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GENESIS (Origin)
Conflict of interest between mgmt.& labour
Profit maximization goal of mgmt and worker’s expectation of better wage-major source of conflict
Conflict between “hands that produce” and “Hands that control”
When conflict acquires specific dimensions-it becomes a dispute
ESSENTIALS OF A DISPUTE
Must be a dispute between : Employers and workmen Workmen and workmen Employers
Connected with employment or non employment or it must pertain to any industrial matter
Supervisory staff does not draw wages exceeding 1600 p.m
Relationship must be in existence and should be result of a conflict.
CLASSIFICATION OF DISPUTE
A. INTEREST DISPUTESB. GRIEVANCE OR RIGHTS
DISPUTEC. DISPUTES OVER UNFAIR
LABOUR PRACTICESD. RECOGNITION DISPUTES
IMPACT OF INDUSTRIAL DISPUTES
Far reaching – Disturb economic, social & political life of country.
All suffer – Workers, employers, consumers, community & nation.
Huge wastage of mandays, loss of wages to workers, loss of employment
Unsuccessful strikes demoralize workers, sullen & shake confidence in Unions.
IMPACT OF INDUSTRIAL DISPUTES (contd..)Employer also suffers heavily through
reduction in sales, loss of market / Co. image & huge expenditure on crushing strike.
Industrial unrest creates law & order problem for public and bitterness lingers.
Affect national economy because of supply chain discontinuity.
CAUSES OF CONFLICT
A. INDUSTRY RELATED FACTORSB. MANAGEMENT RELATED FACTORSC. GOVERNMENT RELATED D. OTHER FACTORS
STRIKESDefined in section 2(q) of IDA ,1947 as“Cessation of work by a body of persons
employed in any industry,acting in combination,or a concerted refusal under a common understanding of a number of persons,who are or have been so employed to continue to work or to accept employment”
Hence three main elements:1.Plurality of workmen2.Cessation of work or refusal to do work3.Combined or concerted action
Go-slow
Industrial Disputes
Strikes
1. Primary Strikes 2. Secondary Strikes 3. Others
Stay Away Strikes
•Sit-down•Stay-in•Tool-down / Pen-down Strikes
Token or Protest Strikes
Work to Rule
Lightning or Cat-call strikes
Gherao
Sympathy Strikes •General
•Particular•Political•Bandhs
Picketing & Boycott
WHEN ARE STRIKES JUSTIFIED
Launched only for economic demands such as Pay, Fringe Benefits etc
Prima facie justification for demands which are reasonable & legitimate
Existing facilities are withdrawn If any unfair labour practice is there on
part of mgmt.No response from mgmt on demands in
spite of reminderNecessary in light of facts & used as a
last resort, after exhausting all other possibilities.
PREVENTION OF STRIKES
Management should adopt well defined , precise clear and HRM policies.
Management should ensure proper implementation of HR policies.
To ensure that an effective 2 way communication system is in operation to avoid any misunderstanding.
Speedy grievance redressal procedure.Recognition to representative UnionsEnsure joint consultation at various levels.
SETTLEMENT MACHINERY
A. CONCILIATIONB. ARBITRATIONC. ADJUDICATION
A. CONCILIATION
3rd Party intervention on promoting voluntary settlement of disputes.
Most frequently used method even in International Disputes
Conciliation is limited to encouraging parties to help develop their own proposed solutions.
Conciliator very often Govt. official. In larger disputes there are Conciliation boards.
B. ARBITRATIONA means of resolving a dispute by reference
to 3rd party who makes a decision binding on both parties.
It is a judicial process & rests on equity *& justice & has no place for compromise.
Since established for agreement both parties have more faith & faster to that in courts & labour tribunals.
Deprive labour of its right to go on strikeOften biased against labour & usually not
in their favour.
C. ADJUDICATIONInvolves intervention in disputes by a 3rd
party appointed by Govt. for deciding the nature of final settlement
When Govt. get a report of failure of conciliation proceedings, it refers the dispute to arbitration or adjudication.
When both parties agree, its called voluntary adjudication.
3 Tier System of Adjudication:-Labour CourtsIndustrial TribunalsNational Tribunals
UNFAIR LABOUR PRACTICE (5th Schedule, Section 2 (RA)On part of Employers.
To interfere or coerce in the exercise of their rights to organize, form, join a TU, or to engage in activities such as threatening workmen with dismissal.
To dominate, interfere or support to any Union by showing partiality.
To establish employer-sponsored Union.To dismiss workmen by way of victimization
or curbing his rights.Abolish work of regular nature & off loading.Transfer a person on malafied grounds.Recruit workers when strike is on.
UNFAIR LABOUR PRACTICE (5th Schedule, Section 2 (RA) contd..
On part of Workmen & their unions.To actively support strike deemed to be
illegal.To coerce workmen in exercise of their
right to self organization.To stage or encourage actions as ‘Go Slow”,
“Gherao” or demonstration at the residence of employers or damage Company property.
PROTECTED WORKMANHe cannot be proceeded against without
obtaining permission for dismissal, discharge or punishment from the Tribunal.
Related Law is Under Section 33 (3) & states that :-Protected workman means a workman who, being
an officer of a registered TU connected with the establishment, is recognized as such in accordance with rules made in this behalf.
In every establishment, no. of workmen to be recognized as protected shall be 1% of total no.,of workmen employed therein subject to a minimum no. of 5 & maximum of 100.