LABOUR WELFARE AND

INDUSTRIAL RELATIONS

SEMESTER-4
 UNIT 2: INDUSTRIAL DISPUTES

Topics:
Industrialdisputes - Causes
Handling and settling disputes
Employee grievances
Steps in grievance handling
Causes for poor industrial relations
Remedies for poor industrial relations
definition
Industrial Dispute [Sec. 2(k)]: 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 the
terms of employment or with the
conditions of labour, of any person
Industrial Disputes have adverse effects on industrial
production, efficiency, costs, quality, human
satisfaction, discipline, technological and economic
progress and finally on the welfare of the society.
The objective of the Industrial Disputes Act 1947 is
to secure industrial peace and harmony by providing
machinery and procedure for the investigation and
settlement of industrial disputes by negotiations.
This act deals with the retrenchment process of the
employees, procedure for layoff, procedure and rules
for strikes and lockouts of the company.
In narrow sense industrial dispute means
conflict between parties in industrial
establishments.
 Industrial dispute is a dispute or
difference –
(i) Between employers and employers, or
(ii) Between employers and workmen or
(iii) Between workmen and workmen.
Industrial dispute is connected with –
(i) Employment or
(ii) Non-employment or
(iii) Terms of employment or
(iv) Conditions of labour of any person.
Types of Industrial Disputes

