History of Labor Disputes in India
● Pre-World War I: Labor disputes were not common before 1918.
● Post-World War I: Disputes became more frequent due to
increased demand for better wages and working conditions.
● Second World War: The war led to higher prices and living costs,
fueling further demands and disputes.
● Independence: India's independence in 1947 brought about new
challenges and opportunities for workers and employers, leading
to continued disputes.
International Labor Organization (ILO)
● Establishment: Founded on 19 April 1919 as part of the peace
treaty after World War I.
● Purpose: Promote international labour standards and improve
working conditions worldwide.
● First specialist agency of the UN.
● India's Membership: India joined the ILO in 1919.
● Head office: Geneva
● Director general for 10 years
● Key Objectives:
○ Labour is not a commodity
○ Freedom of expression and association.
○ Elimination of poverty.
○ Full employment and improved living standards.
○ Employment Based on Qualifications: Provide jobs that
match workers' skills and qualifications.
○ Training for Workers
○ Wage and Earning Policies: Formulate policies that
consider the distribution of profit benefits.
○ Collective Bargaining: Recognize the right of workers and
employers to negotiate collectively.
○ Social security measures, including healthcare, to all in
need.
○ Child Welfare and Maternity Care
○ Educational and Vocational Opportunity
Key Functions:
● Conventions and Recommendations: Passes conventions and
recommendations on various labour-related aspects.
● Expert Opinions: Provides expert advice to member countries on
improving labour conditions.
● Research and Studies: Conducts research and publishes findings
on labour issues.
● Education and Training: Promotes education and training for
leadership in industrial relations.
● Organise regional conferences every year.
India and the ILO
Key Points:
ILO Supervision: The ILO supervises the implementation of
conventions and recommendations by member states.
Committees: The ILO has committees to examine annual reports
on conventions and recommendations, investigate complaints on
trade union rights, and address complaints on freedom of
association.
Impact on India: India has gained from the ILO, even with a low
ratification rate. ILO conventions have influenced Indian labor
legislation, and ILO experts have provided valuable advice on
industrial relations matters. Factory act,ESI Act are examples
Positive Outcomes:
○ The ILO's work has contributed to the development of Indian
textile and engineering industries.
○ Development of cottage and handicraft industries
○ Training programmes
Impact of International Standards on Indian Labor Legislation
Conditions of Work
● ILO gives special attention to working conditions of workers, including:
○ Hours of work
○ Weekly rest
○ Holidays with pay
○ Method of wage regulations
○ Labour administration and inspection
Employment of Children and Young Persons
● Conventions and recommendations made references about working
conditions of youth, including:
○ Minimum age
○ Prohibitions about hazardous occupations
○ Medical examinations
○ Night work (sec 57)
● These conventions and recommendations have been incorporated into
India's Factory Act and Employment of Children Act.
Employment of Women
● Conventions and recommendations about conditions for employment of
women workers have been incorporated into:
○ Factory Act (sec 35)
○ Maternity Benefit Act
○ Other Acts related to women workers
Health, Safety, and Welfare
● Conventions and recommendations related to this area have been
included in various Acts, including:
○ Factory Act (sec 34)
○ Mines Act
Social Security
● Conventions and recommendations related to provision of
compensation, sickness insurance, invalidity, old age settlement,
maternity protection, and general aspects of social securities have been
adopted in various statutory acts.
Industrial Relations
● ILO has given special attention to the matter of freedom of association
and harmonious relations between workers and employers.
● Several studies have been conducted and conventions and
recommendations have been made.
● Member countries, including India, are following ILO's directions for
avoiding industrial disputes and maintaining industrial peace.
Labour Policies: History and Enactments of State Labor Laws
and Policies
● India's labour policy is based on various labour laws.
● These laws derive their origin from the views of national leaders during the
national freedom struggle, debates in the constitutional assembly, and
international conventions and recommendations.
● The constitution of India enshrines the dignity of human labour and the need
for safeguarding their interests. Chapter 3 and Chapter 4 of Indian
Constitution.
● Important Human Rights and conventions have influenced India's labour laws.
