Industrial Relations

2(a) Meaning and Scope of Industrial Relations

Introduction
Industrial relations refer to the relationship between employers, employees, trade unions, and
the government, focusing on managing workplace disputes, negotiations, and regulations.

Industrial relations refer to the complex interactions between employers, employees, and the
government within the workplace environment. It encompasses the regulations, negotiations,
and relationships that affect labour conditions, worker rights, and employment terms. Effective
industrial relations is crucial for maintaining a harmonious work environment and addressing
issues such as disputes, labour laws, and collective bargaining. By fostering positive
relationships and clear communication between all parties, organizations can ensure a more
productive and fairer workplace. Understanding and managing industrial relations effectively
contributes to both organizational stability and employee satisfaction.

Industrial relations are the dynamic interactions between employers, employees, and
institutions that regulate their relationships in the workplace. Industrial relations have a central
role to play in facilitating smooth business operations, employee satisfaction, and legal and
ethical employment practices. An effective industrial relations system fosters improved
communication, minimizes conflict, and increases productivity. From wage bargaining and
working conditions to grievance management and union-management communication,
industrial relations include everything in labour management.

Industrial relations basically seek to ensure peace and productivity at the workplace, along with
protecting workers' rights while also ensuring the interests of the employer are upheld.

Key elements
• Employers: Responsible for providing work, wages, and working conditions.
• Workers: People who deliver labour for salary, typically being represented by trade
unions.
• Trade Unions: Associations created to safeguard the rights of workers and bargain
with employers in their interest.
• Government: Imposes labour laws, serves as a mediator, and enforces compliance
with rules.

Objectives
The objective industrial relations aim at forming a congenial working relationship between the
employer, employees and in some cases with other stakeholders. Meeting its objectives can
ensure, what it strives to maintain by way of not aroused issues at the workplace and address
employment matters efficiently.

Promote industrial peace

The foremost objective of IR is to maintain harmony in the workplace, ensuring that disputes
are resolved peacefully without disruptions to production.
Enhance productivity
By fostering a cooperative work environment, IR aims to increase productivity. This includes
encouraging collaboration, effective communication, and alignment of goals between
management and employees.
Promote fair employment practices
Ensuring fair employment practices across the workplace is one of the key goals of industrial
relations. It would include establishing and enforcing fair pay, working conditions and job
security standards. IR ensures that employees’ rights, such as fair wages, safe working
conditions, and the right to collective bargaining, are respected and protected under the law.
Enhance communication and cooperation
Industrial relations stand for good communication between an employer and his employees.
Good communication and teamwork resolve concerns, dissolve conflicts while creating a more
productive working atmosphere. When communication is improved, employees will
understand and trust one another better leading to healthier working relationships.
Facilitate conflict resolution
Dispute resolution process to resolve disputes/ conflicts between employer and worker. Most
commonly involves mechanisms are mediation, arbitration and negotiation to resolve
grievances or disputes. Resolving conflicts effectively can mean the difference between
keeping the workplace functioning smoothly and nullifying small issues before they blow up.
Ensure compliance with labour laws
Industrial relations focus on ensuring that both employers and employees follow the necessary
rules/laws for the labour sector. These were about the rules on wages, work time, health and
safety or workers' rights. Adherence to any of these laws is important because it helps you
avoid lawsuits and also ensures that the workplace remains legal, a must for maintaining an
ethical environment.

Foster a positive work environment

Creating and sustaining a positive work environment is a central objective of industrial
relations. This involves promoting job satisfaction, employee engagement, and overall well-
being. A positive work environment enhances productivity, reduces turnover, and contributes
to the long-term success of the organization.
Economic development
Good industrial relations contribute to the overall economic development of a country by
ensuring the smooth functioning of industries, which in turn boosts national productivity and
economic growth.
Minimize wastage
Good industrial relations help increase and ensure continuous production. Good industrial
relations thus help minimize wastage of labour and material resources.

