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Industrial relations & industrial disputes

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Presentation on theme: "Industrial relations & industrial disputes"— Presentation transcript:

1 Industrial relations & industrial disputes

2 Industrial relations refers to relationships between management & labour or among employees & their organizations. Management & labour need to work in spirit of cooperation,adjustment & accomodation. Certain rules for co-existence are formed & adhered to.

3 According to ilo Industrial relations deal with either the relationships between the state & the employers & the workers organization or the relation between the occupational organizations themselves.

4 Parties to IR EMPLOYERS EMPLOYEES EMPLOYER-EMPLOYEE RELATIONS EMPLOYEE
ASSOCIATIONS EMPLOYER ASSOCIATION GOVERNMENT COURTS & TRIBUNALS

5 Factors influencing industrial relations
Government policy ,labor legislation, voluntary courts, collective agreements, employee courts, employers federations Social institutions like community,caste,joint family,creed,system of beliefs,attitudes of works,system of power,status etc Institutional factors Include economic organisations like capitalist,communist ,mixed,structure of labour force,demand for & supply of labour force. Economic factors Include mechanization, automation, rationalization, computerization etc Technological factors

6 Objectives of ir Maintain sound relations
Enhance economic status of worker Avoid industrial conflicts & strikes Opportunity to workers to participate in management & decision making process Raise productivity Curb employee turnover & absenteeism Encourage & develop trade unions Extend & maintain industrial democracy

7 Essential conditions for sound ir
Existence of a strong well organized & democratic employees unions Existence of sound & organized employers unions Spirit of collective bargaining & willingness to resort to voluntary negotiations. Maintenance of industrial peace …machinery for prevention & settlement of industrial disputes. …government provided authority …provision for various committees to implement & evaluate collective bargaining agreements

8 Significance of ir Industrial peace Industrial democracy
Improved productivity Benefits to workers Benefits to management

9 Concept of industrial disputes
According to Industrial disputes Act term “industrial dispute” means “any dispute or difference between employers & employers or between employers & workmen or between workmen & workmen, which is connected with the employment or non- employment or the terms of employment & conditions of employment of any person. Grievance & discipline ..focus on individuals Dispute ..focus on interest of all majority of workmen

10 Principles that judge nature of an industrial dispute
Dispute must affect large number of workmen Dispute taken up by union or substantial number of workmen Grievance turns from individual complaint into general complaint Connection between union & dispute

11 Acc to secA of industrial disputes act 1947
Acc to secA of industrial disputes act workman has right to raise an industrial dispute with regard to termination,discharge,dismissal or retrenchment of his/her service , even though no other workman or any trade union of workman raises it or is a party to the dispute.

12 Forms of industrial dispute
Strikes Lockouts Gherao Picketing & Boycott

13 strikes Spontaneous & concerted withdrawal of labor from production.
Acc to industrial disputes act “suspension or cessation of work by a group of persons employed in any industry, acting in combination or a concerted refusal or a refusal under a common understanding of any number of persons who are or have been so employed to continue to work or accept employment”.

14 Primary strikes Secondary strikes
Aimed against employers with whom dispute exists. Include form of a stay-away strike,stay-in,sit-down,pen-down or tools-down,go-slow,work-to-rule,protest strike Primary strikes Called “sympathy strikes” Pressure is applied not against employer but against third person who has good trade relations with the employer. Employer Incurs losses Popular in USA Secondary strikes

15 Lock-outs Counter part of strikes
While a strike is organized or concerted withdrawal of supply of labor, "lock-out” is withholding demand for it. Weapon available to employer to shut-down place of work till workers agree to resume work on the conditions laid down by the employer. Industrial disputes act 1947 defined “lock- out” as “ the temporary shutting down or closing of a place of business by the employer”.

16 gherao Surround Physical blockade of managers by encirclement aimed at preventing the egress & ingress from & to a particular office or place. Can happen outside premises Managers gheraoed are not allowed to move for long time. Sometimes blockade or confinement are cruel & inhuman Confined person is humiliated with abuses

17 Object of gherao is to compel gheraoed persons to accept workers demands withour recourse to the machinery provided by law. National commission on labour has refused to accept “gherao” as avfrom of industrial protest Workers doing so are guilty under section 339 or 340 of Indian penel code.

18 Picketing Picketing is a method designed to request workers to withdraw co-operation to the employer. Workers through display signs, banners & placards drew the attention of the public that there is a dispute between workers & employer.

19 boycott Aims at disruptin normal functioning of the organization.
Striking worker appeal to others for voluntary withdrawal of cooperation with the employer.