● The deliberation of the Indian labor conference, ILC, and recommendations of
various National Committees and Commissions have shaped labor legislation.
● Judicial pronouncements on labor-related matters, such as minimum wages,
bonded labor, child labor, and contract labor, have also influenced labor laws.
Constitutional Framework
● Under the constitution of India, labor is a subject in the concurrent list,
allowing both state and central governments to enact legislation.
● This has resulted in a large number of labor laws catering to different aspects.
● These laws can be categorized under various headings.
Labor Laws of Central Government
S. Act Enacted
No.
1 Employees State Insurance Act 1948
2 The Employees' Provident Fund and Miscellaneous Provisions 1952
Act
3 The Dock Workers (Safety, Health and Welfare) Act 1986
4 The Mines Act 1952
5 The Iron Mines, Manganese Ore Mines and Chrome Ore 1976
Mines, Labor Welfare (Cess) Act
6 The Iron Mines, Manganese Ore Mines and Chrome Ore 1976
Mines, Labor Welfare Fund Act
7 The Mica Mines Labor Welfare Act 1946
8 The Beedi Workers Welfare Fund Act 1986
9 The Limestone and Dolomite Mines Labor Welfare Fund Act 1972
10 The Cine Workers Welfare Fund Act 1981
Labor Laws of Central Govt and enforced both by State and Central Govt
S. Act Enacted
No
.
11 The Child Labor (Prohibition and Regulation) Act 1986
12 The Building and Other Construction Workers (Regulation of 1996
Employment and Conditions of Service) Act
13 The Contract Labor (Regulation and Abolition) Act 1970
14 The Equal Remuneration Act 1976
15 The Industrial Disputes Act 1947
16 The Industrial Employment (Standing Order) Act 1946
17 The Inter-State Migrant Workers (Regulation of Employment 1979
and Conditions of Service) Act
18 The Labor Law (Exemption from Furnishing Returns and 1988
Maintaining Registers by Certain Establishments) Act
19 The Maternity Benefit Act 1961
Labor Laws of Central Government and Enforced by State
Government
S. Act Enacted
No.
20 The Minimum Wages Act 1948
21 The Payment of Wages Act 1936
22 The Payment of Gratuity Act 1972
23 The Employees' Provident Funds and Miscellaneous Provisions 1952
Act
24 The Building and Other Construction Workers (Regulation of 1996
Employment and Conditions of Service) Cess Act
25 The Apprentices Act 1961
26 The Employees' State Insurance Act 1948
27 The Employers' Liability Act 1938
28 The Motor Transport Workers Act 1961
29 The Factories Act 1948
30 The Personal Injuries (Compensation) Insurance Act 1963
31 The Personal Injuries (Emergency Provisions) Act 1963
32 The Plantation Labor Act 1951
33 The Sales Promotion Employees (Conditions of Service) Act 1976
34 The Trade Union Act 1926
35 The Weekly Holidays Act 1942
36 The Working Journalists and other Newspaper Employees 1955
(Conditions of Service and Miscellaneous Provisions) Act
37 The Workmen's Compensation Act 1923
38 The Employment Exchanges (Compulsory Notification of 1959
Vacancies) Act
39 The Children (Pledging of Labor) Act 1938
40 The Bonded Labor System (Abolition) Act 1976
41 The Beedi and Cigar Workers (Conditions of Employment) Act 1966
Adjudication in Industrial Relations
● Adjudication: A mandatory settlement of disputes by a labor court or tribunal.
● Initiation: Government refers disputes for adjudication if conciliation
proceedings fail.
● Binding Decision: The verdict of the court or tribunal is binding on both
parties.
● Objective: To maintain industrial peace and settle disputes.
● Criticism: Delay in settlement and continued dependence on adjudication.
● Voluntary Arbitration:
A neutral third party hears both sides and makes a binding decision on both
the parties(Union and the employer). Proposed in 1947 Industry Dispute Act.
● Compulsory Bipartite Committees:
Established if either union or management resists voluntary
collective bargaining.
Purpose: To settle disputes as soon as they appear and do not permit
them to grow .
Members: Representatives of workers and employers only.
