Meaning of Industry and Industrial disputes
Industry: “Industry” means any
business, trade, undertaking, manufacture or calling of employers and includes
any calling, service, employment, handicraft, or industrial occupation or
avocation of workmen; the term ‘industry’ does not include:
(i) Agricultural operations (ii) Hospitals / dispensaries (iii)
Educational, scientific, research or training institutions (iv) Organisations
engaged in charitable, social or philanthropic work (v) Khadi/Village industries
(vi) Any activity of Government relatable to sovereign functions of Govt. (vii)
Domestic service (viii) Any professional activity, provided the number of
persons employed is less than ten.
Industrial Dispute:
An industrial dispute may be defined as a conflict or difference of opinion
between management and workers on the terms of employment. It is a disagreement
between an employer and employees' representative; usually a trade union, over
pay and other working conditions and can result in industrial actions. When an
industrial dispute occurs, both the parties, that is the management and the
workmen, try to pressurize each other. The management may resort to lockouts
while the workers may resort to strikes, picketing or gheraos.
As per Section 2(k) of Industrial Disputes Act, 1947, an
industrial dispute in defined as any dispute or difference between employers
and employers, or between employers and workmen, or between workmen and which
is connected with the employment or non-employment or the terms of employment
or with the conditions of labor, of any person.
Causes of Industrial Disputes
1. Low income: As prices and living expenses are rising in India,
employees also expect their income to rise. Unfortunately, that rarely happens.
To make things worse, there is only one earning member in the household and
this person alone supports everyone financially. Many times, the income is not
enough to keep everyone content and pay all the bills. Thus, if the earning
member loses his/her job, the entire family suffers in poverty. Low wages cause
discontent in employees.
2. Prices in India are rising constantly, hence, it is also expected that
the income of industrial labourers increase, but that never happens.
3. Dearness Allowance associated with labourers has no corresponding
increase with rising prices.
4. Most industries have unhygienic and unsafe working conditions. This
puts pressure on workers' health.
5. Employees find it extremely difficult to get leave with pay.
6. Employees are becoming more and more conscious about self-respect.
Tempers flare when they are insulted or instigated by their superiors.
7. Most of the time, extra bonus is not paid, or not paid on time. This
causes industrial conflicts.
8. Sometimes, employees are unfairly relieved from their jobs.
Nevertheless, their colleagues unite and fight for the rehiring of their
relieved colleagues.
9. Sometimes, trade unions are not recognized by industries resulting in
strained relations and stress.
10. Replacement of workers by machinery is causing discontent. Workers
are getting laid off and replaced by cheaper machines that do the same work.
11. Many industrial disputes are being caused by political parties.
Political involvement in trade unions causes divisions and unnecessary
tensions.
12. Disputes may also arise due to dishonest mid-level management. This
management prevents labourers from contacting senior management, and act as
middle-men. Lack of communication causes distrust.
Impact/Effect/Consequences of Industrial
Disputes
The
consequences of Industrial disputes are many. A brief description is given
1. Disturb the economic, social and political life of
a country: When labour and equipment in the whole or any part of an industry are
rendered idle by strike or lockout, national dividend suffers in a way that
injures economic welfare.
2. Loss of Output : Loss of output in an industry which is
directly affected by a dispute, but other industries are also affected
adversely, as stoppage of work in one industry checks activity in other
industries too.
3. Decline in the demand for goods and services: Strikes
reduces the demand for the goods that other industries make, if the industry in
which stoppage has occurred is one that furnishes raw materials semi-finished
goods or service largely used in the products of other industries.
4. Lasting loss
to the workers: There is a lasting injury to the workers in the
form of work being interrupted due to the strikes which involves a loss of time
which cannot be replaced. The wages are lost and the workers can least afford
to lose them especially when the average earning of a worker is not very high.
5. Increase in indebtedness: This
increases the indebtedness among the workers and not only the old debts become
heavier but fresh debts may also be incurred.
6. Loss of
health of family members: The workers and their family members also suffer
from loss of health due to mental worries resulting from loss of wages.
7. Problem to consumers: Strikes and
lockouts create problem to consumers also. Articles of their requirements are
not available in time, and the prices of such articles reach high due to black
marketing activities. ..
8. Loss to the
management/employer: When workers stop working, the plant and machinery
remain idle. The fixed express are to borne by the employer even when the
production stops. This way the employer suffers from great loss.
9. Bad effect
on labour relations: Strikes and lockouts bring bad effects on
industrial relations. With the result the workmen and the employer always are
in mental tension.
10. Obstruction
to economic growth: Strikes creates many kinds of violence which
obstruct the growth of economy.
Objectives and Features of Industrial Dispute Act:
The Industrial Disputes Act, 1947 was enacted to promote industrial peace
by providing appropriate machinery for amicable settlement of disputes arising
between employers and employees.
Objectives of the Act:
1.
The Act provides machinery for the settlement of
disputes by arbitration or adjudication.
2.
It attempts to ensure social justice and
economic progress by fostering industrial harmony.
3.
It enables workers to achieve their demands by
means of legitimate weapon of strike and thus facilitates collective
bargaining.
4.
It prohibits illegal strikes and lockouts.
5.
It provides relief to the workman in the event
of layoff or retrenchment.
6.
The act relates to all the relevant aspects of
industrial relations machinery namely—collective bargaining, mediation and
conciliation, arbitration, adjudication and matters incidental thereto.
Main
Features or Characteristics of the Act:
Some of the important features of the Act may be summearised as below:
1. Any industrial dispute
may be referred to an industrial tribunal by mutual consent of parties to
dispute or by the State Government, if it deems expedient to do so.
2. An award shall be binding on both the parties to the dispute for the operated
period, not exceeding one year;
3. Strike and lockouts are prohibited during: (a) The pendency of
conciliation and adjudication proceedings; (b) the pendency of settlements
reached in the course of conciliation proceedings, and (c) the pendency of
awards of Industrial Tribunal declared binding by the appropriate Government.
4. In public interest or emergency, the appropriate Government has power
to declare the transport (other than railways), coal, cotton textiles, food
stuffs and iron and steel industries to be public utility services for the
purpose of the Act, for a maximum period of six months.
5. In case of lay-off or retrenchment of workmen, the employer is
requested to pay compensation to them. This provision stands in the case of transfer
or closure of an undertaking.
6. A number of authorities (Works Committees, Conciliation Officers, and
Board of conciliation, Courts of Inquiry, Labour Courts, Tribunal and National
Tribunal) are provided for settlement of Industrial disputes. Although the
nature of powers, functions and duties of these authorities differ from each
other, everyone plays important role in ensuring industrial peace.
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