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Structures
3.1 Introduction
3.2 Constitutional Framework
3.3 The Impact of ILO on Industrial Relations
3.4 Role of Law in Industrial Relations
3.5 The Trade Unions Act 1926
3.6 The Industrial Employment (Standing Orders) Act 1946
3.7 The Industrial Disputes Act 1947
3.8 Case
3.9 Summary
3.10 Self-Assessment Questions
3.11 Further Readings
3.1 INTRODUCTION
The Constitution of India has guaranteed some fundamental rights to the citizens and
has also laid down certain directive principles of state policy for the achievement of a
social order based on justice, liberty, equality and fraternity. The Constitution amply
provides for the upliftment of labour by guaranteeing certain fundamental rights to all.
Article 14 lays down that the State shall not deny to any person equality before the
law or the equal protection of laws. Traffic in human beings and forced labour, and
the employment of children in factories or mines or other hazardous work is
prohibited. The directive principles, though not enforceable by any court, are
nevertheless fundamental in the governance of the country, and it shall be the duty of
the State to apply those principles in making laws from time to time. The Government
of India, therefore, enacted a series of legislations to protect the working class from
exploitation and to bring about improvement in their working and living conditions.
The goals set in our country by the Constitution have a bearing on industrial
legislation and adjudication.
Definitions
Appropriate Government: It means, in relation to trade unions whose objects are not
confined to one State, the Central Government, and in relation to other trade unions,
the State Government.
Executive: It means the body, by whatever name called; to which the management of
the affairs of a trade union is entrusted.
Office-Bearer: It includes any member of the executive thereof, but does not include
an auditor.
Trade Dispute: It means any dispute between employers and workmen, or workmen
and workmen, or employers and employers, which is connected with the employment
or non-employment or the terms of employment or the conditions of labour, of any
person. This definition is almost similar to the definition of the term “industrial
dispute” under the Industrial Disputes Act, 1947.
Workmen: It includes all persons employed in trade or industry whether or not in the
employment of the employer with whom the trade dispute arises.
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Trade Union: It means a combination, whether temporary or permanent, formed: Constitutional and
Legal Framework of
i) primarily for the purpose of regulating the relations between workmen and Industrial Relations:
employers; or between workmen and workmen; or between employers and Conventions, ID Act,
employers; or Trade Union Act
ii) for imposing restrictive conditions on the conduct of any trade or business, and
includes any federation of two or more trade unions.
The Act, however, does not affect
i) Any agreement between partners as to their own business;
ii) Any agreement between an employer and those employed by him as to such
employment; or
iii) Any agreement in consideration of the sale of the goodwill of business or of
instruction in any profession, trade or handicraft.
In common parlance, a trade union means an association of workers in a particular
craft or industry. However, the expression “trade union” under the Act includes both
employers’ and workers’ organisations. Employers’ organisations can also be
registered as trade unions. The intention behind this is to place both on a par in
matters of rights and responsibilities. It is primarily the object of an association or
combination which determines whether it is a trade union or not.
Cancellation of Registration
A certificate of registration of a trade union may be withdrawn or cancelled by the
Registrar in the following circumstances:
i) on the application of the trade union to be verified in such manner as may be
prescribed; or
ii) if the Registrar is satisfied that -
a) the certificate has been obtained by fraud or mistake; or
b) the trade union has ceased to exist; or
c) has wilfully and after notice from the Registrar contravened any provision
of the Act; or
d) allowed any rule to continue in force which is inconsistent with any such
provision; or
e) has rescinded any rule providing for any matter, provision for which is
required in the rules of a trade union; or
f) if the registered trade union of workmen ceases to have the requisite
number of members.
If the cancellation is to be effected on account of clause (ii) above, the Registrar shall
give to the trade union not less than two months’ previous notice in writing, specifying
the ground on which it is proposed to withdraw or cancel the certificate.
