Industrial Dispute

Industrial dispute is a product of large scale industry of the modern complex industrial society. In modern industrial system, there always exists a conflict between the employers and the employees. The employers are the capitalists and the employees are the labourers. The capitalists supply capitals and the employees sell their services. Thus, two distinct classes arise in an industry or a factory. There is always an opposite and conflicting attitude or interest between both the classes, which is the main cause of industrial disputes. If they remain in same and one hand, just like in the cottage industry, there will be no conflict. But as soon as they are separated, which is found in case of large scale industry, there arises a tendency to exploit the weaker section by the stronger section. Usually this tendency gives rise to industrial dispute in modern industry. (contd .)

When labourers sell their services and compel to live in an industry, a varying amount of dissatisfaction and discontent is likely to occur. Usually, labourers expect higher wages, healthy working environment-both inside and outside the industry, protection against the loss of wages, protection against overwork etc. Besides these, they always protest against the arbitrary treatment from the part of management. On the contrary, the employers are always interested in maximum possible services from the workers, maximum production and profit from them at lower cost. In other words, each class of people wants to enhance its income and to lead a happier life. This tendency of each group gives rise to industrial dispute. But here it should be mentioned that the conflict between one or two workmen with the employees is not an industrial dispute. An Industrial Dispute is constituted when a group or a class of workmen arise a demand and the same is not granted up to their satisfaction.

Definition:
An Industrial Dispute is defined as any difference between the employers and the employees or between the employers and the workmen or between the workmen and the workmen which is connected with the employment or non-employment or the terms of employment or with the condition of labour of any person. Thus, three essential features can be emerged in an industrial dispute and they are: 1. There must be a difference between the two classes of people and the difference arises due to the nonfulfilment of any demand raised by the workers. (contd .)

2. The difference must be between the employers and employees or between employers and workers or between the workers and workers. 3. The difference must pertain to employment or unemployment or the terms of employment or with the condition of labour.

Types of Industrial Dispute Generally, industrial disputes arise in the form of strike and lock out. A strike is a collective stoppage of work undertaken by a group of employees in order to bring pressure on those who depend on the sale and use of the products of the workers. According to F.Peterson, Strike is a temporary stoppage of work undertaken by a group of employees in order to express certain grievances or to enforce certain demands relating to changes in work conditions.

(contd ) Therefore, a strike may have the following essentials: a) Plurality of the workmen. b) Collective stoppage of work or mass refusal of employees to perform work. c) Joint action of the workers.
Different types of strikes may be undertaken by the employees in order to express their industrial demands from time to time. Thus sit in, stay in, sit down and even lie down strikes are often undertaken by the workers. Likewise, there may be general strike on political and economic grounds. There may also be protest strike against some wrong treatments done by the management. Similarly there is sympathetic strike where the protest is done out of the sympathy of the fellow workers working in different organizations. There may also be sectional strike where a section of the workers

(contd )
declare strike as well as bumper strike where the employees fulfill their demands forcefully. Likewise, there may also be pen down or hunger strike in order to show the dissatisfaction on the part of the workers. So, we can say that strike is a weapon available to the employees in order to express their industrial demands.

Lock Out:

Lock out means a refusal by the employers to let the workers enter into a factory or an industry until they agree to certain conditions. A lock out is defined as closing of a place of employment or a suspension of work or the refusal of the employers to continue to employ any number of person employed by them. When the employers find it difficult to fulfil the demands of the workers then a lock out might be declared. Thus, we can say that a lock out is a strong weapon available to the employers in order to suppress the demands raised by the workers.

Lay-Off and Retrenchment

The dictionary meaning of lay-off is an instance of a worker being dismissed temporarily from a job. Lay-off can be defined as the failure or the refusal or inability on the part of the employers on account of shortage of raw materials, fuel and power accumulation of the stocks and many other reasons to provide employment to the workers. On the other hand, retrenchment is the termination of the services of a workman on any grounds except the following: I. Voluntary retirement. II. Retirement for reaching the age of superannuation. III. Termination of services for continued ill-health.

Strike and Lock-out are the basic causes of industrial dispute as they are the outcomes of industrial unrest. They affect the level of wages, employment and industrial production and their reasons are related to industrial unrest. On the contrary, lay-off and retrenchment are not the basic causes of industrial disputes as they are the outcome of trade depression and their reasons are not related to industrial unrest. They also affect the level of wages, employment and industrial production and in many cases are responsible for subsequent causes of industrial disputes.

Main Causes of Industrial Dispute

There are two main causes of industrial disputes, viz--1. Economic Causes and 2. Non-Economic causes.

