MACHINERIES PROVIDED FOR

SETTLEMENT OF DISPUTES BY INDUSTRIAL

DISPUTES ACT, 1947.
INTRODUCTION TO INDUSTRIAL DISPUTES ACT, 1947.
2

 Prior to the year 1947, Industrial Disputes were being

settled under the provisions of the Trade Disputes Act,
1929. Experience of the working of the 1929 Act revealed
various defects which needed to be overcome by a fresh
legislation. Accordingly the Industrial Disputes Bill was
introduced in the Legislature. The Bill was referred to the
Select Committee. On the recommendations of the Select
Committee amendments were made in the original Bill.

v
3

 The Industrial Disputes Bill having been passed by the Legislature

received its assent on 11th March, 1947. It came into force on 1st
April, 1947 as THE INDUSTRIAL DISPUTES ACT, 1947.
 The Industrial Disputes Act, 1947 is a Piece of Central Legislation
enacted to both employers and employees and thereby promote
industrial progress.
 The Act extends to the whole of India and applies to every industrial
establishment carrying on any business, trade,

v
4

manufacture or distribution of goods and

irrespective of the number services, of
therein. workmen employee

The Industrial Dispute Act, 1947 armed the government
with powers which could be used whenever it considered
fit to intervene in Industrial Disputes.
 DEFINITION OF Industrial Disputes.
5


 “Industrial Disputes means any dispute or difference between

employers and employers, or employers and workmen or
between workmen and workmen which is connected with
employment or non-employment or terms of employment or
conditions of labour of any person.”- Industrial
Disputes Act, 1947 [Section
2(k)].
6

 Industrial Disputes means any conflicts, unrest or dissentation

between the workers and the management on any ground.

Industrial strifes constitute militant and organized protest
against existing industrial condition. They are symptoms of
industrial unrest in the same way that boils are symptoms of a
disorder of body.
 ESSENTIALS OF I n d u s t r i a l D i s p u t e
A c t , 1947.
7

 There must be a dispute or difference.

 The dispute or difference must be between employers & employers or
between employers & workmen or between workmen & workmen.
 The dispute or difference must be connected with employment or non-
employment or terms of employment or with the condition of labor of any
person.
 Dispute should be related to working industry.
 OBJECTIVES OF INDUSTRIAL DISPUTE
ACT,
8 1947
 To make provision for the investigation settlement of
of
industrial dispute and for certain other purposes.
 To ensure the industrial peace.
 To ensure harmonious relationsthrough monitoring of
industrial relations in the organization.
 To implement the settlement of disputes.
 RELEVANT ILO STANDARDS
9

 The International Labor Organization [ILO] has set up

International Standards related to labor matters including
industrial dispute settlement. The ILO conventions and
recommendations which are relevant to industrial dispute
settlements are as follows:
10

 The termination of employment convention, 1982.

 Examination of grievance recommendation, 1967.
 Voluntary conciliation and arbitration recommendation, 1951.
 Collective bargaining convention, 1981.
 The tripartite consultation [International Labor Standards] convention, 1976.
 Right to organize collective bargaining convention, 1948.

 The freedom of association and protection of right to organize convention,

1948.
 Machineries provided f o r s e t t l e m e n t o f
d i s p u t e s b y I n d u s t r i a l D i s p u t e s A c t , 1947.
11

 The Industrial Disputes Act provides an elaborative and

effective machineries for bringing about Industrial Peace
in an organization by setting up the following Authorities
for the Investigation and Settlement of industrial
Disputes.
12

 Works Committee [Sec. 3].  Industrial Tribunals [Sec. 7(A)].

 Conciliation Officer [Sec. 4].  National Tribunals [Sec. 7(B)].
 Board of Conciliation  Voluntary Arbitration
[Sec. 5]. [Sec. 10(A)].
 Courts of Inquiry [Sec. 6].  Adjudication.
 Labor Courts [Sec. 7].  Mediation.
 Wo r k s c o m m i t t e e

13

According to Section 3, of the act empowers the appropriate

government to require an employer of any industrial
establishment where 100 or more workmen are employed or
have been employed on any day in the preceding 12 months to
constitute a Works Committee.
 This committee consists of representatives of the employer
and the workmen engaged in the establishment so that the
number of representatives of the workmen is not less than
number ofrepresentatives of the employer.
 .

14

 The representatives of the workmen shall be chosen among

the workmen engaged in the establishment and in consultation
with their trade unions, if any, registered under the Trade
Unions Act,1926.
15

 The duty of the works committee is to promote measures for

securing and preserving amity and good relations between the
employer and the workmen, and to that end to comment upon
matters of their common interest or concern and endeavor to
compose any material difference of opinion in respect of such
matters.
 Conciliation Officer

16
 According to Section 4, the appropriate government may, by
notification in the official gazette, appoint such Conciliation
Officers, charged with the duty of mediating in and promoting
the settlement of industrial disputes.

A Conciliation Officer may be appointed for a specified area
or for specified industries in a specified area or for one or more
specified industries and his appointment may be permanent or
temporary.
 The Conciliation Officer for the purpose of bringing
about a
settlement of the dispute, without delay, investigate
the
17
dispute and all matters affecting the merits and the right
settlement thereof and may do all such things as he thinks fit
for the purpose of inducing the parties to come to a fair and
amicable settlement of the disputes.
 B o a r d o f Conciliation

18


 According to Section 5, the appropriate government may as

occasion arises by notification in the official gazette constitute
a Board of Conciliation for promoting the settlement of an
industrial dispute.

