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The prosperity of any industry very much depends upon its growing production.
Production is possible when the industry functions smoothly without any disturbances.
This means industrial peace through harmonious relationship between labour and
management. Therefore every industrial relations legislatiqn necessarily aims at
providing conditions congeniel to the industrial peace.
Economic justice is another objective of industrial legislation. Almost all
industrial interuptions in production are due to industrial disputes. Dissatisfaction with
the existing economic conditions is the root cause of industrial disputes. The labour
demands for fair return is expressed in varied forms; e.g. increase in wages, resistance to
decrease in wages and grant of allowance and benefits etc. If a labourer wants to achieve
these gains individually, he fails because of his weaker bargaining power against the
sound economic footing of the management. Therefore, the economic struggle of labour
with capital can be fought collectivity by organised labours. It is with this object to
provide economic justice by ensuring fair return to the labour, the State, being the
custodian of public interest, intervenes by 'State legislation' Economic justice has also
been ensured to the people of India by our Constitution.
Thus the main object of all labour legislation is to ensure fair wages and to
prevent disputes so that the production might not be adversely affected2. The principal
objects of Industrial Disputes Act as analyzed and interpreted by the Supreme Court are
as follows.3
(1) The promotion of measures for securring and preserving amity and good
relations between employers and workmen;
(2) Investigation and settlement of industrial dispute between employers and
employers, employers and workmen, or between workmen and workmen with a right of
(ii).
(aa) Arbitrator - Arbitrator includes an umpire.
(aaa) Average Pay - "Average Pay" means the average of the wages
payable to a workmen, Average pay in the case of workmen means:
(i) In the Case of monthly paid workman- The average of monthly
wages payable in three complete calendar months.
(ii) In the case of weekly paid workman - the average of the weekly
wages payable in four complete weeks.
(iii) In the case of daily paid workman - the average of the wages for
twelve full working days.
(b) Award - 'Award' means an interim or final determination of any'
industrial
dispute or of any question relating thereto. The determination must be
made by any Labour Court, Industrial Tribunal or National Tribunal.
Enforcement of an award - An award may be enforced in the following
ways:
(1) The aggrieved party may apply to Appropriate Government for
prosecuting the defaulting party under Sec. 29 or 31 of this Act.
(2) Where the work man 'isto claim money from the employer, the
workman may move the Appropriate Government for recovery of
the money due to him under the award.
(3) The party in whose favour the award has been granted may file a suit
and obtain a decree, which shall be enforced extension under provisions of
the Civil Procedure Code.
Where the interim order did not determine any part of the industrial dispute or
any other question relating there to, but only determined whether the Industrial Tribunal
has been properly constituted to which the industrial dispute could be referred for
adjudication, such order cannot be said to be an award as defined in Sec. 2(b)2
(bb) Banking Company - 'Banking Company' means a banking company
as defined in Sec.5 of the Banking Companies Act, 1949.
(c) Board - 'Board' means a Board of Conciliation constituted under this Act.
(cc) Closure - 'Closure' means the permanent closing down of a place of
employment or part thereof
Penalty for closure (Sec. 25R)
1. Any employer who close down an undertaking without complying with the
provisions of the Sub-Sec. (1) of Sec. 25-0 shall be punishable with
imprisonment up to 6 months, or with fine up to Rs. 5,000 or with both.
2. Any employer, who contravenes a direction given under Sub-sec. (2) of Sec.
25-0 or Sec. 25-P, shall be punishable with imprisonment up to one year,
or with fine up to Rs. 2,000 for every day during which the contravention
continues after the conviction.
3. Any employer who contravenes the provisions of Sub Sec. 25-0 shall be
punishable with imprisonment up to one month, or with fine up to Rs.
1000 or with both.
(d) Conciliation Officer - 'Conciliation Officer' means a conciliation officer
appointed under the Act.
.
(2) the dispute or difference should be connected with (a) employment or . nonemployment, or (b) terms of employment, or (c) conditions of labour
of any person;
.
(3) the dispute may be in relation to any workman or workmen or any other
person in whom they are interested as a body.
(ka) Industrial Establishment or Undertaking - It means an establishment or
undertaking in which any industry is carried on; provided that, where several activities
are carried on in an establishement or undertaking and only one or some of such
activities is or are an industry or industries:
(kk) Insurance Company - According to this sub-section, an insurance is one,
which company is defined in Sec. 2 of the Insurance Act, 1938, having
branches or other establishments in more than one State.
(kka) Khadi - "Khadi" has the meaning assigned to it in clause ( d) of Sec. 2 of
the Khadi and Village Industries Commission Act, 1956.
(kkb) labour Court.- It means a Labour.Court constituted under Sec. 7 of
the Industrial Disputes Act, 1947.
(kkk) lay Off - Means putting aside workmen temporarily. The duration of lay
off should not be for a period longer than the period of emergency. The
employer-employee relationship does not come to an end during the
period of lay-off but is merely suspended during the period of emergency.