Industrial democracy
To establish and nurse the growth of an Industrial Democracy based on labour partnership in
the sharing of profits and of managerial decisions, so that an individual’s personality may grow
to its full stature for the benefit of the industry and of the country as well.
Government control
To establish government control of such plants and units as are running at a loss or in which
production has to be regulated in the public interest.
Mutual understanding and good-will
To safeguard the interests of labour and of management by securing the highest level of mutual
understanding and good-will among all those sections in the industry which participate in the
process of production.
Scope of Industrial Relations
The scope covers collective bargaining, dispute resolution, employee welfare, and legal
compliance within the workforce.
Employment conditions
The extent of industrial relations goes beyond just setting up employment conditions like fair
wages, working hours and job security. Above all, it means bargaining for and defending norms
that guarantee fairness in how employees are treated and their basic needs are met. It is focused
on building a workplace culture where employees view themselves as important and are
committed to succeeding.
Collective bargaining
This may include discussions about wages, benefits, working conditions and various terms of
employment. Ultimately, the objective is to reach agreements that are in keeping with what
most of those employees want for themselves while meeting their needs. Collective bargaining
levels the field and creates a neutral, balanced work environment.
Dispute resolution
It helps in settling disputes, disagreements between workmen or trade union leaders and the
employer. These procedures can be used to deal with unfair treatment of workers, violation of
contractual terms or disputes over labour relations. Disputes resolution is necessary if one
wants to have healthy industry and continuing operations of any factory. The scope of IR
includes mechanisms for resolving conflicts between employers and employees. This could
involve mediation, arbitration, or labour courts.

Compliance with labour laws

Compliance with labour laws and regulations is one of the important elements in this area. That
includes following the law with respect to employment practices, health and safety issues and
labour rights. Organizations have to be aware of legislative changes and follow practices that
are legally compliant. Industrial relations deal with the implementation and enforcement of
labour laws, including minimum wage laws, working conditions, and occupational safety
standards.
Industrial democracy
IR encompasses the concept of industrial democracy, where workers are given a voice in the
decision-making processes that affect them.
Training and development
Improving employee skills through training and development programs is another critical area
within the scope of IR, helping to ensure that workers are up to date with industry standards
and trends.

The scope of industrial relations is, therefore, very wide and cuts across many aspects of the
human interaction that engages employers and employees. Such aspects include human
resource management, labour relations, legal compliance, resolution of conflict, and workplace
harmony. Industrial relations influence not only the workforce but also productivity,
profitability, and the overall health of the economy.

2(b) Impact of Industrial Relations

Industrial relations, the study of relationships between employees, employers, and trade unions,
has a profound impact on both the workplace and the wider economy. Good industrial
relations foster a stable and productive work environment, reducing conflicts, improving
communication, and enhancing cooperation. This ultimately leads to increased productivity,
employee satisfaction, and organizational success.
Positive Impact:
• Reduced industrial disputes:
Good industrial relations minimize disputes, strikes, and lockouts, ensuring a smoother,
more efficient workflow. Good industrial relations reduce the industrial disputes. Disputes
are reflections of the failure of basic human urges or motivations to secure adequate
satisfaction or expression which are fully cured by good industrial relations. Strikes,
lockouts, go-slow tactics, gheraos and grievances are some of the reflections of industrial
unrest which do not spring up in an atmosphere or industrial peace. It helps promoting co-
operation and increasing production.
• Increased productivity:
Improved communication, cooperation, and a positive work environment contribute to
higher worker morale and efficiency, leading to increased output.
• Enhanced employee morale and motivation:
When employees feel respected, valued, and have a voice in the workplace, their morale
and motivation improve, leading to better performance. Good industrial relations improve
the morale of the employees. Employees work with great zeal with the feeling in mind that
the interest of employer and employees is one and the same, i.e., to increase production. The
employer in his turn must realize that the gains of industry are not for him alone but they
should be shared generously with his workers.
• Improved employer-employee relationships:
Fair labour practices, open communication, and mutual respect build stronger relationships
between employers and employees, fostering trust and cooperation.
• Organizational stability:
A harmonious workplace minimizes disruptions and ensures consistent operations,
contributing to long-term organizational stability.
• Economic growth:
A stable, productive workforce contributes to overall economic growth and development.
• Protection of workers' rights:
Industrial relations frameworks ensure that workers' rights, such as fair wages, safe working
conditions, and the right to organize, are protected.
• Social harmony:
Fair and equitable labour practices contribute to a more just and equitable society.
• Reduced wastage
Good industrial relations are maintained on the basis of cooperation and recognition of each
other. It will help increase production. Wastage of man, material and machines are reduced
to the minimum and thus national interest is protected.
Thus, from the above discussion it is evident that good industrial relations is the basis of
higher production with minimum cost and higher profits. It also results in increased
efficiency of workers. New projects are introduced for the welfare of the workers and to
promote the morale of the people at work.
Negative Impact:
• Reduced productivity:
Conflicts, disputes, and a negative work environment can significantly decrease
productivity and efficiency.
• Increased costs:
Disputes, strikes, and lockouts can result in significant financial losses for businesses,
including lost production, damage to property, and legal fees.
• Increased employee turnover and absenteeism:
A hostile work environment can lead to employees leaving their jobs or taking frequent
absences.
• Damage to employer reputation:
Industrial disputes and labour unrest can damage the reputation of a company, making it
harder to attract and retain talent and customers.
• Social unrest:
Severe industrial disputes can lead to broader social unrest and instability.

