Industrial Disputes and

Collective Bargaining
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What is the difference between mediation, conciliation
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 Learning Objectives
Objectives and Characteristics of
Industrial Disputes
Causes and Types of Industrial Disputes
Methods of Disputes Settlement
Features and Procedures of Collective
Bargaining
Effective Collective Bargaining
 Industrial Disputes
A Industrial dispute is basically a
difference of opinion between the
employer and the employees
over one or more issues.
Industrial dispute is a collective
dispute between employer and
employees.
Characteristics of Industrial Disputes
The relationship existing between the parties to
the industrial dispute must be that of employer
and employee or co-workers.
The dispute may arise out of disagreements
between employers and employees over the
terms of employment.
It could also be connected to the conditions of
labour.
The industrial dispute may even relate to non-
employment causes of workmen.
 Causes of Industrial Disputes
Demand for pay and benefits hike
Demand for hygienic and safer working conditions
Demand for better labour welfare and social security
measures
Demand for recognition and appreciation
The industrial dispute may even relate to non-employment
causes of workmen
Demand for justice to an individual or a group of
employees
One-upmanship among the unions.
External interference
Numerous labour legislations
 Types of Industrial Disputes
Interest Disputes - These refer to the
disputes relating to the economic interest of
the employees.
Rights Disputes - These involve disputes
over the understanding, interpretation, and
application of the rules and regulations
which protect the rights of the employees.
Outcomes of Industrial Disputes

The outcomes of disputes are

Strike

Picketing

Gherao

Lock-out
 Strike
A cessation of work by a body of persons
employed in any industry acting in
combination or a concerted refusal, or a
refusal under a common understanding, of
any number of persons who are or have been
so employed to continue to work or to accept
employment .
-Industrial disputes act, 1947
 Types of Strike
General Strike
Pen-down

Tools-down and sit-in strikes

Wild-cat strike

Go-slow and work-to-rule strikes

Sick leave and mass casual leave strikes

Hunger Strike

Sympathy Strike
 General Strike
It normally refers to a large-scale strike
organized by the employees belonging to
an industry, a region or an entire country.
Since these strikes are organized on a
mass basis, they create a huge impact
and often put a lot of pressure on the
employers.
General strikes are normally not intended
against any individual employer.
Pen-down, tools-down and sit-in strikes

In pen-down, tools-down and sit-in strikes,

employees report for duty but do no work.
In these forms of protest, the employees just
refuse to leave their place after entering the
work premises and remain idle.
 Wild-cat strike
When employees resort to an unauthorized
strike in violation of the labour contract or
agreements, it is called a wild-cat strike.
Wild-cat strikes are illegal and the striking
employees are not protected legally against
the consequences of these strikes.
Go-slow (slow down) and work-to-
rule strikes
Go-slow and work-to-rule strikes are forms
of strike in which employees work but not
up to their usual levels or capacity.
Striking employees reduce their output
deliberately to show their protest to the
employers.
Here, the employees strictly follow the
rules and just refuse to deviate from them.
 Sick leave and mass casual
leave strikes
The purpose of mass casual or sick leave is to
bring the work to a halt in order to achieve their
demands.
The employees may opt for this method even
to forewarn the employers of the
consequences of a strike planned in the future.
In this form of strike, the striking employees are
legally right and safe as they exercise their
right to avail leave.
 Hunger Strike

In a hunger strike, the employees

undertake fasting by abstaining from both
food and work as a means of protest.
The purpose of such a strike is to
embarrass the employers and get the
attention of the government and the
general public to the cause of the strike.
 Sympathy Strike

The purpose of a sympathy strike is to

express sympathy and solidarity with
another group of striking employees
belonging to a different category of
employment in the same organization.
Incidentally, the sympathy strike may also
be conducted for the striking employees in
other organizations in the same or a different
industry.
 Picketing
It is a form of protest by employees in which
the primary intention is to prevent the non-
striking employees from attending to their
work during the strike period.
Picketing may be held at the workplace or
even at some other prominent places to attract
the attention of the public and the government.
 Gherao
It is a form of protest in which employees
encircle their employers or top managers at
the workplace with a view to restricting their
movements.
The purpose of a gherao is to force the
employer or managers to concede the
demands of the workers.
The wrongful confinement of any person is
not legally tenable.
 Lock-out
A lock-out is the employers response to the
employees continued protest in the form of
strike.
In a lock-out, the employer closes the
workplace with the aim of preventing the
employees from entering the factory
premises and performing their job.
 Lock-out: Meaning
The temporary closing of a place of
employment or the suspension of work, or
the refusal by an employer to continue to
employ any number of persons employed
by him.
-Industrial disputes act, 1947
Investigation and Settlement of Disputes

