Implementation of Arbitration as a dispute resolution mechanism in Industrial Disputes is a little different than that in other commercial cases. In the case of BoozAllen and Hamilton Inc., the court clarified that when questions are to be alluded into Arbitration, certain grounds should be taken a gander at. It was additionally examined that tenancy, criminal, marital cases are some among others that can't be mediated. Arbitrator just decides a case between two parties who have just differences and disputes amongst them, and hence seen as rights in personam and not right in rem.
There are three dispute mechanisms in industrial disputes between employer and workmen which are- Conciliation, Arbitration, and Adjudication. Conciliation includes a Conciliation Officer which resolves the dispute and settles the issues. Arbitration is another method which in Industrial Disputes is continued with only if; both the parties have mentioned the same under Section 10A in their agreement; a dispute or a prospective dispute should be there; the arbitration agreement must be signed by the parties; the parties should approach for arbitration before going to any other authority (adjudication).
Arbitration in Industrial Disputes is not similar to that in contracts and other things, however natural justice must be followed at all times and the parties shall have the right to put their voice through and their evidences shall be considered in all kinds of arbitration proceedings be it for industrial disputes or contract management. As per the Industrial Dispute (Amendment) Act 1982, a grievance settlement authority was established, whenever a dispute arises between the workmen and employer, it shall be first set forward before this authority. Section 3 of the Industrial Dispute Act mentions the establishment of a works committee by the employer and both the parties shall be involved.
In the case of Umesh Nayak v. Syndicate Bank and Engineering Mazdoor Sabha v. Hint Cycle Limited 1962 the disputes between the employer and the labour which is regarded as industrial dispute is dealt with. In the case of Kingfisher Airlines, arbitration agreement was signed between the employers and workmen in case a dispute arises. However the workmen reached the courts for fast action and justice. The employer contented against it saying they had agreed on arbitration, but ultimately the court held that the case should can be dealt as litigation because that would be in benefit for the workmen.
Points to note:-
1. In case of normal contract management when arbitration is involved, the award is not disclosed. However, in industrial dispute matters the arbitral award is made public.
2. In commercial arbitration team is represented by counsels, however under section 10A even members can negotiate and represent.
3. In any case of arbitration, natural justice should be the focal point.
4. When welfare and goodwill of public is in picture, the courts can intervene.
5. In a company/industry having more than 50 employees, a prevent settlement authority be set and whenever a dispute arises, it shall be first set forward before this authority.
Also read- A. Rangaswami v Registrar of Trade Unions - 'Labour law'
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