1As per the Industrial Disputes Act, 1947, an industrial dispute is a dispute or difference between which of the following?
Industrial disputes
Easy
A.Only customers and suppliers
B.Employers and employers, or employers and workmen, or workmen and workmen
C.Only shareholders and directors
D.Only government and companies
Correct Answer: Employers and employers, or employers and workmen, or workmen and workmen
Explanation:
The Act defines an industrial dispute as any dispute between employers and employers, employers and workmen, or workmen and workmen connected with employment, non-employment, or conditions of labour.
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2Which of the following is a common cause of industrial disputes?
Industrial disputes
Easy
A.Product colour choices
B.Wages and allowances
C.Office building height
D.Weather conditions
Correct Answer: Wages and allowances
Explanation:
Disputes over wages, bonus, and allowances are among the most frequent economic causes of industrial disputes.
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3A collective refusal by workers to work in order to press their demands is called a:
Industrial disputes
Easy
A.Retrenchment
B.Layoff
C.Strike
D.Lockout
Correct Answer: Strike
Explanation:
A strike is a cessation of work by a body of workers acting together to express grievances or enforce demands.
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4The temporary closing of a place of employment by the employer to pressurise workers is known as a:
Industrial disputes
Easy
A.Strike
B.Lockout
C.Picketing
D.Gherao
Correct Answer: Lockout
Explanation:
A lockout is the employer's counterpart to a strike, where the employer temporarily shuts the workplace to compel workers to accept terms.
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5The Industrial Disputes Act in India was enacted in which year?
Industrial disputes
Easy
A.1936
B.1926
C.1952
D.1947
Correct Answer: 1947
Explanation:
The Industrial Disputes Act was passed in 1947 to provide machinery for the investigation and settlement of industrial disputes.
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6When workers slow down the pace of work deliberately to press demands, it is called a:
Industrial disputes
Easy
A.Go-slow
B.Sit-in
C.Bonus
D.Merger
Correct Answer: Go-slow
Explanation:
A go-slow is a form of protest where workers deliberately reduce their work speed while remaining present, lowering output without a full strike.
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7Which of the following is generally classified as a non-economic cause of industrial disputes?
Industrial disputes
Easy
A.Demand for higher wages
B.Ill-treatment by supervisors
C.Demand for allowances
D.Demand for bonus
Correct Answer: Ill-treatment by supervisors
Explanation:
Non-economic causes relate to psychological and managerial issues such as ill-treatment, poor working relations, and lack of recognition, rather than money.
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8A protest technique where employees surround managers and prevent them from leaving is called:
Industrial disputes
Easy
A.Arbitration
B.Layoff
C.Lockout
D.Gherao
Correct Answer: Gherao
Explanation:
Gherao is a coercive tactic in which workers physically encircle managers or officials to force acceptance of demands.
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9In which method of dispute settlement does a neutral third party help the parties reach a voluntary agreement without imposing a decision?
Methods of settlement of industrial disputes
Easy
A.Conciliation
B.Litigation
C.Arbitration
D.Adjudication
Correct Answer: Conciliation
Explanation:
In conciliation, a conciliator facilitates negotiation and encourages settlement but does not impose a binding decision on the parties.
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10The process where disputing parties voluntarily refer their dispute to a neutral third party whose decision they agree to accept is called:
Methods of settlement of industrial disputes
Easy
A.Arbitration
B.Mediation
C.Conciliation
D.Negotiation
Correct Answer: Arbitration
Explanation:
In arbitration, an arbitrator hears both sides and gives a decision (award) that the parties have agreed to abide by.
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11Settlement of an industrial dispute by a compulsory reference to a labour court or tribunal is known as:
Methods of settlement of industrial disputes
Easy
A.Conciliation
B.Adjudication
C.Collective bargaining
D.Mediation
Correct Answer: Adjudication
Explanation:
Adjudication involves the compulsory settlement of disputes by government-appointed labour courts or industrial tribunals whose decisions are binding.
