UNIT II

INDUSTRIAL CONFLICTS
Industrial Disputes Impact Causes
Strikes Prevention
Industrial Peace Government Machinery
Conciliation Arbitration
Adjudication

INDUSTRIAL DISPUTE
According to the Industrial Disputes Act,
1947,
Industrial disputes means any dispute or
difference between employers and employees,
or between employers and workmen,
or between workmen and workmen,
which is connected with the employment
or non-employment
or the terms of employment or with the
conditions of labour, of any person.

FEATURES OF INDUSTRIAL DISPUTES

1.
2.
3.
4.
5.
6.
7.
8.

Industrial conflict is human conflict:

Urge for higher wages and profit
Conflict among workers and employers:
Conflict is not personal:
Limitations of the system:
Labour power:
Conflict of interests:
Profit maximisation:

TYPES OF INDUSTRIAL
DISPUTES

Interest Disputes: disagreements in level of

income, fringe benefits, job security, or other
terms and conditions of employment.
Grievance or Rights Disputes:
- occur due to general disagreements like:
discipline, dismissal, payment of wages,
overtime, time off, demotion, transfer, etc.

TYPES OF INDUSTRIAL DISPUTES

Disputes involving unfair labour practices:

When Trade union members or the workers face
unfair labour practices like interference
Recognition Disputes:
When the management refuses to identify a
certain group of employees or a certain trade
union.

IMPACT OF INDUSTRIAL
DISPUTES

Positive Impact of Industrial Disputes:

1. High Impression:
Disputes bring new impression in the mind of
employees and management
2. New Outlook:
Helps the organization to add some new changes

3. Prompt Solution:
Take prompt initiative for solving the conflict
4. Clear Explanation:
A clear explanation to know the reasons of
conflict,
Nature of the dispute
5. Creativity:
It allows or helps the employees to explore their
creativity.

Negative Impact of Industrial Disputes

1. Feeling of Defeat:
. Dispute creates deprivation in the minds of
employees.
. It affects the level of performance of
employees, reduce morale
. Increase dissatisfaction that ultimately affect
the productivity of the organization.
2. Distance:
.
Creates distance between or among
employees

CAUSES OF INDUSTRIAL DISPUTES

1. Economic factors:
- Demand for higher wages
- Demand for allowances and bonus
- High industrial profits
2. Non-economic factors:
-Working conditions and working hours
- Modernisation and automation of plant and
machinery
- Personnel causes
- Political causes
- Indiscipline:

- Non-recognisation of trade unions:

- Weakness of trade unions:
- Miscellaneous causes:
3. Management Practices:
- Unfair labour practices
- Ineffective supervision:
- Violation of acceptable norms

4. Trade Union Practices:

- Union rivalry
- Non-cooperative approach
5. Legal and Political Factors:
- Multiplicity of labour laws:
- Political interference

FORMS OF INDUSTRIAL DISPUTES

1. STRIKES:
. A strike is a spontaneous and concerted
withdrawal of labour from production
temporarily.
2. LOCKOUTS:
. Under the Industrial Disputes Act, 1947, a
lockout means the temporary closing of place
of employment or the suspension of work.

TYPES OF STRIKES
Primary strikes:
i. Stay Away Strikes: Workmen stay away
from the work place.
- Organize rallies, demonstrations, etc.
ii. Stay-in or sit Down Strikes :
-workmen stay at the work place but they dont
work
iii. Tools Down, Pen Down Strike :
The strikers lay down their tools/ pens

iv. Token or Protest Strikes :

- strike workers do not work for an hour or a
day.
v. Lightening or Wild cat strike :
- the strike is done without any prior notice or
with shortest notice
vi. Go Slow : In this strike, the workers
intentionally reduce the speed of work.
vii. Work to rule : The strikers undertake the
work according to rules or job description

viii. Picketing : Protesting by the workmen in front

of the premises of the employer
ix. Boycott: Disrupting or malfunctioning of the
enterprise.
x. Gherao : Workers imprison their employers on
the premises until their demands are met.
xi. Hunger Strike :
-Done by the leaders of the union or by some
workers
-all at a time for a limited period or up to the
period of settlement of disputes.

