Settlement of Industrial Disputes

1. Statutory:

                     a) Conciliation

                     b) Arbitration

                     c) Adjudication

2. Non-statutory:

                     a) Bipartite negotiation

                     b) Tripartite negotiation

1. Statutory:

A) Conciliation:

In simple sense, conciliation means reconciliation of differences between persons. Conciliation refers to the process by which representatives of workers and employers are brought together before a third party with a view to persuading them to arrive at an agreement by mutual discussion between them. The alternative name which is used for conciliation is mediation. The third party may be one individual or a group of people.

In view of its objective to settle disputes as quickly as possible, conciliation is characterized by the following features:

(i) The conciliator or mediator tries to remove the difference between the parties.

(ii) He/she persuades the parties to think over the matter with a problem-solving approach, i.e., with a give and take approach.

(iii) He/she only persuades the disputants to reach a solution and never imposes his/her own viewpoint.

(iv) The conciliator may change his approach from case to case as he/she finds fit depending on other factors.

Advantages:

1. It is free of charge
All we ask of people is that they take time to prepare and are willing to travel where necessary.

2. It takes less time than courtOn average, cases take eight weeks to go through the conciliation process. Some cases are fast-tracked and these can take as little as little as four weeks to complete.

3. It is a confidential processOnly the Disability Rights Commission will know when cases are referred to the DCS. Cases only go public when both parties agree.

4. Conciliation enables negotiated outcomes between the partiesNegotiated outcomes are more likely to work in the best interests of both parties than imposed decisions, especially when preserving relationships is an important factor in the case.

B) Arbitration:

When conciliation proceedings failed to settle the dispute, the conciliation officer may persuade the conflicting parties through voluntarily refer the dispute to a third party known as arbitrator, appointed by the party themselves. The arbitrator the view points of both the parties and delivers judgment on the dispute. He doesn’t enjoy judicial power. The arbitrator submits a judgment on the dispute to the government. The government publishes the award/judgments within 30 days of its submission. The award becomes enforceable after 30 days of its publication.

In India, there are two types of arbitration: Voluntary and Compulsory.

Voluntary Arbitration:

In voluntary arbitration both the conflicting parties appoint a neutral third party as arbitrator. The arbitrator acts only when the dispute is referred to him/her. With a view to promote voluntary arbitration, the Government of India has constituted a tripartite National Arbitration Promotion Board in July 1987, consisting of representatives of employees (trade employers and the Government. However, the voluntary arbitration could not be successful because the judgments given by it are not binding on the disputants. Yes, moral binding is exception to it.

Compulsory Arbitration:

In compulsory arbitration, the government can force the disputing parties to go for compulsory arbitration. In other form, both the disputing parties can request the government to refer their dispute for arbitration. The judgment given by the arbitrator is binding on the parties of dispute.

C) Adjudication:

The ultimate legal remedy for the settlement of an unresolved dispute is its reference to adjudica­tion by the government. The government can refer the dispute to adjudication with or without the consent of the disputing parties. When the dispute is referred to adjudication with the consent of the disputing parties, it is called ‘voluntary adjudication.’ When the government herself refers the dis­pute to adjudication without consulting the concerned parties, it is known as ‘compulsory adjudication.

The law provides the adjudication to be conducted by the Labour Court, Industrial Tribunal of National Tribunal.

• Labour Court:

Under Section 7 of the Industrial Disputes Act, 1947, the appropriate Government by notifying in the official Gazette, may constitute Labour Court for adjudication of the industrial disputes The labour court consists of one independent person who is the presiding officer or has been a judge of a High Court, or has been a district judge or additional district judge for not less than 3 years, or has been a presiding officer of a labour court for not less than 5 years. The labour court deals with the matters specified in the second schedule of the Industrial Disputes Act, 1947.

A labour court consists of one person only, who is normally a sitting or an ex-judge of a High Court. It may be constituted by the appropriate Government for adjudication of disputes which are mentioned in the second schedule of the Act.

