INDUSTRIAL DISPUTES &

ACT

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 CASE 1: MISSING EVIDENCE
Aditya was hired by an auto parts manufacturer for its maintenance function.
He has excellent knowledge of the machines and the production people
value his advice.
However Aditya is a thoroughly incompetent worker. He is often late, takes
longer breaks than anybody else, works very slowly, makes lots of
mistakes and leaves other people to clear up after him.
The Plant manager, Sudhir, put up with Aditya for two years until finally he
found an adequate replacement. Then he tried to fire him. But Aditya
complained to his union that his dismissal was unfair because he had
never had a performance appraisal to warn him that his work was
unsatisfactory. In fact, he said self-righteously, in the absence of a formal
appraisal he felt entitled to assume his work was well up to standard.
The company does have and annual written performance evaluation system,
but Aditya’s immediate supervisor, Krishna, just never seems to get round
to doing the appraisals; and in fact hasn’t done any for the last three
years. Every time he gives and average rating to all maintenance people
and the organization gives increments and hike accordingly.
The question now is, what arguments can Sudhir and Krishna, come up with,
to satisfy the union representative that Aditya’s dismissal is justified? Can
they do it? Or will they be stuck with Aditya for ever? 2
Case 2: The ethical dilemma
Assume that you work for a midsized non-union
company. The firm is facing its most serious union-
organising campaign in years, and your boss is
determined to keep the union out. He has asked you
to do the following:
 He wants you to look at the most recent performance
evaluations of the key union organisers and to
terminate the one with the lowest overall evaluation.
 When you question the ethics and legality, he
explained that if the union wins, the company might
close down its Indian operations altogether and mover
to low cost foreign plants.
 What would most managers do? What would you do?
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DEFINITION OF INDUSTRIAL
DISPUTES

 According to Section 2 (k) of the Industrial

Disputes Act, 1947 “industrial dispute” is
defined as,

 “Any disputes or differences between

employers and employers, 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”
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PARTIES TO INDUSTRIAL
DISPUTES

 Employers and Employers

 Employers and Workmen

 Workmen and Workmen

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EFFECTS OF INDUSTRIAL
DISPUTES

 On the Economy
 On the Employer

 On the Employees

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Some facts and figures
 http://labourbureau.nic.in/ID%202k7%20Chap%201%20Tab%201(

 http://labourbureau.nic.in/ID%202k7%20Chap%201%20Tab%201(

 http://labourbureau.nic.in/ID%202k7%20Chap%202%20Tab%202(

 http://labourbureau.nic.in/ID%202k7%20Chap%204%20Tab

 http://labourbureau.nic.in/PBLS%202k8%20Tab%205.1.htm

 http://labourbureau.nic.in/ID%202k7%20Chap%202%20Tab%202(

 http://labourbureau.nic.in/ID%202k7%20Chap%204%20Tab%204(
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Disputes caused by Unions/ Workers
 Pay related issues
 Non-cooperation/ Indicipline

 Hostility

 Unwillingness to negotiate

 Absenteeism, alcoholism or high rate of

accidents
 Go slow tactics

 Demonstrations

 Strikes

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Disputes caused by Management actions

 Abusive towards workers

 Lay-offs
 Lockout
 Suspension, termination
 Pay related issues

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Who can raise an Industrial Dispute?
 Any person who is a workman employed in an
industry can raise an industrial dispute. 
 A workman includes any person (including an
apprentice) employed in an industry to do
manual, unskilled, skilled, technical, operational,
clerical or supervisory work for hire or reward.
  It excludes those employed in managerial or
administrative capacity. 
 Industry means any business, trade, undertaking,
manufacture and includes any service,
employment, handicraft, or industrial occupation
or avocation of workmen.
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Essentials of an Industrial Dispute?
 It must affect a large group of workmen
 It should invariably be taken up by the industry
union or by an appreciable number of workmen
 There must be a concerted demand by the
workers for redress and the grievance becomes
such that it turns from individual complaint to a
general complaint
 If the dispute was in the beginning an individual
dispute and continued to be such till referred
for adjudication, it can not be converted into
industrial dispute by later support from other
workmen 11
Essentials of an Industrial Dispute….
A workman can raise a dispute directly
before a Conciliation Officer in the
case of discharge, dismissal,
retrenchment or any form of
termination of service.  In all other
cases listed at 2 above, the dispute
has to be raised by a Union /
Management.

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Classification/ Types of ID
 Interest disputes: arrising out of deadlocks
in negotiation for collective bargaining
 Grievance disputes: may pertain to
discipline, wages, working time, promotion,
rights of supervisors etc. also some times
called interpretation disputes
 Unfair labour practices: those arising out
of right to organise, acts of violence, failure
to implement an award,discriminatory
treatment, illegal strikes and lockouts
 Recognition disputes: over the rights of a
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TU to represent class or category of workers
WEAPONS USED BY LABOUR

 Strike
 Boycott

 Picketing

 Gherao

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Typology of strikes
 Primary Strike
 Generally aimed against the employer
 Secondary strike
 Pressure is applied not against the primary
employer but to aid others or support other
striking employees in their cause

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Types of strikes
 Stay away strike
 Sit down or stay in strike

 Tool down or pen down strike

 Token strike or protest strike

 Lightening strike

 Go-slow strike

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WEAPONS USED BY
MANAGEMENT

 Lock out
 Termination of Service.

