INDUSTRIAL DISPUTE

DEFINITION & INTRODUCTION

O According to ID Act,1947,sec.2(k), industrial dispute means any dispute or difference between

employers and employers, or between employers and workmen or between workmen and
workmen, which is connected with the employment or non-employment or terms of
employment or with the conditions of labour of any person”.
O it may be defined as conflict or difference in opinion between management and workers on the
terms of employment.
O It is disagreement between an employer and employees’ representative over pay and working
conditions and result in industrial action.
O The dispute generally arise on account of poor wage structure or poor working conditions. This
disagreement or difference could be on any matter concerning the workers individually or
collectively.

For a dispute to become Industrial dispute.

O It should satisfy the following essentials:-

(1) There must be a dispute or difference

(a) Between employers( such as wage-welfare where labour is scarce)

(b) Between employers and workmen (such as demarcation disputes)
(c) Between workmen and workmen.

(2) It is connected with the employment or non-employment or terms of the employment or with
the condition of labour of any person or it must pertain to any industrial matter.

(3) The relationship between the employer and the workman must be in existence .

Classification
(A) Dispute that arise out of deadlocks in the negotiation for a collective agreement, popularly
known as interest dispute.

(B) dispute that arise from day-to-day workers’ grievances or complaints, known as grievance
dispute.

(C) Those arising from acts of interference with the exercise of the right to organise, or acts
commonly known as unfair labour practices.

(D) Dispute over the right of a trade union to represent a particular class or category of workers for
purpose of collective bargaining, simply referred to as recognition dispute.
 (A) Interest dispute
• Also known as economic dispute.
• In some countries also known as collective labour disputes.
• They relate to the determination of new terms and conditions of employment for the general
body of worker.
• The dispute originate from the trade union demands or proposals for improvement in wages,
fringe benefits, job security or other terms of employment.

(B) Grievance or right dispute

O Also known as conflicts of rights or legal disputes.

O They involve individual workers only or group of workers in the same group and correspond
largely to what in some countries are called individual dispute.
O Generally arise from day-to-day working conditions
O The grievance typically arise on questions like discipline and dismissal, the payment of wages
and other fringe benefits, working time,over-time,time-off,promotion,demotion,fulfillment of
agreement etc.
O In some countries grievance arise especially over the interpretation and application of collective
agreements.it is called as interpretation disputes.

(C ) Disputes over unfair labour practices

O Other unfair labour practices are generally concerned with interference, restraint or coercion of
employees when they exercise their rights to organise, join or assist union, refusal to bargain
collectively, failure to implement an award, settlement or agreement.
O These unfair labour practices are also known in various countries as trade union victimisation.
O In many countries special procedures are exists under the law fir the prevention of such
practices.

(D) Recognition dispute

• This type of dispute arise when management of an undertaking or employer’s organisation

refuses to recognise a trade union for the purpose of collective bargaining.
• It may be management dislike trade unions and will not have anything to do with a trade union,
the problem is than attitude.

Causes of industrial dispute

1. Economic causes:-

These causes may be classified as a

O Demand for increase in wages on account of increase in all India consumer price index for
industrial workers,
O Demand for higher gratuity and other retirement benefits

O Demand for certain allowances such as HRA, medical allowances, night shift allowances,
demand for paid holidays, reduction in working hours, better working conditions

(2) Political causes:-

O Various political parties control trade union in India.in many cases, their leadership vests in the
hands of the person who are more interested in achieving their political interests rather than
workers interest.

3.Personnel causes:-

O Personnel problems like dismissal,retrenchment,layoff,transfer,promotiom etc.

4.indiscipline:-

O ID takes place because of indiscipline and violation on the part of workforce.

5. Environment factor:-

O Inflation

O Recession

O Natural calamities

O Political interference

O Non-implementation of law

6.Management factors:-

O Attitude (leadership style)

O Refusal to recognize union

O Ineffective communication

O Violation of codes/agreements/awards

7.Trade union factors:-

O Support for poor work ethics or for indiscipline

O Providing protection for indiscipline workers

O Wages, allowances and working conditions

O Workload
O Organization changes/modernization/technological changes

O Closure/lockout/merges

COLLECTIVE BARGAINING
 Collective bargaining is a process of negotiating between management and workers represented
by their representatives for determining mutually agreed terms and conditions of work which
protect the interest of both workers and the management.