The methods of settlement of disputes are

Negotiation

Collective Bargaining

Conciliation and Mediation

Arbitration

Adjudication
Investigation and settlement of disputes
 Negotiation
Negotiation is a first attempt to resolve an
industrial dispute.
Disputes arising out of inter-personal, inter-
group problems can be solved through direct
negotiation between the employer and the
union.
As part of a negotiation-based dispute
settlement, organizations can refer disputes
involving individuals to grievance procedures
established in organizations in compliance with
the Industrial disputes act, 1947.
 Collective Bargaining
It is a forum for reaching an agreement
between the employer and the union after
negotiations and bargaining.
Collective bargaining provides for resolution
of disputes through compromises or
concessions made by both the parties.
The power equation between the employer
and the union is critical in collective
bargaining from the beginning to the end of
dispute deliberation.
 Conciliation and Mediation
Conciliation can be defined as a procedure to
achieve friendly settlement with the assistance of an
independent third party.
Conciliation means different forms of mediation
through which disputes can be settled without
arbitration.
The purpose of the conciliation process is to remove
the hostility and mutual distrust in the relationship
between employer and employees.
Conciliation normally involves a third party who acts
as a mediator and plays a key role in persuading the
employer and the employees to reach a voluntary
settlement and execution.
 Arbitration
Arbitration is a mechanism for settlement of
a dispute by a third party.
Arbitration can be classified as compulsory
and voluntary.
In case of compulsory arbitration, the dispute
is referred for arbitration even without the
consent of the parties to the dispute.
In case of voluntary arbitration, the parties to
the dispute voluntarily submit their dispute
for arbitration on the basis of their common
understanding.
 Adjudication
Adjudication is a court-based decision-making
process that involves a third party and the
judgements are binding on the parties.
Adjudication is usually a highly formal and
time-consuming process.
It is normally an involuntary and adversarial
process.
Adjudication (contd.)

In an adversarial process, judgment is

decided in favour of the party which is
proved right and, by the same
extension, the other party is proved
wrong.
Adjudication includes courts of enquiry,
labour courts, industrial tribunals and
national tribunals.
Collective Bargaining
Collective bargaining is defined as a free and
voluntary forum that facilitates negotiation
between employers and employees unions on
issues affecting the interest and rights of both
parties so that an amicable settlement is
reached in good faith.
Features of Collective Bargaining

The features of collective bargaining are

Joint process

Interactive mode

Continuous process

Adversarial strategy

Union-based initiative
Types of bargaining

The types of bargaining are

Distributive bargaining

Integrative bargaining

Centralized bargaining

Decentralized bargaining
 Distributive bargaining

A bargaining process is described as

distributive bargaining when the parties
to the bargaining process have
conflicting needs, interests and goals.
In distributive bargaining, the
employers and employees normally
adopt opposing positions.
 Distributive bargaining (contd.)

In this kind of bargaining, one partys

gain is another partys loss as their
needs are mutually exclusive.
Economic issues like wages revisions,
benefits, bonuses, leaves and
workloads become the major agenda of
distributive bargaining.
 Integrative bargaining

When there is a convergence of

interests, needs and goals among the
parties to the bargaining, the bargaining
process is usually described as
integrative bargaining.
In this type of bargaining, the employers
and the employees have the same
attitude towards the issues discussed in
the bargaining and are equally
concerned about its outcome.
Integrative bargaining (contd.)

Agreements regarding employee

health and safety at the end of the
bargaining process usually benefit
both the parties.
Centralized bargaining

When collective bargaining is

conducted at higher levels like the
national level or industry levels in a
centralized manner, it is called
centralized bargaining.
This may be sectoral or central wage
bargaining.
Centralized bargaining (contd.)

The chief merit of centralized

bargaining is that the centralized
wage agreements ensure equal pay
increase for equal jobs, irrespective of
all other factors.
Decentralized bargaining

In case of decentralized collective

bargaining, the bargaining is
conducted at the enterprise level or
even at the individual level.
In decentralized bargaining, an
organization can develop a tailor-
made wage package which best suits
the interests of both the employer and
the employees.
Decentralized bargaining
(contd.)
Decentralized bargaining provides an
opportunity to the employees to
participate in the decision-making
process.
The Collective Bargaining
Process
 Essentials of an effective
collective bargaining
An effective collective bargaining requires
Strong unions and an effective leadership

The organizations recognition of unions

Top management support

Positive external environment

Openness and flexibility

Fair labour practices