Industrial Dispute and Individual Dispute

Conflicts inevitably arise, often triggering a complex web of legal, ethical and organisational challenges. Two distinct yet interrelated categories of disputes, known as industrial disputes and individual disputes, play a pivotal role in shaping the landscape of labour relations.

These disputes, while divergent in their nature and scope, share a common thread: the pursuit of fairness and justice in the realm of work. An industrial dispute, encompassing collective conflicts that reverberate across entire industries, stands in contrast to an individual dispute, where the concerns of a solitary worker take centre stage. Both are integral facets of labour dynamics, each with its unique nuances and significance.

Meaning of Industrial Dispute

In accordance with Section 2(k) of the Industrial Disputes Act, 1947, an “industrial dispute” arises when there is a disagreement or discord between employers and employers, between employers and workers or between workmen and workmen, which pertains to an individual’s employment status, the absence of employment, terms of employment or the conditions under which the employee works.

The parties involved in an industrial dispute may include:

• Employers and employees.
• Employers and other employers.
• Workers and other workers.

It’s essential to note that for an issue to qualify as an industrial dispute, it must go beyond a mere difference of opinion; there must be a substantive point of contention. Additionally, this dispute needs to be officially endorsed in writing by a union at the outset of the conflict. Subsequent endorsements will not retroactively validate the reference.

Consequently, the date on which the dispute was initially raised holds significant importance. This date has implications not only for an individual worker but also for multiple workers as a collective class working within an industrial establishment. The dispute may pertain to any specific worker or worker or extend to any other individual in whom they have a shared interest as a group.

A noteworthy legal precedent, as established in the case of Jadhav J. H. v. M/s. Forbes Gokak Ltd (2005), is that even if a dispute involves a single worker, it can be classified as an industrial dispute as long as the dispute receives support from a union or a group of workers, regardless of whether the supporting union represents the majority of the union membership.

Meaning of Individual Dispute

An individual dispute is one that originates from a single employee’s grievance. To be classified as an industrial dispute, it must be raised by a registered trade union. Individual disputes can transform into collective industrial disputes when they incorporate the interests of the broader community or when they receive support from workers themselves or their union or federation acting on their behalf.

Section 9C of the Industrial Disputes Act, 1947 addresses the establishment of grievance redressal bodies and the transfer of certain individual disputes to such entities. According to this section, if a company employs 50 or more workers, they are required to establish a body known as a Grievance Settlement Authority. This authority is tasked with resolving disputes between the company and individual workers and operates under specific government-prescribed regulations. The primary objective is to resolve any conflicts or disagreements between individual workers and the company in an equitable and impartial manner.

Causes of Industrial Dispute

Industrial disputes typically arise from the rights of workers to engage in collective bargaining. To qualify as an industrial dispute, it’s essential for workers or employees to make a demand related to their employment or non-employment, which is subsequently refused by the entity to whom the demand is addressed, leading to a disagreement between the parties involved.

In the case of Sindhu Resettlement Corporation Ltd. v. Industrial Tribunal (1967), the Supreme Court clarified that when workmen do not have any existing conflict with the management, any requests they make to the government are considered mere demands. A request made to the government without a prior dispute with management cannot be deemed a labour dispute.

The term “industrial dispute” has been comprehensively defined in the case of Workmen employed by Hindustan Lever Ltd v. Workmen of Hindustan Lever Ltd. (1984). According to this labour law case, any disagreement or conflict that may arise between an employer and its workers falls under this definition. Consequently, the nature of the conflict does not preclude it from being classified as an industrial dispute.

The decision in Shambu Nath Goyal v. Bank of Baroda (1983) established that even if a demand was not initially presented to the management and rejected by them but was introduced during referral or conciliation processes, it may still be referred to as an “industrial dispute.”

The causes of industrial disputes can encompass economic factors, such as dissatisfaction with compensation, including wages, promotions, bonuses, allowances and other benefits, as well as working conditions, such as working hours, leave, unpaid holidays, unfair layoffs, retrenchments and dismissal disputes.

Non-economic issues can also give rise to disputes, including worker victimisation, mistreatment by colleagues, sympathy strikes, political considerations, indiscipline and more. Non-economic causes of industrial disputes can be categorised as psychological causes, involving personality clashes, worker demands for self-respect and recognition and administrative issues. Institutional causes, such as the non-recognition and non-registration of trade unions, problems with collective bargaining, unfair trade practices and the denial of workers’ legal and other rights, also contribute to such disputes.

