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Machineries for the settlement of 
industrial dispute 
Submitted To- Asst.Prof- 
Dr. Nigamananda Biswas 
compiled by- 
Sonakshi Nath 
Roll no-69
Machineries for the settlement of industrial disputes 
Non  
statutory 
methods 
Government 
machinery 
Statutory 
measures
1.Non - statutory methods 
Code of 
discipline 
Tripartite 
machinery 
WPM 
COLLECTIVE 
BARGAINING 
SCHEME
NON  STATUTORY METHODS 
A. CODE OF DISCIPLINE 
o It contains self  imposed obligations formulated 
by the central organization of employers and the 
workers. 
o The government has set up various agencies at 
the central and the state level to implement code 
of discipline. 
o The code of discipline provides guidelines for 
the employers, workers and unions. It also 
stipulates that the management should utilise the 
existing machinery for settlement of their 
disputes.
o In order to maintain discipline in the industry, both in the private and the 
public sectors, workers and employers should recognize their rights and 
responsibilities defined by law and agreements and both the parties should 
discharge their obligations properly and willingly.
Advantages of code of discipline 
 Uninterrupted production 
 Reduction in industrial disputes 
 High moral 
 Recognize rights and 
responsibilities for both 
employers and workers.
B. Tripartite machinery 
Indian labour 
conference 
Standing labour 
committee 
Industrial 
committee
o Similar bodies have also been set up to deal with specific subjects  the 
national counsil on training in vocational trades and the central committee 
on employment deals with employment and training respectively. 
o The standing labour committee include government representatives from 
the state and central and an equal number of representatives from workers 
and employers organizations.
o Important legislative proposals are discussed and 
recommended by the labour conference and 
standard labour committee. 
o Proposals include enactment of-: 
Industrial enactment act, 1946 
The factories act,1948 
Revision of employment children act,1938
Advantages of tripartite machinery 
 Powerful instrument in the formulation of labour policy 
 Its legal framework plays a vital role in reducing industrial disputes.
C. WORKERS PARTICIPATION IN MANAGEMENT 
 The concept of workers participation in management is considered as a 
mechanism where workers have a say in the decision making process of an 
enterprise. 
 In view of social thinkers like Comte and owen, workers participation in 
management should be encouraged for achieving social justice.
 According to their view participative management is one of the tools of 
management where the emphasis is on the human approach.
 Example-: Tata iron and steel company (TISCO) now called Tata Steel 
established a system for workers participation in organization. The 
company set up 
a) joint departmental council 
b) joint work councils 
c) joint consultative council of management
Advantages of WPM 
 Ensure healthy industrial relation 
 Gives a sense of belongingness 
 Ensures the level of commitment among the 
employees 
 Mitigating industrial problems 
Disadvantages of WPM 
 Trade union is keen to fulfill the interest of 
political parties but not the workers interest.
D.COLLECTIVE BARGAINING SCHEME 
 Collective bargaining is a process of 
negotiations between employers and a 
group of employees aimed at reaching 
agreements to regulate working conditions. 
 Its a group process wherein one group 
representing the employers and the other 
representing the employees sit together to 
negotiate terms of agreement. 
 The interests of the employees are 
commonly presented by representatives of 
a trade union to which the employees 
belong.
 The collective agreements reached by these negotiations usually set out 
wage scales, working hours, training, health and safety, 
overtime, grievance mechanisms, and rights to participate in workplace or 
company affairs. 
 It is a bipartite process. The employers and the employees are only parties 
involved in the bargaining process. There is no third party intervention.
Advantages of collective bargaining 
 it is not merely an economic process, but more 
socio economic one. 
 The values , aspiration and expectation plays a 
significant role 
 Provides legally based bilateral relationship. 
 Managements rights are clearly spelled out. 
 Employers and employees rights protected by 
binding collective bargaining agreement.
Disadvantages of collective bargaining 
 More difficult for employees at smaller campuses to have their voices heard. 
 Higher management costs associated with negotiating and administering the 
agreements. 
 Eliminates ability of management to make unilateral changes in wages, hours, and 
other terms and conditions of employment. 
 Increased dependence on the private sector for certain services, particularly those 
requiring technological competence, may be compromised.
2. Government machinery 
LABOUR ADMINISTRATION 
MACHINERY (STATE AND CENTRAL 
LEVEL)
2.Government machinery 
A. Labour administration machinery 
 In india both central and state governments enact and administer labour laws. 
 It is the central government that is ministry of labour and employment plays 
the main role in laying down laws, making provisions and the state 
government with assistance of their departments are in charge of law 
enforcement.
 Together with the state governments, the local bodies and the statutory 
corporations , it sees to the implementation of these policies and decisions of 
the tripartite committees. 