2(c)Role of Government in Industrial Relations

Industrial relations play a crucial role in shaping the economic and social landscape of any
nation. In the case of India, a country known for its diverse culture, vast population, and rapid
industrialisation, the dynamics of industrial relations hold even greater significance. Over the
years, India has witnessed a series of reforms and challenges in its labour and industrial
policies, aiming to create a harmonious and productive work environment.
In the field of industrial relations, state intervention is essential as the state has a vital interest
in preserving Industrial peace in a country.
The Ministry of Labour & Employment is one of the oldest and important Ministries of the
Government of India. The main responsibility of the Ministry is to protect and safeguard the
interests of workers in general and those who constitute the poor, deprived and disadvantage
sections of the society, in particular, with due regard to creating a healthy work environment
for higher production and productivity and to develop and coordinate vocational skill training
and employment services. These objectives are sought to be achieved through enactment and
implementation of various labour laws, which regulate the terms and conditions of service and
employment of workers. The State Governments are also competent to enact legislations, as
labour is a subject in the concurrent list under the Constitution of India.
At present, there are more than 40 labour related statutes enacted by the Central Government
dealing with minimum wages, accidental and social security benefits, occupational health and
safety, welfare and conditions of employment, formation of trade unions, etc.
The preamble of the Indian constitution embodies the highest and the noblest ideals of justice,
social, economic and political which are the corner stones of a welfare state.
Industrial relations have been closely guided by the state since India become independent. The
Directive Principles of the Constitution enjoins upon the state to establish a welfare state. Since
independence of the country, state’s role in matters affecting management labour relations and
labour welfare became more active and positive.
Since then, the state's policy has been to foster and promote closer relationship between
employers and workers. Consultative machinery has been geared up at the plant, Industry and
national levels with the formation and convening of high power committees like the tripartite
Indian Labour Conferences at the centre, setting up of standing Labour Committees and
Industrial Committees and initiating the scheme of Joint Management Councils and helping
laying foundations of codes of discipline for the adoption of employers and the employees and
their organisations and through suitable legislative measures for prevention and settlement of
industrial disputes. Thus, it can be concluded that Indian Government is playing a positive and
constructive role in Industrial relations of the country.

The articles which concern Industrial relations under DPSP of the constitution of India are
Article 39, Article 41, Article 42, Article 43 and Article 43A.
• Article 39: These principles include promoting the welfare of the people, providing
adequate means of livelihood, ensuring equal pay for equal work, and securing the health
and strength of workers and children.
• Article 41: The State shall make effective provision for securing the right to work and to
public assistance in cases of unemployment, sickness and disablement.
• Article 42: The State shall make provision for just and humane conditions of work and for
maternity relief.
• Article 43: The State shall direct its policies towards securing a living wage, a decent
standard of life, and the social and cultural opportunities for all workers.
• Article 43A: The State shall take steps to secure the participation of workers in the
management of industries.

The Government plays a crucial role in industrial relations in India, acting as a regulator,
mediator, facilitator, and sometimes an employer.
Here's a more detailed look at the government's role:
• Legal framework: The government sets the legal foundation for industrial relations
through legislation like the Industrial Disputes Act, IE(SO) Act, etc., which govern
issues like employment, working conditions, and dispute resolution.
• Dispute resolution: The government facilitates the resolution of industrial disputes
through conciliation, mediation, and adjudication, aiming to find amicable solutions to
conflicts between employers and employees.
 • Worker protection: The government safeguards workers' rights by enforcing laws
related to wages, working conditions, and job security, ensuring a fair and just working
environment.

