THE INDUSTRIAL DISPUTE ACT, 1947 Question.

Discuss the powers and functions of various authorities under Industrial Disputes act or Method of settlements as per the Industrial Disputes Act. Discuss the provision relating to voluntary reference of disputes to arbitration; under the Industrial Dispute Act, 1947. SYNOPSIS 1. Introduction 2. Modes of settlement of dispute a) Voluntary settlement and conciliation i)Works Committee ii)Conciliation Officer iii) Board of conciliation IV) Court of Enquiry B) Adjudication i)Labour Courts ii)Industrial Tribunal iii)National Tribunal C)Arbitration 3. ConclusionINTRODUCTION The life of a nation of any society depends upon the progress of industry. Industry cant grow unless there is industrial peace in the country. For development of industry it is necessary that there shall be continuous production which is only possible if there is no dispute as to interruption and stoppage of production. There should be a perfect harmony between employer and employee, so industrial peace is very necessary for prosperity of industry. There should not be dissatisfaction between employer and workers. There must be cooperation and coordination interse employer and employees, employees and employees, employers and employers so as to have smooth functioning and balance interse. Therefore just and adequate wages and human conditions are to be provided to the employees to increase their efficiency whereby production also increased, if the employer and employees is to be safe guarded. There were two major objectives sought for by the Industrial Dispute Act, 1947 1. Improving of the service condition of labour;
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2. The endeavor towards industrial peace, which would accelerate the productive activity of the country and bring about prosperity. The main objects of the act are as follows. a) promotion of measures for securing and preserving amity and good relations between the employer and workmen; b) prevention of illegal strikes and lockouts; c) an investigation and settlement of industrial disputes; d) relief to workmen in the matter of lay off and retrenchment; e) Payment of compensation to workmen in case of transfer or closure of an undertaking. f) Collective bargaining. The industrial disputes act 1947, is an important piece of social and economic legislation .The main aim is to ensure industrial peace through voluntary negotiations and compulsory adjudication. It lays down the procedure for settling disputes between employer and workmen. 2. MODES OF SETTLEMENT OF DISPUTE The act in its preamble provides for investigation and settlement of industrial disputes. The act provides elaborate and effective machinery for bringing about industrial peace by setting up various authorities for the investigations and settlement of industrial dispute. The act provides for the following modes of settlement of disputes under this act. 1) Voluntary settlement and conciliation, 2) Adjudication and 3) Arbitration AdjudicationThe aforesaid authorities endeavor to compose any industrial difference of opinion or settle the industrial dispute before it may be adjudicated upon by1) Labour courts 2) Industrial Tribunals and 3) National Tribunal A) VOLUNTARY SETTLEMENT AND CONCILIATION Conciliation-The authorities that make use of conciliation as a method of settlement of industrial disputes are: 1) Works committees The act encourages voluntary settlement of disputes through the Works Committees whose object is to remove causes of friction between the employers and workmen in the day to day working of establishment and to promote measures for securing amity and good relations between
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them. Industrial peace will be most enduring where it is founded on voluntary settlement. 2) Conciliation Officers 3) Board of Conciliation and 4) Courts of inquiry which may be constituted for inquiring into any matter appearing to be connected with or relevant to an industrial dispute. 1. WORKS COMMITTEE, S.3: An appropriate Govt. may direct the employer to constitute a Work Committee for an industrial establishment in which 100 or more workmen are employed or have been employed on any day in the preceding 12 months, as prescribed by the rules. The numbers of representatives in the works committee of the workmen must not be less than the numbers of representatives of employer. Such representatives of the employee are to be selected in consultation with Trade Union. The numbers of members of work committee shall be fixed, but total number shall not exceed 20. The representatives of the employer shall be nominated by the employers who are generally in direct touch with the working of an establishment. Functions: The principle is based on the concept: Prevention is better than cure: The main functions of the work committee are as under: 1. To promote goodwill and harmony between employer and employee. 2. To look after the work and welfare of the workers. 3. To deal with day to day internal matters relating to safety, vocational training and apprentice ship; 4. To supervise the recreation and other necessary. 5. To comments upon the matters of common interest. The recommendation of works committee is not binding or mandatory; works committee cannot decide and pass final judgment. It is a continuous body and discharge vigilance functions and thus it promotes harmonious and friendly relations between the employer and employee. 2. Conciliation Officer, s.4: An appropriate Govt may by Notification in official gazette appoint Conciliation officer for specific area or industry or group of industries or sub region. The conciliation officers are engaged with the duty of mediating and promoting the settlement of industrial disputes. Powers of Conciliation Officer: Conciliation officer may hold inquiry into any existing or apprehended industrial dispute after giving reasonable notice and to enter the
