Industrial Dispute Act, 1947 human resources

Industrial Dispute act 1947

1. INTRODUCTION The industrial revolution set the stage for the capitalist economy and engineered social reorganization to split the industrial society into workers and capitalists. Capitalists own resources and have the means of production, whereas labor sells their services to capitalists. The two groups do not share any common interests.

2. Workers want higher wages and better working conditions, whereas capitalists exploit the fact that workers have limited power in negotiations and deny them their rights. Furthermore, employers want more work done. When these conflicting interests clash, industrial disputes arise.

3. Applicability The Industrial Disputes Act extends to whole of India and 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 therein.

4. What is an Industrial Dispute ?

5. Analysis of the above definition There must be a dispute or difference. The dispute or difference must be between employers and employers or between employers and workmen or between workmen and workmen The dispute or difference must be connected with the employment or non employment or terms of employment or with the condition of labour of any person.

6. Connected with non – employment of workman : If an employer refuses to employ a workman dismissed by him the dispute relates to non-employment. Connected with employment : If the union insists that a particular person should not be employed by the employer, the dispute relates to the employment of workman

7. Connected with terms of employment : refers to all terms and condition stated in the contract of employment. Connected with conditions of labour : it has reference to the amenities to be provided to the workmen and the conditions under which they will be required to work.

8. Causes of Industrial Disputes Demand for wages and allowances The primary cause of industrial disputes in India is demand for higher wages and benefits. Even though prices are increasing fast, the wage growth has not kept pace with inflation. Therefore, workers go on strike to demand an increase in their wages. Most of India’s labour disputes arise from workers demanding increased pay. Disagreements would have been decreased if employers had taken steps to ensure wages and prices changed automatically.

9. Demand for bonus The demand for more bonuses is another big reason for industrial disputes in India. Workers want employers to share the profits of the industrial units, but employers do not relent on profits so easily.

10. Personnel and retrenchment Retrenchment and personnel issues are also a big cause of industrial disputes in India and are the primary causes of industrial disputes. 

11. Demand for Improving Working Conditions Industrial disputes in India arose because workers wanted improved work conditions, such as time off, fewer hours, better safety measures, canteens, among other amenities. 

12. Lock-Outs Lock-outs are also a major cause of industrial disputes in the country. Lock-outs occur when strikes last too long and trade unionists do not act in a timely and responsible manner.

13. Settlement of Industrial Disputes Settlement of industrial disputes is crucial because long-lasting disputes indicate unhealthy industrial development in the country. Thus, the government has already taken different steps and set up multiple policies to effectively settle labor disputes in the country. The objectives of these policies are: to prevent and peaceful settle industrial disputes and to encourage better relationships between workers

14. In 1947, the Government of India passed the Industrial Disputes Act, which was subsequently revised in 1956. This act was passed to settle and prevent industrial disputes. Some important provisions of the act include the following:

15. Conciliation This act stipulates that the Government can appoint conciliation officers and constitute conciliation boards to settle disputes between employers and employees. Work Committees A working committee should be formed to maintain healthy relations between employees and employers in all firms employing more than 100 workers. Court of Enquiry If conciliation cannot resolve the dispute, the dispute should be referred to a court of enquiry for investigation and report.

16. Labor Courts Governments established labour courts for resolving disputes regarding dismissals, suspensions, strikes, lock-outs, and other factors.

17. What does ‘hire or reward’ mean 'Hire' means there is specific compensation for carrying passengers or freight, but it is not necessary that the carrier makes a profit. 'Hire and reward' is the legal term for payment for providing transport. It's any payment, in cash or kind, which gives a person the right to be carried on a vehicle, regardless of whether that right is exercised. The payment may be made by the passenger or on the passenger's behalf. 'Reward' means any 'valuable consideration', usually in situations where one person performs a useful service for some other person, and the person performing the service is given recompense (reward) for that service. It includes cases where there is no obligation to pay. Reward is not just an alternative word for hire.

18. Difference between express and implied terms They are called ' terms ' of the contract. Some of these terms  are ' express '  terms  – that is they are expressly or specifically stated, either orally (at the initial interview, say) or in writing. ... An important implied term  is the duty of mutual trust and confidence, which is  implied  in every employment contract.

19. PUBLIC UTILITY SERVICE

20. Methods of Settlement of Disputes

21. RATIFICATION sign or give formal consent to (a treaty, contract, or agreement), making it officially valid.

22. ARBITRATION PROCEEDING

23. ADJUDICATION

24. Conclusion India passed the Industrial Disputes Act in 1947 to promote peace and harmony among industrial establishments. If a dispute arises, the act facilitates an orderly and equitable resolution in which all parties are satisfied, and decisions are just and fair. The Industrial Disputes Act of 1947 governs labor disputes comprehensively. Under the act, the Central Government and Industrial Law Board are empowered to supervise, regulate, and monitor the activities of industries. Enacting Business and Industrial regulations, can protect employee rights, and resolve problems consistently.

25. When do industrial disputes arise? An industrial dispute refers to any dispute between employees and employers, between employers and workers or between workers and workers relating to the terms of employment or any individual’s work conditions.

26. What has the Government done to reduce industrial disputes? To ensure industrial peace and harmony, the Industrial Disputes Act of 1947 empowers governments to appoint appropriate authorities when necessary to settle industrial disputes.

27. Which authorities play a role in industrial disputes? The act sets up various authorities, including a works committee, a conciliation officer, a conciliation board, a court of inquiry, a labour court, a tribunal, and a national tribunal.

