Unit 2: Industrial conflict & dispute settlement
Industrial Relations and Labour Laws notes · PTU syllabus (BBA 531-18)
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Unit summary
When management and workers disagree, disputes arise. This unit covers the scope and manifestations of industrial conflict, legal provisions on strikes, lockouts, lay-off and retrenchment, and the machinery for settling disputes — conciliation, adjudication and arbitration.
After this unit you can
- Explain the causes and forms of industrial conflict
- Explain the legal provisions on strikes, lockouts, lay-off and retrenchment
- Describe the conciliation procedure
- Compare adjudication and arbitration
PTU syllabus topics
- Scope and manifestation of conflict
- provisions on strikes
- lockouts
- layoff and retrenchment
- concept and types of dispute settlement
- conciliation procedure
- adjudication and arbitration
- 1Collective bargaining
Direct talks
- 2Conciliation
Conciliation officer or board
- 3Voluntary arbitration
Agreed arbitrator decides
- 4Adjudication
Labour court, tribunal, national tribunal
Topic 1
Industrial conflict
An industrial dispute (Industrial Disputes Act, 1947) is any dispute between employers and workers connected with employment, non-employment, terms of employment or conditions of labour. Causes: wages and bonus, working conditions, retrenchment, discipline, union recognition, and political factors.
Strike
Workers stop work collectively
Lockout
Employer closes the workplace
Gherao
Workers surround managers
Go-slow and work-to-rule
Deliberately reduced output
Absenteeism and turnover
Unorganised conflict
Topic 2
Strikes, lockouts, lay-off and retrenchment
| Term | Meaning and key rule |
|---|---|
| Strike | Cessation of work by workers acting together; in public utility services needs 6 weeks' notice (14 days' minimum) |
| Lockout | Temporary closing of the workplace by the employer; similar notice rules |
| Lay-off | Temporary inability to give work (shortage of power, raw material); compensation of 50% of wages |
| Retrenchment | Termination of surplus workers; one month's notice and 15 days' wages per year of service; last come, first go |
Illegal strikes and lockouts are those in breach of notice rules or during pending proceedings.
Topic 3
Machinery for dispute settlement
- 1Bipartite negotiation
Collective bargaining
- 2Conciliation
Conciliation officer or board helps parties agree
- 3Court of inquiry
Investigates and reports
- 4Voluntary arbitration
An arbitrator chosen by both parties decides
- 5Adjudication
Labour court, industrial tribunal, national tribunal
Conciliation procedure: the conciliation officer holds meetings, tries to bring the parties to a settlement and, if successful, a settlement is signed; if not, a failure report is sent to the government, which may refer the dispute to adjudication.
Topic 4
Adjudication vs arbitration
Referred by
Government (compulsory)
Both parties voluntarily
Decided by
Labour court or tribunal
Arbitrator chosen by the parties
Nature
Judicial, binding award
Binding award, less formal
Speed
Slower
Usually faster
Key terms
- Industrial dispute
- A dispute between employers and workers about employment
- Lockout
- Closing the workplace by an employer
- Retrenchment
- Termination of surplus workers
- Conciliation
- A third party helping disputing parties agree
- Adjudication
- Compulsory settlement by labour courts or tribunals
Quick revision
- Forms: strike, lockout, gherao, go-slow, absenteeism.
- Lay-off compensation 50%; retrenchment 15 days' wages per year of service.
- Machinery: negotiation → conciliation → arbitration → adjudication.
- Adjudication compulsory; arbitration voluntary.
Important exam questions
Practice questions written to the PTU exam pattern for this unit's syllabus: short answers (Section A style) and long answers (Sections B and C style).
Short-answer questions
- Q1.Define an industrial dispute.
- Q2.Differentiate between a strike and a lockout.
- Q3.Differentiate between lay-off and retrenchment.
- Q4.What is conciliation?
- Q5.Differentiate between adjudication and arbitration.
Long-answer questions
- Q1.Explain the causes and forms of industrial conflict.
- Q2.Explain the provisions of the Industrial Disputes Act on strikes, lockouts, lay-off and retrenchment.
- Q3.Explain the machinery for settlement of industrial disputes in India.
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