2. SECONDARY STRIKES:
Strikes in which the pressure is applied not
against the primary employer
but against some third person who has good
trade relations with him.
Also called as sympathetic strikes:
It is strike against a third party.

3. Other strikes:
i. General strikes: Critical mass of the labour
force in a city.
ii. Political strikes: It is directed against state
and its authorities.
iii. Bandhs: Expect the general public to stay in
their homes and strike work.
iv. Particular strikes: Usually confined to a
single plant or a few plants.

 LEGAL STRIKE A strike called for a valid

purpose and conducted according to law.
ILLEGAL STRIKE A strike conducted for
a reason not recognized by law, or not for a
valid purpose.

CAUSES OF STRIKE
1. Victimisation of membership
2. Trade union recognition
3. Closed shop
4. Dispute over long hours or work
5. Dismissals, suspension, lay-off
6. Working arrangement and conditions
7. Wage disputes
8. Assaults, abuses and misbehaviours
9. Internal union disputes

Causes of strikes:

10. Discipline and other factory rules

11. Grievances
12. Lack of fringe benefits
13. Job insecurity
14. Lack of promotional programmes
15. Unequal workloads
16. Monotony
17. Improper personnel policies
18. Improper placement in jobs.

FEATURES OF LOCK-OUTS
1. Counterpart of strike:
2. Closure of an industrial undertaking:
3. Suspension of employment:
4. Involves some intention:
Effects of Lock Outs:
. Leads to resentment, fear, and distrust among
employees
. Adversely effects employees families
. May result in permanent replacement of striking
workers
. The entire community suffers a massive economic loss
. Damage goodwill of the company.

PREVENTION OF STRIKES
1.
Adopt
well-defined,
clear
and
progressive HRM policies
2. Ensure an effective administration and
timely implementation of these policies
3.
Ensure
an
effective
two-way
communication system in operation
4. Should provide just and humane
conditions of work
5. Adopt a suitable and speedy grievance
redressal procedure
6.
Should
give
recognition
to
a
representative union
7. Should ensure joint consultation at

RESOLUTION OF INDUSTRIAL DISPUTES

Disputes resolution is the process of resolving
or managing a dispute by sharing each sides
needs and adequately addressing their interest
so that they are satisfied with the outcomes.
Two methods:
1. Prevention or non-statutory machinery
2. Government or statutory machinery.

PREVENTION MACHINERY OF INDUSTRIAL

DISPUTES
Industrial peace means that the causes of
industrial disputes should be eliminated.
Preventive steps should be taken.
Methods:
1. Negotiation: One of the commonest
approaches used to make decisions and
manage disputes.
2. Trade Unions: Strong trade unions help
present industrial disputes relating to wages,
benefits, job security

3. Joint consultations: Two ways of joint consultation

are there:
i. Works Committees: The industrial Dispute Act,
1947
- requires the employer to constitute a works
committee
- consisting of equal representatives of employers
and workmen engaged in the industrial
establishment
- to promote amity and good relations
ii. Joint Management Councils:
- JMC with representatives of management,
technicians and workers was emphasized.

4. Standing Orders: It refers to rules and

regulations, which govern the condition of the
employment of workers.
5. Grievance Procedure: It is the formal
mechanism
for
dealing
with
employee
grievances.
6. Code of Discipline: It aims at preventing
disputes by providing for voluntary and mutual
settlement of disputes through negotiations
7. Mediation: It is a process for resolving conflict
in which an impartial third party assists
disputants will negotiate
8. Collective Bargaining: It is the most effective
method of resolving industrial disputes.

