Industrial Conflicts: A Statistical Analysis
Pramod Verma and K Kumar
What are the distinct trends and
patterns of industrial conflicts in India
in the past two decades? This article by
Verma and Kumar addresses this issue
and discusses the emerging trends
based on an analysis of considerable
data.
Pramod Verma is Professor and K Kumar
is a Research Associate in the Personnel
and Industrial Relations Area at the Indian
Institute of Management, Ahmedabad.
Vol.17, No3, July-September 1992
The long term trends in industrial conflicts may be
interpreted in terms of the factors and events that
have occurred in the political process, certain
developmental factors such as the region in which
the industry is located, techno-economic factors such
as labour intensive or capital intensive industries, the
sector in which the industry is operating, and the
type of issues that have dominated some time or the
other.
This paper deals with the course of industrial con-
flicts over the last two decades. The data point
towards factors contributing to the incidence of
industrial conflicts in India. The factors that seem to
provide the congruence are conflicts in labour
intensive industries (textiles and jute), conflicts
manifesting in a radically politically organized region
like West Bengal or regions where major metropolises
of India are situated, crises that have arisen in
particular industries at particular points of time, and
the political developments that have taken place at
different times.
Industrial Conflicts:Time Series Data
Data on industrial conflicts in terms of number of
disputes, workers involved, and mandays lost for the
past two decades show a distinct downward trend,
barring a few exceptional years (Table 1). Disputes
have come down from 2,889 in 1970 to 1,149 in 1990.
The number of workers involved has come down from
18,28,000 in 1970 to 9,15,000 in 1990. Mandays lost in
disputes have come down from 2,05,63,000 in 1970 to
1,25,91,000 in 1990.
Industrial Conflicts: Some Indices
The index for disputes with 1970 as the base year
touched the lowest figure of 35.31 in 1989 and
showed a marginal increase to 39.77 in 1990.
Similarly, the workers involved index with 1970 as
the base year touched the lowest figure of 33.28 in
1989 and recorded a moderate increase to 50.05 in
1990. The mandays lost index reached the lowest level
of 60.23 in 1990. However, there were some
exceptional years such as 1973, 1978, and 1982 (Graph
1 and Table 1). After a dip in 1971, the number of
disputes shows a gradual increase in 1972 and 1973
and declines considerably in 1975 and 1976 owing to
internal emergency in India. Another jump is
recorded after the lifting of emergency. During
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1978 and 1979, many public sector employees went on
strike (Table 1). Another peak was reached in 1982
owing to many public sector employees going on strike.
Data on workers involved and mandays lost more or
less show similar trends with peaks in 1974,1979, and
1982 and troughs in 1976 and 1989 (Table 1 and Graph
1). The workers involved index for 1975 shows a low
value of 62.53, whereas the mandays lost index shows
a high of 106.51, indicating a longer duration of conflicts
which is supported by data in Table 6. A similar trend
is visible in 1981,1983, 1985, and 1986 as well. While
there is a decrease in the indices of disputes, workers
involved and mandays lost, the trends show a slower
decline with respect to workers involved and mandays
lost, pointing to longer duration of conflicts.
Data on industrial conflicts in Table 2 in terms of
workers involved per dispute and mandays lost per
dispute add another dimension. The intensity of con-
flict has increased while conflicts per se have shown a
downward trend (Table 2). The workers involved per
dispute index, apart from fluctuating, has gone up to
125.86 in 1990. Except during the emergency period of
1975 and 1976, the workers involved per dispute index
has been higher than the workers involved index for the
respective years, indicating higher intensity of conflicts.
Even for the years 1975 and 1976, though the disputes
index has recorded 67.25 and 50.50, the workers in-
volved per dispute index is slightly higher at 92.97 and
79.83. This indicates a larger number of workers being
involved and higher intensity of conflicts. The workers
involved per dispute index shows four peaks in 1974
(153.58), 1979 (148.97), 1984(147.10), and 1987 (155.49)
(Table 2). The higher figure for 1974 may be because of
the nationwide railway strike. In 1979, there was a strike
by public sector workers (see also Table 7), which ex-
plains the peak in the graph for that year. Similarly, in
1987 also, a large number of public sector workers were
involved in strikes, whereas the actual number of con-
flicts was not as high as that in 1979 (see also Table 7).
