Final Id Act (2)

8/4/2019 Final Id Act (2)

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INDUSTRIAL DISPUTE ACT 1947

Industrial dispute means any dispute ordifference between employers andemployers, or between employers and

workmen, or between workmen andworkmen, which is connected with theemployment or non-employment or terms of

employment or with the conditions of labourof any person. But in reality, dispute isunderstood as the conflict betweenemployees and employers


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PURPOSE OF THE ACT

The Industrial Disputes Act, 1947 came intoexistence in April 1947.

It was enacted to make provisions for

investigation and settlement of industrialdisputes .

for providing certain safeguards to the

workers in case of lay off, retrenchment,wrong full dismissals .


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INDUSTRIAL CONFLICT

Conflict is inherent in industrial relationstoday.

Interest of labor and management usually

opposes

The prevailing unrest , work stoppages

resulting from strikes or lock-outs , slowingdown of production etc.


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When issues of conflict are submitted to themanagement for negotiation, they take theform of industrial disputes.

Special causes of industrial conflict may betreated as causes of industrial disputes.;


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Essentials of an Industrial Dispute?

It must affect a large group of workmen It should invariably be taken up by the industry union or

by an appreciable number of workmen

There must be a concerted demand by the workers forredress and the grievance becomes such that it turnsfrom individual complaint to a general complaint

If the dispute was in the beginning an individual dispute

and continued to be such till referred for adjudication, itcan not be converted into industrial dispute by latersupport from other workmen


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Essentials of an Industrial Dispute?

A workman can raise a dispute directlybefore a Conciliation Officer in the case ofdischarge, dismissal, retrenchment or any

form of termination of service. In all othercases listed at 2 above, the dispute has tobe raised by a Union / Management


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IMP. DEFINITIONS

Industrial Dispute :

Any dispute between :

Employers & employers

Employers & workmen

Workmen & workmen

Connected with

The terms of employment or

Conditions of labour of any person.


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DEFINE WORKMAN U/S 2(S)

Any person (including an apprentice) employed in an industry

to do any manual, unskilled, skilled technical operational,clerical or supervisory work

for hire or reward

Whether the terms of employment be express or impliedand for the purpose of this Act includes

any such person who has been dismissed discharged or

retrenched in connection with or as a consequence of anindustrial dispute or whose dismissal or retrenchmenthas led to the dispute


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But, does NOT include a person :

who is subject to Army Act, 1950 , Air Force Act1950 or Navy Act 1957

Who is employed in police service as an officer or

other employee of a prison Who is employed mainly in managerial or admn.

Capacity

A supervisor drawing wages exceeding a

specified amount (mentioned in the Rules)


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DEFINE INDUSTRY [U/S 2(J)]

Any systematic activity carried on by cooperationbetween employer & his workmen (whetherworkmen are employed directly or through anagency) for the production, supply or distribution of

goods or services. or services with a view to satisfy human wants or

wishes (not being wants or wishes which are merelyspiritual or religious in nature), whether or not,-

Whether or not any capital has been invested orsuch activity is being carried out for the purpose ofmaking profits


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But it DOES NOT include: Any agricultural operation (except when the agri operation is

integrated with another activity & that is the predominant one) Hospitals or dispensaries Educational, scientific, research or training institutions Khadi or village industry Any sovereign function of the govt Any domestic service Any profession practiced by an individual if the number of

persons employed by the individual is less than ten Cooperative society employing less than 10 persons


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Causes of Dispute

Wages

Union rivalry

Political interference

Unfair labour practices

Multiplicity of labour laws

others


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Classification/ Types of ID

Interest disputes: arrising out of deadlocks in negotiation forcollective bargaining

Grievance disputes: may pertain to discipline, wages, workingtime, promotion, rights of supervisors etc. also some times calledinterpretation disputes

Unfair labour practices: those arising out of right to organise, actsof violence, failure to implement an award,discriminatory treatment,illegal strikes and lockouts

Recognition disputes: over the rights of a TU to represent class or

category of workers


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MACHINERY FOR THE PREVENTION &

SETTLEMENT OF INDUSTRIAL DISPUTES

Authorities appointed under ID Act : Works Committee

Conciliation Officer

Board of Conciliation Court of Inquiry

Labour Court

Industrial Tribunal

National Tribunal


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WORKS COMMITTEE (U/S 3)

What is the statutory requirement for constituting WC? Every Industrial establishment in which: 100 or more

workmen are employed or

have been employed on any day in the preceding 12 months.

Whom does it consist of ? Bipartite representatives of both Representatives of workmen equal to that of employer ,

Term of representatives shall be 2 years

Which type of issues handled ? Matters arising out of the day to day working of the

organisation (e.g health, safety , welfare of employees ,productivity , quality, cost consciousness)


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Conciliation officer (sec 4)

Appropriate govt. may appoint CO

CO may be Labor officer(less than 20 workmen),Labor Commisioneror Deputy Com for more than 20.

CO work is to induce both the parties to the dispute to come to fairand amicable settlement.