Appeal
If the registration of a trade union is refused or if a certificate of registration is
withdrawn or cancelled, any person aggrieved or the trade union may appeal to the
court. The appeal must be filed within sixty days of the date on which the Registrar
passed the order against which the appeal is made.
Where the head office of a trade union is situated within the limits of a presidency
town, the appeal lies to the High Court. This means there is only one right of appeal
against the decision of the Registrar refusing registration of a trade union. There is no
provision for a second appeal.
Where the head office is situated in any other area, the appeal lies to such court, not
inferior to the court of an additional or assistant judge of a principal civil court of
original jurisdiction, as the appropriate government may appoint in this behalf for that
area. In the event of the dismissal of an appeal by any such court, the person
aggrieved shall have a right of appeal to the High Court. The High Court shall, for the
purpose of such appeal, have all the powers of an appellate court. This means that a
trade union having its head office in areas other than presidency towns has two rights
of appeal, i.e., first, to the local court exercising original jurisdiction and then to the
High Court against the decision of the local court.
33
Conceptual Framework of The appellate court may dismiss the appeal, or pass an order directing the Registrar to
Employment Relations register the union and to issue a certificate of registration, or set aside the order for
withdrawal or cancellation of the certificate, as the case may be. The Registrar shall
comply with such order of the court.
For the purpose of an appeal, an appellate court shall follow the same procedure and
have the same powers as it follows and has when trying a suit under the Code of Civil
Procedure, 1908. It may direct by whom the costs of the appeal shall be paid and such
costs shall be recovered as if they had been awarded in a suit under the said code.
Notices
All communications and notices to a registered trade union may be addressed to its
registered office. Notice of any change in the address of the head office shall be given
within 14 days of such change to the Registrar in writing, and the changed address
shall be recorded in the register.
General Fund
The general funds of a registered trade union shall not be spent on any objects other
than the following:
a) The payment of salaries, allowances and expenses to the office-bearers of the
trade union;
b) The payment of expenses for the administration of the trade union, including the
audit of the accounts of the general funds of the trade union;
c) The prosecution or defence in any legal proceeding to which the trade union or
any member thereof is a party, when such prosecution or defence is undertaken
for the purpose of securing or protecting any rights of the trade union;
d) The conduct of trade disputes on behalf of the trade union or any member
thereof;
e) The compensation of members for loss arising out of trade disputes;
f) The allowances to members or their dependents on account of death, old age,
sickness, accident or unemployment of such members;
g) The issue of or the undertaking of liability under policies of assurance on the
lives of members, or under policies insuring members against sickness, accident
or unemployment;
h) The provision of educational, social or religious benefits for members (including
the payment of the expenses of funeral or religious ceremonies for deceased
members) or for the dependents of members;
i) The upkeep of a periodical published mainly for the purpose of discussing
questions affecting employers or workmen as such;
34
j) The payment of contributions to any cause intended to benefit workmen in Constitutional and
general. The expenditure on such contributions in any financial year shall not at Legal Framework of
Industrial Relations:
any time during that year be in excess of 1/4th of the combined total of the gross Conventions, ID Act,
income which has up to that time accrued to the general funds and of the balance Trade Union Act
at the credit of these funds of the trade union during that year;
k) Subject to any conditions; any other object notified by the appropriate
government in the Official Gazette.
If the union funds are spent on any objects other than those specified, the expenditure
will be unlawful and ultra vires the Act. The union can be restrained by injunction
from applying its funds for any such object.
Political Fund
A registered trade union may constitute a separate fund for political purposes from
which payments may be made for the promotion of the civic and political interests of
its members. This fund may be utilised only in furtherance of the following objects:
a) The payment of any expenses incurred by a candidate or prospective candidate
for election as a member of any legislative body constituted under the
constitution or under any local authority; or
b) The holding of any meeting or the distribution of any literature or documents in
support of any such candidate or prospective candidate; or
c) The maintenance of any person who is a member of any legislative body
constituted under the constitution or under any local authority; or
d) The registration of electors or the selection of a candidate for any legislative
body constituted under the constitution or under any local authority;
(e) The holding of political meetings of any kind, or the distribution of political
literature of any kind.