A Board shall consist of a chairman and two or four other
members, as the appropriate government thinks fit.
 The chairman shall be an independent person and the other
19

members shall be persons appointed in equal numbers to

represent the parties to the dispute. Board of Conciliation

enjoy more powers than those enjoyed by Conciliation Officer.
 C o u r t s o f Inquiry

20

 According to Section 6, The appropriate government may as

occasion arises by notification in the official gazette constitute a
Court of Inquiry for inquiring into any matter appearing to be
connected with or relevant to an industrial dispute.
 A Court may consist of one independent person or of such number
of independent persons as the appropriate government may think
fit and where a Court consists of two

v
21

or more members, one of them shall be appointed as the chairman.

 A Court, having the prescribed quorum, may not act

withstanding the absence of the chairman or any of its
members or any vacancy in its member.
 Labor Courts
22

 According to Section 7, The appropriate government may, by

notification in the official gazette, constitute one or more Labor
Courts for the adjudication of industrial disputes relating to any
matter and for performing many other functions as may be
assigned to them, under this Act.
 A Labor Court shall consist of one person only to be appointed
by the appropriate government. The Labor Court has an
23

inherent right in the interest of justice to seek proper assistance

and grant ‘leave’ to a party before it is represented by a legal
practitioner.
 I n d u s t r i a l Tribunals

24

 According to Section 7[A], the appropriate government may,

by notification in the official gazette, constitute one or more
Industrial Tribunals for the adjudication of industrial disputes
relating to any matter and for performing many other
functions as may be assigned to them under this Act.
 An Industrial Tribunal shall consist of one person only to be
appointed by the appropriate government.
 Generally, Industrial Tribunal are appointed for
adjudicating
25

on the matters which have failed to form a solution through

the other machinery of conciliation authorities .These
Tribunals are somewhat different from courts though they
have been empowered to adjudicate on industrial disputes.
 National tribunals
26

 According to Section 7[B], The Central Government may, by

notification in the official gazette, constitute one or more
National Tribunals for the adjudication of industrial disputes
which, in the opinion of the Central Government, involve
questions of national importance or are of such a nature that
industrial establishments situated in more than one State are
likely to be interested in, or affected by, such disputes.
27

 A National Tribunal shall consist of one person only to be

appointed by the Central Government. The Central
Government may, if it so thinks fit, appoint two persons as
assessors to advise the National Tribunal in the proceeding
before it.
 Vo l u n t a r y A r b i t r a t i o n

28

 Voluntary Arbitration is one of the recognized and democratic

ways for settling industrial dispute it is the best method for
resolving industrial conflicts and is a close supplement to
collective bargaining.
 It is quicker way of settling industrial dispute. It is the
functioning of democracy in industry that inculcates some
degree of union management accommodation.
29

 Voluntary Arbitration in India was introduced and experimented for

the first time in textile industry of Ahmadabad as far back as 1920
under the initiative and guidance of Mahatma Gandhi.

The Industrial Dispute Act, 1947 as originally passed, did not
contain any provision for Voluntary Arbitration. In 1956,this act was
amended and a new Section 10 [A] was inserted providing for
voluntary reference of disputes to arbitration.
30

 The National Arbitration Promotion Board [NAPB] was set up

by the government of India in 1967 to strengthen the system
of Voluntary Arbitration in our country.
 Adjudication

31

 Adjudication means a mandatory of industrial disputes by

Labor Courts or Industrial Tribunals or National Tribunals under
this act or under any other corresponding state statues.
 The government generally refers an industrial dispute for
adjudication on failure of conciliation proceedings.
Adjudication machinery has exercised considerable influence
on several aspects of conditions of work.
32

 By and large the ultimate legal remedy for the settlement of

an unresolved dispute is its reference to Adjudication by the
appropriate government.

om
 Media t i o n

33

 Mediation is a process in which top parties involved in contract

negotiation by which an outside party is called in by union and
management to help them reach a settlement.
 The mediators function is to provide a positive environment for
dispute resolution by drawing on extensive professional
experience in the field of labor management interaction.
34

 A mediator must possess attributes such as

impartiality, and fairness. A Mediator must integrity, be

communicator, should know the importance of timing and

must have trust and confidence of the parties. effective
 Conclusion

35

This act ensures harmonious relations through:

a) Monitoring of industrial relations in Central Sphere.

b) Intervention, mediation and conciliation in

industrial disputes in order to bring about settlement of
disputes.

c) Intervention in situations of threatened strikes and

lockouts with a view to avert the strikes and lockouts.

d) Implementation of settlements and awards.

36

 The Industrial Disputes Act, 1947 is a piece of Central

Legislation enacted to both employers and employees and
thereby promote industrial progress.
 The Act extends to the whole of India and applies to every
industrial establishment carrying on any business, trade,
manufacture or distribution of goods and services, irrespective
of the number of workmen employee therein.
 BIBILIOGRAPH

37 Y
 Labour Laws.
By - Taxmann’s.
Publication: Taxmann Allied Services Pvt. Ltd.

 Industrial Relation.
By - A.M. Sarma.
Publication:
Himalaya
Publishing House.

[email protected] BY:MANISHA VAGHELA