Law and You > Labour Laws > The Industrial Relations Code, 2020 > Bipartite Forums under the Industrial Relations Code, 2020
The Industrial Relations Code, IRC 2020 has replaced 3 Acts namely: the Trade Unions Act, 1926; the Industrial Employment (Standing Orders) Act, 1946; and the Industrial Disputes Act, 1947. The code streamlines the laws related to trade unions, employment conditions for industries, and a comprehensive handling of industrial disputes. The Code provides a broader framework to protect the rights of workers to make unions, reduce the friction between employers, and workers and provide regulations for the settlement of industrial disputes. There is also a higher emphasis on building a strong employer-employee relationship, creating better working conditions, collective bargaining, and re-skilling employees. In this article we shall study provision for bipartite forums under the Industrial Relations Code, 2020.
Objectives of the Code:
Following are the objectives of the Code:
- To consolidate and amend the laws relating to Trade Unions, conditions of employment in industrial establishment or undertaking
- To investigate and to obtain speedy settlement of industrial disputes and for matters connected therewith or incidental thereto
Modernization, the need for quality, and increased productivity are important for competing in the international market. Modernization may cause the introduction of modern automatic machinery and may require high skilled labours. Thus modernization results in the displacement, laying off, and retrenchment of workers. Such condition results in hostility between the workers and the management. In such a case, management and workers must come together and use the concept of collective bargaining. Collective agreements provide the climate for the smooth working of the business.
Bipartite Forums under the Industrial Relations Code, 2020:
Chapter II containing Ss. 3 and 4 of the Code deals with bipartite forums like works committee and grievance redressal committee.
Works Committee:
Section 3 of the Industrial Relations Code, 2020 gives provisions regarding works committee.
Formation of Works Committee:
Section 3(1) of the Industrial Disputes Code, 2020 provides for Works Committee. The industrial establishment in which one hundred or more workmen are employed or have been employed on any day in the preceding twelve months should constitute the works committee. The appropriate Government by general or special order, order the employer to constitute a Works Committee in the prescribed manner. Works Committee must consist of representatives of employer and workmen engaged in the establishment. The number of members in the committee should be. The number of representatives of workmen on the committee shall not be less than the number of representatives of the employer.
Under Section 99 of the Code the appropriate Government can make rules for constitution of Works Committee and choosing of representatives of employer and workers engaged in the establishment under section 3.
Section 3(2) of the Industrial Relations Code, 2020 provides for selection of members of Works Committee. The representatives of the workmen shall be chosen in the prescribed manner from among the workmen engaged in the establishment and in consultation with their trade union, if any, registered under S. 9 of this Code.
Duties of Works Committee:
According to S. 3(3) of the Code, the duties of works committee are as follows:
- to promote measures for securing and preserving amity and good relations between the employer and the workmen;
- to comment upon the matters of their common interest; and
- to endeavour, to compose any material difference of opinion in respect of such matter.
In Kemp & Co. Ltd. v. Workmen, (1955) IILLJ 481 Mad case, the Court observed that the institution of Works Committee has been provided in the rules framed under the Industrial Disputes Act, in order to look after the welfare and interest of the workman,
In the Metal Box Company of India Ltd. v. their Workmen, 1969 AIR 612 case, the Court observed that agreed solutions between the Works Committee and the management are always entitled to great weight and should not be readily disturbed, particularly in matters like classification, grades and scales which are peculiarly within the personal knowledge of the members of the Works Committee.
Difficulties in Working of Works Committee:
- lack of appreciation on the part of both the parties;
- illiteracy and lack of understanding amongst the workers;
- disinclination of the workers’ representatives to participate in the deliberations of the
committee; and - works representatives became unpopular because of their failure in satisfying the high
expectation of the workers.
Grievance Redressal Committee:
Section 4 of the Industrial Relations Code, 2020 gives provisions regarding Grievance Redressal Committee.
Formation of Grievance Redressal Committee:
- Every industrial establishment employing twenty or more workers shall have one or more Grievance Redressal Committees for resolution of disputes arising out of individual grievances.
- The Grievance Redressal Committee shall consist of equal number of members representing the employer and the workers to be chosen in such manner as may be prescribed.
