INDUSTRIAL DISPUTES

Sometimes disagreements can arise between the union and the employer in the process of
collective bargaining and implementation of the agreement.

Definition
An industrial dispute means any conflict, unrest or disagreement between the workers
and the management on any ground. The trade Disputes Act cap 234 of the laws of
Kenya defines it as;
 A difference between employers and employees, or between employers and trade
unions or between trade unions and trade unions connected with employment or
non-employment issues.

The important elements of industrial disputes according to this definition are:

 It must be a problem/conflict related to workers and employer, among employers,
trade unions or workers themselves.
 Workers should be really engaged in work.
 The cause for dispute must be related to work. E.g. dismissal, suspension, work
allocation, recognition of agreements, redundancy etc.

Effects of Industrial Disputes:

Positive effects
 Growth in workers unity. Unity is the basis of industrial disputes, workers tend to
get united, organized and develop a sense of cooperation while disputing.
 Improvements in working conditions and wages. The causes of industrial
disputes are improvements in wages and working conditions. Successful disputes
bring these benefits.
 Progress of labour unions as membership increases.
 Enactment of labour laws. These protect both unions and employers.
 Improvement of employers’ behaviour. With the fear of disputes employers
behave and treat employees better.
Negative effects
 Hardship for workers. Loss of wages, distress, layoffs, etc
 Loss of production – for employer in reduced profits, overtime, customers, image
etc.
 Loss of consumers / production on National Income – due to low production,
there is low revenue, hence decreased incomes and standards of living.
 Social /political disorders – lack of discipline among workers, labour problems
tend to spill over to social and political unrests.
 Decreased Investment – local and foreign. No one wants to risk their investment
in an economically unstable environment.

Causes of industrial disputes
Most disputes are a result of economic reasons and sometimes managerial or political.
Economic Causes:
 Low wages
 Big industrial profits – if employer is earning high profits, workers demand for a
share as they see themselves as partners in the company.
 Working conditions – poor safety and health conditions, abuse, threats of layoffs,
poor sanitation. Etc.
 Working hours – demand for day offs, shorter working hours.
 Demand for fringe benefits e.g. housing, transport, education and training etc.
Managerial Causes:
Includes bad management and policies.

 Lack of trade union recognition.

 Bad recruitment policies and practices such as contract system, poor terms etc.
 Unlawful dismissals
 Lack of implementation of collective agreements.
 Disregard for code of conduct/labour laws by management.
 Poor leadership of both unions and employer organizations.
Political Causes and Others:
 Interference by politicians for own selfish ends – e.g. calls by opposition to
COTU to engage in civil unrest.
 Strikes against the government to agitate for political freedom/independence e.g.
Solidarity Movement in Poland
COSATU in South Africa over apartheid, etc.