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Unit 7: Dispute Resolution and Industrial Harmony

8. Follow-up is necessary to determine whether the grievance, as perceived by the employee, Notes
has been resolved to the satisfaction of the aggrieved. If it reveals that the grievance was
handled unsatisfactorily, then the management may have to review and redefine the
problem and find a solution a fresh.

7.8.3 Recommendations of the National Commission on Labour

The First National Commission on Labour was constituted on 24.12.1966 which submitted its
report in August, 1969 after detailed examination of all aspects of labour problems, both in the
organised and unorganised sector. The need for setting up of the Second National Commission
on Labour had been felt for the following reasons:
1. During the period of three decades since setting up of the First National Commission on
Labour, there has been an increase in number of labour force etc. because of the pace of
industrialisation and urbanisation.
2. After the implementation of new economic policy in 1991, changes have taken place in the
economic environment of the country which have in turn brought about radical changes
in the domestic industrial climate and labour market.

3. Changes have occurred at the work places, changes in the industry and character of
employment, changes in hours of work and overall change in the scenario of industrial
relations. These changes have resulted in certain uncertainties in the labour market
requiring a new look to the labour laws.
In the light of the above position, the government has decided on 24.12.1998 to set up the Second
National Commission on Labour so that a high powered body could dispassionately look into
these aspects and suggest appropriate changes in the labour legislation/labour policy.

The National Commission on Labour is a high powered body comprising of a Chairman and 02
full time members. In addition, there are 07 part-time members representing government,
industry and workers. The Commission is required to give its final report in 24 months from the
date of its constitution.
The National Commission on Labour has made certain important and path-breaking
recommendations in the context of the review of labour laws.
1. The Commission recommends a specific provision in the Trade Union Act to enable
workers in the unorganised sector to form trade unions and register them. It has
recommended a waiver of the condition of employer-employee relationship and also of
the 10 per cent membership in the establishment. This is a path-breaking recommendation
that can pave the way for bringing into the fold of the labour movement 92 per cent of the
workers in the unorganised sector.
2. The Commission has recommended using the check-off system to determine the negotiating
agent in an establishment. Moreover, by fixing 66 per cent membership for entitlement as
negotiating agent, the panel has not favoured the principle of simple majority but has
opted for two-thirds majority. If the condition is not satisfied, a composite negotiating
agent from among representatives of unions with support of more than 25 per cent has
been recommended.

3. The Commission has recommended a three-tier system of Lok Adalats, Labour Courts
and the Labour Relation Commission. While the Lok Adalats and Labour Courts deal
with individual grievances and complaints, the Labour Relations Commission has been
empowered to deal with both individual problems and those of collective bargaining a
settlement cannot be reached through bilateral negotiations.

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