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12The process in which employers and workers or their representatives negotiate directly to settle terms of employment is called:
Methods of settlement of industrial disputes
Easy
A.Adjudication
B.Collective bargaining
C.Arbitration
D.Conciliation
Correct Answer: Collective bargaining
Explanation:
Collective bargaining is a direct negotiation between employers and employee representatives to reach mutually acceptable terms and conditions of work.
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13Which of the following is the official appointed under the Industrial Disputes Act to promote settlement of disputes?
Methods of settlement of industrial disputes
Easy
A.Auditor
B.Sales Manager
C.Company Secretary
D.Conciliation Officer
Correct Answer: Conciliation Officer
Explanation:
A Conciliation Officer is appointed by the government to mediate and promote the settlement of industrial disputes.
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14Which method of dispute settlement is considered voluntary rather than compulsory?
Methods of settlement of industrial disputes
Easy
A.Government award
B.Voluntary arbitration
C.Court injunction
D.Compulsory adjudication
Correct Answer: Voluntary arbitration
Explanation:
In voluntary arbitration, both parties agree on their own to refer the dispute to an arbitrator, unlike compulsory adjudication imposed by the state.
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15A committee formed with equal representatives of workers and management to promote good relations and settle disputes is called a:
Methods of settlement of industrial disputes
Easy
A.Board of Directors
B.Audit Committee
C.Selection Committee
D.Works Committee
Correct Answer: Works Committee
Explanation:
A Works Committee, comprising equal numbers of employer and worker representatives, helps maintain harmony and resolve minor disputes at the workplace.
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16The primary purpose of a trade union is to:
Trade unions and their challenges in India
Easy
A.Protect and promote the interests of workers
B.Maximise shareholder dividends
C.Audit company accounts
D.Set market prices of products
Correct Answer: Protect and promote the interests of workers
Explanation:
A trade union is an organised association of workers formed to protect and advance their common interests regarding wages and working conditions.
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17Trade unions in India are registered under which Act?
Trade unions and their challenges in India
Easy
A.Payment of Wages Act, 1936
B.Companies Act, 2013
C.Trade Unions Act, 1926
D.Factories Act, 1948
Correct Answer: Trade Unions Act, 1926
Explanation:
The Trade Unions Act, 1926 provides for the registration and regulation of trade unions in India.
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18Which of the following is a major challenge faced by trade unions in India?
Trade unions and their challenges in India
Easy
A.Excess funds
B.Multiplicity of unions
C.Absence of any laws
D.Too few members overall
Correct Answer: Multiplicity of unions
Explanation:
The existence of many rival unions in a single establishment (multiplicity of unions) weakens their bargaining strength and is a key challenge in India.
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19The problem of trade unions being controlled by political parties in India is known as:
Many Indian unions are led by outside political leaders, leading to politicisation that can divert unions from workers' genuine interests.
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20Which of the following is a common weakness of trade unions in India?
Trade unions and their challenges in India
Easy
A.Weak financial position
B.Excessive membership fees
C.Very large reserve funds
D.Too much government funding
Correct Answer: Weak financial position
Explanation:
Low membership subscriptions and small membership leave many Indian trade unions financially weak, limiting their effectiveness.
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21A group of workers stops production by collectively refusing to work until their demand for higher wages is met, while remaining employed. Under the Industrial Disputes Act, 1947, this action is best classified as a:
Industrial disputes
Medium
A.Layoff
B.Retrenchment
C.Lockout
D.Strike
Correct Answer: Strike
Explanation:
A strike is a cessation of work by a body of workers acting in combination, or a concerted refusal to continue working, to press their demands. The employees remain in employment, distinguishing it from retrenchment or layoff.
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22An employer closes a section of the factory and refuses to allow workers to enter as a response to their pressure tactics. This is the employer's counterpart to a strike and is termed a:
Industrial disputes
Medium
A.Lockout
B.Gherao
C.Boycott
D.Picketing
Correct Answer: Lockout
Explanation:
A lockout is the temporary closing of a place of employment or the suspension of work by the employer, used as a weapon against workers, making it the employer's equivalent of a strike.