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premises occupied by any establishment to which dispute relates. A conciliation officer may call for and inspect any document relevant in industrial dispute. He has same power as vested in civil court in respect of compelling the production of documents recording of evidence etc Duties of Conciliation Officer.S.12: 1. The conciliation officer may give notice u/s 12 in a prescribed manner when there is such dispute. 2. The conciliation officer so as to settle the dispute, investigate the dispute, the merits and rights as think fit and thereby induces the parties to come to fair settlement of dispute 3. He can provide proposal for settlement of dispute. 4. By way of negotiations he facilitates the settlement of dispute by offering proposal to parties and settles the dispute amicably. If no settlement is arrived then conciliation officer shall submit the report to the Govt stating all the facts, within 14 days of commencement of conciliation proceeding or within such shorter period as may be fixed by appropriate Govt. The main duty of the conciliation officer u/s 12 of the act is to induce the parties to come to a fair and amicable settlement on the matters in dispute. 3. Board of Conciliation, s.5: Appropriate Govt may by notification in official gazette constitute board of conciliation to settle an industrial dispute. Constitution: It consists of Chairman and 2 or 4 other members .The chairman is an independent person and other persons are representatives of parties i.e. employer and employee in equal proportions and in equal number. Duties1) To bring about a settlement of disputeWhere a dispute has been referred to a Board of Conciliation, it shall be the duty of the Board to make efforts to bring about settlement of the same .It shall investigate the dispute and all the matters affecting the merits and the rights settlement thereof, without delay. It may do all such things as it thinks fit for the purpose of inducing the parties to come to a fair and amicable settlement of the dispute 2) To send a report and memorandum of settlement to the government The board shall send a report to the appropriate government with a memorandum of settlement, signed by the parties to the dispute if a settlement of dispute is arrived at in the course of conciliation proceedings. 3) To send a full report to the appropriate government setting forth the steps takenIf no settlement is arrived at the Board shall send to the appropriate government a full report with the steps taken by the Board for
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ascertaining the fact and the circumstances relating to the dispute and for bringing about settlement thereof. The report shall be accompanied with a full statement of such facts and circumstances, its findings thereon, the reasons on account of which, in its opinion a settlement could not be arrived at and its recommendations for the determination of the dispute. 4) To communicate reasons to the parties if no further reference madeThe Board shall record and communicate to the parties concerned its reasons on the receipt of a report in respect of dispute relating to public utility service. 5) To submit report within two monthsThe board shall submit its report within two months of the date on which the dispute was referred to it or within such shorter period as may be fixed by the appropriate government. The time for submission of the report may be extended by such period as may be agreed on in writing by all the parties to the dispute. 4. Court of enquiry, S.6: These are facts findings court. An appropriate Govt may by notification in Official Gazette constitute court of Inquiry to settle the industrial disputes. This court consists of one or more independent persons. Where the court consists of two or more members. One of them shall be appointed as a Chairman. All members of the court shall be deemed to be public servants within the meanings of s.21 of Indian Penal Code Reference of disputeWhere the appropriate government is of the opinion that any industrial dispute exist or is apprehended it may at any time by order in writing, refer any matter appearing to be connected with or relevant to the dispute to a court for inquiry .A reference can be made even by the parties to an industrial dispute in a prescribed manner jointly or separately, to the court of inquiry. Duties A court shall inquire into the matters referred to it and report thereon to the appropriate government ordinary within the period of six months from the commencement of its inquiry .The report of the court shall be in writing and signed by all the members of the court. The duty of the court is to abide by the principle of natural justice. Powers1) Power to enter premises-A member of the court may for the purpose of inquiry into an existing or apprehended industrial dispute after giving reasonable notice enter the premises occupied by any establishment to which the dispute relates.