• Promoting harmony: The government actively promotes harmonious industrial

relations through various initiatives, including setting up tri-partite bodies (government,
employer, and employee representatives) and promoting codes of discipline.
• Social and economic development: By fostering stable employment, fair labour
practices, and worker welfare, the government contributes to the country's social and
economic development.
• Legislative measures: The government has enacted an extensive legislative system to
protect the interests of workers and resolve conflicts as they arise.
• Monitoring and analysis: The government monitors industrial relations data and
analyses statistics to assess the effectiveness of policies and make informed decisions.
• Social stability: By addressing issues related to wages, working conditions, and job
security, the government helps maintain social stability and reduces the risk of
conflicts.
• Promotes industrial growth: Government makes a continuous effort to increase the
growth of the industries taking into consideration the labour class.
• Acts as an umpire: The role of Government as an umpire in case of industrial relations
is clearly visible and accepted by the country. It helps the employers and workers with
all sorts of mechanism of law so that they can handle their issues bilaterally.
• Fairer workplace: The government's role ensures a more balanced and equitable
workplace, where workers are protected and their rights are upheld.
• Promoting social dialogue: Government encourages tripartite consultation among
employers, employees, and the state to promote industrial harmony through:
Indian Labour Conference (ILC)
Standing Labour Committee (SLC)
• As an employer: In the public sector, the Government is itself an employer and must
manage industrial relations directly with trade unions.
• Enforcement and supervision: Through various departments (like Ministry of Labour
& Employment, State Labour Departments), the Government ensures:
o Compliance with labour laws
o Inspections and audits
o Imposition of penalties for violations

The Government’s role in industrial relations in India is multi-dimensional-balancing

economic growth with social justice, maintaining law and order, and fostering a stable
industrial environment.

In summary, the Indian government actively participates in industrial relations by establishing

