Causes Of Industrial Disputes

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The causes of industrial disputes can be broadly classified into two categories: economic and non-economic causes. The economic causes will include issues relating to compensation like wages, bonus, allowances, and conditions for work, working hours, leave and holidays without pay, unjust layoffs and retrenchments. The non economic factors will include victimization of workers, ill treatment by staff members, sympathetic strikes, political factors, indiscipline etc. Wages and allowances: Since the cost of living index is increasing, workers generally bargain for higher wages to meet the rising cost of living index and to increase their standards of living. In 2002, 21.4% of disputes were caused by demand of higher wages and allowances. This percentage was 20.4% during 2003 and during 2004 increased up to 26.2%. In 2005, wages and allowances accounted for 21.8% of disputes. Personnel and retrenchment: The personnel and retrenchment have also been an important factor which accounted for disputes. During the year 2002, disputes caused by personnel were 14.1% while those caused by retrenchment and layoffs were 2.2% and 0.4% respectively. In 2003, a similar trend could be seen, wherein 11.2% of the disputes were caused by personnel, while 2.4% and 0.6% of disputes were caused by retrenchment and layoffs. In year 2005, only 9.6% of the disputes were caused by personnel, and only 0.4% were caused by retrenchment. Indiscipline and violence: From the given table, it is evident that the number of disputes caused by indiscipline has shown an increasing trend. In 2002, 29.9% of disputes were caused because of indiscipline, which rose up to 36.9% in 2003. Similarly in 2004 and 2005, 40.4% and 41.6% of disputes were caused due to indiscipline respectively. During the year 2003, indiscipline accounted for the highest percentage (36.9%) of the total time-loss of all disputes, followed by cause-groups wage and allowance and personnel with 20.4% and11.2% respectively. A similar trend was observed in 2004 where indiscipline accounted for 40.4% of disputes.

 Bonus: Bonus has always been an important factor in industrial disputes. 6.7% of the disputes were because of bonus in 2002 and 2003 as compared to 3.5% and 3.6% in 2004 and 2005 respectively. Leave and working hours: Leaves and working hours have not been so important causes of industrial disputes. During 2002, 0.5% of the disputes were because of leave and hours of work while this percentage increased to 1% in 2003. During 2004, only 0.4% of the disputes were because of leaves and working hours. Miscellaneous: The miscellaneous factors include - Inter/Intra Union Rivalry - Charter of Demands - Work Load - Standing orders/rules/service conditions/safety measures - Non-implementation of agreements and awards etc.

The new industrial set-up has given birth to the capitalistic economy which divided the industrial society into two groups of labour and capitalists. The interests of these two groups are not common which created industrial disputes. The causes of industrial disputes can be broadly classified into two categories: economic and noneconomic causes. The economic causes will include issues relating to compensation like wages, bonus, allowances, and conditions for work, working hours, leave and holidays without pay, unjust layoffs and retrenchments. The non economic factors will include victimization of workers, ill treatment by staff members, sympathetic strikes, political factors, indiscipline etc. Economic causes: The most common causes of industrial disputes are economic causes. These are follows: Demand for higher Wages: Rise in the cost of living forces the workers to demand more wages to meet the rising cost of living index and to increase their standards of living. This brings them into conflict with their employers who are never willing to pay more wages to workers. Demand for Allowances and Bonus: Increase in cost of living was the main cause of the demand of certain allowance allowances such as dearness allowance, house allowance, medical allowance, night shift allowance, conveyance allowance etc; by the workers to equate their wages with the rise of prices. Bonus also plays an important role as a cause of industrial dispute. Both the amount and the method of bonus payment have led to a number of disputes. High Industrial Profits: In the changing world, concept of labour has changed considerably. At the present, employers consider themselves as a partner of the industry and demand their share in the profits. Non- Economic Causes: Working Conditions and Working Hours: The working conditions in Indian industries are not hygienic. There is not ample provision of water, heating, lighting, safety etc. On the other hand, working hours are also greater. The demand of palatable working conditions and shorter hours of work led to labour disputes Modernization and Automation of Plant and Machinery: The attempt at modernization and introduction of automatic machinery to replace labour has been the major cause of disputes of India. Workers go on strike, off and on, to resist such rationalization. Personnel Causes: Sometime industrial disputes arise because of personnel problems like dismissal, retrenchment, layoff, transfer, and promotion etc. Political Causes: Various political parties control trade unions in India. In many cases, their leadership vests in hands of persons who are more interested in achieving their political interests rather than the interests of the workers. Indiscipline: Industrial disputes also take place because of indiscipline and violation on part of the workforce. The managements to curb indiscipline and violence resort to lockouts