Any such refusal or failure to employ a workman may be on account of:
(i) shortage of coal, power or raw materials or
(ii) the accumulation of stock; or
(iii) the breakdown of machinery; or
(iv) natural calamity; or
(v) any other connected reasons.
Prohibition of lay-off (as substituted by Amendment Act; 1984)
According to Sec. 25M of Industrial Disputes Act, 1947, no workman whose
name is borne on the muster rolls of an industrial establishment shall be laid off by his
employer except with the prior permission of the appropriate Government or such
authority, as may be specified by that Government.
Recovery of money due from an employer (Sec. 33C)
Where any money is due to a workman from an employer under a settlement or
an award or for layoff or retrenchment, the workman himself or any other person
authorised by him in writing in this behalf, or in the case of the death of the workman,
his assignee or heirs may, without prejudice to any other mode of recovery, make an
application, within one year from the date on which the money became due to the
workman, to appropriate Government for the recovery of money due to him, and if the
appropriate Government is satisfied that any money is due to him, it shall issue a
certificate for that amount to the Collector who shall proceed to recover the same in the
same manner as an arrear of land revenue.
Penalty for layoff without permission (Sec. 25Q)
Any member who contravenes the provisions of Sec. 25M shall be punishable
with imprisonment for a term which may extend to one month, or with fine which may
extend to Rs. 1000, or with both.
(I)
Lock out - Means the closing of a place of employment, or the
suspension of work, or the refusal by an employer to continue to employ
any number of persons employed by him.
While strike is a weapon in the hands of the labour to force the
management to accept their demands, lockout is a weapon in the hands of
the management to coerce the labour to come down in their demand
srelating to the conditions of employment.
Lockouts has been described by the Supreme Court as the antithesis of
strike.1
Difference between lockout and lay-off:
(1) Lockout is an act on the part of the employer to pressurise the labour; while
layoff is for trade reasons, beyond the control of the employer; i.e., it is not
intentional act.
(2) Lockout is exercised due to an industrial dispute and continues during the
period of dispute; layoff is not necessiorily concerned with dispute with
workmen.
Difference between lock-out and retrenchment:
(1)
(Ia)
permanent. .
(2) Weapon of coercion: Lockout is a weapon of coercion in the hands of
employer; while closure is generally made for trade reasons.
(3) Trade Dispute: Lockout is declared during an industrial dispute, while
in case of closure, there need not be any dispute.
Major Port: Means a port as defined in clause 8 of Sec. 3 of the Indian Port Act.
1903; which reads as follows:
"Any port which the Central Government may by notification in official Gazette
declare or may by any law for the time being in force, have declared to be a
major port".
(I b) Mine: Means a mine as defined in clause (j) of sub-section (1) of Sec. 2 of the
Mines Act, 1952, Which reads as under:
"Mine means any excavation where any operation for the purpose of searching
for or obtaining minerals has been, or is being carried on, and includes, (unless
exempted by the Central Government by notification in the official Gazette) any
premises or part thereof, on which any process ancillary to the getting, dressing
or preparation for sale of mineral or of coke is being carried on :"
(II) National Tribunal: Means a National Tribunal constituted under Sec. 78 of
the Act.
(III) Office Bearer: In relation to a Trade union, it includes any member of the
executive thereof, but does not include on auditor. (m) Prescribed: Means prescribed by
rules made under this act. (n) Public utility services: The following are public utility
services as laid down by the Act :
(i) any railway service;
(ii) any transport service for the carriage of passengers or goods by
air;
(iii) any service in or in connection with the working of any major port
or dock;
(iv) any section of an industrial establishment, on the working of which
the safety of the establishment or the workmen employed therein
. depends;
(v) any postal, telegraph or telephone service;
(vi) any industry which supplies power, light or water to the public; (vii)
any system of public conservancy or sanitation.
(viii) any industry specified in the First Schedule which the appropriate
Government may, if satisfied that public emergency or public
interest so requires, by notification in the Official Gazette declare to
be a public utility service for the purpose of this Act, for such period
as may be specified in the notification.
(0) Railway company - Means a Railway Company as defined in Sec.8 of the Indian
Railway Act, 1890. Sec 3(5) of the Indian Railways Act states, "Railway
Company" includes any person whether incorporated or not who are owners or
lessees of a railway or parties to any agreement for working a railway."Sec. 3(4)
of the Indian Railways Act defines the term "Railway" as. "Railway means a
railway, or any portion of a railway, for the public carriage of passengers,
animals or goods. and includes:
(a) all lines of rails, or branches worked over the purpose of or in connection
with a railway.
(b) all stations, Offices, Workhouses, Wherever, workshops, Fixed plant
and machinery and other works constructed in connection with a railway,
and
(c) all ferries, ships, boats and rafts which are used in inland waters for the
purpose of traffic of railway and belong to or are hired or worked by
the
authority administering the railways." .
