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Settlement and Effects of Industrial Disputes in the Indian Textile Industry


CMR University, Karnataka


The paper deals with the settlement of disputes as a grievance redressal machinery, the duties of the conciliation officer, the board of conciliation under the industrial disputes act. The court will inquire about the industrial disputes and the labour. The industrial court has the power to dissolve the matters. The tribunals and national tribunals had an important role and needed to revise the existing labour laws in India. The growth and social responsibility in the Indian textile industry, contribute to inclusive development. The secondary data is analyzed, the Indian textile is an unorganized sector, and does not play a positive role. It is to fulfill the socio-economic needs of people in India. It covers discussion, and results of the development of the Indian textile industry. The settlement and satisfaction of the workers in the Textile Industry. It deals with the settlement of industrial disputes between employers and workers, also resolving those disputes.


Industrial disputes, industrial settlement, Textile industry, inclusive development, labour law.


Industrial relations between the employee and employer in the industry, there are some causes and effects of Industrial disputes in India. Section 2 (p) of the Industrial Dispute Act, 1947 is about the settlement of Industrial disputes in India. The Industrial disputes in Labour law, there are some disputes between the two parties as employee and employer in the industry. To resolve the issues and disputes faced by both workmen and the employer, it is made by adjudication. The state will provide solutions by providing legislation and solving the problems between them in industry. The state provides solutions and solves the Industrial disputes among them. These disputes are dealt with in Labour, Industrial courts, and also tribunals, and national tribunals have the power to resolve the issues. There are certain methods that are followed to dissolve the issues, such as arbitration, adjudication, and conciliation with the help of law. These can be done by the written agreements between the workman and employer.


Settlement of industrial disputes in Indian textile industry

The settlement of industrial disputes is defined under section 2(P) of the Industrial disputes Act, Industrial disputes are conflicts between workers and employers. The settlement started in the course of conciliation proceedings, the conciliation officer will dissolve the problems among them. The settlement started between the management of the Indian textile industry and the association of workmen. If there are any Industrial disputes in the Indian textile industry that results in less production and no profits for employers. The conflict should be resolved to get profits and benefits in the Indian textile industry. The textile industry has two segments, unorganized and organized sectors. The unorganized sector means traditional methods which are small-scale like handicrafts. Whereas the organized sector means the modern machinery used for the production of materials in the Indian textile industry. It helps in producing a variety of textiles.


Merits of Indian textile industry

  1. Structure and growth of Indian textile industry

The Indian textile industry is one of the largest textile industries in India. The production is high in cotton and fabric materials. The economic growth and development in India are because of large production. The strength of the textile industry is Rich resources and raw materials for the production of goods and getting benefits out of that. It exports the goods to other countries and increases its profits. The good quality at low costs. The purpose of the textile industry is to produce towels, table covers, bed sheets, handkerchiefs, etc. It is important for our daily life.

  1. Opportunities

The Indian textile industry is giving opportunities to employees. It helps in employment to workmen and development in social economic life. It has the capacity to produce huge production in the textile industry. The E-commerce company provides opportunities to the Indian textile industry in the international market. It is giving employment to over 35 million people in India.

Demerits of Indian textile industry

  1. Pollution - the main disadvantage of the Indian textile industry is pollution in the environment. The textile industry creates air and water pollution. To run the textile industry, water consumption is required.

  2. Shortage of raw materials - India is still facing a shortage of raw materials issues, which leads to environmental problems. Increase in the cost of raw materials. The employer was paying less wages to the workman, who had worked for a long time. There is less protection for workers in the textile industry.

  3. Affecting human health - the cotton dust in the industry can cause breathing problems, and diseases related to the lungs, and respiratory system (shortness of breath). The working conditions can also cause back pain, neck pain, and shoulder pain. There are no proper facilities to work. In many textile industries, there is high noise which leads to hearing loss, sleep disorders, and changes in BP. The workers in Nagpur faced the risk of hearing loss caused by high noise levels in the textile industry. The chemicals used to produce materials, which can also cause skim-related disorders.


