Page 208 - DMGT306_MERCANTILE_LAWS_II

Unit 10: Industrial Disputes Act, 1947

Notes

Task As a Manager, what measures will you take in order to prevent Conflicts and
Disputes in your organisation.

Self Assessment

State whether the following statements are true or false:
13. Setting up of Works Committees in establishments employing 200 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.
14. Employees and unions from committing unfair labour practices mentioned in the Schedule
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
Contd....

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