Industrial Disputes-Basics

What are Industrial Disputes?

 Industrial Dispute means any dispute or differences between employers and employers or between employers and workmen or between workmen and workmen which is connected with the employment or non-employment or the terms of employment or with the conditions of labour of any person

What are the different categories of Industrial Disputes?


The Second Schedule of the Act deals with matters within the jurisdiction of Labour Courts which fall under the category of Rights Disputes.

 The propriety or legality of an order passed by an employer under the standing orders;

 The application and interpretation of standing orders which regulate conditions of employment.

 Discharge or dismissal of workmen including reinstatement of, or grant of relief to workmen wrongfully dismissed;


 Withdrawal of any customary concession or privilege;

 Illegality or otherwise of a strike or lock-out;

 All matters other than those specified in the Third Schedule.


The Third Schedule of the I.D. Act deals with matters within the jurisdiction of Industrial Tribunals which could be classified as Interest Disputes.

These are :

 Wages, including the period and mode of payment;
 Compensatory and other allowances;
 Hours of work and rest intervals;
 Leave with wages and holidays;
 Bonus, profit sharing, provident fund and gratuity;
 Shift working otherwise than in accordance with standing orders;
 Classification by grades;
 Rules of discipline;
 Rationalization;
 Retrenchment of workmen and closure of establishment; and
 Any other matter that may be prescribed.

Who can raise an Industrial Dispute?

 Any person who is a workman employed in an industry can raise an industrial dispute.
 A workman includes any person (including an apprentice) employed in an industry to do manual, unskilled, skilled, technical, operational, clerical or supervisory work for hire or reward.
 It excludes those employed in managerial or administrative capacity.
 Industry means any business, trade, undertaking, manufacture and includes any service, employment, handicraft, or industrial occupation or avocation of workmen.

How to raise an Industrial Dispute?

 A workman can raise a dispute directly before a Conciliation Officer in the case of discharge, dismissal, retrenchment or any form of termination of service. In all other cases listed at 2 above, the dispute has to be raised by a Union / Management.

Who are Conciliation Officers

 The Organization of the Chief Labour Commissioner (Central) acts as the primary conciliatory agency in the Central Government for industrial disputes.
 There are the Regional Labour Commissioners (Central) and Assistant Labour Commissioners (Central) who act as Conciliatory Officers in different parts of the country.

what do they do?

 The Conciliation Officer make efforts to resolve the dispute through settlement between the workmen and the management.


What happens when the dispute is referred to Labour Court?

 After the matter is referred to any of the CGIT-cum-Labour Court, the adjudication process begins. At the end of the proceedings an Award is given by the Presiding Officer.

 The Ministry of Labour under Section 17 of the I.D. Act publishes the Award in the Official Gazette within a period of 30 days from the date of receipt of the Award.

How is the Award implemented?

 An Award becomes enforceable on the expiry of 30 days from the date of its publication in the Official Gazette.

 The Regional Labour Commissioner is the implementing authority of the Awards.

Does the workman have the Right to go on strike with proper notice in Public Utility Services?

 No person employed in a Public Utility Service can go on strike without giving to the employer notice of strike;
 Within 6 weeks before striking.
 Within 14 days of giving such notice.
 Before the expiry of the date of strike specified in such notice.
 During the pendency of any conciliation proceedings before a Conciliation Officer and 7 days after the conclusion of such proceedings.

Does the Employer have the right to lock out any Public Utility Service?

 No employer carrying on any Public Utility service can lockout any of his workman :
 Without giving to them notice of lockout provided within 6 weeks before locking out.
 Within 14 days of giving such notice.
 Before expiry of the date of lockout specified in any such notice.
 During the pendency of any conciliation proceedings before a Conciliation Officer and 7 days after the conclusion of such proceedings.

Contract Labor Act - Basics

Key Definitions

nContract Labour - A workman hired in or in connection with work of an estt., by or thro’ a contractor, with or without knowledge of principal employer.(Sec.2b)

nContractor - A person who undertakes to produce a given result for the estt., other than mere supply of goods or articles of manufacture to such estt., thro’ contract labour, or who merely supplies contract labour for any work of the estt., & includes a sub-contractor.(Sec.2c)  

nPrincipal Employer - 

á  In relation to any Govt. Office or Dept. or a

     Local Authority, head of that Office/Dept. or

     such other Officer as the Govt. or the Local Authority may specify in this behalf.

á  In case of factory, the owner or occupier of   the factory, & manager of the factory, if any

     so named under the Factories Act, 1948.

á  In case of mine, owner or agent of mine & the manager of the mine, if any so named.

á  In any other estt., any person responsible for  the supervision & control of the estt.

