INDUSTRIAL CONFLICT

PRESENTATION BY:EESHA MEHTA

MANIFESTATIONS OF

Meaning of Conflict

The Webster's dictionary conceives conflict both as a noun and a verb

As a noun it refers to a sharp difference, disagreement, collision or opposition of interests, ideas, etc, clash, hostility;

Conflict emphasizes process rather than the end- conflict over sharing the profits

According to Newstorm and Davis, “conflict is any situation in which two or more parties feel themselves in opposition”

Definition

Stephen Robins defines conflict as “ a process that begins with a party perceives that another party has negatively affected, or is about to negatively affect, something that first party cares about”.

It encompasses the wide range of conflicts that people experience in organizations- incompatibility of goals, differences over interpretations of facts, disagreements based on behavioral expectations and like

Nature of Conflict

Conflict is a process in which one party perceives that its interests are opposed or negatively affected by another party.

The process word implies that sources of conflict and issues can be real or imaginary. Whether real or imaginary the result of conflict is same

Conflict occurs whenever disagreements exist in social situations over issues of substance and /or emotional antagonisms.

Nature of Conflict

Conflict can escalate (strengthen) or de-escalate (weaken) over time

The conflict process unfolds in a context- escalates or not and whenever conflict occurs the disputants or third parties attempt to manage it in some manner

Consequently we need to understand the dynamics of conflict and know how to handle it effectively.

Industrial Conflict

IC has negative connotation for many… strikes, lockouts, rallies etc.

IC is institutionalized through conciliation and arbitration

It has a stabilizing effect on the industrial society and is instrument of social change.

Conflict has its roots in fundamental rights… the freedom of expression.

IC also means some disorder, the parties involved in a conflict seek to maximize the disorder.

Levels of Disorders (Robert Dubin)

Disorder designed to halt the regular functioning of the organization- strikes, lockouts;

Disorder designed to be disruptive while the organization continues to operate, slowdowns or work-to-rule strikes, unilateral management actions;

Disorder directed at redefining an existing institutional practice to the advantage of the party creating the disorder- grievance procedure. The grievance procedure helps the parties to adjust.

Inevitability of conflict

What makes conflict inevitable in organizations?1. Constant change- industrial societies are dynamic.2. Unlimited needs and desires of the parties3. Divergent interests.4. Greater employee diversity and more groups in

the workforce- formal and informal groups.5. Identity and survival instincts of the parties- union

must resist to retain its identity, management cannot go on agreeing to demands.

6. More dynamic careers (less loyalty to organization)

7. A global economy with increased cross-cultural dealings.

Introduction

Industrial conflicts in organisations are inevitable. For employers to perform their crucial roles effectively and efficiently there must exist a strong cordial relationship between the employees and employers in the organisation.

Employees occupy a very strategic place in an organization because of their centrality to the production process. They contribute a very indefinable role both in the achievement of various organization goals and objectives as well as the government economic programme.

Concept of conflict and industrial conflict

Unions and management tend to have opposite views because of the divergence between the expectations of management and labour in organization which often leads to conflicts.

Conflict by nature is a constant phenomenon in anyhuman organization. It is so ubiquitous in social life that it has been isolated by some as the basic unit for understanding social existence (Ajala, 2003; Alimba, 2010).

SOURCES OF CONFLICT

Conflicts arise in organizations in two ways namely, internal and external.

A. INTERNAL SOURCE This comprise of disagreements arising within the

organisation. Conflict orientations within a work setting centres basically on the opposed nature of the interest of the employers and workers. The employer is seeking the greatest possible output at the least cost. The employer is constantly seeking to lower the wage rate, to lengthen the hours of work, to speed up the workers, to layoff and to discharge workers whenever it is temporarily economical. On the other hand, the union which represents the workgroup is seeking continuous employment for its members at the highest possible conditions in respect of hours of work, security and continuity, safety, comfort, sanitation, esteem and so on.

In this relation, both the employers and the employees want the largest cut of the industrial cake that they both cannot get. Moreover, conflict arises because the needs of all three actors of industrial relations often conflict with one another.

Therefore, according to Otobo (2000), internal sources of conflict would include:

i. Style of managementii. Nature of physical environment of the work placeiii. Orientation or social consciousness of workersiv. Other conditions of servicev. Efficacy or otherwise of the promotion system andvi. Cumbersomeness of grievance and disputes

procedure.

B) EXTERNAL SOURCE

These include government industrial and economic policies, the nature of labor legislation, unpatriotic and unethical behaviour of the political and economic classes, national economic mismanagement and general distribution of wealth and power in the society.

The important thing to note about these factors is that both workers and management respond to them. Some of the external causes of conflict may however not directly instigate industrial conflict, but they do influence general social expectation.

Manifestations of Conflict Manifestations of conflict are not

confined to a single outlet. The means of expressing conflict are as unlimited as ingenuity of a man

The manifestations of industrial conflict can be broadly classified into:

(a) The manifestations of organized group conflict (union management) and

(b)The manifestations of individual and unorganized conflict

Manifestations of Conflict The first type of manifestations of conflict are:i) Strikes, lockouts and removal of machinery,

thereby interrupting the productionii) Organized restrictions of output in the form

of work limitations, slow downs, sabotage and unilateral changes of work standards, piece rates etc.

iii) Conflicts in the interpretation of contract negotiations, implementation of settlement and awards, grievances etc but without work stoppages.

Manifestations of Conflict The other group of manifestations are further

divided on the basis of the party directly responsible for the conflict, into:

i) Industrial conflict resulting from employee behavior, and

ii) Industrial conflict arising from management behavior

The first of these includes unorganized withholding of effort, intentional waste and inefficiency, high labor turnover, and absenteeism, complaints and grievances, violation of rules and regulations etc

Manifestations of Conflict

On the other hand, industrial conflict results from management behavior of the following types

i) Autocratic supervision and over strict discipline and penalties

ii) Unnecessary discriminatory firings, demotions, discharge and dismissals and

iii) Unofficial speedups, etc

Causes of Industrial Conflict

In Indian organizations conflicts have mainly been due to:

1. Wages and allowances2. Bonus3. Personnel matters4. Retrenchment5. Leaves and hours of work/ shift

working6. Indiscipline and violence, and7. Other reasons

Conflict in Indian Industries Major form of conflict- strikes and lock-

outs Extent of work stoppages- before 1991

and after 1991 and contemporary times. Consequences of work stoppages:

1. To workers: wage loss, loss of jobs2. For Management: loss of production,

markets, damages to company property.3. To society: loss/disruption of services4. To the State: loss of revenue

INDUSTRIAL CONFLICTS

INTEREST DISPUTES

GRIEVANCE DISPUTES

UNFAIR LABOR PRACTICES

RECOGNITION DISPUTES

It arises out of deadlocks in negotiations

Arise from day to day grievances

Arise from acts of interference with the exercise of right to organize Acts etc.

Arise due to the recognition of trade unions as a bargaining agent