INDUSTRIAL DISPUTES AND STRIKES

Presented To: Prof. Roopa Rao Presented By: Valay Chhaya Krutarth Gandhi Darpan Mittal Srushti Mehta Shruti Nair

Strike
Strikes and lock-outs are the methods adopted by workers and employees respectively to settle their differences. When the workers fail to secure a redressal of their grievances and fulfillment of their demands by peaceful negotiations with the employer, they try to force the employer to come to a settlement by temporary withdrawing of their services in form of strike. A strike may be defined as a concerted and temporary cessation of work by workers with a view to furthering of protecting their interests and rights, in general, and securing a fulfillment of their specific demands in particular.

CAUSES OF STRIKES / INDUSTRIAL DISPUTES

Strike is one of the means adopted by Labour to achieve its goals. The cause of a strike is either no other alternative is available, or if available, the workers feel that the alternatives will not be as effective as the strike in attainment of their goals. Strikes are costly to workers. They involve loss of earnings, cause emotional tensions and strains, deplete union funds and lead to loss of employment to many workers.

 If, in spite of these risks, the workers go for strike, they do so because they feel they have no other way of achieving their goals and aspirations.
The causes of strikes are different from the objectives which are sought to be achieved through them. Securing higher wage may be the objective of strike but not its cause.

The cause is absence of another equally or more effective method acceptable to workers for obtaining the same higher wage.
If the demand for higher wage is treated as a cause of strike, the refusal by employer to concede the demand could equally be listed as a cause. Both, demand for higher wage and refusal by employer to concede the same are causes of differences, that is, causes of industrial disputes and not the causes of strike.

Other reasons for strikes and industrial disputes

Bonus. Personnel and retrenchment. Leave and hours of work. Indiscipline and violence.

Forms of strike
General strike. A sympathetic strike. A stay in or sit down strike. Slow down strike.

Authorized and Unauthorized strikes

On the basis of initiation, strikes may be classified as authorized and unauthorized strikes. An authorized strike is the one which is called only after union has given its consent. An unauthorized strike, usually known as wild cat strike, is the one which is called without the approval of the union.

Continued
A wild cat strike is sometimes an emotional outburst caused by any sudden provocative action on the part of management. Strikes of these types were very common in USA during second world war period. Wild cat strikes also became frequent in Great Britain during 1960s. Objective behind the British industrial relations act 1971 was to discourage resort to such strikes.

General and Particular strikes

A general strike has a wide coverage, but the degree of generality or the nature of coverage varies considerably from strike to strike. Some general strikes are confined to city or an industrial town. Bandhs are the typical example of such strikes in India. The objective behind organizing Bandhs has primarily been political in nature. In contrast to general strikes, particular strikes are limited in scope and are usually confined to a single plant or few plants and to single trade or occupation in a particular town or city. Majority of such strikes in India are called by the plant level unions.

Types based on Techniques

Slow-down strike:
In a strike of this type, workers do not actually stop working, rather they slow down the pace of their work. Such strikes are common feature in Indian sugar industry during the crushing season and in docks during heavy pressures for unloading goods from ships. Employers vehemently resent this form of strike and call it immoral.

Quickie strike:
In quickie, workers remain in place of their work, but they stop working for brief period, that is for few minutes or few hours.

 Sit-down strike:
In sit-down strike also, workers remain in place of their work but they do not work. The duration of stoppage in a sit-down strike is longer than that in quickie. Difference between a quickie and sit down strike is only of duration: all quickies involves sit downs but all sit downs are not quickies. In a slow down strike workers pretend to be working though at lower pace. In a sit down strike they stop working all together.

 Work-to-rule:
It is a strike where employees declare that they will perform their task strictly in accordance with the rules prescribed.

In some industries the nature of business and rules prescribed are such as to lead to a considerably slowing down of the pace of work if rules are strictly followed.
Under such condition, if the unions and worker declare that they will work according to rules, they succeed in slowing down the pace of work. Thus work to rule becomes very effective instrument of exerting pressure on the management. In some services like insurance, banking, post and telegraph and government offices, employees have often resorted to work-to-rule method for fulfilment of their demands. Work-torule movement is generally a slow down movement.

 Ordinary strike:
The strike situation in which worker continues to be present in the workplaces is not very common. The most common strike is the one in which workers formally quit their places of work and prevent others, occasionally by violence but mostly by persuasion and picketing, from replacing them. In this form of strike, picketing, procession and demonstrations become necessary for the success of the strike.

Types Based on Generic Purposes

Sympathetic strike: A sympathetic strike, as the term itself indicates, is conducted out of sympathy for the cause of another group of workers, whether on strike or not. Thus, the workers resorting to a sympathetic strike have no immediate grievance against their employer.

Jurisdictional strike: Jurisdictional strikes are conducted with a view to force an employer to recognize or bargain with a particular trade union instead of another. One of the contestants may go on strike to pressurize the employer to accept its representational claim. As a matter of fact , two unions quarrel for their respective jurisdictions and the strike is the result of this dispute. Hence, such strike known as jurisdictional strikes.

 Political strike
Strikes of this sort are intended to put pressure on the government to do something or desist from doing something. Such strikes are also intended to express workers support to a particular political cause. Political strikes have been very common in India. Bandhs come under this category. Such strikes are not caused by industrial disputes.

General strikes
General strikes are similar to political strikes in nature and purpose. A general strike which involves the entire working-class of a country can rarely be caused by industrial disputes. A general strike may be a part of a revolutionary movement.