GOVERNMENT MACHINERY FOR

SETTLEMENT OF INDUSTRIAL DISPUTES
Government should activate the industrial
settlement
machinery
when
preventive
machinery fails.
1. Conciliation: The parties to a dispute agree
- to utilise the services of a conciliator,
-who then meets with the parties separately
-in an attempt to resolve their differences.

2. Arbitration:
It is a legal technique for the resolution
of disputes outside the courts
where the parties to a dispute refer it
to one or more persons,
by whose decision [award], they agree
to be bound.

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

NEGOTIATION

Negotiation is a means of achieving ones

goals in every relationship regardless of the
circumstances.
FEATURES OF NEGOTIATION:
There are two or more parties
Conflict of interest
Largely a voluntary process
Notion of give and take
Mutual fulfilment of needs
Use of strategies to influence the other party
Management of intangibles

TYPES OF NEGOTIATION
1. Distributive negotiations:
. Zero sum
. Win lose
. Substance only
. Unimportant relationship
2. Integrative negotiations:
. Interest-based bargaining
. Win-win bargaining
. Fair process

PROCESS OF NEGOTIATION
1. Preparation and planning:
- Nature of the conflict
- History leading to negotiations
- Persons involved and their perceptions
- Expectations from negotiation
2. Definition of ground rules:
- Person doing the negotiation
- Place of negotiation process
- Applicable time constraints
- Issues to which negotiation is to be limited
- specific procedure to follow if impasse is reached

3. Clarification and justification:

Both the parties will explain, amplify, clarify
support and justify their original demands
Need not be confrontational
Opportunity for educating and informing each
other on the issues
Provide the other party with any
documentation to support its position

4. Bargaining and problem solving:

Actual give and take in trying to hash out an
agreement
Where both parties will need to make
concessions.
5. Closure and implementation:
Formalising the agreementworked out
Developing any procedures that are necessary
for implementation and monitoring
Closure is nothing more formal than a handshake.

FACTORS INFLUENCING NEGOTIATION PROCESS

1. Personal factors:
2. Role factors:
3. Situational factors:
- Physical Components
- Social components
- Issue components
- Interpersonal orientation
4. Interactional factors:

IMPORTANCE OF NEGOTIATION
1.
2.
3.
4.
5.
6.

Helps in conflict resolution:

Helps in cost reduction:
Strengthens and maintains better relationship
Provides competitive advantage:
Find solution to problem:
Helps in finding alternative:

MEDIATION
Mediation is one way of making direct and
immediate contact with other in a manner
Features of Mediation:
1. Voluntary: It is conducted without prejudice to
any legal rights which the parties may have.
2. Control: Parties do not give away the power to
decide the outcome of their dispute.

3. Confidential:
- Information is kept confidential.
4. Flexibility:
- There are no set rules or binding
laws
5. Parties Input:
- Agreements reached at result from
the parties themselves
-and are not imposed

MEDIATION PROCESS
1. Opening the mediation:
. The mediator discusses the process and
describes the mediators role,
. the roles of the participants,
. and the general expectations for the
mediation.
2. Information sharing and issue
identification:
. Each party has an uninterrupted
opportunity issues
. To describe the conflict from his or her
perspective.

3. Exchange and negotiation:

Issues are clarified
options for resolving the dispute are identified
and discussed.
4. Agreement and Conclusion:
The mediation proceedings are usually
summarized in writing.
It includes the final agreements reached,
may be confidential or part of a public record

APPROACHES TO MEDIATION:
1. Evaluative approach: Mediator provides
guidance for settlement, legal framework and
subject knowledge
2. Transformative Approach: Assist the parties to
reach an agreement.
i. Empowerment: The parties believe in
themselves and their value
ii. Recognition: The partys have the ability to
understand the other partys point of view to
reflect on the process.