(00) Retrenchment - Means the discharge of surplus labour or staff by the employer
of any number of persons who are or have been employed in any industry
to continue to work or to accept employment; or (3) to refusal under a
common understanding of any number of persons who are or have been
employed in industry to continue to work or to accept employment.
Features of strike
(1) It is the stoppage of work by a body of workmen acting in concert with
a view to bring pressure upon the employer to concede to their demands.
(2) The workmen must be employed in any industry.
(3) More cessation of work does not come within the preview of strike,
unless it can be shown that such cessation of work was a concerted action for
the enforcement of an industrial demand1.
Kinds of strike
These are three kinds of strikes, namely: (1) General strike, (2) Stay-in-strike,
and (3) Go slow strike.
(1) General strike: A general strike is one, where the workmen join together
for common cause and stay away from work, depriving the employer of
their labour needed to run the factory.
(2) Stay-in-strike : A stay-in-strike is also known as "total-dawn-strike" or
'pen-dawn-strike". It is the form of strike where the workmen report to
their duties, occupy the premises, but do not work. The employer is
thus prevented from employing other labour to carryon his business.
(3) Go-slow strike: In a 'Go Slow' strike, the .workmen do not stay away from
work, they do come to their work and work also, but with a slow speed in order to
lower down production, and thereby cause loss to the employer.
In addition to these three forms of strike a few more may be cited,
although some of them are not strike within the meaning of Sub-Section
2(q). Such forms are:
(i) Sympathetic strike: A sympathetic strike is resorted to in sympathy of other
striking workmen. Its aim is to encourage or to extend moral support to or
indirectly to aid the striking workmen. The sympathisers resorting to such
strike have no demand of grievance of their own.
(ii) Hunger strike: In hunger strike, a group of workmen resort to fasting on or
near the place of work or the residence of the employer with a view to
coerce the employer to accept their demands.
(iii) Work to rule : The employers in this case of "work to rule" strictly adhere
to rules while performing their duties which ordinarily they do not
observe. This causes the slowing down the tempo of work. It is not a
strike because there is no stoppage of work at all.
(qq) Trade Union: Means a trade union registered under the Trade Union
Act, 1926.
(r) Tribunal: Tribunal means an Industrial Tribunal constituted under Sec.
7 -A of the Act. It also includes an Industrial Tribunal constituted before
10th March, 1957 under this Act.
(ra) Unfair labour practice: It means any of the practices specified in the
Fifth Schedule.
Under Sec 11(6), Conciliation Officers are members of Board or Court and the
Presiding Officer of Labour Court Tribunal or National Tribunal shall be deemed to be
public servants within the meaning of Sec.21 of IPC.
Duties of Conciliation Officers (sec.12):
For the purpose of bringing about fair and amicable settlement of an industrial
dispute, the Conciliation Officer is required to discharge the following duties- .
(1) where any industrial dispute exists or is apprehended, the Conciliation
Officer, shall hold conciliation proceedings. He will interview both the
workmen concerned with the dispute and endeavour to bring about a
settlement.
(2) The conciliation Officer shall, for the purpose of bringing about a settlement
of the dispute, investigate the dispute and all matters affecting the merits
and the right settlement thereof and may do all such things as he thinks fit
for the purpose of inducing the parties to come to a fair
and amicable settlement of the dispute.
.
(3) If a settlement of the dispute or of any of the matters in dispute is arrived at
in the course of the conciliation proceedings, the Conciliation Officer
shall send a report thereof to the settlement singed by the parties
to dispute.
.
(4) If no such settlement is arrived at, the Conciliation Officer shall, as soon as
practicable after the close of the investigation, send to the appropriate
Government a full report setting forth the steps taken by him for
ascertaining the facts and circumstances relating to the dispute and for
bringing about a settlement thereof, together with a full statement
of such facts and circumstances, and the reasons on account of which, in
his opinion, a settlement could not be arrived at.
(5) The report must be submitted within 14 days of the commencement of the
conciliation proceedings or within such shorter period as may be fixed by
the appropriate Government: provided that, subject to the approval of the
Conciliation Officer, the time for the submission of the report may be
extended by such period as may be agreed upon in writing by all the
parties to the dispute.
(6). If, on a consideration of the report in respect of failure of settlement, the
appropriate Government is satisfied that there is a case for reference to
Board, Labour Court, Tribunal or National Tribunal, it may make such
reference. Where the Government does not make such a reference, it shall
record and communicate to the parties concerned it's reasons thereof
3
the services of the Chairman or any other member have ceased to be available, the board
must not act until a new Chairman or member has been appointed.
