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Unit 5: Industrial Disputes Act

14. Employees and unions from committing unfair labour practices mentioned in the Schedule Notes
V of the Act.
15. In non-public utility services strikes and lock out are prohibited during the pendency
of conciliation proceedings before the Board of Conciliation and seven days after the
conclusion of such proceedings, during the pendency of proceedings.


Case Study V.J. Textiles – Industrial Disputes Resolution System
under the Industrial Disputes Act, 1947
.J. Textiles is a leading industry having a workforce of more than 1,200 employees,
engaged in manufacturing cotton yarn of different counts. The Company has a
Vwell-established distribution network in different parts of the country. It has
modernized all its plants, with a view to improve the productivity and maintain quality.
To maintain good human relations in the plants and the organization as a whole, it has
extended all possible facilities to the employees. Compared to other mills, the employees
of V J. Industries are enjoying higher wages and other benefits. The Company has a Chief
executive, followed by executives’ in-charge of different functional areas. The Industrial
Relations Department is headed by the Industrial Relations Manager.
The employees are represented by five trade unions — A, B, C, D and E (unions are
alphabetically presented based on membership) — out of which the top three unions are
recognized by the management for purposes of negotiations. All the unions have maintained
good relations with the management, both individually and collectively. For the past ten
years, the Company has been distributing bonus to the workers at rates more than the
statutory minimum prescribed under the Bonus Act. Last year, for declaration of the rate of
bonus, the management had a series of discussions with all recognized unions and finally
announced a bonus which was, in turn, agreed upon by all the recognized unions. The very
next day when the management prepared the settlement and presented it before the union
representatives, while Unions A and C signed the same, the leader of Union B refused to do
so and walked out, stating that the rate of bonus declared was not sufficient. The next day
Union B issued a strike notice to the management asking for higher bonus.
The management tried its best to avoid the unpleasant situation, but in vain. As a result,
the members of Union B went on strike. They were joined by the members of Union D also.
During the strike, the management found that leader of Union A, soon after the first meeting,
had stated in the presence of a group of workers, “lt is because of me that the management
has agreed to declare this much amount of bonus to the employees; Union B has miserably
failed in its talks with the management for want of initiative and involvement”. This
observation somehow reached the leader of Union B as a result of which he felt insulted.
Soon after identifying the reason for Union B’s strike call, the Industrial Relations Manager
brought about a compromise between the leaders of Unions A and B. Immediately after
this meeting, the strikers (members of Unions B and D) resumed work and the settlement
was signed for the same rate of bonus as was originally agreed upon.
Questions:
1. Was the leader of Union A justified in making remarks which made the leader of
Union B feel offended?
2. What should be management’s long-term strategy for avoiding recurrence of inter
union differences on such issues?
3. If you were the Industrial Relations Manager, what would you have done had the
Union B resorted to strike for a reason other than that mentioned in the case?
Source: http://www.phindia.com/srm/Real-Time-Chap-07.pdf

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