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Business Environment Lecture Notes:
Boards of Conciliation
Introduction :-
The term "conciliation" refers to a form of alternative dispute resolution in which a third party (the "conciliator") attempts to facilitate an agreed resolution of the dispute by providing active input and advice to the Participants about the best way to resolve the Complaint. This method of alternative dispute resolution is known as "conciliation." The fact that decisions in other proceedings are handed down by the authority that is presiding over the case and are then made legally binding is one reason why conciliation is so important. But there is also the possibility of an amicable settlement during the conciliation process. In this scenario, the parties themselves will decide on the terms of the settlement, and their choice will be legally binding.
Industrial Disputes Act :-
1947 is the year that saw the beginning of implementation of the Industrial Disputes Act. In order to provide some protections to workers, as well as to establish provisions for the prevention and resolution of labour disputes, the Act was passed into law and given its namesake. By providing as much economic and social justice as is possible, the legislation tries to reduce the amount of tension that exists between management and workers. The entire Indian Constitution is subject to the regulations that were enacted as a result of this act. We take a comprehensive look at the Industrial Disputes Act in the following article.
Industrial Disputes Act, 1947 :-
Boards of Conciliation :-
(1) The competent government may, on an as-needed basis, and by notifying the Official Gazette of its intention to do so, establish a Board of Conciliation for the purpose of encouraging the peaceful resolution of a labour dispute. (2) A Board must have a Chairperson in addition to two or four other members, depending on what the relevant government deems to be appropriate.
(3) The Chairman shall be a person who is not affiliated with either of the disputing parties, and the other members shall be individuals who have been appointed in equal numbers to represent the disputing parties. Any person appointed to represent a party shall be appointed on the recommendation of that party: PROVIDED, however, that in the event that any party fails to make a recommendation as outlined above within the allotted amount of time, the relevant government shall designate such persons as it deems acceptable to represent that party. (4) If a board meets the requirements for a quorum, it may take action even if the chairman or any other member of the board is absent, as well as if there is a vacancy among its members. PROVIDED, however, that in the event that the competent government notifies the Board that the services of the Chairman or of any other member have ceased to be available, the Board shall not take any action until a new Chairman or member, depending on the circumstances, has been appointed.
Works Committee :-
A powerful social institution, the works committee not only ensures cooperation between workers and employers, but also makes the will of employees effective on management. This is why the works committee is considered to be so important. In accordance with section 3 of the Industrial Disputes Act, the appropriate government may, by ordinary or particular order, acquire the employer to build a works committee consisting of representatives of employers and workmen engaged in the establishment if the industrial establishment contains 100 or more workmen who are employed or have been employed on any day in the preceding twelve months. This provision applies in the case of an industrial establishment which contains 100 or more workmen who are employed or have been employed on any day in the preceding twelve months. It is unacceptable for the number of workers' representatives on the Works Committee to be fewer in number than the number of employer representatives on the committee.
Board of Conciliation :-
In a similar fashion, the establishment of a board of conciliation should also take place in order to facilitate the resolution of labor-related disagreements. A board ought to have a chairperson in addition to two or four other members, depending on what the relevant government deems to be acceptable. The chairman of the arbitration panel ought to be a neutral third party, and the other member ought to be a neutral third party who is appointed in equal numbers to represent each of the disputing parties on the basis of the parties concerned's recommendations. In the event that any party chooses not to make a recommendation within the allotted amount of time, the relevant government may choose persons who are authorised to represent the party on its behalf.
Responsibilities of Board of Conciliation :-
Conclusion :- A process in which the parties to a dispute, with the assistance of a member of the Tribunal, an officer of the Tribunal, or another person appointed by the Tribunal (the conciliator), identify the disputed issues, develop options, consider alternatives, and attempt to reach an agreement on the terms of the dispute. The conciliators are required to be guided by the principles of objectivity, fairness, and justice. They are also required to take into consideration, among other things, the rights and obligations of the parties, the usages of the trade in question, and the circumstances surrounding the dispute. This includes taking into consideration any previous business practises that the parties have engaged in together.