a legal framework, resolving disputes, protecting workers' rights, and promoting harmonious
relationships, ultimately contributing to a fairer, more productive, and stable society.
2(d) Industrial Relations System in CIL/Subsidiary companies
CIL and its subsidiaries are incorporated under the Companies Act, and are owned by the
Central Government. The coal mines in Assam and its neighbouring areas are controlled
directly by CIL under the unit North Eastern Coalfields.
CIL as an organized state-owned coal mining corporate with a modest production of 79 million
Tonnes (MT) at the year of its inception in 1975, today is the single largest coal producer in the
world with Maharatna Status.
CIL assigns due priority and importance to collective bargaining. Accordingly, most of the
important decisions by CIL pertaining to wage structure, conditions of service, various kinds
of fringe benefits and welfare measures of the employees, especially the non-executive
employees in the organization are settled through consultations and bipartite negotiations. For
this purpose, since its inception these negotiations have been taking place through a committee
constituted namely, Joint Bipartite Committee for the Coal Industry (In 1973, a Joint Bipartite
Wage Negotiations Committee for the coal industry was set up which later came to be known
as the JBCCI) consisting of the representatives of Central Trade Unions and the management
of the coal companies i.e. CIL (and its subsidiaries), Singareni Collieries Co. Ltd (SCCL),
TISCO, and Indian Iron and Steel Company. The negotiations finally culminate into an
agreement known as ‘National Coal Wage Agreement (NCWA)’. Starting from 1974 (signed
on 11.12.1974 and effective from 01.01.1975) a total of 11 such agreements have been entered
into so far. The 11th agreement for CIL & SCCL (effective from 01.07.2021 to 30.06.2026)
was entered into on 20.05.2023. The initial duration of the agreement, which used to be four
years, is presently five years.
Coal India Limited (CIL) and its subsidiaries utilize a robust industrial relations
system, emphasizing bipartite forums and trade union participation to address employee
concerns and ensure smooth operations. This system facilitates employee representation and
participation in management decisions, with regular meetings at different levels to resolve
issues related to service conditions, welfare, health and safety.
• Bilateral forums: CIL operates bilateral forums like the Joint Consultative Committee
(JCC), Safety Committee, Housing Committee, Welfare Committee, and Canteen
Committee at all project levels. These forums are crucial for taking decisions concerning
employees, with trade unions representing employee interests.
• Bipartite meetings: Bipartite meetings are held periodically at the unit, area, and corporate
levels to address service conditions, welfare, and safety issues.
• Apex bipartite committee: Each subsidiary has an Apex Bipartite Committee, headed by
the Chairman-cum-Managing Director, which deliberates on strategic issues and issues
related to the quality of life of employees.
• Grievance redressal mechanism: CIL has an online grievance redressal mechanism i.e.
CPGRAMS (Centralized Public Grievance Redress and Monitoring System). It's an online
platform managed by the Department of Administrative Reforms and Public Grievances
(DARPG) that allows to lodge grievances on various service-related issues. This system
offers a centralized platform for grievance redressal to monitor and review complaints.
• Contract workers: CIL addresses the issues of contract workers, who are increasingly part
of the workforce due to changes in the business model.
Workers’ participation in management
In CIL and subsidiaries there are well established bi-partite fora consisting of the
representatives of the management and the 5 Central Trade Unions for interaction and redressal
of issues related to the wages & service conditions, employment, safety, grievances, welfare
etc. related matters.
The following joint bipartite fora are operating at different levels:
1. JBCCI at CIL
2. Apex Jt. Consultative Committee
3. Safety Board/ Safety Committee
4. Welfare Board/ Welfare Committee
5. Joint Consultative Committees
6. Industrial Relation Meetings (Structural meetings with union).
7. Housing Committees
8. Canteen Committees
The NCWA-XI also incorporates a chapter that Management and workers' representatives
agree to cooperate for creating a harmonious industrial environment conducive to the growth
and financial viability of coal industry.
Being a responsible entity, guided by best corporate governance practices, CIL is committed
to adhering to all applicable labour laws & regulations and best practices in labour relations.
All the employees are free to be part of any registered trade union or employees’ association.
CIL non-executive employees are associated with five central trade unions viz., BMS, HMS,
AITUC, INTUC and CITU.
Industrial Relations (IR) at SECL
SECL has laid down clear Industrial Relations Policy providing mechanism to discuss the
various issues under bilateral forums for which a ‘Code of Conduct’ has been signed between
the Management of SECL and the Unions affiliated to 5 Central Trade Unions. Under the
aforesaid ‘Code of Conduct’, the following bipartite forums are functioning in SECL:
1. Steering Committee at Company Level.
2. Welfare Board at Company Level.
3. Safety Committee at Company Level.
4. Joint Consultative Committee at Area & Sub-Area Levels.
5. Welfare Committee at Area & Sub-Area Levels.
6. Safety Committee at Area & Sub-Area Levels.
In addition to above, structured IR Meetings at regular intervals as per pre-drawn and circulated
IR calendar are held with the following operating unions which are affiliated to 5 Central Trade
Unions:
S. No. Name of union Affiliated to
1 Akhil Bhartiya Koyla Mazdoor Sangh (ABKMS) BMS
2 Koyla Mazdoor Sabha (KMS) HMS
3 Koyla Shramik Sabha (KSS) CITU
4 Samyukt Koyla Mazdoor Sangh (SKMS) AITUC
5 South Eastern Koyla Mazdoor Congress (SEKMC) INTUC*
*IR meeting or participation of SEKMC (INTUC) in various committees was withheld pending
decision of the Hon’ble High Court of Delhi in WP No. 8152 of 2016. However, as per order
dated 13.11.2018 of Hon’ble High Court of Chhattisgarh in WPL No. 87 of 2018, it was
allowed for participation under IR system from 01.04.2019.
The periodicity of the above said structured meetings with the unions under a 3-tier IR system
is as under:
S. No. Tier Periodicity of meeting
1 Sub-Area Level Monthly
2 Area Level Bi-monthly
3 Company Level Quarterly

With the introduction of above measures, harmonious Industrial Relations are being maintained
resulting in cost reduction, increase in production & productivity, improvement in quality of
work, safety, industrial peace and overall improvement in the quality of life.
Steering Committee consists of nominated representatives of Trade Unions and CMOAI
representing the Employees and all the Functional Directors & HODs of Safety, P&A, Medical,
Civil/Welfare, IR & Finance Departments on behalf of the Management. It is the highest
Bipartite Forum and is headed by the Chairman-cum-Managing Director of the Company. It
meets once in every quarter for discussing various issues related to production, productivity,
safety, health and welfare.
2(e) IR machinery statutory or otherwise
Industrial Relations (IR) machinery can be broadly categorized into statutory and non-statutory
measures. Statutory measures involve government-established mechanisms like conciliation,
arbitration, and adjudication, as outlined in the Industrial Disputes Act of 1947. Non-statutory
measures, supported by government but not legally mandated, include codes of discipline,
workers' participation in management, and collective bargaining.
The Industrial disputes Act, 1947 provides the mechanism for dispute resolution and set-up the
necessary structure so as to create congenial climate.