Expenditure for political purposes is in no case permitted out of the general funds. Not
only this, even interest on investments of the political fund will have to be credited to
the political fund.
The conditions for the creation of political fund are:
i) The fund can be created only from contributions separately levied for or made to
that fund.
ii) Members must not be compelled to contribute to the fund.
iii) A member who does not contribute to the said fund must not be excluded from
any benefits of the trade union, or placed under any disability or disadvantage,
directly or indirectly, as compared with other members of the trade union, except
in relation to the control or management of the political fund.
iv) Contribution to the political fund must not be made a condition for admission to
the trade union.
Rights of Unions
Any registered trade union may, with the consent of not less than two-thirds of the
total number and subject to certain conditions, change its name.
Any two or more registered trade unions may amalgamate with or without the
dissolution or division of the funds of such trade unions, or either or any of them,
provided that –
i) The votes of at least half of the members of each or every such trade union
entitled to vote are recorded; and
ii) At least 60 percent of the votes recorded are in favour of the proposal.
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In the case of a change of name, the secretary and seven members of the union must Constitutional and
give a notice in writing to the Registrar; in the case of an amalgamation, the secretary Legal Framework of
Industrial Relations:
and seven members of each and every union which is a party to such amalgamation Conventions, ID Act,
must give notice to the Registrar. If the Registrar is satisfied that the change of name Trade Union Act
is in order, and that the new name does not resemble that of any other existing trade
union, he will register the change of name in his register. The change of name or the
amalgamation has effect from the date of registration.
When a registered trade union is dissolved, notice of the dissolution signed by seven
members and by the secretary of the trade union shall, within 14 days of the
dissolution, be sent to the Registrar. It shall be registered by him if he is satisfied that
the dissolution has been effected in accordance with the rules of the trade union.
Dissolution shall have effect from the date of such registration.
Returns
There shall be sent annually to the registrar, on or before such date as may be
prescribed, a general statement, audited in the prescribed manner, of all receipts and
expenditure of every registered trade union during the year ending 31st December
preceding such prescribed date, and of the assets and liabilities of the trade union
existing on 31st December. The statement shall be prepared in such form and shall
comprise such particulars as may be prescribed.
Together with the general statement, there shall be sent to the Registrar a statement
showing all changes of office-bearers made by the trade union during the year to
which the general statement refers, together also with a copy of the rules of the trade
union corrected up to the date of the dispatch thereof to the Registrar.
A copy of every alteration in the rules of a registered trade union shall be sent to the
Registrar within 15 days of the alteration.
The Act provides for offences and penalties.
Definitions
Appropriate Government: “Appropriate Government” means in respect of industrial
establishments under the control of the Central Government or a Railway
Administration or in a major port, mine or oilfield, the Central Government, and in all
other cases the State Government.
Certifying Officer: “Certifying Officer” means a Labour Commissioner, or a
Regional Labour Commissioner, and includes any other officer appointed by the
appropriate government, by a notification in the Official Gazette, to perform all or any
of the functions of a certifying officer under the Act.
Appeal
An aggrieved party may appeal to the appellate authority within thirty days from the
date on which the copies of the standing orders were sent to the parties by the
certifying officer. The order of the appellate authority shall be final.
The Act empowers the appellate authority to do only two things, namely:
i) Confirm the standing orders in the form certified by the certifying officer, or
ii) Confirm the standing orders after amending them by making the necessary
modifications or additions.
The certified standing orders become enforceable on the expiry of 30 days from the
date on which the authenticated copies of the same are sent to the parties by the
certifying officer. If an appeal has been filed, it shall come into operation on the expiry
of 7 days from the date on which copies of the order of the appellate authority are sent
to the parties.
