Prevention of industrial disputes

1. Prevention of Industrial Disputes
The following measures can be taken to avoid disputes in industry:
1. Model Standing Orders: the purpose of these orders is to prescribe
guidelines for regulating relations between employers and employees
under the Industrial Employment (Standing Orders) Act 1946. Every factory
employing 100 or more workers is required to frame standing orders in
consultation with the workers. These orders must be certified and
displayed properly by the employer for the information of workers. The
Central and State Govt. have framed model standing orders which can be
adopted by any industrial establishment.
Standing orders define and regulate terms and conditions of employment
and bring about uniformity in them. These also specify the duties and
responsibilities of both employers and employees and regulate standards of
their conduct. Therefore, standing orders can be a good basis for
maintaining harmonious relations between employers and employees.
2. Code of Industrial Discipline: The Indian Labour Conference at its 15
th

session in 1957 envolved a code of industrial discipline. The code
voluntarily binds the employers and workers to settle all grievances and
disputes by mutual negotiations, conciliation and voluntary arbitration. The
main features of this code are:
I. Both employers and employees should recognize the rights and
responsibility of each other and should willingly discharge their
respective obligations. There should be no unilateral action on either
side.
II. There should be no strike or lockout without proper notice and
efforts should be made to settle all disputes through the existing
machinery for the settlement of industrial disputes.
III. Neither party will have recourse to coercion, intimidation, litigation
and victimization but will settle all differences by mutual
negotiations, conciliation and voluntary arbitration.
IV. A mutually agreed grievance procedure will be set up and both the
parties will abide by it without taking arbitrary action.

2. V. Both employers and trade unions will educate their members
regarding their mutual obligations.
VI. Management will not increase work loads without prior agreement
or settlement with the workers.
VII. Employers will take prompt action for the settlement of grievances
and for the implementation of all awards and agreement.
VIII. Management will take immediate action against all officers found
guilty of provoking indiscipline among workers.
IX. The employers will provide all facilities for the unfettered growth of
trade unions. They will recognize unions according to the criteria laid
down in the code. They will discourage the use of unfair labour
practices like victimization of the members of recognized trade
unions.
X. Unions will avoid demonstrations,rowdyism and all forms of physical
duress and workers will not indulge in union activity during working
hours.
XI. Unions will discourage negligence of duty, damage to property,
careless operation, go-slow tactics, insubordination and other unfair
labour practices on the part of workers. They will also take action
against their office-bearers and members who work against the spirit
of the code.

Thus, the Code of Discipline consists of three sets of principles,
namely (a) obligations to be observed by management, (b)
obligations to be observed by trade unions, and (c) principles binding
on both the parties.


Grievance Procedure:
collective Bargaining:

3. Works Committee: Under the Industrial Disputes Act, 1947, every
establishment employing 100 or more workers is required to
constitute a works committee. Such a committee consists of equal
number of representatives of employer and workers. The main
purpose of works committees is to provide measures for securing
and preserving amity and good relations between the employer
and employees. Work committees deal with matters of day to day
functioning at the shop floor level. According to the Indian Labour
Conference(1959) works committees are concerned with:
a) Conditions of work such as ventilation, lighting,
temperature and sanitation including latrines and urinals.
b) Amenities such as drinking water, canteens, dining rooms,
medical and health services.
c) Safety and accident prevention, occupational diseases and
protective equipment
d) Adjustment of festivals and national holidays
e) Administration of welfare and fine funds
f) Educational and recreational activities
g) Promotion of thrift and savings
h) Implementation and review of decisions arrived in the
meetings of works committees.
Joint Management Councils:These councils were set up in 1958
consequent upon the acceptance of socialistic pattern of society.
These consist of equal representatives of management and
workers, not exceeding twelve, at the plant level in selected
industrial units.
Functions:
 The council is to be consulted by management before
introducing changes in the modes of production,
production schedule, general administration problems,
etc.
 The council is to receive information, discuss and give
suggestions on general economic situation, state of the

4. market, production and marketing programmes,
organization and general functioning of the concern,
methods of production and work, balance sheet and
profit and loss account, long term capital budgeting
decisions, plans for expansion, modernization and
development, etc.
 The council is to take up accident prevention,
management of canteens, water, meals, safety, issue and
revision of work rules, avoidance of waste of time and
materials, absenteeism, indiscipline, training, etc. Thus
the council is entrusted with the responsibility of
administering welfare measures, supervision of safety
and health schemes, vocational training, apprenticeship
schemes, scheduling of working hours, breaks and
holidays and reward for suggestions.
Wages, bonus, individual grievances, personal problems
of workers and matters of collective bargaining are
outside the scope of Joint Management Councils.
Suggestion Schemes: Under this scheme, workers are invited and
encouraged to offer suggestions for improving the working of the
enterprise. A suggestion box is installed. Any worker can write his
suggestions and put it into the box. Periodically all the suggestions
are scrutinized by the Suggestion Committee. Good suggestions
are accepted for implementation and suitable rewards are given
to the concerned workers. Suggestion schemes encourage
worker’s interest in the functioning of the enterprise.
Joint Consultative Machinery: Service conditions in the
Government sector are dealt with at National Council (for Central
Govt. Employees), Departmental Councils and Regional or Office
Councils.
Tripartite Bodies: Several tripartite bodies have been constituted
at Central and State levels. The Indian Labour Conference,

5. Standing Labour Committees, Wage Boards and Industrial
Committees operate at the Centre. At the State level, State
Labour Advisory Boards have been set up. All these bodies play an
important role in reaching at agreements on various labour
matters. The recommendations of these bodies are advisory in
nature but carry a great weight on employers, trade unions and
the Govt. All these bodies constitute the consultative machinery
for the private sector.
Labour Welfare Officer: The Factory Act 1948 provides for the
appointment of a Labour Welfare Officer in every factory
employing 50 or more workers. The Officer looks after all facilities
in the factory provided for the health, safety and welfare. He
keeps liaison with both the employer and the workers and serves
as a communication link. He may contribute towards healthy
industrial relations through proper administration of standing
orders, grievance procedures, etc.