Module III

Contemporary Issues : Grievances and Grievance handling

1. Grievances and Grievance Handling Procedure

Definition:
A grievance is a formal complaint raised by an employee regarding
workplace conditions, treatment, or violation of policies or
agreements.

Causes of Grievances:
- Wage and salary issues
- Working conditions
- Workload
- Interpersonal conflicts
- Promotion and demotion
- Disciplinary actions
- Violation of labor laws or contracts

Types of Grievances:
1. Factual Grievances – Arise from legitimate violations (e.g., wage
payment delay).
2. Imaginary Grievances – Based on perceptions or
misunderstandings.
3. Disguised Grievances – Stemming from personal problems but
expressed as workplace issues.

Grievance Handling Procedure (Steps):

Example:
An employee in a manufacturing unit complains about being unfairly
overlooked for promotion despite meeting all criteria. Upon review, it
was found the HR system was outdated, and multiple such cases
existed. After grievance procedures, the system was upgraded and
promotions revised.

Case Study:
Tata Steel has a robust grievance redressal system where all employee
complaints are recorded and resolved within a stipulated time. It
promotes open dialogue through town halls and suggestion boxes,
reducing long-term conflicts.

2. Industrial Disputes

Definition:
Any dispute or difference between employers and employees, or
between workers, connected with employment or terms of
employment.

Causes:
- Wage/salary issues
- Layoffs/retrenchments
- Working conditions
- Union recognition
- Political interference
- Violation of agreements

2.1 Strikes

Definition:
A collective stoppage of work by employees to express a grievance,
enforce a demand, or protest.

Types of Strikes:
- General Strike – Involves all workers.
- Sit-Down Strike – Workers stop work but stay at their place.
- Go-Slow – Deliberate reduction in output.
- Tool-Down Strike – Workers stop using tools but stay on premises.
- Hunger Strike – Workers fast to show protest.
- Wildcat Strike – Unofficial and without union authorization.

Example:
The Maruti Suzuki Manesar Plant Strike (2012) involved violent
protests and destruction of property due to dissatisfaction with
working conditions and disciplinary actions.

2.2 Lockouts

Definition:
Employer-initiated temporary closure of a workplace to enforce terms
on employees or in response to a strike.

Example:
Toyota Kirloskar Motors Lockout (2020) in Karnataka, due to labor
unrest, led to temporary shutdown and highlighted employer-
employee tension on working hours and conditions.

3. Industrial Relations Machinery (IRM)

Definition:
The framework established by the government to maintain
harmonious relations between employers and employees.
Here's a detailed explanation of each component of the Industrial
Relations Machinery (IRM) in India as per the Industrial Disputes
Act, 1947:

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1. Works Committees

Definition:
A Works Committee is a bipartite body comprising representatives of
employers and workers formed in industrial establishments with 100
or more workers, under Section 3 of the Industrial Disputes Act, 1947.

Objectives:
- Promote harmonious relations between employer and employees.
- Improve day-to-day working conditions.
- Prevent industrial disputes through mutual discussion.

Composition:
- Equal or greater representation of workers than employers.
- Worker representatives are elected by the employees.
- Employer nominates their representatives.

Functions:
- Discuss matters of common interest (e.g., safety, canteen, welfare).
- Encourage cooperation and mutual trust.
- Handle minor grievances before they escalate.

Limitations:
- Cannot handle disputes related to wages, bonus, or retrenchment.
- Only advisory in nature, not binding.

Example:
A Works Committee in a textile unit may help resolve minor issues
like shift timing or canteen hygiene, preventing unnecessary
escalation.
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2. Conciliation Officers

Definition:
Appointed under Section 4 of the Industrial Disputes Act, a
Conciliation Officer is a government official who acts as a mediator in
industrial disputes.

Purpose:
- Promote a fair settlement between parties.
- Prevent industrial disputes from escalating.

Powers:
- Can call for meetings and summon documents.
- Required to submit a report to the appropriate government.

Types:
- Permanent Conciliation Officers – Appointed for specific areas.
- Ad hoc Conciliation Officers – Appointed for particular disputes.

Outcome:
- If settlement is reached → Recorded in writing and binding.
- If not → Report submitted to the government recommending further
action.

Example:
In a wage hike dispute between workers and management in a steel
plant, a Conciliation Officer mediates the talks to arrive at a
compromise.

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3. Board of Conciliation

Definition:
A tripartite body constituted under Section 5 of the Act by the
government to resolve industrial disputes when:
- The Conciliation Officer fails to bring settlement, or
- The issue is complex and requires wider representation.

Composition:
- One independent chairman
- Equal number of representatives from employers and workers

Functions:
- Investigate and mediate disputes.
- Recommend a fair settlement.
- Submit a report to the government.

