Authorities Part I

Module III
AUTHORITIES UNDER INDUSTRIAL DISPUTES ACT 1947

Introduction
 The main object of the Industrial Disputes Act is investigation and settlement of
industrial disputes. With that object in view various authorities have been created
by the Act. The Works Committee, Conciliation Officer, Board of Conciliation and
Courts of Inquiry endeavour to settle the difference before it may be adjudicated
upon by the Labour Court or the Industrial Tribunal. They all aim at amicable
settlement of an industrial dispute.
The various methods of settlement of industrial disputes, as are available and
used in varying degree, are discussed to the extent felt necessary. With a view to
utilizing these techniques of settlement, the I.D. Act provides different types of
settlement machinery aimed at preventing, wherever possible, investigating and
settling of the disputes.

Works Committees
 To facilitate bilateral negotiations or joint consultation on all matters of common

concern, Sec.3 of the I.D.Act provides for the constitution of works committees,
consisting of representative of employer and workmen in equal numbers.
 As per this provision, the appropriate Government may by general or special
order require an employer of an industrial establishment in which one hundred
or more workmen are employed, or have been employed on any day in the
preceding twelve months, to constitute a Works Committee. The representatives
of the workmen shall be chosen, in consultation with their trade unions, if any,
registered under the Trade Unions Act, 1926.
Contd.
 Section 3 (2) lays down: “It shall be the duty of works committee to promote
measures for securing and preserving amity and good relations between the
employer and workmen and, to that end, to comment upon matters of their
common interests or concern and endeavour to compose any material
difference of opinion in respect of such matters.”
 Of the machinery provided under the I.D.Act, the works Committee is the only
machinery which is aimed at ensuring bilateral negotiations between
employers’ and ‘workers’ representatives with a view to prevent the disputes
through a constant dialogue.
 Although the range of subjects it can discuss is very wide, the scope of its
powers is confined to only two things, i.e.,
 (i) “to comment on matters of common interest” and (ii) “to endeavour to
compose any material differences of opinion.
 Neither “comment” nor “endeavour”, the words used in the statute, could
mean, “to decide “ any disputes on these matters.
Contd.
 The Supreme Court in Northbrook Jute Co. Ltd. v. Their Workmen,(1960)/. L. L.
J 580 (583) S.C.115pronouncing on the powers of the Works Committee,
observed: The languages used by the legislature makes it clear that the Works
Committee was not intended to supplant or supersede the unions for the
purpose of collective bargaining; they are not authorized to consider real or
substantive changes in the conditions of service; their task is only to smooth
away friction that might arise between the workmen and management in day
to day work”.
 Therefore, the Works committees are only deliberating bodies or at best
recommendatory bodies, but not decision-making bodies. The
recommendations made by the Works Committee may form the basis for the
collective bargaining negotiations between the employer and trade unions. The
logic of such Committees at a time when the trade union movement was in its
inception was understandable. After the trade union movement has come to
stay, the Works committees have not merely become superfluous, but the trade
unions have been considering them as their rivals.
 Works committees are now virtually non-functional and in many industries
they are non-existent.

Conciliation
 Conciliation or Mediation are procedures whereby a third party provides

assistance to the parties in the course of negotiations, or when
negotiations have reached an impasse with a view to helping them to
reach an agreement.
 Conciliation as a method of settlement of industrial disputes is widely
prevalent in almost all countries. This is the second agency or authority