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2) Powers of civil court- A court of inquiry shall have the same powers as are vested in the civil court under the code of civil procedure 1908.Every inquiry by a court of inquiry shall deem to be judicial proceedings. 3) Appointment of assessor- A court of inquiry may if it thinks fit appoint one or more persons having special knowledge of the matter under consideration as assessors to advice it in the proceeding before it. B) ADJUDICATIONSs 7 to 9 pertain to the constitution of adjudication authorities under the act. These authorities arei) Labour Courts (s.7) Appointment and constitution 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. These courts shall also perform such other functions as may be assigned to them. Matters within the jurisdiction of labour courts specified in the schedule1) The propriety or legality of an order passed by an employer under the standing order. 2) The application and interpretation of standing orders 3) Dismissal of workmen including reinstatement or grant to relief to workmen wrongfully dismissed. 4) Withdrawal of any customary concession or privilege. 5) Illegality or otherwise of a strike or lock out and 6) All matters other than those specified in the third schedule. A labour court shall consist of one person only to be appointed by the appropriate government. Qualification for appointment of presiding officera)he is or has been a Judge of a High Court or b)he has for a period of not less than 3 years been a District Judge or an Additional District Judge or c)he has held any judicial office in India for not less than 7 years or d)he has been the presiding officer of a labour court constituted under any provincial act for not less than 5 years. The presiding officer of labour court shall be deemed to be a public servant within the meaning of S.21 of then Indian Penal Code 1860. Reference: of disputesWhere the appropriate Government is of opinion that any industrial dispute exists or is apprehended it may at any time by order in writing refer the dispute or any matter appearing to be connected with or relevant to the dispute to a labour court of adjudication. The matter must however relate to any matter specified in the second schedule. Where the dispute relates to any matter specified in the Third Schedule
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and is not likely to affect more than 100 workmen, the appropriate government may if it so thinks fit make the reference to a labour court. Duties1) To adjudicate upon industrial disputes relating to matters specified in the second schedule .It is the duty of a labour court to adjudicate upon the industrial dispute relating to any matter specified in the second schedule and to perform such other functions assigned to it. 2) To give award within the specified period where an industrial dispute has been referred to a labour court of adjudication it shall hold its proceedings expeditiously and shall within the period specified in the order referring such industrial dispute submit its award to the appropriate government. Powers1) Power to enter premises .The presiding officer of a labour court may for the purpose of inquiry into an existing or apprehended industrial dispute enter the premises occupied by any establishment to which the dispute relates. He must however give a prior reasonable notice 2) Power of Civil Court A labour court shall have the same powers as are vested in a civil court under the code of civil procedure, 1908, when trying a suit in respect of the following matters namelyA) Enforcing the attendance of any person and examining him on oath b) Compelling the production of document and material objects c) Issuing commission for the examination of witnesses d) in respect of such other matters as may be prescribed. Probation of strike or lock outWhere an industrial dispute has been referred to a labour court the appropriate government may by order prohibit the continuance of any strike or lock out in connection with such dispute which may be in existence on the date of the reference. ii) Industrial Tribunals s.7 A Appointment and constitutionThe 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 whether specified in the second schedule or the third schedule and for performing such other functions as may be assigned to them under this act. Matters within the jurisdiction of Industrial Tribunal1) Wages including the period and mode of payment 3) Hours of work and rest intervals 2) Compensatory and other allowances 4) Leave with wages and holidays 5) Bonus profit sharing, provident fund and gratuity 6) Shift working