Example:
In case of a prolonged industry-wide dispute in the transport sector,
the government may appoint a Board of Conciliation for broader
consultation.

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4. Court of Inquiry

Definition:
Appointed under Section 6 to inquire into any matter connected with
or relevant to an industrial dispute, especially for fact-finding.

Composition:
- One or more members.
- One member must be independent (often a judge or legal expert).

Purpose:
- To investigate issues, not mediate or arbitrate.
- Provide a fact-based report to the government.

Power:
- Can summon witnesses and demand evidence.
 Example:
When allegations arise about unsafe working conditions across a
mining belt, a Court of Inquiry may be constituted to assess the
factual situation.

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5. Labour Courts

Definition:
Judicial bodies established under Section 7 of the Industrial Disputes
Act to adjudicate on specific types of disputes.

Jurisdiction:
- Matters listed in Schedule II of the Act:
- Dismissal or discharge of a worker
- Retrenchment or closure
- Legality of strikes or lockouts
- Reinstatement or compensation

Composition:
- A single judge, who must be eligible to be a district judge.

Example:
An unfair dismissal case of a factory worker can be filed in the
Labour Court for reinstatement or compensation.

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6. Industrial Tribunals

Definition:
Appointed under Section 7A to handle more complex industrial
disputes.

Jurisdiction:
- Matters in Schedule II and Schedule III:
- Wages, allowances, bonuses
- Hours of work and leave
- Working conditions
- Rationalisation and retrenchment

Composition:
- Headed by a person qualified to be a High Court judge.

Functions:
- Adjudicate disputes referred by the government.
- Pass awards (binding decisions).

Example:
When negotiations on wage revision in the banking sector fail, the
matter is referred to an Industrial Tribunal.

7. National Tribunals

Definition:
Constituted under Section 7B by the Central Government for disputes
of national importance or affecting more than one state.

Jurisdiction:
- Inter-state or national disputes.
- Significant public importance (e.g., railways, aviation).

Composition:
- A single presiding officer (qualified to be a High Court judge).
- May have assessors to advise.

Example:
A nationwide railway strike impacting all zones may be referred to a
National Tribunal for resolution.
Summary Table:
Appointed Binding
Body Purpose Jurisdiction
by Decision?
Works Establishments with
Promote harmony Employer No
Committee 100+ workers
Conciliation
Mediate disputes All disputes Government No
Officer
Board of Complex dispute
Wider disputes Government No
Conciliation resolution
Any dispute-related
Court of Inquiry Fact-finding Government No
matter
Labour Court Adjudication Schedule II matters State Govt Yes
Industrial
Adjudication Schedule II & III matters Govt Yes
Tribunal
National
Adjudication National-level disputes Central Govt Yes
Tribunal

4. Bi-partite and Tri-partite Agreements

Bi-partite Agreements:
Involve only employers and employees/unions, often related to wage
settlements or working conditions.

Tri-partite Agreements:
Involve employers, employees/unions, and the government,
particularly in public policy matters.

Example:
- Bi-partite: Wage negotiations in the banking sector through the
Indian Banks’ Association and employee unions.
- Tri-partite: Indian Labour Conference, where policy changes are
discussed among all three parties.

5. Labour Courts & Industrial Tribunals

Labour Courts:
- Handle disputes related to dismissal, retrenchment, legality of
strikes/lockouts.
- Governed by the Industrial Disputes Act, 1947.

Industrial Tribunals:
- Handle matters like wages, allowances, hours of work.
- More complex and broader in jurisdiction than Labour Courts.

Example:
In the Jet Airways retrenchment case, the issue was referred to a
tribunal after mass layoffs during COVID-19.

6. Code of Discipline

Definition:
A set of voluntary rules agreed upon by employers and unions to
avoid disputes and ensure peaceful working conditions.

Features:
- No unilateral action
- Settlement of disputes through mutual discussion
- Avoid coercive measures like strikes or lockouts
- Maintenance of discipline

Example:
Signed at the 16th Indian Labour Conference (1958); widely accepted
by major trade unions and employers.
7. Standing Orders

Definition:
Written rules and regulations defining the conditions of employment,
as mandated under the Industrial Employment (Standing Orders) Act,
1946.

Contents:
- Classification of workers
- Work hours
- Leave rules
- Disciplinary action procedures
- Termination and suspension rules

Importance:
- Provides clarity and transparency
- Reduces disputes
- Mandatory for industrial establishments with 100+ workers

Example:
A company can't dismiss a worker without due process if it is not
included in the standing orders. Case law: Bharat Forge Co. Ltd vs.
Uttam Manohar Nakate (2005) where SC ruled in favor of employer
as per standing orders.