UNIT – IIINDUSTRIAL CONFLICTS

Disputes – Impact – Causes – Strikes –

Prevention – Industrial Peace – Government Machinery – Conciliation –

Arbitration – Adjudication.

Industrial Disputes/conflict

Meaning:An industrial dispute may be defined as a conflict or difference of opinion between management and workers on the terms of employment. It is a disagreement between an employer and employees' representative; usually a trade union, over pay and other working conditions and can result in industrial actions. When an industrial dispute occurs, both the parties, that is the management and the workmen, try to pressurize each other. The management may resort to lockouts while the workers may resort to strikes

Impact of Industrial disputes

The consequences of industrial disputes disturb the economic , social and political life of a country. 1. Industrial disputes result in a huge wastage in the production work. 2. When such stoppage of work take place the short supply of consumer goods result in sky-rocketing of prices, and leads to their non availability in the open market. 3. The worker losses the wages for the strike period and in turn it disturbs their family life.4. The employers suffer heavy losses , not only through stoppage of production, reduction in sales and loss of market .5. In public /Society it creates law and order problems.

What causes industrial disputes?

Pay disputes Working conditions Unfair dismissals Promotion Poor industrial relations Introduction to new technology Discrimination

STRIKES A strike usually takes place in response to employee

grievances. Strikes became important during the industrial revolution, when mass labour became important in factories and mines.

In most countries, they were quickly made illegal, as factory owners had far more political power than workers.

Most western countries partially legalized striking in the late 19th or early 20th centuries.

Strikes are sometimes used to put pressure on governments to change policies. Occasionally, strikes destabilize the rule of a particular political party.

Types of strikes• Stay away strike:- Workmen do not come to the

workplace during work hours.

• Sit down and stay in strike:- A group of employees interested in attaining certain objectives in particular business take possession of property of that business, establish themselves in plant, stop it production.

• Tools Down Strike- lay down their tools and refrain from doing work.

• Go-Slow- Reduce the speed of work to adopt dilatory tactics to reduce production.

• Ghero- Physcial blockade of a target by encirclement.

• Hunger strike

Prevention of strikes• The Management should adopt well defined,

precise, clear HRM policies for good industrial relations.

• Effective administration & Timely implementation.

• Effective two way communication system in operation.

• Provide just & humane conditions of work, along with suitable welfare activities.

• Should give recognition to representative union

• Should ensure joint consultation and encourage collective bargaining.

Industrial Peace

“Industrial peace signifies the active presence of harmonious and good industrial relations generating amity & good will between industry-a condition which is both the cause and effect of fruitful co-operation.”

CONCILIATION

Conciliation' is an alternative dispute resolution (ADR) process whereby the parties to a dispute (including future interest disputes) agree to utilize the services of a conciliator, who then meets with the parties separately in an attempt to resolve their differences.

Conciliation differs from arbitration in that the conciliation process, in and of itself, has no legal standing, and the conciliator usually has no authority to seek evidence or call witnesses, usually writes no decision, and makes no award.

Conciliation differs from mediation in that the main goal is to conciliate, most of the time by seeking concessions. In mediation, the mediator tries to guide the discussion in a way that optimizes parties needs, takes feelings into account and reframes representations.

Strikes Lockouts

Primary Strikes

Secondary

Strikes

Others

1. General2. Particular3. Political4. Bandhs

Stay-awayStrik

es

Sit down

Stay-inTool

Down or

Pen Dow

n Strikes

Go -

Slow

Work To Rule

Token or

Protest

Strikes

Industrial Disputes

Lightening

or Cat- Call

strikes

Picketing & Boycott

Gherao

Hunger

Strikes

Role of Conciliator• As a discussion Leader:- He reduce the

irrationality and antagonism between parties. He guide them towards a problem solving approach. He ensure both parties discuss their differences.

• As a safety valve:- places himself in the position of an alternative target when he feel the parties are in an aggressive mood.

• As a Innovator and protector

• As a Stimulator & Adviser

• As a promoter for collective bargaining

Types of conciliation• Voluntary :- The disputes are refereed to the

conciliation by the both parties of their own free will ; they agree to have their disputes settled by an outsider, but free to accept or not accept the decision.