created by proceedings.
 The appropriate Government has been authorized to appoint one or
more Conciliation Officers for mediating and promoting the settlement of
industrial disputes. A Conciliation Officer can be appointed either for a
specified area or for a specified industry or industries.
 In order to bring about a right settlement of a dispute, a Conciliation
Officer is given wide discretion. Whereas, it is obligatory on the parties
involved in the dispute to appear before him, is summoned, but they are
not bound to accept his point of view.
CONCILIATION OFFICER (SECTION 4)
 The Appropriate Government may by notification in the Official Gazette, appoint
conciliation officers. These officers are charged with the duty of mediating in and
promoting the settlement of industrial disputes. The Appropriate Government may
appoint one or more conciliation officers, as it thinks fit. A conciliation officer may
be appointed for a specified area or for specified industries in a specified area, or
for one or more specified industries. The appointment may be made either
permanently or for a limited period. The jurisdiction, powers and other matters in
respect of the conciliation officer shall be published in the Official Gazette.
Duties of Conciliation Officers:
 A Conciliation Officer may take appropriate steps for inducing the parties to a fair and
amicable settlement of the dispute. If a settlement is arrived at during conciliation
proceedings, he must send a copy of the report and the memorandum of the settlement
signed by the parties to appropriate Government or an officer authorized by it.
 In case no settlement is arrived at, he is required to send to appropriate Government,
full report of the steps taken by him to resolve the dispute, and the reasons on account
of which a settlement could not be arrived at.
 The Conciliation Officer is required to submit his report within fourteen days of the
commencement of the conciliation proceedings, but the time for the submission of the
report may be extended further on the written request of the parties to the dispute.
Where a settlement is not reached, the appropriate Government, after considering the
report of the conciliation officer, may refer the dispute to a Board of Conciliation or
Labour Court or Industrial Tribunal or National Tribunal as the case may be.
Board of Conciliation
 Section 5 of the Industrial Disputes Act, 1947 provides for creation of Board of
Conciliation which is simply an extension of conciliation officers work.
 Unlike a Conciliation Officer, the board may not be a permanent body and can be
set up as the occasion arises. It comprises of two or four members representing
parties to the dispute in equal numbers and a chairman who has to be an
“independent person”.
 The Board has the status of a Civil Court and can issue summons and administer
oaths.
 The members representing the parties are to be appointed on the
recommendations of the parties concerned, but in case of their failure to make
such recommendations, the appropriate Government must appoint on its own,
persons representing the parties.
References of Disputes to Board of Conciliation
 Where the appropriate Government is of the opinion that any industrial dispute
exist or is apprehended, it may at any time, by order in writing, refer the dispute
to a Board of Conciliation for promoting settlement.
 In case the parties to an industrial dispute make an application in the prescribed
manner whether jointly or separately, for a reference of the dispute to a Board of
Conciliation, the appropriate Government is required. On being satisfied that the
persons making such an application represent the majority of each party to make
the reference accordingly.
 Where the dispute is referred to the Board, the appropriate Government may
prohibit the continuance of any strike or lock-out in connection with such dispute
which may be in existence on the date of reference.
Duties and Powers of the Board
 When a dispute has been referred to the Board of Conciliation, it may take
suitable steps to induce the parties to come to a fair and amicable settlement. If
settlement is arrived at, the board is required to send a report and a
memorandum of the settlement signed by the parties to the disputes to the
appropriate Government.
 If no such settlement is arrived at, the Board is required to the appropriate
Government a full report setting forth the proceedings and steps taken by the
board for ascertaining the facts and circumstances relating to the disputes and
bringing about a settlement and the reasons on account of which a settlement
could not be arrived at, and also its recommendations for the determination of
the dispute.
Contd.
 The board is required to submit report within two months of the date of the
reference of the dispute or within shorter period as determined by the
appropriate Government.
 The appropriate Government may extend the time of the submission of the report
to a period of not exceeding two months in the aggregate. The date of the
submission of the report may also be extend to such date as may be agreed on in
writing by all parties to the dispute.
 The report of the Board of Conciliation writing and is to be signed by all members
of the board but any member may record any minute of dissent from a report or
from any of its recommendation. Every report together with any minute of dissent
has to be published by the appropriate Government with in a period of 30 days
from the date of its receipt.
Period of Operation:
 A settlement comes into operation on the date agreed upon by the parties to
the dispute and in case no date is agreed upon, the date on which the
memorandum of the settlement is signed by the parties to the dispute, a
settlement is binding for such period as is agreed upon, for a period of six
months from the date which the memorandum of settlement is signed by the
parties to the dispute.
Settlement is Binding
 A settlement arrived at in course of conciliation proceedings is binding on
 i. all parties to the industrial disputes.
 ii. all other parties summoned to appear in the proceedings as parties to the
dispute.
 iii. where such parties is employer ,his heirs and successors of the establishment
to which the dispute relates.
 iv. where such parties composed of workmen all persons who were employed in
the establishment or part of the establishment, as the case may be to which the
dispute relates.

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Module III

AUTHORITIES UNDER INDUSTRIAL DISPUTES ACT 1947

The various methods of settlement of industrial disputes, as are available and

settlement machinery aimed at preventing, wherever possible, investigating and

settling of the disputes.

 To facilitate bilateral negotiations or joint consultation on all matters of common

they are non-existent.

 Conciliation or Mediation are procedures whereby a third party provides

prevalent in almost all countries. This is the second agency or authority

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