Machineries to reduce / smoothen Industrial Disputes - Industrial Relations Management

Machineries for smooth industrial relations solve industrial disputes they are of three types

  1. voluntary in built
  2. Through mediators arbitrators.
  3. By Adjudication.
  1. Voluntary in built
    1. Works committee:
    2. The Industrial Dispute Act, 1947 has provided for the establishment of works committees. In case;of any industrial establishment in which 100 or more workers are employed, a works committee consisting of employees and workers is to be constituted; it shall be the duty of the Works Committee to promote measures for securing and;preserving amity and good relations among the employees and workers.

    3. Workers participation in management:
    4. Workers’ participation in management is an essential ingredient of industrial democracy. The concept of workers participation in management is based on “Human Relations” approach to management which brought about new set of values to labour and management.

      According to one view, workers participation is based on the fundamental concept that the ordinary workers invest his labour in, and ties his fate to, his place of work and, therefore, he has a legitimate right to have a share in influencing the various aspects of company policy”. According to G.S. Walpole, participation in management gives the workers a sense of importance, pride and accomplishment; it gives him the freedom and the opportunity for self-expression; a feeling of belonging to his place of work and a sense of workmanship and creativity. It provides for the integration of his interests with those of the management and makes him a joint partner in the enterprise”.

      The forms of workers participation in management vary from industry to industry and country to country depending upon the political system, pattern of management relations and subject or area of participation. The forms of workers participation may be as follows:

      1. Joint Consultation Modes
      2. Joint Decision Model
      3. Self Management, or Auto Management Scheme
      4. Workers Representation on Board
    5. Collective Bargaining :
    6. Collective Bargaining is a process in which there preventatives of the employer and of the employees meet and attempt to negotiate a contract governing the employer-employee-union relationships. Collective Bargaining involves discussion and negotiation between two groups as to the terms and conditions of employment

  2. Through mediators arbitrators
    1. Conciliation officers.
    2. Conciliation refers to the process by which representatives of;employees and employers are brought together before a third party with a view to discuss, reconcile their differences and arrive at an agreement through mutual consent. The third party acts as a facilitator in this process. Conciliation is a type of state intervention in settling the Industrial Disputes.The Industrial Disputes Act empowers the Central & State governments to appoint conciliation officers and a Board of Conciliation as and when the situation demands The appropriate government may, by ;notification in the official gazette, appoint such number of persons as it thinks fit to be the conciliation officer.The duties of a conciliation officer are:

      1. To hold conciliation proceedings with a view to arrive at amicable settlement between the parties concerned.
      2. To investigate the dispute in order to bring about the settlement between the parties concerned.
      3. To send a report and memorandum of settlement to the appropriate government.
      4. To send a report to the government stating forth the steps taken by him incase no settlement has been reached at.

      The conciliation officer however has no power to force a settlement. He can only persuade and assist the parties to reach an agreement. The Industrial Disputes Act prohibits strikes and lockouts during that time when the conciliation proceedings are in progress.

    3. Arbitrators:
    4. A process in which a neutral third party listens to the disputing parties,gathers information about the dispute, and then takes a decision which is binding on both the parties. The conciliator simply assists the parties to come to a settlement, whereas the arbitrator listens to both the parties and then gives his judgment

  3. Advantages of Arbitration:
    • It is established by the parties themselves and therefore both parties have good faith in the arbitration process.
    • The process in informal and flexible in nature.
    • It is based on mutual consent of the parties and therefore helps in building healthy Industrial Relations.
    • Delay often occurs in settlement of disputes.
    • Arbitration is an expensive procedure and the expenses are to be shared by the labour and the management.
    • Judgment can become arbitrary when the arbitrator is incompetent or biased.There are two types of arbitration:
    1. Voluntary Arbitration:
    2. In voluntary arbitration the arbitrator is appointed by both the parties through mutual consent and the arbitrator acts only when the dispute is referred to him.

    3. Compulsory Arbitration:
    4. Implies that the parties are required to refer the dispute to the arbitrator whether they like him or not. Usually, when the parties fail to arrive at a settlement voluntarily, or when there is some other strong reason, the appropriate government can force the parties to refer the dispute to an arbitrator.

  4. Adjudication:
  5. Adjudication is the ultimate legal remedy for settlement of Industrial Dispute. Adjudication means intervention of a legal authority appointed by the government to make a settlement which is binding on boththe parties. In other words adjudication means a mandatory settlement of an Industrial dispute by a labour court or a tribunal. For the purpose of adjudication, the Industrial Disputes Act provides a3-tier machinery:

    1. Labour court
    2. Industrial Tribunal
    3. National Tribunal
  1. Labour Court:
  2. The appropriate government may,by notification in the official gazette constitute one or more labour courts for adjudication of Industrial disputes relating to any matters specified in the second schedule of Industrial Disputes Act.They are:

    • Dismissal or discharge or grant of relief to workmen wrongfully dismissed.
    • Illegality or otherwise of a strike or lockout.
    • Withdrawal of any customary concession or privileges. Where an Industrial dispute has been referred to a labour court for adjudication, it shall hold its proceedings expeditiously and shall,within the period specified in the order referring such a dispute, submit its report to the appropriate government.
  3. Industrial Tribunal:
  4. The appropriate government may, by notification in the official gazette, constitute one or more Industrial Tribunals for the adjudication of Industrial disputes relating to the following matters:

    • Wages
    • Compensatory and other allowances
    • Hours of work and rest intervals
    • Leave with wages and holidays
    • Bonus, profit-sharing, PF etc.
    • Rules of discipline
    • Retrenchment of workmen
    • Working shifts other than in accordance with standing orders

    It is the duty of the Industrial Tribunal to hold its proceedings expeditiously and to submit its report to the appropriate government within the specified time.

  5. National Tribunal:
  6. The central government may, by notification in the official gazette, constitute one or more National Tribunals for the adjudication of Industrial Disputes in

    • Matters of National importance
    • Matters which are of a nature such that industries in more than one state are likely to be interested in, or are affected by the outcome of the dispute. It is the duty of the National Tribunal to hold its proceedings expeditiously and to submit its report to the central government within the stipulated time

All rights reserved © 2020 Wisdom IT Services India Pvt. Ltd Protection Status

Industrial Relations Management Topics