Based on the objective behind an

industrial dispute, we can distinguish it
into the following four broad categories:
Interest Disputes
The interest here refers to gains. Therefore, the conflicts concerning the economic or non-economic
interests of the employees, such as increasing the remuneration, working conditions, job security
and other benefits are called interest disputes.
Recognition Disputes
The trade unions often enter into a dispute with the management during negotiation or collective
bargaining for the benefit of its member employees.
Sometimes, for these negotiations, the management denies identifying the trade unions. Even when
there are many trade unions in an organization, each one of them struggles to get recognized by the
management.
Grievance Disputes or Rights Disputes
The conflicts concerning the employee’s rights and legal issues with the management are termed as
grievance disputes. It includes promotions, work duration, leaves allowed, over time, fringe
benefits, safety and security.
Unfair Labour Practices Disputes
The disputes over the unethical treatment of the management towards the labour such as
discriminating them for holding membership of trade union, restricting communication, employing
new workers during strikes and denial to bargain are called unfair labour practices disputes.
Causes of Industrial Disputes
Even the smallest of the reasons can
contribute to the raising of conflicts in an
organizational setup if it impacts the
respondent to a great extent.
Economic Causes
The ultimate aim of the labour is to earn their livings and meet their economic ends.
Whereas, for the business, it is generating profits. Therefore, on the non-fulfilment of
these needs, industrial disputes can take place between the management and the labour.
It includes demanding a higher wage, increasing the profits, bonus and allowances,
replacing machinery, improving working conditions, duration and other necessary
facilities.
Managerial Causes
Lack of administrative support and attention towards labour leads to industrial disputes.
Following are the various managerial causes of industrial disputes:
Retrenchment or layoff of the workers without any reason;
the inefficiency of the management to initiate leadership in the organization;
poorly built and dissatisfying recruitment policies and practices;
the employer does not comply with the agreement and codes such as code of discipline
and collective bargaining;
the management does not acknowledge the trade unions as a representative of the union
members, i.e., the workmen.
Government Machinery
At times, the government lacks a suitable strategy to address industrial
disputes. Some of the drawbacks of the government machinery which
lead to industrial conflicts are as follows:
The need for growth and development is not considered seriously;
difficulties in dealing with industrial culture and climate challenges;
the employers meagrely apply this settlement machinery;
there is a low level of trust of the employers and the employees, over the
government’s settlement machinery.
Voluntary Arbitration
The word arbitration refers to the settlement of any dispute mutually with
the help of an arbitrator.
Thus, in voluntary arbitration, there is a third party involved in the
settlement process. Its decision can be biased or unacceptable by either of
the parties, which can result in further conflicts.
Wage Boards
The Indian government has set up wage boards for determining the suitable wages of the
workmen or labourers.
When the workmen are dissatisfied with their remuneration, there arises a condition of an
industrial dispute.
Joint Management Councils (JMC)
The government created Joint Management Councils, which consist of equal representatives
of both the parties to deal with the worker’s problems, but the idea failed due to lack of
efficiency and progress.
Other Causes
The various other causes of industrial disputes are stated below:
Weak and multiple trade unions result in more conflicts;
influence of the political party in power, supporting a particular trade union leads to conflicts;
the adverse effect of the relationship with the central and state governments, unstable political
conditions and everyday responsibilities results in industrial disputes;
in some organizations, collective bargaining is not allowed since the workmen are not even
permitted to make trade unions;
other reasons can be corruption, apparent consumption, role conflicts, etc.
Outcomes of Industrial Disputes
The consequences of an industrial dispute are
hazardous to the employer, employees,
organization, society and the economy.
However, it is taken as a useful tool by the
workers, to raise their voice and put up their
demands in front of the management or
employers. It empowers the labours and
protects their rights of speech in the
organization.
Strikes
It is a way through which a group of workmen exercise pressure on the
management by stopping the work and protesting against the employers to get their
demands fulfilled.
Following are the different types of strikes:
Primary Strikes: The strikes which are directly projected against the employers
are called as primary strikes. Some of the most common primary strikes are as
follows:
Gherao: Gherao refers to physically encircling the managers by the workmen to
create a restricted area where no one can move in or out. The targeted managers are
humiliated through; abuses also they are restricted move in or out.
Picketing: Picketing is the process of putting up signboards, play cards and
banners by the workmen to display their protest or dispute in front of the public. To
involve maximum workers in the strike, some union members are made to stand at
the factory gate to influence others too.
Boycott: As the name suggests, boycott refers to interrupting business operations.
It requests the other labourers to temporarily pull back their co-operation with the
management and contribute to the strike.
Stay Away Strike: In a stay-away strike, the workmen organize a protest in the
form of demonstrations, marches, rallies, apart from the workplace.
Pen Down Strike: It is also known as the sit-down strike or tools down strike. Though the
workmen come to the workplace daily and also avails the work facilities, they sit idle and stop
working.
Token Strike: A token strike is a short form of protest where the workmen stop their work for a
definite period. It is usually for as short as 24 hours, to hamper a day’s production or so and get
their demands fulfilled by the management.
Lightning Strike: The lightning strike is that form of strikes where the workmen call off the work
immediately without giving any prior information or warning to the management. It is also termed
as a catcall strike.
Go Slow Strike: This is another harmful way of protesting against the management where the
workmen secretly plan to decrease their work speed so that the production is hampered. However,
in front of the management, they pretend to be highly committed towards their job.
Work to Rule: In this type of strike, the employees strictly follow their job rules or contract and
stops performing any additional task, other than what all is mentioned in their agreement.
Hunger Strike: One of the most common forms of a strike is the hunger strike. The workmen go
on fasting for an indefinite period and sit nearby the workplace or the employer’s house to project
their demands.
Secondary Strikes: The other name for the secondary strike is the sympathy strike. In this, the
force is applied against the third person having sound trade relations with the organization to
indirectly incur a loss to the employer and the business. The third person does not have any other
role to play in such a strike
Other Strikes: There are undoubtedly other forms of strike too, which takes place on a vast
level involving and affecting a large number of people. These are as follows:
General Strike: The strikes which are conducted on a mass level, i.e., in the whole country or
state or city instead of just a single organization for fulfilment of a demand unanimously like
job permanency or an increase in pay, etc.
Political Strike: Any law or act proposed by the government for making changes to the
working terms or conditions when unaccepted by the workers is protested through political
strike on a massive level.
Particular Strike: The protest against a specific issue or person within a city, state or country
and take up a colossal form is termed as a particular strike.
Bandhs: Bandh is adopted in countries like Nepal and India where a specific community or a
political party calls for a general strike across the city or state or country. It is a form of civil
disobedience and sometimes become violent, even involving stone attacks or arson attacks at
times.
Lockouts
This form of an industrial dispute is raised by the employers to impose specific terms and
conditions on the workers. It is very different from layoff, retrenchment, termination or
prohibition of employees.
In lockouts, the employer temporarily closes down the workplace or stops the work or takes
action like suspending the workers to force them to follow the new terms and conditions.
Handling and settling disputes

Collective Bargaining
Grievance Redressal
Arbitration
Conciliation
Adjudication
 Collective Bargaining
 Collective bargaining is the most effective method of resolving industrial disputes. It occurs basically through
Works Committee i.e. when representatives of both workmen and employer meet to settle the differences which
may be due to disputes in wages, benefits, work rules, etc. Since both parties have their representatives, they can
collectively bargain to protect their interests and reach a settlement.
  