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7) Classification by grades 8) Rules of discipline 9) Rationalization 10) Retrenchment of workmen and closure of establishment 11) Any other matter that may be prescribed The Tribunal shall consist of one person only to be appointed by the appropriate government. Qualificationsa) He is or has been a Judge of a High Court or b) He has for a period of not less than 3 years been a District Judge or an Additional District Judge, The presiding officer of a Tribunal shall be deemed to be a public servant within the meaning of s.21 of the Indian Penal Code 1860. The appropriate government may if it so thinks fit appoint 2 persons as assessors to advise the tribunal in the proceedings before it. DISQUALIFICATIONNo person shall be appointed to or continue in the office of the presiding officer of a tribunal if a) He is not an independent person or b)He has attained the age of 65 years. Reference of dispute: Where the appropriate government is of opinion that any industrial dispute exists or is apprehended it may at any time by order in writing refer the dispute or any matter appearing to be connected with or relevant to the dispute whether it relates to any matter specified in the second schedule or the third schedule to a tribunal for an adjudication Where the parties to an industrial dispute apply in the prescribed manner whether jointly or separately for a reference of the dispute to a tribunal, the appropriate government if satisfied that the persons applying represent the majority of each party shall make the reference accordingly. Procedure of TribunalSubject to any rules that may be made in this behalf a tribunal shall follow such procedure as it may think fit. Prohibition of strike or lock outWhere an industrial dispute has been referred to a tribunal, the appropriate government may by order prohibit the continuance of any strike or lock out in connection with such dispute which may be in existence on the date of the reference. POWERS 1) Power to enter premisesThe presiding officer of a tribunal may for the purpose of inquiry into an existing or apprehended industrial dispute after giving reasonable notice
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enter the premises occupied by any establishment to which the dispute relates. 2) Powers of civil courtA tribunal shall have the same powers as are vested in a civil court under the code of civil procedure 1908. Every inquiry or investigations by a tribunal shall be deemed to be a judicial proceeding within the meaning of Ss 193 and 228 of the Indian Penal Code, 1860. 3) Power to appoint assessorsIt may if it so thinks fit appoint one or more persons having special knowledge of 3 the matter under consideration as assessors to advise it in the proceeding before it. 4) Power to award costsSubject to any rules made under this act the cost of and incidental to any proceedings before a tribunal shall be in the discretion of the tribunal. The tribunal shall have full power of determine by and to whom and to what extent and subject to what conditions if any such costs are to be paid. It shall also have the power to give all the necessary directions for the purpose aforesaid. These costs may on application made to the appropriate government by the person entitled. be recovered by that government in the same manner as an arrear of land revenue. iii)National Tribunal (s.7-B) Appointment and constitutionThe central government may by notification in the official gazette constitute one or more National Industrial Tribunal for the adjudication of industrial dispute which in the opinion of the central government involve questions of national importance or are of such a nature that industrial establishment situated in more than one state are likely to be interested in or affected by such disputes, A national tribunal shall consist of one person only to be appointed by the central government. Qualifications A person shall not be qualified for appointment as the presiding officer of a National Tribunal unless he is or has been a judge of a high court. The central government may by notifications in the official gazette constitute one or more National Industrial Tribunals for the adjudication of industrial dispute which in the opinion of the central government involve question 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. A national tribunal shall consist of one person only to be appointed by the central government. Qualifications9

A person shall not be qualified for appointment as the presiding officer of a National Tribunal unless he is or has been a judge of a high court. The central government may if it so thinks fit appoint 2 persons as assessors to advise the national tribunal in the proceeding before it. The presiding officer of a national tribunal shall be deemed to be a public servant within the meaning of s.21 of the Indian Penal Code 1860. Disqualifications No person shall be appointed to or continue in the office of the presiding officer of a National Tribunal if A) He is not an independent person or b) He has attained the age of 65 years. Reference of disputesSometimes the central government may be of opinion that any industrial dispute exists or is apprehended and the dispute involves any questions of national importance or is of such a nature that industrial establishments situated in more than one state likely to be