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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?

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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%2

0Tab%201(I).htm

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

http://labourbureau.nic.in/ID%202k7%20Chap%202%20Tab%202(I)(d).htm

http://labourbureau.nic.in/ID%202k7%20Chap%204%20Tab%204(III).htm

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

http://labourbureau.nic.in/ID%202k7%20Chap%202%20Tab%202(IX).htm

http://labourbureau.nic.in/ID%202k7%20Chap%204%20Tab%204(III).htm

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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

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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 TU to represent class or category of workers

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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 - 18

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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 predomi nant 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 ; 20

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DISPUTE RESOLUTION MACHINERY

Non-adjudicatory machineryWork’s CommitteesConciliationVoluntary arbitrationCourt 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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Non-adjudicatory machineryWork’s CommitteesConciliationVoluntary arbitrationCourt of Inquiry

Adjudication:Labour CourtIndustrial TribunalNational Tribunal

Dispute Resolution Machinery….contd.

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Labour Courts deal with

matters pertaining to discharge and dismissal of workmen,

application and interpretation of Standing Orders,

propriety of orders passed under Standing Orders,

legality of strikes of lock outs etc.

Industrial Tribunals deal with

collective disputes such as wages, hours of work, leave,

retrenchment, closure

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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

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