Statutory machinery:
• Conciliation: Involves a conciliator trying to mediate between employers and employees
to resolve disputes.
• Arbitration: A neutral third party, the arbitrator, makes a binding decision to resolve the
dispute.
• Adjudication: Formal tribunals, like Labour Courts and Industrial Tribunals, make legally
binding decisions.
Non-statutory machinery:
• Code of discipline: Encourages peaceful settlement of disputes through existing machinery,
preventing lockouts, strikes, and disruptive actions.
• Workers' participation in management: Allows workers to participate in decision-
making processes of an enterprise.
• Collective bargaining: Negotiations between representatives of employees and employers
to reach a mutual agreement on working conditions and terms of employment.
• Workers' councils: Represent workers' interests and provide a platform for communication
and negotiation with management.
The following is the machinery for prevention and settlement of industrial disputes:
1. Works committees 2. Conciliation officers 3. Board of conciliation 4. Court of inquiry 5.
Labour Courts 6. Industrial Tribunals 7. National Tribunals 8. Arbitration. 9. Joint Management
Councils.
1. Works committees: As per the provisions of the ID Act, any industrial establishment
employing 100 or more persons has to set up works committee. These committees have equal
number of representatives from the workers and the employers. Works committees are purely
consultative in nature and have been regarded as the most effective agency for the prevention
of industrial disputes. It is the duty of the works committee to promote measures for securing
and preserving amity and good relations between the employers and workers.
In India, TISCO was the first to set up works committee way back in 1920. By 1952, 2075
works committees came into existence in the country. However, only 530 works committees
were operational due to various reasons at the end of 1987. Reasons like vagueness regarding
their exact scope, functions, inter-union rivalries, union opposition and employees’ reluctance
to utilize these for prevention of disputes rendered works committees ineffective.
2. Conciliation officers: One of the authorities under the Act is the conciliation officer. The
law provides for the appointment of conciliation officer by the Government to conciliate
between the parties to the industrial dispute. These officers are appointed for a specific area or
for specified industries in a specified area or for one or more specified industries, either
permanently or for a limited period. The conciliation officer is given the powers of a civil court,
whereby he is authorized to call the witness the parties on oath.
On receiving information about a dispute, the conciliation officer should give formal intimation
in writing to the parties concerned of his intention to commence conciliation proceedings from
a specified date. He should then start doing all such things as he thinks fit for the purpose of
persuading the parties to come to fair and amicable settlement of the dispute. The conciliation
officer is required to submit his report to the appropriate government along with the copy of
the settlement arrived at in relation to the dispute or in case conciliation has failed, he has to
send a detailed report giving out the reasons for failure of conciliation. The report in either case
must be submitted within 14 days of the commencement of conciliation proceedings or earlier.
But the time for submission of the report may be extended by an agreement in writing of all
the parties to the dispute subject to the approval of the conciliation officer.
If an agreement is reached (called the memorandum of settlement), it remains binding for such
period as is agreed upon by the parties, and if no such period is agreed upon, for a period of six
months from the date on which the memorandum of settlement is signed by the parties to the
dispute, and continues to be binding on the parties after the expiry of the period aforesaid, until
the expiry of two months from the date on which a notice in writing of an intention to terminate
the settlement is given by one of the party or parties to the settlement.
3. Board of conciliation: under the Act where dispute is of complicated and require special
handling the appropriate Government is empowered to constitute a Board of Conciliation. The
appropriate government is empowered to refer the existing or apprehended dispute to a Board.
It shall consist of an independent person as Chairman and two or four other members shall be
persons appointed in equal numbers to represent the parties to the dispute. The chairman must
be an independent person. A quorum is also prescribed for conducting the proceedings.
Conciliation proceedings before a Board are similar to those that take place before the
Conciliation Officer.
The machinery of the Board is set in motion when a dispute is referred to it. On the dispute
being referred to the Board, it is the duty of the Board to do all things as it thinks fit for the
purpose of inducing the parties to come to a fair and amicable settlement. The Board must
submit its report to the government within two months of the date on which the dispute was
referred to it. This period can be further extended by the government by two months.
In case of failure of settlement by a Board, the “appropriate Government” may refer the dispute
to a Labour Court, Tribunal or National Tribunal. The Government is however not bound to
make a reference. But after receiving a report from a Board it must record and communicate to
the parties concerned its reasons for not doing so.
4. Courts of inquiry: Court of Inquiry may be constituted “for enquiring into any matter
appearing to be connected with or relevant to an industrial dispute”. The government can
appoint a Court of inquiry to enquire into any matter connected with or relevant to industrial
dispute. The court of enquiry may consist of one or more persons to be decided by the
appropriate government and where a Court consists of two or more members, one of them shall
be appointed as the chairman.
The court of enquiry is required to submit its report within a period of six months from the
commencement of enquiry. This report is subsequently published by the government within 30
days of its receipt. Unlike during the period of conciliation, workers’ right to strike, employers’
right to lockout, and employers’ right to dismiss workmen, etc. remain unaffected during the
proceedings in a court to enquiry.
