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Lesson: 36

Title: One step further: Industrial disputes

Topics to be covered:

• Definition
• Parties to Industrial disputes
• Severity or Effects
• Weapons used by labour
• Weapons used by management
• Causes
• Living without disputes: Measures to improve Industrial Relations

Today we are going to discuss the concept of Industrial Dispute. We will also be studying the severity of
disputes,

What is a dispute for you?

It is a conflict, clash of ideas, a disagreement etc.

New let us understand a dispute from an industrial point of view.

The definition of Industrial disputes is as follows:

According to Section 2(k) of the Industrial Disputes Act, 1947 "industrial dispute" is defined as,

"Any disputes or differences between employers and employers, or between employers and workmen, or
between workmen and workmen, which is connected with the employment or non-employment or the terms of
employment or with the conditions of labour, of any person."

Does this sound very confusing?

Let me simplify this for you.

Let us understand that the definition identifies three parties to disputes. They are:

(i) Employers and Employers

(ii) Employers and Workmen
(iii) Workmen and Workmen
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Industrial dispute is disagreement and difference between two disputants, namely, labour and management.
This disagreement or difference could be on any matter concerning them individually or collectively. It must be
connected with employment or non-employment or with the conditions of labour.

I hope you have understood.

It should also be noted that, the subject- matter of an industrial dispute must be specific, i.e., which affects the
relationship of employers and workers.

Let us now understand the severity of industrial disputes

It is self-evident that industrial disputes and industrial unrest are symptoms of a lack of co-operative spirit and
of harmonious relations in industry. I am sure you all will agree that the manifestation of these symptoms
causes stoppage of work or disruption of production and all consequential evils. The continued and prolonged
industrial unrest also has serious consequences for the employees and also for the economy at large.

From the point of view of the employer, an industrial dispute resulting in stoppage of work means a stoppage of
production.

Please understand that this results in the 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 labour 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, many times resulting in
deprivation, mal-nutrition, even starvation or near-starvation. The ability of trade unions to provide for the
needs of striking workers, particularly in India, is very limited. Employees also suffer from personal injury, and
the psychological and physical consequences of forced idleness. The threat of loss of employment in case of
failure to settle the dispute advantageously, or the threat of reprisal action by employers also exists.

Don’t you think that the psychological effects can be more dangerous than the physical consequences?

Prolonged stoppages of work have also an adverse effect on the national productivity, national income. They
cause wastage of national resources. Class hatred may be generated resulting in political unrest and disrupting
amicable social relations or community attitudes.

I am sure that all of you will agree with me that it would not be wrong to say that:
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“Industrial disputes are symptoms of industrial unrest in -the same way that boils are a symptom of a
disordered body”(Patterson)

Now let us understand the weapons used by labour during times of industrial disputes.

Whenever industrial disputes arise, workers generally resort to one or more of the following weapons,
namely, strike, boycott, picketing and gherao. Let us discuss them one by one.

1) Strike. When workers collectively cease to work in an industry, it is known as strike. Strike can be defined
according to the Industrial Disputes Act, 1947 as:

"It means a cessation of work by a body of persons employed in an industry acting in combination; or a
concerted refusal of any number of persons who are or have been so employed to continue to work or to
accept employment; or a refusal under a common understanding of any number of such persons to
continue to work or to accept employment".

I hope all of you understand the meaning of cessation .It means stoppage

For trade unions, strike is the most powerful weapon for forcing the management to accept their demands.

Are you aware of the various types of strikes?

Strikes can be divided into two categories. They are:

• Primary strikes
• Secondary strikes

The primary strikes are:

(i) Economic Strike. Most of the strikes of workers are for more facilities and increase in wage levels. In
economic strike, the labourers demand increase in wages, travelling allowance, house rent allowance,
dearness allowance and other facilities such as increase in privilege leave and casual leave.

(ii) General Strike. It means a strike by members of all or most of the unions in a region or an
industry. It may be a strike of all the workers in a particular region of industry to force demands
common to all the workers. It may also be an extension of the sympathetic strike to express
generalised protest by the workers.