Acts of Misconduct
The following acts or omissions on the part of a workman shall amount to
misconduct:
i) wilful insubordination or disobedience, whether or not in combination with
another, of any lawful and reasonable order of a superior;
ii) going on an illegal strike or abetting, inciting, instigating or acting in
furtherance thereof;
iii) wilful slowing downing in performance of work, or abatement or instigation
thereof;
iv) theft, fraud or dishonesty in connection with the employer’s business or
property or the theft of property of another workman within the premises of
the establishment;
v) taking or giving bribes or any illegal gratification;
vi) habitual absence without leave, or absence without leave for more than ten
consecutive days or overstaying the sanctioned leave without sufficient grounds
or proper or satisfactory explanation;
vii) late attendance on less than four occasions within a month;
viii) habitual breach of any standing order or any law applicable to the
establishment or any rules made there under;
ix) collection without the permission of the manager of any money within the
premises of the establishment except as sanctioned by any law for the time
being in force;
40 x) engaging in trade within the premises of the establishment;
xi) drunkenness, riotous, disorderly or indecent behaviour on the premises of the Constitutional and
establishment; Legal Framework of
Industrial Relations:
xii) commission of any act subversive of discipline or good behaviour on the Conventions, ID Act,
premises of the establishment; Trade Union Act
Obligations of Employers
i) Submit draft standing orders with the required information to the Certifying
Officer for certification within the time limit mentioned in the Act.
ii) Act in conformity with the certified standing orders in the day-to-day dealings
with the workmen.
iii) Modify certified standing orders only with the approval of the Certifying Officer.
iv) Post prominently the text of the certified standing orders near the entrance and
also in all departments where workmen are employed. 41
Conceptual Framework of v) Pay subsistence allowance to the charge-sheeted employee during suspension
Employment Relations pending enquiry as per the Act and the Rules.
Obligations of Workmen
1) Work in conformity with the certified standing orders or model standing orders as
the case may be.
2) Comply with the provisions of the Act in regard to modification and
interpretation of standing orders.
Miscellaneous
If any question arises as to the application or interpretation of a standing order
certified under this Act, any employer or workman or a trade union or other
representative body of the workmen may refer the question to any one of the labour
courts constituted under the Industrial Disputes Act, 1947. The decision of the labour
court shall be final and binding on the parties.
There is no provision under the Act for appointment of inspectors for the enforcement
of the provisions of the Act.
42
Definitions Constitutional and
Legal Framework of
The following are some of the important definitions: Industrial Relations:
Conventions, ID Act,
Appropriate Government: It means: Trade Union Act
43
Conceptual Framework of It is a settled law that before any dispute between an employer and his workmen can
Employment Relations be said to be industrial dispute under the Act, it must be sponsored by a substantial
number of workmen. In other words, it is only a collective dispute that can constitute
an industrial dispute. The person regarding whom the dispute is raised must be one in
whose employment, non-employment, terms of employment or conditions of labour,
the parties to the dispute have a direct or substantial interest.
Where any employer discharges, dismisses, retrenches or otherwise terminates the
services of an individual workman, any dispute or difference between that workman
and his employer connected with, or arising out of, such discharge, dismissal,
retrenchment or termination shall be deemed to be an industrial dispute
notwithstanding that no other workman nor any union of workmen is a party to the dispute.
An individual workman whose services are terminated can now raise an industrial
dispute and take his case to the conciliation machinery or approach the Government
for a reference of the dispute to adjudication. The object is to give an individual
dispute relating to discharge, dismissal, retrenchment or otherwise termination, the
status of an industrial dispute.
Wages: ‘Wages’ means all remuneration capable of being expressed in terms of
money, which would, if the terms of employment, expressed or implied, were fulfilled,
be payable to a workman in respect of his employment, or of work done in such
employment, and includes:
i) such allowances (including dearness allowance) as the workman is for the time
being entitled to;
ii) the value of any house accommodation, or of supply of light, water, medical
attendance or other amenity or of any service or foodgrains or other articles;
iii) any travelling concession;
iv) any commission payable on the promotion of sales or business or both.
but does not include:
a) any bonus;
b) any contribution paid or payable by the employer to any pension fund or
provident fund or for the benefit of the workman under any law for the time
being in force;
c) any gratuity payable on the termination of his service.
