USE OF ADR IN LABOUR
DISPUTES IN INDIA
submitted by – Robish kumar submitted to – Dr. Shalini Tomar
Introduction
Resolving individual labour rights disputes in recent years has taken
new significance and prominence for both domestic and multinational
corporations, especially in a country like India, wherein traditional justice
delivery mechanism is overburdened, time consuming and costly.
Alternative Dispute Resolution (ADR) has evolved as a perfect alternative in
such a situation, for speedy and cheaper settlement of the disputes.
Considering the delay in resolving the dispute Abraham Lincon has once
said:
"'Discourage litigation. Persuade your neighbors to compromise whenever
you can point out to them how the nominal winner is often a real loser, in
fees, expenses, and waste of time".
importance
◦Lok Adalat is the most up-to-date and cheap method of
providing justice at peoples' doors.
◦People feel a sense of relief and calm.
◦People have no grievance even if the decision of a Lok Adalat
is not favorable to them since Lok Adalat is free from
prejudice, bias and revenge.
Meaning of Alternative Dispute
Resolution (ADR)
Alternative Dispute Resolution is a term that refers to
several different
methods of resolving business-related disputes outside
traditional legal and
administrative forums.
According to World Bank Group, "ADR is a wide range
of means to resolve
conflicts that are short of formal litigations."
Brief History of Labour Laws in
India
The Indian Factories Act, 1881 is the first Labour Legislation in the subcontinent
which was passed on the basis of a report of Major Moore. This
Act was repealed after 10 years. A Commission was made by the British
government in 1890 that submitted a report to the government. The report
stated enactment of new law. Based on the report of the Commission, the
Factories Act, 189 I came into being. In 1911 another Act named Indian
Factories Act, I89I was passed. In 1929 the King Emperor appointed
"Royal Commission on Labour" that submitted a report in 1931. The
Factories Act. 193-1 came into being on the basis of the recommendations of
the Royal Commission on Labour.
Brief History of Alternative
Dispute Resolution (ADR) in India.
Arbitration has a long history in India. In ancient times, people often
voluntarily submitted their disputes to a group of wise men of a community--
called the sabhasandsamitis, who were identical to panchayats-for a binding
resolution. Submission of disputes to these groups was voluntary and there
was no compulsion, like today's arbitration system. In Panchayats, Panchas
where chosen by virtue of their personal qualities of being fair-minded,
impartial and knowledgeable. The panchayats were held in great veneration.
They proceeded in an informal way, untrammeled b technicalities of
procedure and laws of evidence. Also, arbitration was governed by social
sanctions. But, the simple and informal system of arbitration through the
Panchayats, though useful, was ineffective to deal with the complexities
arising out of advancement in social and economic spheres.
Industrial Disputes Act, 1947 and
Alternative Dispute Resolution
Industrial Disputes Act, 1947 was the first legislation in India to
introduce concept of ADR in labour disputes. Conciliation has
been statutorily recognized as an effective method of dispute
resolution in relation to disputes between workers and the
management. The provision in the 1.0. Act makes it attractive
for disputing parties to settle disputes by negotiation and failing
that through conciliation by an officer of the Government,
before resorting to litigation. Several provisions in the Act get
the scene for conciliation to be more successful.
Industrial Disputes Act, 1947 and Alternative
Dispute Resolution.
The long title of the act underlines the goal of the act,
which says, "An Act
to make provision for the investigation and settlement of
industrial
disputes ... " for achieving this object, Act has included
certain provisions for
amicable settlement ofthe dispute. Some of them are as
follows;
Section 4: Conciliation officers.
The Bombay Industrial Relations Act, 1946 and
Alternative Dispute
Resolution.
The Bombay Industrial Relations Aet, 1946, has also recognized
conciliation
for settlement of labour disputes. The Act defines the term conciliation
proceedings10
, Conciliator.11
Sec. 6 authorizes the state government to appoint chief conciliator and
additional conciliators for resolution of labour disputes.
Sec. 7 (I) authorizes the establishment of Board of Conciliation for
resolution of industrial dispute.
Use of Alternative Dispute Resolution (ADR) in Labour
Disputes
in UN
Since 2009, internal resolution of UN labour disputes has taken
place
through the UN Internal Justice System, which is managed by the UN
Office
of Administration of Justice.
In this system, UN employees who have a dispute are encouraged to
use
ADR methodologies, rather than litigation, to resolve their work-
disputes,
which is facilitated by the UN Ombudsman and Mediation Services.
Party autonomy
ADR is completely based on the concept of party autonomy. It puts
parties in control by giving them an opportunity to tell their side of the
story and have say in final decision.
CONCLUSION
Use of ADR in labour disputes may be helpful for speedier and et!e:;,•,,_
settlement of dispute without hampering the relations of persons emplc ycC ;.,
industry. Because of the various benefits and characteristics of ADR "stem.
even international institutions like UN and ILO are promoting the usc or'
ADR in labour disputes. ADR may not produce the result in each cas~. but i"
will definitely be helpful in reducing the disputes. Therefore in country like
India, wherein, courts are over burdened with thousands of cases. and
majority of labour class is poor (especially in unorganized sector) there is
strong case for enhanced use of ADR mechanism for resolution of labour
disputes.