ROLES OF MEDIATOR
1. Opener: who initiates communication or
facilitates better communication
2. Legitimizer: Helps all parties recognise the
right of others
3. Facilitator: Provides a procedure and formally
chairs the negotiation session.
4. Trainer: Educates novice, unskilled, or
unprepared negotiators
5. Resource Expander: Offers procedural
assistance to the parties

6. Problem Explorer: Examine a problem from

a variety of viewpoints,
7. Agent of Reality: Helps build a reasonable
and implementable settlement,
8. Scapegoat: Taking some of the responsibility
or blame for an unpopular decision
9. Leader: Takes initiative to move the
negotiations forward
10. Validator: Help in validating the agreement
by the courts.

IMPORTANCE OF MEDIATION

To find the most appropriate solution

in view of the parties individual
needs and interests.
Helps negotiations without fear of
showing weakness
See the problem in a confidential,
non-threatening atmosphere
Enables business relationships to be
maintained
Enables identification and exploration
of all issues

 Helps disputing parties to regain the

perspective
Provides the opportunity for an unlimited range
of creative and final solutions
Can provide procedural and psychological as
well as substantive satisfaction
Its privacy and confidentiality allows the
parties to negotiate more freely and
productively
It is quicker and cheaper than arbitration and
litigation
It focuses on the future rather than on the rights

CONCILIATION
It is a process by which representatives of
workers and employers
are brought together before a third person or
a group of persons
with a view to persuade them
to come to a mutually satisfying agreement.
Objectives:
1. To settle disputes quickly and prevent
prolonged work stoppages

Prerequisites:
1. The conciliator tries to bridge the gulf
between the parties
2. If he does succeed, he tries to reduce the
differences to the extent possible
3. Persuades parties to take a fresh look at the
whole issue
4. Only advances possible lines of solution for
consideration by the disputants
5. The conciliator need not follow the same path
in each case.

CONCILIATION MACHINERY IN INDIA

1. Conciliation Officer [Section 4]:
. According to the Industrial Disputes Act, 1947,
. the Central and State Governments can appoint a
Conciliation Officer
. to mediate in all disputes brought to his notice.
2. Board of Conciliation [Section 5]:
. It is not a permanent institution like the Conciliation
Officer.
. It consists of a Chairman and two or four other
members nominated in equal numbers by the parties
to the dispute.

3. Court of Inquiry:
In case, the conciliation proceedings fail to resolve a
dispute,
a court of inquiry is constituted by the government
to investigate the dispute and submit the report
within 6 months.
POWERS OF CONCILIATION MACHINERY
1. Powers to Enter premises:
2. Powers of a civil court: Has the same powers as a
civil court like
. Enforcing the attendance of any person and
examining him on oath

 Compelling the production of documents and

material objects
Issuing commissions for the examination of
witnesses
Every inquiry or investigation by a Board and
Court shall be deemed to be a judicial
proceeding within the meaning of Sections 193
and 228 of the Indian Penal Code.

3. Power to call for and inspect documents:

. Enforce attendance of any person
. Inspect documents required
4. Power to appoint assessors:
. Appoint one or more persons having special
knowledge of the matter under
consideration.

DUTIES OF CONCILIATION MACHINERY

1.
.
.
.

Duties of Conciliation Officer:

To hold conciliation proceedings
To investigate the dispute
To send a report and memorandum of
settlement to appropriate government, where
no settlement is arrived at.

2. DUTIES OF BOARD OF CONCILIATION

1. To bring about a settlement of the dispute
2. To send a report and memorandum of
settlement to the appropriate government
3. To send a full report to the appropriate
government setting forth the steps taken by
the board in case
4. To communicate reasons to the parties if no
further references made
5. To submit report within 2 months.

Duties of court of inquiry

A court shall inquire into the matters referred to
it
Report thereon to the appropriate government
within a period of 6 months from the
commencement of the inquiry
Report shall be in writing and signed by all
members of the court.
Court may record any minute of dissent from a
report of from any recommendation
Report together with the minute of dissent
published within a period of 30 days appropiate
government.

WEAKNESSES OF CONCILIATION MACHINERY

1.
2.
3.
4.

