Meaning and Concept of Conciliation
Conciliation is a statutory method of settlement of industrial disputes through mutual discussion and compromise with the assistance of a neutral third party. The concept is provided under the Industrial Disputes Act, 1947, particularly in Section 4, which deals with the appointment of Conciliation Officers. Conciliation aims to promote peaceful resolution of disputes without resorting to strikes, lock-outs, or adjudication. The Conciliation Officer does not impose decisions but assists parties in arriving at an amicable settlement. The process reflects the welfare objective of labour legislation by encouraging dialogue, cooperation, and industrial harmony between employers and workmen.
Appointment and Powers of Conciliation Officer
Under Section 4(1) of the Industrial Disputes Act, 1947, the appropriate government may appoint one or more Conciliation Officers to mediate and promote settlement of industrial disputes. As per Section 12, the Conciliation Officer has the duty to investigate the dispute and make efforts to bring about a fair settlement. He may call parties for meetings, examine documents, and hold discussions. Though he has no adjudicatory powers, his role is crucial in preventing escalation of disputes. The officer must act impartially and encourage voluntary agreement between the disputing parties.
Legal Effect and Importance
Conciliation plays a vital role in maintaining industrial peace. If a settlement is arrived at during conciliation proceedings, it is recorded and becomes binding under Section 18(3) of the Industrial Disputes Act. Such settlements have wider binding force than private settlements. If no settlement is reached, the Conciliation Officer submits a failure report to the government under Section 12(4), based on which the government may refer the dispute for adjudication. Thus, conciliation acts as a bridge between negotiation and adjudication and serves as a preventive mechanism in labour relations.
Real-Time Practical Example
Workers of a transport company demand wage revision and improved working hours. When negotiations fail, the dispute is reported to the Conciliation Officer. The officer conducts meetings between the management and workers, explains legal consequences, and encourages compromise. Eventually, both parties agree on partial wage increase and revised shifts. The settlement is recorded and becomes binding. This example shows how conciliation helps resolve disputes amicably without litigation.
Mnemonic to Remember Conciliation
Mnemonic: “C.A.L.M.”
C – Compromise oriented
A – Assisted by officer
L – Labour dispute settlement
M – Mutual agreement
This mnemonic helps recall the purpose and nature of conciliation in exams.
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