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Iem 3

Industrial economics and management 3

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10 views8 pages

Iem 3

Industrial economics and management 3

Uploaded by

achintyajain87
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Industrial Dispute Act

Introduction
• The Industrial Disputes Act, 1947 is the primary legislation governing
dispute resolution in India.
• The Act was enacted to make provisions for the prevention and
settlement of industrial disputes and for providing certain safeguards
to the workers.
• The act aims to minimize the conflicts between labour and
management by ensuring possible economic and social justice.
• It was enacted to provide for the investigation and settlement of
industrial disputes, to prevent illegal strikes and lockouts, to provide
relief to workmen during lay-off or after retrenchment or wrongful
dismissal.
• An industrial dispute can be viewed as friction or disagreement
between two or more parties involved, due to the difference in their
perceptions, opinions, mindsets, attitudes and values. In an
organization, the parties engage in such disputes can be:
(i) Employer and Employee;
(ii) Employee and Employee or;
(iii) Employer and Employer.
• On a massive level, conflicts can even arise between the government
and the public.
• Industrial disputes are sometimes observed as a result of
poor industrial relations in the organization.
✔ The objectives of the Industrial Disputes Act are as follows:
• To support measures for securing and preserving good relations
between employers and employees.
• To provide suitable machinery for the equitable and peaceful
settlement of industrial disputes.
• To prevent illegal strikes and lockouts.
• To afford relief to workers against layoffs, retrenchment, wrongful
dismissal and victimization.
• To improve the conditions of workers.
• To avoid unfair labour practices.
• To promote collective bargaining.
Collective bargaining is a formalized process by which employers and
independent trade unions negotiate terms and conditions of employment
and the ways in which certain employment-related issues are to be
regulated at national, organizational and workplace levels.
✔ The features of the Industrial Disputes Act are listed out.
• The act applies to entire India also includes the state of Jammu and
Kashmir.
• It favors arbitration over the disputes between employers and workers.
• It affords for setting up of works committees as machinery for mutual
discussion between employers and workers to promote friendly relation.
• The act paved the way for creating permanent conciliation machinery at
various stages having definite time limits for conciliation and arbitration.
• This act emphasis on compulsory adjudication apart from the conciliation
and voluntary arbitration of Industrial Disputes.
• The Act empowers the Government to refer the dispute to an appropriate
authority.
✔ CONCILIATION
• In this method of resolving disputes both the employer and the
employees union take the help form outside such as the government
agency. The government agency tries to bring the two parties the
management and unions together for discussion and help them in their
negotiations.
• The main objective of conciliation is to reunite the two conflicting
groups in the industry to avoid further problems of production,
disinterest and strained industrial relations. This method of resolving
industrial disputes is adopted when the parties cannot reconcile their
differences on their own and still want to avoid the problems of open
conflict.
• Conciliation is a practice by which the services o f a neutral third party
are used in the dispute, to make the disputing parties come to an
amicable settlement.
• Conciliation process takes place under the guidance of a conciliator.
✔ Arbitration
• The word arbitration means settlement of industrial disputes between
two or more parties by means o f a decision o f an impartial body
when efforts in the process o f conciliation and mediation have failed.
• Arbitration is judicial in nature whereas conciliation is advisory in
nature. Arbitration is voluntary if the parties to the dispute have failed
to settle their differences by negotiation and conciliation, agree to
submit them to arbitration.
• Compulsory arbitration or adjudication, the government requires the
parties to the dispute to submit their differences to an arbitration
tribunal which after considering the facts and arguments submitted to
it, makes an award.
• In case of voluntary arbitration it does not necessarily follow the
procedure adopted by the courts.
• The essentials of voluntary arbitration is that there should be voluntary
submission of dispute to an arbitrator and the enforcement of an award
may not be necessary and binding because there is no compulsion.
• Compulsory arbitration is used when the parties fail to arrive at a
settlement through the voluntary methods. Compulsory arbitration
may be at times and under certain circumstances, necessary and
desirable.
• In compulsory arbitration the parties are forced to arbitration by the
state when the parties to the dispute have failed to arrive at a
settlement by voluntary method or when there is a situation o f
national emergency or when the country is passing through economic
crisis or when the parties to the dispute are not well balanced or when
the unions are weak and ill-organized or when the employers are very
well-organized and more powerful or when there is a general public
dissatisfaction with the existing industrial relations.

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