2. Industrial Dispute : An Obvious
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Labour disputes and the need to resolve them
efficiently, effectively and equitably for the benefit
of all the parties involved and the economy at
large.
The range of choices for resolving labour
disputes is broad and largely depend on Labour
legislation of respective country as well as
workplace environment.
The extra-judicial mechanisms of conciliation,
mediation and arbitration – that is, solutions
which do not involve going to court or appearing
before a labour tribunal.
Judicial mechanism are involved the tribunal,
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Disputes associated with the process of
collective bargaining (interest disputes) or in
the application/interpretation of collective
agreements (rights disputes) which arise
between employers and groups of workers
most often represented by trade unions.
Generally speaking, employment disputes are
divided into two categories: individual and
collective disputes.
As the term implies, individual disputes are
those involving a single worker whereas
collective disputes involve groups of workers –
usually represented by a trade union.
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Collective disputes can further be divided into two
sub-categories: rights disputes and interests
disputes.
A rights dispute arises where there is
disagreement over the implementation or
interpretation of statutory rights, or the rights set
out in an existing collective agreement.
By contrast, an interest dispute concerns cases
where there is disagreement over the
determination of rights and obligations, or the
modification of those already in existence.
Interest disputes typically arise in the context of
collective bargaining where a collective agreement
does not exist or is being renegotiated.
In terms of collective disputes, the kind of dispute
often has important legal and strategic
consequences for determining the method for
resolving it.
In the case of a rights dispute where there is a
valid collective agreement in force, this same
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There are essentially three options: conciliation,
mediation and arbitration. All three of these
alternatives involve the intervention of a third party
and it is rather the degree of intervention that
differentiates one from the other.
While both conciliation and mediation are
processes involving the intervention of a neutral
third party, the role of a conciliator is to help
facilitate communication between the parties,
without making any specific proposals for resolving
the dispute.
On the other hand, in addition to keeping the lines
of communication open, a mediator’s role may also
include proposing terms of settlement, which the
parties are free to accept or reject.
Arbitration may be compulsory or voluntary, binding
or advisory – depending on the legal
6. Dispute Resolution, International Labour
Standards and the ILO
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The main ILO instrument dealing with dispute
prevention and settlement is the Voluntary
Conciliation and Arbitration Recommendation, 1951
(No. 92).
It recommends that voluntary conciliation “should be
made available to assist in the prevention and
settlement of industrial disputes between employers
and workers.”
It further recommends that such procedures should
include equal representation of employers and
workers, should be free and expeditious and that
provision should be made to allow the parties to enter
into conciliation voluntarily or upon the initiative of the
conciliation authority.
It also recommends that parties should refrain from
strikes or lockouts while conciliation or arbitration
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Dispute resolution is further addressed under
the Collective Bargaining Convention, 1981
(No. 154), which provides that bodies and
procedures for the settlement of labour disputes
should be designed to contribute to the
promotion of collective bargaining (Article
5(2)(e)).
While Convention No. 154 focuses on collective
bargaining, it does not rule out the use of
conciliation and/or arbitration as part of the
bargaining process where such processes are
voluntary (Article 6).
One objective of dispute resolution is in fact to
promote the mutual resolution of differences
between workers and employers and,
consequently, to promote collective bargaining
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With respect to the public sector, the Labour
Relations (Public Service) Convention, 1978 (No.
151) provides that the settlement of disputes over
the terms and conditions of employment is to be
sought “through independent and impartial
machinery, such as mediation, conciliation and
arbitration, established in such a manner as to
ensure the confidence of the parties involved”
(Article 8).
Also, the Examination of Grievances
Recommendation, 1967 (No. 130) addresses
dispute resolution at the enterprise level, including
rights disputes over alleged violations of collective
agreements.
Other ILO instruments make reference to the role of
the labour administration in resolving disputes.
For example, the Labour Administration
Recommendation, 1978 (No. 158) provides that the
“competent bodies within the system of labour
administration should be in a position to provide,
in agreement with the employers' and workers'
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Labour Relations (Public Service) Convention
No. 151 (1978);
Collective Bargaining Convention No. 154
(1981);
Voluntary Conciliation and Arbitration
Recommendation No. 92 (1951);
Examination of Grievances Recommendation
No. 130 (1967);
Labour Administration Recommendation No.
158 (1978).
“Alternative Labour Dispute Resolution
(ALDR)”
10. Labour Act 2074
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CHAPTER 18 : Provisions Relating to
Settlement of Individual Dispute
CHAPTER 19 :Provisions Relating to
Resolution of Collective Dispute