• Compulsory:- The procedure is made compulsory by provisions requiring the parties attendance at conciliation proceeding or empowering the conciliation authority to compel their attendance at such proceeding as well as by the prohibition of strikes or lockout.

ARBITRATION

The Arbitration and Conciliation Act does not provide definition of the word "Arbitration" but its literally recognized meaning is that "settlement" of differences or disputes by mutual understanding or agreement by the parties where the rights and liabilities of the parties are determined in judicial point of view which are binding to them, such settlement may be before the arbitral tribunal but not by the court of law.

STAGES OF ARBITRATION• The parties agree to submit their present or future differences to arbitration.

In case of any dispute, one of the parties to the contract must file a request for Arbitration and pay the required fee to an Arbitration Institution referred to in the agreement that provides Arbitration services.

• Often the Arbitration Institution will suggest an arbitrator or arbitrators to which the parties must agree. (The arbitrator may be an attorney, judge, or business person.)

• After the parties have defined their dispute, there will be a hearing, often at the arbitrator's office, where the parties present evidence and witnesses in a fairly informal manner without the formal rules of evidence used in court litigation.

• After the evidence has been presented, the arbitrator reaches a decision and usually later sends the parties a written reasoned opinion (an award).

• In our country, an award passed by an arbitration tribunal has the force of a decree. Thus, it can be executed in the same manner in which a court decree can be executed.

Advantages of arbitration

• when the subject matter of the dispute is highly technical, arbitrators with an appropriate degree of expertise can be appointed

• arbitration is often faster than litigation in court • arbitration can be cheaper and more flexible for businesses • arbitral proceedings and an arbitral award are generally secret • because of the provisions of the New York Convention 1958,

arbitration awards are generally easier to enforce in other nations than court judgments

• in most legal systems, there are very limited avenues for appeal of an arbitral award

Disadvantages of arbitration• consumers and employees usually do not know in advance that they have been forced into

mandatory binding pre-dispute arbitration by purchasing a product or taking a job

• if the arbitration is mandatory binding pre-dispute arbitration, the individual must, in advance, give up his or her right to access the courts and have a judge or jury decide the case

• the parties need to pay for the arbitrators, which adds an additional layer of legal cost that can be prohibitive, especially in small consumer disputes

• a recovery of attorneys' fees is usually unavailable, making it difficult or impossible for consumers or employees to get legal representation

• the arbitrator depends on the corporation for repeat business, so there is an inherent incentive to rule against the consumer or employee

• there are very limited avenues for appeal, which means that an erroneous decision cannot be overturned

• although usually thought to be speedier, when there are multiple arbitrators on the panel, juggling their schedules for hearing dates in long cases can lead to delays

• in some legal systems, arbitral awards have fewer enforcement remedies than judgments

• arbitrators are generally unable to enforce interlocutory measures against a party, making it easier for a party to take steps to avoid enforcement of an award, such as the relocation of assets offshore

• rule of applicable law is not binding, and arbitrators not subject to overturn on appeal may be more likely to rule according to their personal ideals

• large corporations may exert inappropriate influence in consumer disputes, pressuring arbitrators to decide in their favor or lose future business

ADJUDICATION

“Adjudication involves intervention in the dispute by a third party appointed by the government for the purpose of deciding the nature of final settlement.”

Three types of disputes are resolved through adjudication

• Disputes between private parties, such as individuals or corporations.

• Disputes between private parties and public officials.

• Disputes between public officials or public bodies.

Types of adjudication:-

• When both parties at their own accord agree to refer the dispute to adjudication it is called as Voluntary adjudication.

• On the other hand when reference is made to adjudication by the government without the consent of either parties to the dispute it is known as Compulsory adjudication.

Three-tier system of adjudication

1) Labour court –adjudicate upon disputes listed in schedule II of the act.

2) Industrial tribunal- adjudicate upon disputes listed in schedule II / III of the act.