Reason:
○ Promote amicable relations between workers and employers.
○ Discuss matters of common interest.
○ Encourage parties to settle differences without arbitration.
Role: Act as a preventive measure to address issues promptly and
avoid major conflicts.
Compulsory Conciliation
● Definition: A process where representatives of workers and employers are
brought together by a third party to resolve disputes through discussion.
● Purpose: To keep discussions going on and help parties understand each
other's perspectives.
● Conciliator's Role: Facilitates discussions, explains positions, and suggests
solutions. Ant as a catalyst for communication in impartial way.
● Note: Concilation officer has no power to to face settlement.
● Industrial Disputes Act 1947: Provides for the appointment of conciliators by
the government who fits more. Concillation officer shall submit the report
within 14 days of perceedings.
● Prohibitions: Strikes or lockouts are prohibited during conciliation
proceedings.
● If the concilation efforts is failed employees are free to go for strikes.
● Duties of concilation officer:
1. mediate and promote settlement
2. Investigate on dispute
3. To hold issues
4. To submit the report to government
5. submit the memorandum of settlement.
Tripartite Body for Settlement of Disputes
A consultative machinery at industry and national levels.
● Purpose: To establish a smooth relationship between management and
workers.
● Establishment: Began as a statutory organization by the commendation to
ILO in 1931.
● Composition: Representatives of employers, employees, and the
government.
● Objectives:
○ To bring aggravated parties together for mutual settlement of disputes.
○ To promote uniformity in labor laws and legislation.
○ To discuss matters of national importance between employers and
employees.
○ To determine plans for settlement of all disputes.
Compulsory Mediation
● Definition: An informal process for helping parties settle disputes with the
assistance of an outsider.
● Mediator's Role: Listens, suggests, communicates, and persuades, but does
not give awards.
● Purpose: To stimulate labour and management to reach an agreement.
Compulsory Investigation
● Government may set up machinery to investigate disputes and explore
solutions.
● Court of Inquiry: Established to explore true facts and issues involved in a
[Link] time for enquiry can be a cooling of time to both the parties to
rethink on settlement.
● Wide Publicity may compel parties to leave rigid attitudes and try to arrive at a
settlement.
Negotiation
Definition: A process to reach an agreement on wages, benefits, and working
conditions between employers and employees.
Process: Involves proposals, discussions, counterproposals, arguments, etc. to
arrive at a settlement.
Key Aspects:
● Open discussion
● Mutual respect
● Appreciation of the other party's perspective
No Legal Compulsion: There is no legal requirement to negotiate on any matter in
dispute.
Detailed Process:In a company when an employer raise any issue the
relationship manager primarily work on it. If it is not resolved after informing
the top level management and trade union a negotiation date will be fixed.
Negotiation manger or other representatives of the company can participate in
negotiation meetings. It is the skill of negotiation officer to arrive at better
conclussion in negotiation.
Steps: 1. Forming good negotiation team.
2. Good start
3. Continues discussion
4. Develop options
5. Contract
Features of Negotiation
● Willingness to Give and Take: Both sides must be prepared to compromise
and make concessions for the negotiation to be successful.
● Avoidance of Unfair Labor Practices: Both sides should strive to maintain a
fair and respectful atmosphere.
● Mutual Respect: Respectful communication and understanding of each
other's perspectives are crucial for successful negotiation.
Dos of Negotiation
● Seek more than you plan to receive
● Negotiate in private, not through the media
● Do let both sides win otherwise the other side may retaliate
● Do start with easy issues
● Do remember that negotiations are seldom over when the agreement is
concluded as in the long run the contract will be renegotiated.
● Do resolve deadlock by stressing past progress, another point or counter
proposals
Don'ts of Negotiation
● Don't make your best offer first, that is so uncommon that other side will
expect more
● Don't seek unwanted changes, you may get them
● Don't say NO absolutely, unless your organization will back you up absolutely
● Don't violate the confidence
● Don't settle too quickly
● Don't let other side bypass your team and go directly to the top management
● Don't let the top management actually participate in face to face negotiations.
They are often inexperienced and poorly informed