Indian Industrial Dispute Act of 1947

Causes of Industrial Dispute:

Disputes may result from various causes: psychological, potential, and economic. The most common cause of strikes has been economic reasons; other reasons have been influenced by nationalist, communist, and commercial ends. The Labor Bureau of Simla has observed causes such as: wages and allowances, bonus, personnel, vacation and work timings, violence (added in 1971), etc. An analysis has revealed the following facts:

During 1921-1931:

• 15.2% of demands were related to wages.

• 4.6% of demands were related to bonus.

• 4.4% of demands were related to vacation days and work-timings.

• 18.5% of demands were related to others.

During 1939-1947:

• 44.1% of demands were related to wages.

• 7.9% of demands were related to bonus.

• 15.6% of demands were related to personal matters.

• 5% of demands were related to vacation and work-timings.

During 1948-1957:

• 28.1% of demands were related to wages.

• 9.1% of demands were related to bonus.

• 30.9% of demands were related to personal matters.

• 7.2% of demands were related to vacation days and work-timings.

Industrial Disputes According to V.B. Singh:

Mr. V.B. Singh defines industrial disputes falling under these categories:

1. Income (wage items, price rates, allowances, bonus, minimum and basic wages, etc.)

2. Employment (holidays, leaves like sick leave, etc., work-timings, welfare activities, etc.), and

3. Technological changes (workload, standardization of raw materials, etc.).

What is Industrial Peace?

Industrial peace has, at a certain extent, worsened in the past few years. The social gap between management and labor has increased, resulting in increased disparities and frustration. Industrial peace has to be developed with mutually understanding the issues of labor, and it is imperative to have proper communication between management and labor union. Three ways to establish industrial have been suggested by the Royal Commission on Labor:
1. Appoint a labor officer who ensures labor welfare and serves as a representative to management.
2. Constitution of Works Communities for different industries, and
3. Development of stable and responsible trade unions.
 

What is the Indian Industrial Dispute Act of 1947?

The Industrial Dispute Act of 1947 has been described as the latest milestone in the industrial development in India. The Act has seen new additions in the past few years. However, the principal objectives of the Industrial Dispute Act of 1947 are:

Objectives of Indian Industrial Dispute Act:

1. To encourage good relations between labor and industries, and provide a medium of settling disputes through adjudicator authorities.
2. To provide a committee for dispute settlement between industry and labor with the right of representation by a registered trade union or by an association of employers.
3. Prevent unauthorized strikes and lockouts.
4. Reach out to labor that has been laid-off, unrightfully dismissed, etc.
5. Provide labor the right to collective bargaining and promote conciliation.

New Indian Industrial Dispute Act Principles:

1. A permanent conciliation committee for the speedy settlement of industrial disputes.
2. Compulsory arbitration in public utility services and enforcement of arbitration awards.
3. Strikes during proceedings of conciliation and arbitration meetings are prohibited.
4. Set aside specific times for conciliation and arbitration meetings.
5. Employers have to be obliged to communicate with labor unions.
6. Mutual consultation has to be set up between industry and labor by the Works Committee.
7. Disputes between labor and industry have to be forwarded to an Industrial Tribunal. If the Industrial tribunal fails to handle the case, the case should be forwarded to the appropriate government.

Authorities under Indian Industrial Dispute Act:

1. Works committee.
2. Conciliation officer.
3. Boards of conciliation.
4. Courts of inquiry.
5. Labor courts.
6. Industrial tribunals.
7. National tribunals.

What is an Industrial Dispute?

For a dispute to become an industrial dispute, the following parameters have to be met:
1. The dispute must be between:

a. Employers and employers.

b. Employers and labor.

c. Labor and labor.

2. It should be in relation to employment, non-employment, terms of employment, with the conditions of labor (except managers and supervisors), or must pertain to any industrial matter.
3. The workman shouldn't have an income over Rs 1600 per month.
4. There should be a valid and contractual relation between the employer and the employee. Furthermore, the employee must be employee at the time of the dispute.

Classifications of Disputes:

1. Conflict of Interest:

These conflicts arise due to disagreements in level of income, fringe benefits, job security, and/or other terms and conditions of employment. Dispute can be resolved on conciliation by compromising.

2. Grievance or Rights Disputes:

Also known as conflict of rights disputes, they occur due to general disagreements like: discipline, dismissal, payment of wages, overtime, time off entitlements, demotion, transfer, etc. Dispute can be resolved in labor courts and tribunals.

3. Disputes involving unfair labor practices:

This type of dispute occurs when Trade union members face discrimination. Unfair labor practices include: interference, restraint or coercion of employees, refusal to collective bargaining, recruitment of workmen during legal strikes, failure to implement awards, acts of violence, etc. Resolution occurs by rules laid down by the MRTU & PULP Act in the state of Maharashtra, or following the rules of the Industrial Dispute Act.