Economic Causes: The various economic causes are as

a) b) c) d) follows Wage structure and the demand for payment of higher wages from time to time. Demand for payment of bonus and allowances from time to time. Demand for reduction of number of working hours. Protest for unjust dismissal without sufficient grounds.

e) Protest against retrenchment and suspension of the services of the workmen without genuine grounds. f) Demand for leaves and holiday with full payment. g) Demand for implementation of awards to the industrial tribunals. h) Demand for job evaluation from time to time and payment s according to services of the workmen. i) Demand for new methods of production and provision for technical trainings according to methods of production. j) Demand for payment of intensive and other economic benefits from time to time to augment worker s standard of living.

Among the various economic causes of industrial dispute, the demand for payment of higher wages, bonus and allowances, leaves and holidays, and retrenchment of the services of workmen are the prime causes of industrial dispute.

Non-Economic Causes
The various non-economic causes for industrial disputes include : Administrative Causes, Worker s Organization, Strike in other Industry, Industrial Disciplines, Social and Psychological Causes, Institutional Factors and Political causes. i. Administrative Causes: Administrative Causes include the ill treatment by the supervisory staff, ill behaviour of the jobbers, arbitrary treatment of the management part, assaults and abuses, lack of healthy working environment inside and out side the industry, lack of welfare amenities, etc. All these causes often create resentment among the workers which eventually give rise to industrial dispute.

ii. Worker s Organization: The refusal of the employers to recognize various worker s organization as well as the leadership of the workers may create dissatisfaction and discontentment among the workers which eventually expressed by declaring strike and other form of industrial dispute. iii. Strike in other Industry: Industrial Dispute may also arise due to declaration of strike by the workers of other organization. This type of strike or industrial unrest arises out of sympathy of the fellow workers working in different organizations. By giving a moral support to such strike, a longing demand of the workers may be fulfilled.

iv. Industrial Disciplines: These are mere rules and regulations framed by the management in order to have a smooth functioning of the industry. However, such industrial disciplines, in the form of rules and regulations, are very often unjust and arbitrary for which majority of the workers reluctant to follow such industrial disciplines. Whenever the management tries to impose such disciplines upon the workers, then differences emerge in the smooth functioning of the process of the industry. This difference eventually causes the industrial disputes.

v. Social and Psychological Causes: Social and Psychological Causes like difference in personalities between the employers and employees, maladjustment in behaviour from the part of management, authoritarian attitude of the management, lack of freedom for self expression on the part of the workers, undue emphasis on industrial disciplines, etc. may often cause industrial disputes. vi. Institutional Factors: Institutional factors like arrangement for unionalisation, issues relating to the recognition of leadership of the workers, issues relating to membership of the workers, issues relating to the scope of collective bargaining etc. may cause dissatisfaction and discontentment among the workers which are responsible for subsequent causes of industrial dispute.

vii. Political Causes: Industrial Disputes may also arise due to decisions taken by the political parties who form the ruling government. Sometimes government decisions may harm the interest of the workers. Industrial Disputes may also arise due to any change of labour and industrial law which harms the interest of the workers. The arrest of any worker s leader under the guidance of management without having sufficient grounds may also cause industrial dispute.

Settlements of Industrial Disputes

The various methods to settle an industrial dispute are: Collective Bargaining Negotiation Conciliation or Mediation Arbitration/Adjudication

 Collective Bargaining: Collective Bargaining is a technique by which dispute as to conditions of employment, are resolved amicably, by agreement, rather than by coercion. The dispute is settled peacefully and voluntarily, although reluctantly, between labour and management. In the context of present day egalitarian society, with its fast changing social norms, a concept like collective bargaining is not a capable of a precise definition. The content and Scope of collective bargaining also varies from country to country. Broadly Speaking Collective bargaining is a process of bargaining between employers and workers, by which they settle their disputes relating to employment or nonemployment , terms of employment or conditions of the labour of the workman, among themselves, on the strength of the sanctions available to each side . Occasionally, such bargaining results in an amicable settlement, arrived at voluntarily and peacefully , between the parties.

 Negotiation: Negotiation is one of the principal means of settling labour disputes. Negotiation pre supposes the existence of two parties to a dispute eager to negotiate and settle mutually. In negotiation, there is no third party intervention. Through negotiation a mutually settled agreement is reached between the parties or the representatives of the parties. An agreement which is reached mutually may be a treaty or a code and in some respect, a contract. Being a treaty, it aims at reduction the ongoing industrial dispute which is supported by details code of performance of the tasks assigned to the parties regarding offer of works and acceptance of works. However, problem arises when negotiation machinery breaks down and the dispute remains unsolved continuously.