 These four agencies are also responsible for the enforcement of labour laws-: 
1) directorate general of employment and training (DGET) 
2) Office of chief labour council (CLC,CIRM)
3) The Directorate general of mine safety (DGMS) 
4) The Directorate general of factory advice service and labour industries.
3.Statutory measures
Work 
committee 
conciliation 
Voluntary 
arbitration 
adjudication
A.Work committees 
 The ID Act, 1947 provides for the setting up of works committees which 
consists of representatives of employers and employees. 
 These work committees are the consultative bodies. their functions 
includes discussion about working conditions like lighiting, ventilation, 
temparature, sanitation, etc., 
 Amenities like water supply for drinking purposes, provision of canteens, 
medical facilities, safe working conditions, administration of welfare funds, 
educational and recreational activities and encouragements of thrift and 
savings.
 The work committees as office bearers have , a president, a vice- president, 
a secretary and a joint secretary. 
 The tenure of these bodies is two years. The total strength of these bodies 
should not exceed 20. 
 The employees representatives have to be chosen by the employees 
employed in an establishment and in consultation with registered trade 
union. 
 Example:- Tata iron and steel company, Hindustan lever.
B. Conciliation 
 the practice by which the services of a neutral third party are used in a 
dispute as a means of helping the disputing parties to reduce the extent of 
their differences and to arrive at an amicable settlement or agreed 
solution
Conciliation under the ID Act, 1941. 
 The act provides for conciliation as a method for settlement of disputes. 
 To achieve this the appropriate government, after notifying the Official 
Gazette, can either appoint conciliation officers(permanently or for a 
limited period) or constitute a board of conciliation.
What is conciliation? 
Conciliation helps different parties to negotiate a settlement by: 
 identifying issues and understanding the facts and circumstances 
 discussing problems 
 understanding needs of the parties 
 reaching a mutually acceptable agreement
CONCILIATION 
Conciliation board Conciliation office
What are the advantages of conciliation? 
 Conciliation is free 
 It is less time consuming than going 
to court 
 There is no media exposure to the 
individual parties 
 It is less formal as compared to court 
trial 
 It is voluntary
Process of conciliation 
1. Bring the two parties together
2. Listens to the case of both the parties
3. Proposes a compromise or solution to the problem 
which may or may not be acceptable to the parties
4. Within 14 days the conciliation officer has to send a 
report to the government
5. The board of conciliation has to finish its work within 
two months and then submit the report to the 
government.
Grievance machinery
C. Arbitration 
 Arbitration is either voluntary or 
compulsory. 
 Its decisions is binding on the parties. 
 the arbitrator gives his judgement on the 
basis of the evidence submitted to him by 
the employers and the employees. 
 Here the parties are forced to arbitration by 
the power of state. This method of settling 
dispute is used when parties fails to solve 
them by the voluntary method.
Who is a arbitrator?
ADVANTAGES OF ARBITRATION 
 Speedier resolution; however, there can be exceptions due to multiple 
parties, arbitrators, lawyers and litigation strategy. 
 Less costly; however, there can be exceptions due to multiple parties, 
lawyers, arbitrators and litigation strategy. 
 Exclusionary rules of evidence dont apply; everything can come into 
evidence so long as relevant and non-cumulative. 
 The ability to get arbitrators who have arbitrator process expertise and 
specific subject matter expertise.
Disadvantages Of arbitration 
 There is no jury and from the claimants point of view that may be a 
serious drawback. 
 An arbitrator may make an award based upon broad principles ofjustice 
and equity and not necessarily on rules of law or evidence. 
 An arbitration award cannot be the basis of a claim for malicious 
prosecution.
D. Adjudication 
 It is a process of dispute settlement wherein the government submit the 
case to a competent authority and enforces its awards on the parties. 
 The procedure of adjudication involves  compusory attendance of witness, 
compulsory powers of investigation and compulsory enforcement of 
awards with penalities for the breech of these awards.
Adjudication 
Labour court Industrial tribunal 
National tribunal
Advantages of adjudication 
 Statutory right  Adjudication will apply even if the contract does not provide for it. 
 Reputation  As the proceedings are conducted in private the dispute can be resolved 
without being heard in open court thus protecting the reputation of the parties. 
 Written reasoning  The adjudicator may provide written reasoning for his 
decision. 
 Speed- an impartial decision can normally be obtained with a number of weeks, whereas a 
case commenced in the courts can take months or years to conclude a case.
Arbitration VS Adjudication 
ARBITRATION ADJUDICATION 
 It is a voluntary body of resolving 
industrial dispute. It is resorted to 
before the dispute is referred to 
the labour court, industrial 
tribunal and national tribunal. 
 May extend over a long period if 
hearing protracted; it may take 
years or even year to conclude. 
 It is compulsory and is ultimate 
remedy for resolving disputes 
provided by the ID Act 1947. 
 Very much shorter than arbitration 
and litigation. Adjudicator has 30 
days to decide.