The mandays lost per dispute index has been con-
sistently higher than the 1970 figures, except for 1971,
1972, and 1973, indicating an increasing impact of the
disputes. The peak years have been 1974, 1979, 1982,
1984, and 1987. These years, apart from recording
public sector strikes (see also Table 7), have also
recorded a higher proportion of longer duration strikes
(see also Table 6). Interestingly, these years have also
recorded higher number of mandays lost in the textile
industry which ranks first in conflict proneness (see
also Table 4). Data for mandays lost per worker
involved do not show wide fluctuations excepting for the
years 1984, 1985 and 1988, indicating that the
intensity of conflict
remained more or less steady. The years 1984,1985, and
1988 recorded more longer duration strikes as indicated
by Table 6. The year 1984 also saw significantly higher
mandays being lost in cotton textiles and jute industry
(see also Table 4). The mandays lost per dispute index
came down for the years 1971, 1972, and 1973. The
workers involved per dispute index was also lower for
these years. This might be because of fewer conflicts in
the jute industry which recorded fewer mandays lost
for these years (see also Table 4).
A comparative analysis of data on strikes and lock-
outs during 1970-90 (Table 3) shows that there is a
greater incidence of strikes than lockouts and that more
workers have been involved in strikes than lockouts.
Mandays lost because of strikes have been higher than
mandays lost due to lockouts during 1970 to 1980 except
for the years 1976 and 1977, but the mandays lost due
to lockouts have been higher than due to strikes during
the period 1981-1990 except for the years 1981 to 1984
and 1986.
Strikes have come down from 2624 in 1970 to 897 in
1990. The peak years observed earlier (1974,1979, and
1984) have recorded higher figures for strikes in terms
of actual numbers, workers involved, and mandays lost
(Table 3 and Graph 2). A further analysis of data shows
that for the year 1987, while percentages of disputes and
workers involved are higher for strikes, the percentage
of mandays lost is higher for lockouts. While mandays
lost because of strikes went down from 71.73 per cent
in 1970 to 41.8 per cent in 1990, mandays lost because of
lockouts went up from 28.27 per cent in 1970 to 58.2 per
cent in 1990.
Industrial Conflicts: Inter-Industry Data
Table 4 provides data on mandays lost in selected in-
dustries for the period 1970-1989, using the industrial
classification of 1978. However, figures for 1980,1982,
and 1986 were not available. The table provides code
numbers of industries and Annexure 1 provides the list
of industries with their code numbers. Manufacturing
of cotton textiles ranks first, jute manufacturing ranks
second, basic metal and alloy industries rank third,
manufacture of machinery, machine tools, and parts
except electrical machinery ranks fourth, and manufac-
ture of non-metallic products ranks fifth. The least num-
ber of mandays lost was in manufacture of wood and
wood products.
A rank ordering of industries for the period 1970-
1990 on the basis of mandays lost shows that cotton
textiles ranks first in 1971,1972,1973,1979,1981,1983,
1985, 1987, and 1988, and second for the rest of the
period. Jute manufacturing has fluctuated between first
and second positions for many years. Basic metal alloy
industries which ranks third has moved up from
eleventh rank in 1970 to third and fourth ranks in later
years.
A further analysis shows that mandays lost in cot-
ton textiles were higher in 1974 (19.36%), 1979 (25.87%),
1983 (33.98%), 1984 (21.56%), and 1987 (21.42%), but
significantly lower in 1989 (18.18%). Mandays lost in the
jute industry were very high during 1970 (27.27%), 1975
(46.49%), 1976 (33.03%), 1979 (23.32%), 1983 (24.13%),
and 1984 (35%). Transport, storage, and communica-
tions recorded a peak in 1974 (24.23%) which is also the
highest for 1974. This might be because of the railway
strike of 1974. Leather and leather and fur products
recorded peaks in 1978 (4.20%) and 1988 (2.87%)
(Graph 3).
Industrial Conflicts: Inter-State Data
Table 5 provides statewise figures for mandays lost
during the period 1970-1989. The states are ranked on
the basis of average mandays lost. West Bengal ranks
first and the peak years of mandays lost have been 1974,
1975, 1979, 1984, and 1988. Mandays lost came down
significantly in 1989 (Graph 4). The lowest figures of
mandays lost are for 1972. West Bengal has highly
organized trade unions and this is reflected in its rank-
ing. Moreover, the jute industry is concentrated in West
Bengal and this also contributes to higher figures.
Maharashtra ranks second and the peak years of man-
days lost have been 1974,1982, and 1983. The year 1982
touched the peak for mandays lost, which might be due
to lockouts preceding closures in the textile industry.
