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Industrial Dispute

An industrial dispute may be defined as a conflict or difference of opinion between management andworkers on the terms of employment. It is a disagreement between an employer and employees'

representative; usually a trade union, over pay and other working conditions and can result inindustrial actions. When an industrial dispute occurs, both the parties, that is the management and

the workmen, try to pressurize each other. The management may resort to lockouts while theworkers may resort to strikes, picketing or gheraos.

As per Section 2(k) of Industrial Disputes Act,1947, an industrial dispute in defined as any disputeor difference between employers and employers, or betweenemployers and workmen, or between workmen and which is connected with the employment or

non-employment or the terms of employment or with the conditions of labor, of any person.

This definition includes all the aspects of a dispute. It, not only includes the disagreement betweenemployees and employers, but also emphasizes the difference of opinion between worker and

worker. The disputes 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 orcollectively. It must be connected with employment or non-employment or with the conditions oflabor.

From the point of view of the employer, an industrial dispute resulting in stoppage of work means astoppage of production. This results in increase in the average cost of production since fixedexpenses continue to be incurred. It also leads to a fall in sales and the rate of turnover, leading to

a fall in profits. The employer may also be liable to compensate his customers with whom he mayhave contracted for regular supply. Apart from the immediate economic effects, loss of prestige and

credit, alienation of the labor force, and other non-economic, psychological and social consequencesmay also arise. Loss due to destruction of property, personal injury and physical intimidation orinconvenience also arises.

For the employee, an industrial dispute entails loss of income. The regular income by way of wagesand allowance ceases, and great hardship may be caused to the worker and his family. Employeesalso suffer from personal injury if they indulge into strikes n picketing; and the psychological andphysical consequences of forced idleness. The threat of loss of employment in case of failure to

settle the dispute advantageously, or the threat of reprisal action by employers also exists.

Prolonged stoppages of work have also an adverse effect on the national productivity, nationalincome. They cause wastage of national resources. Hatred may be generated resulting in political

unrest and disrupting amicable social/industrial relations or community attitudes.

Causes Of Industrial Disputes

The causes of industrial disputes can be broadly classified into two categories: economic and non-economic causes. The economic causes will include issues relating to compensation like wages,bonus, allowances, and conditions for work, working hours, leave and holidays without pay, unjust

layoffs and retrenchments. The non economic factors will include victimization of workers, illtreatment by staff members, sympathetic strikes, political factors, indiscipline etc.

Wages and allowances: Since the cost of living index is increasing, workers generally bargainfor higher wages to meet the rising cost of living index and to increase their standards of living. In

2002, 21.4% of disputes were caused by demand

of higher wages and allowances. This percentage was 20.4% during 2003 and during 2004increased up to 26.2%. In 2005, wages and allowances accounted for 21.8% of disputes.

Personnel and retrenchment: The personnel and retrenchment have also been an importantfactor which accounted for disputes. During the year 2002, disputes caused by personnel were

14.1% while those caused by retrenchment and layoffs were 2.2% and 0.4% respectively. In 2003,

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a similar trend could be seen, wherein 11.2% of the disputes were caused by personnel, while 2.4%and 0.6% of disputes were caused by retrenchment and layoffs. In year 2005, only 9.6% of the

disputes were caused by personnel, and only 0.4% were caused by retrenchment.

Indiscipline and violence: From the given table, it is evident that the number of disputes

caused by indiscipline has shown an increasing trend. In 2002, 29.9% of disputes were causedbecause of indiscipline, which rose up to 36.9% in 2003. Similarly in 2004 and 2005, 40.4% and

41.6% of disputes were caused due to indiscipline respectively. During the year 2003, indisciplineaccounted for the highest percentage (36.9%) of the total time-loss of all disputes, followed bycause-groups wage and allowance and personnel with 20.4% and11.2% respectively. A similartrend was observed in 2004 where indiscipline accounted for 40.4% of disputes.

Bonus: Bonus has always been an important factor in industrial disputes. 6.7% of the disputeswere because of bonus in 2002 and 2003 as compared to 3.5% and 3.6% in 2004 and 2005

respectively.

