What is an Industrial Dispute?

An industrial dispute is caused by revolting employees who disturb industrial peace and harmony.
Industrial disputes generally arise due to tensions between labour and management, and gives rise to
more issues. This may cause employees to not do their work, and affecting the quality and quantity of
production. Furthermore, as industrial tensions rise, there may be strikes and lock-outs.

Causes of Industrial Disputes:

1. Low income: As prices and living expenses are rising in India, employees also expect their income to
rise. Unfortunately, that rarely happens. To make things worse, there is only one earning member in
the household and this person alone supports everyone financially. Many times, the income is not
enough to keep everyone content and pay all the bills. Thus, if the earning member loses his/her job,
the entire family suffers in poverty. Low wages cause discontent in employees.
2. Prices in India are rising constantly, hence, it is also expected that the income of industrial labourers
increase, but that never happens.
3. Dearness Allowance associated with labourers has no corresponding increase with rising prices.
4. Most industries have unhygienic and unsafe working conditions. This puts pressure on workers'
health.
5. Employees find it extremely difficult to get leave with pay.
6. Employees are becoming more and more conscious about self-respect. Tempers flare when they are
insulted or instigated by their superiors.
7. Most of the time, extra bonus is not paid, or not paid on time. This causes industrial conflicts.
8. Sometimes, employees are unfairly relieved from their jobs. Nevertheless, their colleagues unite
and fight for the rehiring of their relieved colleagues.
9. Sometimes, trade unions are not recognized by industries resulting in strained relations and stress.
10. Replacement of workers by machinery is causing discontent. Workers are getting laid off and
replaced by cheaper machines that do the same work.
11. Many industrial disputes are being caused by political parties. Political involvement in trade unions
causes divisions and unnecessary tensions.
12. Disputes may also arise due to dishonest mid-level management. This management prevent
labourers from contacting senior management, and act as middle-men. Lack of communication causes
distrust.

Consequences of Industrial Conflicts:

1. Unrest and unnecessary tensions engulf the hearts and minds of all the people involved - labourers
and senior management.
2. There is economic loss due to conflicts because conflicts may result in strikes and lock-outs. This
causes low or no production resulting in industrial loss.
3. Industrial losses may cause economic depression because many industries are interlinked. A
problem in one industry may drastically affect another industry.
4. The lives of low-level labourers become worse when they are out of work. They may be the only
working members of the family, and their joblessness may lead everyone in the family to poverty.

5. When industrial conflicts get out of hand, they become a threat to peace and security. Workers may
resort to violence and indulge in sabotage.

1.

An attitude of contempt towards the workers on the part of the management.

2.

Inadequate fixation of wages or improper wage structure.

3.

Indiscipline

4.

Unhealthy working conditions at the workplace.

5.

Lack of human relations skills on the part of supervisors and managers.

6.

Desire of workers for higher bonus, wages or daily allowances.

7.

Desire of employers to pay as little as possible to its workers.

8.

Inadequate welfare facilities.

9.

Dispute on sharing the gains of productivity.

10.

Retrenchment, dismissal and lockouts by the management.

11.

Strikes by the workers.

12.

Inter-union rivals.

13.

General economic and political environment such as rising prices, strikes by

others and general indiscipline having their effect on the employees attitudes.

14.

Mental inertia on the part of the management.

Demerits of bad industrial relations can be

expressed as under:
Effect on Workers: (i) Loss of wages, (ii) Physical
injury or death on account of violence during labour
unrest, (iii) Excesses by employers, (iv) Economic
losses, (v) Bitterness in relations, (vi) Adverse affect
on career.
Effect on Employers / Industrialists: (i) Less
production, (ii) Less Profit, (iii) Bad affect on
organisation, (iv) Bad effect on human relations, (v)
Damage to machines and equipments, (vi) Adverse
effect on development of companies, (vii) Burden of
fixed expenses.
Effect on Government: (i) Loss of revenue (less
recovery of income tax. sales tax, etc.) (ii) Lack of
order in society, (iii) Blame by different parties.
Effect on Consumers: (i) Rise in prices, (ii)
Scarcity of goods, (iii) Bad affect on quality of
goods.
Other Effects: (i) Adverse affect on International
Trade (Fall in exports and rise in imports), (ii)
Hindrance in Economic Development of the country,
(iii) Uncertainty in economy.
To conclude, it can be said that almost all sections of the
society suffer loss in one way or the other due to bad
industrial relations. In order to maintain peace in
industrial units it is of utmost importance that employers

and workers should make constant endeavour to

establish cordial human relations.

The determinants of a good industrial relations are as

follows
1.measures for securing and preserving unity and
better relations between employees and employer.
2.Arrangement to probe and settle industrial disputes
between employer and employees/employer and
employer/employee and employee,give proper
representations to employee union and employer
association.
3.Both ultimate weapons of employer and employeesstrike and lock-outs should be prevented at all cost.
4.Participation of employees at all levels and
encourage give and take principle in CBA.