Prevention of Industrial Disputes:

Methods, Ways and Measures

• Industrial peace is of vital importance for
increasing industrial production and for securing
economic prosperity. Industrial unrest disturbs
the tranquility of the country and benefits
nobody. The avoidance of conflict between
employer and employee which results in work
stoppage is, therefore, of utmost significance. If
despite best efforts, any dispute is likely to occur
or actually occurs, an elaborate machinery is
needed to bring about its amicable settlement
• The various methods of prevention are:-
• 1. Functions of a Labour Welfare Officer
• 2. Tripartite and Bipartite Bodies
• 3. Standing Orders
• 4. Grievance Committee
• 5. Joint Management Council (JMC)
• 6. Code of Discipline
• 7. Collective Bargaining and other Preventive
Measures.
• Disputes between labour and capital is as old
as hills and mountains. Capitalist’s profit
maximization or wealth maximization goals
always clash with wage maximization goal of
workers. They are poles apart. The
contradicting goals result in industrial dispute.
Industrial peace implies absence of industrial
unrest or existence of a harmonious
relationships.
• According to Industrial Disputes Act, 1947,
Industrial Dispute means any dispute or
difference between employers and employees
or between employer and workmen or
between workmen and workmen, which is
connected with the employment or non-
employment or the terms of employment or
with the conditions of labour of any person.
• They fall into four categories:
• 1. Interest Dispute – These disputes arise out of
deadlock in negotiation.
• 2. Grievance Dispute – It arises due to day to day
grievance
• 3. Unfair Labour Practice – These disputes arise
out of interference with the exercise of right to
organize.
• 4. Recognition Dispute – These disputes arise out
of recognition of trade union as a bargaining
agent.
• 1- Under Factories Act, labour welfare officer has to
discharge the following function:
• a. Supervision of welfare programmes – He has to supervise
welfare programmes like housing, recreation, sanitation,
working of joint committees, grievance redressal, etc.
• b. Counselling to workers – He has to provide counselling to
workers on personal and family problems, rendering advice
to enable them to adjust to work environment and
education.
• c. Advising on policy formulation – He has to educate
management in the matter of formulating policies relating
to labour welfare measures, training programmes meeting
statutory obligations of workers, developing fringe benefits
and workers education.
• d. Liaison with workers – He has to establish liaison with
workers so that the latter may appreciate the need for
harmonious relations between management and worker,
understand the implications of HR polices and come to a
settlement with the management.
• e. Liaison with management – Establishing liaison with
management so that the management appreciates the
worker’s view points on various matters, different heads of
departments meet the statutory obligations under the Act,
maintaining congenial relations with workers and
implementing various welfare schemes.
• f. Working with external public – This includes establishing
contact with factory inspectors, medical officers and other
agencies in the community to improve productivity and
productive efficiency of workers.
• 2. Tripartite and Bipartite Bodies:
• Tripartite bodies involve employee, employer
and Government. Bipartite committee
comprises of employer and employee.
Tripartite committee includes committees on
Conventions, steering committee on wages,
central implementation and evaluation
machinery, Central Board of Worker’s
Education and National Productivity Council.
• Workers committee is an example for
Bipartite committee. This committee is
represented by employer and employees.
It is established through legislation.
Method of constitution of this committee
is specified in the enactment.
 Functions of Workers Committee:
• i. Promoting industrial goodwill.
• ii. Securing cooperation from the employer and
the employees.
• iii. Removing causes of friction between parties to
dispute.
• iv. Creating an atmosphere for voluntary
settlement of issues like wage benefits, bonus,
terms of employment, workload, welfare,
training, promotion, transfer, etc. Inter-union-
rivalry, union’s opposition, employee’s reluctance
to use workers committee for setting dispute
hinder its effective functioning.
• 3. Standing Orders:
• These are orders governing the condition of
employment under Industrial Employment
(Standing Orders) Act of 1946. It regulates
conditions of employment from the entry
level to exit of employees. It serves as a code
of conduct for employees during their service
in a given undertaking.
 National Commission of Labour, 1999,
stipulates the following in the standing orders:
• i. Establishment employing 20 or more should put
in place standing orders or regulations.
• ii. Standing orders can be prepared by employer
and employees/ recognized unions/federations.
• iii. In case of disagreement between the
employer and the employee, matter would be
determined by the certifying authority i.e.,
Labour Commissioner having jurisdiction. Once
the standing order is passed, it is binding on the
parties to dispute.
• 4. Grievance Committee:
• Grievance committee comprising the
representatives of employees and employer
can be established .and can periodically
examine the issues and give redressal. The
committee may inform the progress or status
of grievance reported, in case it is felt that
redressal may take time.
• The committee may explain its inability to the
grievant whenever it is not possible to redress
the grievance within the scope of its authority.
It may advise the grievant as to what may be
done to further have it redressed. Thus, such a
professional functioning of grievance
committee can shoot trouble which may
snowball into dispute at a later stage.
• 5. Joint Management Council (JMC):
• Salient features of JMC include:
• i. This scheme is voluntary.
• ii. The strength of JMC may be a minimum of 6
members and maximum of 12 consisting equal
number of representatives of employer and
employees.
• iii. Decision arrived at JMC has to be unanimous.
• iv. It can be set up in units with a workforce of
500 or more workers.
• 6. Code of Discipline:
• ndian Labour Conference in its 15th session in 1958 evolved
code of discipline for ensuring sound industrial relation
climate. The code was ratified by employee unions like
INTUC, AITUC, HMS and UTUC and employers’ associations
likes Employer Federation of India, AIUE, AIMO, etc., w.e.f.
June 1, 1958.
• It provides:
• i. Strikes and lockout should be declared with prior notice.
• ii. No party should take action without consulting the other.
• iii. Existing machinery for dispute settlement should be fully
exhausted.
• 7. Collective Bargaining:
• a. Joint Consultation:
• When parties to industrial relations know each other and
have mutual confidence in each other, this mechanism is
effective. Management should listen to worker’s grievance
and the workers should understand the management and
ensure maximum cooperation at consultative meetings.
Formal procedure for consultation should be strictly
observed. The discussions should be free and frank. Top
management should use this forum to mirror the
viewpoints of workers and drive home its point to the
workers. Consultation should be practised at all levels of
management.
• b. Strong Trade Union:
• Strong Trade Union through its mighty bargaining
power can achieve a better deal from management.
• c. Labour Partnership:
• Sharing a portion of profit with workers in addition to
normal wage creates very good psychological climate
conducive to industrial peace. It enhances social
justice. It sends a positive message about the attitude
of management. Workers develop a sense of loyalty to
the organization. This nips all the troubles in the bud
and ensures a sound IR climate.