Industrial Conflict
Introduction:
Conflict means different things to different people. For some, a definition of conflict involves fighting, war, and trade embargos and so on. For others, it may be a difference in opinion, perspective or personality.
Industrial Conflict is the situation where disputes and disagreements arise between employees’ and employers over matters related to the working conditions. Conflict is endemic among human grouping because of the divergent interests which are usually diametrically opposed. While employers must maximize his profit by reducing to the minimum level the cost of production which is usually at the detriment of the employees, employees (usually represented by trade union) seek to secure a work condition of a bearable standard and better remuneration. In view of the above, conflict springs up. Industrial conflict (also refer to as trade union) therefore is defined as "any disagreement or dispute between workers and workers or between workers and employers regarding the condition of employments of workers and the general conditions relating to their employment" Industrial conflict can be formal or informal.
While informal conflict in an industrial organization is usually associated with low skilled and purely educated workmen and such conflicts are generally unorganized, exhibited in individual actions such as absenteeism, sabotage, theft etc. Formal conflict on the other hand is associated with high skilled and well educated workers who are properly organized and such formal conflict is usually spearheaded by union leaders who are referred to as "aggitators". Example of organized/formal conflict is strike or withdrawal of service.
One party may feel they are in a conflict situation, when the other party feels that they are just discussing opposing views. A lot depends on our personal "take" of the situation. As managers, we need to be aware of how conflict arises and how to manage conflict. If unhealthy conflict is allowed to develop, the spin off effects can result in lasting damage to relationships and the business.
Defining Industrial Conflict:
So as we can see, there are lots of opportunities for conflict. As a manager, we can take practical steps to minimize unhealthy conflict. Here we will cover two perspectives on the definition of conflict:
When disputes arise in the workplace, they may be because of the roistering schedule or more serious matters, such as the inability of stakeholders to reach a settlement on the negotiation of new wage agreements or things such as unfair dismissals of employees.
An industrial dispute may be defined as a conflict or difference of opinion between management and workers 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 in industrial 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 the workers may resort to strikes, picketing or gheraos.
As per Section of Industrial Disputes Act, 1947, an industrial dispute in defined as any dispute or difference between employers and employers, or between employers 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 between employees 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 or collectively. It must be connected with employment or non-employment or with the conditions of labor. From the point of view of the employer, an industrial dispute resulting in stoppage of work means a stoppage of production. This results in increase in the average cost of production since fixed expenses 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 may have 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 consequences may also arise. Loss due to destruction of property, personal injury and physical intimidation or inconvenience also arises.
For the employee, an industrial dispute entails loss of income. The regular income by way of wages and allowance ceases, and great hardship may be caused to the worker and his family. Employees also suffer from personal injury if they indulge into strikes n picketing; and the psychological and physical 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, national income. They cause wastage of national resources. Hatred may be generated resulting in political unrest and disrupting amicable social/industrial relations or community attitude.
Causes Of Industrial Disputes:
Fundamentally industrial dispute is due to mental unrest or discontent in the workers. Thus unrest is a psychological fact but it also social, political and economic aspects. Briefly, the causes of industrial disputes in India may be classified as follows:
(1) Low Wages. In India the remuneration paid to workers for their work is not adequate to meet their daily expenses. They can neither provide for the education of their children nor can they feed them properly. Their living conditions are deplorable. Their future is uncertain and a deep sense of in-security pervades their life. With the death of the earning member the dependents are reduced to penury and compelled to take to beggary, prostitution and other social evils. The low wages are the main reason of discontent among the workers. It is this discontent which ultimately expresses itself in the form of industrial disputes and tensions.
(2) Rising Prices. If we review the statistics regarding the wages of workers in India we find that in most states the wages have doubled. For example, in 1954, the average annual income of workers in Andhra Pradesh was Rs. 595, which in the year 1964 rose to Rs. 1097. However, the doubling of income has brought no relief to the workers; because whereas the wages have gone up by 200% the prices have risen 400%. Thus the real income of the workers has in fact dropped sharply. After the Second World War, the prices of commondities have been steadily rising, eroding the real earning of the workers. Therefore this inflationary spiral has made the workers poorer still. Thus obviously produces tension and conflict among workers.
