MACHINERY FOR
SETTLEMENT OF
INDUSTRIAL DISPUTE
MACHINERY FOR
SETTLEMENT OF
INDUSTRIAL DISPUTES
 VOLUNTARY        STATUTORY
  METHODS          METHODS


  • Collective    • Conciliation
     Bargaining
  • Joint         •Arbitration
  Consultations
  • Standing      • Adjudication
  Orders
  • Grievance
  Procedures
  • Code Of
  Discipline
VOLUNTARY METHODS
     What is
     Collective
    Bargaining?
• It is the process of negotiation between
  firm’s and workers’ representatives for
  the purpose of establishing mutually
  agreeable conditions of employment.



• It is a technique adopted by two parties to
  reach an understanding acceptable to
  both through the process of discussion
  and negotiation.
PROCESS

     PREPARING


    BARGAINING
      ISSUES



   NEGOTIATIONS


SETTLEMENT AND
CONTRACT AGREEMENT


ADMINISTRATION OF
    AGREEMENT
• The negotiation team should consist of
  representatives of both the parties with adequate
  knowledge and skills for negotiation.
• Advance preparation by employers and employees
• Parties must examine their own situation and
  develop issues they believe will be important
•   Wage related issues

• Supplementary issues

•   Administrative issues

• Institutional issues
• It begins when each side presents its initial
  demands
• It goes for days until final agreement is reached
• It is a big relief for everyone when final
  agreement is reached
• Its success depends upon the skill and abilities of
  negotiators
•    It is a crucial stage where in union-negotiating
    team explains the agreement to members for a
    vote

•   If voted, agreement is formalized into a contract

•   Contract must be clear and precise
 Agreement must be implemented according to the
  provisions of the agreement

 Management is primarily responsible for implementation
  of contract

 It must be communicated to all affected levels
What is
    Joint
Consultation?
WORK COMMITTEES

  As per provisions of Industrial Dispute Act, 1947
  work committees have to be set up in all those units
  which employ 100 or more persons.
 They are composed of equal number of employer
  and employee representatives
 It is a consultative body
 These have responsibility of removing the causes of
  friction between labor and management in day to day
  functioning.
 Issues like wages, benefits, bonus, hours of
  work, terms and conditions of
  employment, training, transfers,etc come under the
  purview of works committee



 TISCO was the first to create a works committee in
  1920
 530 committees were operational at the end of 1987
JOINT MANAGEMENT COUNCILS
         (JMCs)
 •  In Industrial Policy Resolution,1956, the need for
   councils was emphasized
 • Management supplies the facts regarding the unit
   and council discusses various matters across the
   table and then make recommendations
 • JMCs should have equal number of workers and
   employers representatives
 • They look after three areas of: information
   sharing, consultation and administrative matters
   relating to welfare, safety, training, holidays
• The idea was implemented in over 150 units.

• At present 80 are operating in public sector units like
  Air India, Hindustan Insecticides and in large
  number of private sector units like TISCO, Arvind
  Mills.
STANDING
  ORDERS
 These are the rules and regulations governing the
  conditions of employment of workers.

 They specify the duties and responsibilities of both
  employer and employees

 As per provisions of Industrial Employment
  Act,1946,Standing orders shall be framed in all
  undertakings employing 100 or more workers

 Standing orders have to framed in consultation with
  employees and submitted to certifying officer.
 Matters
    Classification of workers
     Hours of work, holidays, wage rate
     Shift working
      Attendance and late coming
      Leave rules and disciplinary action
 Certified copies must be displayed inside the
  undertaking
 It is binding on both employer and employee
CODE
    OF
DISCIPLINE
 It aimed at preventing disputes by providing for voluntary
  and mutual settlement of disputes.
 Principles regulating the conduct of the parties, as
  provided for in the code, may be as:
     Restrains both employer and employee from
     unilateral action.
    Parties shall not indulge in strikes, lockouts
    without notice
   Parties shall not resort to coercion or adapt
   unfair practices
 At present the code has been accepted by about 200
  individual employers and about 170 trade
            unions
        LIC, SBI and RBI have accepted it
GRIEVANCE
PROCEDURE
 GRIEVANCE means employee dissatisfaction or
  feeling of personal injustice relating to his employment
  relation
 It has to be redressed properly
 It should not be suppressed
 Grievances arise :
   Violation of terms and conditions of employment
   Violation of law
   Violation of rules
   Change in working conditions or past company
   practices
   Violation of health and safety standards
GRIEVANCE REDRESSAL
PROCEDURES
  OPEN DOOR POLICY
   Aggrieved party is free to meet top executive of
   organization and get his grievance redressed.

