Steps to prevent industrial disputes in India

[luttu]

How can industrial disputes be prevented in India?

[aarthym]

In order to prevent industrial disputes, the following measures have been taken in India:
1. Payment of Bonus Act—The payment of Bonus Act was passed in 1965 which has been amended in 1972 and 1980. The Act covers workers of Railways, Posts and Telegraphs, certain defence establishments, the EPF and ES1C and other organisations in public sector undertakings and banks. The Act provides for payment of minimum bonus at 8.33% and maximum bonus at 20% of wages subject to a minimum of Rs. 100.
2. Wage Boards-Wages and allowances are the second major issue in industrial disputes. The Government of India has set up Wage Boards for various industries such as cotton, textile, sugar, cement, jute, iron and steel etc. The main function of wage boards is to fix the fair wage in various industries. A separate wage board is set up for each industry and upto now 25 wage boards in various industries have been established.
3. Works Committees—Every industrial undertaking employing 100 or more workers is under an obligation to set up a works committee consisting of representatives of employer and employees. The main purpose of such works committees is to promote the industrial relations.
4. Joint Management Councils—Just to make a start in labour participation in management, the Government suggested in its industrial resolution 1956 to set up joint management councils. This step remained ineffective and not much headway is made in this direction.
5. Industrial Truce Resolution—A joint meeting of the central organisation of employers and employees adopted an Industrial Truce Resolution in November 1962. The resolution also laid down steps for promoting industrial peace, production, price stability and savings. It emphasised the settlement of disputes through voluntary arbitration.
6. Code of Discipline—The Indian Labour Conference in 1958 evolved a code of discipline which was ratified by the national trade union and employers organisations. Under this code, both the parties voluntarily agree to maintain and create an atmosphere of mutual trust and cooperation in the factory and to settle all the disputes and grievances by mutual negotiation, conciliation and voluntary arbitration and avoid direct action.
7. National arbitration promotion board—The truce resolution 1962 and the code of discipline as evolved in 1958 recognised the principle of voluntary arbitration. It was agreed that any dispute would be referred to voluntary arbitration if conciliation efforts fail. The Government of India took note of the intention of both the industrial partners and set up the National Arbitration Promotion Board in July 1967 to promote voluntary arbitration to settle industrial disputes. The Board comprises representatives of the employees' and employers' organisations, Public undertakings and the Central and State Governments: The Board attempts to ensure that employers and workers take greater recourse to the voluntary approach to settle industrial disputes.
8. Standing Orders—To avoid frictions amongst employer and workmen over the terms of employment. Government enacted the Industrial Employment (Standing Order) Act 1946. The object of the act is to require employers in the establishment to defuse with sufficient precision, the conditions of employment under him and to make them known to all workers. Such conditions include conditions of recruitment, discharge, disciplinary action, holiday, leave etc. of the workers. This act applies to all establishments employing 100 or more workers. In 1961 the act was made applicable to some other establishments employing less than 100 workers at the instance of state Governments. In 1963, it was made applicable to manufacturing concerns employing 10 workers (where process is carried on with the aid of power) or 20 workers (without the aid of power).
Under the Act, each employer is to make their standing orders certify from the certifying officer lo make them effective in the establishment. Labour Commissioner or Regional Labour Commissioner or any other officer appointed for this purpose may be appointed for this purpose certifying officer under the Act.
The Act deals with certain model standing orders prescribing certain acts to constitute misconduct on the part of workers which are denied by the Act. Thus the main object of the Act is to prevent the dispute as soon as it arises by framing model rules for maintaining discipline and better relations.