The issues referred to a labour court may include:

(i)The propriety or legality of an order passed by an employer under the Standing Orders.

(ii) The application and interpretation of Standing Orders.

(iii) Discharge and dismissal of workmen and grant of relief to them.

(iv) Withdrawal of any statutory concession or privilege.

(v) Illegality or otherwise of any strike or lockout.

(vi) All matters not specified in the third schedule of Industrial Disputes Act, 1947. (It deals with the jurisdiction of Industrial Tribunals).

• Industrial Tribunal:

Like a labour court, an industrial tribunal is also a one-man body. The matters which fall within the jurisdiction of industrial tribunals are as mentioned in the second schedule or the third schedule of the Act. Obviously, industrial tribunals have wider jurisdiction than the labour courts.

Moreover an industrial tribunal, in addition to the presiding officer, can have two assessors to advise him in the proceedings; the appropriate Government is empowered to appoint the assessors.

The Industrial Tribunal may be referred the following issues:

1. Wages including the period and mode of payment.

2. Compensatory and other allowances.

3. Hours of work and rest intervals.

4. Leave with wages and holidays.

5. Bonus, profit sharing, provident fund and gratuity.

6. Shift working otherwise than in accordance with the standing orders.

7. Rule of discipline.

8. Rationalisation.

9. Retrenchment.

10. Any other matter that may be prescribed.

• National Tribunal:

This is the third one man adjudicatory body appointed by the Central Govern­ment by notification in the Official Gazette for the adjudication of industrial disputes of national importance. The central Government may, if it thinks fit, appoint two persons as assessors to advise the National Tribunal. When a national tribunal has been referred to, no labour court or industrial tribunal shall have any jurisdiction to adjudicate upon such matter.

2. Non-statutory:

a) Bipartite:

The definition of bipartite negotiation in Article 1 number 10 of the Law Number 2 of 2004 on the Resolution of Industrial Relationship
(“UU PHI”) is a negotiation between the workers/labours or worker unions/labour unions and the entrepreneur to resolve industrial relations dispute.

The dispute of industrial relationship must be settled first through bipartite negotiation by deliberation to meet the settlement, and the deadline for the settlement by bipartite negotiation is no longer than 30 (thirty) working days since the first day of negotiation. If within 30 (thirty) working days, one of the parties refuses to negotiate or the negotiation has been conducted but does not reach settlement, then the bipartite negotiation is considered as fail.

 In every bipartite negotiation that is held by the entrepreneur and workers, minutes of meeting has to be made and signed by the parties. The minute at least contains:

1. Full name and addresses of the parties;
2. The date and places of negotiations;
3. The subject matter and the dispute background;
4. The opinion from the parties;
5. The conclusion or the results of the negotiations; and
6. The date and the signature of the negotiating parties.

If bipartite negotiation reaches settlement, both of parties shall make a joint agreement signed by the parties. The joint agreement is binding and must be obeyed by the parties. The joint agreement shall be registered by the parties to the Industrial Relations Court on District Court, in the domicile of the parties who made the agreement. Joint agreement that has been registered is granted with the deed of evidence of joint agreement registration and became an integral part that is inseparable from the joint agreement.

Types of bipartite negotiation:

1. Work committee:

As per the provision of industrial dispute act 1947, work committees have to be set up in all those industrial units which employees 100 or more persons and are composed of equal number of employers and employee representatives. The work committee is purely conclusive in where it has the responsibility of removing the causes of friction between the labour and management in the day to day functioning of a unit.

2. Joint management council:

Industrial policy resolution 1965, the need for joint management council, consisting of management technicians and workers was emphasis, here management matter and must supply facts regarding the working of a unit and council discuss various matter and recommending steps for improving efficiency.

Features of joint management council:

1. It is voluntary in nature.
2. It should consist of equal number of representative of workers and employer. Min-6 and max- 12.
3. It look after 3 areas :

1. Information sharing
2. Consultative
3. Administrative

2. Tripartite:

It is a negotiation between employee, employer and government to resolve industrial relations dispute.