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23Workers surround managers and physically prevent them from leaving the premises until demands are discussed. This coercive tactic, common in India, is known as:
Industrial disputes
Medium
A.Go-slow
B.Gherao
C.Sabotage
D.Picketing
Correct Answer: Gherao
Explanation:
Gherao involves encircling and confining managerial staff to coerce them into accepting demands. It restricts freedom of movement and is generally regarded as an unlawful form of pressure.
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24Employees report to work but deliberately reduce their output well below normal levels to pressure management. This form of protest is classified as a:
Industrial disputes
Medium
A.Hunger strike
B.Sit-down strike
C.Go-slow
D.Wildcat strike
Correct Answer: Go-slow
Explanation:
In a go-slow, workers stay on the job but intentionally slow the pace of production. Unlike a strike, work continues, but efficiency is deliberately lowered to apply pressure.
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25Which of the following is generally considered an economic cause of industrial disputes rather than a managerial or political one?
Industrial disputes
Medium
A.Poor grievance handling procedures
B.Ideological rivalry among unions
C.Autocratic leadership style
D.Demand for higher wages and bonus
Correct Answer: Demand for higher wages and bonus
Explanation:
Wage and bonus demands are economic causes tied directly to workers' financial interests. Leadership style, union rivalry, and grievance handling are managerial or political in nature.
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26A sudden strike carried out by workers without the authorisation or approval of their trade union leadership is called a:
Industrial disputes
Medium
A.Token strike
B.General strike
C.Sympathetic strike
D.Wildcat strike
Correct Answer: Wildcat strike
Explanation:
A wildcat strike is an unofficial, spontaneous stoppage undertaken without union sanction. It contrasts with authorised strikes that follow union procedures and legal notice requirements.
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27Union A calls its members out on strike purely to show solidarity with striking workers of another establishment, without any direct dispute of its own. This is termed a:
Industrial disputes
Medium
A.Sympathetic strike
B.Hunger strike
C.Stay-in strike
D.Wildcat strike
Correct Answer: Sympathetic strike
Explanation:
A sympathetic strike is undertaken to express support for workers involved in another dispute, even though the sympathising workers have no grievance against their own employer.
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28A neutral third party listens to both sides, studies the dispute, and offers non-binding suggestions to help them reach a voluntary agreement. This method is:
Methods of settlement of industrial disputes
Medium
A.Collective bargaining
B.Arbitration
C.Conciliation
D.Adjudication
Correct Answer: Conciliation
Explanation:
In conciliation, the conciliator facilitates negotiation and suggests solutions, but the recommendations are not binding on the parties. Binding outcomes characterise arbitration and adjudication instead.
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29In which method of dispute settlement do the parties voluntarily agree in advance to accept the decision of an independent third party as final and binding?
Methods of settlement of industrial disputes
Medium
A.Voluntary arbitration
B.Negotiation
C.Mediation
D.Conciliation
Correct Answer: Voluntary arbitration
Explanation:
In voluntary arbitration the parties themselves submit the dispute to an arbitrator and agree beforehand to be bound by the award, unlike conciliation or mediation where outcomes are only advisory.
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30The government refers an unresolved dispute to a Labour Court, whose decision is legally binding on both parties. This compulsory method of settlement is called:
Methods of settlement of industrial disputes
Medium
A.Adjudication
B.Collective bargaining
C.Mediation
D.Conciliation
Correct Answer: Adjudication
Explanation:
Adjudication is the compulsory settlement of disputes by labour courts, industrial tribunals, or national tribunals, whose awards are binding. It is invoked when voluntary methods fail.
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31Which of the following is the key feature distinguishing collective bargaining from adjudication?
Methods of settlement of industrial disputes
Medium
A.Parties settle terms directly without external imposition
B.A tribunal decides after formal hearings
C.A government officer imposes a binding award
D.The dispute is decided by a national tribunal
Correct Answer: Parties settle terms directly without external imposition
Explanation:
Collective bargaining is a voluntary, bipartite process in which employers and unions negotiate terms directly. Adjudication involves a third party imposing a binding decision.