Powers of Conciliation Officer
Conciliation Officer has all powers of a Civil Court when trying a suit in respect Duties
of Conciliation Officer (Sec.13)
Conciliation Officer has to endeavour to bring about a settlement of a dispute
referred to him and to do anything to induce the parties to come to a fair and amicable
settlement. Where a settlement is reached a similar report and a memorandum of
settlement have to be submitted to the appropriate Government. But in case of failure,
apart from furnishing all the details as required in the case of a report, by a Conciliation
Officer, he is also required to submit his recommendations for tha determination of the
dispute. The time limit prescribed for submission of such reports is 2 months of the date
on which the dispute was referred to him or within such shorter period as may be fixed
by the appropriate Government or all the parties to the dispute may, however, further
extend the period by agreement in writing. Where a dispute, in which the Board has
failed to bring about a settlement, relates to a public utility service and the Government
does not refer it to a Labour Court, Tribunal or National Tribunal, he must inform the
parties concerned the reasons for not doing so.
Courts of Inquiry (Sec.G)
The appropriate Government may, as occasion arises, by notification in the
official Gazette, constitute a Court of Inquiry for inquiring into any matter appearing
to be connected with or relevant to an industrial dispute. Such a Court may consist of
one or more independent persons, as the Government may appoint. Where it consists of
more than one member, one of them shall be appointed as Chairman. The Court having
the prescribed quorum may act even if the Chairman or a member is absent; but not if
the services of the Chairman have ceased to be available, and on other Chairman has
beer' appointed. The Court shall inquire into the matters referred to it and report thereon
to the appropriate Government within 6 months from the date of commencement of the
inquiry.
Members of Court of Inquiry shall deemed to be public servants within the
meaning of Sec. 21 of IPC. The Court of Inquiry, if it so thinks fit, appoint one or more
persons having special knowledge of the matter under consideration as assessor or
assessors to advise it In the proceeding before it.
On a perusal of the relevant Sections 22, 23 and 33 of the Act. relating to the
Court during the pendency of a proceeding before a Court of Inquiry, the following
right remain unaffected, such as:
(i) The right of a workman to go on strike
(ii) The right of an employer to lookout his business. and
(iii) The right of the employer to dismiss or otherwise to punish the workman in
certain cases under Sec.33
Duties of Courts of Inquiry (Sec. 14)
The Court of Inquiry of shall inquire into the matters referred to it and the
report of Inquiry thereon be presented before the appropriate Government; ordinarily
Government. The award of Labour Court shall be in writing and be signed by its
Presiding Officer (Sec.16)
Every award of Labour Court, shall within a period of 30 days from the date of
its receipt by the appropriate Government, be published by if in the official Gazette.
The award published by the. appropriate Government shall be final and binding on the
parties to dispute. Sec.17 -A provides that an award (including arbitration award) shall
become enforceable on the expiry of 30 days from the date of its publication under Sec.
17. The award shall not become enforceable on the expiry of 30 days:
.
(a)
if the appropriate Government is of opinion, in any case where the
award has been given by a Labour Court or Tribunal in relation to an
industrial dispute to which it is a party that it will be in expedient to give
effect to the whole or any part of the award on public grounds effecting: .
(i) national economy, (ii) social justice.
.
(b)
if the Central Government, in any case where the award has been given by
a National Tribunal, on similar grounds in of the opinion that it would be in
expedient to give effect to the whole .or part of the award.
For the purpose of stopping the enforcement of any award, a notification in the
Official Gazette is necessary.
Industrial Tribunals (Sec. 7 A)
. Industrial Tribunals were created for it's first time by the Industrial Dispute
Act.1947. Commenting upon the starts of these tribunal, the Supreme Court has
observed that tribunals under the Act. are invested with many trappings of a Court; but
do not have the same status as courts'. The Tribunal is the judicial body or at any rate, a
quasi-judicial body2.
The appropriate Government may by notification in the Official Gazette,
constitute one or more industrial tribunals for the adjudication of industrial dispute s
relating to any matters specified above as in the case of Labour Court, or the following
matters, namely
(1) Wages including the period and mode of payment (2)
Compensatory and other allowances;
(3) Hours of work and rest intervals;
(4) Leave with wages and holidays;
(5) Bonus, profit sharing, provident fund and gratuity;
(6) Shift working otherwise than in accordance with standing orders; (7)
Classification by grades;
(8) Rules of discipline;
(9) Rationalization;
(10) Retrenchment of workmen and closure of establishment; and (11) Any
other matter that may be prescribed.
A Tribunal shall consist of one person only to be appointed by the appropriate
Government. A person to be appointed as a Presiding Officer of a Tribunal must .be, or
must have been, a judge of a high Court; or if he has for a period of not less than three
years, be a District Judge or on Additional District-Judge. Only experienced persons of
high integrity can be appointed as Providing Officer of the Tribunal. It is provided by
Sec.7-A(4) that the Appropriate Government, if thinks fit, may appoint two persons as
assessors to advise the Tribunal in the proceedings before it.
Industrial Tribunals shall have the same power vested in a Civil Court when
trying a suit, such as: (a) enforcing the attendance of any person and examining him on
oath, (b) compelling the production of document and material object, (c) issuing
commissions for the examination of witness and any such matters as may be
prescribed.. .
National Tribunals (Sec 78)
..
