Industrial Dispute - Copy

8/6/2019 Industrial Dispute - Copy

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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.

Industrial Dispute - Copy

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