Section 5 of IDA : Section 5: Board Of Conciliation

Explanation using Example

Imagine a factory where workers are demanding higher wages, but the management is unwilling to increase their pay. This leads to an industrial dispute affecting the production. To resolve this issue, the state government, which is the appropriate government in this case, decides to intervene to facilitate a resolution.

The state government issues a notification in the Official Gazette and constitutes a Board of Conciliation. The Board is comprised of a neutral chairman with no ties to either party, and two other members, one representing the workers and one representing the factory management.

During the conciliation process, one of the members representing the workers cannot continue due to personal reasons. Despite this absence, the Board still meets with the remaining members to continue the conciliation efforts, as they have the required quorum. The state government is promptly informed about the vacancy, and a new member is appointed to ensure the Board functions effectively.

The Board works towards a compromise between the workers and the management, aiming to reach an amicable settlement that resumes production and addresses the workers' demands for better wages.