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32Under the Industrial Disputes Act, 1947, which adjudicating body is primarily concerned with matters like wages, bonus, allowances, and other conditions listed as items of broader importance?
Methods of settlement of industrial disputes
Medium
A.Industrial Tribunal
B.Works Committee
C.Labour Court
D.Board of Conciliation
Correct Answer: Industrial Tribunal
Explanation:
Industrial Tribunals handle wider matters such as wages, bonus, provident fund, and hours of work, whereas Labour Courts deal mainly with matters like dismissal, standing orders, and legality of strikes.
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33A bipartite body set up in establishments with 100 or more workers to promote good relations and comment on matters of common interest is the:
Methods of settlement of industrial disputes
Medium
A.Board of Conciliation
B.Grievance Redressal Committee
C.Court of Inquiry
D.Works Committee
Correct Answer: Works Committee
Explanation:
A Works Committee, comprising equal representation of employers and workers, is formed in units with 100 or more workers to secure amity and remove friction on day-to-day matters of common interest.
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34When comparing arbitration and adjudication, the main difference is that arbitration is usually:
Methods of settlement of industrial disputes
Medium
A.Always non-binding on both parties
B.Handled only by labour courts
C.Voluntary and chosen by the parties
D.Imposed compulsorily by the state
Correct Answer: Voluntary and chosen by the parties
Explanation:
Arbitration (especially voluntary arbitration) rests on the parties' consent to refer their dispute to an arbitrator, whereas adjudication is a compulsory reference by the government to statutory bodies.
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35A trade union in India cannot be registered under the Trade Unions Act, 1926 unless it has at least a certain minimum number of members. That prescribed minimum for registration is:
Trade unions and their challenges in India
Medium
A.Seven members
B.Ten members
C.Fifteen members
D.Twenty-five members
Correct Answer: Seven members
Explanation:
Under the Trade Unions Act, 1926, any seven or more members of a union may apply for registration, making seven the statutory minimum for eligibility.
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36The existence of many small unions competing for the same set of workers within one establishment illustrates which major problem of Indian trade unions?
Trade unions and their challenges in India
Medium
A.Uniform membership
B.Multiplicity of unions
C.Financial strength
D.Political neutrality
Correct Answer: Multiplicity of unions
Explanation:
Multiplicity refers to the presence of numerous rival unions in the same industry or unit. This fragments worker strength and weakens bargaining power, a chronic issue in India.
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37Many Indian trade unions rely on external leaders such as politicians and lawyers rather than workers from within. This challenge is commonly described as:
Trade unions and their challenges in India
Medium
A.Inter-union rivalry
B.Outside leadership
C.Low membership
D.Uneven growth
Correct Answer: Outside leadership
Explanation:
Outside leadership means unions are led by non-employees like politicians and lawyers. It can subordinate workers' genuine interests to political agendas and weaken internal democracy.
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38A small union with very few members and low subscription income struggles to sustain strikes or provide welfare services. This directly reflects the problem of:
Trade unions and their challenges in India
Medium
A.Weak financial position
B.Union rivalry
C.Recognition disputes
D.Political affiliation
Correct Answer: Weak financial position
Explanation:
Small membership and low, often unpaid, subscriptions leave many Indian unions financially weak, limiting their ability to fund strikes, welfare schemes, and professional staff.
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39Two unions in the same factory frequently disagree over which of them should represent workers in negotiations with the employer. This situation best illustrates:
Trade unions and their challenges in India
Medium
A.Politicisation of unions
B.Outside leadership
C.Low literacy of members
D.Inter-union rivalry
Correct Answer: Inter-union rivalry
Explanation:
Inter-union rivalry arises when multiple unions compete for representation and membership in the same establishment, undermining unity and reducing collective bargaining effectiveness.
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40Which of the following is recognised as a positive function performed by trade unions rather than a challenge they face?
Trade unions and their challenges in India
Medium
A.Fragmentation into rival groups
B.Collective bargaining for better wages
C.Uneven regional growth
D.Dependence on outside leaders
Correct Answer: Collective bargaining for better wages
Explanation:
Collective bargaining is a core constructive function of trade unions, enabling them to negotiate improved wages and conditions. The other options describe structural weaknesses of Indian unions.