Delays: Justice delayed is justice denied

Attitude of parties towards conciliation:
Inadequacy of conciliation:
Quality of personnel:

MEASURES FOR MAKING CONCILIATION

MACHINERY EFFECTIVE

1. The conciliation machinery should be part of

the
proposed
Industrial
Relations
Commission
2. Speedy disposal of cases
3. Avoid delays in the implementation of awards
of labour courts
4. Improve the quality of personnel in the
conciliation machinery
5. Very effective in resolving interest disputes
and not rights disputes.

ARBITRATION
It is the process in which a neutral third party listens to
the disputing parties,
gathers information about the dispute,
and makes a decision to be binding on both the parties.
TYPES OF ARBITRATION:
1. Voluntary arbitration: The arbitrator is appointed by
both the parties through mutual consent.
2. Compulsory arbitration:
Government forces the parties for compulsory arbitration,
- or the Government may refer the dispute for arbitration.

ADVANTAGES OF ARBITRATION
1. Settlement rests on the parties
2. Very flexible
3. Greater familiarity with the characteristics of
the particular industry
4. It cuts down delays
5. Less expensive
6. Awards are capable of implementation without
the grudge on the part of both the parties
7. Results in healthy industrial relations
8. Very popular as it is suitable and compelling

LIMITATIONS

OF

ARBITRATION

1. It deprives of its right to go on a strike

2. Judgement is often arbitrary
3. Biased against labour
4. Its availability leads to less dependence on
negotiation

ADJUDICATION
It is the ultimate remedy for the
settlement of disputes in India.
An industrial dispute can be referred
to adjudication by the mutual
consent of the disputing parties.

The industrial disputes Act 1947, provides

three tier adjudication without the consent of
the parties
1. Labour Courts [Section 7]
2. Industrial Tribunals [Section 7-A]
3. National Tribunals [Section 7-B], for the
settlement of the disputes

LABOUR COURTS
The appropriate government may, by
notification in the official gazette,
constitute one or more Labour courts
for the adjudication of industrial disputes
relating to any matters specified in the Second
Schedule.
A labour court consists of only one person to
be appointed by the appropriate government.
The person so appointed is known as Presiding
Officer of a labour court.

QUALIFICATONS FOR APPOINTMENT

AS JUDGES OF A LABOUR COURT
Section 7(3) of the Act provides that a person shall
not be qualified for appointment as the Presiding
Officer of a labour court, unless
1. He is , or has been, a judge of a high court, or
2. He has, for a period of not less than 3 years, been a
district judge or an additional district judge
3. He has held any judicial office in India for not less
than seven years
4. He has been the Presiding officer of a labour court
constituted under any Provincial Act or State Act
for not less than 5 years

DUTIES OF LABOUR COURT

It deals with disputes relating to:
1. The propriety or legality of an order passed
by an employer under the standing orders
2. The application and interpretation of standing
orders
3. Discharge or dismissal of workers,
4. Withdrawal of any statutory concession or
privilege
5. Illegality of a strike or lock-out
6. All matters except those reserved for
Industrial tribunals.

INDUSTRIAL TRIBUNAL
The appropriate government may, by
notification in the Official Gazette,
Constitute one or more Industrial tribunals for
the adjudication of industrial disputes relating
to any matter,
whether specified in the second schedule or
the third schedule
and for performing such other functions as
may be assigned to them under the Act
It is a one-man adhoc body [Presiding Officer]
appointed by the government.

QUALIFICATION FOR APPOINTMENT AS A

PRESIDING OFFICER OF AN INDUSTRIAL TRIBUNAL

A Person shall not be qualified for appointment

as a Presiding Officer of an Industrial tribunal
unless:
1. He is, or has been, a judge of high court, or
2. He has , for a period of not less than 3 years,
been District judge or an additional district
judge

DUTIES OF INDUSTRIAL TRIBUNAL

It can adjudicate on the following
matters:
1. Wages including the period and mode
of payment
2. Compensatory and other allowances
3. Hours of work and rest periods
4. Leave with wages and holidays
5. Bonus, profit sharing, provident fund
and gratuity

DUTIES OF INDUSTRIAL TRIBUNAL

6. Shift working problems
7. Classification of grades
8. Rules of discipline
9. Rationalization
10. Retrenchment of workman and closure of an
establishment
11. Any other matter that may be prescribed.