28. What is the most dominant cause of industrial disputes in India? Demand for higher wages is the most dominant cause of industrial disputes.

29. Strike, Lock-out, Lay-off, Retrenchment, Closure.

30. STRIKE

31. ESSENTIALS OF STRIKE There shall be cessation of work or refusal to work Cessation or refusal to work should be by a body of workmen Workmen should be acting in concert in order to enforce a demand against the employer during an industrial dispute

32. KINDS OF STRIKES

33. Types of Strikes Economic Strike –  Such strike happens due to economic demands like increment of wages and allowances like house rent allowance, transport allowances, bonus etc. Sympathy Strike –  In such strike union or workers of one industry join the strikes already hailed by other union or workers. General strike –  This strike intended to increase the political pressure in the ruling party by all unions or members in a region or state.

34. Kind of Strikes………..contd. Sit down strike –  In such case, workers hold strikes at the workplace and none of the workers stays absent from duty but they all refuse to work till their demands are fulfilled. Slow down strike –  It means workers or unions don’t refuse to work but put pressure on industries to get their demand by reducing or restricting the output of the production of an industry. Hunger strike –  It is one of the painful strikes by the striker where workers go on strike without having food/water to redress the grievances.

35. Kind of Strikes…………….contd.. Wildcat strike –  Such strike happens by the workers without the consent of union and authority. Work to Rule Strike : In such a case, the employees adhere to the rules while performing their duties which ordinarily they do not observe. Thus, strict observance of rules results in slowing down the tempo to work, causes inconvenience to public and embarrassment to the employer.

36. LOCKOUT LOCKOUT

37. LOCKOUT A  lockout  is a temporary  work stoppage  or denial of employment initiated by the management of a company during a  labour dispute

38. Lock-out “Lockout” means the temporarily closing of a place of employment or suspension of work or the refusal by an employer to employ any number of persons employed by him. Note: Just as strike is a weapon in the hands of the labour to force the management to accept their demands; similarly the lock-out is the weapon in the hands of the employer to coerce the labour to come down in their demands in regard to condition of service.

39. Essentials of lock-out Temporarily closing of a place of employment or Suspension of work; or Refusal by an employer to continue to employ any number of persons employed by him. The above acts of the employer should be motivated by coercion.

40. Lock-out…………contd..

41. Difference between Strike and Lock-out

42. LAY-OFF 2( kkk ) : means the failure, refusal or inability of an employer on account of shortage of coal, power, or raw materials or accumulation of stocks, breakdown of machinery or natural calamity or any other connected reason to give employment to a workman whose name is born on the muster rolls and who has not been retrenched.

43. The Essentials of a Lay-off There must be failure of refusal or inability of the employer to continue to employ workers in his employment. The workers laid off must be on muster rolls of the establishments on the date of lay-off. The reasons for deprivation of employment must be shortage of coal or raw material, power or accumulation of stocks or break down of machines or some such reasons.

44. Contd ………… The emergency leading to employers inability must be temporary. Employer and employee relationship does not come to an end but merely suspended during the period of emergency.

45. Difference between Lock-out and Lay-Off 1.Lockout is the weapon in the hands of employer to coerce or pressurize the workers to come down to in their demands. It is the refusal by an employer to continue to employ any number of persons employed by him because of closing of a place of employment or suspension of work while layoff is declared by the employer due to reason of shortage of coal, power or raw material or accumulation of stock or breakdown of machinery or for any other reasons beyond his control which means that it is an unintentional act

46. 2. Lockout is the outcome of industrial dispute and continue during the period of dispute but layoff is not concerned in any way with labour dispute

47. Lay -Off Meaning

48. CLOSURE The term " closure " is defined under Section 2(cc) of the  I.D.Act . It means the permanent closing down of a place of employment or part thereof.

49. RETRENCHMENT

50. Retrenchment ……………………contd. Continued ill health : ill health means disease, physical defect or infirmity (illness or sickness) or unsoundness, i.e. an employee suffering from infirmity of old age resulting in incapacity of work.

51. Difference Between Retrenchment and Closure Retrenchment means the discharge of surplus labour only whereas closure affects whole workmen. In case of retrenchment, industry runs uninterrupted whereas in closure the business is discontinued.

52. Difference between Lockout and Retrenchment In retrenchment, the business is continued and only a section of labour is discharged but in lockout, place of employment is closed by the employer In retrenchment no employment relationship subsists while in lock out this relation is continuous though it is temporalily suspended.

53. Differences………………………..contd.. 3. Lockout is with the main object to coerce the labour while in retrenchment services of surplus staff are to be dispensed with. 4. Lockout is the outcome of the Industrial dispute whereas in retrenchment there is no such dispute.

54. Difference between Lockout and Closure Lockout is a weapon of coercion in the hands of the employer whereas closure is generally for trade reasons. Lockout is declared during industrial dispute while in case of closure there may not be any such dispute. The compensation payable on retrenchment either on account of surplus labour or closure, shall be equivalent to 15 days average pay for every ompleted year of continuous service or any part thereof in excess of sixth months.

55. Differences …………… contd … Retrenchment as a result of bonafide closure of business will not entail any compensation. 4. In lockout it is closure of place of business only and not the closure of business itself, while in closure not only the place of business but the business itself is closed. In other words in lockout place of business is closed while in closure, both the business and the place of business are closed.