The document discusses various aspects of industrial disputes in India such as the definition of an industrial dispute according to Section 2(K) of the Industrial Dispute Act 1947. It notes that disputes can be between employers and workers, employers and employers, or workers and workers. The summary also outlines the key steps involved in the settlement of industrial disputes such as conciliation proceedings, adjudication by labor courts or tribunals if conciliation fails, and arbitration as an alternative dispute resolution mechanism.

1. Prepared and presented by
N. Ganesha Pandian
Assistant professor
Madurai school of management
Madurai

2. Section 2(K) of the Industrial Dispute act 1947,
defines “Industrial dispute” means
“ Any Dispute or difference between employer and
employer or between employer and workman or
between workman and workman, which is
connected with the employment or non
employment or the terms of employment with the
conditions of labor, of any person”

3.  Dispute of difference connotes a real and
substantial difference having some element of
persistency and continuity till resolved
 If no dispute raised by workmen with the
management, any request sent by them to
government would only be a demand

4. Settlement of disputes between
1- Employer – Workman
2- Employer - Employer
3- Workman – Workman
But does not include disputes between:
1. Government and an industrial
establishment
2. Workmen and non workmen

5. The dispute must be connected with the
employment and non employment or terms
of employment with the conditions of labor,
of any person
1. Terms of employment
2. Employment and
3. Non employment

6. 1.Economic causes : wages, dearness allowances
and bonus, high industrial profits, working
conditions and working hours, weakness of TU
2. Non-Economic causes : Victimization of workers,
Ill treatment by staff members, sympathetic strikes,
political factors and indiscipline

7.  They disturb economic, social and political life of a
country
1. Unrest and unnecessary tensions
2. Economic loss due to conflicts
3. Industrial loss leads to economic depression
4. The Lives of low level laborers become worsen
5. When Industrial conflict get out of hand, they
become a threat to peace and security

8. Source : The Hindu

9. The demands include delinking associate banks from
SBI.
The All India Bank Employees Association (AIBEA) on
Saturday called for a nation-wide strike on June 24,2015 in
support of various demands of the State Sector Bank
Employees Association (SSBEA).
SSBEA, under its umbrella, has various unions of
associate banks of SBI such as State Bank of Bikaner and
Jaipur, State Bank of Travancore, State Bank of Hyderabad
and State Bank of Mysore and the like, which are also
associated with AIBEA.
Beside the nation-wide strike call, unions of associate
banks — under SSBEA — have also called for a strike on
June 4 in their respective cities pressing for their demands.
Source : The Hindu

10.  The demands include delinking associate banks from
SBI, not curbing right of trade unions’ right of
representation, extension of compassionate
appointment scheme as per government guidelines,
increase in quantum of staff housing loan, recruitment
of sub-staff and part-time employees and resolving
pending demands, among others, AIBEA General
Secretary C.H. Venkatachalam told PTI.
 He accused the SBI management of hampering the
performance of associate banks due to its “bossy
approach.”
Source : The Hindu

11.  Activities include various forms such as
Withdrawal of labor, raw material, customer
dealer or combination of these
1. Strike
2. Picketing
3. Gherao
4. Bandh
5. Lockout

12.  Definition:
Section 2(Q) of the industrial dispute act 1947 (IDA)
defines strike to mean
“ a cessation of work by a body of persons employed in
any industry acting in combination, or a concerted
refusal, or a refusal under a common understanding of
any no. of persons who are or have been so employed
to continue to work or to accept employment

13. 1, Stay in strike, Sit-down strike, pen down strike or
tool down strike
2, Go slow strike
3, Hunger strike
4, Lightning or wild cat strike
5, Work to rule
Three forms of withdrawal of labor 1, cessation of
work 2, Refusal to continue to work and 3, refusal
to accept employment

14. Elements of
picketing
Right to
freedom
of
speech
Freedom of
association
Freedom
of
movemen
t

15. Section 7 of the criminal law amendment act
1932 prohibits obstruction of access and
intimidation of persons or employees or
loitering at places of residence or business
with the intent of deterring others from
entering or approaching or dealing at such
places.