NATIONAL TRIBUNAL
This is the third one-man adjudicatory body
to be appointed by the Central Government to
deal with disputes.
It consists of one person not below the rank
of a High Court Judge and below 65 years of
age

POWERS OF ADJUDICATION MACHINERY

1.
2.
3.
4.
5.

Powers to enter premises

Powers of a civil court
Power to appoint assessors
Power to determine the costs
Power in case of discharge and dismissal:

DUTIES OF ADJUDICATION MACHINERY

Where an industrial dispute has been referred to
a Labour court,
National Tribunal for adjudication,
it shall hold its proceedings expeditiously and
shall,
within the period specified in the order referring
such industrial dispute.

DIFFERENCES
ARBITRATION

Arbitration is a voluntary
method of resolving disputes
Only when both the parties
agree the dispute can be
referred to arbitration.
The number of arbitrators are
one or more than one
The issue of notification is
given by the appropriate
government
Arbitration award is amenable
to the jurisdication of the High
court.
No provision for appointment
of assessors

Adjudication
is
a
ADJUDICATION
compulsory method of
solving disputes
The dispute can be referred
by the government for
adjudication without the
consent of the parties of
dispute
Adjudicators is always one
No such provision is there
The award is quasi-judicial
in nature
Appointment of one or two
assessors is allowed.

IMPORTANCE/ADVANTAGES OF
ADJUDICATION
1.
2.
3.
4.
5.
6.

It is dispositive: Gives solutions

It is impartial and principles:
It is authoritative
It is impersonal
It is orderly
It may reduce tensions and buy time:

Arbitration is a voluntary method of

resolving disputes
Only when both the parties agree the
dispute can be referred to arbitration.
The number of arbitrators are one or more
than one
The issue of notification is given by the
appropriate government
Arbitration award is amenable to the
jurisdication of the High court.
No provision for appointment of assessors

 Adjudication is a compulsory method

of solving disputes
The dispute can be referred by the
government for adjudication without
the consent of the parties of dispute
Adjudicators is always one
No such provision is there
The award is quasi-judicial in nature
Appointment of one or two assessors is
allowed.

LIMITATIONS
1.
2.
3.
4.

It involves the risk of losing:

Not impartial
Unpredictable
May freeze the dispute and the parties
options

INDUSTRIAL PEACE
Peace: absence of hostility or the existence of
healthy , harmonious relationship.
Industrial Peace: A condition whereby
differences between labour and management in
the form of strikes and lock-outs were
minimized, if not totally avoided.

OBJECTIVES OF
INDUSTRIAL PEACE

1. Find out ways to solve conflicts or to settle

differences
2. Secure the unreserved cooperation of and
goodwill among different groups in industry
3. Aims at development of a sense of mutual
confidence, dependence, and respect.

MEASURES FOR MAINTAINING

INDUSTRIAL PEACE
1.
2.
3.
4.
5.
6.

Liberal and fair management policy

Satisfactory working conditions
Mutually acceptable personnel policies
Social security and labour welfare measures
Better employer-employee communication
Improvement of employees morale and
motivation

7. Healthy supervision, fair treatment and

impartial treatment of workers
8. Evolution of a strong, representative and
responsible trade union
9. Effective and mutually satisfactory measures.
10. Collective bargaining and establishment of
mutually acceptable agreements.
11. Prevention and settlement of industrial
disputes

IMPORTANCE/ADVANTAGES
INDUSTRIAL PEACE
1.
2.
3.
4.

Ensures smooth and continuous production

Increases cooperation
Reduces industrial strike
Leads to job satisfaction