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Industrial disputes refer to conflicts between management and workers regarding employment conditions. They are usually due to disagreements over pay or working conditions. Common causes include authoritarian leadership, non-recognition of unions, and unfair employment practices. Disputes can result in strikes by workers or lockouts by management. The Industrial Disputes Act of 1947, now replaced, aimed to promote industrial peace through conciliation, arbitration, and adjudication of disputes.

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Module 4 PDF

Industrial disputes refer to conflicts between management and workers regarding employment conditions. They are usually due to disagreements over pay or working conditions. Common causes include authoritarian leadership, non-recognition of unions, and unfair employment practices. Disputes can result in strikes by workers or lockouts by management. The Industrial Disputes Act of 1947, now replaced, aimed to promote industrial peace through conciliation, arbitration, and adjudication of disputes.

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chinmoyd988
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1.

Industrial Disputes

Meaning and definition of Industrial disputes, causes and methods of


settlement of industrial disputes. Trade union- definition of trade union,
functions of trade union, problems of trade union, Indian Factories Act, 1948

Industrial dispute refers to a conflict or a difference in opinion between


management and workers regarding their employment and the work in the
industry. It is a disagreement between an employer and the employee’s
representative i.e. trade union. The issue of disagreement is usually pay or other
working conditions. The industrial unrest manifests itself as strikes, lock-outs,
picketing, gheraos and indiscipline on the part of workers.

Industrial disputes are of two types:


a) Individual Disputes- Reinstatement, compensation for wrong termination.
b) Collective Dispute- Wages, bonus, profit sharing, hours of work.

Causes of Industrial disputes:

Psychological Causes:

1) Authoritarian leadership
2) Clash of personalities
3) Difficulty in adjusting in given conditions
4) Strict discipline

Institutional Causes:

1) Non-recognition of trade/labour union by the management


2) Matters of collective bargaining
3) Unfair conditions and practices
4) Pressure on workers to avoid participation in trade unions

Economic Causes:

1) Terms and conditions of employment


2) More work hours
3) Working in night shifts
4) Disputes on promotion
5) Frequent product design changes
6) Poor fringe benefits
7) No bonus or incentives
Denial of Industrial Disputes:

1) Proceedings against labour laws and regulations


2) Violation of already made agreements between the employer and the
employee

Results of Industrial disputes:

a) Strike. When workers collectively cease to work in an industry, it is called


strike. It is the most powerful weapon for forcing the management to accept
their demands
b) Lockout. The employer may close the place of employment temporarily
for those workers who are on strike.

Settlement of Industrial Disputes

Industrial disputes affect the production and peace in the factories. In the socio-
economic development of any country cordial and harmonious industrial
relations have a very important and significant role to play.

a) Works Committee plays an important role in settlement of industrial


disputes.
b) Conciliation Officers are appointed by the government under the Industrial
Disputes Act 1947. He has to hold conciliation proceedings in the
prescribed manner. He shall send a report to the government if a dispute is
settled in the course of conciliation proceedings among with the charter of
the settlement by the parties.
c) Court of Enquiry
d) Labour Courts
e) Industrial Tribunals
f) National Tribunals
g) Arbitration

The Industrial Disputes Act 1947 was enacted by the Central Legislative
Assembly on 11 March 1947 and it came into force on 1st April 1947. It was
repealed by Industrial Relations Code 2020. The Industrial Disputes Act 1947
extended to the whole of India and regulated Indian labour law so far as that
concerns trade unions as well as individual workman employed in any industry
within the territory of Indian mainland. It applies to every Industry and its various
industrial establishment carrying on any business, trade, manufacture or
distribution of goods and services irrespective of the number of workmen
employed in the industry. Every person employed in an establishment for hire or
reward including contract labour, apprentices and part time employees to do any
manual, clerical, skilled, unskilled, technical or operational function is covered
by the Act.

This Act does not apply to persons mainly in managerial or administrative


capacity, persons engaged in a supervisory capacity and withdrawing more than
Rs 10000 p.m. or executing managerial functions and persons subject to Army
Act, Air Force and Navy Act or those in police service or officer or employee of
a prison.

The objective of the Industrial Disputes Act is to secure industrial peace and
harmony by providing mechanism and procedure for the investigation and
settlement of industrial disputes by conciliation, arbitration and adjudication
which is provided under the statue. The main and ultimate aim of this act is
“Maintenance of peaceful work culture in the industry in India”.

The laws apply only to organized sector. Chapter V of the Act talks about the
regulation of strikes and lockouts and the proper procedure which is to be
followed to make it a legal instrument of Economic Coercion either by the
employer or by the workmen. Chapter V-B introduced by an amendment in 1976,
requires firms employing 300 or more workers to obtain government permission
for layoffs, retrenchment and closures. A further amendment in 1982 (which took
effect in 1984) expanded its ambit by reducing the threshold to 100 workers.

The Act lays down the following rules:

a) The provision for payment of compensation to the workman on account of


closure or lay off or retrenchment.
b) The procedure for prior permission of appropriate government for laying
off or retrenching the workers or closing down industrial establishments.
c) Unfair labour practices on part of an employer or a trade union or workers.

Trade Union, also called labour union, is an association of workers in a particular


trade, industry or company created for the purpose of securing improvements in
pay, benefits, working conditions, or social and political status though collective
bargaining.

Functions of trade union:

a) Trade Unions safeguard workers against all sorts of exploitation by the


employer and the political parties. A union provides protection from unfair
labour practices and atrocities of management.
b) Trade Unions attempt to secure for worker’s fair wages, proper working
conditions and welfare facilities like health, housing, recreation and social
security.
c) Collective bargaining
d) Advice the management on personnel policies and practices
e) Unions organize demonstrations, strikes and other forms of protest to press
the demands of the workers
f) Secure legislative protection for the workers

Indian Factories Act 1948

The Indian factories Act 1948 was enacted by Parliament of India. It was repealed
by Occupational safety, Health and Working Conditions Code 2020.

The main objectives of the Indian Factories Act 1948 are to regulate health, safety
welfare, and annual leave and enact special provision in respect of young persons,
women and children.

a) Working hours. According to the provision of working hours of adults, no


adult worker shall be required or allowed to work in a factory for more than
48 hours in a week.
b) Health. For protecting the health of workers, the Act lays down that every
factory shall be kept clean and all necessary precautions shall be taken in
this regard. The factories should have proper drainage system, adequate
lighting, ventilation, temperature, etc.
c) Safety. In order to provide safety to the workers, the Act provides that the
machinery should be fenced, no young person shall work at any dangerous
machine, in conned spaces, there should be provision for man holes of
adequate size so that in case of emergency the workers can escape.
d) Welfare
e) Penalties

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