Arbitration Adjudication 
 Confidentiality is Private but 
may become public if there is 
court intervention. 
 Cost is Generally higher than 
mediation and litigation because 
of thoroughness and expediency. 
 Confidentiality is Private for 
consensual adjudication but may 
become public for compulsory 
adjudication as the adjudication 
decision has to be enforce through 
the court. 
 Cost is Lower than arbitration 
cost because of faster hearing.
Grievance machinery

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Grievance machinery

  • 1. Machineries for the settlement of industrial dispute Submitted To- Asst.Prof- Dr. Nigamananda Biswas compiled by- Sonakshi Nath Roll no-69
  • 2. Machineries for the settlement of industrial disputes Non statutory methods Government machinery Statutory measures
  • 3. 1.Non - statutory methods Code of discipline Tripartite machinery WPM COLLECTIVE BARGAINING SCHEME
  • 4. NON STATUTORY METHODS A. CODE OF DISCIPLINE o It contains self imposed obligations formulated by the central organization of employers and the workers. o The government has set up various agencies at the central and the state level to implement code of discipline. o The code of discipline provides guidelines for the employers, workers and unions. It also stipulates that the management should utilise the existing machinery for settlement of their disputes.
  • 5. o In order to maintain discipline in the industry, both in the private and the public sectors, workers and employers should recognize their rights and responsibilities defined by law and agreements and both the parties should discharge their obligations properly and willingly.
  • 6. Advantages of code of discipline Uninterrupted production Reduction in industrial disputes High moral Recognize rights and responsibilities for both employers and workers.
  • 7. B. Tripartite machinery Indian labour conference Standing labour committee Industrial committee
  • 8. o Similar bodies have also been set up to deal with specific subjects the national counsil on training in vocational trades and the central committee on employment deals with employment and training respectively. o The standing labour committee include government representatives from the state and central and an equal number of representatives from workers and employers organizations.
  • 9. o Important legislative proposals are discussed and recommended by the labour conference and standard labour committee. o Proposals include enactment of-: Industrial enactment act, 1946 The factories act,1948 Revision of employment children act,1938
  • 10. Advantages of tripartite machinery Powerful instrument in the formulation of labour policy Its legal framework plays a vital role in reducing industrial disputes.
  • 11. C. WORKERS PARTICIPATION IN MANAGEMENT The concept of workers participation in management is considered as a mechanism where workers have a say in the decision making process of an enterprise. In view of social thinkers like Comte and owen, workers participation in management should be encouraged for achieving social justice.
  • 12. According to their view participative management is one of the tools of management where the emphasis is on the human approach.
  • 13. Example-: Tata iron and steel company (TISCO) now called Tata Steel established a system for workers participation in organization. The company set up a) joint departmental council b) joint work councils c) joint consultative council of management
  • 14. Advantages of WPM Ensure healthy industrial relation Gives a sense of belongingness Ensures the level of commitment among the employees Mitigating industrial problems Disadvantages of WPM Trade union is keen to fulfill the interest of political parties but not the workers interest.
  • 15. D.COLLECTIVE BARGAINING SCHEME Collective bargaining is a process of negotiations between employers and a group of employees aimed at reaching agreements to regulate working conditions. Its a group process wherein one group representing the employers and the other representing the employees sit together to negotiate terms of agreement. The interests of the employees are commonly presented by representatives of a trade union to which the employees belong.
  • 16. The collective agreements reached by these negotiations usually set out wage scales, working hours, training, health and safety, overtime, grievance mechanisms, and rights to participate in workplace or company affairs. It is a bipartite process. The employers and the employees are only parties involved in the bargaining process. There is no third party intervention.
  • 17. Advantages of collective bargaining it is not merely an economic process, but more socio economic one. The values , aspiration and expectation plays a significant role Provides legally based bilateral relationship. Managements rights are clearly spelled out. Employers and employees rights protected by binding collective bargaining agreement.
  • 18. Disadvantages of collective bargaining More difficult for employees at smaller campuses to have their voices heard. Higher management costs associated with negotiating and administering the agreements. Eliminates ability of management to make unilateral changes in wages, hours, and other terms and conditions of employment. Increased dependence on the private sector for certain services, particularly those requiring technological competence, may be compromised.
  • 19. 2. Government machinery LABOUR ADMINISTRATION MACHINERY (STATE AND CENTRAL LEVEL)
  • 20. 2.Government machinery A. Labour administration machinery In india both central and state governments enact and administer labour laws. It is the central government that is ministry of labour and employment plays the main role in laying down laws, making provisions and the state government with assistance of their departments are in charge of law enforcement.
  • 21. Together with the state governments, the local bodies and the statutory corporations , it sees to the implementation of these policies and decisions of the tripartite committees. These four agencies are also responsible for the enforcement of labour laws-: 1) directorate general of employment and training (DGET) 2) Office of chief labour council (CLC,CIRM)
  • 22. 3) The Directorate general of mine safety (DGMS) 4) The Directorate general of factory advice service and labour industries.