(3) Lack of Link in D.A. & Price Rise. The various trade unions in India have been clamoring for 100% neutralization of prices rise by corresponding increase in the Dearness Allowance. This, however, has not happened in all industries. This is a great source of conflict and tension between workers and their employers.
(4) Unsatisfactory Working Conditions. Another cause of industrial disputes is the fact that the working conditions in most of the factories are unhygienic and poor in respect of lighting and ventilation. Thus tells upon the health of the workers. They are mostly suffering from some or the other chronic aliment. Being ill and unhealthy they are depressed and irritable. This make them permanently discontented.
(5) Demand for Leave with Pay. Like workers everywhere the industrial workers, too, need holiday from work from time to time. Therefore, Trade Unions press for a permanent provision of regular leaves with pay. This is also a source of condition among workers and employers/
(6) Resistance Of Misconduct of Officers. Today there is sufficient awakening among the workers and they are very conscious of self respect and preserve it jealously. Therefore, any slight or insult by officers provokes them such incident many a time ignite fire of conflict and tension which take the form if gheraos etc.
(7) Demand for Adequate Bonus. The political leaders and trade unionists have inspired the workers in think and believe that they are partners in mills and factory as a result of their labour. Though in many industries bonus is being paid now, but the among or percentage of bonus is a source of frequent disputes among workers and employers.
(8) Demand for Re-instatement. At times the employers arbitrarily retrench many workers and this naturally is resisted by the affected workers. Besides, other workers are made to feel insecure. Therefore, the workers resist such moves. They stand united and agitate for the re-instatement of the retrenched colleagues.
(9) Non-recognition of Trade Unions. Sometimes employers refuse to recognize the trade unions in their factories. This too becomes a source of contention and conflict and may result in strikes etc.
(10) Retrenchment Due to Sophisticated Machinery. In modern industries many new and sophisticated machines are installed. These machines are labour-saving. Naturally, therefore, as a result of these there is retrenchment of workers. Recently, there was great hue and cry in the life Insurance Corporation of India due to installation of computers.
(11) Political causes. A major cause of industrial disputes is political machinations. Now-a-days various political parties in India view with each other to gain sympathy and support of workers and for this reason got out of way to support all types of agitations and even foment discontent among them.
Consequences of industrial disputes:
1) Unrest: As we have already mentioned, industrial conflicts and disputes led to widespread unrest in social life and also disruption of political harmony and peace.
2) Economic Loss: The industrial disputes most obviously injure the economic interest of both employees and employers. This effect is direct and palpable. But indirectly and in a subtle way this also prove economically harmful to nation as a whole.evryone ultimately is affected.
3) Economic Depression: The industrial disputes are not only harmful to the industry involved but led to all-round economic depression. A closure of one industry leads to the reduction of demand of goods of other industries or trades. For example closure of textile industry would lead to drastic reduction in the demand of cotton.
4) Hardships of Workers: The majority of India do not earn enough to be able to save something for the rainy days. They are hand to mouth, if not worse. Therefore, strikes and lockouts put unbearable burden on them and they are reduced to the level of beggars.
5) Threat of social security and public peace: If industrial disputes spread in an economic form they pose threat to public place.
Methods of Reducing Industrial Conflict:
The industrial disputes occur all over the world. The eminent sociologists, psychologists and economists all over world have given serious thought to this problem and have come out with some concrete suggestions to improve the industrial relations and reduce the conflict:
(1) Growth of Trade Unionism. Usually the workers face problems of which the employers are least aware. The brokers subject them to humiliation and exploit them in so many ways. This does not come to the notice of the employers or authorities. Unless the workers are well organized they cannot get their problems redressed. It is the task of trade unions to keep watch on the workers and help them to get redress for their grievances. In the presence of trade unions the workers feel mentally secure and this indirectly boosts production.
(2) Direct Contact between Workers and Employers. As we have had the occasion to refer to earlier, in many industries there is no direct contact between the employer and the workers and the employer is usually unaware of the problems faced by his employers. Therefore, even when the employers are considerable and sympathetic to workers they are unable to render great help because they are unaware of the real problems faced by the workers. Exploiting this lace of content between workers and employers, the political parties and brokers exploit the workers against the employers to grind their own axe. The best means of resolving this problem is to establish direct content between workers, and employers.
