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The Joint Consultative Machinery (JCM) came into being during October, 1968. The Machinery provided for the setting up of a National Council at the Centre and the Departmental Council in every department for the settlement of disputes, between the Central Government and its employees. In case of disagreement on (1) Pay & Allowances (2) Hours of work, and (3) Leave, the dispute was to go for compulsory arbitration 'to the Tripartite Board of Arbitration which would be presided over by a Supreme Court Judge or one who was eligible to be appointed as such. The NFIR had a special reason to be satisfied at this development, for its persistent efforts to bring about machinery through the negotiations with the Central Government authorities, had at last succeeded. The NFIR insisted that the employees should have the right to disagree with the employer and upon disagreement the matter should compulsorily be referred to arbitration, whose decision must be taken as binding. To the NFIR, machinery meant more than means for settlement of disputes.

Believing in the efficiancy of collective bargaining, the NFIR has extended full co-operation in the working of the Permanent Negotiating Machinery and the Joint Consultative Machinery for Railwaymens' benefit. Till date 92 meetings under the PNM Rules and 54 meetings under the Departmental Council (JCM Rules) have been held in which more than 4502 subjects were discussed at the Railway Board level. Besides, many special meetings were held on several occassions to discuss special problems of different categories of staff.

In the early 70s, important awards were secured from the Board of Arbitration (JCM) at the instance of the NFIR on the issues viz., Grant of Semi-Skilled Grade to all Gangmen, Grant of Transfer Allowance to all Class III and Class IV employees, Grant of Special pay of Rs.150/- per month to Loco Foreman Grade Rs.450-575 (AS), Revision of the scale of pay of Stock Verifiers, Grant of Scale Rs.260-350 to Fireman Grade ' B', Grant of Scale to Shunters ' B' identical to that of Shunters ' A', Revision of Pay Scales of the Message Checkers, merging of the Junior & Senior Accountants in a single scale, Grant of 12 days Casual Leave to Workshop Staff; Revision of the Scales of Pay of Daftries, Assistant Commercial Inspectors and Progress Chasers. In respect of the Running Supervisors, the Tribunal awarded removal of imbalances in the case of Inspectors arising from revision of the running allowance rate of the drivers, from time to time.