The settlement of industrial disputes between the two parties, employee and employer, can be resolved by Conciliation, Court of Inquiry, Voluntary Arbitration, and Adjudication. The four ways of dissolving the Industrial disputes and the difference between them are,

Conciliation - The government will appoint the conciliation officer and the industrial disputes are resolved by the conciliation officer. Both parties will detail their problems to the officer. The notice is to be provided by one party for having the intention to resolve the settlement of disputes.

Court of Inquiry - The government will appoint the court of inquiry, and dissolve it within 6 months. After the 6 months duration, the decision or final judgment will come.

Voluntary Arbitration - Both parties will appoint the arbitrator, then he will use his power to resolve the Industrial disputes among them.

Adjudication - The government will appoint a third party to dissolve the Industrial disputes by adjudication method. In this, it is resolved through the labour court, Industrial or national tribunals.


Sanghi Jeevaraj Ghewar Chand & Ors vs Secretary, Madras Chillies

The provision mentioned in this case, the Industrial Disputes Act, Payment of Bonus Act- Section 39, Section 1(3). It is about the payment of a bonus, the employee was asked for a bonus. The Industrial disputes started because employees asked for a bonus. When the employee asked for a bonus, the employer was not ready to give them. The Industrial disputes between employers and employees are due to not providing bonuses to employees. This conflict is dissolved by Industrial adjudication under the Industrial disputes Act. The court held, that employees do not get any bonus and that there is misconduct, and misbehavior on the side of employees.


In the Indian textile industry, the problems and issues faced by employees and employers are,

  • Toxic substance - the issue with Indian textiles is, that it releases large amounts of greenhouse gasses. It uses more chemicals and water to produce the materials. The chemical (a toxic substance) is released and it enters the soil. Hence, it is affecting the environment like soil, land, water, and air.

  • Problems faced by employees - lack of appreciation and respect for workmen in the textile industry. If any Industrial disputes start, there is no proper communication between the workman and the employer. The employee is facing financial issues due to getting less wages. The employee is working for a longer period of time which results in many disorders and no protection is given to the worker.

  • Employee working conditions - there are no proper building facilities for workers to work. The lack of facilities for workers will harm or cause the employee. The government should make laws, which will protect the lives of employees.

  • Unskilled workers - in a few textile industries, still unskilled workmen are working. The employee is not aware of machinery work; it results in less production in the industry. The employers should give training to workmen about the operation of machines in the textile industry.

  • Lack of human and labour rights - The labour rights are not recognized in a few textile industries. There is safety in both the mental and physical conditions of the workers. The employee's health is more important than the industry's profit. And not using more chemical substances, which will lead to problems for the worker's health. Their minimum wages are to be given to the workers for their work performed in the industry. The rights of workers have to be recognized and facilities to be fulfilled. If there are no rights given to the employees that cause industrial disputes between the workers and the employers.

  • Availability of raw materials - The materials in the Indian textile industry are cotton, silk, jute, and fiber products. Natural fibers are essential for producing goods from that. It is made from plants, animals, and other natural materials. Raw materials play the main role to get benefits in the textile industry.


The Indian textile industry plays an important role in India and growth in the Indian economy as international textile industry. The textile industry is giving one of the basic needs of people as developing the quality of life in society. It is useful for people's day-to-day life, there are a variety of textiles in India. To avoid industrial disputes between employer and employee, the employer should give minimum wages to employees. There should be certain protection given to workmen who have worked in the textile industry. The textile industry should use less chemical products then it will not lead to any disorders for workmen. The textile industry should use organic fibers, the materials should be of good quality. If there are any industrial disputes between employer and employee, they should be dissolved soon, or else there will be no production and no wages given to employees. The employer in the textile industry should make convenient facilities for workmen and reduce the working hours.


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  3. Dr.M.Dhanabhakyam, Indian textile industry, FIBRE,

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  7. Rahul Dhiman, the textile Industry and exports published by Taylor & Francis in 2020.

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