(3) Establishment of Conciliation Boards. A modern method of reducing industrial
tension and conflicts is the establishment of conciliation boards. Such Boards are constituted by persons nominated by workers, employers and Government. Whenever there is some point of dispute between workers and employers the matter is referred if these Boards. They try to resolve the dispute by finding common ground between the points of view of workers and employers. Such Boards have already been established all over India. In the Centre the Chief Labour Commissioner and in the state the labour commissioners head such boards.
(4) Establishment of Joint Committees. Another method usually employed to resolve disputes among employers and workers is to set up joint Committees consisting if the representatives of employers, workers and public. These committees meet from time to time and try to remove misunderstandings between workers and employers. Such joint Committees were established in 1957 and now their number is above 145.
(5) Establishment of Tripartite Committees. As the word tripartite implies these committees are composed of labour experts besides the nominees of the employers and workers. These persons try to sort out amicably the various misunderstanding and disputes which crop up from time to time.
(6) Labour Courts. Sometimes the disputes between workers and employers cannot be amicably resolved by any of the above-mentioned committees or the conciliation board. In order to decide such complex issues government has set up labour courts which decide the issues according the law. In India the Chief Labour Court is in Dhanbad. In Delhi, Dhanbad and Bombay there is one Industrial Tribunal each.
(7) Industrial Truce. Under emergency conditions government can declare industrial truce for a specified period. During this period there can be no strokes or lockouts or any other form of agitation.
By the above-mentioned means an attempt is made to settle, industrial disputes. However, the conditions are still not very satisfactory. The government of India has enacted many laws improve the condition of workers.
Conclusion:
For the employee, an industrial dispute entails loss of income. The regular income by way of wages and allowance ceases, and great hardship may be caused to the worker and his family. Employees also suffer from personal injury if they indulge into strikes n picketing; and the psychological and physical 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, national income. They cause wastage of national resources. Hatred may be generated resulting in political unrest and disrupting amicable social/industrial relations or community attitudes.
Introduction:
Conflict means different things to different people. For some, a definition of conflict involves fighting, war, and trade embargos and so on. For others, it may be a difference in opinion, perspective or personality.
Industrial Conflict is the situation where disputes and disagreements arise between employees’ and employers over matters related to the working conditions. Conflict is endemic among human grouping because of the divergent interests which are usually diametrically opposed. While employers must maximize his profit by reducing to the minimum level the cost of production which is usually at the detriment of the employees, employees (usually represented by trade union) seek to secure a work condition of a bearable standard and better remuneration. In view of the above, conflict springs up. Industrial conflict (also refer to as trade union) therefore is defined as "any disagreement or dispute between workers and workers or between workers and employers regarding the condition of employments of workers and the general conditions relating to their employment" Industrial conflict can be formal or informal.
While informal conflict in an industrial organization is usually associated with low skilled and purely educated workmen and such conflicts are generally unorganized, exhibited in individual actions such as absenteeism, sabotage, theft etc. Formal conflict on the other hand is associated with high skilled and well educated workers who are properly organized and such formal conflict is usually spearheaded by union leaders who are referred to as "aggitators". Example of organized/formal conflict is strike or withdrawal of service.
One party may feel they are in a conflict situation, when the other party feels that they are just discussing opposing views. A lot depends on our personal "take" of the situation. As managers, we need to be aware of how conflict arises and how to manage conflict. If unhealthy conflict is allowed to develop, the spin off effects can result in lasting damage to relationships and the business.
Defining Industrial Conflict:
So as we can see, there are lots of opportunities for conflict. As a manager, we can take practical steps to minimize unhealthy conflict. Here we will cover two perspectives on the definition of conflict:
When disputes arise in the workplace, they may be because of the roistering schedule or more serious matters, such as the inability of stakeholders to reach a settlement on the negotiation of new wage agreements or things such as unfair dismissals of employees.
An industrial dispute may be defined as a conflict or difference of opinion between management and workers 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 in industrial 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 the workers may resort to strikes, picketing or gheraos.
