Q: I am writing to you on behalf of a group of employees of a nationalised bank. Certain disputes have arisen between us and the management in relation to certain terms and conditions of our employment and we are told that the same constitute industrial disputes and will have to be adjudicated by the labour court. But proceedings in the labour court take very long to conclude. What is the procedure that is normally followed when an industrial dispute arises? Is there no other way of resolving such disputes? Can such disputes not be resolved through arbitration?
Arup Das, Calcutta
A: When an industrial dispute arises, the appropriate government (defined in Section 2 of the Industrial Disputes Act (ID Act), 1947) may refer the dispute to a board of conciliation constituted under the ID Act for promoting settlement of such dispute or may refer any matter connected with the dispute to a court of enquiry constituted under the Act or may refer the dispute to a labour court or an industrial tribunal for adjudication depending on the dispute. This is the normal procedure as indicated in Section 10 of the ID Act. Your apprehension that proceedngs before the labour courts or industrial tribunals take a long time to conclude is not entirely baseless, but you really do not have a choice unless you can persuade your management to go to arbitration by mutual agreement.
Section 10 of the ID Act provides that the employer and the workmen may agree to refer an industrial dispute to arbitration of agreed person(s). Such agreement must be in writing. But this must be done before such dispute is referred to a labour court or tribunal under Section 10 of the ID Act. The arbitrators shall investigate the dispute and submit to the appropriate government the arbitration award.
The provisions of the Arbitration and Conciliation Act, 1996 shall not apply to arbitrations under Section 10 A of the ID Act. The arbitrators may formulate their own procedure which must however comply with the principles of natural justice. Upon receipt of the arbitration award the appropriate government shall publish the award in a manner it thinks fit within a month thereof and such award shall become enforceable on the expiry of 30 days from the date of its publication under Section 18 of the Act subject to certain exceptions.
An arbitration award which has become enforceable shall be binding on the concerned parties. Under Section 29 of the Act, any person who commits breach of any term of an award which is binding on him, shall be punishable with imprisonment for a maximum term of six months or with fine or with both. However, arbitration may not necessarily be a more expeditious remedy than a labour court or industrial tribunal proceedings.
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