INDUSTRIAL RELATION - BASIC CONCEPTS 1

8/14/2019 INDUSTRIAL RELATION - BASIC CONCEPTS 1

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PreambleThe ID ACT,1947 has been enacted to make

provisions for the investigation andsettlement of industrial disputes.

To ensure fair terms to the workmen and toprevent disputes between the employers andthe employees so that production might notbe adversely affected and the larger interests

of the public might not suffer.


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Who is an employer ?An employer means every person having in

his, her or its service under a contract ofservice or apprenticeship another person

engaged in work in or about an industry andincludes,

(1)a trustee, receiver, liquidator, executor oradministrator who carries on an industry,

(2)a person who authorizes or permits a learnerto be in or about an industry for the purpose ofundergoing training or probationary work, or

(3)a deemed employer.


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Factors to be considered as

an industryA number of disputes arose as to whether a

particular activity comes within the purview ofthis definiton.

Case : Bangalore water supply & sewerage boardVs Rajappa.

The Supreme Court held as follows : Where there is systematic activity organised by

co-operation between employer and workmen forproduction and / or distribution of goods andservices calculated to satisfy human wants andwishes, prima facie there is an industry in thatenterprise regardless of profit motive or gainfulobjective.The decisive test is the nature of activity

with special emphasis on employer-employee


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Is Cooperative housing

society an industry?

If the bye-laws of the Cooperative housingsociety shows that the object of the society isto carry on trade of buying, selling buildings,there is no doubt that the society is anindustry.


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Is the Irrigation department

an industry?

If there is a systematic and organized activityby the govt. and its employees are satisfyingthe need of irrigation, supply of electricity,etc and such activities are satisfying thehuman needs then it is an industry.


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If a doctor or an engineer employsone person as an assistant will that

establishment be an industry?

There is only one person employed in thatestablishment.Hence it is not an industry

although there may be a systematic activitybeing carried on to provide services to satisfyhuman wants.


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Is hospital an industry?Hospitals are carrying out systematic activities

organized in co-operation between employerand employees, producing and distributingservices that satisfy human wants. Hence it isan industry.


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Do charitable institutions and non-profit org.come within the definition of industry?OR ?

Whether free legal services provided by thelawyers are defined as industry?

Absence of profit motive or gainful objective is

irrelevant, be the venture in the public, joint,private or other sector. If the organizationcarries on the trade or business it does notcease to be an industry because of

Philanthropic act animating the undertaking.


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, ,universities, industriescovered under the industrialdisputes act ?The three factors :-

Systematic activity

Organised by the co-operation of employer andemployees

For the production and distribution of servicesthat satisfy human wants.


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ContdAll the above are present in schools,collegesand universities hence they are industries as

per the definition.

A bill called hospitals and other institutions billwas introduced in Parliament two decadesago.That has not been passed yet.


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Whether clubs, insurancecompanies, charitable projects are

industries as per the definition ?These institutions come under the definition of

industrybecause of the type of activity and

master-servant relationship.


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Who is a workman under this

Act ?Under the ID ACT, a workman is any person

(including an apprentice) employed in anyindustry to do any manual, unskilled, technical,

operational clerical or supervisory work for hire orthe terms of employment be express or

implied,and for the purposes of any proceedingunder this act in relation to an industrial dispute,

includes any such person who has been dismissed ,discharged or retrenched in connection with, oras a consequence of, that dispute, or whosedismissal,discharge or retrenchment has led tothat dispute.


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Who is not a workman in

this act ?Any person

(1)Who is subject to the Air Force Act,1950 or theArmy Act,1950 or the Navy Act,1957.

(2)Who is employed in Police service or as an officeror other employer of a prison.

(3)A person employed mainly in the managerial oradministrative capacity.

(4)A person employed in a supervisory capacitydrawing wages exceeding Rs.1600/- per month,or employed as administrators/managers oremployed as supervisors but performing mainlymanagerial works are not termed as workmenunder this Act.


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What do you mean by a

supervisor ?

An employee whose nature of duties andfunctions areplanning, direction and control

of human beings is a supervisor. Overseeingwork, recommending / sanctioning leave andappraising the performance of subordinateshave been held as important elements of

supervison.


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Mr.X was designated asSupervisor but his nature of work

is clerical. Is he a workman?

Mr.X is a workman since he is performing onlyclerical work but not doing any supervisory

work.Whatever the designation may be, themain criterion is the nature of work only.