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 DEFINITIONS

 "industry" means any business, trade, undertaking, manufacture or

calling of employers and includes any calling, service, employment,
handicraft, or industrial occupation or a vocation of workmen;

 (j) "industry" means any systematic activity carried on by co-

operation between an employer and his workmen (whether such
workmen are employed by such employer directly or by or through
any agency, including a contractor) for the production, supply or
distribution of goods or services with a view to satisfy human wants
or wishes (not being wants or wishes which are merely spiritual or
religious in nature), whether or not, -

(i) any capital has been invested for the purpose of carrying on such
activity; or
(ii) such activity is carried on with a motive to make any gain or
profit, and includes -

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(a) any activity of the Dock Labour Board

(b) any activity relating to the promotion of sales or

business or both carried on by an establishment, but
does not include­

(1) any agricultural operation except where such agricultural

operation is carried on in an integrated manner with any
other activity (being any such activity as is referred to in
the foregoing provisions of this clause) and such other
activity is the predomi­nant one.
(2) hospitals or dispensaries; or
(3) educational, scientific, research or training institutions; or
(4) institutions owned or managed by organisations wholly or
substantially engaged in any charitable, social or
philanthropic service ; or
(5) khadi or village industries; or
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(6) any activity of the Government relatable to the sovereign
functions of the Government including all the activities carried on
by the departments of the Central Government dealing with
defence research, atomic energy and space; or
(7) any domestic service; or
(8) any activity, being a profession practised by an individual or body
of individuals, if the number of persons employed by the
individuals or body of individuals in relation to such professional is
less than ten ; or
(9) any activity, being an activity carried on by a co-operative society
or a club or any other like body of individuals, if the number of
persons employed by the co-operative society, club or other like
body of individuals in relation to such activity is less than ten ;

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DISPUTE RESOLUTION MACHINERY

Non-adjudicatory
machinery
Work’s Committees
Conciliation
Voluntary arbitration
Court of Inquiry
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WORKS COMMITTEE
Joint Committee with equal number of
employers and employees’ representatives
for discussion of certain common problems.
Sec.3
 Reason’s for weakness
A purely consultative body, whose
recommendations and suggestions are not
binding
 Lack of understanding among workers
 Lack of co-operation among trade unions

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CONCILIATION OFFICER
 Conciliation officer: Government to appoint
conciliation officers for specified industries or
specified areas, whether temporary or
permanent
 Have no power to decide, but strive to find
solution.
 Powers of conciliation officers:
 Power of entry and inspection of premises
 Power to call for and inspect documents

 Report to be submitted within 14 days or less from

commencement

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BOARD OF CONCILIATION
 Usually constituted to handle disputes
involving more complications
 Powers of Board of conciliation:
 Compelling attendance of any person
 Examining on oath

 Compelling production of documents

 Time limit of two month or less

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 Dispute Resolution
Machinery….contd.
Non-adjudicatory machinery
Work’s Committees
Conciliation
Voluntary arbitration
Court of Inquiry
Adjudication:
Labour Court
Industrial Tribunal
National Tribunal

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Labour Courts deal with Industrial Tribunals
deal with
matters pertaining
to discharge and collective
dismissal of disputes such as
workmen, wages, hours of
application and work, leave,
interpretation of retrenchment,
Standing Orders, closure
propriety of orders
passed under
Standing Orders,
legality of strikes of
lock outs etc. 26
Retrenchment Vs Lay-off
 By retrenchment is meant termination of employment by
which employee is discharged of the duties paying
compensation as prescribed under the Industrial Disputes
Act. This refers to a permanent cessation of employment.
The retrenchment compensation is 15 days salary for
every completed year of service of the concerned
employee.
 Lay Off, on the other hand, refers to temporary cessation
of employment due to non availability of power,
materials, breakdown of machinery, over stock, lack of
order etc. The laid off employees will be paid lay off
compensation as prescribed under the ID Act, ie, 50 % of
salary. Once the work is regularised, the employees laid
off will resume work as usual. The days for which they
were laid off will not be counted as break in service but
will enjoy all benefits of continuous service. 
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PROHIBITION OF STRIKES &
LOCK OUTS
 Without giving to the
employer notice of
strike,within six weeks
before striking.
 Within fourteen days of
giving such notice.
 Before the expiry of the
date of strike specified in
any such notice as
aforesaid.
 During the pendency of any
conciliation proceedings
before a conciliation officer
and seven days after the
conclusion of such
proceedings.
 During the pendency of
conciliation proceedings
before a Board and seven
days after the conclusion of
such proceedings.
 During the pendency of
proceedings before a Labour
Court, Tribunal or National
Tribunal and two months, after the
conclusion of such proceedings.
 During the pendency of arbitration
proceedings before an arbitrator
and two months after the
conclusion of such proceedings,
where a notification has been
issued under Sub-Section(3A) of
section 10A
 During any period in which a
settlement or award is in
operation, in respect of any of the
matters covered by the settlement
or award.
Secs.22&23
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 PENALTIES

 Committing unfair labour practices

 Illegal strike and lock-outs
 Instigation etc. for illegal strike or lock-outs.
 Giving financial aid to illegal strikes and lock-
outs.
 Breach of settlement or award
 Closure without 60 days’ notice under Sec.25
FFA
 Contravention of Sec.33 pertaining to change
of conditions of Service during pendency of
dispute etc.
 When no penalty is provided for contravention 29