16. 1. Article 19(1) (d) of the constitution
guarantees to every citizen the right to move
freely throughout the territory of India
2. Section 7 of the criminal law amendment act
1932 curtails the freedom of movement by
making a mere excuse of right of freedom of
movement penal under certain circumstances

17.  Article 19(1) (C) of the constitution guarantees to
all citizen the right to form the associations and
unions. This right may however subject to
reasonable restrictions in the interest of public
order and morality
 Section 7 of the criminal law amendment act 1932
prohibits mere loitering with certain intent and
places restriction on picketing

18.  Instrument of physical not economic
 Gherao become the mot potent weapon in hands of
workers in 1960’s especially found in WB
 Literally the word means encirclement , confinement,
not free
 Punishable under section 339 or 340 of IPC and may
fall under the purview of section 503 IPC
 Duty of union leaders to condemn this form of labor
protest, may affect national interest in long run

19.  In Hindi the word means ‘locked’ or ‘closed’
 It is illegal and unconstitutional
 It is against fundamental rights of an individual
 The political parties and organizations which call for
such bandh are liable to compensate for the losses
 In period of bandh, “No work, no pay for absence”

20.  Lock out – Employer’s instrument of
economic coercion
 It was resorted to by an employer or group of
employers to ban union membership
 Usually declared by a body employers against
a strike at a particular work by closing all
factories until strikers returned to work

21.  Section 2(1) of the industrial disputes Act 1947
defines ‘Lockout’ to mean:
The temporary closing of a place of employment or the
suspension of work, or refusal by an employer to
continue to employ any no. of persons employed by him
 Lock out is the counterpart to strike
 It doesn’t include one workman, but means more than
one.

22.  19(1)(C) guarantees the right to form associations, a
guarantee is also implied that the fulfillment of every
object of an association so formed is also a protected
right, with the result that there is a constitutional
guarantee that every association shall effectively
achieve the purpose, without interference by law
except on grounds relevant to the preservation of
public order and morality

23.  The strike cannot be said to be illegal strike if it
does not contravene any provision of the law
 Section 24 of ID act, prescribes the grounds where
the strike would be declared illegal.
 The punishment of dismissal or termination of
service has, therefore to be imposed on such
workmen who had participated and fomented the
strike

24.  The workers are not entitled to wages for the
strike period even if the strike is legal, but not
justified, it should be legal and justified
 The legality of strike can be looked from ID
act and whereas Justifiability of strike can be
looked from the charter of demands

25.  No person employed in public utility service neither
shall go on strike nor a employer shall lock out
A, Without giving notice within six weeks or within
fourteen days of giving such notice
B, Or before the expiry of the date specified in any such
notice
C, or during the pendency of any conciliation
proceedings and seven days after that conclusion of
proceedings

26.  Definition of continuous services:
“A workman shell be said to be in continuous service
for a period if he is for that period in uninterrupted
service including service may be interrupted on
account of sickness or authorized leave or an
accident or a strike which is not illegal or lockout or
cessation of work which is not due to fault at part of
workman”

27.  ‘Retrenchment’ means the termination by the employer of the
service of a workman for any reason whatsoever, otherwise
than as a punishment inflicted by way of disciplinary action,
but doesn’t include:
1. Voluntary retirement of the workman or,
2. Retirement of the workman or reaching the age of
superannuation
3. Termination of service contract as result of non renewal
4. Termination on ground of continued ill health

28.  No workmen employed in any industry who has been in
continuous service for not less than one year under an
employer shall be retrenched by that employer until-
1, one month’s notice to the workman by the employer indicating
the reasons for retrenchment or payment of wages for the
period of notice in lieu of notice
2, Payment of compensation at the time of retrenchment at the
rate equivalent to 15 days average pay for every completed
year of continuous service or any part thereof in excess of six
months

29. 3. Notice to appropriate government or such authority as
may be specified by the appropriate government, in the
prescribed manner
These above conditions achieve double purpose of
A, to save the employer from carrying the deadweight of
surplus labor
B, and to provide compensation to workman suffer
hardship due to unemployment caused by
retrenchment

