Industrial Dispute

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Main Causes of Industrial Dispute in an organization:

Disputes may result from various causes: psychological, potential, and economic. The most common cause of strikes has been economic reasons; other reasons have been influenced by nationalist, communist, and commercial ends. The Labor Bureau of Simla has observed causes such as: wages and allowances, bonus, personnel, vacation and work timings, violence (added in 1971), etc. An analysis has revealed the following facts:

During 1921-1931:
• 15.2% of demands were related to wages.
• 4.6% of demands were related to bonus.
• 4.4% of demands were related to vacation days and work-timings.
• 18.5% of demands were related to others.

During 1939-1947:
• 44.1% of demands were related to wages.
• 7.9% of demands were related to bonus.
• 15.6% of demands were related to personal matters.
• 5% of demands were related to vacation and work-timings.

During 1948-1957:
• 28.1% of demands were related to wages.
• 9.1% of demands were related to bonus.
• 30.9% of demands were related to personal matters.
• 7.2% of demands were related to vacation days and work-timings.

Mr. V.B. Singh defines industrial disputes falling under these categories:
1. Income (wage items, price rates, allowances, bonus, minimum and basic wages, etc.)
2. Employment (holidays, leaves like sick leave, etc., work-timings, welfare activities, etc.), and
3. Technological changes (workload, standardization of raw materials, etc.).

Industrial peace has, at a certain extent, worsened in the past few years. The social gap between management and labor has increased, resulting in increased disparities and frustration. Industrial peace has to be developed with mutually understanding the issues of labor, and it is imperative to have proper communication between management and labor union. Three ways to establish industrial have been suggested by the Royal Commission on Labor:

1. Appoint a labor officer who ensures labor welfare and serves as a representative to management.
2. Constitution of Works Communities for different industries, and
3. Development of stable and responsible trade unions.

Additional Readings:

1. Definition and Evolution of Industrial Relations
2. Concept, Scope and Objectives of Industrial Relations
3. Conceptual Model for understanding Industrial Relations
4. Labor National Commission and Industrial Relations Policy - 1969
5. Industrial Dispute
6. Indian Industrial Dispute Act of 1947
7. Parameters and Classification of Industrial Disputes
8. Types of Industrial Strikes
9. Tripartite and Bipartite Bodies, and Industrial Settlement
10. Definition of "Mediation" and "Conciliation"

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Page accessed on: July 29, 2010, 11:28 am.

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