life, easy money, etccan also result into industrial disputes.
  • 9. Industrial disputes are basically of two types ,i.e. Strikes and Lockouts. Strikes : Strikes are a result of more fundamental maladjustments, injustices and economic disturbances. Strike is a temporary cessation of work by a group of employees in order to express grievances or to enforce a demand concerning changes in work conditions. Strikes are divided into three types .They are Primary strikes, secondary strikes and other strikes.
  • 10. I.Primary strikes are generally against the employer with whom the dispute exists.They are : (i) Stay Away Strikes: In this strike workmen stay away from the work place.They organize rallies, demonstrations, etc. (ii)Stay-in or sit Down Strikes : In this strike, workmen come to the place , they stay at the work place but they don‘t work. (iii)Tools Down, Pen Down Strike : Here the strikers lay down their tools in case of factory workers , office workers lay down their pens,
  • 11. (iv)Token or Protest Strikes : It is of very short duration and is in nature of signal for the danger ahead. In this strike workers do not work for an hour or a day. (v)Lightening orWild cat strike : In this strike, the strike is done without any prior notice or with a shortest notice. (vi)Go –Slow : In this strike, the workers intentionally reduce the speed of work.
  • 12. (vii)Work to rule : In this strike, the strikers undertake the work according to rules or job description. (viii)Picketing : It is an act of protesting by the workmen in front of the premises of the employer. (ix)Boycott: It aims at disrupting the normal functioning of theenterprise. (x)Hunger Strike : This type of strike is resorted to either by the leaders of the union or by some workers all at a time for a limited period or upto the period of settlement of disputes.
  • 13. II Secondary Strike : Secondary strikes are against a third party. These strikes are sympatheticstrikes. III. Other Strikes :These strikes are in the form of general, particular, political and bandhs. Lockouts: Lockout means the closing of a place of business of employment or the suspension of work, or the refusal by the employer to continue to employ any number of persons employed byhim. However, termination of employment or retrenchment, and prohibiting an employee are not lockouts.
  • 14. Preventive Measures of Industrial Disputes Labor Welfare Officer Tripartite and Bipartite Bodies Standing Grievance Orders Procedure Collective Bargaining Strong Trade Unions Labor Co- Partnership and Profit sharing Joint Consultations
  • 15. 1]LaborWelfare Officer : Section 49 (1) and (2) of the Factories Act, 1948 specifies that every factory wherein 500 or more workers are ordinarily employed at least one welfare Officer must be appointed, where the number of workers are in excess of 2500,the assistant and / or additional welfare officers are required to be appointed to assist theWelfareOfficer. The functions of LaborWelfare Officer includes : (I) Labor Welfare Functions :Advice and assistance in implementing legislative and non-legislative provisions relating to :
  • 16.  Health &Safety  Working conditions  Recreation  Welfare Amenities  Workers Education  Services like Co-operative grain shops, housing cooperatives  Housing  Implementation of welfareActs. (II) Labor Administration Functions :These may cover:  Organizational Discipline  Safety & Medical administration  Wage & salary administration  Administration of Legislation
  • 17. (III) Labor Relations Functions: Administration of standingorders. Settlement of Grievances. Settlement of Disputes through statutory procedures. Trade unions& union management relations Steps to increase productivity efficiency.
  • 18. 2]Tripartite and Bipartite Bodies : Industrial relations in India have been shaped largely by the policies and practices of Tripartite and Bipartite bodies. The purpose of consultative machinery is to bring the partners together for mutual settlement of differences in spirit of cooperation andgoodwill. Bipartite consultative machinery comprises two parties i.e. employees and employer, the important bipartite body is works committees.
  • 19. Works Committee : Works committees greatly contribute in prevention of industrial disputes. It is represented by an equal number of representatives of each party and the method of their appointment are also laid down in agreements or enactments. Objectives and Functions : (a) Topromote industrialgoodwill. (b)Tosecure cooperation from employers and employees. (c)To ensurethe cooperation of private concerns. (d)To provide for a popular agency for supervising the management of nationalizedundertakings.