30.  There is no general law laid down anywhere in the act except
that laid down in section 25G provides procedure for
retrenchment
 This section prescribes that an employer shall ordinarily
retrench the workman who was the last person to be employed
in that category, unless for the reasons to be recorded in
writing, the employer retrenches any other workman
 The rule of “Last come first Go” has been statutorily
recognized by sec 25G

31.  Section 25 H was inserted in the industrial
disputes act by the amendment act of 1953. It
prescribes that if the employer proposes to
employ new hand, then he has to provide an
opportunity to the retrenched workman and
preference given to such workman over other
person

32. Any employer who contravenes the
provisions of sec 25M and sec 25N shall
be punishable with imprisonment for a
term of which may extend to one month, or
with fine which may extend to one
thousand rupees or with both

33. 1, Indulgence of any workman in illegal strike
leads to imprisonment for a term extend to
one month or with fine to fifty rupees or both
2, Illegal lock out shall be punishable by one
month imprisonment or one thousand fine or
both

34. Lay-off means the failure, refusal or inability of an
employer on account of shortage of coal, power or
raw materials or the accumulation of stocks or the
breakdown of machinery or natural calamity or for
any other connected reason to give employment to
a workman whose name is in borne on the muster
rolls of his industrial establishment and who has
not been retrenched

35.  According to provisions of sec 25c, a workman who has
completed one year of continuous service as defined in sec
25B of act whose name is borne on the muster roll has been
laid-off, will be entitled to 50% of total basic wages and D.A
 If workmen laid off more than 45 days, there will be no
compensation payable and employer shall have retrenchment
after the expiry of 45 days
 If any compensation paid to workman for having been laid-off
may be set off against the compensation payable for
retrenchment.

36.  1. Layoff by employer should get prior permission from
appropriate government by notification in official
gazette
 The workman of industrial establishment can be laid off
under following reasons as fire, flood, or excess of
inflammable gas or explosion
 Employer should get permission from appropriate
government of 30 days within after commencement of
lay-off for above said reasons

37.  After such notification of lay-off, if government doesn’t
communicate grant or refusal, then it is deemed to
have been granted after expiry of 60 days
 Where the permission for any lay-off has been refused,
such lay-off shall be deemed to be illegal
 Notwithstanding of above said provisions, there are
certain exceptions for lay-off with immediate effect such
as accident in establishment or death of employer and
alike

38.  Settlement means a settlement arrived at in the course
of conciliation proceedings and includes a written
agreement b/w the employer and workmen arrives at
otherwise than in the course of conciliation proceeding
where such agreement has been signed by the parties
thereto in such manner as may be prescribed and a
copy thereof has been sent an officer authorized in this
behalf by appropriate government and the conciliation
officer

39.  Conciliation officer – sec4 ‘A conciliator officer may be
appointed for a specified area or for specified industries in a
specified area or for one or more specified industries and
either permanently or for a limited period
 Boards of conciliation – sec5 ‘A Board shall consists of a
chairman and two or four other members ,as government
thinks fit.
The chairman shall be an independent person and other
members shall be appointed in equal nos. to represent the
parties to the dispute

40. 1, According to notice under sec22 has been given, shall hold
conciliation proceedings in the prescribed manner
2, He investigate the matter and try to settle down fair and amicable to
both parties
3, If no such settlement is arrived at, the officer shall, as soon as send
full report to concerned authority and also may be there is a case for
reference to a board, labor court, tribunal or national tribunal
4, A report under this section shall be submitted within 14 days of
commencement of the conciliation proceedings or within such
shorter period as may be fixed by appropriate government

41.  If despite efforts of the conciliation officer, no
settlement is arrived at between employer
and the workman. The ID act provides a three
tier system of adjudication
1, Labour courts (sec7)
2, Industrial tribunals (sec 7A)
3, National tribunals (sec7B)

