*Role of the Governmentand Legal Framework ofIndustrial Relations in India

HRM

Dr. Ajay Singh

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*What is the Role of the Government in IRTo provide a legal framework

To see social justice is done

To see that no exploitation is done by any party of IR.

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*Legal Framework for IR in India

1. Trade Unions Act, 1926

2. The Industrial Dispute (ID) Act, 1947

3. The Industrial Employment (Standing Orders) Act, 1946

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*Structure of the ID Act 1947Applies to whole of India

IDA contains: 40 sections divided into 7 Chapters

Creates bodies: Conciliatory/Adjudicatory/Administrative

Attempts to reform: NCL (1969), (NCL) 2002

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*Main Features of the ID Act 19471. Provides framework of Collective Bargaining for Workmen

2. Provides consultative/arbitration/adjudication models for settlement of Industrial Disputes 3. Provides two sets of lab. administration: Central/ State

4. Ensures Govt.s major control in IR/industrial peace

Cont

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*Main Features of ID Act 1947 contd.5. Notice for changing the service conditions (Ss. 9-A/33)

6. Regulates strikes/lockouts (for industrial Peace)

7. Defines Labour court powers to compute WMs claims [S. 33C (2)]

8. Prohibits parties to indulge in Unfair Lab. Practices. (Schedule V)

9. Provides relevant definitions

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*Main Definitions in the IDA:Industry, Workman,Industrial Dispute

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*What is meant by industry? - Sec. 2 (j)Industry? [Sec 2 (j)]: Means any.

Any systematic activity carried on by cooperation between an employer and his workmen (employed directly or through agency, including contractors) for the production, supply or distribution of goods and services.

It means. industry include any business, trade, undertaking, manufacture, work on contract

---and includes any service, employment, handicraft, or industrial occupation of Workmen

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*What is meant by industry - S. 2 (j)Decisions of Some SC Cases :

Later decisions held the following as industry:Forest departmentPostal serviceKhadi Gram UdyogPanchayat SamitiIndian Navy Sailors Home

Bangalore Water Supp. & Sew. Board v. Rajappa (SC, 1979): Held:It excluded: domestic, agricultural & religious activities

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*Who is a Workman under IDA [Sec. 2 (s)]

Any person (including apprentice)

employed in industry

to do any of the following work:Manual/unskilled/skilled/technical/operational/clerical/supervisory

for hire on reward (with express or implied terms)

Note: Designation not of great importance, but.. nature of duty is the essence

Cont.

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*Who is a Workman under IDA contd

But Workman does not include:One who is subject to Army Act/Air Force Act/Navy ActEmployed in police/prison serviceEmployed mainly in managerial or administrative capacityEmployed as supervisor but draws salary of Certain fixed amount (Rs. xxxx+ per month)

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*What is an Industrial dispute? (S. 2 k.) Any dispute or difference

between : Employers & Employers Employers & Workmen Workmen & Workmen

which is connected with

employment, non-employment, terms of employment, or conditions of labour

Cont

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*Industrial Dispute continuesWestern India Automobile Assn. V. Industrial Tribunal (1973 SC 2650)Held:

Non-employment means when employer refuses to employ a dismissed Workman

Employment means that union insists that a particular person/s be employed

Terms of employment means terms & conditions stated in employment contract

Conditions of labour: amenities to be provided like safety, health, welfare

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*Industrial Dispute Continues.Who can raise an industrial dispute?:

A workman can raise a dispute directly before a Conciliation Officer in case of ..discharge, dismissal, retrenchment, or any form of termination of service.In all other cases the dispute has to be raised by a union (even minority) About 20% WM held as substantial for raising a dispute

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*Authorities Under the IDA

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*Bodies/Authorities Provided under the IDA

I. Works Committee (Section 3) To be constituted in industries with 100 or more WM Members representing workers & magt. must be equal Rep. of workers must be selected in consultation with TUs To promote measures for amity and good relations

Major Issues discussed in Work Committees :

amenities (canteen, drinking water, rest rooms), recreation, medical services, health and safety. Thus the issues which are discussed in WCs are often unimportant from the point of view of preventing disputes

(Note: WCs have not been effective almost everywhere due to limited scope)