20 Types of industrial disputes
Economic disputes Arise out of terms & conditions of employment either out of the claims made by employees or offers given buy employers. Such offers made with a view to arrive at a collective agreement. Egs : layoffs, claims for wages & bonus, job security, fringe benefits. Interest disputes Arise out of application or interpretation of existing agreements or contracts between employees & management. Relate either to individual or group of workers in the same group. Egs: working time,over-time,seniority,propmotion,demotion,dismissal,discipline,transfer etc Grievance or right disputes

21 If theses grievances are not settled as per procedure laid down then result in embitterment of working relationship & climate for industrial strife & unrest. Often settled through laid down standard procedures like provisions of collective agreement,employment contract,works rule or law or customs.

22 Industrial disputes considered “dysfunctional and “unhealthy”.
Manifested in forms of strikes & lock-outs,l oss of production & property, sufferings to workers & consumers.. Sometimes disputes beneficial when it opens up minds of employers who then provide better working conditions & emoluments to the workers.

23 Causes of industrial disputes
Employment Nationalization Administration-related causes Recognition Sympathetic strikes Psychological /social causes Institutional causes Political causes

24 Consequences of industrial disputes
Loss of production,income,employment Increase in inflation Cost of living Impoverish workers Loss of output

25 Prevention of industrial disputes
Proactive approach to avoid industrial disputes Preventive machinery include various measures like trade unions, collective bargaining , grievance procedure , workers participation in management ,empowerment , health & safety & social security. Additional preventive measures: Joint consultations Standing orders Code of discipline

26 Joint consultations Two important consultative arrangements made to prevent industrial disputes. Work committees Joint management councils

27 Works committees Organizations employing more than 100 or more persons have to set up works committees at unit level. Equal no of representatives from workers & employers Purely consultative in nature

28 Objectives of Works committees
Remove causes of friction in day-day work situation Foster amity & harmonious relationship between parties Create an atmosphere for voluntary settlement of disputes & frictions.

29 Issues related to wages, benefits, bonus,terms & conditions of employment, hours of work, welfare measures, T&D, promotion, transfer fall under works committees purview In India works committees are set up through legislation. TISCO first to set up in 1920.

30 Joint management council
In India came into existence due to provisions in this regard made by Industrial policy resolution, 1956. These councils were set up to enable workers to participate in management & infuse a spirit of cooperation between workers & management.

31 Salient features of jmc
Scheme is voluntary one Minimum 6 & max 12 members ..equal number of representatives from workers & employers. Deal with matters like information sharing, consultative & administrative. Decisions taken by JMC should be unanimous ones. Set up in units employing 500 or more & having strong trade unions.

32 Joint management councils
Works committees Reasons like vagueness regarding their exact scope , functions, inter-union rivalries , union opposition & employees reluctance to utilize these for prevention of disputes rendered works committee ineffective. Joint management councils Factors like reluctance of workers, union rivalries, managements lukewarm attitude etc make JMC ineffective

33 Standing orders Refer to the rules & regulations which govern the conditions of employment of workers. Standing orders are binding on employers & employees. First legislative enactment which incidentally sought to regulate the making of standing orders was Bombay industrial disputes act 1932. Recognizing the need for standardized conditions of employment in factories to develop industrial peace in the country, the Industrial employment(Standing Orders) Act was passed in

34 Role of standing orders
Act provides for framing of standing orders in all industrial undertakings employing 100 or more. Act covers employment matters like classification of employees: permanent, temporary, probationary etc., shift working, hours of work ; attendance & absence rules; leave rules ; termination ; suspension & disciplinary action etc..

35 Labor commissioner or deputy labor commissioner or regional labor commissioner certifies Standing rules. Once certified , it is the binding on employees & employers to abide by these orders. Violation of orders mentioned invites penalties. Act has been amended time to time.

36 Standing orders section 2(g) & 3(2)
Classification of workmen in terms of permanent , temporary , probationer. Mode through which workmen are informed about periods & hours of work, holidays, pay days & wage rates. Work shifts with time duration. Workmen's attendance & late reporting to job. Procedure for leaves & holidays. Starting & closing of works with temporary stoppages

37 Procedure for suspension &/or dismissal of workmen for their misconduct.
Employment termination along with the notice thereof to be given by both employer & workmen Mans of redress for employees against unfair treatment or wrongful exaction on the part of the employer or his agent.

38 Code of discipline Second five year plan suggested a voluntary code of discipline must formulate & then abide by the same. Following this Indian labor Conference in its fifteenth session held in 1958 evolved a code of discipline in industry. Code was duly ratified by national labour organisation like INTUC,AITUC,HMS & also by employers associations like EFI,AIOE,AIMO with effect from June 1,1958.

