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Unit 7: Dispute Resolution and Industrial Harmony

Settlements In and Outside Conciliation Notes

A settlement arrived at in proceedings under the Act is binding on all the parties to the dispute.
It is also binding on other parties if they are summoned to appear in conciliation proceedings as
parties to the dispute. In case of employer such a settlement is also binding on his heirs, successors,
assigns in respect of establishment to which these dispute relate. In regard to employees, it is
binding on all persons who were employed in establishment or part of the establishment to
which the dispute relates on the date of dispute, and to all persons who subsequently become
employed in that establishment.
A settlement arrived at by agreement between the management and workers or their unions
outside conciliation proceedings is binding only on the parties to the agreement (Section 18).

Board of Conciliation

Board of Conciliation is a higher forum which is constituted for a specific dispute. It is not a
permanent institution like the Conciliation Officer. The Government may, as occasion arises,
constitute a Board of Conciliation for settlement of an industrial dispute with an independent
chairman and equal representatives of the parties concerned as its members. The chairman, who
is appointed by the Government, is to be a person unconnected with the dispute or with any
industry directly affected by such dispute. Other members are to be appointed on the
recommendations of the parties concerned, and if any party fails to make recommendation, the
Government shall appoint such persons as it thinks fit to represent that party. The Board cannot
admit a dispute in conciliation on its own. It can act only when reference is made to it by the
Government (Section 5).
The Boards of Conciliation are rarely appointed by the Government these days. This is more so
when disputes relate to a whole industry, or important issues.

7.4.2 Voluntary Arbitration

When Conciliation Officer or Board of Conciliation fails to resolve conflict/dispute, parties can
be advised to agree to voluntary arbitration for settling their dispute. For settlement of differences
or conflicts between two parties, arbitration is an age old practice in India. The Panchayat
system is based on this concept. In the industrial sphere voluntary arbitration originated at
Ahmedabad in the textile industry under the influence of Mahatma Gandhi. Provision for it was
made under the Bombay Industrial Relations Act by the Bombay Government along with the
provision for adjudication. Since this was fairly popular in the Bombay region in the 40s and 50s.
In 1956 the Government decided to place voluntary arbitration as one of the measures for
settlement of a dispute through third party intervention under the law. Sec. 10A was added to
the Industrial Disputes Act, and it was enforced from 10th March, 1957.

Reference of Disputes for Arbitration

Where a dispute exists or is apprehended. It can be referred for arbitration if the parties to the
dispute agree to do so by submitting a written agreement to that effect, mentioning the person
acceptable to them as arbitrator and also the issues to be decided in arbitration proceedings, to
the Government and the Conciliation Officer concerned before it is referred for adjudication to
Labour Court or Tribunal. The Agreement must be signed by both the parties. Both under Secs,
10A and 10(2) reference is obligatory.

Arbitration Award is enforceable in the same manner as the adjudication award of Labour Court
or Industrial Tribunal.

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