(iii) Stay-in Strike. In this case, workers do not absent themselves from their place of work
when they are on strike. They keep control over production facilities. But do not work.
Such a strike is also known as 'pen down' or 'tool down' strike.

Now pleas don’t tell me that you are going on a pen down strike!
(iv) Slow Down Strike. Employees remain on their jobs under this type of strike. They do not stop work,
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but restrict the rate of output in an organised manner. They adopt go-slow tactics to put pressure on
the employers.

These are some of the primary strikes. A few more will come up in the diagram that we will be discussing
shortly.

The secondary strike is:

Sympathetic Strike. When workers of one unit or industry go on strike in sympathy with workers of
another unit or industry who are already on strike, it is called a sympathetic strike. The workers of sugar
industry may go on strike in sympathy with their fellow workers of the textile industry who may already be
on strike.

(2) Boycott. The workers may decide to boycott the company in two ways. Firstly by not using its products
and secondly by making an appeal to the public in general. In the former case, the boycott is known as primary
and in the latter secondary If is a coercive method whereby the management is forced to accept their demands.
(3) Picketing. When workers are dissuaded from work by stationing certain men at the factory gates, such a
step is known as picketing. If picketing does not involve any violence, it is perfectly legal.

(4) Gherao. Gherao in Hindi means to surround. The workers may gherao the members of the management by
blocking their exits and forcing them to stay inside their cabins. The main object of gherao is to inflict-physical
and mental torture to the person being gheraoed and hence this weapon disturbs me industrial peace to a great
extent.

The management uses its own methods to counter the workers.

Some of the weapons used by the management are:

1. Employers' Association. The employers may form their unions to collectively oppose the working class and
put pressure on the trade unions.

2. Lock-out. An employer may close down the place of employment temporarily. Such a step is technically
known as lock -out. It is the reverse of a strike and is a very powerful weapon in the hands of an employer to
pressurise the workers to return to the place of work.

According to the Industrial Disputes Act, 1947, "lock-out means the 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.

3. Termination of Service. The employers may terminate the services of those workers who are on strike by
blacklisting them. Their lists may be circulated to other employers so as to restrict their chances of getting
employment with those employers.
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Let us summarise the weapon used in industrial disputes with the help of a diagram:

Industrial disputes

Weapons of Labour Weapons of management

Strikes

Boycott Picketing Gherao

Primary Secondry
• Economics
• General
• Stay-in Employers’ Lock Termination of
• Slow down Association Out Service

We have discussed the weapons used by the labour and management to coerce each other. These are some of
the violent ways of settling the disputes. There are more matured ways of resolving or rather preventing
Industrial Disputes. Those will be discussed later.

Have you ever given a thought as to what gives rise to an industrial dispute?
Any points from you?

Cause of Industrial Disputes:

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The disputes between the management and the workers may arise on account of the following factors:

1. Economic Cause: These causes may be classified as:

o Demand for increase in wages on account of increase in all-India Consumer Price Index for
Industrial Workers.
o Demand for higher gratuity and other retirement benefits.
o Demand for higher bonus.
o Demand for certain allowances such as:

o House rent allowance

o Medical allowance
o Night shift allowance
o Conveyance allowance

o Demand for paid holidays.

o Reduction of working hours.
o Better working conditions, etc.

2. Political Causes: Various political parties control Trade unions in India. In many cases, their leadership vests
in the hands of persons who are more interested in achieving their political interests rather than the interests of the
workers.

3. Personnel Causes: Sometimes, industrial disputes arise because of personnel problems like dismissal,
retrenchment, layoff, transfer, promotion, etc.

4. lndiscipline: Industrial disputes also take place because of indiscipline and violence on the part of the
workforce. The managements to curb indiscipline and violence resort to lock -outs
.
5. Misc. causes: Some of the other causes of industrial disputes can be:

o Workers' resistance to rationalisation introduction of new machinery and change of place

o Non- recognition of trade union
o Rumours spread out by undesirable elements
o Working conditions and working methods
o Lack of proper communication
o Behaviour of supervisors
o Inter trade union Rivalry etc.
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Now enough of disputes!! Let us find out the ways of improving Industrial relations, that is what steps should
be taken to improve industrial relations.