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Mr.Y earns Rs.1650/- per month anddesignated as a supervisor. Is he a

workman ?

Mr.Y is not a workman since he earns morethan Rs. 1600 /- and he is performing theduties of a supervisor.


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r. earns s - permonth as a clerk,is he a

workman ?

Mr.Z is a workman since he is doing only theclerical work and not the supervisory

work.The ceiling of Rs. 1600 /- isapplicable only to supervisors.


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. .work was actually directing,planning and initiating new

projects. Is he a workman ?Mr.B is not a workman since he is performing

mainly managerial functions and as already

stated designation is not the only criteria forthe test to decide whether the employee is aworkman or not.

Mr C is a watchman in the Directors


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Mr.C is a watchman in the DirectorsBungalow employed by the company. Ishe a workman ?

Mr.C is a workman since he is employed by thecompany to work in Directors Bungalow andas he is a non- supervisor.

M D i d d i b th B k


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Mr.D is engaged as a driver by the BankManager. The car is maintained by the bank.

The manager gets allowance for the salary of

the driver. Mr. D is a personal driver. Is thedriver a workman of the bank ?

Mr.D is not a workman since he is not directly

employed by the bank. He is employed by theBank Manager and his salary is paid by theBank Manager directly from out of theallowance he gets.


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Mr. E dismissed technician raised adispute with the conciliation officer.Is Mr. a workman ?

Mr.E a terminated workman raising disputeunder this act with the conciliation officer fordismissal is also a workman.


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What is an Industrial

Dispute ? Sec 2(k)An industrial dispute may be defined as a

conflict or difference of opinion betweenmanagement and workers on the terms of

employment.It is a disagreement between an employer and

employees' representative; usually a tradeunion, over pay and other working conditions

and can result in industrial actions.


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Whether the term any person

in the definition of industrialdispute covers every person ??

Any person need not necessarily be aworkman, but he must be a person in whoseconditions of employment etc. the workersare directly or substantially interested or with

whom they have a community of interest.


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Whether a dispute has to be

collective?Generally the dispute has to be a collective

one and it doesnot mean there must be amajority.

Even a minority union or minority group ofworkmen can raise an Industrial Dispute.

However, liberty for an individual workmen toraise an Industrial Dispute has been given

under section 2 (A) in the event of dismissal,discharge or termination otherwise.


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Whether the dispute should

be raised by a union ?

The dispute need not be raised onlyby anunion. Even a group of workmen can raise an

Industrial Dispute.


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Whether the dispute should be

taken up by registered union orrecognized union of a company ?

An unregistered union or an unrecognizedunion in the company may also raise anindustrial dispute.

e er an n v ua


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e er an n v uadispute becomes an

industrial dispute ?All individual disputes under sec 2 (A) are

industrial disputes, but all industrial disputesunder sec 2(k) may not be individual

disputes.(1) Under sec 2 (k) , the difference or dispute

may be between employers and employers; oremployers and workmen; or workmen and

workmen; whereas the difference or dispute,under sec 2(A) is between the employer and anindividual workman only.


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Contd.Subject matter of the dispute or difference,under sec 2(k) , may be connected with theemployment or non- employment or the

terms of employment or with the conditionsof labour of any person;

whereas, under sec 2(A) it should beconnected with, or arising out of an individual

workmans discharge, dismissal,retrenchment or otherwise termination ofservice only.


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ContdThe union of workmen can raise a disputeunder sec 2 (k) with regard to employment,non employment, terms of the employment

or conditions of the labor of any person inrespect of whom the union/ workmen havedirect or substantial interest; whereas anindividual workman cannot raise an industrial

dispute under sec 2 (A) for other workmen.

ow can a sc arge


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ow can a sc argeworkman raise an industrial

dispute ?If a workman feels that he has beenunjustifiably dismissed/retrenched/dischargedhe can send his objections to his employer

and request for reinstatement and he cansend a copy of the same to the conciliationofficerwho will take up the case if it is a fitone.In certain states, a workman aggrieved

on his dismissal, discharge or termination canstraight away raise a dispute in a labourcourt.


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What are the bodies or authoritiesconstituted by the act for

settlement of disputes ?Works committee

Conciliation officers

Boards of Conciliation

Courts of inquiry

Voluntary arbitration

Labor courts

Industrial tribunalsNational tribunals


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Who appoints the workcommittee ?

The act provides for setting up of workscommittee in every industrial establishmentemploying 100 or more workmen.