  • 24. Work committee conciliation Voluntary arbitration adjudication
  • 25. A.Work committees The ID Act, 1947 provides for the setting up of works committees which consists of representatives of employers and employees. These work committees are the consultative bodies. their functions includes discussion about working conditions like lighiting, ventilation, temparature, sanitation, etc., Amenities like water supply for drinking purposes, provision of canteens, medical facilities, safe working conditions, administration of welfare funds, educational and recreational activities and encouragements of thrift and savings.
  • 26. The work committees as office bearers have , a president, a vice- president, a secretary and a joint secretary. The tenure of these bodies is two years. The total strength of these bodies should not exceed 20. The employees representatives have to be chosen by the employees employed in an establishment and in consultation with registered trade union. Example:- Tata iron and steel company, Hindustan lever.
  • 27. B. Conciliation the practice by which the services of a neutral third party are used in a dispute as a means of helping the disputing parties to reduce the extent of their differences and to arrive at an amicable settlement or agreed solution
  • 28. Conciliation under the ID Act, 1941. The act provides for conciliation as a method for settlement of disputes. To achieve this the appropriate government, after notifying the Official Gazette, can either appoint conciliation officers(permanently or for a limited period) or constitute a board of conciliation.
  • 29. What is conciliation? Conciliation helps different parties to negotiate a settlement by: identifying issues and understanding the facts and circumstances discussing problems understanding needs of the parties reaching a mutually acceptable agreement
  • 30. CONCILIATION Conciliation board Conciliation office
  • 31. What are the advantages of conciliation? Conciliation is free It is less time consuming than going to court There is no media exposure to the individual parties It is less formal as compared to court trial It is voluntary
  • 32. Process of conciliation 1. Bring the two parties together
  • 33. 2. Listens to the case of both the parties
  • 34. 3. Proposes a compromise or solution to the problem which may or may not be acceptable to the parties
  • 35. 4. Within 14 days the conciliation officer has to send a report to the government
  • 36. 5. The board of conciliation has to finish its work within two months and then submit the report to the government.
  • 38. C. Arbitration Arbitration is either voluntary or compulsory. Its decisions is binding on the parties. the arbitrator gives his judgement on the basis of the evidence submitted to him by the employers and the employees. Here the parties are forced to arbitration by the power of state. This method of settling dispute is used when parties fails to solve them by the voluntary method.
  • 39. Who is a arbitrator?
  • 40. ADVANTAGES OF ARBITRATION Speedier resolution; however, there can be exceptions due to multiple parties, arbitrators, lawyers and litigation strategy. Less costly; however, there can be exceptions due to multiple parties, lawyers, arbitrators and litigation strategy. Exclusionary rules of evidence dont apply; everything can come into evidence so long as relevant and non-cumulative. The ability to get arbitrators who have arbitrator process expertise and specific subject matter expertise.
  • 41. Disadvantages Of arbitration There is no jury and from the claimants point of view that may be a serious drawback. An arbitrator may make an award based upon broad principles ofjustice and equity and not necessarily on rules of law or evidence. An arbitration award cannot be the basis of a claim for malicious prosecution.
  • 42. D. Adjudication It is a process of dispute settlement wherein the government submit the case to a competent authority and enforces its awards on the parties. The procedure of adjudication involves compusory attendance of witness, compulsory powers of investigation and compulsory enforcement of awards with penalities for the breech of these awards.
  • 43. Adjudication Labour court Industrial tribunal National tribunal
  • 44. Advantages of adjudication Statutory right Adjudication will apply even if the contract does not provide for it. Reputation As the proceedings are conducted in private the dispute can be resolved without being heard in open court thus protecting the reputation of the parties. Written reasoning The adjudicator may provide written reasoning for his decision. Speed- an impartial decision can normally be obtained with a number of weeks, whereas a case commenced in the courts can take months or years to conclude a case.
  • 45. Arbitration VS Adjudication ARBITRATION ADJUDICATION It is a voluntary body of resolving industrial dispute. It is resorted to before the dispute is referred to the labour court, industrial tribunal and national tribunal. May extend over a long period if hearing protracted; it may take years or even year to conclude. It is compulsory and is ultimate remedy for resolving disputes provided by the ID Act 1947. Very much shorter than arbitration and litigation. Adjudicator has 30 days to decide.
  • 46. Arbitration Adjudication Confidentiality is Private but may become public if there is court intervention. Cost is Generally higher than mediation and litigation because of thoroughness and expediency. Confidentiality is Private for consensual adjudication but may become public for compulsory adjudication as the adjudication decision has to be enforce through the court. Cost is Lower than arbitration cost because of faster hearing.