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41A group of 6 workmen out of a workforce of 500 raises a grievance about the individual dismissal of one worker. The employer argues it is not an 'industrial dispute' under the Industrial Disputes Act, 1947. Which legal provision most directly weakens the employer's position?
Industrial disputes
Hard
A.Section 10, which mandates reference of all disputes to a labour court automatically
B.Section 18, which makes all settlements binding on the entire workforce regardless of number
C.Section 2A, which deems an individual dismissal dispute to be an industrial dispute even without union espousal
D.Section 2(k), which requires the dispute to be sponsored by a majority of workmen
Correct Answer: Section 2A, which deems an individual dismissal dispute to be an industrial dispute even without union espousal
Explanation:
Section 2A was inserted to treat disputes connected with the discharge, dismissal, retrenchment or termination of an individual workman as an industrial dispute, even if no other workman or union espouses the cause. This overrides the older requirement that individual disputes must be collectively sponsored.
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42Under the classic 'individual vs collective' test laid down in the Central Provinces Transport case, an individual workman's grievance becomes an industrial dispute only when:
Industrial disputes
Hard
A.the grievance is espoused by a substantial number of workmen or their union
B.the workman personally files it before the conciliation officer
C.the wage loss exceeds a statutory monetary threshold
D.the employer voluntarily agrees to treat it as collective
Correct Answer: the grievance is espoused by a substantial number of workmen or their union
Explanation:
The Central Provinces Transport principle held that an individual dispute is not automatically an industrial dispute; it must be taken up (espoused) by an appreciable number of workmen or a union. Section 2A later carved out an exception for individual dismissals, but the general espousal test still applies to other individual grievances.
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43A public utility service worker plans a strike. Which combination of conditions must be satisfied for the strike to be legal under Sections 22 and 23 of the Industrial Disputes Act, 1947?
Industrial disputes
Hard
A.Notice of strike given within six weeks before striking, not within 14 days of notice, and not while conciliation proceedings are pending plus seven days after
B.Notice given at least 14 days after the intended strike date and approval from the appropriate government
C.Simple majority vote of the union executive and a two-day cooling-off period
D.Written consent of the employer and prior deposit of a security bond with the labour court
Correct Answer: Notice of strike given within six weeks before striking, not within 14 days of notice, and not while conciliation proceedings are pending plus seven days after
Explanation:
For public utilities, Section 22 requires a strike notice within six weeks before striking, not before 14 days of giving such notice, and not during pendency of conciliation proceedings plus seven days after their conclusion. Section 23 adds general prohibitions during pending adjudication/arbitration. Only the first option correctly bundles these.
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44What is the key legal distinction between a settlement reached during conciliation proceedings and one reached outside conciliation, under Section 18 of the Industrial Disputes Act, 1947?
Methods of settlement of industrial disputes
Hard
A.A settlement in conciliation can be unilaterally revoked, whereas one outside cannot
B.A settlement in conciliation binds all parties to the dispute, whereas one outside binds only the signatory parties
C.A settlement outside conciliation must be approved by the labour court to be valid
D.A settlement in conciliation is voluntary, whereas one outside is compulsory
Correct Answer: A settlement in conciliation binds all parties to the dispute, whereas one outside binds only the signatory parties
Explanation:
Under Section 18(3), a settlement arrived at in the course of conciliation proceedings binds all parties to the dispute, including present and future workmen. Under Section 18(1), a private settlement (outside conciliation) binds only the parties who signed it. This broader binding effect is the crucial difference.
