Unit -3

Industrial Dispute – Definition

The definition of Industrial disputes is as follows – 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”.

Let us understand that the definition identifies three parties to

disputes.

They are:

1. Employers

2. Employees

3. Workmen.

Workmen Industrial dispute is disagreement and difference

between two disputants, namely, Labour and management. This
disagreement or difference could be on any matter concerning them
individually or collectively. It must be connected with employment
or non-employment or with the conditions of Labour. It should also
be noted that, the subject- matter of an industrial dispute must be
specific, i.e., which affects the relationship of employers and
workers.

Industrial Unrest in India:

Causes and Policy of the
Government
By industrial unrest is meant conflict between employers and workers
in industries.

The industrial labour display their protests in the form of strikes,

gheraos, go slow tactics, demonstrations and so on, whereas the
employers show their might by retrenchment, dismissals, lockouts etc.
Industrial unrest causes industrial recession and decline in national
income.

The major factors behind such unrest in recent times are as

follows.
(a) The trade union leaders try image-building exercises.

(b) Taking advantage of the political instability the country, the trade
union leaders seek concessions from the government and factory
owners.

(c) Rampant trade unionism has led to a deteriorating work culture

among workers.

(d) The New Economic Policy, 1984 empowered the employers to

punish workers by endorsing the methods of lockout.

The share of lockouts in total man-days lost is on the increase. Thus,

there has been a qualitative change in the industrial disputes which
strongly suggests an unfavourable treatment of the labourers.
Causes of Industrial Unrest:
1. Wage Related Issues:
The wage levels in different industries vary tremendously. The
disparity in wages between skilled and unskilled labour is large even
within an enterprise. This is true in both the organised and the
unorganised sectors. The demand for higher bonus has been a major
cause for industrial disputes.

2. Lack of Welfare and Social Security:

Social security measures can be divided into two categories (i) social
insurance and (ii) social assistance. Social insurance schemes are
generally financed by the employees, employers and the State.
However, such welfare measures face the following problems: (a)
insufficient coverage, (b) lack of employment insurance, (c) inherent
bottlenecks of an exit policy, (d) overlapping schemes, and (e) lack of
facilities vis-a-vis requirement of beneficiaries.

3. Improved Working Conditions:

Demand for lesser working hours, better-safety measures, holidays,
leave etc., provoke trade unions to fight against employers.

4. Wave of Globalisation:
The new policy of liberalisation has opened up the avenue of foreign
investment in India resulting in an intense competition in the
economy. The entrepreneurs are often forced to squeeze wages and
push productivity for survival in today’s market-driven economy.
5. New Lifestyles:
The workers are increasingly adopting new urban lifestyles and this is
expensive and requires a larger income for the family. The workers are
often drawn into industrial battle by such compulsions.

6. Low-cost Production Alternatives:

The employers often defeat the purpose of trade unions by searching
out low-cost production alternatives in the form of small-scale
subsidiary units in smaller towns where low wages will do.

7. Rising Wages and Low Productivity:

The big companies often close down their units because labour
productivity often fails to keep pace with inflated wages. Such moves
taken often invite industrial tension.

Policy of the Government:

The Industrial Relations Policy has two basic objectives: (i) prevention
and peaceful settlement of disputes, and (ii) promotion of good
industrial relations via labour management and cooperation.

The first major step was taken in 1947 with the passing of the
Industrial Disputes Act. It provided for (a) a joint working committee
of employers and employees for promotion of good relations between
the parties; (b) the recruitment of conciliation officers by the
government for bringing both the parties together; (c) appointment by
the government of a Board of Conciliation to go into any industrial
dispute and to suggest remedial measures; (d) the appointment of a
Court of Enquiry consisting of one or two independent persons to
investigate the matters of dispute and submit its report to the
government; (e) labour courts to be set up by the state governments to
investigate matters relating to disputed orders of the employers and
dismissals and suspensions of employees by the management.

Beyond these would be the industrial tribunals. These tribunals exist

at state and national levels. The state government has the authority to
adjudicate disputes regarding wages, bonus, sharing of profit, etc., by
appointing one or more industrial tribunal. A person holding the rank
of a High Court Judge is to be on the tribunal. The Central government
appoints the national tribunal for adjudicating disputes which involve
issues of national importance.

Apart from the above methods, the following practices are becoming
common.

Joint Management Councils enable workers to participate in

management, help them to understand industrial problems and bring
about better relations between the management and labour.

The Indian Labour Conference evolved a Code of Discipline in

industry in 1958. According to the code, employers as well as labourers
voluntarily agree to maintain mutual trust and cooperation.

The code listed the following activities in factories:

(a) For declaring strikes and lock-outs prior notice is required.

(b) The parties can take any action only after consulting each other.
(c) There should not be any deliberate attempt to damage plant or
property.

(d) Disputes should be settled speedily.

Several employers and trade unions, which are not members of any
central employees and labour organisation, have accepted the code.

An Industrial Truce Resolution was adopted in November 1962 by a

joint meeting of the central organisation of employers and labourers
so that, during emergency, the production is not slowed down or
interrupted. Both the Industrial Truce Resolution and Code of
Discipline stress on dispute settlement through voluntary arbitration.

The National Arbitration Promotion Board was established in July

1967 by the Government of India to promote voluntary arbitration for
dispute settlement. The Board has representatives belonging to the
employers’ and labourers’ organisations, PSUs, etc. The Board
endeavours to ensure that employers and labourers take voluntary
initiatives to settle disputes.