  • 20. For the successful working of the works committee, the employers are required to abstain from doing anything that is likely to hamper various facilities to workers. The Trade unions on the committees also have to abstain from doing things that upset the operations of the undertaking. 3] Standing Orders :Majority of the industrial disputes are related to conditions of employment. To prevent this, Standing orders are formulated. It was made obligatory that standing orders should govern the conditions of employment under the Industrial Employment (Standing Orders ) Act of 1946. The Standing Orders regulate the conditions of employment from the stage of entry to the stage of exit.
  • 21. 4] Grievance Procedure : Grievance generally arise from day – to- day working relations. Grievances of the employees are readdressed by the management. Management can prevent the occurrence of industrial disputes by solving the individual problems. 5] Collective Bargaining : Collective bargaining helps for settlement of issues and prevention of industrial disputes.It occurs when representatives of a labor union meet management representatives to determine employees wages and benefits, to create or revise work rules and to resolve disputes or violations of the laborcontract.
  • 22. 6] StrongTrade unions :Trade union is the most suitable and effective agency to conduct collective bargaining on behalf of the workers. A powerful bargaining may be achieved by strong trade unions, which enable the workforce to maintain harmonious relations with the management. 7] Labor Co-partnership and profit sharing :Good industrial relations can be maintained through proper partnership and profit sharing; employer gives a portion of totalprofits to workers in addition to their normal wages.This sort of attitude of management would create psychological conditions favorable for industrial peace.
  • 23. 8] Joint Consultation : Joint Consultation involves a continuous relationship between labor and management and expects willingness of management and the participation of workers in discussing common problems of interest.This is the result of collective bargaining relations on a stable basis when parties know each other well and have a mutual trust. Layoff Layoff implies temporary removal of an employee from the payroll of the organization due to circumstances beyond the control of the employer. It may last for an indefinite period.
  • 24. But the employee is not terminated permanently and is expected to be called back in future. The employer employee relationship does not come to an end but is merely suspended during the period of layoff. It is temporary denial of employment. The purpose of layoff is to reduce the financial burden on the organization when the human resources cannot be utilized profitably. Under Section 2(KKK) of the Industrial Disputes Act, 1947 layoff is defined as ―the failure, refusal or inability of an employer, on account of shortage of coal, power or raw materials or accumulation of stocks or breakdown of machinery or by any other reason, to give employment to a workman whose name appears on the muster rolls of his industrial establishment and who has not been retrenched‖.
  • 25. According to Section 25(c) of the IndustrialDisputes Act, 1947, a laid off worker is entitled to compensation equal to 50 per cent of the basic wages and dearness allowance that would have been payable to him had he not been laid off. However, in order to claim this compensation, the laid off workman must satisfy the following conditions: a) he should not be a badli or a casual worker, b)his name must appear on the muster rolls of the industrial establishment, c)he must have completed not less than one year of continuous service, and d)he must present himself for work at the appointed time during normal working hours at least once a day.
  • 26. Retrenchment Retrenchment means permanent termination of service of an employee for economic reasons in a going concern. The Industrial Disputes Act, 1947 defines retrenchment as the ―termination by the employer of the services of workman for any reason other than termination of services as punishment given by way of disciplinary action, or retirement either voluntary or reaching age of superannuation, or continued ill-health or the closure and winding up of abusiness‖. The Act lays down the following conditions for retrenchment. 1.The employee must be given one month‘s notice in writing indicating the reasons for retrenchment or wages in lieu of such notice. 2. The employee must be paid compensation equal to 15 days for every completed year of service. 3.Notice in the prescribed manner must be served on the appropriate Government authority. 4. In the absence of any agreement to the contrary, the worker employed last must be terminated first.