Workman: “Workman” means any person, including an apprentice employed in any
industry, to do any skilled or unskilled manual, supervisory, operational, technical or
clerical work for hire or reward, whether the terms of employment be expressed or
implied, and for the purposes of any proceeding under this Act in relation to an
industrial dispute, includes any such person who has been dismissed, discharged or
retrenched in connection with, or as a consequence of, that dispute or whose dismissal,
discharge, or retrenchment has led to that dispute, but does not include any person:
i) Who is subject to the Army Act, 1950 (46 of 1950), or the Air Force Act, 1950
(45 of 1950), or the Navy (Discipline) Act, 1934 (34 of 1934); or
ii) Who is employed in the police service or as an officer or other employee of
prison; or
iii) Who is employed mainly in a managerial or administrative capacity; or
iv) Who being employed in a supervisory capacity, draws wages exceeding rupees
1,600 per mensem or exercises, either by the nature of the duties attached to the
office or by reason of the powers vested in him, functions mainly of a managerial
nature.
44
Unless a person is employed in an industry, he will not be a workman within the Constitutional and
meaning of the definition. Similarly, a person who performs supervisory work and Legal Framework of
Industrial Relations:
draws wages exceeding rupees 1,600 per mensem is not a workman. Conventions, ID Act,
Trade Union Act
Authorities under the Act
Works Committee: The Act empowers the appropriate government to require an
employer of any industrial establishment where 100 or more workmen are employed
or have been employed on any day in the preceding twelve months to constitute a
works committee. This committee consists of representatives of the employer and of
the workmen engaged in the establishment, provided that the number of
representatives of the workmen is not less than the number of representatives of the
employer. The representatives of workmen shall be chosen from among the workmen
engaged in the establishment and in consultation with their trade union, if any,
registered under the Trade Unions Act, 1926. The duty of the works committee is to
promote measures with a view to securing and preserving amity end, to comment upon
matters of their common interest or concern and endeavour to compose any material
difference of opinion in respect of such matters.
Conciliation Officers: The appropriate government may appoint conciliation officers
charged with the duty of mediating in, and promoting the settlement of, industrial
disputes. A conciliation officer may be appointed for a specified area or for a specified
industry in a specified area, and his appointment may be permanent or temporary.
Board of Conciliation: In a similar manner, a board of conciliation may also be
constituted to promote the settlement of industrial disputes. A board shall consist of a
chairman and two or four other members, as the appropriate government thinks fit.
The chairman shall be an independent person and the other members shall be persons
appointed in equal numbers to represent the parties to the dispute on the
recommendation of the parties concerned. If any party fails to make a recommendation
within the prescribed time, the appropriate government shall appoint such persons as
it thinks fit to represent that party.
Conciliation proceedings before a board are similar in nature to those before a
conciliation officer. But members of the boards of conciliation enjoy more powers than
those enjoyed by conciliation officers. However, unlike a conciliation officer, the
board cannot admit a dispute in conciliation on its own; the board has no jurisdiction
until the government makes a reference to it.
Courts of Inquiry: The appropriate government may constitute a court of inquiry
consisting of one or more independent persons to enquire into any matter connected
with or relevant to an industrial dispute. Where a court consists of two or more
members, one of them shall be appointed as chairman.
Labour Courts: The appropriate government may constitute one or more labour
courts to adjudicate industrial disputes relating to any of the following matters
(Second Schedule):
i) The propriety or legality of an order passed by an employer under the standing
orders;
ii) The application and interpretation of standing orders;
iii) Discharge or dismissal of workmen, including retirement of, or grant of relief to,
workmen wrongfully dismissed;
iv) Withdrawal of any customary concession or privilege;
v) Illegality or otherwise of a strike or lockout; and
vi) All matters other than those specified in the Third Schedule.