Measures to improve industrial Relations:

The following measures should be taken to achieve good industrial relations:

(i) Progressive Management Outlook. There should be progressive outlook of the management of
each industrial enterprise. It should be conscious of its obligations and responsibilities to the owners
of the business, the employees, the consumers and the nation. The management must recognize the
rights of workers to organize unions to protect their economic and social interests. (Don’t you
agree?)

(ii) Strong and Stable Union. A strong and stable union in each industrial enterprise is essential for
good industrial relations. The employers can easily ignore a weak union on the plea that it hardly
represents the workers. The agreement with such a union will hardly be honoured by a large section
of workforce. Therefore, there must be a strong and stable union in every enterprise to represent eh
majority of workers and negotiate with the management about the terms and conditions of service.
Please understand that the workers should realize that they have to be united and represent
themselves strongly.

(iii) Atmosphere of Mutual Trust. Both management and labour should help in the development of an
atmosphere of mutual cooperation, confidence, and respect. Management should adopt a progressive
outlook and should recognize the rights of workers. Similarly, labour unions should persuade their
members to work for the common objectives of the organization. Both the management and the
unions should have faith in collective bargaining and other peaceful methods of settling disputes.

(iv) Mutual Accommodation. The employers must recognize the right of collective bargaining of the
trade unions. In any organization, there must be a great emphasis on mutual accommodation rather
than conflict or uncompromising attitude. One must clearly understand that conflicting attitude does
not lead to amicable labour relations; it may foster union militancy as the union reacts by engaging
in pressure tactics. The approach must be of mutual “give and take rather than “Take or leave.” The
management should be willing to co-operate rather than blackmail the workers.

(v) Sincere Implementation of Agreements. The management should sincerely implement the
settlements reached with the trade unions. The agreements between the management and the unions
should be enforced both in letter and spirit. If the agreements are not implemented then both the
union and management stop trusting each other. An environment of uncertainty is created. To avoid
this, efforts should be made at both ends to ensure the follow up of the agreements.

(vi) Workers’ Participation in Management. The participation of workers in the management of the
industrial unit should be encouraged by making effective use of works committees, joint consultation
and other methods. This will improve communication between managers and workers, increase
productivity and lead to greater effectiveness. (This will be discussed later in much detail.)
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(vii) Sound Personnel Policies. The following points should be noted regarding the personnel policies.
The policies should be:

• Formulated in consultation with the workers and their representatives if they are to be implemented
effectively.
• Clearly stated so that there is no confusion in the mind of anybody.
• Implementation of the policies should be uniform throughout the organisation to ensure fair
treatment to each worker.
•
Last but not the least, is the role of the government.

(viii) Government’s Role. The Government should play an active role for promoting industrial peace. It
should make law for the compulsory recognition of a representative union in each industrial unit. It
should intervene to settle disputes if the management and the workers are unable to settle their
disputes. This will restore industrial harmony.
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Definition of Industrial Disputes

According to Section 2 (k) of the Industrial Disputes Act,

1947 “industrial dispute” is defined as,

“Any disputes or differences between employers and

employers, or between employers and workmen, or between
workmen, which is connected with the employment or non-
employment or the terms of employment or with the
conditions of labour, of any person”
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Parties to Industrial Disputes

• Employers and Employers

• Employers and Workmen
• Workmen and Workmen

Effects of Industrial Disputes

• On the Economy
• On the Employer
• On the Employees
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Weapons used by Labour

• Strike
• Boycott
• Picketing
• Gherao

Weapons used by Management

• Employers Association
• Lock out
• Termination of Service.
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Causes of Industrial Disputes

• Economic
• Political
• Personnel
• Indiscipline
• Misc.

Strengthening Industrial Relations

• Progressive Management out look
• Strong & Stable Unions
• Mutual Trust.
• Mutual Accommodation
• Sincere Implementation of Agreements
• Workers participation in Management
• Sound personnel policies
• Government's Role.