Leave and working hours: Leaves and working hours have not been so important causes of

industrial disputes. During 2002, 0.5% of the disputes were because of leave and hours of workwhile this percentage increased to 1% in 2003. During 2004, only 0.4% of the disputes werebecause of leaves and working hours.

Miscellaneous: The miscellaneous factors include

- Inter/Intra Union Rivalry

- Charter of Demands- Work Load- Standing orders/rules/service conditions/safety measures- Non-implementation of agreements and awards etc.

StrikesA strike is a very powerful weapon used by trade unions and other labor associations to get their

demands accepted. It generally involves quitting of work by a group of workers for the purpose ofbringing the pressure on their employer so that their demands get accepted. When workers

collectively cease to work in a particular industry, they are said to be on strike.

According to Industrial Disputes Act 1947, a strike is a cessation of work by a body of persons

employed in an industry acting in combination; or a concerted refusal of any number of personswho are or have been so employed to continue to work or to accept employment; or a refusal undera common understanding of any number of such persons to continue to work or to accept

employment. This definition throws light on a few aspects of a strike. Firstly, a strike is a referredto as stoppage of work by a group of workers employed in a particular industry. Secondly, it also

includes the refusal of a number of employees to continue work under their employer.

In a strike, a group of workers agree to stop working to protest against something they think isunfair where they work. Labors withhold their services in order to pressurize their employment or

government to meet their demands. Demands made by strikers can range from asking for higherwages or better benefits to seeking changes in the workplace environment. Strikes sometimes occurso that employers listen more carefully to the workers and address their problems.

Causes of strikes:

Strikes can occur because of the following reasons:

Dissatisfaction with company policy

Salary and incentive problems

Increment not up to the mark

Wrongful discharge or dismissal of workmen

Withdrawal of any concession or privilege

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Hours of work and rest intervals

Leaves with wages and holidays

Bonus, profit sharing, Provident fund and gratuity

Retrenchment of workmen and closure of establishment

Dispute connected with minimum wages

TYPES OF STRIKE

1. Economic Strike: Under this type of strike, labors stop their work to enforce theireconomic demands such as wages and bonus. In these kinds of strikes, workers ask for

increase in wages, allowances like traveling allowance, house rent allowance, dearnessallowance, bonus and other facilities such as increase in privilege leave and casual leave.

2. Sympathetic Strike: When workers of one unit or industry go on strike in sympathy withworkers of another unit or industry who are already on strike, it is called a sympathetic

strike. The members of other unions involve themselves in a strike to support or expresstheir sympathy with the members of unions who are on strike in other undertakings. Theworkers of sugar industry may go on strike in sympathy with their fellow workers of the

textile industry who may already be on strike.3. General Strike: It means a strike by members of all or most of the unions in a region or

an industry. It may be a strike of all the workers in a particular region of industry to forcedemands common to all the workers. These strikes are usually intended to create politicalpressure on the ruling government, rather than on any one employer. It may also be an

extension of the sympathetic strike to express generalized protest by the workers.4. Sit down Strike: In this case, workers do not absent themselves from their place of work

when they are on strike. They keep control over production facilities. But do not work. Sucha strike is also known as 'pen down' or 'tool down' strike. Workers show up to their place of

employment, but they refuse to work. They also refuse to leave, which makes it verydifficult for employer to defy the union and take the workers' places. In June 1998, all theMunicipal Corporation employees in Punjab observed a pen down strike to protest againstthe non-acceptance of their demands by the state government.

5. Slow Down Strike: Employees remain on their jobs under this type of strike. They do notstop work, but restrict the rate of output in an organized manner. They adopt go-slow

tactics to put pressure on the employers.6. Sick-out (or sick-in): In this strike, all or a significant number of union members call in

sick on the same day. They dont break any rules, because they just use their sick leavethat was allotted to them on the same day. However, the sudden loss of so many

employees all on one day can show the employer just what it would be like if they reallywent on strike.