When an Individual Dispute Becomes an Industrial Dispute

To declare an individual conflict as an industrial dispute, several key elements must be satisfied:

Support from Labour Body or Trade Union

It is crucial that a group of labourers, trade unions or a substantial number of workers align themselves with the individual workman who is raising the issue. As demonstrated in the case of Newspaper Ltd., Allahabad v. UP State Industrial Tribunal (1960), when a group of workers, either through their union or other means, back an individual worker’s complaint, it can be classified as an industrial dispute. However, this support or sponsorship must come from employees of the same employer against whom the complaint is made.

Representative Character

The dispute must be taken up or sponsored by workers as a collective body of a trade union or by a significant proportion of them before the reference date.

For instance, in the case of Workmen of Indian Express Newspapers Ltd. v. Management Indian Express Newspapers (1968), where there was no union among Indian Express journalists, the issue was taken up by the Delhi Union of Journalists, an external union. The court recognised the representative character of this union because it represented a substantial portion of Indian Express’s working journalists.

Conditions of Section 2A

Alternatively, for an individual dispute to be considered an industrial dispute, it must meet the conditions stipulated in Section 2A of the Industrial Disputes Act, 1947.

According to Section 2A, if an employer terminates the services of an employee due to a dispute or differences between the worker and their employer, even if no other worker or union of workers is involved, the resulting dispute is classified as an industrial dispute.

Resolution Process

After three months from the date of filing an application with the conciliation officer, any worker can directly apply to the labour court or industrial tribunal for the resolution of such a dispute. The government has the authority to appoint conciliation officers, who play a role in mediating and facilitating settlements in industrial disputes.

These officers may be appointed for specific regions, industries or periods to expedite the resolution process. However, the application for dispute resolution must be submitted within three years after the date of dismissal, discharge, retrenchment or termination of employment.

Once an application reaches the court, it proceeds as if it had been referred to it under Section 10 of the Industrial Disputes Act, 1947, ensuring that the dispute is addressed through the appropriate legal channels.

Relevant Cases for Industrial Dispute and Individual Dispute

In the case of Express Newspapers (Private) Ltd. v. First Labour Court, West Bengal and Others (1958), it was established that a dispute can be classified as an industrial dispute even if it is supported by an unregistered union. However, it is essential that the trade union be affiliated with the employer or the specific industry in question. This ruling highlights the importance of the union’s connection to the relevant employer or industry in determining whether a dispute qualifies as an industrial dispute.

Regarding the issue of delay in filing industrial disputes, the case of Guest, Keen, Williams Pvt. Ltd., Calcutta v. P.J. Sterling (1959) provided valuable guidance. The Supreme Court stated that if a dispute arises after a significant delay that is not reasonably explained, the tribunal handling the case would take this fact into account when assessing the merits of the dispute. In other words, a delay in filing an industrial dispute may not automatically disqualify it from being heard, but the circumstances surrounding the delay can influence how the dispute is evaluated by the tribunal.

Difference Between Industrial Dispute and Individual Dispute

The difference between industrial dispute and individual dispute is critical in labour law. An industrial dispute typically involves conflicts that affect large groups of workers and employers aligned on opposing sides. Conversely, an individual dispute is one raised by a single worker. It’s important to note that the involvement of a registered trade union is not mandatory to classify a dispute as an industrial dispute.

In the context of the Industrial Disputes Act, 1947, the definition of a dispute encompasses cases raised either for a workman or any person for whom the workmen have a substantial interest in matters related to employment or non-employment, terms of employment or conditions of labour.

The term “any person” in this context includes both workmen and any other individuals, provided they are connected with the workmen concerning employment or non-employment, terms of employment or conditions of labour. Essentially, “any person” must be an employee of the industry in which the workmen are also employed, as established in the case of Narendra Kumar Sen v. All India Bank Dispute (AIR 1953 Bom 325).

Similarly, in the case of Workmen of Dirakuchi Tea Estate v. Management of Dirakuchi Tea Estate (1958 AIR 353), the expression “any person” was interpreted to mean a person whose employment or non-employment, terms of employment or conditions of labour were of substantial interest to the workmen as a class with whom they shared a community of interest under the framework of the Industrial Disputes Act.

The court emphasised that only the aggrieved party can initiate a dispute, but in the case of an industrial dispute, it is treated as collective because it is recognised that an industrial dispute not supported by others of the same class to which the aggrieved party belongs is not considered an industrial dispute.

In summary, the term “any person” in the definition of a dispute under the Industrial Disputes Act, 1947, encompasses individuals for whom workmen have a significant interest in employment-related matters, even if those individuals do not fall within the definition of “workmen” as defined by the Act. This interpretation allows for a broader scope in addressing disputes that impact the employment and working conditions of a collective group of workers.

Summary: Difference Industrial Dispute and Individual Dispute

Conclusion

An industrial dispute involves conflicts between groups of workers and employers, while an individual dispute pertains to grievances raised by a single worker against their employer.