The Central Government may, by 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 a 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. In order to be qualified as a Presiding Officer of a National
Tribunal, a person must be or must have been a Judge of a High Court, or must have
held the office of the Chairman or any other member of the Labour Appellate Tribunal
for at least 2 years. The Central Government may appoint two assessors to advise the
National Tribunal, in proceeding before it. .
Disqualifications for Presiding Officiers of Labour Courts, Tribunals And National
Tribunals (Sec.7 - C).
No person shall be appointed to, or continue in the office of the Presiding Officer
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 five years.
Filling of Vacancies (Sec. 8)
If a vacancy occurs in the office of the Presiding Officer of a Labour
Court, Tribunal or National Tribunal, the appropriate Government shall appoint another
person in accordance with the provisions of the Act. A vacancy
may arise due to transfer resignation or acquisition of any disqualification as provided in
Sec. 7 -C of the Act.
Finality of orders constituting boards (Sec. 9)
The main object of enacting Sec. 9 of the Industrial Disputes Act is to make immune,
any order of the appointment made under Sections 5 to 7 of the Act, from being called in
question. Therefore, no question can be raised whether an appointment was legally and
properly made or not. Sec. 9 (1) of the Act provides that no order of the appropriate
Government or of the Central Government appointing any person as the Chairman or any
other member of the Board or Court, or as the Presiding officer of a Labour Court,
Tribunal or National Tribunal shall be called in question in any manner on the ground of
merely of the existence of any vacancy in, or defect in the constitution of such Board or
Court.
Reference to grievance settlement authorities (Sec. 9-C)
A new Chapter II - B has been instead by Industrial Disputes (Amendment) Act,
1982 whereby a new Sec. 9 - C has- been added But this Chapter has not been enforced
till now.
According to Sec. 9 - C:
(7) Every National Tribunal shall be deemed to be a Court for the purpose of Sec. 480,
482 and 484 of the Criminal Procedure Code, 1948.
Note: The procedure and power of different authorities laid down under Sec. 11 of
the Act, are equally applicable in the case of Conciliation Officers / Board, Court
of Inquiry, Labour Court, And Tribunals.
Persons on whom settlement and awards are binding (Sec. 18)
For this purpose, settlements are classified into two catagories, namely
(i) Settlement arrived at otherwise than in the course of conciliation
proceedings, i.e. without the aid of statutory agency; and
(ii) settlement arrived at in the course of conciliation proceedings; Le. with
the aid of statutory agency.
In the first case, a settlement under Section 18(1) arrived at by agreement
between the employer and workmen otherwise than in the course of conciliation
proceedings, shall be binding on the parties to the agreement. But any such settlement;
in order to be binding must be signed by the parties there to in the manner prescribed by
rule and a copy of it must also be sent the appropriate Government. .
In the second case Sec. 18 (2 and 3) provide that an arbitration award which has
become enforceable shall be binding on the parties to the agreement who referred the
disJ3ute to the arbitration. This section 18(3) provides that
(i) a settlement arrived at in the course of conciliation proceeding under
this Act.
(ii) an arbitration award in a case where a notification has been issued
under sub section (3-A) of Sec. 10-A; or
(iii) an award of a Labour Court, Tribunal or National Tribunal which has
become enforceable shall binding on;
(a) all parties to the in industrial dispute.
(b) all other parties summoned to appear in the proceedings as parties to
the. dispute,
(c) where a party referred to is an employer, his heirs, successors or assigns
in respect of the establishment in which the dispute relates.
(d) where a party referred to in clause (a) or (b) is composed of workmen, all
persons who were employed in the establishment or part of the
establishment, as the case may be, to which the dispute relates on the
date of the dispute and all persons who subsequently become employed
in that establishment or part there of.
Certain matters to be kept confidential (Sec. 21)
This section of the Act. provides that certain matters are to be kept confidential.
Therefore, such things shall not be included in any report or award made under the Act.
Any information obtained by a Conciliation Officer, Board, Court, Labour Court,
Tribunal, National Tribunal or an Arbitrator in the course of any investigation on inquiry,
which relates to a Trade Union on any individual business (whether carried on by a
person, firm or company) which is not available otherwise than through the evidence
given before any such authority, shall not be included in any report or award; if the
parties concerned or in question has made a request in writing to treat such information as
confidential.
REFERENCE OF DISPUTES TO BOARDS, COURTS OR TRIBUNALS
Section 10(1) of the Industrial Disputes Act.,1947 provides that where the
appropriate Government is of the opinion that any industrial dispute exists or
apprehended, it may, at any time:
(a) refer the dispute to a Board of conciliation for promoting a settlement
there of; or
(b) refer any matter appearing to be Connected with or relevant to the dispute to a
Court for Inquiry; or
(c) refer the dispute or any matter appearing to be connected with, or relevant
to the dispute to a Labour Court for adjudication provided the dispute relates to
any matter specified in the Second Schedule; or
(d) refer the dispute or any matter appearing to be connected with or relevant to
the dispute to a Tribunal for adjudication, where it relates to any matter specified
in the Second or Third Schedule., provided that:
(i) where the dispute relates to any matter specified in the Third
Schedule and is not likely to effect more than 100 workmen; the
appropriate Government may make the reference to a Labour Court.