  STEP LADDER POLICY
    Aggrieved employee has to follow a step by step
   approach
STEP LADDER POLICY
STATUTORY MEASURES

   What is
CONCILIATION?
 It is a process by which representatives of workers and
  employers are brought together before a third person or
  group of persons to persuade them to come on a
  mutually satisfying agreement.
 Conciliator tries to bridge the gap between the parties
 He tries to clear the fog surrounding the issue
 He persuades parties to take a fresh look at whole
  issue and explore the possibility of reaching a
  consensus
 He only advances a possible line of solution for
  consideration by disputants.
What is
ARBITRATION?
 Voluntarily referring the dispute to third party called
  ARBITRATOR
 He listens to the views of both the parties and
  delivers a judgment on the dispute
 He submits his judgment to government and
  government publishes it within 30 days of
  submission
 It is binding on both the parties
What is
ADJUDICATION?
 It is compulsory arbitration and is the ultimate remedy
 to resolve dispute
 Settlement of dispute through intervention of third
 party appointed by government
 As per Industrial Dispute Act, 1947
   Three –tier Adjudication machinery
 Labour Court
 Industrial Tribunal
 National Tribunal
 Labour Court
   It deals with disputes relating to:
       Legality of order passed by employer
       Application of standing order
       Grant of relief to wrongly dismissed person
       Illegality or otherwise of strike or lock out
 Industrial Tribunal
    It has wider jurisdiction than labour court and deals
 with following matters:
            Wages including the period and mode of
                   payment
                     Compensatory and other allowances
                       Leave with wages and holidays
                        Shift working
Bonus, profit sharing, provident fund and gratuity
     Rules of discipline
     Retrenchment
 National Tribunal
    Appointed by Central government to deal with
 disputes of national importance or issues likely to
 affect industrial establishments in more than one
 state
QANTAS INDUSTRIAL
DISPUTE
Settlement of dispute final

