Industrial disputes settlement machinery for India

1.Work Committee: There is a Works Committee in factories employing 100 or more workers. [ section 3]. The committee will consist of equal number of representatives of employer and employees. Representatives of employees will be selected in consultation with Registered Trade Union. The Works Committee will first try to settle disputes.

2.Conciliation: Conciliation refers to the process by which representatives of employees and employers are brought together before a third party with a view to discuss, reconcile their differences and arrive at an agreement through mutual consent. The third party acts as a facilitator in this process. Conciliation is a type of state intervention in settling the Industrial Disputes. The Industrial Disputes Act empowers the Central & State governments to appoint conciliation officers and a Board of Conciliation as and when the situation demands.

Consolation Officer: If dispute is not solved, it will be referred to Conciliation Officer‘. He is appointed by Government. [Section 4]. The duties of a conciliation officer are:

• To hold conciliation proceedings with a view to arrive at amicable settlement between the parties concerned.
• To investigate the dispute in order to bring about the settlement between the parties concerned.
• To send a report and memorandum of settlement to the appropriate government.
• To send a report to the government stating forth the steps taken by him in case no settlement has been reached at.

Board of consolation. The matter may also be referred to Board of Conciliation‘. [section 4]. The Board of Conciliation consists of a chairman who must be an independent person and 3/4 members. Unsolved matters may be referred to labour tribunal / industrial tribunal / labour court (sec. 12 (5))

2.Adjudication: Adjudication is the ultimate legal remedy for settlement of Industrial Dispute. Adjudication means intervention of a legal authority appointed by the government to make a settlement which is binding on both the parties. In other words adjudication means a mandatory settlement of an Industrial dispute by a labour court or a tribunal. For the purpose of adjudication, the Industrial Disputes Act provides a 3-tier machinery:

1. Labour court
2. Industrial Tribunal
3. National Tribunal

Labour Court: The appropriate government may, by notification in the official gazette constitute one or more labour courts for adjudication of Industrial disputes relating to any matters specified in the second schedule of Industrial Disputes Act. They are:

• Dismissal or discharge or grant of relief to workmen wrongfully dismissed.
• Illegality or otherwise of a strike or lockout.
• Withdrawal of any customary concession or privileges.
• Where an Industrial dispute has been referred to a labour court for adjudication, it shall hold its proceedings expeditiously and shall, within the period specified in the order referring such a dispute, submit its report to the appropriate government.

Industrial Tribunal: The appropriate government may, by notification in the official gazette, constitute one or more Industrial Tribunals for the adjudication of Industrial disputes relating to the following matters:

• Wages
• Compensatory and other allowances
• Hours of work and rest intervals
• Leave with wages and holidays
• Bonus, profit-sharing, PF etc.
• Rules of discipline
• Retrenchment of workmen
• Working shifts other than in accordance with standing orders

It is the duty of the Industrial Tribunal to hold its proceedings expeditiously and to submit its report to the appropriate government within the specified time.

National Tribunal: The central government may, by notification in the official gazette, constitute one or more National Tribunals for the adjudication of Industrial Disputes in

Matters of National importance

Matters which are of a nature such that industries in more than one state are likely to be interested in, or are affected by the outcome of the dispute.

It is the duty of the National Tribunal to hold its proceedings expeditiously and to submit its report to the central government within the stipulated time.

4.Arbitration: A process in which a neutral third party listens to the disputing parties, gathers information about the dispute, and then takes a decision which is binding on both the parties. The conciliator simply assists the parties to come to a settlement, whereas the arbitrator listens to both the parties and then gives his judgment. There are two types of arbitration:

1. Voluntary Arbitration: In voluntary arbitration the arbitrator is appointed by both the parties through mutual consent and the arbitrator acts only when the dispute is referred to him.
2. Compulsory Arbitration: Implies that the parties are required to refer the dispute to the arbitrator whether they like him or not. Usually, when the parties fail to arrive at a settlement voluntarily, or when there is some other strong reason, the appropriate government can force the parties to refer the dispute to an arbitrator.

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