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”.
The definition identifies three parties to disputes.
They are:
1. Employers
2. Employees
3. Workmen.
Workmen 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 related to employment or non-
employment or with the conditions of labour. 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.
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. It is agreed 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.
1. Industrial dispute is a dispute or difference –
(i) Between employers and employers, or
(ii) Between employers and workmen or
(iii) Between workmen and workmen.
2. Industrial dispute relates to –
(i) Employment or
(ii) Non-employment or
(iii) Terms of employment or
(iv) Conditions of labour of any person.
Causes of Industrial Disputes
There has always been contradiction between the interests of employers and workers.
Employer class has always adopted an indifferent attitude towards workers. Their
tendency has always been to exploit the workers. Lack of human behaviour with workers,
lack of proper working conditions, low wages and over-looking the interests of the
workers are the things not new for the employers. It is the constant endeavour of the
employers to keep the lion’s share of the profit with them.
On the other hand, worker class wants good working conditions, more opportunities of
development, participation in management and profit sharing. When employers do not
adopt just and co-operative attitude towards labourers, there spreads discontentment
among the latter. What follows is industrial conflict? When employers are more
concerned with their vested interests and pay no attention to the reasonable and just
demands of the workers then the latter indulge in such activities as aggravate industrial
disputes.
Causes of industrial disputes can be divided into four major parts i.e., economic causes,
managerial causes political causes and other causes.
1. Economic Causes:
Most of the Industrial Disputes are due to economic causes. Directly or indirectly
economic causes are at the back of industrial disputes. Main economic causes are as
under:
(1) Low Wages:
In industries wages are low. As a result, it becomes awfully difficult for the labourers to
meet their minimum necessaries. Labourers demand that wages should commensurate
with the amount of work. Such a demand leads to industrial disputes. Demand for higher
wage-rate is the most dominant cause leading to industrial disputes.
(2) Dearness Allowance:
Increasing cost of living is another factor responsible for industrial disputes. In order to
neutralize it, workers demand additional remuneration in the form of dearness allowance.
Rising prices are at the root of demand for dearness allowance and non-acceptance of this
demand leads to industrial dispute.
(3) Industrial Profits:
Workers are an important part of production. Profits of the employers multiply because of
the untiring labour of the workers. That they should not be treated as a part of machine is
the persistent demand of the workers, rather they be considered as partner in production.
On the basis of this concept, they demand share out of the increasing profit. When this
profit-sharing demand is rejected by the employers, industrial dispute crops up.

(4) Bonus:
Demand for bonus is also a cause of industrial dispute. Workers consider bonus as
deferred wage. Demand for payment of bonus constitutes cause of industrial dispute.
(5) Working Conditions:
In India working conditions of the workers are not satisfactory. Obsolescence of
machines, lack of safety provisions, inadequate light arrangement, less moving space,
lack of other necessary facilities, are the normal features of industrial units. Demand for
better working conditions on the part of the workers also contributes to industrial
disputes.
(6) Working Hours:
Hours of work is another matter of controversy between employers and workers. Despite
legislation to this effect, it is always the intention of the employers to keep the workers
engaged for long hours at low wages. It is opposed tooth and nail by the workers. Result
is industrial dispute.
Other Causes:
(i) Safety of work,
(ii) Modernisation of machines,
(iii) Pension, Gratuity, Provident Fund and other Beneficiary Schemes,
(iv) Medical and accommodation facilities,
(v) Leaves and Leaves with pay,
(vi) Share in Profits.
2. Managerial Causes:
Success of an organisation depends largely on its managerial capacity. Growth of the
organisation is based on the policies of the management. If the management pursues
appropriate policies, development of the industrial unit will be automatic. But many a
time, due to wrong policies of the management, disputes get accentuated. Managerial
causes of industrial dispute are as under:
(1) Non Recognition of Unions:
Employers’ attitude towards trade unions has been antagonistic from the very beginning.
They do not want that labourers should organise themselves. Hence, to prevent the
workers from uniting, they refuse to recognise their unions. It leads to conflict between
the employers and the workers. In order to create rift among the workers they deliberately
recognise the rival union.

