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The new industrial set up has given birth to the capitalistic economy which divided the industrial
society into groups of labour and capitalists. Capitalists own resources and have possession over
means of production on the other hand; labour sells services which cannot be stored. The
interests of the two groups are not common.
One strive for higher wages and congenial working conditions whereas the other takes advantage
of workers’ poor bargaining power and deny them their due rights. Besides, the employers want
higher productivity. When these two conflicting interests clash, industrial disputes arise.
Although there is multitude of cause’s blended together, result in industrial disputes, it is not
easy to ascertain the particular cause or causes involved. Surface manifestation of work stoppage
may cover deep-seated and more basic causes which cannot be observed at first sight.
It has been observed by the experts of industrial relations that the cause of conflict between the
two parties is the same in all capitalistic economy.
Causes of industrial disputes can be broadly classified into two categories: economic and non-
economic causes. The economic causes will include issues relating to compensation like wages,
bonus, allowances, and conditions for work, working hours, leave and holidays without pay,
unjust layoffs and retrenchments. The non economic factors will include victimization of
workers, ill treatment by staff members, sympathetic strikes, political factors, indiscipline etc.
(The Industrial Disputes Act, 1947 governs rules for the settlement of disputes between the
management of industrial establishments and workmen.
There are a number of causes for industrial disputes which can be classified into four
categories as follows:
(1) Economic Causes:
Really, the most common causes of industrial disputes are economic causes.
The real wages of the workers decline faster with the increase in price level and they feel
dissatisfied with their present emoluments and struggle for the improvement in wages. By having
a cursory glance on the history of industrial disputes; it becomes clear that cause of most of the
industrial disputes was wages. The Indian employer has no clear-cut and enlightened wage
policy.
Both the quantum and the method of bonus payment have led to a number of disputes. There is
an increasing feeling among the workers that they should have a greater share in the profits of
the concern and this fact has not been recognised by the employees and non-acceptance of this
fact has been a source of friction among employers and employees.
Demand for other facilities for meeting out their basic needs such as medical, education,
housing, etc., encourage the workers to resort to direct action because such facilities were denied
by the employers.
Moreover, the management is generally not willing to talk over the dispute with the workers or
workers’ representatives or refer it to ‘arbitration’ even when the workers are willing to do so.
They are not in a position to commit anything to workers on behalf of the management.
Defective management leadership ignored the labour problems and inefficient labour leadership
could not coordinate the efforts of their fellow members, so disputes arise.
The Code of Discipline and the Industrial Truce Resolution adopted by the central organisations
of employers and employees also stress the significance of voluntary arbitration. It was agreed
by the two partners of industry that any dispute would be referred to voluntary arbitration if
conciliation efforts fail and settle the dispute mutually and without recourse to legal remedies.
The Government of India took note of the intention of both the parties and set up the National
Arbitration Promotion Board in July 1967, to promote voluntary arbitration to settle industrial
disputes. The Board comprises of the representatives of the employers’ and employees’
organisations, public undertakings, and the Central and State Governments.
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The object of the Act is to require employers to diffuse with sufficient precision, the conditions
of employment in the establishments- under him and to let the workers know. Such conditions
include conditions of recruitment, discharge, disciplinary action, holiday, leave etc., of the
workers.
This Act applies to all establishment employing 50 or more workers. In 1961, the Act was made
applicable to some other establishments employing even less than 100 workers at the instance of
State Governments. Under the Act, each employer is required to certify the standing orders by
the certifying officer to make them effective in the establishment.
These Councils have equal representative of workers and management. The main function of
these councils is to make consultation in matters relating to workers. All matters which are
subject to collective bargaining have been excluded.
(b) In some undertakings, there is no union at all recognised or unrecognised. They have not
been allowed to form a union, and therefore, they are deprived of their right of collective
bargaining.
(c) The workers generally are uncertain with the activities except wages.
(d) Trade union leaders, themselves aim at fulfilling ulterior motives leading to thwarting the
attempts of trade union unity.
(iii) Political instability, Centre-State relations, general responsibility or all fronts are reflected in
industry resulting in industrial conflict.
(iv) Other potential factors such as rampant corruption in industrial and public life, easy money,
conspicuous consumption, permissive society, character crises and genera! Break down in the
national morale have brought in their train debasement of social values and social norms— all
these can and have perpetuated all kinds of unrest, including industrial unrest.
Thus, industrial disputes are the result of so many causes. Sometimes, a number of causes
collectively contribute to the dispute. All the actors of industrial relations viz. employers,
workers and the Government in maintaining industrial peace must try to redress any grievances
before it takes form of a dispute.