 Grievance Redressal Mechanism
 A grievance may be defined as a sort of dissatisfaction to workman with any aspect of the organisation wherein
he is employed. The same needs to be redressed for the betterment of the industry. The Industrial Disputes
(Amendment) Act, 2010 has substituted a new chapter i.e. Chapter II-B in the Act with the purpose to establish an
effective tool to resolve industrial disputes. The title of the Chapter is Grievance Redressal Machinery. Section 9C
of the Act provides for the establishment of  Grievance Redressal Machinery.
 Every industrial establishment having twenty or more workmen shall have one or more Grievance Redressal
Committee for the resolution of disputes arising out of individual grievances
 The Grievance Redressal Committee shall consist of equal number of members from the employer and the
workmen
the workmen alternatively on rotation basis every year
The total number of members of the Grievance Redressal Committee shall not
exceed six
There shall be one woman member in the Grievance Redressal Committee in
case of two members. In case the number of members are more than two, the
number of women members may be increased proportionately
The Grievance Redressal Committee shall not affect the right of the workman to
raise industrial dispute on the same matter under the provisions of this Act
The Grievance Redressal Committee may complete its proceedings within thirty
days on receipt of a written application by or on behalf of the aggrieved party
The workman who is aggrieved by the decision of the Grievance Redressal
Committee may appeal to the employer against theThe chairperson of the
Grievance Redressal Committee shall be selected from the employer and from
among decision of the Grievance Redressal Committee and the employer shall,
within one month from the date of receipt of such appeal, dispose off the same
and send a copy of his decision to the workman concerned
 Arbitration is a method of settlement of a dispute wherein a neutral third party (appointed by
both parties) apprehends the bargaining situation after listening to both the parties and studying
other information. An award is made on such settlement that binds the parties. Arbitration is
effective as a means of resolving disputes because it is relatively expeditious as compared to
court.
 When can the parties refer an industrial dispute to arbitration?
 Section 10A of Industrial Disputes Act, 1947 provides for Voluntary reference of disputes to
arbitration. It says:
 Where any industrial dispute exists or is apprehended and the employer and the workman agree
to refer the dispute to arbitration, they may, at any time before the dispute has been referred
under section 10 to a Labour Court or Tribunal or National Tribunal by a written agreement,
refer the dispute to arbitration and the reference shall be to such person or persons (including the
presiding officer of a Labour Court or Tribunal, or National Tribunal) as an arbitrator or
arbitrators as may be specified in the arbitration agreement
If arbitration agreement provides for a reference of the dispute
to an even number of arbitrators then agreement shall provide
for the appointment of another person as umpire who shall enter
upon the reference, if the arbitrators are equally divided in their
opinion, and the award of the umpire shall prevail and shall be
deemed to be the arbitration award for the purposes of this Act.
An arbitration agreement must be signed by the parties thereto
in such manner as may be prescribed
A copy of the arbitration agreement shall be forwarded to the
appropriate government and the conciliation officer
The arbitrator or arbitrators shall investigate the dispute and
submit to the appropriate government the arbitration award
signed by the arbitrator or all the arbitrators, as the case may be
Conciliation
Conciliation is a process to resolve the dispute where representatives
of workers and employers are brought together before a third party
(conciliation officer) with a view to convince them to arrive at mutual
settlement. The conciliation officer basically acts as a catalyst who
deals with parties separately and collectively in order to provide an
effective solution to the dispute. The appropriate government may
appoint one or more conciliation officer, charged with the duty of 
mediating in and promoting the settlement of industrial disputes.
Section 12 of the Act provides the duties of conciliation officer
wherein the conciliation officer is required to hold conciliation
proceedings in case of any industrial dispute or where the dispute
relates to a public utility service and a notice under section 22. Other
duties include investigation of disputes, appropriate steps to settle the
dispute, submission of reports to appropriate government, etc.
.
Similarly, a board of conciliation (constituted under Section 5 of the Act) may
also be referred for settlement of the dispute. The Board of Conciliation is
another authority recognized under Industrial Disputes Act, 1947 to promote the
settlement of industrial disputes. Duties of Board are similar to the duties of
conciliation officer like to take necessary steps for settlement of the dispute,
submission of reports and memorandum of settlement to appropriate
Government within 2 months. In case of no settlement, the Board must submit
the full report of steps taken by it while working for the settlement. The report
shall be in writing and signed by all the members of the Board.
Adjudication
Industrial disputes can be resolved by way of adjudication i.e. settlement of an
industrial dispute by labour court or industrial tribunal. The appropriate