Settlement of dispute final

  • 1.
  • 2.
    MACHINERY FOR SETTLEMENT OF INDUSTRIALDISPUTES VOLUNTARY STATUTORY METHODS METHODS • Collective • Conciliation Bargaining • Joint •Arbitration Consultations • Standing • Adjudication Orders • Grievance Procedures • Code Of Discipline
  • 3.
    VOLUNTARY METHODS What is Collective Bargaining?
  • 4.
    • It isthe process of negotiation between firm’s and workers’ representatives for the purpose of establishing mutually agreeable conditions of employment. • It is a technique adopted by two parties to reach an understanding acceptable to both through the process of discussion and negotiation.
  • 5.
    PROCESS PREPARING BARGAINING ISSUES NEGOTIATIONS SETTLEMENT AND CONTRACT AGREEMENT ADMINISTRATION OF AGREEMENT
  • 6.
    • The negotiationteam should consist of representatives of both the parties with adequate knowledge and skills for negotiation. • Advance preparation by employers and employees • Parties must examine their own situation and develop issues they believe will be important
  • 7.
    Wage related issues • Supplementary issues • Administrative issues • Institutional issues
  • 8.
    • It beginswhen each side presents its initial demands • It goes for days until final agreement is reached • It is a big relief for everyone when final agreement is reached • Its success depends upon the skill and abilities of negotiators
  • 9.
    It is a crucial stage where in union-negotiating team explains the agreement to members for a vote • If voted, agreement is formalized into a contract • Contract must be clear and precise
  • 10.
     Agreement mustbe implemented according to the provisions of the agreement  Management is primarily responsible for implementation of contract  It must be communicated to all affected levels
  • 11.
    What is Joint Consultation?
  • 12.
    WORK COMMITTEES  As per provisions of Industrial Dispute Act, 1947 work committees have to be set up in all those units which employ 100 or more persons.  They are composed of equal number of employer and employee representatives  It is a consultative body  These have responsibility of removing the causes of friction between labor and management in day to day functioning.
  • 13.
     Issues likewages, benefits, bonus, hours of work, terms and conditions of employment, training, transfers,etc come under the purview of works committee  TISCO was the first to create a works committee in 1920  530 committees were operational at the end of 1987
  • 14.
    JOINT MANAGEMENT COUNCILS (JMCs) • In Industrial Policy Resolution,1956, the need for councils was emphasized • Management supplies the facts regarding the unit and council discusses various matters across the table and then make recommendations • JMCs should have equal number of workers and employers representatives • They look after three areas of: information sharing, consultation and administrative matters relating to welfare, safety, training, holidays
  • 15.
    • The ideawas implemented in over 150 units. • At present 80 are operating in public sector units like Air India, Hindustan Insecticides and in large number of private sector units like TISCO, Arvind Mills.
  • 16.
  • 17.
     These arethe rules and regulations governing the conditions of employment of workers.  They specify the duties and responsibilities of both employer and employees  As per provisions of Industrial Employment Act,1946,Standing orders shall be framed in all undertakings employing 100 or more workers  Standing orders have to framed in consultation with employees and submitted to certifying officer.
  • 18.
     Matters Classification of workers Hours of work, holidays, wage rate Shift working Attendance and late coming Leave rules and disciplinary action  Certified copies must be displayed inside the undertaking  It is binding on both employer and employee
  • 19.
    CODE OF DISCIPLINE
  • 20.
     It aimedat preventing disputes by providing for voluntary and mutual settlement of disputes.  Principles regulating the conduct of the parties, as provided for in the code, may be as: Restrains both employer and employee from unilateral action. Parties shall not indulge in strikes, lockouts without notice Parties shall not resort to coercion or adapt unfair practices  At present the code has been accepted by about 200 individual employers and about 170 trade unions  LIC, SBI and RBI have accepted it
  • 21.
  • 22.
     GRIEVANCE meansemployee dissatisfaction or feeling of personal injustice relating to his employment relation  It has to be redressed properly  It should not be suppressed  Grievances arise : Violation of terms and conditions of employment Violation of law Violation of rules Change in working conditions or past company practices Violation of health and safety standards
  • 23.
    GRIEVANCE REDRESSAL PROCEDURES OPEN DOOR POLICY Aggrieved party is free to meet top executive of organization and get his grievance redressed.  STEP LADDER POLICY Aggrieved employee has to follow a step by step approach
  • 24.
  • 25.
    STATUTORY MEASURES What is CONCILIATION?
  • 26.
     It isa process by which representatives of workers and employers are brought together before a third person or group of persons to persuade them to come on a mutually satisfying agreement.  Conciliator tries to bridge the gap between the parties  He tries to clear the fog surrounding the issue  He persuades parties to take a fresh look at whole issue and explore the possibility of reaching a consensus  He only advances a possible line of solution for consideration by disputants.
  • 27.
  • 28.
     Voluntarily referringthe dispute to third party called ARBITRATOR  He listens to the views of both the parties and delivers a judgment on the dispute  He submits his judgment to government and government publishes it within 30 days of submission  It is binding on both the parties
  • 29.
  • 30.
     It iscompulsory arbitration and is the ultimate remedy to resolve dispute  Settlement of dispute through intervention of third party appointed by government  As per Industrial Dispute Act, 1947 Three –tier Adjudication machinery  Labour Court  Industrial Tribunal  National Tribunal
  • 31.
     Labour Court It deals with disputes relating to: Legality of order passed by employer Application of standing order Grant of relief to wrongly dismissed person Illegality or otherwise of strike or lock out  Industrial Tribunal It has wider jurisdiction than labour court and deals with following matters: Wages including the period and mode of payment Compensatory and other allowances Leave with wages and holidays Shift working
  • 32.
    Bonus, profit sharing,provident fund and gratuity Rules of discipline Retrenchment  National Tribunal Appointed by Central government to deal with disputes of national importance or issues likely to affect industrial establishments in more than one state
  • 33.