Industrial Disputes

Concept of Industrial Dispute

 Industrial disputes, like problems of indiscipline & their
effective management are one of the major issues in
maintaining good industrial relations in the country.
Manifestation of Industrial disputes in forms of strikes,
lockouts, bandhas, gheraos, etc has become common in
the country affecting production processes & sometimes
even paralyzing the social systems.
 Disputes means a difference , it means a controversy
which is fairly definite & real substance & being
connected with the employment or terms of employment
or non-employment.
Definition of Industrial Dispute
 According to Sec 2(k) of industrial Dispute Act,
1974-
“Industrial dispute means any dispute or
difference between employers & employers or
between employers & workmen or between
workmen & workmen, which is connected with
the employment or non- employment or the
terms of employment or the conditions of labour
of any person.”
OBJECTIVES OF THE ACT
1. To promote measures for securing & preserving amity
& good relations between the employers & the
employees, to minimize the differences & to get the
dispute settled through adjudicatory authorities.
2. To provide a suitable machinery for investigation &
settlement of industrial disputes.
3. To prevent illegal strikes & lockouts.
4. To provide relief to workmen in matters of lay-offs,
retrenchment, wrongful dismissals & victimization.
5. To give the workmen the right of collective Bargaining
& promote conciliation.
CAUSES OF INDUSTRIAL DISPUTES

 Various causes of
Industrial Disputes
may be grouped into
4 categories-
 CAUSES OF
INDUSTRIAL
DISPUTES

LEGAL &
ECONOMIC MANAGEMENT TRADE UNION
POLITICAL
FACTORS PRACTICES PRACTICES
FACTORS

UNFAIR LABOUR INEFFECTIVE

NON MULTIIPLICITYOF
WAGES INCENTIVES PRACTICES SUPERVISION
UNION
RIVALRY
COOPERATIVE
APPROACH
LABOUT
LAWS
POLITICAL
INTERFERENCE

VIOLATION OF
WORKING
BENEFITS ACCEPTABLE
CONDITIONS
NORMS
Economic Factors
1. Wages- usually pressure from workers for upward revision of wages becomes the
bone of contention between labour & management. Workers in an industrial sector
compare their earnings with fellow workers in other industrial sectors. Wage
differentials prevailing at different plants of a company, generally create much
more disputes as compared to other differentials.
2. Incentives- Besides wages, incentives also become issue of dispute between
labour & mgmt. Incentive system becomes source of disputes because of 3
reasons. 1st workers may perceive that incentives are not adequate in comparison
to the co’s profit which is generated through their efforts. 2nd even if incentives may
be considered adequate, there may be dispute over the issue of linking incentives
& performance. 3rd there may be protest from worker & unions about how
incentives are calculated.
3. Benefits- Various types of benefits, both statutory & voluntary are provided ny org
to their employees. Such factors as leave with wages, medical benefits, pension &
other fund benefits, facilities for subsidies services to employees & their
dependents etc often create dissatisfaction among workers & disputes between
labour & mgmt.
4. Working Conditions- Working conditions including physical facilities & physical
work environment create tension in workers if they are not up to the prescribe
standards. Along with these working conditions work schedule, hours of work, shift
system etc cause industrial disputes.
Management Practices
a) Unfair Labour Practices- There are many labour practices adopted by management which may
lead to industrial disputes. Those are:
II. Interference or threat of use of coercion in exercising the rights of workers to organize trade
union activities according to the legal provisions.
III. To force the workers to join a particular trade union or refraining from joining a trade union.
IV. To discharge or dismiss workmen by way of victimization, discrimination or any other subjective
ground.
V. To assign a work to individual workers for which they have not been hired & trained.
VI. To put workers on temporary basis for unduly long period so as to deprive them from benefits
available to permanent workers.
VII. To harass workers to accept any responsibility which does not come within the purview of their
activities.

b) Ineffective Supervision- Workers deal directly with front-line supervisors in the course of their
day-to-day job performance. If these supervisors are not effective & well-behaved, they treat
workers inhumanly by adopting the age –old master servant relationships.
c) Violation of Acceptable Norms- There may be many situations in which mgmt violates
acceptable norms in practice though such norms exist on the papers in the org. Various such
norms may be in the form of Code of Discipline, grievance procedures, agreements entered into
between labour & mgmt. discrimination in giving promotion & providing training etc.
Trade Union Practices
1. Union Rivalry- There is a problem of multiplicity of trade unions in
India. In many organizations , more than one union exists, in
some cases more than four. The result is that any settlement
arrived at between management & a union is opposed by other
unions irrespective of the most favorable conditions for the
workers in a given situation. Such a rivalry among unions leads to
violence & other similar problem & the disputes become natural
outcomes.
2. Non Cooperative Approach- Many trade unions & their leaders
proceed on the assumption that, “what they do is right & what
management does is wrong.” Such a tendency on the part of
trade unions makes them to adopt non-cooperative approach &
they oppose all settlements.
Legal & Political Factors
1. Multiplicity of Labour Laws- Labour Laws in any country are enacted to
create better industrial relations. However ,existence of multiple labour
laws creates more confusions. In India there are 2 types of problems in
this respect,1st there are many legal acts & guidelines, totalling 108 to
regulate industrial relations. The inherent contradictions among these
laws exist. Industrial relations departments of many organizations as well
as trade unions remain busy to identify the legal lacuna to use this in their
favor. 2nd most of the labour laws have been enacted ling back & many of
them even before the independence. Constitution of India , adopted in
1950 has seen many amendments but the labour laws have remained
untouched.
2. Political Interference- Political Interference is through the politicization of
trade union activities or direct interference of political parties & their
workers. With the degrading of political system, emergence of
mushrooming growth of political parties, & lack of values often put
pressure on mgmt or trade unions to involve in activities which are not
conductive to good industrial relations & lead to industrial disputes.