(2) Violation of Agreements:

Employers and workers do enter into agreements on various issues. On many occasions,
the employers do not enforce these agreements nor do they strictly adhere to them. It also
accounts for dispute between the two parties.
(3) Ill-Treatment by Managers and Supervisors:
Managers and supervisors consider themselves to be superior. It is under the influence of
this superiority complex that they ill-treat the workers. The same is vehemently opposed
by the trade unions.
(4) Defective Recruitment Procedure and Employees Development Policies:
Defective Recruitment system also gives rise to industrial disputes. Many a time, workers
are recruited by the middlemen who get bribe from them. They take undue advantage of
the helplessness of the workers. Defective development policies like favoritisms in
promotion, unnecessary and biased transfer, casual approach towards training facilities,
on the part of employers also contribute to industrial disputes.
(5) Wrongful Retrenchment, Demotion and Termination:
Sometimes on account of fall in production labourers are retrenched. Those workers who
take active part in trade union activities are demoted. Sometimes employers terminate the
services of the workers without assigning any reason. All these provocative acts of the
employers are not only strongly opposed by the trade unions but also serve as good cause
for industrial disputes.
(6) Selfish Leadership:
Lack of right and effective leadership weakens the trade unions and the employer class
takes advantage of it. In order to serve their selfish ends, these leaders enter into unholy
alliance with the employers against the interests of the workers. Often this also becomes
cause of dispute.
(7) Violation of Accepted Code of Conduct:
Code of conduct refers to the terms accepted by both the parties and both the parties are
required to abide by it. Employers agree to all the codes on paper but fail to carry them
out in practice. As a result, workers oppose it.
(8) Collective Bargaining and Workers’ Participation in Management:

In the modern industrial world, labour class is seized with new awakening and is
influenced by new concept of management. Trade unions, therefore, insist on workers’
participation in management. By collective management they try to protect their interests
to the maximum. The employers oppose it. The inevitable result is industrial dispute.
3. Political Causes:
Political causes are no less significant than economic and managerial causes in
accounting for industrial disputes. Chief among them are as under:
(1) Influence of Politics:
In a country like India, influence of politics on trade unions is clearly visible. Political
parties have been using their influence on trade unions for their selfish ends. Parties
mislead the unions and instigate industrial unrest.
(2) Trade Union Movement:
Ever since trade union movement got recognition, industrial disputes have multiplied.
Many a time trade unions take undue advantage of their position and this results into
industrial dispute.
(3) Strikes against the Government:
During the struggle for independence labour-class had taken leading part in it. Now this
class directs its struggle against the government thereby adding fuel to industrial disputes.
Other Causes:
(1) Government’s inclination to support management.
(2) Internal conflicts in Trade Unions.
(3) Resistance to automation.
(4) Influence of Communist thinking on labourers.
(5) Effect of non-acceptance of Human Relations.
Impacts of Industrial Disputes are:
Impact # 1. Disruption in Production and Services:
The industrial disputes result in huge wastage of man-days and dislocation of production
work. A strike in public utility concerns like water and electric supply units, posts and
telegraph or telephone’s services, railways or roadways, any system of public
conservancy or sanitation, hospitals, defence establishments etc., disturbs the whole
public life and throws the economy out of gear. Consumers are subjected to untold
hardships. If the struck commodity happens to be used in other production operations,
then other producers also suffer.
When industrial dispute results in stoppage of work, supply position of the struck
commodity becomes grim and prices of that commodity shoot up. The position becomes
severe if the product is consumer goods of daily use.
Impact # 2. On Employers:
The employers also suffer heavy losses, not only through stoppage of work, reduction in
sale and loss of market due to none or short supply of the product, but also in the form of
huge expenditure on crushing downs the strikes. They must undertake publicity and
propaganda to put their view point before the public.
Impact # 3. On Workers:
The workers are also badly affected in more than one way. They lose their wages for the
strike period. Sometimes, they lose their employment. They must incur debts to meet
their day-to-day expenses. Future prospects become dim. Disruption in family life, person
hardship, mental agonies, tortures, and tensions develop and persist.
The workers are prosecuted, often intimidated, even victimized, or beaten mercilessly by
goondas, repressed by police. If strikes etc., fail, the workers, besides inflicting financial
loss, are demoralized, disappointed and shake their confidence in trade unions.
Impact # 4. On Society/Public:
The public/society too, is not spared. Industrial unrest creates law and order problem,
ceasing a huge additional expenditure out of public exchequer. Further, even when the
disputes are settled, strife and bitterness continue to linger endangering happy social and
industrial relations.
Impact # 5. On National Economy:
The industrial disputes also affect the national economy adversely when labour and
equipment in the whole or any- part of the industry are rendered idle by strike or lock-
out, national dividend (income) suffers a lot. It may happen in two ways on the one hand,
by impoverishing the workers indulging in the stoppage of work, it lessens the demand of
goods produced by other industries on the other hand, if the struck industry is such that
supply goods and services to other industries, it lessens the supply of them of raw
material or equipment to work. The result is loss in production, ultimately reducing the
national income. Consequently, public expenditure on welfare of public is reduced.
Development activities cannot be undertaken for want of finances.