PRESENTED BY:

MAYURI VADHER

Statutory Machinery

Labour laws had a protective function consisting of established standards

both to protect workers in their workplace and to provide them a basic
minimum level of living conditions.
Because of changing industrial and economic scenario, along with statutory
machineries, voluntary machineries come into existence.
The industrial disputes act, 1947 provides the mechanics of disputeresolution and set-up the necessary structure so as to create congenial
climate.

What is an industrial dispute?

An industrial dispute means any dispute or difference between employers and
employers, or between employers and workmen, or between workmen and
workmen, which is connected with the terms and conditions of employment
of any person.

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Who can raise a dispute?
Some demand is made by workmen and it is rejected by the management
or vice versa and the demand is relating to the employment.

A workman can raise a dispute. However, it is pertinent to note that a

dispute between an employer and single workman does not fall within the
definition of industrial dispute.

But if the workmen as a body or a considerable section of them make a

common cause with the individual workman then such a dispute would be
an industrial dispute.

INSTRUMENT TYPES
Preventive steps should be taken so that industrial disputes do not occur.
But if preventive machinery fails then the government should activate the
industrial settlement machinery because non-settlement of disputes proves
to be harmful not only for the workers, but also the management and the
society as a whole.

INSTRUMENTS
1)Tripartite Bodies
Industrial relations in India have been shaped largely by principles and policies evolved through tripartite consultative machinery at industry and national levels.
Indian Labour Conference (ILC) and Standing Labour Committee (SLC) to
suggest ways and means to prevent disputes.
The functions of ILC are:
(a) To promote uniformity in labour legislation
(b) To lay down a procedure for the settlement of industrial disputes
(c) To discuss matters of All-India importance as between employers and employees
The Standing Labour Committees main function:
to consider and determine such questions as may be referred to it by the Central Government and to render advice, taking into account the suggestions made
by various governments, workers and employers.
1) Works Committee
In establishments where hundred or more workers are employed:
a) The appropriate government may require the employer to set-up works committee.
b) It is composed of equal number of representatives of workmen and management who are chosen with consultation of the trade union.
c) Its functions are to preserve amity and establish cordial relations and to resolve differences of opinion on matters of common interest.
2) Conciliation Officer
a) The conciliation officer may be appointed by the government for specified area or specified industries.
b) Duty of conciliation officer is to mediate in and promote the settlement of industrial disputes.
C)conciliation officer will investigate the dispute and induce settlement. However, he cannot take the decision, he has to send report of settlement to his
government.

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2) Code of Discipline
The Code of Discipline is a set of self-imposed mutually agreed voluntary principles of
discipline and relations between the management and workers in the industry.
3)Standing Orders
Another preventive 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.
These orders regulate the following:
Conditions of employment
Discharge
Grievances
Misconduct
Disciplinary action etc

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3) Conciliation
Conciliation or mediation signifies third party intervention in promoting the
voluntary settlement of disputes.
I. Conciliation Officers. The Act provides for the appointment of conciliation
officers, permanently or for a limited period, for specific area or for a specific
industry, to whom the industrial disputes shall be referred for conciliation. The
conciliation officer enjoys the powers of a civil court.
II. Board of Conciliation. The Act also empowers the Government to appoint a
Board of Conciliation for promoting the settlement of disputes where the
Conciliation Officer fails to do so within 14 days.
III. Court of Inquiry. In case the conciliation proceedings fail to settle an
industrial dispute, the Government has yet another option of referring the
disputed to the Court of Inquiry. The Court is expected to give its report within
six months.

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4) Voluntary Arbitration
It is voluntary method of resolving individual disputes if dispute is not settled by
negotiating parties. Here both parties are willing to go to an arbitrator of their
choice and submit to his decision. Arbitrators are named by the parties in
the written agreement.
The number of arbitrators can be one or even more than one. Legal sanctity to
this mode of settlement of industrial disputes was given in1956 when
Section lOA was introduced in Industrial Dispute Act.
National Commission on Labour (1969) identified following causes for the
failure of voluntary arbitration:
1. Lack of arbitrators who command the confidence of the parties to the
disputes.
2. Law provides no appeal against the award given by arbitrator
3. Easy availability of adjudication on the failure of negotiation or conciliation.
4. The absence of simplified procedure to followed in voluntary arbitration.

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5) Adjudication
The Industrial Disputes Act provides for three-tier system of adjudication of
industrial disputes. The cases either may be referred by government to court
after the receipt of failure report from conciliation officer or directly by any party.
i) Labour Courts: Functions of labour courts are relating to matters as under:
1)
Legality of an order passed by an employer under the standing order
2)
Discharge or dismissal of workman,
3)
Withdrawal of any customary concession or privilege,
4)
Illegality or otherwise of a strike or lock-out, and
ii) Industrial Tribunals: The functions of industrial tribunals are as follows:
1)
All matters within jurisdiction of labour courts,
2)
Compensatory and other allowances,
3)
Hours of work and rest intervals,
4)
Leave with wages and holidays,
5)
Bonus, Provident Fund and Gratuity,
6)
Rules of Disciplines, and

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iii) National Tribunal: The national tribunal shall be constituted by the Central
government (only) when undertakings in more than one stage is affected by
such industrial dispute and is of national importance and matters relate to
functioning of labour and industrial courts.
6) Grievance Settlement Authority
It is to be set-up enterprises where 50 or more workers are employed. This for
settling of individual grievances of employees. Individual disputes are to be
referred to the courts when not settled at grievances authority level.
7) Welfare Officer
Another preventive measure is under the Factories Act, 1948, i.e., the
appointment of welfare officer in the organisation if workers are 500 or more.

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10) 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
11) Other Preventive Measures
a) According to Sec. 9 A of Industrial Disputes 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 affect as penalties are provided under [Section 2(ra)] of
lndustrial Disputes 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.