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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, therewill 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.)
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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 maximumpossible 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.
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Definition:An Industrial Dispute is defined as any differencebetween the employers and the employees or between
the employers and the workmen or between theworkmen and the workmen which is connected with theemployment or non-employment or the terms ofemployment or with the condition of labour of any
person.Thus, three essential features can be emerged in anindustrial dispute and they are:
1. There must be a difference between the two classes ofpeople and the difference arises due to the non-fulfilment of any demand raised by the workers.
(contd.)
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2. The difference must be between the employers andemployees or between employers and workers or betweenthe workers and workers.
3. The difference must pertain to employment or unemploymentor the terms of employment or with the condition of labour.
Types of Industrial Dispute
Generally, industrial disputes arise in the form ofstrike and lock out. A strike is a collective stoppage ofwork undertaken by a group of employees in order tobring pressure on those who depend on the sale and
use of the products of the workers. According toF.Peterson, Strike is a temporary stoppage of workundertaken by a group of employees in order toexpress certain grievances or to enforce certain
demands relating to changes in work conditions.
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(contd)
Therefore, a strike may have the following essentials:
a) Plurality of the workmen.
b) Collective stoppage of work or mass refusal ofemployees to perform work.
c) Joint action of the workers.
Different types of strikes may be undertaken by theemployees in order to express their industrial demandsfrom time to time. Thus sit in, stay in, sit down and evenlie down strikes are often undertaken by the workers.Likewise, there may be general strike on political andeconomic grounds. There may also be protest strikeagainst some wrong treatments done by themanagement. Similarly there is sympathetic strike wherethe protest is done out of the sympathy of the fellowworkers working in different organizations. There mayalso be sectional strike where a section of the workers
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(contd)declare strike as well as bumper strike where the employeesfulfill their demands forcefully. Likewise, there may also be
pen down or hunger strike in order to show the dissatisfactionon the part of the workers. So, we can say that strike is aweapon available to the employees in order to express theirindustrial demands.
Lock Out: Lock out means a refusal by the employers to letthe workers enter into a factory or an industry until they agreeto certain conditions. A lock out is defined as closing of a placeof employment or a suspension of work or the refusal of theemployers to continue to employ any number of person
employed by them. When the employers find it difficult tofulfil the demands of the workers then a lock out might bedeclared. Thus, we can say that a lock out is a strong weaponavailable to the employers in order to suppress the demandsraised by the workers.
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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.
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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 theoutcome 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.
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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 asfollows
a) Wage structure and the demand for payment of higher
wages from time to time.
b) Demand for payment of bonus and allowances from
time to time.
c) Demand for reduction of number of working hours.
d) Protest for unjust dismissal without sufficient grounds.
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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 workers standard
of living.
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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 ofworkmen are the prime causes of industrial
dispute.
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Non-Economic Causes
The various non-economic causes for industrial disputes
include : Administrative Causes, Workers 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.
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ii. Workers Organization: The refusal of theemployers to recognize various workers
organization as well as the leadership of the workersmay create dissatisfaction and discontentmentamong the workers which eventually expressed bydeclaring strike and other form of industrial dispute.
iii. Strike in other Industry: Industrial Dispute mayalso arise due to declaration of strike by the workersof other organization. This type of strike or industrialunrest arises out of sympathy of the fellow workersworking in different organizations. By giving a moralsupport to such strike, a longing demand of theworkers may be fulfilled.
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iv. Industrial Disciplines: These are mere rules and
regulations framed by the management in order tohave 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 differencesemerge in the smooth functioning of the process
of the industry. This difference eventually causes
the industrial disputes.
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v. Social and Psychological Causes: Social andPsychological Causes like difference in personalitiesbetween the employers and employees, maladjustment in
behaviour from the part of management, authoritarianattitude of the management, lack of freedom for selfexpression on the part of the workers, undue emphasis onindustrial disciplines, etc. may often cause industrial
disputes.
vi. Institutional Factors: Institutional factors likearrangement for unionalisation, issues relating to the
recognition of leadership of the workers, issues relating tomembership of the workers, issues relating to the scopeof collective bargaining etc. may cause dissatisfaction anddiscontentment among the workers which are responsiblefor subsequent causes of industrial dispute.
