Page 180 - DMGT306_MERCANTILE_LAWS_II

Unit 10: Industrial Disputes Act, 1947

Its main objective is to provide for a just and equitable settlement of disputes by negotiations, Notes
conciliation, dedication, voluntary arbitration and adjudication instead of by trial of strength
through strikes and lock-outs. As State Governments are free to have their own labour laws,
States like UP, MP, Gujarat and Maharashtra have their own legislation for settlement of disputes
in their respective states. U.P. legislation is known as U.P. Industrial Disputes Act, while others
have Industrial Relations Act more or less on the lines of Bombay Industrial Relations Act, 1946.
The purpose of this unit is to enable the students to comprehend basic expressions. At the end of
this unit, you should be able to understand various concepts regarding Industrial Dispute Act.

Industrial disputes are organised protests against existing terms of employment or conditions
of work. According to the Industrial Dispute Act, 1947, an Industrial dispute means
“Any dispute or difference between employer and employer or between employer and workmen
or between workmen and workmen, which is connected with the employment or
non-employment or terms of employment or with the conditions of labour of any person”
In practice, industrial dispute mainly refers to the strife between employers and their employees.
An Industrial dispute is not a personal dispute of any one person. It generally affects a large
number of workers’ community having common interests.
The World War I (1914-1919) brought a new awakening among the working class people who
were dominated by the employers regarding the terms and conditions of service and wages. The
workers resorted to strikes to fulfill their demands and the employers retaliated by declaring
lockouts. During the period 1928-29 the numerous strikes and lock-outs forced the Government
to enact the Trade Disputes Act, 1929.

The Trade Disputes Act, 1929 was introduced for the settlement of industrial disputes. This Trade
Union Act gave the trade unions a legal status. The main object of the Act was to make provision
for the establishment of Courts of Enquiry and Boards of Conciliation with a view to investigating
and settling trade disputes. But, this Act failed to create favorable atmosphere in the industry
and settle the disputes. The main defect of the Act was that no provision was has been made to
render the proceedings institutable under the Act while restraint had been imposed on the right
of strike and lock-out in the public utility services. But, later this defect was overcome by
empowering under Rule 81-A, of the Defense of Indian Rules to refer industrial disputes to
adjudicator for settlement during the Second World War (1938-1945). The rule provide speedy
remedies for industrial disputes by compulsory reference of disputes to conciliation or
adjudication, by making the awards of adjudicators legally binding on the parties, by prohibiting
strikes and lock-outs during the pendency of conciliation or arbitration proceeding.
With the termination of the Second World War, Rule 81-A was about to lapse on 1st October,
1946, but it was kept alive by recourse to Government’s Emergency Powers. The main provision
was retained in the Industrial Disputes Act, 1947.
The main purpose of the Industrial Disputes Act, 1947 is to ensure fair terms between employers
and employees, workmen and workmen as well as workmen and employers. It helps not only
in preventing disputes between employers and employees but also help in finding the measures
to settle such disputes so that the production of the organization is not hampered. In this unit, we
are going to discuss the Industrial Disputes Act, 1947 and its importance. This unit encompasses
the different authorities and their duties in the settlement of disputes. It also discuss about the
reference of disputes. Through this unit, you will be able to know about the different award
given by the different authorities under the Act. Thus, you will able to understand through this
unit, the procedures of settlement of the disputes as well as the duties of different authorities as
well as the way of reference of disputes.

LOVELY PROFESSIONAL UNIVERSITY 175