                                                        

                                                                                                (Sec.2g)

 GUIDELINES

v Principal Employer of an estt. to make an  application within stipulated time frame,

    to the Registering Officer (Asst. Comm. of Labour)

v Revocation of RC in certain cases -

vMisrepresentation or suppression of any  material fact  

vIf the RC becomes useless or ineffective & therefore, requires to be revoked 

 

v Effect of Non-Registration -

If -  the estt. has not been registered under the Act within the stipulated time ; or

vthe RC has been revoked,   the principal employer of the estt. to which this Act applies, shall not employ contract labour after expiry of period or after the revocation of RC.

PROHIBITION OF EMPLOYMENT OF CONTRACT LABOUR

vAppropriate Govt. may, after consultation with the Central or State Advisory Board, prohibit by notification, employment of contract labour in any process, operation or other work in any estt.

vBefore issuing any notification as aforesaid, the appropriate Govt. shall have regard to the conditions of work and other benefits provided for the contract labour in that estt. and other relevant factors, such as -   

vWhether the process, operation or other work is incidental to or necessary for the industry, trade, business, manufact-ure or occupation carried on that estt.;

vWhether it is of perennial nature i.e. of sufficient duration ;

vWhether it is done ordinarily thro’ regular workmen in that estt. or estt. similar thereto ;

vWhether it is sufficient to employ considerable number of whole-time workmen.

vNo Contractor shall undertake or execute any work through contract labour except under and in accordance with a licence issued by the Licensing Officer.

  

   Contractor to make an application within stipulated time frame,to the Licensing Officer.

vA Licence shall contain -

*Such conditions including, in particular, hours of work, fixation of wages and other essential amenities in respect of contract labour.

Corporate Social Responsibility (for MBAs)

Developing a CSR Strategy

Assessment of Organization

• The organization’s values and ethics
• The internal and external drivers motivating the organization to undertake a more systematic approach to CSR
• Key CSR issues that are affecting or could affect the organization
• Key stakeholders who are engaged/need to be engaged
• The current corporate decision making structure and its strengths and inadequacies in terms of  implementing a more integrated CSR approach.

Assessment Guidelines

• Assemble a CSR leadership team
• Develop working definition of CSR
• Review corporate documents (mission states, codes of conduct, policies etc), processes and activities
• Identify and engage key stakeholders

Developing CSR Strategy

• Build support with senior management and employees
• Research what other businesses are doing
• Prepare a Matrix proposed CSR actions
• Develop options for proceeding and the business case for them
• Decide on direction (linked to business-paper & environment etc.), approach (how to move into that direction) and focus areas (alignment with business objectives-Maruti training on safe driving methods)

Business Case for CSR-Key elements
Possible leverage points on which CSR gains may be made
Areas in which organizational could potentially gain a competitive edge
Areas in which stakeholders might have particular influence
Short term and long term goals
Estimated costs of implementing each option
Anticipated Benefits
Opportunities for cost reduction
Broader changes the organization would need to make
Any risks or threats each option poses
Implications of each option for new developments

Implementing CSR Commitments

Develop an integrated CSR decision making structure
Prepare and implement a CSR business plan
Set measurable targets and identify performance measures
Engage employees and others to whom CSR commitments apply
Design and conduct CSR training
Establish mechanisms for addressing problematic behavior
Create internal and external communications plans

Areas of CSR implementation

• Business Ethics
• Corporate Structure & Governance
• Human Resource
• Labor & Human Rights
• Environmental Management
• Community Involvement & Economic Development
• Accountability

CSR in the Market Place

• Disclosure of labeling & packaging
• Pricing
• Marketing & Advertising
• Integrity of Product Manufacturing & Quality
• Distribution & Selling Practices

Benefits of CSR @ Market Place

• Risk Management
• Product Differentiation /Product Recall
• Customer Loyalty
• Increase in Public Credibility
• Global Marketplace Advantages

CSR @ Workplace-Issues

• Remuneration
• Ethical Human Resource Practices
• Health and Safety
• Work Life Balance
• Age of employees
• Downsizing
• Diversity in Work Culture
• Privacy

CSR Benefits @ Workplace

• Increase in Employee Productivity/Retention
• Credibility and Recognition
• Risk Management
• Costs and Returns
• Lesser Government Intervention

Environmental CSR-Issues

• Air Pollution
• Water Pollution
• Soil Pollution

• Bio Diversity
• Destruction of Livelihoods
• Industrial Accidents
• Industrial Material Disposal
• E-Wastes

Benefits

• Reduction of Risks & Financial Penalties
• Costs and Returns
• Access to New Market-Carbon Credit
• Lesser Government Intervention
• Technological Innovation
• Credibility and Recognition
• Global Marketplace Advantages

Selection of NGOs

• It must demonstrate competence and good results over time
• It must have a development capability in order to be able to advance the project to a bigger scale
• It must have stable and reliable reputation
• Its structure must be professionally managed
• It must hold a predominant position in its sector
• It must be capable of forming multilateral partnerships
• It must enjoy complete independence from the company or the authorities