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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 ofthe 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 workers leader under the guidance of
management without having sufficient grounds
may also cause industrial dispute.
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Settlements of Industrial Disputes
The various methods to settle an industrial disputeare:
Collective Bargaining
Negotiation Conciliation orMediation
Arbitration/Adjudication
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Collective Bargaining: Collective Bargaining is a techniqueby which dispute as to conditions of employment, areresolved amicably, by agreement, rather than by coercion.
The dispute is settled peacefully and voluntarily, althoughreluctantly, between labour and management. In thecontext of present day egalitarian society, with its fastchanging social norms, a concept like collective bargainingis not a capable of a precise definition. The content andScope of collective bargaining also varies from country tocountry. Broadly Speaking Collective bargaining is a processof bargaining between employers and workers, by whichthey settle their disputes relating to employment or non-
employment , terms of employment or conditions of thelabour of the workman, among themselves, on the strengthof the sanctions available to each side . Occasionally, suchbargaining results in an amicable settlement, arrived at
voluntarily and peacefully , between the parties.
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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 partyintervention. 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.
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(contd)
Negotiation does not impose any kind of compulsion orobligation on the part of the parties to over works and accept
the same. About 49% industrial disputes are annually sortedout with the help of this machinery. Thus negotiation creates awelcome trend for industrial peace and harmony-both insideand out side the industry. In other words, it creates a healthyworking environment in the industrial premises. In the
following industries this method is popularly and successfullyadopted to settle their disputes:
1) Textile Industry
2) Plantation Industry
3) Electrical Goods Industry
4) Chemical Indusustry
5) Oil and Refinery Industry
6) Coal andMine Industry
etc.
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Conciliation orMediation:
It is a method through which an Industrial Dispute is
settled with the help of a third party intervention. Thethird party may be a person or a group of persons havingsufficient knowledge and conciliation art. Whennegotiation machinery cannot function to bring about an
amicable solution to the dispute, then conciliation ormediation is adopted as an alternative method of settlingindustrial dispute.
Conciliation or Mediation implies the existence of a
conciliator or a mediator who is expected to have vastknowledge and experience on the matters of industrialdisputes. The main responsibility of a conciliator is toreconcile the disputed parties so that the partiesvoluntarily ready to give up difference. To achieve this
objective, a conciliator provides his valuable suggestions ,
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(contd)
advice and even persuation to the parties. If the parties
follow his valuable suggestion and advice without anyprotest, 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 thestand 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 cannotimpose his personal will and judgement compulsorily
upon the parties.
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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 whenthe 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
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( 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 ofwork is allowed on the part of the parties.
Generally, a time limit is fixed to complete
conciliation proceedings.
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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 independentstatus 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
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(contd.)
punished. Arbitration is more judicial in nature and thejudgement or award of the arbitrator has the resemblanceof courts, judgements or awards. Generally, thearbitration does not care for any recommendation of theparty and the arbitrator pronounces his judgementwithout influencing from outside forces. The judgement is
final and binding to the party, isolation of which may leadto additional punishment to the party.
An arbitration may be compulsory or voluntary. Incase of compulsory arbitration, an ID is placed before the
arbitrator for adjudication. Therefore all judicialformalities are followed in compulsory arbitration. Assuch, it requires the production of subsequent witness,power to prove or investigation and lastly theenforcement of awards. On the other hand, in voluntary
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( contd.)arbitration, an ID is voluntarily submitted before
arbitrator to seek any measure to the ongoingcontroversy. 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 andenforcement 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 DeepakMiglani ( www.google.com)
www.google.com
IGNOU StudyMaterial ofM.S.O.