A court of enquiry is different from a Board of Conciliation. The former aims at inquiring into
and revealing the causes of an industrial dispute. On the other hand, the latter’s basic objective
is to promote the settlement of an industrial dispute. Thus, a court of enquiry is primarily fact-
finding machinery.
5. Labour courts: 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.
6.Industrial Tribunals: The appropriate government may, by notification in the official
gazette, constitute one or more Industrial Tribunals for the adjudication of Industrial disputes
Like a labour court, an industrial tribunal is also a one-man body. The matters which fall within
the jurisdiction of industrial tribunals are as mentioned in the second schedule or the third
schedule of the Act. Obviously, industrial tribunals have wider jurisdiction than the labour
courts. Moreover, an industrial tribunal, in addition to the presiding officer, can have two
assessors to advise him in the proceedings; the appropriate Government is empowered to
appoint the assessors.
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.
7. National Tribunal: The Central Government may, by notification in the official gazette,
constitute one or more National Tribunals for the adjudication of industrial disputes involving
question of national importance or “the industrial dispute is of such a nature that undertakings
established in more than one state are likely to be affected by such a dispute”.
The Central Government may appoint two assessors to assist the national tribunal.
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. The award of the tribunal is to be
submitted to the Central Government which has the power to modify or reject it if it considers
it necessary in public interest.
It should be noted that every award of a Labour Court, Industrial Tribunal or National Tribunal
must be published by the appropriate Government within 30 days from the date of its receipt.
Unless declared otherwise by the appropriate government, every award shall come into force
on the expiry of 30 days from the date of its publication and shall remain in operation for a
period of one year thereafter.
8. 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.
It is 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.
9. Joint Management Council: In India, the joint management council (JMC) came into
existence due to the provisions in this regard made by the Industrial Policy Resolution, 1956.
These councils were set up to enable workers to participate in management and infuse a spirit
of cooperation between the workers and the management.
The salient features of the JMCs are as follows:
(i) The scheme is a voluntary one.
(ii) The minimum and maximum number of its members are 6 and 12 respectively
consisting of equal number of representatives of workers and employers.
(iii) The JMCs deal with matters like information sharing, consultative, and
administrative.
(iv) The decisions taken by the JMC should be unanimous ones.
(v) The JMCs can be set up in the units employing 500 or more persons and having
strong trade unions.
In India, industrial units like Hindustan Insecticides, HMT, Indian Airlines, Air India, in
the public sector and TISCO, Arvind Mills, Modi Spinners and Weaving Mills, in the
private sector, have been pioneers to introduce the JMC scheme. Past experience indicates
that whenever the JMC schemes have been setup, there have been better industrial relations,
more satisfied work force, increase in productivity, better profits, etc.
However, like the works committees, the functioning of the JMCs in India is also plagued
by the factors like reluctance of workers, union rivalries, the management’s lukewarm
attitude, etc
10. Grievance Redressal Committee: It shall be set-up in every industrial establishment
where 20 or more workers are employed. This is for resolution of the disputes arising out of
individual grievances of employees. The Committee shall consist of equal number of members
from the employer and the workmen. The chairperson of the Committee shall be selected from
the employer and from among the workmen alternatively on rotation basis every year. The total
number of members of the Committee shall not exceed more than six.
The Committee may complete its proceedings within 30days on receipt of a written application.
The workman aggrieved of the decision of the Committee may prefer an appeal to the employer
and the employer shall, within one month, dispose off the same and send a copy of his decision
to the workman concerned. The setting up of the Committee shall not affect the right of the
workman to raise industrial dispute on the same matter under the provisions of I D Act.
11. Welfare Officer: Another measure is under the Factories Act, 1948 and the Mines Act,
1952 i.e., the appointment of welfare officer if workers are 500 or more.
12. Standing Orders: Another measure is certification of standing orders by enterprises under
the Industrial Employment (Standing Orders) Act, 1946. These standing orders require
enterprises to lay down uniform terms and conditions of employment of workers.
13. Central and State Industrial Relations Machinery
Central Industrial Relations Machinery consists of the Chief Labour Commissioner and
Regional Labour Commissioner together with Labour Enforcement Officers. The machinery
has regional Offices. Their main functions are:
i) prevention, investigation and settlement of industrial disputes in industries, or enforcement
of labour laws and awards,
ii) verification of union membership,
iii) fixation of minimum wages, etc., and
iv) central implementation and evaluation machinery ensures implementation of code of
discipline, labour laws, awards and settlements, take preventive action by settling disputes,
evaluates major strikes and lock-outs, evaluates labour laws and policy decision and suggests
measures to improve them.
14. Other measures
Some other provisions laid down in ID Act, 1947 which discourage disputes are as under:
a) According to Sec. 9A of the Act, an employer cannot make any change in conditions of
service without giving to the workers a 21-days’ notice and follow the prescribed procedure
for changing them.
b) Defining of unfair labour practices on part of employees/unions and employers which have
deterrent effect as penalties are provided under the I D Act, 1947.
c) Provisions of laws relating to lay-off, retrenchment and closure and also regarding lock-out
and strikes which imposes restrictions on the employers and employees.