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*Authorities under the IDA Cont.II. Conciliatory Mechanism (Third party mediates disputes)1. Conciliation Officer (S. 4) Can be appointed for an area or industry CO is not a judicial officer Can only persuade the parties Chief Labour Commissioner LCs (Central) acts as the primary conciliatory agency in the Central Govt. Regional LCs and Assistant LCs act as Conciliatory Officers in different parts of the country If dispute is not resolved, he submits a failure report

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*Framework of Conciliation under IDA contd2. Board of Conciliation: Constitution & Duty (S. 5)

BOC consists of : 2 or 4 members + chairman

Members equally represent partiesChairman is independent

BOC is appointed by govt. on recommendation of parties

Duty: Promoting settlement

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Conciliation Procedure for CO and BOC

Time for conciliation

CO: 14 daysCan be extended by parties BOC: 1 month + 1 month + Extension by parties

Conciliation Procedure: Settlement & Failure

(a) Memorandum of settlement U/S 12(3) or (b) Failure Report U/S 12(4) is submitted or (c) the dispute is referred for adjudicationFramework of Conciliation under IDA

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*III. Adjudicatory MechanismMinistry of labour after receiving failure of Conciliation can refer the dispute for adjudicationIt can be referred for adjudication to Industrial or Labour Courts.After the matter is referred to any of these courts, the adjudication process beginsAt the end of the proceedings an award is given by the Presiding officer.

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*Adjudicatory Authorities under the IDA

1. Labour Court (Section 7)2. Industrial Tribunal (Sec 7-A)3. National Tribunal (Sec 7-B) Cent. Govt. constitutes NT for adjudicating IDs, which involve questions of national importance

or when WM in more than one state are likely to be affected

Qualification: High Court Judge

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Unfair Labour Practices in the IDA

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*Unfair Labour Practices (ULPs)(FIFTH SCHEDULE)IWhat are ULPs? (on part of employers)

1. To interfere/coerce WM in exercise of their right to organise

2. To dominate, interfere, give financial support to any TU, i.e.: 3. To encourage/discourage membership in any TU by: 4.To discharge or dismiss workmen for union reasons.

5. To abolish regular work to give to contractors to break strike

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*ULPs (on Part of Employers) contd

6. To transfer a WM in pretext of following mgt. policy

7. Insist as pre-condition to WM on legal strike: sign good-conduct bond

8. To recruit WM in a strike (though is not illegal)

9. To refuse to bargain collectively with recognised TUs

10. Proposing/continuing a lockout deemed to be illegal under this Act

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*ULPs (on Part of Workmen) On the part of workmen/ trade unions of WM

To actively support/instigate a strike deemed to be illegal

To coerce WM to join a TU/refrain from joining a TU i. e.: To picket in manner that non-striking WM cant enter work places To indulge in force/threats against non-striking WM/ mgrl. Staff

For a recognised TU to refuse to bargain collectively

4. Indulge in coercive acts against certification of a bargain. rep.

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*ULPs (on Part of Workmen) contdTo stage, instigate coercive actions such as: Wilful go slow, squatting on premises after work hours, gherao

To demonstrate at residences of employers/ mgrl. staff

To incite wilful damage to employer's propertyindustry connected

8. Force/threats against a WM to prevent him from attending work

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*Strikes and LockoutsProvisions under the ID Act

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*Strikes and Lockouts: ProhibitionsNo workman employed in industrial establishment can go on strike or employer can declare lock out:During the pendency of conciliation proceedings before a board or 7 days after the conclusion of such proceedingsDuring the pendency of such proceedings before a labour court, Tribunal or National Tribunal and 2 months after the conclusion of such proceedingsDuring the pendency of arbitration proceedings before an Arbitrator and 2 months after the conclusion of proceedingsDuring any period during in which a settlement of Award is in operation in respect of any of the matters

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*Right to Strike in Public Utility ServicesNo person in PUSs can go on strike without giving the employer notice of strike:Within 6 weeks before strikingDuring the pendency of any conciliation proceedings before a Conciliation officer & 7 days after the conclusion of proceedingSimilarly No employer can lockout industrial establishment (PUS) without following above procedure

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