Send a report (proceedings- successful or failed) to govt. within 14

days of start of proceedings

After considering the govt may refer the dispute to BOC , Labourcourt, Tribunal or national tribunal.


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Powers of conciliation officers

Have no power to decide, but strive to findsolution. Power of entry and inspection of premises

Power to call for and inspect documents

Report to be submitted within 14 days or less from commencement


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Board of concilliation (sec 5)

Composition :Chairman and 2 or 4 members ,

Duties & power same as conciliatory officer

: if dispute is settled then report to be sent to

app. Govt.If not then also. Submit within 2months


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Courts of Inquiry

The app govt may constitute COI connectedwith dispute

A COI may consist of one or more persons as

members.Chairman

Inquire into the report and submit to govtwithin 6 months from commencement of

inquiry. Inquire and reveal the case


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Labour court

The app govt may appoint LC any matter specifiesin II Schedule

Composition consist of 1 person should be orhave been a judge of HC, or for 3 yrs been a district

judge or an add district judge, have held any judicialoffice in india for 7 yrs, Matters in II schedule: under standing order, Application or interpretation of SO, discharge or

dismissal of workers, workers wrongly dismissed,

withdrawal of concession or privilege, illegality ofstrike or lockout, all matters other than III schedule


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Tribunals

Matter in III schedule

consist of 1 person should be or have been ajudge of HC, or for 3 yrs been a district judge or an

add district judge Matters; wages , including period, mode of payment,

compensatory allowances, hrs of work, intervals,leave with wages, bonus , profit, pf gratuity, shift

work, classification fo grades, rules of discipline,retrenchment, closure,


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National tribunal

Central govt may refer the dispute to NT : if the matter is ofnational importance

The parties to an industrial dispute are required not to resort towork stoppage if dispute is pending before the Board ofConcilation or adjudication authority.


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No person shall be appointed to, orcontinue in, the office of the PresidingOfficer of a Labour Court, Tribunal or

National Tribunal, if -

(a) he is not an independent person; or

(b) he has attained the age of sixty-fiveyears.


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Methods for settlement and

prevention of Industrial dispute COLLECTIVE BARGAINING

Takes place when representatives of a labour unionmeet management representatives to determineemployees wages and benefits and to solve other

issues. Collective bargaining is the most effectivemethod of resolving industrial disputes

Approaches to collective bargaining

As a process of social change

As a peace treaty between conflicting parties


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Collective Bargaining: Steps

Presentation in collective manner(demandsand grievances)

Discussions, bargaining and negotiations onmutual grounds

Signing of formal agreement or informal

understanding In even of failure,likely resort to strikes or lock

outs


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CONCILIATION

Conciliation is an important method for settlement ofdisputes through third-party intervention

Conciliation is a friendly intervention of a neutral personin a dispute to help parties settle differences peacefully

The aim of conciliator is to break the deadlock ,explainthe view point of one party to the other, conveymessages and keep the negotiation going.

Parties may or may not accept the sugestions.


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ARBITRATION

Arbitration is the process in which a neutral thirdparty listens to disputing authorities, gathersinformation about dispute and makes a decision

which is binding on both parties. When the parties feel that mutual negotiations

will not succeed ,it may decide to submit thedispute to a neutral person or group of persons

for arbitration.

Award given may or may not be binding onparties


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It differs from conciliation in the sense thatin arbitration , arbitrator gives a decisionon dispute while in conciliation, conciliatormerely facilitates disputing authoritiesdisputing parties to arrive at a decision.


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VOLUNTARY REFERENCE OF DISPUTES TO

ARBITRATION

Sec. 10 (A) (1): Before the Govt. refers a dispute to adjudication,the employer & workmen, can voluntarilyrefer it to anarbitrator(s) through a written agreement.

If there are an even number of arbitrators are there an umpireshall be appointed whose decision shall prevail if the others areequally divided in their opinion.

A copy of the arbitration agreement shall be sent to the

appropriate Govt. and the conciliation officer and the same shallbe published in the official gazette within one month.


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ADJUDICATION

Under the condition when dispute is not settledand parties adhere to strikes and lockouts, Govtmay decide to refer the dispute to adjudication

and force the parties to abide by the award ofthe adjudicator

Adjudication means a mendatory settlement ofan industrial dispute by a labour court or a

tribunal.

Prohibit the party from work stoppages.


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CASE : LIBERTY FOOTWEAR CO.

Karnal Leather Karamcjari Sanghathan Vs. LibertyFootwear Co. , AIR 1990 , SC

Question : If an arbitration agreement is not

published, will the arbitrators award still be valid ? Facts :

Workers Union claimed that the management had

illegally terminated more than 200 workmen .

Workers went on strike .. Violence .. Police..Deputy Commissioner.. Labour Commissioner


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Both parties agreed to get the dispute settled through anarbitration committee consisting of 5 persons (2 from themanagement, two from the Union with the D.C as the President)

The committee gave its award to reinstate 159 workers The management did not reinstate the workers . another

dispute arose! The management challenged the validity of the arbitrartion award

.. Writ petition in the High Court

The ground .. the arbitrartion agreement was not published in

the official gazzette as per requirement of subsec. 3 of Sec. 10(A) .

