Industrial Disputes

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.

2. 3. 4. 5.

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. To provide a suitable machinery for investigation & settlement of industrial disputes. To prevent illegal strikes & lockouts. To provide relief to workmen in matters of lay-offs, retrenchment, wrongful dismissals & victimization. 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 ECONOMIC FACTORS

MANAGEMENT PRACTICES

UNFAIR LABOUR INEFFECTIVE WAGES INCENTIVES PRACTICES SUPERVISION

BENEFITS

WORKING CONDITIONS

VIOLATION OF ACCEPTABLE NORMS

TRADE UNION PRACTICES

UNION RIVALRY

NON COOPERATIVE APPROACH

LEGAL & POLITICAL FACTORS

MULTIIPLICITYOF LABOUT LAWS

POLITICAL INTERFERENCE

Economic Factors 1.

2.

3.

4.

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. 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. 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. 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) II. III. IV. V. VI. VII.

b)

c)

Unfair Labour Practices- There are many labour practices adopted by management which may lead to industrial disputes. Those are: Interference or threat of use of coercion in exercising the rights of workers to organize trade union activities according to the legal provisions. To force the workers to join a particular trade union or refraining from joining a trade union. To discharge or dismiss workmen by way of victimization, discrimination or any other subjective ground. To assign a work to individual workers for which they have not been hired & trained. To put workers on temporary basis for unduly long period so as to deprive them from benefits available to permanent workers. To harass workers to accept any responsibility which does not come within the purview of their activities. 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. 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.

2.

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. 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.

2.

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. 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.