- The chairperson of the Grievance Redressal Committee shall be selected from among persons representing the employer and the workers alternatively on rotational basis every year.
- The total number of members of the Grievance Redressal Committee shall not exceed ten: Provided that there shall be adequate representation of women workers in the Grievance Redressal Committee and such representation shall not be less than the proportion of women workers to the total workers employed in the industrial establishment.
Working of Grievance Redressal Committee:
- An application in respect of any dispute referred to in sub-section (1) may be filed before the Grievance Redressal Committee by any aggrieved worker in such manner as may be prescribed within one year from the date on which the cause of action of such dispute arises.
- The Grievance Redressal Committee may complete its proceedings within thirty days of receipt of the application under sub-section (5).
- The decision of the Grievance Redressal Committee on any application filed under sub-section (5) shall be made on the basis of majority view of the Committee, provided more than half of the members representing the workers have agreed to such decision, otherwise it shall be deemed that no decision could be arrived at by the Committee.
Appeal Against Decision of Grievance Redressal Committee:
- The worker who is aggrieved by the decision of the Grievance Redressal Committee or whose grievance is not resolved in the said Committee within the period specified in sub-section (6), may, within a period of sixty days from the date of the decision of the Grievance Redressal Committee or from the date on which the period specified in sub-section (6) expires, as the case may be, file an application for the conciliation of such grievance to the conciliation officer through the Trade Union, of which he is a member, in such manner as may be prescribed.
- Where any employer discharges, dismisses, retrenches, or otherwise terminates the services of an individual worker, any dispute or difference between that worker and his employer connected with, or arising out of, such discharge, dismissal, retrenchment or termination shall be deemed to be an industrial dispute notwithstanding that no other worker nor any Trade Union is a party to the dispute.
- Notwithstanding anything contained in this section or section 53, any worker as is specified in sub-section (5) may, make an application directly to the Tribunal for adjudication of the dispute referred to therein after the expiry of forty-five days from the date he has made the application to the conciliation officer of the appropriate Government for conciliation of the dispute, and on receipt of such application the Tribunal shall have powers and jurisdiction to adjudicate upon the dispute, as the Tribunal has in respect of the application filed under sub-section (6) of section 53.
- The application referred to in sub-section (10) shall be made to the Tribunal before the expiry of two years from the date of discharge, dismissal, retrenchment or otherwise termination of service as specified in sub-section (9).
Under Section 99 of the Code the appropriate Government can make rules for
- manner of choosing members from the employer and the workers for Grievance Redressal Committee under sub-section (2) of section 4;
- application in respect of any dispute to be filed before the Grievance Redressal Committee by any aggrieved worker under sub-section (5) of section 4;
- manner of filing application for the conciliation of grievance as against the decision of the Grievance Redressal Committee to the conciliation officer under sub-section (8) of section 4.
Comparing Provisions with the Industrial Disputes Act:
The Code aims to strengthen these internal mechanisms. It retains the provisions concerning works committee, but reduces the headcount for constitution of Grievance Redressal Committee from 50 to 20. ID Act limits grievance committee’s composition to 6 members, which now stands enhanced to 10, with adequate representation of women workers proportionate to their strength to the total workforce. Furthermore, the Code introduces a cut-off period of 1 year within which the grievance must be resolved, and if not, the employer or worker can raise a formal industrial dispute. Non-compliance with the above requirements may attract hefty fine up to INR 1 million.
Conclusion:
The bipartite Forums provided under the Industrial Code, 2020 for the purpose of securing and preserving amity and harmonious industrial relations between the employer and workers in industrial establishment and resolution of disputes arising out of individual grievances include: Works Committee and Grievance Redressal Committee. With these bipartite forums, it is expected that employers and workers attempt to resolve difference internally before escalating it to labour forums. Consequently, it is likely that formal proceedings (conciliation followed by adjudication) cannot be initiated without following the internal grievance redressal mechanism. Considering that disgruntled workmen often engage in frivolous industrial disputes to pressurize employers for regularization, reinstatement, payment of back wages, and similar demands, mandatory grievance settlement is likely to curb such practices. Further, a ruling by the grievance committee may also be factored by labour tribunals in their ruling, and hence, organizations must seriously consider setting up a meaningful and efficient grievance redressal mechanism.