What is an Industrial Dispute?
An industrial dispute is a conflict or disagreement between employers and employees, between employers themselves, or among employees, which relates to employment conditions, terms of employment, or working conditions. This means any serious difference of opinion or argument about jobs, pay, work rules, promotions, safety, or other workplace matters that affects a group of workers or the entire workforce. For a dispute to be called an “industrial dispute,” it must involve more than just one individual—usually, it affects a group of workers or is supported by a union.
According to Section 2(K) of the Industrial Disputes Act, 1947, and ‘industrial dispute’ means “any dispute or difference between employers and employees 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.
Causes of Industrial Disputes
The causes of industrial conflict or disputes have been much varied. These may be described partly a psychological or social and partly political, but predominantly economic. Some important factors responsible for industrial conflict and poor industrial relations many be briefly stated as follows:
- Management’s general apathetic towards workers or employees because of their contention that they want more and more economic or monetary rewards and want to do less work.
- Mental inertia on the part of both management and labour.
- Lack of proper fixation of wages inconformity with cost of living and a reasonable wage structure generally.
- Bad working conditions.
- Attempts by management to introduce changes (such a rationalization, modernization or automation) without creating a favourable to appropriate climate or environment for the same.
- Lack of competence or training on the part of first-line supervision as well management at upper levels in the practice of human relations.
- Assignment of unduly heavy work-loads to worker, unfair labour practices (such as victimization or undue dismissal).
- Lack of strong and healthy trade unionism, lack of a proper policy of union recognition and inter-union rivalries.
- A spirit of non-cooperation and a general tendency among employees to criticize or oppose managerial policies or decisions even when they may be in the right directions.
- A fall in the standard of discipline among employees largely due to wrong or improper leadership, often resulting in insubordination or disobedience on the part of employees.
- Difference in regard to sharing the gains of increased productivity.
- Inadequate collective bargaining agreements.
- Legal complexities in the industrial relations machinery or settlement of industrial disputes.
- Lack of necessary changes in the working of government in accordance with changing needs and circumstances.
- Combination of too much law and too little respect for law even at high levels.
- Growing factional and personal difference among rank-and-file employees who are union members or union leaders and a tendency on the part of the management in some cases to prefer having with outside leaders and not give due respect to worker-leaders.
- Political environment of the country; and
- Agitation and wrong propaganda by selfish labour leaders to further their own interests of their own party.
Mechanisms for Resolution of Industrial Disputes
Resolving industrial disputes is important for industrial peace and productivity. There are several mechanisms to settle these disputes, both inside and outside the workplace. Here are the main methods:
1. Negotiation
- The simplest and most direct way.
- Employers and workers (or their representatives) sit together to discuss and resolve issues.
- If successful, it leads to a mutual agreement.
2. Conciliation
- A neutral third party, called a conciliator, helps both sides talk and find a solution.
- The conciliator does not make decisions but encourages both sides to reach an agreement.
- In India, government-appointed conciliation officers or boards handle this process.
- If conciliation succeeds, a settlement is signed; if not, the dispute may go to the next stage.
3. Arbitration
- Both parties agree to refer their dispute to an independent third party, called an arbitrator.
- The arbitrator listens to both sides and gives a decision, which can be binding or non-binding, depending on the agreement.
- Arbitration is faster and less formal than going to court.
4. Adjudication
- If negotiation, conciliation, and arbitration fail, the dispute can be referred to a court or tribunal.
- In India, there are Labour Courts, Industrial Tribunals, and National Tribunals for this purpose.
- These bodies hear the arguments, examine evidence, and give a binding judgment.
- Adjudication is a legal process and can take more time.
5. Mediation
- Similar to conciliation, but the mediator may play a more active role in suggesting solutions.
- The mediator helps both sides understand each other’s views and find common ground.
- Mediation is voluntary and not legally binding unless both parties agree to the solution.
6. Voluntary Arbitration
- Both parties agree in advance to accept the decision of an arbitrator.
- This is less formal and more flexible than adjudication.
- The decision is usually binding.
7. Grievance Redressal Machinery
- Many companies have internal systems to handle complaints or grievances from employees.
- A grievance committee or officer listens to the worker’s complaint and tries to resolve it quickly within the organization.
- This helps prevent small issues from becoming major disputes.
8. Collective Bargaining
- Workers, usually through their unions, negotiate with management about wages, benefits, and working conditions.
- If successful, both sides sign a collective agreement, which is binding for a set period.
9. Code of Discipline
- A set of mutually agreed rules between employers and workers to prevent disputes and promote good behavior.
- Encourages both sides to settle disputes peacefully and avoid strikes or lockouts.
10. Works Committees
- Committees made up of representatives from both management and workers.
- Discuss day-to-day problems and try to resolve them before they become serious disputes.
Steps in the Dispute Resolution Process
The resolution of industrial disputes typically follows a structured process to ensure fair and peaceful outcomes. Here are the main steps, explained simply:
- Negotiation:
The first step is direct negotiation between the employer and employees (or their representatives). Both sides discuss the issues and try to reach a mutual agreement without involving outsiders. If successful, the dispute ends here.
2. Conciliation:
If negotiation fails, the government appoints a conciliation officer to help both parties reach a settlement. The officer acts as a neutral mediator, encouraging dialogue and suggesting solutions. If a settlement is reached, it is documented and signed. If not, the officer sends a failure report to the government, which may then refer the dispute to the next stage.
3. Arbitration:
Sometimes, both parties agree to refer the dispute to an independent arbitrator. The arbitrator listens to both sides and makes a decision. This decision is usually binding and helps resolve the conflict quickly without going to court.
4. Adjudication:
If conciliation and arbitration do not resolve the dispute, the government may refer the matter to a Labour Court, Industrial Tribunal, or National Tribunal. These bodies examine the case, hear arguments, and make a legally binding judgment.
5. Implementation:
Once a decision or settlement is reached, both parties are required to follow the terms. Regular monitoring ensures compliance and helps prevent future disputes.
This step-by-step process—negotiation, conciliation, arbitration, adjudication, and implementation—ensures that industrial disputes are resolved fairly, efficiently, and peacefully.