45
Conceptual Framework of A labour court shall consist of one person only with necessary judicial qualifications,
Employment Relations and will be appointed by the appropriate government.
Industrial Tribunals: The appropriate government may, by a notification in the
Official Gazette, constitute one or more industrial tribunals to adjudicate industrial
disputes relating to any matter, whether specified in the Second Schedule or in the
Third Schedule.
The Third Schedule provides for the adjudication of the following matters:
i) Wages, including the period and mode of payment;
ii) Compensation and other allowances;
iii) Hours of work and rest intervals;
iv) Leave with wages and holidays;
v) Bonus, profit-sharing, provident fund and gratuity;
vi) Shift working otherwise than in accordance with standing orders;
vii) Classification by grades;
viii) Rules of discipline;
ix) Rationalisation;
x) Retrenchment of workmen and closure of establishment; and
xi) Any other matter that may be prescribed.
National Tribunals: The Central Government may, by a notification in the Official
Gazette, constitute one or more national industrial tribunals for the adjudication of
industrial disputes which, in the opinion of the Central Government, involve questions
of national importance or are of such nature that industrial establishments situated in
more than one State are likely to be interested in, or affected by, such disputes. A
national tribunal shall consist of one person only to be appointed by the Central
Government.
Notice of Change
Before effecting any change in the conditions of service relating to wages, contribution
to provident fund, hours of work and rest intervals, compensatory and other
allowances, leave with wages and holidays, introduction of new rules of discipline,
withdrawal of any customary concession or privilege as given in the Fourth Schedule,
the employer should give 21 days’ notice to the workmen likely to be affected by the
proposed changes. No such notice is required if the change is effected in pursuance of
any settlement or award. But the appropriate government may exempt certain
industries from giving such notice, if it is of the opinion that such a change may affect
the employers prejudicially or may cause serious repercussions on the industry
concerned or that the public interest so requires.
Reference of Disputes
If an industrial dispute exists or is apprehended, the government may, by order in
writing:
a) Refer the dispute to a board to promote a settlement of dispute;
b) Refer any matter connected with or relevant to the dispute to a court of inquiry;
c) Refer the dispute to labour court or tribunal for adjudication; and
d) The Central Government may refer the dispute to the national tribunal if it
involves any question to national importance.
46
If a workman dies during the pendency of the proceedings, his legal heirs have the Constitutional and
right to continue the proceedings. Legal Framework of
Industrial Relations:
Voluntary Reference of Disputes to Arbitration: Section 10-A provides for the Conventions, ID Act,
voluntary arbitration of industrial disputes. Where any industrial dispute exists or is Trade Union Act
apprehended and the employer and the workmen agree to refer it to arbitration, they
may, at any time before the dispute has been referred to a labour court or tribunal, by
a written agreement, refer it for arbitration to such person or persons as may be
specified in the arbitration agreement. When an arbitration agreement provides for a
reference of the dispute to an even number of arbitrators, the agreement shall provide
for the appointment of another person as umpire. If the arbitrators are equally divided
in their opinion, the award of the umpire shall prevail and shall be deemed to be the
arbitration award. A copy of the arbitration agreement shall be forwarded to the
appropriate government and the conciliation officer. The appropriate government shall
publish the agreement in the Official Gazette within one month from the date of its
receipt.
The essential features of voluntary arbitration are:
i) There should be an existing or apprehended industrial dispute;
ii) The reference should be made before the dispute has been referred under Section
10 to a labour court, an industrial tribunal or national tribunal; and
iii) The names of the person or persons to act as arbitrator or arbitrators must be
specified in the arbitration agreement. Such persons may be presiding officers of
labour courts, tribunals or national tribunals.
