Industrial Dispute Act 1947
Industrial dispute means any dispute of difference between employees and employers or between
employers and workmen or between workmen and workmen, which is connected with the
employment or non-employment of the terms of employment or the conditions of work of any
person (The industrial Disputes Act 1947, Section 2K).
Every human being (say a labour) has certain requirements/needs e.g., economic needs, social
needs, security requirements. When these requirements do not get satisfied, there arises a conflict
between the worker and the capitalist/employer.
The common causes of industrial disputes are as follows:
Psychological Causes:
(i) Authoritarian leadership (nature of administration).
(ii) Clash of personalities.
(iii) Difficulty in adjusting in given conditions or with each other (employee and employer).
(iv) Strict discipline.
(v) Demand for self-respect and recognition by workers.
Institutional Causes:
(i) Non recognition of trade/labour union by the management.
(ii) Matters of collective bargaining.
(iii) Unfair conditions and practices.
(iv) Pressure on workers to avoid participation in trade unions.
Economic Causes:
(a) Terms and conditions of employment.
(i) More work hours.
ADVERTISEMENTS:
(ii) Working in night shifts.
(iii) Disputes on promotions, layoff, retrenchment and dismissal etc.
(b) Working conditions.
(i) Working conditions such as too hot, too cold, dusty, noisy etc.
(ii) Improper plant and work place layout.
(iii) Frequent product design changes etc.
(c) Wages and other benefits.
(i) Inadequate wages.
(ii) Poor fringe benefits.
(iii) No bonus or other incentives etc.
Denial of Legal and other Right of Workers:
(i) Proceeding against labour laws and regulations.
(ii) Violation of already made agreements i.e., between employees and employers.
Industrial Disputes:
Following are some important results which arise out of these disputes.
(i) Strike:
When workers collectively cease to work in an industry, it is called strike. “It means a
cessation of work by a body of persons employed in an industry acting in combination; or a
concerted refusal of any number of persons who are or have been so employed to continue to
work or to accept employment; or a refusal under a common understanding of any number of
such persons to continue to work or to accept employment.”
The Industrial Disputes Act 1947, Section 2(a).
For trade union strike is the most powerful weapon for forcing the management to accept their
demands.
The following are the types of strikes:
(a) Economic Strike:
Most of the strikes of workers are for more facilities and increase in wage levels. In economic
strike, the labourers generally demand increase in wages, leave travel allowance, house rent
allowance, dearness allowance etc.
(b) Sympathetic Strike:
When workers of one industry go on strike in sympathy with the workers of other industry who
are already on strike, it is known as sympathetic strike.
(c) Stay in Strike:
In this case, workers do not absent themselves from their place of work when they are on strike.
They keep control over production facilities but do not work. Such a strike is also termed as ‘pen
down’ or ‘tool down’ strike.
(ii) Boycott:
The workers may decide to boycott the company by not using its products. Such an appeal may
also be made to the public in general.
(iii) Picketing:
When workers are dissuaded from work by stationing certain men at the factory gates, such a
step is known as picketing. If picketing does not involve any violence, it is perfectly legal.
(v) Lockout:
An employer may close the place of employment temporarily for those workers who are on
strike. Such a step is technically known as Lockout. It is reverse of a strike and is a very
powerful weapon in the hands of an employer to pressurise the workers to return to the place of
work.
According to the Industrial Dispute Act 1947, Lockout means the closing of-place of
employment or the suspension of work, or the refusal by an employer to continue to any number
of persons employed by him.
(vi) Termination of Service of Striking Employees:
The employer may also terminate the services of those workers who are on strike by blacklisting them.
Their lists are also circulated to other employers so as to restrict or minimize their chances of getting
employment from those employers.
Settlement of Disputes:
If industrial peace is the backbone of a nation, strikes and lockouts are cancer for the same as
they effect production and peace in the factories.