7. Wild cat strikes: These strikes are conducted by workers or employees without theauthority and consent of unions. In 2004, a significant number of advocated went on

wildcat strike at the City Civil Court premises in Bangalore. They were protesting againstsome remarks allegedly made against them by an Assistant Commissioner

Lockouts

A lockout is a work stoppage in which an employer prevents employees from working. It is declared

by employers to put pressure on their workers. This is different from a strike, in which employeesrefuse to work. Thus, a lockout is employers weapon while a strike is raised on part of employees.Acc to Industrial Disputes Act 1947, lock-out means the temporary closing of a place of employmentor the suspension of work or the refusal by an employer to continue to employ any number of

persons employed by him.

A lockout may happen for several reasons. When only part of a trade union votes to strike, the

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purpose of a lockout is to put pressure on a union by reducing the number of members who are ableto work.

For example, if a group of the workers strike so that the work of the rest of the workers becomesimpossible or less productive, the employer may declare a lockout until the workers end the strike.

Another case in which an employer may impose a lockout is to avoid slowdowns or intermittentwork-stoppages. Occupation of factories has been the traditional method of response to lock-outs

by the workers' movement.

PICKETINGWhen workers are dissuaded from work by stationing certain men at the factory gates, such a stepis known as picketing. If picketing does not involve any violence, it is perfectly legal. Pickets areworkers who are on strike that stand at the entrance to their workplace. It is basically a method of

drawing public attention towards the fact that there is a dispute between the management andemployees.

The purpose of picketing is:

to stop or persuade workers not to go to work

to tell the public about the strike

to persuade workers to take their union's side

GHERAO

Gherao in Hindi means to surround. It denotes a collective action initiated by a group of workersunder which members of the management are prohibited from leaving the industrial establishmentpremises by workers who block the exit gates by forming human barricades. The workers maygherao the members of the management by blocking their exits and forcing them to stay inside

their cabins. The main object of gherao is to inflict physical and mental torture to the person beinggheraoed and hence this weapon disturbs the industrial peace to a great extent.

Prohibition of Strikes and Lock-OutsEmployees are prohibited from striking according to the section 22 of Industrial Disputes Act 1947.

Employees, who are working in a public utility service, cannot go on a strike without giving a noticeof strike within the six weeks before striking.

They can not go on strike either within fourteen days of providing the strike notice or before the

expiry of the date of strike specified in any such notice. The same rule applies to the employers.

Employers who are carrying on a public utility service can not lockout any of their employeeswithout giving them a prior notice within six weeks before the lock out or within the fourteen days

of giving such a notice.

Moreover, the notice of strike or lockout is to be given in a prescribed manner showing the numberof persons involved in the strike/lockout.

The notice of strike or lockout is not necessary when there is already a strike or lockout going on inthe company.

However, a notice should be issued on the day on which the lockout is declared just to intimate theappropriate authorities about the lockout.

The employer is supposed to report the number of notices of strikes received by him to the

appropriate Government or the authority prescribed by the government within the five days ofreceiving such notices.

Illegal Strikes and Lock-Outs

A strike or a lock-out is illegal if it is declared in noncompliance with the section 22 (as defined

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above) of Industrial Disputes Act 1947, that is, if the notice period is not served or if the strike isheld within the fourteen days of issuing the notice of strike.

If a strike or lockout has already taken place and is being referred to a Board, the continuance of

such a strike or lock out is not illegal provided it is in compliance with the provisions of act.

Moreover, a lockout declared in consequence of an illegal strike or a strike declared in consequence

of an illegal lock-out shall not be deemed to be illegal.

Penalty for Illegal Strikes and Lock-outsA workman who is involved in an illegal strike can be penalized with imprisonment for a termextendable to a month or with a fine or fifty rupees or both. In similar way, an employer who

initiates and continues a lockout is punishable with imprisonment extendable to a month or with afine of one thousand rupees or both. According to Section 25 of Industrial Disputes Act 1947, noperson should provide any sort of financial aid to any illegal strike or lock-out. Any person whoknowingly provides such a help in support of any illegal strike or lock-out is punishable with

imprisonment for a term which may extend to six months, or with fine which may extend to onethousand rupees, or with both.