The figures for 1974 also reflect the general heightened
industrial conflict scenario which preceded the emer-
gency. Tamil Nadu and Kerala rank third and fourth in
mandays lost. The higher ranking of West Bengal,
Maharashtra and Tamil Nadu in terms of mandays lost
is also due to the fact that Calcutta, Bombay, and
Madras are situated in these states. This signifies
heightened industrial conflicts in more industrialized
areas. Industrially less developed regions like Manipur,
Nagaland, Sikkim, Meghalaya, Arunachal Pradesh,
Lakshadweep, and Mizoram record negligible figures
for mandays lost.
Statewise rankings in mandays lost from 1970 to
1989 show that West Bengal has consistently remained
at the top except for 1972,1982, and 1983. The year 1972
witnessed an unprecedented industrial conflict in
Madras with attempts made by the DMK party then in
power to gain control over trade unions. Hence, Tamil
Nadu ranks first in mandays lost in 1972 pushing West
Bengal to the second rank. There were severe crises in
the textile industry in 1982 and 1983 which makes
Maharashtra rank first in mandays lost in these two
years. Maharashtra has remained in the second position
for many years. Tamil Nadu has occupied the third
position for many years and second and fourth posi-
tions for a few years.
A percentage analysis of each state's share to total
shows that West Bengal accounted for 54.6 per cent of
mandays lost in 1970 and 41.18 per cent of mandays lost
in 1989. The share of Maharashtra in mandays lost has
increased from 11.5 per cent in 1970 to 14.95 per cent in
1989. Tamil Nadu accounted for 8.86 per cent in 1970
and 9.69 per cent of mandays lost in 1989. West Bengal,
Maharashtra, and Tamil Nadu together have con-
tributed more than 50 per cent of mandays lost in all
these years. In 1982, the contribution was as high as
84.18 per cent.
Industrial Conflicts: Percentage
Distribution by Duration
Table 6 provides percentagewise distribution of dis-
putes by duration for the period 1970-1990. From the
table it is evident that nearly a fourth of the disputes
have been for a day or less. Similarly another one-fourth
Vol.17, No.3, July-September 1992
of disputes have lasted for less than 5 days. Thus,
nearly half of the disputes are short-term in nature.
Longer duration disputes have steadily increased from
13.2 per cent to 30 per cent in 1987.
Industrial Conflicts: Inter-Sectoral Data
Table 7 provides data in terms of disputes, workers
involved, and mandays lost for the public and the
private sectors, for the period 1970-1990. The number of
disputes in the public sector has fluctuated between 363
and 663, barring a few exceptional years (Graph 5). In
1976, an internal emergency was declared and there
were few conflicts. The period 1978-1983 has witnessed
heightened conflicts with the peak year being 1979. The
number of disputes in the private sector has significant-
ly come down from 2,443 in 1970 to 661 in 1990. The
number of public sector workers involved in disputes
has increased from 4,39,000 in 1970 to 7,05,000 in 1990.
The number of public sector workers involved in dis-
putes peaked during 1974, 1979, and 1987. However,
the number of mandays lost in the public sector has
peaked during 1974, 1981, and 1982 (Graph 5). The
higher figures for 1981 and 1982 may be because of
longer duration of disputes. The number of private
sector workers involved has come down from 13,89,000
in 1970 to 2,10,000 in 1990.
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 Mandays lost in the private sector because of dis-
putes has also come down from 185,01,000 in 1970 to
9734,000 in 1990. The peak years were 1982,1983,1984,
and 1979 (Graph 5). The lowest figure for mandays lost
in the private sector was recorded in 1990.
A percentage distribution in terms of public and
private sector for number of disputes, workers in-
volved, and mandays lost for the period 1970-1990
shows that the number of disputes in the public sector
has increased from 15.4 per cent in 1970 to 42.47 per cent
in 1990 and that in the private sector has declined from
84.56 per cent in 1970 to 57.53 per cent in 1990. Thus, the
two sectors are showing convergent trends in terms of
number of disputes. The share of public sector workers
involved in disputes has increased from 24.01 per cent
in 1970 to 77.04 per cent in 1990, whereas the share of
private sector workers has declined from 75.18 per cent
in 1970 to 22.75 per cent in 1990. The share of mandays
lost in public sector disputes has increased from 10.03
per cent in 1970 to 22.69 per cent in 1990. The share of
mandays lost in private sector disputes has declined
from 89.97 per cent in 1970 to 77.31 per cent in 1990.
The data also indicate that production loss has been
higher in the private sector than in the public sector.
Moreover, production loss in the private sector shows
large fluctuations in comparison to the public sector.
