An industrial dispute may be defined as a conflict or difference of opinion between management and workers on the terms of employment.
It is a disagreement between an employer and employees representative; usually a trade union, over pay and other working conditions and can result in industrial actions.
When an industrial dispute occurs, both the parties, that is the management and the workmen, try to pressurize each other.
The management may resort to lockouts while the workers may resort to strikes, picketing or gheraos.
As per Section 2(k) of Industrial Disputes Act,1947, an industrial dispute in defined as any dispute or difference between employers and employers, or between employers and workmen, or between workmen and which is connected with the employment or non-employment or the terms of employment or with the conditions of labor, of any person.
This definition includes all the aspects of a dispute. It, not only includes the disagreement between employees and employers, but also emphasizes the difference of opinion between worker and worker.
The disputes generally arise on account of poor wage structure or poor working conditions. This disagreement or difference could be on any matter concerning the workers individually or collectively. It must be connected with employment or non-employment or with the conditions of labor.
From the point of view of the employer, an industrial dispute resulting in stoppage of work means a stoppage of production.
This results in increase in the average cost of production since fixed expenses continue to be incurred.
It also leads to a fall in sales and the rate of turnover, leading to a fall in profits. The employer may also be liable to compensate his customers with whom he may have contracted for regular supply.
Apart from the immediate economic effects, loss of prestige and credit, alienation of the labor force, and other non-economic, psychological and social consequences may also arise.
Loss due to destruction of property, personal injury and physical intimidation or inconvenience also arises.
For the employee, an industrial dispute entails loss of income.
The regular income by way of wages and allowance ceases, and great hardship may be caused to the worker and his family.
Employees also suffer from personal injury if they indulge into strikes n picketing; and the psychological and physical consequences of forced idleness.
The threat of loss of employment in case of failure to settle the dispute
Causes of Industrial Disputes
Industrial Factors
Management attitude to labour
Government Machinery
other causes
Inter/Intra Union Rivalry
Charter of Demands
Work Load
Standing orders/rules/service conditions/safety measures
Non-implementation of agreements and awards etc.
Industrial Factor:
An industrial matter relating to employment, work wages, hour of work, privileges, right and obligations of employee and employers,
The rising prices of essential commodities, their shortages and non availability all those erode the value of money as a result worker’s wage go down thus create dissatisfaction.
The rapidly increasing population which has no opportunity for gainful employment, thus no improvement for standard of living, thus put forward demand for higher wages.
Management attitude towards workers
Management is generally not willing to talk over any dispute with their employees or their representative or refer it to the arbitration even when trade union want them to do so.
The management unwillingness to recognize a particular trade union is also an important source of industrial strike.
The management insistence that they alone are responsible for recruitment, promotion, transfer, merit and award and that they needn’t consult their employee regarding any of these matter.
Government Machinery.
Not successful in implementing labour law
Inability of conciliation machinery to do its job and consequently employee and management loss of confidence in that.
Irrelevance of certain provision of labour law and its inadequate role in the context of challenges of present industrial climate.
The officers associated with conciliation proceedings have very little training in handling the problem or dispute which are referred to them.
Other factors/causes
Inter/Intra Union Rivalry
Charter of Demands
Work Load
Standing orders/rules/service conditions/safety measures
Non-implementation of agreements and awards etc.
Classification of Industrial Dispute: Dispute relating to terms of employment
Interest Dispute : conflict of interest or economic dispute
this dispute is relates to establishment of new terms and conditions for the workers.
This arise when the parties fail in their negotiations to reach an agreement on the outstanding issues.
Generally the dispute originate from trade union demand or proposal for improvement of wage, fringe benefit, job security or other term of employment.
Grievance Dispute: Conflict of Rights
It arise from day to day working condition in the organization , usually as a protest by the workers in response to any unfair treatment by management.
Promotion, demotions, transfer, jobs classification are the main issues in this dispute.
The relevant provision of collective agreement, employment contract, work rule or law are resorted to settle such grievance issue.
Dispute over unfair labour practices
The most common unfair labour practices in IR are attempts by management of an undertaking to discriminate against workers for being a trade union member.
Other unfair labour practices are generally the concerned with interference, restraint or coercion of employees from exercising their right to organize, join or assist union.
Recognition Dispute: Industrial Dispute act. It settled mainly through
•the dispute over the right of the trade union to represent a particular class or category of workers for purpose of collective bargaining are referred as Recognition dispute.
•Issues in recognition dispute differ according to the cause which has led the management to refuse recognition.
•Settle down through laws. Source: slideshare
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