The High Court accepted the writ petition i.e requirement ofpublishing the agreement is mandatory.

Workmen appealed to the Supreme Court SC : upheld the HC decision , i.e the arbitration agreement must

be published without which the validity of arbitral award isquestionable.


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NOTICE OF CHANGE

Section 9 A prohibits employer to make any changein conditions of service of any workman, in respectof matter specified in fourth schedule.

Objective of this section is to provide an opportunityto the workmen,to consider the effect of a proposed

change & if necessary to present their views on theproposal.

The conditions of service for change of which noticeis to be given are specified in fourth schedule whichare as under:

Wages Hours of Work


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NOTICE OF CHANGE

Contribution paid by workers to any PF,pension or the benefit of the workmen under any law

Compensatory and other Allowance Classification by Grades

Withdrawal of any concession Leave with wages and holidays Withdrawl of any concession or privilege or change

in usage Introduction of new rules of discipline or alteration

of existing rules so far as they are provided in thestanding order.

Standardisation or improvement of plant ortechnique which is likely to retrenchment of workers.


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NOTICE OF CHANGE

However section requires that 2 conditions may befulfilled before any change in the conditions ofworkmen is made-

1.Employer should give notice to the workmen who

are likely to be affected by the change.Notice shouldbe given in the prescribed manner & must state thechange proposed to be effected.

2.The employer must wait for 21 days after giving the

notice,for change brought about prior to this periodshall be invalid.


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PROHIBITION OF STRIKES AND LOCKOUTSSECTION 22 (1)

Strikes & lockouts are prohibited in public utility serviceswithout fulfilling following conditions:

A statutory notice of strike/lockout must be given toemployer or workmen within six weeks before striking or

lockout. There must be no strike/ lockout within 14 days of giving

such notice.

When date is specified in the notice,no strike or lockoutcan be calld/declared before before the expiry of thatday.

Where any conciliation proceedings are pending, nostrike or lockout declared during pendency of anyconciliation proceedings and seven days after conclusion

of proceedings.


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GENERAL PROHIBITION OF STRIKES AND

LOCKOUTS- SECTION 23

According to Section 23, no workman who is employedin any industrial establishment shall go on strike inbreach of contract and no employer shall declare alockout:

During the pendency of conciliation proceedings before a

board & seven days after conclusion of proceedings During pendency of proceedings before labour court,

industrial or national tribunal and two months afterconclusion of such proceedings.

During pendency of arbitration proceedings before an

arbitrator and two months after conclusion of suchproceedings.

During the period in which a settlement or award is inoperation,in respect of any of the matters covered by thesettlement of award.but there is no bar to call strike or to

declare a lockout in respect of other matters.


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ILLEGAL STRIKES AND LOCKOUTS

Strikes and Lockouts are legal when they aredeclared in compliance with provisions of Act.

A strike is illegal when it is commenced in

contravention of Section 22 or Section 23 of theAct.


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ILLEGAL STRIKES AND LOCKOUTS

However in following cases a strike will nottreated as illegal:

1. A strike is called strictly in compliance ofwith

the provisions of Act,eg. Where workmen refuseto do additional work imposed on them byemployer under a rationalisation scheme.

When it is resorted to ,for the purpose of

influencing the employer,to open negotiation asto their demands,provided it doesnot hit in anyway provisions of sec22 & 23.


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conti.

Where a lockout has been declared inconsequences an illegal strike or a strikedeclared in consequence of an illegal lockout.

If a strike or lockout was commenced before andcontinued before and continued duringpendency of arbitration proceedings and also ifcontinuedaftr a reference has been made to a

board,labor court or tribunal.


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PROHIBITION OF FINANCIAL AID TO

ILLEGAL STRIKE & LOCKOUT

No person shall knowingly expand or apply anymoney in direct support of any illegal strike orlockout.


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PENALTIES

Committing unfair labour practices

Illegal strike and lock-outs

Instigation etc. for illegal strike or lock-outs.

Giving financial aid to illegal strikes and lock-outs. Breach of settlement or award

Closure without 60 days notice under Sec.25 FFA

Contravention of Sec.33 pertaining to change of

conditions of Service during pendency of dispute etc.


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OFFENCES AND PENALTIES FOR ILLEGALSTRIKES AND LOCKOUT SECTION 26

Any worker who commences or acts infurtherance of illegal strike shall be punishablewith imprisonment up to one month or fine up to

Rs.500 or both. Similarly, if any employer who indulges in an

illegal lockout will entail a liability for payment ofwages during lockout. He will also be punishable

with imprisonment up to one month or fine up toRs. 1,000 or both


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CONTI

Any person who instigates or incites others totake part in illegal strike or lockout or acts infurtherance of such an illegal strike or lockout is

punishable with imprisonment upto 6 months orwith fine upto 1000 Rs or both.

Any person who is giving financial aid for illegalstrikes and lockout shall be punishable with

imprisonment upto 6 months or with fine upto1000 Rs or both.

Documents

Final Id Act (2)