Voluntary machinery
Voluntary machinery for settlement of industrial disputes is based on Code of Discipline
announced in 1958. The code was approved by all central organisations of workers and
employers in 16th Indian Labour Conference at the initiative of the then Labour Minister, Shri
G.L. Nanda.
Code of Discipline, 1958
The code reflects the policy of the government to build up an industrial democracy on voluntary
basis. It aims at preserving industrial peace with the help of employers and employees. It
represents a voluntary moral commitment and is not a legal document. The code, which aims
at providing an alternative to conflict for the resolution of disputes, worked very well for some
time after its adoption.
The issue of discipline in industry was discussed in the Indian Labour Conference and the code
of discipline was framed and introduced by that tripartite body in 1958. Discipline in the
relationship between workers and employers can better be enforced if both the parties accept
their responsibilities and show a willingness to discharge them. In the absence of any statutory
provision at the all-India level for the recognition of trade union, the provision in this regard
has been incorporated in the Code of Discipline.
Initially by the end of March, 1962, the code was accepted voluntarily by about 900
independent employers and trade unions. The number increased to around 3000 by the end of
1967. Over the years, however, the willingness and enthusiasm of the parties to observe the
code has declined, and they have developed an attitude of indifference to the code. It has proved
to be difficult for them to abide by self-imposed discipline in terms of obligations backed only
by moral sanctions.
Industrial Truce Resolution, 1962: With the Chinese attack in October 1962, an emergency
was declared in the country, and it was realised that production should not be jeopardised in
any way. Employers’ and workers’ representatives, in a joint meeting of their organisations held
on November 3, 1962 at New Delhi, passed a resolution, saying that the emerging method of
dispute resolution which is speedy, less costly and which ends in win-win situation.
Tripartite Bodies: The other tripartite bodies which came into existence were:
a) Indian Labour Conference,
b) Standing Labour Committee,
c) Industrial Committees, and
d) Tripartite Committee on International Labour Organisation Conventions, 1954.

Formation of Joint Consultative Machinery for Central Government Employees (JCM), this
is also a three-tier machinery.
Collective Bargaining was encouraged.
Workers’ Participation in Management Scheme was introduced through Formation of Shop
Councils and Plant Council.