Understanding Conciliation, Arbitration, and Adjudication in the ID Act: When Does Arbitration Apply?

Dear All,

I would like to know details about the Conciliation Procedure, Arbitration, and Adjudication methods and how they will flow if any issues arise under the ID Act.

I know that when a dispute arises in the industry, first, we try to solve this with the help of Preventative Methods (such as Trade Union, Joint Committee, Rules & Regulations). If we fail to resolve the issue here, it will be moved to a Conciliation Officer who will try to solve it in their way. If the Conciliation Officer fails, then under section 10 of the ID Act, it is moved to Adjudication (Labour Court, Industrial Tribunal, National Tribunal). Now, I just want to know when the Arbitration method actually takes place in the ID Act of 1947 to resolve any industrial issues.

Trade Unions in the Mining Industry

My second question is, in any Mining industry (which comes under the Central Sphere), is a Trade Union mandatory?

Please clarify the same.

Madhu Sir: Please put your special comment here.

Regards

In simple words, "arbitration" can be defined as a formal process of settling a dispute or disagreement by somebody who is not involved or connected with the issues to be settled. The Industrial Disputes Act of 1947 recognizes this as one of the formal methods of dispute resolution under the Act and included under Section 10-A by the Amending Act of 1956. Here, the dispute is referred by the Appropriate Government for resolution through the process of arbitration at the joint request of the employer and workmen.

Legal Requirements for Arbitration

The legal requirements are:
1. There should be an industrial dispute either existing or apprehended.
2. The reference to arbitration should be by a written agreement entered into between the persons representing the majority of each party.
3. The reference should be made before a reference under Section 10 of the Act.
4. The names of the person or persons chosen to act as arbitrator should be specified in the agreement; the arbitrator or arbitrators may be private persons or even officials, including Presiding Officers of Labour Courts or Tribunals as per the choice of the parties.

Upon receipt of a reference for arbitration, the Appropriate Government should issue a notification within one month. Those on each side who are not parties to the arbitration agreement should also be given the opportunity to present their views before the Arbitrator. Then the Arbitrator or Arbitrators investigate the dispute and submit their decision or award under Section 10-A of the Act.

Sorry, your question is not clear to me. Irrespective of the industry or its sphere, there is no statutory compulsion for the existence of a trade union. But, once established, the management should not try directly or indirectly to curb it in any manner.

Adjudication and Conciliation in Industrial Disputes

It is not necessary that adjudication should be done only after conciliation. The Government can refer the Industrial Dispute (ID) for adjudication when an ID is apprehended. In the case of termination of employment, even a reference by the Government is not required for adjudication.

Regards,
Varghese Mathew

Thank you, sir, for your reply. Now, I understand about arbitration.

Actually, during one of my interviews, the interviewer asked me whether the existence of a trade union is mandatory in the Mining division. I replied in alignment with what you have written above. However, they informed me that a trade union is mandatory for the mining industry.

Thank you all for your kind support.