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45Voluntary arbitration under Section 10A differs fundamentally from adjudication under Section 10 primarily because:
Methods of settlement of industrial disputes
Hard
A.arbitration is limited to wage disputes, while adjudication covers all disputes
B.arbitration arises from a written agreement between the parties, while adjudication is a reference made by the appropriate government
C.arbitration is binding only on the employer, while adjudication binds both parties
D.arbitration awards cannot be published, while adjudication awards must be published
Correct Answer: arbitration arises from a written agreement between the parties, while adjudication is a reference made by the appropriate government
Explanation:
Section 10A voluntary arbitration is triggered by a written agreement between employer and workmen who jointly refer the dispute to an arbitrator of their choice. Adjudication under Section 10 is a compulsory reference initiated by the appropriate government to a labour court or tribunal. The consensual origin is the core distinction.
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46A conciliation officer fails to bring about a settlement. What is the correct procedural consequence under the Industrial Disputes Act, 1947?
Methods of settlement of industrial disputes
Hard
A.The officer submits a failure report to the appropriate government, which then decides whether to refer the dispute for adjudication
B.The workmen become legally entitled to strike immediately without further notice
C.The conciliation officer himself passes a binding award on the dispute
D.The dispute is automatically referred to the National Tribunal without any report
Correct Answer: The officer submits a failure report to the appropriate government, which then decides whether to refer the dispute for adjudication
Explanation:
When conciliation fails, the conciliation officer sends a failure report under Section 12(4) to the appropriate government. The government then has discretion under Section 10 to refer the dispute to a labour court or tribunal, or to decline reference (recording reasons). Conciliation officers have no adjudicatory power.
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47Which adjudicatory body under the Industrial Disputes Act, 1947 is constituted by the Central Government specifically for disputes involving questions of national importance or affecting establishments in more than one state?
Methods of settlement of industrial disputes
Hard
A.Labour Court under Section 7
B.Industrial Tribunal under Section 7A
C.National Tribunal under Section 7B
D.Board of Conciliation under Section 5
Correct Answer: National Tribunal under Section 7B
Explanation:
Section 7B empowers the Central Government to constitute a National Tribunal for adjudicating disputes involving questions of national importance or where establishments in more than one state are likely to be affected. Labour Courts (S.7) and Industrial Tribunals (S.7A) have narrower jurisdictions.
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48An industrial tribunal passes an award. When does the award ordinarily become enforceable under Section 17A of the Industrial Disputes Act, 1947?
Methods of settlement of industrial disputes
Hard
A.On the expiry of 30 days from the date of its publication
B.After ratification by a majority of the affected workmen
C.Immediately upon being signed by the presiding officer
D.Only after the appropriate government files it in a civil court
Correct Answer: On the expiry of 30 days from the date of its publication
Explanation:
Under Section 17A, an award becomes enforceable on the expiry of 30 days from the date of its publication under Section 17. This window allows the appropriate government to consider whether to declare the award inoperative or modify it in specified circumstances.
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49During a legal strike, an employer declares a lock-out and later a lay-off. Analytically, which statement correctly distinguishes lay-off from lock-out?
Industrial disputes
Hard
A.Lay-off applies only to public utilities, while lock-out applies to all industries
B.Lay-off permanently ends employment, while lock-out only suspends wages
C.Lay-off is initiated by workmen, while lock-out is initiated by the employer
D.Lay-off is the employer's failure or inability to give employment due to reasons like shortage of materials, while lock-out is a deliberate closing of the workplace as a coercive tactic in a dispute
Correct Answer: Lay-off is the employer's failure or inability to give employment due to reasons like shortage of materials, while lock-out is a deliberate closing of the workplace as a coercive tactic in a dispute
Explanation:
Lay-off (Section 2(kkk)) is the employer's inability to provide work due to causes such as shortage of coal, power, raw materials, or breakdown of machinery, without ending employment. Lock-out (Section 2(l)) is a deliberate closure or suspension of work by the employer as a bargaining weapon in an industrial dispute.
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50A workman with 5 years of continuous service is retrenched. Under Section 25F of the Industrial Disputes Act, 1947, retrenchment compensation is calculated as:
Industrial disputes
Hard
A.one month's pay for every six months of service
B.30 days' average pay for every completed year of continuous service
C.15 days' average pay for every completed year of continuous service
D.50 percent of the last drawn annual wages
Correct Answer: 15 days' average pay for every completed year of continuous service
Explanation:
Section 25F mandates that a retrenched workman receive compensation equal to 15 days' average pay for every completed year of continuous service (or any part exceeding six months), along with one month's notice or wages in lieu, and notice to the appropriate government.