As per Section of Industrial Disputes Act, 1947, an industrial dispute in defined as any dispute or difference between employers and employers, or between employers 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 between employees 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 or collectively. It must be connected with employment or non-employment or with the conditions of labor. From the point of view of the employer, an industrial dispute resulting in stoppage of work means a stoppage of production. This results in increase in the average cost of production since fixed expenses 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 may have 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 consequences may also arise. Loss due to destruction of property, personal injury and physical intimidation or inconvenience also arises.
For the employee, an industrial dispute entails loss of income. The regular income by way of wages and allowance ceases, and great hardship may be caused to the worker and his family. Employees also suffer from personal injury if they indulge into strikes n picketing; and the psychological and physical 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, national income. They cause wastage of national resources. Hatred may be generated resulting in political unrest and disrupting amicable social/industrial relations or community attitude.
Causes Of Industrial Disputes:
Fundamentally industrial dispute is due to mental unrest or discontent in the workers. Thus unrest is a psychological fact but it also social, political and economic aspects. Briefly, the causes of industrial disputes in India may be classified as follows:
(1) Low Wages. In India the remuneration paid to workers for their work is not adequate to meet their daily expenses. They can neither provide for the education of their children nor can they feed them properly. Their living conditions are deplorable. Their future is uncertain and a deep sense of in-security pervades their life. With the death of the earning member the dependents are reduced to penury and compelled to take to beggary, prostitution and other social evils. The low wages are the main reason of discontent among the workers. It is this discontent which ultimately expresses itself in the form of industrial disputes and tensions.
(2) Rising Prices. If we review the statistics regarding the wages of workers in India we find that in most states the wages have doubled. For example, in 1954, the average annual income of workers in Andhra Pradesh was Rs. 595, which in the year 1964 rose to Rs. 1097. However, the doubling of income has brought no relief to the workers; because whereas the wages have gone up by 200% the prices have risen 400%. Thus the real income of the workers has in fact dropped sharply. After the Second World War, the prices of commondities have been steadily rising, eroding the real earning of the workers. Therefore this inflationary spiral has made the workers poorer still. Thus obviously produces tension and conflict among workers.
(3) Lack of Link in D.A. & Price Rise. The various trade unions in India have been clamoring for 100% neutralization of prices rise by corresponding increase in the Dearness Allowance. This, however, has not happened in all industries. This is a great source of conflict and tension between workers and their employers.
(4) Unsatisfactory Working Conditions. Another cause of industrial disputes is the fact that the working conditions in most of the factories are unhygienic and poor in respect of lighting and ventilation. Thus tells upon the health of the workers. They are mostly suffering from some or the other chronic aliment. Being ill and unhealthy they are depressed and irritable. This make them permanently discontented.
(5) Demand for Leave with Pay. Like workers everywhere the industrial workers, too, need holiday from work from time to time. Therefore, Trade Unions press for a permanent provision of regular leaves with pay. This is also a source of condition among workers and employers/
(6) Resistance Of Misconduct of Officers. Today there is sufficient awakening among the workers and they are very conscious of self respect and preserve it jealously. Therefore, any slight or insult by officers provokes them such incident many a time ignite fire of conflict and tension which take the form if gheraos etc.
(7) Demand for Adequate Bonus. The political leaders and trade unionists have inspired the workers in think and believe that they are partners in mills and factory as a result of their labour. Though in many industries bonus is being paid now, but the among or percentage of bonus is a source of frequent disputes among workers and employers.
(8) Demand for Re-instatement. At times the employers arbitrarily retrench many workers and this naturally is resisted by the affected workers. Besides, other workers are made to feel insecure. Therefore, the workers resist such moves. They stand united and agitate for the re-instatement of the retrenched colleagues.
(9) Non-recognition of Trade Unions. Sometimes employers refuse to recognize the trade unions in their factories. This too becomes a source of contention and conflict and may result in strikes etc.
(10) Retrenchment Due to Sophisticated Machinery. In modern industries many new and sophisticated machines are installed. These machines are labour-saving. Naturally, therefore, as a result of these there is retrenchment of workers. Recently, there was great hue and cry in the life Insurance Corporation of India due to installation of computers.
