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Machinery for prevention and settlement ofindustrial dispute
By: Chinta Mani Bhattarai
HRM 4th semester
Institute of Banking and Management studies (IB&MS)
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Interest power
Rights
Industrial disputes
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Party X sees mostly RED
PartyYseesmostlyYELLO
W
Employe
ebenefits
Management benefits
Direction ofXs View
Directionof Ys
view
X represents the managementY represents the employees
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The conflict or difference in opinion between employer (management)and employees (workers) on terms of employment.
According to section 2(K) of industrial dispute act 1947, any dispute
between employers and employers or between employers and workmenor between workmen and workmen and which is connected with theemployment and non-employment or the terms of employment or withthe condition of labour.
Industrial dispute?
DisagreementEmployer VS employee representative (i.e, Trade union)
Management may resort to lockoutsWhile
Workers may resort to strikes, picketing or gheraos.
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Causesofindustrialdisputes
Wages,Bonus,Allowances,Conditionsofwork,Workinghours,LeaveandHolidayswithoutpay,UnjustlayoffsandRetrenchments.
Victimizationofworkers,illtreatmentbystaffmembers,sympatheticstrikes,politicalfactorsandindiscipline.
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Causes of
Miscellaneous factors
Inter/intra union rivalry Charter of demandsWork load Standing orders/rules/service conditions/safety
measures
Non implementation of agreements and rewardsetc.
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Percentage distribution of industrial disputesby causesin India
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TrendsofindustrialdisputesinIndia
VIDEO
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MachineryforpreventionandsettlementofindustrialdisputesinIndia
Voluntary method
-Collectivebargaining
-Tradeunions
-Jointconsultants
-Standingorders
-Grievanceprocedure-Codeofdiscipline
Government machinery
Labouradministrationmachinery
-Statelevel-Centrallevel
Statuary measures
-workcommittees
-conciliation(conciliationofficerandconciliationboard)
-arbitration
-Adjudication(Labourcourt,Industrialtribunal,Nationaltribunal)
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Collectivebargaining
Itoccurswhenrepresentativesofunionmeetwithmanagement.
Theymeettodisputesoveremployeewagesandbenefits,tocreateorrevisework
ruleandtoresolvedisputesoflabourcontract.
Itissaidtobecollectivebargaininginthesensethatchosenrepresentativesactas
bargainingagentforallemployeesdealingwithmanagement.
Voluntary method
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Trade union
Trade union acts as negotiator where representatives discuss withmanagement issues which affects people working in an
organization.
Represents the individual members when they have problem atwork, like unfair treat with individuals.
Unions have wealth of information which is useful to people at work.
Thus, trade union activities leads to collective bargaining becausethey tries to find out the solutions of different views.
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Jointmanagementcouncil
Emphasizelabourparticipationinmanagement,andconsistsofequalnumbersof
workersandemployers(minimum6&maximum12).
RepresentationofworkerstotheJMCsshouldbebasedonthenominationbythe
representation.
Objectives
a) Satisfythepsychologicalneedsofworkersb) Improvethewelfaremeasures
c) Increaseworkersefficiency
d) Improvetherelationandassociationbetweenworkers,managersandpromoters.
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Standing orders
Standing orders define and regulate terms and conditions ofemployment and bring about uniformity in them.
It specifies the duties and responsibilities of both employers andemployees thereby regulating standards of their behaviour.
Therefore, standing orders can be a good basis for maintainingharmonious relations between employees and employers.
Under Industrial Dispute Act, 1947, every factory employing 100workers or more is required to frame standing orders in consultationwith the workers. These orders must be certified and displayed
properly by the employer for the information of the workers.
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Grievanceprocedure
Sectionheadshalltrytoresolveandifthisfails
Departmentheadshallintervenetoresolveandifthisfails
Divisionheadintervene,ifthisfail
Complainisreferredtotheunion.
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Code of discipline
Defines duties and responsibilities of employees and workers
It ensures that employees recognize the obligations and rights ofone another.
Promotes co-operation
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Governmentmachinery
Labour administration machinery1. State level2. Central level
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Statutory measures
As per the industrial dispute act 1947, work committees have to besettled all those industrial units which employee 100 or morepersons.
It is basically a consultative body.
Giving greater participation to workers.
Ensuring close interaction between labour and management
Generating cooperative atmosphere for negotiation between parties
Opening the door to union to have a clear view of what is going onwithin the unit
Strengthening the sprit of voluntary settlement of dispute
Work committees
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Conciliation
Conciliationreferstotheprocessbywhichrepresentativesofemployeesandemployers
arebroughttogetherbeforeathirdpartywithaviewtodiscuss,reconciletheir
differencesandarriveatanagreementthroughmutualconsent.Thethirdpartyactsasa
facilitatorinthisprocess.TheIndustrialDisputesAct1947prohibitsstrikesandlockoutsduringthattimewhentheconciliationproceedingsareinprogress.
ConciliationOfficer:Theconciliationofficerhoweverhasnopowertoforcea
settlement.Hecanonlypersuadeandassistthepartiestoreachanagreement.He
issupposedtogivejudgmentwithin14daysofcommencementoftheconciliation
precedings.
Conciliationboard:itisanad-hoc,tripartitebodyhavingapowerofcivilcourtcreated
forspecificdispute(iftheconciliationofficerfailstoresolvedisputewithinatime
frame,conciliationboardisappointed).
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Arbitration
A process in which a neutral third party listens to the disputing parties,gathers information about the dispute, and then takes a decision whichis binding on both the parties. The conciliator simply assists the partiesto come to a settlement, whereas the arbitrator listens to both theparties and then gives his judgment.
There are two types of arbitration:
Voluntary Arbitration: In voluntary arbitration the arbitrator isappointed by both the parties through mutual consent and the arbitratoracts only when the dispute is referred to him.
Compulsory Arbitration: Implies that the parties are required to referthe dispute to the arbitrator whether they like him or not. Usually, whenthe parties fail to arrive at a settlement voluntarily, or when there issome other strong reason, the appropriate government can force theparties to refer the dispute to an arbitrator.
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Adjudication
AdjudicationistheultimatelegalremedyforsettlementofIndustrialDispute.
AdjudicationmeansamandatorysettlementofanIndustrialdisputebyalabourcourt
oratribunal.Forthepurposeofadjudication,theIndustrialDisputesActprovidesa
3-tiermachinery:
Labour court: Dismissalordischargeorgrantofrelieftoworkmenwrongfully
dismissed.Illegalityorotherwiseofastrikeorlockout.Withdrawalofanycustomary
concessionorprivileges.
Industrial Tribunal: Wages,Compensatoryandotherallowances,Hoursofworkandrestintervals,Leavewithwagesandholidays,Bonus,profit-sharing,PFetc.,Rules
ofdiscipline.Retrenchmentofworkmen,Workingshiftsotherthaninaccordancewithstandingorders.
National Tribunal: MattersofNationalimportance.Matterswhichareofanaturesuchthatindustriesinmorethanonestatearelikelytobeinterestedin,orareaffectedby
theoutcomeofthedispute.
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Thank you
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