(ii) where the dispute in relation to which the Central Government is the
appropriate Government, it shall be competent for the Government
to refer the dispute to a Labour Court / Tribunal constituted by the
State Government
(iii) where the dispute relates to a public utility service and a notice of
strike or lockout under Sec. 22 has been the appropriate Government
shall be competent to refer the dispute to a Labour Court or any
Industrial Tribunal, Constituted by the Government.
Under Sec.1 0(1-A), the Central Government may refer any dispute to a National
tribunal for adjudication, if it is the opinion that:
(i) any dispute exists or is appended; and
(ii) the dispute involves any question of national importance; or
(iii) the dispute is of such nature that industrial establishment situated in
more than one State are likely to be interested in, or affected by such
dispute; and
(iv) the dispute should be adjudicated by National Tribunal (the reference to
National Tribunal shall be made by the Central Government only).
Sec.10(3) of the Act. provides that where an industrial dispute has been referred to
Board, Labour Court, Tribunal or National Tribunal, under Sec. 10 of the Act, the
appropriate Government may issue an order prohibiting the continuance of any strike or
lockout in connection with such dispute which may be in existence on the date of
reference.
Sec.10(6) of the Act. provides that where any reference has been made under subsection (1-A) to a National Tribunal, then notwithstanding anything contained in this
Act., no Labour Court or Tribunal shall have jurisdiction to adjudicate dicta upon any
matter which is under adjudication before the National Tribunal.
Sections 10 and 1 O-A are the alternative remedies to settle industrial dispute.
Once the parties have chosen the remedy under Sec.1 O-A, the Government cannot refer
the same dispute for adjudication under Sec. 10. If any such reference is made, it is
invalid.1
Voluntary Reference of Disputes to Arbitration (Sec. 10-A)
This section provides that where any industrial dispute exist or is apprehended, the
employer and the workman agree to refer the dispute to arbitration, they may refer the
dispute to arbitration: Such referen<?e by agreement may be made at any time before the
dispute has been referred under Sec.1 0 a Labour Court, Tribunal or National Tribunal.
The agreement to make a reference must be in writing.
Sec. 10-A(1-A) provided that where an arbitration agreement provides for
reference of the dispute to an even number of, arbitrators the agreement shall provide for
appointment of another person as umpire who shail enter upon the reference if the
arbitrators are equally divided in their opinion.
Sec. 1 0-A(2) provides that an arbitration agreement referred to in sub-section (1)
shall be in such form and shall be signed by the parties there to in such a number as may
be prescribed.
Under Sec. 10-A(3) copy of the arbitration agreement shall be forwarded to
appropriate Government and the Conciliation Officer, and the appropriate Government
shall within one month from the date of receipt of such copy publish. the same in the
official Gazette.
Under Sec. 10-A(4) the arbitrator or arbitrators shall investigate the dispute and
submit to the appropriate Government the arbitration award signed by the arbitrator or
all arbitrators as the case may be.
Under Sec.(4-A): where an industrial dispute has been referred to arbitration and
a notification has been issu8d, the appropriate Government may prohibit the continuance
of any strike or lockout in connection with such dispute. The appropriate Government
shall do so by issuing an order.
Sub-sec.(5) provider that nothing in the Arbitration Act. 1940 shall apply to arbitration
under this section.
An arbitrator functioning under Sec.1 O-A of the Act is a statutory Tribunal.
STRIKES AND LOCKOUTS IN INDUSTRIAL UNITS
Strike is collective stoppage of work by workmen undertaken in order to bring
pressure upon the employer. It is a spontaneous and concerted withdrawal of workmen
from production. A strike in usually organized by common agreement on the part of the
workers with a view to obtaining or resisting change to their conditions of work.
Lockout is a weapon in the hands of the employer; which is used to curb the
militant spirit of the workers. In Lock-out, an employer shuts down his place of business
as a result of reprisal, or 2S an instrument of coercion or as a mode of exerting pressure
upon the employees with a view it dictate his own terms to them.
Strikes and lockouts have now become important factors in the employer employee relations.
Prohibition of strikes and lockouts (Sec. 22 and 23)
Sec.22 of the Industrial Disputes Act provides that:
This section of the Act prohibits financial aid to illegal. strikes and lockouts.
This section has the following ingradients: .
(1) spending or applying money:
(2) money spent or applied in direct furtherance or support of an illegal
strike,
Punishments (Sec. 28)
For any violation of provisions of Sec. 25, punishment is imposed by Sec. 28 of
the Act. According to the provision, even a person who is not a workmen can be
penalized violating the provisions of Sec. 25. The effect of Sections 25 and 28 is the
prosecution to support a conviction for breach of Sec.25 must prove that:
.
(i)
the strike or lock-out in question was illegaL
(ii) the accused had knowledge that
(a) the strike or lockout was iIIegal and
(b) the money spent or applied by him was in direct furtherance or
support of a strike or lockout.