42.  Labour courts have been empowered to decide disputes
relating to matters specified in the second schedule.
 These matters are concerned with rights of workers,
such as propriety of legality of an order passed by an
employer under standing orders application, discharge
and interpretation of standing order, strike and lock out
 The industrial tribunal are empowered to adjudicate on
matters specified on both the second and third schedule
(i.e) both rights and interest disputes

43.  The jurisdiction of the industrial tribunal is
wider than that of labor courts
 In case of disputes which in the opinion of the
central government involve question of
national importance or is of such nature that
workers in more than one state are likely to be
affected. The act provides for constitution of
national tribunals

44. Both involves third party provides
assistance. But in conciliation, both parties
come closer to discuss and reach the
settlement
In mediation sometimes, the third party
comes to decision on his own

45.  Arbitration, a form of alternative dispute
resolution(ADR) is a legal technique for the resolution
of disputes outside the courts.
 It is a settlement techniques a third party (arbitrators or
arbiters or arbitral tribunal) reviews the case and
impose a decision that is legally binding for both sides
 Arbitration can be either voluntary or mandatory, often
used for resolution of commercial disputes

46.  Arbitration sometimes called adjudication is a
private trial like process that can be commenced by
any two or more parties who agree to arbitrate
either under a contract, by legislation, or by simple
written agreement
 A properly designed, well managed arbitration
process can be completed quickly and is a highly
efficient means of resolving disputes
 Arbitrations are conducted under the commercial
arbitration acts. The acts give arbitrators most of
the power and authority of supreme court judges

47.  An arbitrator is applied to be a “Private judge” and
is required to manage a confidential “Private trial”
 Decision should be based on trying to achieve
most time and cost effective process, above all
considerations. Inevitably, more formal the
process, the lengthier and more expensive it
becomes

48.  The parties have an opportunity to present
and promote their arguments and to have
them tested by their opponents
 After all information and argument presented
and tested, the arbitrators evaluates and
make it as written decision called the “award”
 The award is legally binding on the parties
and is enforceable through the courts like a
court judgment

49.  Even the largest and most complex disputes
should only require a few months to resolve
 Cheaper and quicker than conventional litigation
 Confidentiality is another advantage of this
process
 Confidentiality – often a critical factor in sensitive
commercial and family business disputes

50.  The arbitration and conciliation act 1996 –
more approximate to the traditional system
giving more liberty to the parties to choose
their own procedures and arbitrators
 All disputes other than the disputes where
substantial question of law touching upon the
constitutional, statutory or other doctrinal
interpretation should be encouraged to be
settled trough Alternative Dispute resolution
mechanisms.

51.  Industrial peace is not merely a negative
concept signifying the absence of industrial
unrest or the reconciling of hostile forces to
avoid ruinous strife. But it also signifies the
active presence of harmonious and good
industrial relations generating amity and
goodwill between the partners in an industry

52.  The industry policy resolution of 1984 declared that “a
dynamic national party must be directed to a
continuous increase in production by all possible
means, side by side with measures to secure its
equitable distribution”.
 The problem of state participation in industry and the
condition in which private enterprise should be allowed
to operate must be judged in this context

53. 1, Professionalism
2,Conflict of interest
3,Confidentiality of information
4, Integrity of financial information
5, Protection and use of company property
6, Acceptance of gifts and other benefits
7, Harassments
8, Frauds
9, Compliance with laws and agreement
10, Misconduct and non-conformance with policy
11, Accountability

54. Part – A
1. What do you mean by arbitration?
2. Define strike?
3. What are the primary causes of industrial
disputes?
4. Explain the role of conciliation board in
maintaining industrial peace?
5. Define “Disputes”?
6. What is meant by adjudication?
7. What is training and development?
8. What are the disadvantages of strike?
9. What do you mean by industrial peace?
10. Who is conciliation officer?
11. Distinguish between strike and lockout?

55. Part – B
1. Conciliation, arbitration and adjudication
2. Causes of industrial dispute and ways to
prevent it
3. Sources of industrial disputes
4. Strike, Different forms of strike, Statutory
requirements
5. Role of government machinery in case of
industrial conflict
6. process of grievances redressal in India