interested in or affected by such dispute and the dispute should be adjudicated by a national tribunal .In such a case the central government may whether or not it is the appropriate government in relation to that dispute ,at any time by order in writing refer the dispute or any matter appearing to be connected with or relevant to the dispute whether it relates to any matter specified in the second schedule or the third schedule, to a national tribunal for adjudication. Where the parties to an industrial dispute apply in the prescribed manner whether jointly or separately for a reference of the dispute to a national tribunal the appropriate government if satisfied that persons applying represent the majority of each party, shall make the reference accordingly. Jurisdiction of labour court and industrial tribunal to cease on a reference made to national tribunal. Powers1) Power to enter premisesThe presiding officer of a national tribunal may for the purpose of inquiry into any existing or apprehended industrial dispute after giving reasonable notice enter the premises occupied by any establishment to which the dispute relates. 2) Power of civil courtA national tribunal shall have the same powers as are vested in a civil court under the code of civil procedure. 3) Power to appoint assessorThese points are already discussed above. c) ARBITRATION Voluntary reference of dispute to Arbitration s 10-A(Amendment 1956)
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Reference Where any industrial dispute exists or is apprehended and the employer and the workmen agree to refer the dispute to arbitration they may by a written agreement refer the dispute to arbitration .They can however do so at any time before the dispute has been referred u/s 10 to a labour court or industrial tribunal or national tribunal. The reference shall in such a case be to such person including the presiding officer of a labour court or industrial tribunal or national tribunal as an arbitrator as may be specified in the arbitration agreement. Form of agreementAn arbitration agreement shall be in such be in such form and shall be signed by the parties thereto in such manner as may be prescribed. A copy of the arbitration agreement shall be forwarded to the appropriate government and the conciliation officer .The appropriate government shall within one month form the date of the receipt of such copy, publish the same in the official gazette. Supreme Court in Karnal Leather Karmachari Sanghatan v Liberty Footwear Co.1989 Held that publication of arbitration agreement is mandatory but the one month period prescribed for the purpose is directory. Moorco (India Ltd) v. Government of Tamil Nadu, 1994 Madras High Court held that if the copy of the arbitration agreement is not forwarded to appropriate government the award will not come within the purview of the act. ProceedingsWhere an industrial dispute has been referred to arbitration and the appropriate government is satisfied that the persons making the reference represent the majority of each party ,the appropriate Government may, within one month from the date of the receipt of a copy of the arbitration agreement issue a notification in such manner as may be prescribed .when any such notification is issued ,the employers and workmen who are not parties to the arbitration agreement but are concerned in the dispute shall be given an opportunity of presenting their case before the arbitrator or arbitrators. AwardThe arbitrator or arbitrators shall investigate the dispute and submit to the appropriate Government the arbitration award signed by the arbitrator or all the arbitrators, as the case may be.

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It is held by the Supreme Court in Karnal Leather Karmachari Sanghatan v Liberty Footwear CO, 1989 that a status of the arbitrator is that of a statutory tribunal and his award is equally binding. In Union of India v Santiram Ghosh 1989 Supreme Court held that an award made beyond the term of reference is illegal. Prohibition of strike or lock outWhere an industrial dispute has been referred to arbitration and a notification has been issued u/s 10-A (3-A) the appropriate government may by order prohibit the continuance of any strike or lock out in connection with such dispute which may be in existence on the date of reference. The provision of Arbitration Act 1940 shall not apply to arbitration u/s 10A

4) CONCLUSIONIndustrial Dispute act 1947 provide for machinery for the settlement of industrial disputes. The Act provides for voluntary settlement and conciliation, adjudication and arbitration. There shall be continuous production which is possible only when there is no dispute in the Industry. Industrial peace is necessary for prosperity of the country .The main aim is to ensure industrial peace through voluntary negotiations and compulsory adjudication, Industrial Dispute Act 1947 is an important piece of social and economic legislation.

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