(iii) that the money was actually spent or applied by the accused.
However, assistance to strikers in any other from, for example, supplying
clothes, food, etc. is not prohibited under Sec. 25 of the Act.
LAY-OFF AND RETRENCHMENT: COMPENSATION THERE OF
The Industrial Disputes Act, 1947, as originally enacted made no provision for the
payment of "Lay-Off" or "Retrenchment" compensation. Therefore, there were no
uniform rule that can be said to have observed by the adjudicating bodies in the case of
payment of compensation for "lay-off" or "retrenchment". In order to overcome the
situation, the President of India promulgated the Industrial Disputes (Amendment)
Ordinance in Oct., 1953 to the effect from 24th Oct. 1953. The said Ordinance was
repealed and replaced by the Industrial Disputes (Amendment) Act, 1953 took effect
from 23rd Dee ember 1953. According to this amendment, Section 25-A to Section 25-J
were added by this Amendment Act of 1953.
According to Sec. 25A (application of Sections 25-C to 25E inclusive) shall
not apply to industrial establishment to which Chapter V-B applies, or :
(a) to industrial establishment in which less than 50 workmen, on an average
per working day have been employed in the preceding calendar month,
and
(b) to industrial establishment which are of a seasonal character or in which
work is performed only intermittantly.
Thus, where the exemption under Sec 25-A applies, the workmen are not entitled
to lay-off compensation and the Tribunal has no right to grant relief on any fanciful
notices of Social Justice.
Sec 25 B of the Act defines continuous service. Sub-sec.2 defines continuous
service for a period of one year or a period of six months Clause (a) of Sub-Section (2)
provides that a workman. shall be deemed to have been in continuous service for a year,
if
1. he has been in employment for 12 calendar months; and
2. he actually worked for not less than
(a) One hundred and ninety days in the case of a workmen employed below
(3)
Sec. 25-P, shall be permissible with imprisonment for a term which may extend to Rs.
5000/-, or with both. Where the contravention continuous further, with a further which
may extend to Rs. 2000/- for every day during the contravention continues after the
conviction.
No employer or workmen or a Trade Union, whether registered under Trade
Union's Act, 1926, or not, shall commit any unfair labour practice (Sec. 25-T)
Any person who commits any unfair labour practice shall be punishable with
imprisonment for a term which may extend to six months or with fine which may extend
to Rs. 1000/- or with both.
to the gravity of the offence, simply because he has incurred the displeasure of the
employer, or where the punishment is shockingly disproportion to the misconduct.
PENALTIES AND MISCELLANEOUS PROVISIONS
Penalty for illegal strikes and lockouts (Sec. 26)
This section prescribes penalty imposed on any workman who continues or otherwise
acts in furtherance of a strike which is illegal under this Act. Any workman found guilty
of participating in an illegal strike shall be punishable with imprisonment for a term
which may extend to one month or with a maximum fine of 50/-, or with both.
.In the case of employer, sub section (2) of Sec. 26 provides that the employer
shall be punishable with imprisonment extending to one month or with a maximum fine
of Rs. 1000/-, or with both, if:
(1) such employer commences, continues or otherwise; acts in furtherance
of lock-out; and
(2) such lock-out is illegal under the Act.
Penalty for instigation, etc.(Sec. 27):
This section makes the following acts punishable:
(1) Instigation or incitement to others to take part in an illegal strike or
lockout;
(2)
Otherwise acting in furtherance of a strike or lockout which is illegal
under the Act.
Any person, other then employer and workmen, who has no personal interest in a
dispute, instigate or inciting of an illegal strike or lockout is more severely punishable
under the Act. There must be something tangible in evidence to show that the persons are
responsible for instigating or inciting the strike.
Penalty for giving Financial Aid to illegal strike and lockout (Sec. 28)
Any person who knowingly extends or applies any money in direct furtherance or
support of any illegal strike shall be punishable under this section. Punishment may
extend to six months imprisonment, or Rs. 1000/- as fine, or with both.
Penalty for breach of settlement of award (Sec. 29)
In order to be penalised a person under this section, the following facts must be
proved:
(1) An award or settlement was in operation at the time of breach;
(2) Such award or settlement must be valid,
(3)The award or settlement must be binding on the accused,
(4)The accused must be responsible for committing breach of such award or settlement.
(5) The appropriate Government must have made complaint regarding the
breach.
If these requirements are cumulatively fulfilled the accused shall be punishable
with imprisonment extending to 6 months or with fine or with both. If the breach is
continuing a further fine which may extend to two hundred rupees for every day during
which the breach continues after the conviction for the first breach.
Penalty for disclosing confidential Information (Sec. 30)
1.
Economic causes
Economic causes include questions pertaining to wages, bonus and allowances,
retrenchment of workmen by the employer retionalisation and automation, faulty
retrenchment system, leave and so on. Low wages, irrespective of rising prices, demand
for a rise in D.A., intolerable working and living conditions, issues pertaining to hours of
work, etc. are some other economic causes that provoked a number of strikes in India.
