The Industrial Disputes Act, 1947 refrains generally the Trade Unions from going on strike. Its focal thrust is on more efficient alternative mechanisms for dispute settlement, such as, reference to Industrial Tribunals, compulsory adjudication, conciliation, etc. In fact the very intention behind its enactment as illustrated in the Statement of Objects and Reasons, was to overcome the defect in the Trade Unions Act, 1926, which was, that it imposed restraints on the right to strike but did not provide for alternative settlement of the disputes.
The Statement further reads as under: "The power to refer disputes to Industrial Tribunals and enforce their awards is an essential corollary to the obligation that lies on the Government to secure conclusive determination of the disputes with a view to redressing the legitimate grievances of the parties thereto, such obligation arising from the imposition of restraints on the rights of strike and lock-out, which must remain inviolate, except where considerations of public interest override such right".
Thus, the concept of alternative settlement mechanisms in industrial disputes was statutorily ushered in the Act with a view to providing a forum and compelling parties to resort to the forum for arbitration so as to avoid confrontation and dislocation in industry, that a developing country like India can ill-afford. Peace and harmony in industry and uninterrupted production being the demand of the time, it was considered wise to arm the Government with the power to compel the parties to resort to arbitration and a necessary corollary to avoid confrontation and trial of strength which are considered wasteful from national and public interest point of view (xxii).
Sections 4, 5, 6, 7, 7A, 7B, 9, 10 and 10A of the Industrial Disputes Act, 1947 provide alternative measures for settlement of industrial disputes elaborately. Section 4 (xxiii) of the Act provides for a diplomatic procedure which endeavours to settle a controversy by assisting parties to reach a voluntary agreement and the ultimate decision is made by the parties themselves (xxiv). The conciliation machinery provided for in the Act, can take note of the existing as well as apprehended disputes either on its own or on being approached by either of the parties. Since the final decision is with the parties themselves, they cannot complain that their practical freedom has been impaired or that they have been forced into a settlement which is unacceptable to them (xxv).
Section 6 provides for the constitution of a Court of Inquiry, that enquires into the merits of the issues and prepares a report on them that is "intended to serve as the focus of public opinion and of pressure from Government authorities" (xxvi). Section 10 A provides for voluntary arbitration. Voluntary arbitration seems to be the best method for settlement of all types of industrial disputes. The disputes can be resolved speedily and is less formal than trials. The greatest advantage of arbitration is that there is no right of appeal, review or writ petition. Besides, it may well reduce a company's litigation costs and its potential exposure to ruinous liability apart from redeeming the workmen from frustration (xxvii). Apart from these, Sections 7, 7A and 7B deal with the constitution of adjudicatory authorities, viz., Labour Courts, Tribunals or National Tribunals, respectively.
It is submitted that these alternative machinery for settlement of industrial disputes are proving to be highly effective. Report of the National Commission on Labour (xxviii), according to which "during the years 1959-66, out of the total disputes handled by each year, the percentage of settlements had varied between 57 and 83. The remaining disputes, it is reported, were settled mutually referred to voluntary arbitration or arbitration under the Act or to adjudication or were not pursued by the parties. During the period 1965-67, the percentage of settlements reached in Bihar ranged from 51 to 86, in Assam from 65.5 to 92.3. In U.P., Punjab and Delhi, in the year 1966, the percentage of disputes settled was 60, whereas in Kerala it ranged around 80 per cent. The statistics for settlement of disputes by alternative mechanism are greater those for that by strike where the disputes are mainly left unresolved.
The provision of such an elaborate and effective mechanism for settlement of industrial disputes, along with a reading of the Statement of Objects and Reasons, is a definitive indication of the fact that the statute enshrines a preference to these alternative mechanisms over strikes.
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