In the socioeconomic development of any country cordial and harmonious industrial relations
have a very important and significant role to play. Industry belongs to the society and therefore
good industrial relations are important from society’s point of view.
Nowadays, industrial relations are not bipartite affair between the management and the work
force or employees. Government is playing an active role in promoting industrial relations. The
concept of industrial relations has therefore, become a tripartite affair between the employees,
employers and the government concerned.
It is possible to settle the industrial disputes if timely steps are taken by the management. Such
disputes can be prevented and settled amicably if there is equitable arrangement and adjustment
between the management and the workers.
The following is the machinery for prevention and settlement of industrial
disputes:
(i) Works Committees:
This committee represents of workers and employers. Under the Industrial Disputes Act 1947,
works committees exist in industrial establishments in which one hundred or more workmen are
employed during the previous year.
It is the duty of the Works Committee to promote measures for securing and preserving amity
and good relations between the employers and workers. It also deals with certain matters viz.
condition of work, amenities, safety and accident prevention, educational and recreational
facilities.
(ii) Conciliation Officers:
Conciliation Officers are appointed by the government under the Industrial Disputes Act 1947.
The duties of conciliation officer are given below:
(i) He has to evolve a fair and amicable settlement of the dispute. In case of public utility service,
he must hold conciliation proceedings in the prescribed manner.
(ii) He shall send a report to the government if a dispute is settled in the course of conciliation
proceedings along with the charter of the settlement signed by the parties.
(iii) Where no settlement is reached, conciliation officer sends a report to the government
indicating the steps taken by him for ascertaining the facts, circumstances relating to dispute and
the reasons on account of which settlement within 14 days of the commencement of the
conciliation proceedings.
Boards of Conciliation:
The government can also appoint a Board of Conciliation for promoting settlement of Industrial
Disputes. The chairman of the board is an independent person and other members (may be two
or four) are to be equally represented by the parties to the disputes.
The duties of the board include:
(a) To investigate the dispute and all matters affecting the merits and do everything fit for the
purpose of inducing the parties to reach a fair and amicable settlement.
(b) A report has to be sent to the government by the board if a dispute has been settled or not
within two months of the date on which the dispute was referred to it.
(iii) Court of Enquiry:
The government may appoint a court of enquiry for enquiring into any industrial dispute. A court
may consist of one person or more than one person in and in that case one of the persons will be
the chairman. The court shall be required to enquire into the matter and submit its report to the
government within a period of six months.
(iv) Labour Courts:
As per the Second Schedule of the Industrial Dispute Act 1947.
The Government sets up Labour Courts to deal with matters such as:
(i) The propriety or legality of an order passed by an employer under the standing orders.
(ii) The application and interpretation of standing orders passed.
(iii) Discharge or dismissal of workmen including reinstatement, grant of relief to workers who
are wrongfully dismissed.
(iv) Withdrawal of any customary concession of privilege.
(v) Illegality or otherwise of a strike or lockout, and all other matters not specified in the Third
Schedule.
(v) Industrial Tribunals:
A Tribunal is appointed by the government for the adjudication of Industrial Disputes.
(vi) National Tribunal:
A National Tribunal is constituted by the Central Government for Industrial Disputes involving
questions of national importance.
(vii) Arbitration:
The employer and employees may agree to settle the dispute by appointing an independent and
impartial person called Arbitrator. Arbitration provides justice at minimum cost.
Landmark Cases-
Hindustan Aeronautics Ltd. V Workmen AIR 1975 SC 1737
In this case the government of West Bengal had referred a dispute under section 10(1) of the
Industrial Disputes Act, 1947 for adjudication. The dispute was between the workmen working
at the branch of the company’s workshop and the company. All the shares of the company were
owned by the central government and it had an important role in controlling the industry.
The industrial Tribunal granted part relief to the workmen. In appeal the competency of the West
Bengal government to refer the dispute for adjudication was challenged by the company on the
ground that it was not the appropriate government to refer the dispute.