 Non-reorganization of trade unions: The employers usually do not like the interference by trade unions. They do not recognize them. This brings the workers into conflict with their employers. Weakness of Trade Unions: Weaknesses of trade unions encourages the employers to deny certain basic needs of the workers such as medical, education and housing facilities etc. This led to resentment on the part of workers who resorted to direct action. Miscellaneous causes: Behaviour of supervisors, Lack of proper communication between management and workers, Rumors spread out by trade union, Inter-trade union rivalry etc; are the other causes that cause dispute between management and employers. Source: http://www.shvoong.com/business-management/management/1922306-causes-industrialdisputes/#ixzz1XiaZOse3

Causes of industrial disputes

Posted Date: 13 Mar 2010 Author: ajay Member Level: Gold

Category: General

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Points: 15 (Rs 10)

1. Demand for Higher wages The employees want higher wages. The employer wants more profit by paying lower wages. This results in frustration among employees and they resort to agitation.

2. Non-Implementation of Bonus Schemes Bonus is a strong incentive for the employees. They want share in the profit in the form of bonus. However, the employers generally show deficit and do not pay bonus to the employees. This results in industrial dispute.

3. Demand for better working condition The employees want better working conditions. If their demand is not accepted by the employer they resort to agitational approach. The result is industrial disputes.

4. Failure to recognise Unions The employers cannot tolerate trade unions as they feel that these unions are threat to their profit. Therefore, they discourage union movement by the policy of divided and rule. But the workers believe in collective bargaining and desire the recognition of unions by the employers.

5. Demand for proper leave Rules The employers want that leave rules and working hours should as laid down in factory act. No worker should be forced to work more than 48 hours or more in a week. However, generally employers ignore these rules which results in industrial dispute.

6. Over Time Payment The employees demand over-time payment as prescribed in the factory act. But the employer either

does not make any payment or makes under-payment. This causes frustration among employees and they resort to agitations.

7. Political Interference Most of the trade unions in India are dominated by political parties. Sometimes, political leaders use workers as tool for their selfish ends. They excite the workers to go on strike or adopt other agitational approach.

8. Punishment to Workers Sometimes, the employer adopts dictational policy and victimises the employers by suspending or dismissing them from services. In order to get the victimisation redressed the employees resort to agitational approach. This disturbs the industrial peace.

9. Mass retrenchment & undue promotions :One major cause of industrial dispute is the mass retrenchment and undue promotions of the employees. The employees start agitation to show their resentment against the callous attitude of the management.

10. Insecurity of Service In India, the employment opportunities are very tight. The employees want security of service. If the employer does not meet with their demand they adopt agitational approach.

11. Wrong policy or decision Sometimes, the policy or decision taken by the management is determental to the interests of employees. This causes frustration among the employees and they went to agitational approach in bid to put pressure on the management to withdraw the wrong decision.

12. Bad Behaviour The pre-requisite of industrial peace is the cordial relations between the employer and employees. If the behaviour of the management is bad towards the employees, good will disappears and dispute arises.

13. Non-redressal of grievances The employees place their grievances before the management time and again. If their genuine grievances are not removed or properly attended, it give rise to frustration and ultimately a dispute.

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