ID&S Chapter

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INDUSTRIAL DISPUTES

AND

STRIKESPresented To: Presented By:

Prof. Roopa Rao Valay Chhaya

Krutarth Gandhi

Darpan MittalSrushti Mehta

Shruti Nair


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Strike Strikes and lock-outs are the methods adopted by

workers and employees respectively to settletheir differences.

When the workers fail to secure a redressal oftheir grievances and fulfillment of their demands

by peaceful negotiations with the employer, theytry to force the employer to come to a settlementby temporary withdrawing of their services inform of strike.

A strike may be defined as a concerted andtemporary cessation of work by workers with aview to furthering of protecting their interestsand rights, in general, and securing a fulfillmentof their specific demands in particular.


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CAUSES OF STRIKES / INDUSTRIAL

DISPUTES

Strike is one of the means adopted by Labour toachieve its goals.

The cause of a strike is either no other alternative

is available, or if available, the workers feel thatthe alternatives will not be as effective as thestrike 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 ofemployment to many workers.


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If, in spite of these risks, the workers go for strike, they do sobecause they feel they have no other way of achieving their goalsand aspirations.

The causes of strikes are different from the objectives which aresought to be achieved through them.

Securing higher wage may be the objective of strike but not itscause.

The cause is absence of another equally or more effective methodacceptable 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 listedas a cause.

Both, demand for higher wage and refusal by employer to concedethe same are causes of differences, that is, causes of industrialdisputes and not the causes of strike.


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Other reasons for strikes and

industrial disputes

Bonus.

Personnel and retrenchment.

Leave and hours of work. Indiscipline and violence.


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Forms of strike

General strike.

A sympathetic strike.

A stay in or sit down strike. Slow down strike.


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Authorized and Unauthorized strikes

On the basis of initiation, strikes may beclassified as authorized and unauthorized

strikes.

An authorized strike is the one which is calledonly after union has given its consent.

An unauthorized strike, usually known as wild

cat strike, is the one which is called withoutthe approval of the union.


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General and Particular strikes

A general strike has a wide coverage, but the degree of

generality or the nature of coverage variesconsiderably from strike to strike.

Some general strikes are confined to city or an

industrial town. Bandhs are the typical example ofsuch strikes in India. The objective behind organizingBandhs has primarily been political in nature.

In contrast to general strikes, particular strikes arelimited in scope and are usually confined to a singleplant or few plants and to single trade or occupation ina particular town or city. Majority of such strikes inIndia are called by the plant level unions.


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Types based on Techniques

Slow-down strike:

In a strike of this type, workers do not actually stopworking, rather they slow down the pace of theirwork. Such strikes are common feature in Indian sugarindustry during the crushing season and in docks

during heavy pressures for unloading goods fromships.

Employers vehemently resent this form of strike andcall it immoral.

Quickie strike:

In quickie, workers remain in place of their work, butthey stop working for brief period, that is for fewminutes or few hours.


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Sit-down strike:

In sit-down strike also, workers remain in place oftheir 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 beworking though at lower pace. In a sit down strike

they stop working all together.


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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 prescribedare such as to lead to a considerably slowing down of the paceof work if rules are strictly followed.

Under such condition, if the unions and worker declare thatthey will work according to rules, they succeed in slowing downthe 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 telegraphand government offices, employees have often resorted towork-to-rule method for fulfilment of their demands. Work-to-

rule movement is generally a slow down movement.


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Ordinary strike:

The strike situation in which worker continues tobe present in the workplaces is not very common.

The most common strike is the one in which

workers formally quit their places of work andprevent others, occasionally by violence but

mostly by persuasion and picketing, from

replacing them.

In this form of strike, picketing, procession anddemonstrations become necessary for the success

of the strike.


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Types Based on Generic Purposes

Sympathetic strike:-

A sympathetic strike, as the term itself indicates, is conductedout of sympathy for the cause of another group of workers,whether on strike or not. Thus, the workers resorting to asympathetic strike have no immediate grievance against theiremployer.

Jurisdictional strike:-

Jurisdictional strikes are conducted with a view to force an

employer to recognize or bargain with a particular trade unioninstead of another. One of the contestants may go on strike topressurize the employer to accept its representational claim. Asa matter of fact , two unions quarrel for their respectivejurisdictions and the strike is the result of this dispute. Hence,such strike known as jurisdictional strikes.


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Political strike

Strikes of this sort are intended to put pressure on the

government to do something or desist from doingsomething. Such strikes are also intended to expressworkers support to a particular political cause.Political strikes have been very common in India.

Bandhs come under this category. Such strikes arenot caused by industrial disputes.

General strikes

General strikes are similar to political strikes in natureand purpose. A general strike which involves theentire working-class of a country can rarely be causedby industrial disputes. A general strike may be a part

of a revolutionary movement.


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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 necessarilyconfined 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 anypolitical support to this movement nor can it

secure any moral sanction.


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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 sametime, they inflict losses on the workers also.


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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


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Factors on the side of employer

The economic position of the enterprise

The attitude of the employer

The availability of alternative ways to producethe goods and services

The support available from other employers


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General Factors

The prevailing economic climate

Policy of the government

Public opinion Composition of the labor force


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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


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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


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Effect on the parties of the strike


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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 byaccepting to Unions terms else will face the strike.


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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.


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EFFECTS ON OTHERS

Consumers of the struck products:

Essential the commodities causing inconveniences to the

consumers.

Electricity, gas, transport and communication, sanitaryservices, 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.


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EFFECT ON THE SOCIETY AS A WHOLE


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Year Mandays lost per strike

(000s)

Mandays lost per lock

out (000s)

1986 12.9 32.1

1993 6.1 30.7

1995 7.8 31.6

1999 19.4 41.82000 23.2 48.6

Number of Mandays lost Per Strike and Per Lock-out in India (1986-

2000)

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).


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Country Description 1981 1987 1997

INDIA

a. No. of Disputes 2,589 1,799 1,305

b. Workers involved (lakhs) 15.9 17.7 9.8

c. Mandays lost (lakhs) 365.8 353.6 169.7

d. Av. Mandays lost per disputes (000s) 14.1 19.7 13.0

USA

a. No. of Disputes 145 46 29

b. Workers involved (lakhs) 7.3 1.7 3.4

c. Mandays lost (lakhs) 169.1 44.6 45.0

d. Av. Mandays lost per disputes (000s) 116.6 97.0 155.2

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

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.


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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 disputeand emergency.


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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 lateron restrictions removed.

To serve general interests of society the right to strikecan also be controlled and regulated.

If the pursuit of individual self interest is reason behindorganizations economic activities restriction on right to

strike would neither be legitimate nor tolerated byworking class.

Useful social purpose letting off steam.

To many- Extremely costly and a luxury.


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