Page 89 - DCOM207_LABOUR_LAWS

Labour Laws

Notes

Did u know? Court of Inquiry may be constituted for inquiring about matter appearing to
be connected with or relevant to an I.D. The court may consist of one or more independent
persons. It has to submit its report within six months on the matter referred to Units.
(Sec. 6).

5.4.2 Voluntary Arbitration

When Conciliation Officer or Board of Conciliation fails to resolve conflict/dispute, parties can be
advised to agree to voluntary arbitration for settling their dispute. For settlement of differences
or conflicts between two parties, arbitration is an age old practice in India. The Panchayat system
is based on this concept. In the industrial sphere, voluntary arbitration originated at Ahmedabad
in the textile industry under the influence of Mahatma Gandhi. Provision for it was made under
the Bombay Industrial Relations Act by the Bombay Government along with the provision
for adjudication, since this was fairly popular in the Bombay region in the 40s and 50s. The
Government of India has also been emphasizing the importance of voluntary arbitration’ for
settlement of disputes in the labour policy chapter in the first three plan documents, and has
also been advocating this step as an essential feature of collective bargaining. This was also
incorporated in the Code of Discipline in Industry adopted at the 15th Indian Labour Conference
in 1958. Parties were enjoined to adopt voluntary arbitration without any reservation. The position
was reviewed in 1962 at the session of the Indian Labour Conference where it was agreed that
this ‘step would be the normal method after conciliation effort fails, except when the employer
feels that for some reason he would prefer adjudication. In the Industrial Trade Resolution also
which was adopted at the time of Chinese aggression, voluntary arbitration was accepted as a
must in all matters of disputes. The Government had thereafter set up a National Arbitration
Board for making the measure popular in all the states, and all efforts are being made to sell this
idea to management and employees and their unions.
In 1956 the Government decided to place voluntary arbitration as one of the measures for
settlement of a dispute through third party intervention under the law. Sec. 10A was added to
the Industrial Disputes Act, and it was enforced from 10th March, 1957.

Reference of Disputes for Arbitration

Where a dispute exists or is apprehended, it can be referred for arbitration if the parties to the
dispute agree to do so by submitting a written agreement to that effect, mentioning the person
acceptable to them as arbitrator and also the issues to be decided in arbitration - proceedings, to
the Government and the Conciliation Officer concerned before it is referred for adjudication to
Labour Court or Tribunal. The Agreement must be signed by both the parties. Both under Sec.
10A and 10(2) reference is obligatory.
Where an agreement provides for even number of arbitrators, it will provide for the appointment
of another person as an Umpire who shall decide upon the reference if the arbitrators are divided
in their opinion. The award of the Umpire shall be deemed to be the arbitration award for the
purposes of the Act.

The appropriate Government shall within one month from the date of the receipt of the copy of
the arbitration agreement publish the same in the Official Gazette if the Government is satisfied
that the parties, who have signed the agreement for arbitration, represent majority of each party;
otherwise it can reject the request for arbitration.
Where any such notification has been issued, the employer and workmen who are not parties
to the arbitration agreement, but are concerned in the dispute, shall be given an opportunity to
present their case before the arbitrator or arbitrators.

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