39 code of discipline . According to code of discipline, both employees & employers voluntarily agree to maintain & create an atmosphere of mutual trust & co-operation in the industry.. Code of discipline provides for that: Strikes & lockouts cannot be declared without prior notice. No party should take any direct action without consulting the other. Existing machinery for the settlement of disputes should be followed

40 In India, Ministry of Labor & employment has evolved a comprehensive code of discipline to maintain discipline & harmony in the industries. However code does not have any legal sanction. When industrial disputes could not be prevented even after adopting various preventive measures, disputes occurred need to be settled at the earliest possible ..”settlement of industrial disputes”.

41 Settlement of industrial disputes
Failure of employees & employers to sort out their differences bilaterally leads to emergence of industrial disputes. Industrial disputes act,1947 provides a legalistic machinery for settlement of such disputes by involving interference of a third party. Settlement machinery consists of 3 methods Conciliation Arbitration Adjudication

42 conciliation Reconciliation of differences between persons.
Refers to the process by which representatives of workers & employers are brought together before a 3rd party with a view to persuading them to arrive at an agreement by mutual discussion between them. Mediation 3rd party…individual , group of people.

43 Features of conciliation
Conciliator or mediator tries to remove difference between parties. Persuades parties to think over the matter with problem-solving approach. Persuades to reach a solution & never imposes own viewpoint. May change his approach from case to case as finds fit depending on other factors.

44 Conciliation machinery in india consists of following
Conciliation officer Board of conciliation Court of enquiry

45 Conciliation officers
App govt appoints Commissioner/additional commissioner/deputy commissioner appointed as conciliation officer for undertakings employing 20 or more persons at state level. Officers from central labor commission office are appointed case of central govt. Conciliation officer enjoys powers of a civil court. Expected to give judgment within 14 days of commencement of conciliation proceedings. Judgment given by him is binding on parties to the dispute.

46 Board of conciliation If conciliation officer fails to resolve..under sec5 industrial disputes act 1947 app govt can appoint board of conciliation. Board not permanent institution Adhoc body ..chairman,2 or 4 members nominated in equal numbers from both sides. Board enjoys powers of civil court Board admits disputes only referred by govt. Follows same conciliation proceedings as above. Judgment in 2 months India rare..most through conciliation officer.

47 arbitration Process in which the conflicting parties agree to refer their dispute to a neutral 3rd party “arbitrator”. Arbitrator gives his judgment on a dispute while conciliator only facilitates disputing parties to reach a decision. Arbitrator does not enjoy judicial powers. Arbitrator listens to viewpoints of conflicting parties & gives his decision which is binding on all parties.

48 Judgment on dispute is sent o government
Government publishes judgment within 30 days of its submission & same becomes enforceable after 30 days of its publication. Two types of arbitration Voluntary arbitration Compulsory arbitration

49 Voluntary arbitration
Both appoint neutral 3rd party as arbitrator Acts when dispute is referred to him. Tripartite national arbitration promotion board July rep employees,employers,govt. Not successful as judgments given by it are not binding on the disputants. Voluntary arbitration Government can force disputing parties to go for it Other form both disputing parties can request government to refer their dispute for arbitration. Judgment given by arbitrator is binding on the parties of dispute. Compulsory arbitration

50 adjudication Ultimate legal remedy for settlement of an unresolved dispute ..reference to adjudication by the government. Government can refer the dispute to adjudication with or without consent of disputing parties. With consent of disputing parties: “voluntary adjudication” When government refers dispute to adjudication without consulting concerned parties “compulsory adjudication”

51 3-tier machinery for adjudication of industrial disputes
Labour court Industrial tribunal National tribunal

52 Labor court Sec 7 industrial disputes act appropriate government by notifying in official gazette may constitute labor court for adjudication Labor court consists of 1 independent person who is presiding officer or has been judge of a High court, or has been district judge or additional district judge not less than 3years..or has been presiding officer of a labor court for not less than 5years.

53 Labor court deals with Property or legality of an employer to pass an order under the standing orders Application & interpretation of standing orders Discharge or dismissal of workers including reinstatement or grant of relief to workmen wrongfully dismissed. Withdrawal of any statutory concession or privilege Illegality of a strike or lockout All other matters than those reserved for industrial tribunals

54 Industrial tribunal Wider jurisdiction
Also constituted for a limited period for a particular dispute on an adhoc basis

55 Matters within jurisdiction Industrial tribunal
Wages including period & mode of payment Compensatory & other allowances Hours of work & rest periods Leave with wages & holidays Bonus ,profit sharing PF & gratuity Classification by grades Rules of discipline Rationalization Retrenchment of employees and closure of an establishment or undertaking.

56 National tribunal 3rd one man adjudicatory body appointed by central government by notification in official Gazette for adjudication of industrial disputes of national importance. Central govt may appoint 2 persons as assessors to advise national tribunal.


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