 Michael J. Jucious has defined collective bargaining as “a process by which employers, on the
one hand, and representatives of employees, on the other, attempt to arrive at agreements
covering the conditions under which employees will contribute and be compensated for their
services”.

Objective

1. To foster and maintain cordial and harmonious relations between the employer/management
and the employees.

2. To protect the interests of both the employer and the employees.

3. To keep the outside, i.e., the government interventions at bay.

4. To promote industrial democracy.

Importance
1.Collective bargaining develops better understanding between the employer and the employ-
ees:

It provides a platform to the management and the employees to be at par on negotiation table.
develops better understanding between the two parties.

2. It promotes industrial democracy:

Both the employer and the employees who best know their problems, participate in the
negotiation process. Such participation breeds the democratic process in the organisation.

3. It benefits the both-employer and employees:

The negotiation arrived at is acceptable to both parties—the employer and the employees.
 4. It is adjustable to the changing conditions:

A dynamic environment leads to changes in employment conditions. This requires changes in

organisational processes to match with the changed conditions. Among other alternatives
available, collective bargaining is found as a better approach to bring changes more amicably.

5. It facilitates the speedy implementation of decisions arrived at collective negotiation:

The direct participation of both parties—the employer and the employees—in collective
decision making process provides an in-built mechanism for speedy implementation of decisions
arrived at collective bargaining.

PRINCIPLESOF COLLECTIVE BARGAINING

For union and management

 It should make an educational process as well as bargaining process. It should offer to trade
union leaders an opportunity to present to the management.

 The management and trade union must look upon the collective bargaining as a means of
finding the best possible solution.

 Both parties to a dispute should command the respect of each other and should have enough
bargaining power.

 There must be a mutual confidence, good faith and a desire to make collective bargaining
effective in practice.

 Two parties should meticulously observe and abide by all the national and state laws which are
applicable to collective bargaining.

 Both the parties must bear in mind the fact that collective bargaining is, in a sense, a form of
price fixation and that any successful collective bargaining depends, in the last analysis, on
whether trade union and management do a good job.

For the management:

 Management must develop and consistently follow labour policy.

 Mgt must grant recognition to trade union without any reservation.

 The mgt should not assume that employee goodwill always be there for it. It should periodically
examine the rules and regulations by which employees are governed.

 The mgt should not wait for the trade union to bring employee grievances to its notice but
should settle the grievance before it.

 The mgt should deal with only one trade union in the organization.
 Management should place greater emphasis on social consideration.

For the trade union:

 Trade union should eliminate racketeering and undemocratic practice within their own
organization.

 Trade union have an obligation to assist mgt in the elimination of waste and in improving the
quality and quantity of production.

 Trade union leader should assist in the removal of such restrictive rules and regulations are
likely to increase cost and prices, reduce the amount that can be paid out as wages, and tend to
make for low employment and in the long run lower the standard of living of all sections of
society.

 They resort to strike only when all methods of settling a dispute have failed to bring satisfactory
solution.

Features of collective bargaining

(1) It is a group action as opposed to individual action and is initiated through the representatives
of workers:-

On the management sides are its delegates at the bargaining table; on the side of the workers is
their trade union, which may represent the local point, the industry membership or nation-wide
membership.

(2) It is flexible and mobile, and not fixed or static:-

It has fluidity and ample score for a compromise, for a mutual give and take before the final
agreement is reached or the final settlement is arrived at.

The “ take-it-or-leave-it” propositions is not viewed as being within the rules of the game.

(3) It is a two-party process.

collective bargaining can work only with the acceptance by labour and management of their
appropriate responsibilities.

(4) It is a continuous process:-

It provides mechanism for continuing and organized relationships between management and trade
unions.

(5) It is dynamic and not statics:-

It is a relatively new concept, and is growing, expanding, and changing.

In the past, it used to be emotional, turbulent and sentimental; but now it is scientific, factual and
systematic.

(6) It is industrial democracy at work:-

It is not merely to sign an agreement but , granting seniority, vacations and wage increase.

It is joint formulation of company policy.

(7) Collective bargaining is not a competitive process but is essentially a complementary process.

It is useful to maintain democracy by win-win situation.Both parties has to reach on mutual

agreement for considering trust and wellness.

(8) It is an art, an advanced form of human relations.

As it deals with human resources, to bring human touch is necessary.It includes to deal with humans
with emotional intelligence.