As an after effect of the liberalization policy of 1991, a National

Renewal Fund (NRF) was set up. The main objectives: (i) providing
assistance to cover the costs of training and re-employing employees
in the event of modernization, technology upgradation and industrial
restructuring; (ii) providing funds for compensating employees
affected by restructuring or closure of industries both in public and
private sectors; and (iii) building a safety net through funds for
employment generation schemes for employers.
Industrial Dispute Act 1947: History,
Objective, Features
Industrial Dispute Act 1947 is the act that conducts Labour regulations for all workers
working on the Indian mainland. This Act came into effect on 1947 April 1. The Industrial
Dispute Act of 1947 regulates Indian Labour law that concerns trade unions as well as
individuals working in any industry in India.

Industrial Dispute Act 1947 is an important act from the UPSC exam point of view. The
Industrial Dispute Act aims to establish a balance of power between management and
Labour, protect the rights of workers, and create a conducive environment for industrial
growth and productivity. In this article, we have covered the Industrial Dispute Act
1947 objectives, features, and controversy in detail.

What is Industrial Dispute Act 1947?

The Industrial Dispute Act 1947 mainly deals with the provisions for the
investigation and settlement of industrial disputes. It extends to the whole of
India. It was enacted shortly after India’s independence and serves as a
framework for maintaining harmonious industrial relations and promoting
social justice in the workplace.

Industrial Dispute Act 1947 Notes

The primary objective of the Industrial Disputes Act is to provide a legal

mechanism for the prevention and settlement of industrial disputes, which
may arise due to various factors such as wages, working conditions,
employment terms, and disciplinary actions. The Industrial Dispute Act 1947
was enacted by Central Legislative Assembly. It was Assented to 11tg March
1947, and it was commenced on 1st April 1947.

Objectives of Industrial Dispute Act 1947

The Industrial Disputes Act 1947 aims to maintain peace and harmony in the
workplace by setting up a system and process for the investigation and
negotiation of labour disputes.

 One of the objectives of the Industrial Disputes Act 1947 is to promote

positive interactions between labour and business and to give
adjudication authorities a means of mediating disputes.
  To establish a committee for resolving disputes between business and
labour, with the option of having a registered trade union or an employer
association represent it.
 Industrial Disputes Act 1947 prevents unapproved lockouts and strikes.
 Speak with workers who have been let go, fired unfairly, etc.

Features of Industrial Dispute Act 1947

The Industrial Disputes Act, 1947 encompasses several essential features

that are fundamental to the regulation of industrial relations and the resolution
of conflicts. The features of the Act are:

Section 2(aaa) of this Industrial Dispute Act 1947

The average pay means the average of the wages of:

 Three complete calendar months in case of monthly paid

 Four complete weeks, in the case of the weekly paid workman.
 Twelve full working days, in case of the daily paid workman.

Industrial dispute (Section 2(k)) of the Industrial Dispute Act 1947

It means any dispute which is connected with the employment or non-

employment or the conditions of labour between:

 Employers and employers.

 Employers and workmen.
 Workmen and workmen.

Lay-off (Section 2(kkk)) of Industrial Dispute Act 1947

If an employer fails to give employment to a workman on the following

grounds, then it is referred to as

 Shortage of coal or power or raw materials

 Accumulation of stocks or
 Break-down of machinery
 Natural calamity or for any other connected reason
Lock-out (Section 2(l)) of the Industrial Dispute Act 1947

Section 2(l) of the Industrial Dispute Act 1947 defines “lock-out” under the Act.
According to this section, a lock-out refers to the temporary closing of a place
of employment, or the suspension of work, or the refusal by an employer to
continue to employ any number of workers, where such closing, suspension,
or refusal occurs as a result of a dispute between the employer and workers.

Retrenchment (Section 2(oo)) of the Industrial Dispute Act 1947

It means the termination of a workman of the service by the employer for any
reason. It does not include the following:

 Voluntary retirement.
 Retirement at the age of superannuation.
 Non-renewal of the employment contract.
 Continued illness.

Labour courts (Section 7) and Tribunals (Section 7A) of the Industrial Dispute Act 1947

It shall consist of only one person appointed by the appropriate government.

The following are the common qualifications for a presiding officer of a labour
court or a tribunal:

 Judge of a High Court or

 The district judge or an additional district judge for a period of not less
than three years or
 Deputy Chief Labour Commissioner (Central) or Joint Commissioner of
the State Labour Department, having a law degree and at least seven
years experience in the labour department, including three years of
experience as a Conciliation Officer or
 Grade III officer of Indian Legal Service with three years of experience.
 Apart from the above, any person with the following qualifications can
also be appointed as the presiding officer.

Section 7B – National Tribunal

It is constituted by the central government and shall consist of only one

person. The presiding officer of the tribunal must be a person who worked or
has been a judge of a high court. The National Tribunal, as per the Industrial
Dispute Act 1947, has the provision for the Central Government to appoint two
individuals as assessors. These assessors are appointed to provide guidance
and advice to the National Tribunal during its proceedings if deemed
necessary by the Central Government.

Punishment Under Industrial Dispute Act 1947

Any person committing any unfair labour practice shall be punishable with a
maximum imprisonment of six months or a maximum fine of one thousand
rupees or both under the Industrial Dispute Act 1947.

 Any workman who commences or continues an illegal strike shall be

punishable with a maximum imprisonment of one month, or with a
maximum fine of fifty rupees, or both.
 Any employer who commences or continues an illegal lock-out shall be
punishable with a maximum imprisonment of one month, with a
maximum fine of one thousand rupees, or both under the Industrial
Dispute Act 1947.
 Any person who gives financial aid or instigates or incites others, or
takes part in an illegal strike or lock-out shall be punishable with a
maximum imprisonment of six months or with a maximum fine of one
thousand rupees or both.
 Any person who commits a breach of any term of any settlement or
award shall be punishable with a maximum imprisonment of six months,
or fine, or both under Industrial Dispute Act 1947.