GENESIS (Origin)

Conflict of interest between mgmt.& labour

Profit maximization goal of mgmt and worker’s expectation of better wage-major source of conflict

Conflict between “hands that produce” and “Hands that control”

When conflict acquires specific dimensions-it becomes a dispute

ESSENTIALS OF A DISPUTE

Must be a dispute between : Employers and workmen Workmen and workmen Employers

Connected with employment or non employment or it must pertain to any industrial matter

Supervisory staff does not draw wages exceeding 1600 p.m

Relationship must be in existence and should be result of a conflict.

CLASSIFICATION OF DISPUTE

A. INTEREST DISPUTESB. GRIEVANCE OR RIGHTS

DISPUTEC. DISPUTES OVER UNFAIR

LABOUR PRACTICESD. RECOGNITION DISPUTES

IMPACT OF INDUSTRIAL DISPUTES

Far reaching – Disturb economic, social & political life of country.

All suffer – Workers, employers, consumers, community & nation.

Huge wastage of mandays, loss of wages to workers, loss of employment

Unsuccessful strikes demoralize workers, sullen & shake confidence in Unions.

IMPACT OF INDUSTRIAL DISPUTES (contd..)Employer also suffers heavily through

reduction in sales, loss of market / Co. image & huge expenditure on crushing strike.

Industrial unrest creates law & order problem for public and bitterness lingers.

Affect national economy because of supply chain discontinuity.

CAUSES OF CONFLICT

A. INDUSTRY RELATED FACTORSB. MANAGEMENT RELATED FACTORSC. GOVERNMENT RELATED D. OTHER FACTORS

STRIKESDefined in section 2(q) of IDA ,1947 as“Cessation of work by a body of persons

employed in any industry,acting in combination,or a concerted refusal under a common understanding of a number of persons,who are or have been so employed to continue to work or to accept employment”

Hence three main elements:1.Plurality of workmen2.Cessation of work or refusal to do work3.Combined or concerted action

Go-slow

Industrial Disputes

Strikes

1. Primary Strikes 2. Secondary Strikes 3. Others

Stay Away Strikes

•Sit-down•Stay-in•Tool-down / Pen-down Strikes

Token or Protest Strikes

Work to Rule

Lightning or Cat-call strikes

Gherao

Sympathy Strikes •General

•Particular•Political•Bandhs

Picketing & Boycott

WHEN ARE STRIKES JUSTIFIED

Launched only for economic demands such as Pay, Fringe Benefits etc

Prima facie justification for demands which are reasonable & legitimate

Existing facilities are withdrawn If any unfair labour practice is there on

part of mgmt.No response from mgmt on demands in

spite of reminderNecessary in light of facts & used as a

last resort, after exhausting all other possibilities.

PREVENTION OF STRIKES

Management should adopt well defined , precise clear and HRM policies.

Management should ensure proper implementation of HR policies.

To ensure that an effective 2 way communication system is in operation to avoid any misunderstanding.

Speedy grievance redressal procedure.Recognition to representative UnionsEnsure joint consultation at various levels.

SETTLEMENT MACHINERY

A. CONCILIATIONB. ARBITRATIONC. ADJUDICATION

A. CONCILIATION

3rd Party intervention on promoting voluntary settlement of disputes.

Most frequently used method even in International Disputes

Conciliation is limited to encouraging parties to help develop their own proposed solutions.

Conciliator very often Govt. official. In larger disputes there are Conciliation boards.

B. ARBITRATIONA means of resolving a dispute by reference

to 3rd party who makes a decision binding on both parties.

It is a judicial process & rests on equity *& justice & has no place for compromise.

Since established for agreement both parties have more faith & faster to that in courts & labour tribunals.

Deprive labour of its right to go on strikeOften biased against labour & usually not

in their favour.

C. ADJUDICATIONInvolves intervention in disputes by a 3rd

party appointed by Govt. for deciding the nature of final settlement

When Govt. get a report of failure of conciliation proceedings, it refers the dispute to arbitration or adjudication.

When both parties agree, its called voluntary adjudication.

3 Tier System of Adjudication:-Labour CourtsIndustrial TribunalsNational Tribunals

UNFAIR LABOUR PRACTICE (5th Schedule, Section 2 (RA)On part of Employers.

To interfere or coerce in the exercise of their rights to organize, form, join a TU, or to engage in activities such as threatening workmen with dismissal.

To dominate, interfere or support to any Union by showing partiality.

To establish employer-sponsored Union.To dismiss workmen by way of victimization

or curbing his rights.Abolish work of regular nature & off loading.Transfer a person on malafied grounds.Recruit workers when strike is on.

UNFAIR LABOUR PRACTICE (5th Schedule, Section 2 (RA) contd..

On part of Workmen & their unions.To actively support strike deemed to be

illegal.To coerce workmen in exercise of their

right to self organization.To stage or encourage actions as ‘Go Slow”,

“Gherao” or demonstration at the residence of employers or damage Company property.

PROTECTED WORKMANHe cannot be proceeded against without

obtaining permission for dismissal, discharge or punishment from the Tribunal.

Related Law is Under Section 33 (3) & states that :-Protected workman means a workman who, being

an officer of a registered TU connected with the establishment, is recognized as such in accordance with rules made in this behalf.

In every establishment, no. of workmen to be recognized as protected shall be 1% of total no.,of workmen employed therein subject to a minimum no. of 5 & maximum of 100.