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51A factory employing 320 workmen wishes to retrench, lay-off, or close down. Under Chapter VB (Section 25N/25O) of the Industrial Disputes Act, 1947, what is the additional requirement compared to smaller establishments?
Industrial disputes
Hard
A.Compensation must be doubled but no permission is needed
B.Only intimation to the trade union is required, with no government involvement
C.Prior permission of the appropriate government must be obtained before retrenchment, lay-off, or closure
D.The establishment is fully exempt from any notice or compensation obligation
Correct Answer: Prior permission of the appropriate government must be obtained before retrenchment, lay-off, or closure
Explanation:
Chapter VB applies to establishments employing 100 or more workmen (300+ under the new labour codes). It requires prior permission of the appropriate government for lay-off, retrenchment, and closure, unlike Chapter VA (smaller units) where only notice and compensation suffice.
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52Under the Trade Unions Act, 1926, what is the minimum requirement for the registration of a trade union following the 2001 amendment?
Trade unions and their challenges in India
Hard
A.At least 50 members regardless of the size of the establishment
B.At least 7 members and either 10 percent or 100 of the workmen (whichever is less) engaged in the establishment, subject to a minimum of 7
C.A simple majority of all workmen in the industry
D.At least 25 percent of the total workforce with no lower cap
Correct Answer: At least 7 members and either 10 percent or 100 of the workmen (whichever is less) engaged in the establishment, subject to a minimum of 7
Explanation:
The 2001 amendment to the Trade Unions Act, 1926 requires that a union seeking registration have at least 10 percent or 100 of the workmen (whichever is less) engaged in the establishment as members, subject to an absolute minimum of 7 members. This raised the earlier threshold of just 7 members.
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53Which factor is most directly responsible for the phenomenon of 'multiplicity of trade unions' in India, and why does it weaken collective bargaining?
Trade unions and their challenges in India
Hard
A.The absence of any legal provision permitting union registration
B.A constitutional bar on political parties associating with unions
C.The low statutory membership threshold for registration, which fragments worker representation and dilutes bargaining strength
D.Compulsory recognition of a single union by law, which discourages formation of new unions
Correct Answer: The low statutory membership threshold for registration, which fragments worker representation and dilutes bargaining strength
Explanation:
Because the Trade Unions Act permits registration with a relatively small number of members, many rival unions can exist in a single establishment. This fragmentation splits worker loyalty, produces inter-union rivalry, and weakens the collective bargaining power that a single strong union could exert.
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54The problem of 'outside leadership' in Indian trade unions refers to unions being led by politicians, lawyers, or social workers rather than workers themselves. Which is the most accurate critique of this feature?
Trade unions and their challenges in India
Hard
A.It eliminates inter-union rivalry by centralising control
B.It can subordinate workers' economic interests to external political agendas and reduce internal leadership development among workers
C.It is illegal under the Trade Unions Act and invalidates the union's registration
D.It automatically guarantees stronger financial management and higher membership
Correct Answer: It can subordinate workers' economic interests to external political agendas and reduce internal leadership development among workers
Explanation:
Outside leadership, historically permitted because workers often lacked education and negotiating skills, risks aligning union agendas with political party interests and stunts the growth of leadership from within the workforce. This is a widely cited structural weakness of Indian trade unionism.
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55A registered trade union spends part of its general funds on directly financing a political party's election campaign. Under the Trade Unions Act, 1926, this is:
Trade unions and their challenges in India
Hard
A.Impermissible from the general fund; political expenditure must come from a separate political fund to which members contribute voluntarily
B.Fully permissible as political activity is a core registered object of every union
C.Permissible only if approved by the Registrar of Trade Unions in advance
D.Prohibited entirely, as unions may never engage in any political activity
Correct Answer: Impermissible from the general fund; political expenditure must come from a separate political fund to which members contribute voluntarily
Explanation:
Section 15 limits use of the general fund to specified objects. Section 16 permits political expenditure only through a separately constituted political fund, and no member can be compelled to contribute to it. Direct political funding from general funds is therefore not allowed.
