Labor National Commission & Industrial Relations Policy of 1969

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Collective Bargaining:

Since reaching of arguments have not been successful, the NCL has recommended compulsory recognition of the union for solely representing bargaining:

1. In the absence of recognitions of unions, and provisions that require employers and their staff to bargain in "good faith," collective bargaining hasn't met much success in India. Nevertheless, it is also important to reach collective agreements.

2. Collective bargaining is greatly being emphasized and relied upon, and may be used as a procedure to resolve industrial conflicts.

Further Observations:

Unions have to be recognized for the purpose of bargaining with the management, trade unions must be well organized and stable, strikes have to be defined within the scheme of industrial relations.

Recognition of Unions:

Trade unions must have at least 30% membership from the supporting organization.

1. Recognition of unions must be required for all organizations 100 or more workers. And at least 30% of the workers within the organization should be members of the union.

2. The IRC must certify the union as a representative union by verifying its active memberships. The IRC must also deal with aspects of union recognition such as: the level of recognition to be offered, certifying the majority union, and dealing with other related matters.

3. The recognized union must be allotted certain rights such as right to sole representation, right to enter into collective agreements on terms and conditions of service, the right to collect membership subscriptions within the premise of the undertaking, the right of check-off, etc.

4. Minority unions must only be allotted the right to represent cases of dismissal and discharge of their members before the Labor Court.

5. Unions must be made strong, organizationally, and financially. Nevertheless, intra-union disputes must be discouraged.

Strikes/Lock-outs and Gheraos:

1. If cessation of work may cause social harm, strikes should be banned; instead, the case must be forwarded to an arbitration committee.

2. Every strike must be preceded by a warning.

3. A maximum of one month must be allotted for holding a legal strike in non-essential industries.

4. Gherao is not really a form of labor unrest because it involves physical compulsion instead of economic pressure.

5. Unjustified strikes hold penalties should be discharged, and the aggravated parties should settle their disputes face-to-face.

6. Compensation and wages should be distributed to prevent unnecessary strikes.


1. Conciliation is most effective if it is uninfluenced by external factors, and the conciliation department is adequately staffed.

2.Personnel hired to work in the conciliation department should undergo special hiring selection.


It has been observed that with the growth of collective bargaining, recognition of unions, and improved management attitudes, settlement of disputes through voluntary arbitration will be accepted.

Unfair Labor Practices:

These should be discouraged, and penalties should be levied upon those who participate in unfair labor practices.

Additional Readings:

1. Definition and Evolution of Industrial Relations
2. Concept, Scope and Objectives of Industrial Relations
3. Conceptual Model for understanding Industrial Relations
4. Labor National Commission and Industrial Relations Policy - 1969
5. Industrial Dispute
6. Indian Industrial Dispute Act of 1947
7. Parameters and Classification of Industrial Disputes
8. Types of Industrial Strikes
9. Tripartite and Bipartite Bodies, and Industrial Settlement
10. Definition of "Mediation" and "Conciliation"

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