3) National tribunal – adjudicate upon disputes of national importance

Labour CourtConstitution 

A labour court shall consist of one person who

• a) Is or has been judge of high court

• b) Has been for a period of not less than 3 years

• c) Has held judicial office in India for not less than 7 years

Jurisdiction

The jurisdiction of labour court extends to the adjudication of the following disputes:-

• a) Propriety or legality of order passed by employer.

• b) Application & Interpretation of standing order.

• c) Discharge or dismissal of workers

• d) Withdrawal of any customary concession.

• e) Illegality or otherwise of a strike or lockout.

Industrial TribunalsConstitution 

A industrial tribunal shall consist of one or more person who

• a) Are or have been judge of high court

• b) Have been for a period of not less than 3 years

• c) Have hold office of the chairman or member of labour appellate tribunal

• for not less than 2 years

Jurisdiction

The jurisdiction of industrial tribunal extends to the adjudication of the following disputes:-

• a) Wages, Compensatory and other allowance

• b) Hours of work

• c) Leave with wages and holiday

• d) Rules of discipline

• e) Classification of grades

• f) Rationalization

• g) Retrenchment of workmen.

National TribunalConstitution 

A national tribunal shall consist of one or more person who

• a) Are or have been judge of high court

• b) Have hold office of the chairman or member of labour appellate tribunal for not less than 2 years

Jurisdiction

NA

LRC(Labour Relations Commission)

Labor Relations Commissions are Japanese government commissions responsible for protecting the legal rights of workers in Japan under the Constitution of Japan and the Trade Union Act of 1949.1. The Central Labor Relations Commission is located in Tokyo. Parties dissatisfied with a decision in one of the prefectural labor commissions can appeal the Central Labor Commission. It also hears cases of nationwide scale or great importance2. Commission are appointed by the Prime Minister . Labor Relations Commissions have two main functions:a) Making administrative decisions (such as deciding unfair labor practices) b) Adjusting labour relations (bringing together disputing parties)

How an industrial relations conflict between

employees/employers can be resolved

Internal Solutions

1. Take the complaint to the union shop steward (union representative, union steward)

2. The union shop steward will follow the grievance procedure agreed with the employer

3. If no union, agreed employees should talk directly to manager responsible or to the HR manager

Help from the LRC(Labour Relations Commission)

4. Agreement of both sides, the matter is taken to the LRC which provides the following conflict resolution services.Conciliation services (for group conflict resolution)Rights Officer Service (for individual conflict resolution)

Getting Help From the LABOUR COURT

5. This is seen as the last resort for industrial disputes. It provides an ARBITRATION SERVICE for group conflict resolution.

What is the role of the (EEA) employment

equality agency The employment agency acts to eliminate against

any discrimination between the treatment of employees in the workplace.

• It was established in association with the Employment Equality Act 1977.

• It is responsible for ensuring that the employment equality legislation is obeyed by employers

• This legislation states that it is illegal to discriminate on the grounds of religion, sex or marital status.

Main services of the EEA

1. Advises employers on their responsibilities and employees on their rights regarding equality issues.

2. Monitors the equality legislation to ensure it is being properly implemented.

3. Investigates complaints concerning any discrimination against individual employees. This work is done by equality officers.

Role of the (EAT) Employment Appeal

Tribunal The EAT is responsible for ensuring that

firms obey the Unfair Dismissals Act 1977-93. It investigates any disputes between employees/employers concerning sackings, redundancy.

Note: Compensation must be paid to employees up to a maximum of two years if a firm is guilty of unfair dismissals

How Industrial Relations are conducted at national

levelSince 1987 national agreements have been negotiated

between the social partners every three years.The social partners include:• Government representatives• Employers representatives – IBEC (Irish Business

and employers confederation)• Employees representatives – ICTU(Irish Congress

of Trade Unions )• Farmers – IFA(International Federation on Ageing)• Community Organisations

Examples of social partnership agreements

• Programme for national recovery (PNR) (1987 onwards)

• Partnership 2000 which covered the years from 1997 – 2000

• Programme for prosperity & fairness (PPF)

• Towards 2016 (partnership agreement we are currently in)

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