government may refer a dispute to adjudication depending on the failure of
conciliation proceedings. Section 10 of the Industrial Disputes Act, 1947,
provides for reference of a dispute to the court of inquiry or labour court or
industrial tribunal. The decision of a court of inquiry or labour court or tribunals
is binding on both the parties. The Act also provides for rules regarding the
composition and powers of the court of inquiry, labour courts and tribunals
causes of poor industrial relations
Major causes of poor industrial relations are as follows: 1. Economic Causes 2. Organisational Causes 3.
Social Causes 4. Psychological Causes 5. Political Causes.
Uninteresting Nature of Work: The problem of poor industrial relations is Essentially a product of large-
scale production which has made man subordinate to the machine. Owing to extensive specialization, work
in a factory performance only a minor operation in the whole process of production.
Political Nature of Unions: Political nature of trade unions, multiple unions and inter-union rivalry
weaken the trade union movement. In the absence of strong and responsible trade unions, collective
bargaining becomes ineffective. The union’s status is reduced to a mere strike committee.
Poor Wages: Poor wages and poor working conditions are the main reasons for unhealthy relations among
management and labour. Unauthorized deductions from wages, lack of fringe benefits, absence of
promotional opportunities, dissatisfaction with job evaluation and performance appraisal methods, faulty
incentive schemes are other economic causes.
Occupational Instability: Occupational stability makes workers feel secure in their jobs. It produces an
enervating effect on them. Workers who have held a job for several years generally win confidence in that
job and do not like any change.
Poor Organizational Climate: Organisational climate essentially emphasises the work environment. It
consists of a set of characteristics that describe an organisation, distinguish it from other organisations, are
relatively enduring over time, and influence the behaviour of people in it. Organisational climate affects
organisational processes and behaviour in more than one way.
Psychological Causes: Lack of job security, poor organisational culture, non-recognition of merit and
performance, authoritative administration and poor interpersonal relations are the psychological reasons for
unsatisfactory employer-employee relations.
REMEDIES FOR POOR INDUSTRIAL
RELATION
 Sound Human Resource Policies:
Policies and procedures concerning the compensation, transfer, promotion, etc. of employees should be fair
and transparent. All policies and rules relating to employer-employee relations should be clear to everybody
in the enterprise and to the union leaders.
Top management must support them and set an example for other managers. Practices and procedures
should be developed to put human resource policies into practice. Sound policies and rules are of little help
unless they are executed objectively and equitably.
2. Constructive Attitudes:
Both management and trade unions should adopt positive attitudes towards each other. Management must
recognise union as the spokesmen of workers grievances and as custodians of their interests. The employer
should accept workers as equal partners in a joint endeavor. Unions and workers, on their part, must
recognise and accept the rights of employers.
3. Collective Bargaining:
Employers’ organisations as well as trade unions should be able and willing to deal with mutual problems
freely and responsibly. Both should accept collective bargaining as the cornerstone of good employer-
employee relations.
A genuine desire on the part of employers to bargain with employees on the basis of equality is necessary.
Government agencies should assist the two sides in public interest. Problem centred negotiations rather
than a legalistic approach is desired. Widespread union management consultations and information sharing
are helpful.
. Participative Management:
Employers should associate workers and unions in the formulation and implementation of human resource
policies and practices. Management should convince workers of the integrity and sincerity of the company.
Management should not interfere in the internal affairs of the unions. Instead of trying to win workers’
loyalty away from unions, management should encourage right type of union leadership. A strong union is
an asset to the employer.
5. Responsible Unions:
Unions should adopt a responsible rather than political approach to employer-employee relations. Unions
should accept private ownership and operations of industry. They must recognise that the welfare of
workers depends on the successful operation of industry. A strong, democratic and responsible union alone
can ensure that workers honour the agreement with their employer.
6. Employee Welfare:
Employers should recognise the need for the welfare of workers. They must ensure reasonable wages,
satisfactory working conditions, opportunities for training and development, and other necessary facilities
for labour. A genuine concern for the welfare and betterment of working class is necessary.
7. Grievance Procedure:
A well-established and properly administered system for the timely and satisfactory redressal of employees’
grievances can be very helpful in improving employer-employee relations. It provides an outlet for tensions
and frustrations of workers. Similarly, a suggestions scheme will help to satisfy the creative urge of
workers. A code of discipline if properly adhered to by both the parties will help to avoid unilateral and
violent actions on either side.