Page 199 - DMGT306_MERCANTILE_LAWS_II

Mercantile Laws – II

Notes Both the Central and State Governments are empowered under the Industrial Disputes Act, 1947
to appoint such number of conciliation officers as may be considered necessary for specified
areas or for specified industries in specified areas either permanently or for limited periods.

Notes The main duty of a Conciliation Officer is to investigate and promote settlement of
disputes. He has wide discretion and may do all such things, as he may deem fit to bring
about settlement of disputes. His role is only advisory and mediatory. He has no authority
to make a final decision or to pass formal order directing the parties to act in a particular
manner.

Process of Conciliation

Where any industrial dispute exists or is apprehended, and is brought to the notice of conciliation
officer by the parties concerned, or is referred to him by the government, or he receives a notice
of strike or lock-out, he is to hold conciliation proceedings in the prescribed manner. Conciliation
proceedings are obligatory in case of public utility services, and in such cases conciliation
proceedings have to be started immediately after receiving notice of strike or lock-out or reference
from the Government. In such cases conciliation proceedings are deemed to have commenced
from the time the notice of strike is received by the conciliation officer. In other cases conciliation
may be initiated at the discretion of the Government. The conciliation officer’ may send formal
intimation to the parties concerned declaring his intention to commence conciliation proceedings
with effect from the date he may specify. He may hold meetings with the parties to the dispute
either jointly or separately.
A joint meeting saves time and also affords parties an opportunity to meet each other and put
forward their respective view points and comments about the dispute. Conciliation proceedings
are to be conducted expeditiously in a manner considered fit by the conciliation officer for the
discharge of his duties imposed on him by the Act, If a settlement is arrived at in the course of the
conciliation proceedings, memorandum of settlement is worked out and signed by the parties
concerned, and it becomes then binding on all parties concerned for a period agreed upon.

The conciliation officer is to send a report to the Government giving full facts along with a copy
of the settlement. If no agreement is arrived at, the conciliation officer is required to submit a
full report to the Government explaining the causes of failure.
After considering the failure report the Government may refer the dispute to the Board of
Conciliation, arbitration, or for adjudication to Labour Court or Industrial Tribunal. If the
Government does not make such a reference, it shall record and communicate to the parties
concerned the reasons thereof. While exercising its discretion, the Government must act in a
bonafide manner and on consideration of relevant matters and facts. The reasons must be such
as to show that the question was carefully and properly considered. The conciliation officer has
to send his report within 14 days of the commencement of conciliation proceedings, and this
period may be extended as may be agreed upon by the parties in writing.

The conciliation officer is not the judicial officer. After reporting that no settlement could be
arrived at, he cannot be debarred from, making fresh effort to bring about a settlement. But he
cannot take final decision by himself.

Powers of Conciliation Officer

Under the Act, conciliation is not a judicial activity. It is only administrative, since it is executed
by the Government agency. Although conciliation officer is not a judicial officer, but to enable

194 LOVELY PROFESSIONAL UNIVERSITY