Penalties
The Act provides for penalties for illegal strikes and lockouts, for instigation to
participate in an illegal strike, for giving financial aid for illegal strikes and lockouts,
for breach of settlements and awards, for disclosing confidential information, and
penalty for closure without notice.
53
Conceptual Framework of Miscellaneous
Employment Relations
Offence by Companies: Where a person committing an offence under this Act is a
company, or another body corporate, or an association of persons (whether
incorporated or not), every director, manager, secretary, agent or other officer or
person concerned with the management thereof shall, unless he proves that the offence
was committed without his knowledge or consent, be deemed to be guilty of such
offence.
Pendency of Proceedings: During the pendency of any conciliation proceeding before
a conciliation officer or a board or any proceeding before an arbitrator or a labour
court or tribunal or national tribunal in respect of an industrial dispute, no employer
shall:
a) In regard to any matter connected with the dispute, alter, to the prejudice of
workmen concerned in such dispute, the conditions of service applicable to them
immediately before the commencement of such proceeding; or
b) For any misconduct connected with the dispute, discharge or punish, whether by
dismissal or otherwise, any workman concerned in such dispute, save with the
express permission in writing of the authority before which the proceeding is
pending.
During the pendency of any such proceeding in respect of an industrial dispute, the
employer may, in accordance with the standing orders applicable to a workman
concerned in such dispute (or, where there are no such standing orders, in accordance
with the terms of the contract, whether express or implied, between him and the
workman):
a) Alter, in regard to any matter not connected with the dispute, discharge or
punish, whether by dismissal or otherwise, that workman; provided that no such
workman shall be discharged or dismissed unless he has been paid wages for one
month and an application has been made by the employer to the authority before
which the proceeding is pending for approval of the action taken by the
employer.
b) For any misconduct not connected with the dispute, discharge or punish, whether
by dismissal or otherwise, that workman; provided that no such workman shall
be discharged or dismissed unless he has been paid wages for one month and an
application has been made by the employer to the authority before which the
proceeding is pending for approval of the action taken by the employer.
No employer shall, during the pendency of any such proceeding in respect of an
industrial dispute, take any action against any protected workman concerned in such
dispute:
a) By altering, to the prejudice of such protected workman, the conditions of service
applicable to him immediately before the commencement of such proceedings; or
b) By discharging or punishing, whether by dismissal or otherwise, such protected
workman, save with the express permission in writing of the authority before
which the proceeding is pending.
A protected workman in an establishment means a workman who being a
member of the executive or other office bearer of a registered trade union connected
with the establishment, is recognised as such in accordance with rules made in this
behalf.
In every establishment, the number of workman to be recognised as protected
workman shall be one per cent of the total number of workmen employed therein,
subject to a minimum number of 5 protected workman and a maximum number of 100
54 protected workmen, and for the aforesaid purpose, the appropriate government may
make rules providing for the distribution of such protected workmen among various Constitutional and
trade unions, if any, connected with the establishment and the manner in which the Legal Framework of
Industrial Relations:
workmen may be chosen and recognised as protected workmen. Conventions, ID Act,
Power to transfer certain proceedings: The government may, by an order in writing Trade Union Act
withdraw any proceeding before any labour court or tribunal or national tribunal and
transfer it to any other authority.
Recovery of money due from an employer: Where any money is due to a workman
from an employer under a settlement or an award or otherwise, the workman may
make an application to the government for recovery of the dues within a period not
exceeding three months. If the government is satisfied that the money is due, it shall
issue a certificate to the collector, who shall recover the amount as if it were arrears of
land revenue.
Representation of parties: A workman or an employer, who is a party to an
industrial dispute, may be represented in any proceedings under the Act by an officer
of a registered trade union or by an officer of the association of employers
respectively. But no party to an industrial dispute is entitled to be represented by a
legal practitioner in conciliation proceedings. However, a party to a dispute may be
represented by a legal practitioner in proceedings before a court or tribunal with the
consent of the other party and with the permission of the adjudicator.