(contd )
Negotiation does not impose any kind of compulsion or obligation on the part of the parties to over works and accept the same. About 49% industrial disputes are annually sorted out with the help of this machinery. Thus negotiation creates a welcome trend for industrial peace and harmony-both inside and out side the industry. In other words, it creates a healthy working environment in the industrial premises. In the following industries this method is popularly and successfully adopted to settle their disputes: 1) Textile Industry 2) Plantation Industry 3) Electrical Goods Industry 4) Chemical Indusustry 5) Oil and Refinery Industry 6) Coal and Mine Industry etc.

Conciliation or Mediation:
It is a method through which an Industrial Dispute is settled with the help of a third party intervention. The third party may be a person or a group of persons having sufficient knowledge and conciliation art. When negotiation machinery cannot function to bring about an amicable solution to the dispute, then conciliation or mediation is adopted as an alternative method of settling industrial dispute. Conciliation or Mediation implies the existence of a conciliator or a mediator who is expected to have vast knowledge and experience on the matters of industrial disputes. The main responsibility of a conciliator is to reconcile the disputed parties so that the parties voluntarily ready to give up difference. To achieve this objective, a conciliator provides his valuable suggestions ,

(contd

advice and even persuation to the parties. If the parties follow his valuable suggestion and advice without any protest, then the ongoing ID or difference between the employer and employees can easily be sorted out; otherwise, it is not. Again, the responsibility of the conciliator is to break the dead-lock , if any, explain the stand and view points of one party to the other, convey messages from time to time and keep the negotiation continue until and unless it is sorted out. It should, however, be remembered that the conciliator cannot impose his personal will and judgement compulsorily upon the parties.

Conciliation may be of two types: 1) Voluntary Conciliation 2) Compulsory Conciliation 1) Voluntary Conciliation: A conciliation is voluntary if the parties are free to make use of the same. In case of voluntary conciliation, on mutual consent of the parties an ID is voluntarily submitted before the conciliation machinery instituted by the government having the person of sufficient knowledge in conciliation art. Here parties generally get ready to follow the decision whatever it may be given by the machinery. 2) Compulsory Conciliation: A conciliation is compulsory when the parties have to participate irrespective of whether they desire to do so or not. Here an ID is compulsorily sent to the conciliation board for seeking appropriate measures to the dispute. It is the responsibility of the State Govt on the parties

( contd )

to send an ID compulsorily to the conciliator or the conciliation board for settlement of the dispute without delay. During the process of conciliation no work stoppage or the suspension of work is allowed on the part of the parties. Generally, a time limit is fixed to complete conciliation proceedings.

Arbitration/ Adjudication
Arbitration is a means to secure a definite judgement or award of any controversial issue by referring it to an authority for adjudication on industrial disputes. On mutual consent of the parties when an ID is sent to a labour court of administrative tribunal, then the process is called as adjudication. Thus compulsory arbitration is often referred to be adjudication. Arbitration implies the existence of an authority who happens to be a judicial person, having sufficient knowledge of judicial matters. The arbitration can enjoy independent status and power in deciding any ID. The parties are heard by the arbitrator relating to ongoing controversy in the industrial set-up. After hearing the parties, the arbitrator announces final judgement or award and accordingly the parties will be

(contd .) punished. Arbitration is more judicial in nature and the judgement or award of the arbitrator has the resemblance of courts, judgements or awards. Generally, the arbitration does not care for any recommendation of the party and the arbitrator pronounces his judgement without influencing from outside forces. The judgement is final and binding to the party, isolation of which may lead to additional punishment to the party. An arbitration may be compulsory or voluntary. In case of compulsory arbitration, an ID is placed before the arbitrator for adjudication. Therefore all judicial formalities are followed in compulsory arbitration. As such, it requires the production of subsequent witness, power to prove or investigation and lastly the enforcement of awards. On the other hand, in voluntary

( contd .)
arbitration, an ID is voluntarily submitted before arbitrator to seek any measure to the ongoing controversy. The party generally get ready to follow the decision given by the arbitrator in this case. Therefore, it does not require to follow judicial formalities like production of witnesses, power to investigation and enforcement for awards or judgements.

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References
Industrial and Labour Law by D.S.Chopra, Eastern Law House, Kolkata Law Relating To industrial Dispute by V.G.Row, Madras Book Agency, Chennai Industrial Disputes: How to be settled? An article written by Deepak Miglani ( www.google.com) www.google.com IGNOU Study Material of M.S.O.