The Supreme Court while hearing the appeal filed by the Company held that the appropriate
government to refer the dispute was the government of West Bengal since the branch of
industry/company carrying out the work in West Bengal was a separate unit.
The workers were being paid at the branch and they were directly under the control of the
officers of the company at that branch. In situations where there was a disturbance of industrial
peace and a number of workmen were working, the appropriate government concerned for
raising the dispute and maintaining industrial peace was the West Bengal government.
Bangalore Water Supply and Sewerage Board V. A Rajappa AIR 1978 SC 548
In this case, the dispute was between employees of the Bangalore water supply and sewerage
board and its management. The petitioners raised an objection before the Labour Court that it
was not an industry and therefore the Labour Court had no jurisdiction to try the case.
The Labour Court rejected the objection and aggrieved by it the Management filed a Writ
Petition before the High Court of Karnataka. The High Court too rejected the objection and thus
the Management filed an appeal before the Supreme Court.
While hearing the Appeal, the Supreme Court laid down a test for declaring an entity as an
Industry. It was held that in order to qualify as an industry the following requisites have to be
fulfilled:
1. when there is a systematic activity which is carried on cooperation between
the employer and employee for the production and distribution of goods and
services all the satisfaction on the human wants and wishes;
2. It is in material as to whether there is an absence of profit gainful objective
behind the venture India public joint other sector;
3. the focus is on the nature of activity special emphasis on the employer-
employee relation;
4. if the organization is a trade or business then it would not cease to be one
based upon its philanthropic nature.
Thus, all organized activities having the above-mentioned elements not being a trade or business
would be considered as an industry. Thus the Supreme Court held that the Bangalore Water
Supply was an industry as per the Act.
Central Provinces Transport Services Ltd, Nagpur V. Raghunath
Gopal, Patwaardhan AIR 1957 SC 104
In this case, the Respondent worked with the Appellant Company. It was alleged by the
Appellants that some goods were stolen by the Respondent and in the domestic inquiry
conducted by the Appellant Company; he was found guilty and dismissed on the grounds of
misconduct and gross negligence.
The Respondent filed a case before the Industrial Court for reinstatement and it was argued by
the appellant that the case was not maintainable since it was not an industrial dispute but an
individual dispute.
The Industrial Court gave a finding in favor of the Respondent and when an appeal was filed by
the Appellant before the Labour Appellate Tribunal, it confirmed the findings of the Industrial
Court. Thus aggrieved by the order the Appellant filed an appeal before the Supreme Court.
The Supreme Court held that a dispute between an employer and an individual employee is not
an industrial dispute. However, it may become an industrial dispute if the cause is taken up by
the union or a number of workmen. It was held that the language of section 2 (k) of the Industrial
Dispute’s Act is wide enough to bring within its ambit a dispute between an employer and a
single employee.
In order to do so the individual dispute would have to gather support and backing from a
substantial number of workmen from the industry. If the cause is not supported by a number of
workmen then the same would be an individual dispute and not an Industrial Dispute.
Minerva Mills Ltd. Bangalore v Their Workmen
Two disputes of the Minerva Mills Ltd, Bangalore between the management and the workers and two
disputes of Mysore spinning and manufacturing co. limited, also between the management and the
workers were referred to the said industrial tribunal 10 (1) c of the Act for adjudication, several other
disputes were also referred to the tribunal. Till 15th June 1952, it was seen that only 5 out of 22
disputes were referred to it when the period of one year expired. In the four disputes which are
concerned, the tribunal had only framed the issues and not Actually proceeded to record any
evidence.
Conclusion
Thus, this was the Industrial Disputes Act which was passed by the government of India in 1947.
This Act ensures peace and harmony among all the industrial establishments, and if any conflict
arises, the provisions in the Industrial Disputes Act helps in solving the issue in a systematic manner
in which all the parties are satisfied and every decision made is fair and just.