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56Which statement best captures the 'recognition' problem faced by Indian trade unions at the central level?
Trade unions and their challenges in India
Hard
A.Recognition is granted only by the Supreme Court on a case-by-case basis
B.Employers are legally barred from recognising any union under central law
C.There is no uniform central statutory provision compelling employers to recognise a union as the sole bargaining agent, leaving recognition to state laws or voluntary codes
D.The Trade Unions Act, 1926 mandates automatic recognition of every registered union nationwide
Correct Answer: There is no uniform central statutory provision compelling employers to recognise a union as the sole bargaining agent, leaving recognition to state laws or voluntary codes
Explanation:
The Trade Unions Act, 1926 provides for registration but not recognition. In the absence of a central law on compulsory recognition, the matter is governed by some state enactments (e.g., Maharashtra) or the voluntary Code of Discipline, creating uncertainty about which union can bargain.
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57Collective bargaining is often described as superior to adjudication as a settlement method. Which reasoning best supports this claim from an organisational behaviour standpoint?
Methods of settlement of industrial disputes
Hard
A.It produces settlements the parties own and are committed to, preserving the ongoing relationship better than an imposed award
B.It is legally binding on all future workmen while adjudication is not
C.It is faster because it bypasses the requirement of any negotiation
D.It removes the need for trade unions to exist in the establishment
Correct Answer: It produces settlements the parties own and are committed to, preserving the ongoing relationship better than an imposed award
Explanation:
Collective bargaining is a bipartite, voluntary process where both sides negotiate the outcome. Because the parties craft and consent to the terms, compliance and commitment are higher and the employment relationship is preserved, unlike adjudication where a third party imposes a decision.
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58Workmen engage in a 'go-slow'. How is this classified under industrial jurisprudence, and what is its typical legal treatment?
Industrial disputes
Hard
A.It is treated as misconduct rather than a strike, because workers remain on the job while deliberately reducing output
B.It is a lock-out initiated indirectly by workmen
C.It is a legal form of strike fully protected under Section 22
D.It is equivalent to retrenchment and attracts compensation
Correct Answer: It is treated as misconduct rather than a strike, because workers remain on the job while deliberately reducing output
Explanation:
Courts have consistently held that a go-slow is a serious form of misconduct because workers pretend to work while intentionally curtailing production, causing loss without the honesty of an open strike. It is not a legally recognised strike and is generally punishable under standing orders.
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59A Board of Conciliation differs from a conciliation officer chiefly in that the Board:
Methods of settlement of industrial disputes
Hard
A.is an ad hoc tripartite body constituted by the government for a specific dispute, whereas the officer is a permanent functionary
B.can only handle disputes in non-public-utility services
C.is appointed by the trade union rather than the government
D.has the power to pass a binding award, whereas the officer only mediates
Correct Answer: is an ad hoc tripartite body constituted by the government for a specific dispute, whereas the officer is a permanent functionary
Explanation:
Under Section 5, a Board of Conciliation is constituted by the appropriate government as needed for a particular dispute, with an independent chairman and members representing each party. A conciliation officer (Section 4) is a standing/permanent official. Neither can impose a binding award; both promote settlement.
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60Financial weakness is a chronic challenge for Indian trade unions. Which combination of causes most accurately explains it?
Trade unions and their challenges in India
Hard
A.A statutory ceiling that bars unions from collecting any subscription from members
B.Low membership subscription rates combined with multiplicity of small unions that cannot pool resources
C.Mandatory transfer of all union funds to the government treasury each year
D.Employer control over union bank accounts under the Trade Unions Act
Correct Answer: Low membership subscription rates combined with multiplicity of small unions that cannot pool resources
Explanation:
Indian unions typically charge very low subscription fees, and the fragmentation into numerous small rival unions means none accumulates adequate funds. The result is weak finances that limit welfare activities, staff, research, and sustained bargaining or strike capacity.
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