(11) Political causes. A major cause of industrial disputes is political machinations. Now-a-days various political parties in India view with each other to gain sympathy and support of workers and for this reason got out of way to support all types of agitations and even foment discontent among them.
Consequences of industrial disputes:
1) Unrest: As we have already mentioned, industrial conflicts and disputes led to widespread unrest in social life and also disruption of political harmony and peace.
2) Economic Loss: The industrial disputes most obviously injure the economic interest of both employees and employers. This effect is direct and palpable. But indirectly and in a subtle way this also prove economically harmful to nation as a whole.evryone ultimately is affected.
3) Economic Depression: The industrial disputes are not only harmful to the industry involved but led to all-round economic depression. A closure of one industry leads to the reduction of demand of goods of other industries or trades. For example closure of textile industry would lead to drastic reduction in the demand of cotton.
4) Hardships of Workers: The majority of India do not earn enough to be able to save something for the rainy days. They are hand to mouth, if not worse. Therefore, strikes and lockouts put unbearable burden on them and they are reduced to the level of beggars.
5) Threat of social security and public peace: If industrial disputes spread in an economic form they pose threat to public place.
Methods of Reducing Industrial Conflict:
The industrial disputes occur all over the world. The eminent sociologists, psychologists and economists all over world have given serious thought to this problem and have come out with some concrete suggestions to improve the industrial relations and reduce the conflict:
(1) Growth of Trade Unionism. Usually the workers face problems of which the employers are least aware. The brokers subject them to humiliation and exploit them in so many ways. This does not come to the notice of the employers or authorities. Unless the workers are well organized they cannot get their problems redressed. It is the task of trade unions to keep watch on the workers and help them to get redress for their grievances. In the presence of trade unions the workers feel mentally secure and this indirectly boosts production.
(2) Direct Contact between Workers and Employers. As we have had the occasion to refer to earlier, in many industries there is no direct contact between the employer and the workers and the employer is usually unaware of the problems faced by his employers. Therefore, even when the employers are considerable and sympathetic to workers they are unable to render great help because they are unaware of the real problems faced by the workers. Exploiting this lace of content between workers and employers, the political parties and brokers exploit the workers against the employers to grind their own axe. The best means of resolving this problem is to establish direct content between workers, and employers.
(3) Establishment of Conciliation Boards. A modern method of reducing industrial
tension and conflicts is the establishment of conciliation boards. Such Boards are constituted by persons nominated by workers, employers and Government. Whenever there is some point of dispute between workers and employers the matter is referred if these Boards. They try to resolve the dispute by finding common ground between the points of view of workers and employers. Such Boards have already been established all over India. In the Centre the Chief Labour Commissioner and in the state the labour commissioners head such boards.
(4) Establishment of Joint Committees. Another method usually employed to resolve disputes among employers and workers is to set up joint Committees consisting if the representatives of employers, workers and public. These committees meet from time to time and try to remove misunderstandings between workers and employers. Such joint Committees were established in 1957 and now their number is above 145.
(5) Establishment of Tripartite Committees. As the word tripartite implies these committees are composed of labour experts besides the nominees of the employers and workers. These persons try to sort out amicably the various misunderstanding and disputes which crop up from time to time.
(6) Labour Courts. Sometimes the disputes between workers and employers cannot be amicably resolved by any of the above-mentioned committees or the conciliation board. In order to decide such complex issues government has set up labour courts which decide the issues according the law. In India the Chief Labour Court is in Dhanbad. In Delhi, Dhanbad and Bombay there is one Industrial Tribunal each.
(7) Industrial Truce. Under emergency conditions government can declare industrial truce for a specified period. During this period there can be no strokes or lockouts or any other form of agitation.
By the above-mentioned means an attempt is made to settle, industrial disputes. However, the conditions are still not very satisfactory. The government of India has enacted many laws improve the condition of workers.
Conclusion:
For the employee, an industrial dispute entails loss of income. The regular income by way of wages and allowance ceases, and great hardship may be caused to the worker and his family. Employees also suffer from personal injury if they indulge into strikes n picketing; and the psychological and physical 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, national income. They cause wastage of national resources. Hatred may be generated resulting in political unrest and disrupting amicable social/industrial relations or community attitudes.
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