The highest amount of production loss in the private
sector was recorded in 1982 whereas the highest
amount of production loss in the public sector was in
1981. Wages lost because of disputes have not fluc-
tuated much.
Industrial Conflicts: Performance of
Conciliation Machinery
Table 8 provides data on the performance of the dispute
settling machinery for the period 1970-1990. The data
indicate that the percentage of success has declined
from 34.4 in 1970 to 13.5 in 1990. The percentage of
failure has increased from 33.4 in 1970 to 58 in 1990. The
indefinite category of conflicts has come down from 15.2
per cent in 1970 to 1.8 per cent in 1990. This shows that
conflicts are becoming increasingly irreconcilable
through conciliation.
Industrial Conflicts: Distribution by
Causes
Table 9 provides percentage distribution of industrial
disputes by causes for the period 1971-1990. Wages and
allowances seem to be a significant cause of industrial
disputes accounting for 21.8 per cent to 36.1 per cent of
the disputes. However, wages and allowances as a
cause of disputes have come down from 34.3 per cent
in 1971 to 25.2 per cent in 1990. Personnel and retrench-
ment appears to be another significant cause, the figure
varying from as low as 16.7 per cent to as high as 29.9
per cent. However, the share of personnel and retrench-
ment as a cause of industrial disputes has come down
from 23 per cent in 1971 to 16.8 per cent in 1990. The
share of indiscipline and violence as a cause of in-
dustrial disputes has increased from 3.6 percent in 1971
to 17 per cent in 1990. Bonus as a factor did not con-
tribute much to industrial disputes and its share has
come down from 14.1 per cent in 1971 to 3 per cent in
1990. One significant trend is that disputes that could
not be assigned any reason have grown from 23.6 per
cent in 1971 to 37.4 per cent in 1990. In general, conflicts
arise owing to a variety of reasons.
Conclusion
The analysis of data in the preceding sections shows
certain distinct trends. These are as follows:
• There is a congruence between certain industries
and certain regions in contributing to a higher in
cidence of industrial conflicts (the jute industry is
located mostly in West Bengal which is a strongly
unionized region).
• The incidence of industrial conflicts is higher in
regions of higher industrial growth.
• The states of West Bengal, Maharashtra, and Tamil
Nadu together contribute to more than 50 per cent
of industrial conflicts.
• The value of production loss is much higher in the
private sector than in the public sector.
• Of late, industrial conflicts have come down and
strikes are fewer than lockouts.
• Conflicts are lengthening in recent years.
• The closure of textile mills has brought down in
dustrial conflicts in Maharashtra.
• The increasing realization of the need for industrial
harmony and resorting to negotiated settlements
have brought about a decrease in industrial con
flicts in West Bengal.
It is difficult to conjecture on the course of industrial
conflicts during the coming years. There is at present
some uncertainty about the state policy in regard to the
speed of structural readjustment and therefore the
resultant policies and measures. However, industrial
conflicts will continue to be a critical factor in the
viability of Indian organizations. Managements will
Vol.17, No.3, July-September 1992
therefore have to evolve an integrated view of human
resources and to respond constructively and humanely
to conflicting situations in their respective organiza-
tions.
The strategy should consist of negotiated settle-
ments with established trade unions which represent
the workers rather than with unions preferred by
management. The second ingredient of such a strategy
will be to create a climate for self-development and
self-management by the workers. The shocks of the
structural adjustment programme could perhaps be
absorbed by workers if they are themselves involved in
decision making on economic and technological chan-
ges. Finally, both managements and workers may have
to go through traumatic experiences in the process of
restructuring of traditional industries such as textiles
and jute. In such situations, managements may have to
evolve plans for both economic and social rehabilitation
of managers and workers who may be rendered un-
employable and which may add to industrial and social
conflicts.
Industrial conflicts cannot be wished away as long
as there are conflicting interests in the control over
production processes and in compensating wage
labour. Industrialization would certainly lead to higher
industrial conflicts. However, attempts can be made to
minimize industrial conflicts by resorting not only to
negotiated settlements but also to the democratization
of industrial relations.
Data Sources
1. Labour Bureau, Pocket Book of Labour Statistics,
Chandigarh/Shimla, Ministry of Labour, Govern
ment of India, (Various Issues).
2. Labour Network Wing, Network in Labour Statistics
and Research, Chandigarh, Ministry of Labour,
Government of India, 1990.
3. Labour Bureau, Labour Bureau's Labour: Master Ref
erence Book, Chandigarh/Shimla, Ministry of
Labour, Government of India, 1989.
17