The composition of works committee isbipartite consisting of equal number ofworkmens representatives as well as theemployers representatives.

Elected from the various groups, categoriesand classes of workmen in consultation withtheir registered union/unions.


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What is the purpose of a

works committee ? The works committee will promote measures

for

securing and preserving amity and good

relations between employers and workmento comment upon matters of their common

interest or concern

to endeavor to compose any materialdifference of opinion in respect of suchmatters.


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Who is the appropriate

government ?It is the Central Govt. in relation to anyindustrial dispute concerning any industrycarried on by or under the authority of the

Central Govt. and any such controlledindustry as may be specified in this behalf bythe Central govt.

In relation to any other industrial dispute in

establishments the State Govt.


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ContdThe govt. having jurisdiction over the area

where the dispute has arisen or apprehendedwould be competent to make a reference inrespect of the industries specified for Central

govt.The govt. may refuse to make a reference on a

consideration of various factors in bonafideexercise of its powers.

There is no time limit to make reference.


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Who appoints the Court of

Inquiry ?

The appropriate govt. appoints the Court ofInquiry.


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Purpose of Court of

InquiryFact finding and the report to the govt. has tobe sent within 6 months from the start ofenquiry.

The court of inquiry cannot decide uponanything.

Its duty is only to enquire into any matterappearing to be connected with or relevant to

any industrial dispute and enlighten the govt.about the opinion of the public on thedispute.


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Who appoints the

Conciliation Officer?The appropriate govt. appoints theConciliation Officer to conciliate, mediate andpromote settlement of industrial disputes.

The conciliation officer is appointed for aspecific industry or specific industry in aspecified area.

Normally conciliation officers are officers of

labor departmentof the app. Govt concerned.


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officer ? (1)The conciliation officer shall, for the purpose of bringing

about a settlement of the dispute without delay investigatethe dispute and all matters affecting the merits and rightsettlement thereof and may do all such things as he thinksfit for the purpose of inducing the parties to come to a fairand amicable settlement of the dispute.

(2) If a settlement of the dispute or of any of the matters in

dispute is arrived at in the course of the conciliationproceedings the conciliation officer shall send a reportthereof to the appropriate Government1[or an officerauthorized in this behalf by the appropriate Government]together with a memorandum of the settlement signed by

the parties to the dispute. (3) If no such settlement is arrived at, the conciliation officer

shall, as soon as practicable after the close of theinvestigation, send to the appropriate Government a fullreportsetting forth the steps taken by him for ascertaining

the facts and circumstances relating to the dispute and forbringing about a settlement thereof, together with a full


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Powers of conciliation

officer ?The conciliation officer has the power tocompel the employer and the workmen topresent the documents

To enforce attendance of parties for theconciliation proceedings.

If he feels that the account books, wage bills,balance sheet are necessary for the dispute

he can insist on production of the same.


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ContdHe has the right to enter the premises, inspectthe location in which the dispute is relatedand can also question the persons concerning

the disputes.The art of the conciliation officer is that he

should be neutral; be fair to both the parties.


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What is a board of

conciliation ?The govt. appoints a board of persons forpromoting the settlement of specificindustrial disputes.

An independent person is appointed asChairman and two or four other membersrepresenting the parties to the dispute in

equal numbers are also appointed.


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Can a board of conciliationimpose an award on partiesto the disputes ?

No, it can only try to bring forth settlement.


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difference between a

conciliation officer and aboard of conciliation ?

Conciliation officer is an executive of

appropriate govt. where as a Board ofconciliation is constituted.

(1) The CO can start the conciliationproceedings on his own initiative in respect of

Public Utility Service; where as a board hasjurisdiction only when the govt. refers thedispute.


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ContdBoard can make recommendations to the govt.for the determination of the dispute; COsubmits either the report on settlement or

failure report to appropriate govt.During the pendency of proceedings before a

board strikes are illegal .Strikes are illegalonly when the dispute relates to a PSU and

conciliation proceedings are pending beforethe CO.


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Contd.If the parties to the dispute with the approvalof the CO agrees that the time limit can beextended, then it can be done.

Conciliation proceedings are concluded whenthe settlement is signed or if a failure reportis received by the govt. from the CO or whenthe Board of conciliation is appointed by the

appropriate govt. or when the dispute isreferred for adjudication by a Labour Court ora Tribunal.


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INDUSTRIAL RELATION - BASIC CONCEPTS 1

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