The worker factors responsible for industrial unrest have been: (1) Inter union
rivalries, (2) Economic and political environment that exercise adverse effects on workers
attitudes, and (3) Indiscipline amongst workers.
2. Managerial causes
Some of the causes of discontent are inherent in the industrial system, itself
such as:
(1) Workers do not get any opportunity for self-expression; or
(2) Their social needs are not fulfilled; that is. the position of workers within in informal
qroups formed in jndustrial undertakings and problems of conflict within the groups may
not be taken into account.
(3)Lack of communication on one hand, between the workers and management may turn
petty quarrels into industrial unrest and on the other, the problem of discipline in
industrial units may assume serious dimensions.
The other managerial factors responsible for industrial unrest have been as
1. Mental inertia on the part of management and labour.
2. Management's general attitude of hatred towards their workers,
3..Lack of competence on the supervisor and other managers in human relations.
4..Management's desire to pay comparatively lesser amount of bonus or dearness
allowance against the desire of workmen.
5. .Efforts to introduce modernisation without prior or appropriate environment.
6. Excessive work load and inadequate welfare facilities.
7. Defective policy of lay-off.
8. Denial of the workers right to recognize union.
9. Unfair practices like victimization or termination of services without assigning any
reasons.
10.Lack of definite wage policy and stabilization of prices.
12. Lack of a proper policy of union recognition.
13.Denial of worker's right to organise, etc.
Political causes
Industrial disputes are pertly political also. Some important political strikes I organized
by industrial workers in India. Prior to independence, as early , there was a mass strike
in Mumbai against the sentence of imprisonment strikes occurred on account of actions
taken against, for participating in demonstrations, trial of political leaders, etc. After the
independence also, some stirkes have occurred owing to agitation's of political parties
on questions like re-organisation ation of States, National Language, etc. Percentage
distribution of industrial disputes by causes as published by the Ministry of Labour,
Impact/Effect/Consequences of Industrial Disputes
The consequences of Industrial disputes are many. A brief description is given
(1) Disturb the economic, social and political life of a country: When labour and
equipment in the whole or any part of an industry are rendered idle by strike or
lockout, national dividend suffers in a way that injures economic welfare.
Loss of Output:
make them known to the workmen, the Government enacted the Industrial Employment
(Standing Orders) Act, 1946. This Act applies to every industrial establishment wherein
100 or more workers are employed or were employed on any day of the preceding 12
months.
5. Code of Discipline: The Indian Labour Conference at its 15th Session in 1957
evolved a 'Code of Industrial Discipline'. The Code voluntarily binds the employers and
workers to settle all grievances and disputes by mutual negotiations, conciliation and
voluntary arbitration. The main features of this Code include the following.
(1) Both, employers and employees should recognise the rights and
responsibilities of each other.
(2) Neither party will have recourse to coercion, intimidation, litigation and
victimisation, but will settle all disputes through the existing machinery
for the settlement of industrial disputes.
(3) A mutually agreed procedure will be set up and both the parties will
abide by it without taking arbitrary action.
6. Collective Bargaining: It is a form of joint consultation, and a process in
which the representative of the employer and of the employees meet and attempt to
negotiate a contract governing the employer-employees union relationship. It involves
discussion and negotiation between the two groups as to the terms and conditions of
employment. The main object of collective bargaining is to protect the interests of
workers through collective action and by preventing unilateral action on the part of the
employer. It promotes industrial democracy.
7. Works committees: Works committees are the most suitable agency for
prevention of industrial disputes. In most of the countries like India, works committees
are required to the established through legislation.
According to Sec. 3 of the Industrial Disputes Act 1947, in the case of an
industrial establishment in which 100 or more workmen are employed or have been
employed on any day in the preceding 12 months, the appropriate Government may, by
general or special order require the employer to constitute a Works Committee
consisting of representatives of employers and worker engaged in the establishment, the
number of representatives of workmen not being less than that of the employers
representatives, to be chosen in consultation with their trade union, if any.
The duties of the Works Committee are to promote measures for securing and
preserving amity and good relations between the employer and workmen and to
comment upon matters of their interest, and to endeavor to compose any material
difference of opinion in respect of such matters.
8. Workers participation in management: These councils aim at enabling the
workers to participate in management, help them to understand the problems and
difficulties of the industry concerned and bring about better relationship between the
management and labour.
9. Tripartite Bodies/Machinery: Several tripartite bodies have been constituted
at Central and State levels. The Indian Labour Conference, Standing Labour
Committees, Wage Bounds and Industrial Committees operate at the Centre. At the State
Level, State Labour Advisory Bounds have been set up. All these bodies play important
role in reaching at agreements on various labour matters. The recommendations of these
bodies are advisory in nature but carry a great weight on employers, trade unions and
the Government. All these bodies constitute the consultative machinery for the private
sector.
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