 Gherao: It is relevant to refer to the phenomenon of gherao which was very frequently resorted to by the workers for a few years after 1967, though its occurrence is rare now. Gheraos, not necessarily confined during the periods of strikes, are one of the methods designed to exert pressure for the fulfillment of demands. The practice of gherao has now mostly fallen into disuse. There is neither any political support to this movement nor can it secure any moral sanction.

Factors conditioning the outcomes of the strikes:

Of many strikes that are launched every day, a few succeed in achieving their objectives; some are partially successful; and some miserably fail and strikes return to work unconditionally. Strikes are intended to coerce the employer to accept the workers demands. At the same time, they inflict losses on the workers also.

Factors on the side of union

Extent of unionization Composition of Union Membership Union finances Substitutability of the services of the strikes Union Leadership The morale of workers Support from other unions The history of past strikes

Factors on the side of employer

The economic position of the enterprise The attitude of the employer The availability of alternative ways to produce the goods and services The support available from other employers

General Factors
The prevailing economic climate Policy of the government Public opinion Composition of the labor force

Effects of Strike
The main effects of strikes primarily depends on:
Number of workers involved in strike Its duration The nature of the struck product or service

To say in a nutshell :The larger the number involved, the longer the duration of a strike; and the more essential the commodity and the service, the more widespread are the effects of a strike

Three Heads of Strikes

Effects on the parties to the strike:
On the employer On the worker

Effects on others:
Consumers of the struck products. Suppliers to the Struck firm. Suppliers of goods and services to the strikers.

Effects on the society as a whole:

On the State On the Economy

Effect on the parties of the strike

Effect on the Employer

Effects on employer due to strike are:
Loss of profits Business may be crippled because of loss of market connection beyond the period of strike Good will may be lost Idle machines may get spoilt Incurring of additional expenditure for protecting the plant and on strike-breaking activities Loss of mental peace Loss of respect and status in the community

Thus, strike involves both economic and non-economic cost for the employer. The employer calculates the cost of strike to him with that of averting the strike. If he finds cost of averting is better than he does that by accepting to Unions terms else will face the strike.

Effects on Workers
The decision of strike is taken by union after calculating economic losses and the gain from the strikes It compares the cost of going on strike with those of desisting from it, and if the comparison is favorable the strike is undertaken. If strike is done than workers face following loss due to strikes
Loss of wages Fringe benefits contracting of debts Personal Hardship Loss of Employment

Some adverse effect of strikes on the worker are:

Disruption of family life Mental agonies Tortures Tensions Buying goods and services on high credit prices.

EFFECTS ON OTHERS
Consumers of the struck products:
Essential the commodities causing inconveniences to the consumers. Electricity, gas, transport and communication, sanitary services, etc.

Suppliers to the struck firm:

Subjected to material losses because of reduced demand for their goods and services.

Suppliers of goods and services to the strikers:

Who live by supplying goods and services to the workers are forced to reduce their activities.

EFFECT ON THE SOCIETY AS A WHOLE

Number of Mandays lost Per Strike and Per Lock-out in India (19862000) Year 1986 1993 1995 1999 2000 Mandays lost per strike (000s) 12.9 6.1 7.8 19.4 23.2 Mandays lost per lock out (000s) 32.1 30.7 31.6 41.8 48.6

Source: Compiled on the basis of data published by Ministry of Labour, Govt. of India.

In most of years under study, the figure has exceeded 30 thousand per lock-out. Total number of Mandays lost as a result of strikes- 1.3 crore (1986-1991) 1.1 crore (1992-2000). Total number of Mandays lost due to lock-outs 1.8 crore (1986-1991) 2.9 crore (1992-2000).

Number of industrial disputes, workers involved & mandays lost in selected countries.

Country Description
INDIA a. No. of Disputes b. Workers involved (lakhs) c. Mandays lost (lakhs) d. Av. Mandays lost per disputes (000s)

1981
2,589 15.9 365.8 14.1 145 7.3 169.1 116.6

1987
1,799 17.7 353.6 19.7 46 1.7 44.6 97.0

1997
1,305 9.8 169.7 13.0 29 3.4 45.0 155.2

USA
a. No. of Disputes b. Workers involved (lakhs) c. Mandays lost (lakhs) d. Av. Mandays lost per disputes (000s)

Total number of mandays lost: India on top. Second USA. Average per industrial disputes highest in USA. Reasons: USA- Higher level of union recognition, company-wise collective bargaining, lack of legal restrictions on normal strikes and relative freedom of the parties. INDIA- Multiplicity of unions, prevalence of low labor standards, ineffectiveness of industrial relations laws and lower levels of union organizations.

Control & Regulate

Three dimensions: a)time, b)industry and c) dispute. Banned during time of emergencies such as war. INDIA: Severely restricted in public utility and essential services. Industrial Disputes Act, 1947 Essential Services Maintenance Act USA: Labour Management Relations Act, 1947 The president has the power to declare a dispute and emergency.

An Evaluation of Right to Strike

Integral part of individual liberty and freedom. Trade unions 18th and 19th century in Great Britain. Initially strikes were deemed criminal conspiracy later on restrictions removed. To serve general interests of society the right to strike can also be controlled and regulated. If the pursuit of individual self interest is reason behind organizations economic activities restriction on right to strike would neither be legitimate nor tolerated by working class. Useful social purpose letting off steam. To many- Extremely costly and a luxury.