Page 205 - DMGT306_MERCANTILE_LAWS_II

Mercantile Laws – II

Notes bargaining rather than by adjudication. Quite a number of disputes are reported to be pending
with Labour Courts and Industrial Tribunals for four or five years, and for still longer periods
in High Courts and the Supreme Court. It, therefore, appears that the machinery provided by
the Industrial Disputes Act is failing to cope with demand made on it. Its record shows that is far
from successful in resolving conflict effectively. This may be due to red-tapism and bureaucratic
delays and complicated procedure which are inherent in the Government organisation. Such
delays have encouraged militancy or violence in management and union relations.
The Industrial Disputes Act as amended recently (Act 46 of 1982), provides time limits for the
disposal of disputes by Labour Courts and Tribunals, but these time limits are observed rarely.
The amended Act also provides for setting up machinery- within the establishment for prompt
handling of grievances, but this amendment has yet to be given effect to. Over thirty years back,
National Commission on Labour recommended setting up of more independent machinery in
the form of Industrial Relations Commissions, and this recommendation is still under the
consideration of the Government. In view of all this it is no wonder that union and management
relations in the country are still brittle, and arrangements for settlement of disputes need
considerable improvement.

Self Assessment

Fill in the blanks:
10. The main duty of a ................................. Officer is to investigate and promote settlement of
disputes.
11. A Board of Conciliation can only try to bring about a .................................
12. The Boards of conciliation are rarely appointed by the ................................. these days.

10.5 Measures for Prevention of Conflicts and Disputes;
Penalties under the Act

The Act not only provides machinery for investigation and settlement of disputes, but also some
measures for the containment and prevention of conflicts and disputes. Important preventive
measures provided under the Act are:

1. Setting up of Works Committees in establishments employing 100 or more persons, with
equal number of representatives of workers and management for endeavouring to compose
any differences of opinion in matters of common interest, and thereby promote measure for
securing and preserving amity and cordial relations between the employer and workmen. The
representatives of workmen will not be less than the representatives of employers and such
representatives of workmen will be from among the workmen engaged in the establishment
and in consultation with registered trade unions. The decision of the works committee carries
weight but is not conclusive and binding; its duties is to smooth away friction then to alter
conditions of services, etc. (Section 3).
2. Prohibition of changes in the conditions of service in respect of matters laid down in the
Fourth Schedule of the Act (a) without giving notice to the workmen affected by such changes;
and (b) within 21 days of giving such notice. No such prior notice is required in case of (a)
Changes affected as a result of any award or settlement; (b) Employees governed by Government
rules and regulations.
3. Prohibition of strikes and lock outs in a public utility service (a) without giving notice to other
party within six weeks before striking or locking out, (b) within 14 days of giving such notice,
(c) before the expiry, of the date of strike or lock-out specified in the notice and during the

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