Power to exempt: The appropriate government is vested with the power to exempt
any industrial establishment or undertaking, carried on by a department of that
government, from all or any of the provisions of the Act. Before the appropriate
government grants exemption it has to be satisfied that adequate provision exist for
the investigation and settlement of industrial disputes in respect of workmen employed
in such establishment or undertakings.
Protection of action taken under the Act: No suit, prosecution or legal proceeding
shall lie against any person for anything which is done, or intended to be done, in good
faith in pursuance of this Act or any rules made there under.
Power to make rules: The appropriate government may, subject to the condition of
previous publication, make rules for the purpose of giving effect to the provisions of
this Act.
Obligations of Employers
1) Constitute Works Committees and provide all facilities for their proper working.
2) Implement all agreements, settlements and awards, and produce all documents
and render other assistance for conciliating and adjudicating disputes.
3) Desist from declaring any illegal lockout.
4) Pay lay-off, retrenchment and closure compensation as required under the Act.
5) Avoid any change in service and employment conditions without giving 21 days
notice.
6) Maintain status quo during pendency of disputes in conciliation and adjudication
as laid down in the Act.
7) Avoid unfair labour practices.
Obligations of Workers
1) Abide by the agreements or settlements arrived at in conciliation, and awards
given by the tribunals and arbitrators.
2) Desist from declaring or instigating any illegal strike.
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Conceptual Framework of 3) Cooperate with all authorities set up under the Act in resolving disputes
Employment Relations amicably and expeditiously.
4) Refrain from committing unfair labour practices specified under the Act.
3.8 CASE
For twenty years the textile workers of a company were represented by a single union.
But after a thirteen week strike, the relationship between the parties became strained.
Subsequently, a new union began organising employees and after acquiring majority
status, it requested the management to start negotiating with it on certain demands of
the workmen. The company refused to recognise the union and also to negotiate with it.
The union filed an application in the court alleging unfair labour practice on the part
of the chief executive of the company. According to it, the chief executive urged some
of the members of the union to withdraw from the same. Further it was pointed out
that on different occasions he told the union members that the union’s only weapon
was a strike, and that the last strike had nearly ruined the employees and the company.
He also warned that the company was still not financially secure and that a strike
might result in the closure of the company. He also denounced the union and its top
officials concerned as corrupt and strike prone. Further he added that the textile
workers’ age and lack of education would make it difficult for them to find alternative
jobs.
In case of hearing, the company agreed with the statements made by it but defended
them on the ground that they were pre-requisites for smooth running of the company.
Discussion Question:
If you were a judge, how would you decide the case?
3.9 SUMMARY
It is gratifying to note that apart from the fundamental rights, our Constitution
embodies within itself, in Part IV, Directive Principles of State Policy. The functions
and duties of the States as contained in the directive principles have given rise to the
concept of social justice. The old idea of laissez faire has given place to a new idea of
welfare state. The philosophy of social, economic and political justice have been given
a place of pride in our Constitution, as well as in the aims and objectives of ILO. The
development and growth of industrial law presents a close analogy to the development
and growth of constitutional law. A series of labour enactments covering labour
welfare and social security were enacted for protecting and promoting the overall
welfare of different categories of working class. The Central and some State
Governments have enacted laws on industrial relations. The three enactments by the
Central Government in the field of industrial relations are: (a) the Trade Unions Act
which provides for registration of trade unions; (b) the Industrial Employment
(Standing Orders) Act which makes provision for certification of standing orders; and
(c) the Industrial Disputes Act which lays down a machinery for the prevention and
settlement of industrial disputes.
5) What is the procedure for certification of standing orders under the Industrial
Employment (Standing Orders) Act?
6) What are the omissions and commissions on the part of a workman which
amount to misconduct?
7) What are the provisions regarding strikes and lockouts under the Industrial
Disputes Act?
8) What are the provisions under the Industrial Disputes Act for settlement of
industrial disputes?
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