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Mercantile Laws – II

Notes
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

10.6 Summary

 An industrial dispute may be defined as a conflict or difference of opinion between
management and workers on the terms of employment.
 It is a disagreement between an employer and employees’ representative; usually a trade
union, over pay and other working conditions and can result in industrial actions.

 When an industrial dispute occurs, both the parties, that is the management and the
workmen, try to pressurize each other.

 The management may resort to lockouts while the workers may resort to strikes, picketing
or gheraos.
 The object of the Act is to make provisions for investigation and settlement of industrial
disputes.
 The purpose is to bring the conflicts between employer and employees to an amicable
settlement.
 The Act provides machinery for settlement of disputes, if dispute cannot be solved through
collective bargaining.

 Section 10, Industrial Disputes Act, 1947 provides that where the appropriate Government
is of opinion that any industrial dispute exists or is apprehended, it may at any time; by
order in writing refer the dispute for redressal before the competent Jurisdictional Tribunals
or as provided in the Act.
 Section 10A, Industrial Disputes Act, 1947 provides that where any industrial dispute
exists or is apprehended and the employer and the workmen agree to refer the dispute to
arbitration, they may at any time before the dispute has been referred to a Labour Court
or Tribunal or National Tribunal, by a written agreement, refer the dispute to arbitration
and the reference shall be to such persons (including the presidency officer of a Labour
Court or Tribunal or National Tribunal) as an arbitrator as may be specified in the
arbitration agreement.

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