Industrial Conflicts: Causes, Prevention & Settlement
What is an Industrial Dispute?
Industrial conflict is a general concept, but when it acquires specific dimensions, it becomes an Industrial Dispute.
According to Section 2(k) of the Industrial Disputes Act, 1947, an industrial dispute is:
“Any dispute or difference between workmen and employers, or between workmen and workmen, or between employers and employers, which is connected with the employment or non-employment or the terms of employment or with the conditions of labour, of any person.”
Essentials of an Industrial Dispute
For a conflict to be legally recognized as an industrial dispute:
There must be a difference or dispute.
It must be between employers/workmen, workmen/workmen, or employer/employer.
It must be connected with employment, non-employment, or terms of labor.
There must be an industry, employer, and workmen involved.
There must be a “collective will” (a substantial number of workmen must support the cause).
Forms of Industrial Disputes
Disputes manifest in various forms of protest.
1. Strikes
A strike is a spontaneous and concerted withdrawal of labor. It is a collective stoppage of work to pressure employers.
Sympathetic Strike: Striking to show support for workers in other industries.
General Strike: A strike by all or most unions in a region/industry.
Sit-down / Tool-down Strike: Workers stop working but refuse to leave the workplace.
Slowdown Strike: “Go-slow” tactics; workers deliberately reduce output without stopping work completely.
Lightning Strike: A surprise strike without notice.
Hunger Strike: Fasting to gain public sympathy and bring moral pressure on the employer.
2. Lock-outs
The counterpart to a strike. This is a weapon used by the employer to close the factory or suspend work until workers agree to certain conditions.
3. Gherao
Meaning “to surround.” A group of workers surrounds management members and prevents them from leaving the office (sometimes without food/water) to inflict physical duress.
4. Picketing and Boycott
Picketing: Displaying banners and signs at the workplace entrance to persuade others not to work.
Boycott: Disrupting normal functioning by persuading others not to cooperate with the employer.
Causes of Industrial Disputes
Why do conflicts happen?
Employment Issues: Wages, bonuses, unjust dismissals, retrenchment, and working conditions (approx. 30% of disputes).
Nationalisation/Automation: Fear of job loss due to computers or modernization.
Administration: Ill-treatment, verbal abuse, or physical assault by supervisors.
Recognition: Failure to recognize a union as a bargaining agent.
Political Causes: Politicians using unions to build tension for private ends.
Psychological/Social: Family or community pressures instigating workers.
Preventive Machinery (How to Avoid Disputes)
The goal is to prevent disputes before they start.
1. Tripartite Bodies (Govt, Employer, & Employees)
Indian Labour Conference (ILC): Advises the government on labor matters and promotes uniformity in labor legislation. Meets once a year.
Standing Labour Committee (SLC): Considers questions referred by the ILC or Central Government. Meets as needed.
Industrial Committees: Discuss specific problems of specific industries (e.g., Coal, Textiles, Cement).
2. Bipartite Bodies (Employer & Employees Only)
Works Committees: Required for enterprises with 100+ workers.
Composition: Equal number of representatives from management and workmen.
Function: To promote amity, resolve day-to-day friction, and serve as a grievance-resolving body.
Joint Management Councils (JMC): Aim to give labor a sense of participation. They are consulted on matters like retrenchment, welfare measures, and safety.
Settlement Machinery (How to Resolve Disputes)
If a dispute arises, the following legal machinery helps resolve it.
1. Conciliation
A process where a neutral third party (Conciliator) brings the two sides together to reduce differences and arrive at an amicable settlement.
Voluntary Conciliation: Both parties agree to use a conciliator.
Compulsory Conciliation: The government mandates the procedure and prohibits strikes during the process.
2. Arbitration
A process where a dispute is submitted to an impartial outsider (Arbitrator) whose decision is binding.
Difference from Conciliation: An Arbitrator gives a judgment (Award) based on justice, whereas a Conciliator tries to reach a compromise.
Voluntary Arbitration: Parties agree to submit the dispute.
Compulsory Arbitration: The government forces the parties to accept arbitration (usually to prevent strikes in essential services).
3. Adjudication (The Legal Remedy)
This involves intervention by a third party appointed by the government to give a final, binding legal decision. It is the ultimate remedy.
The Three-Tier System:
Labour Courts: Adjudicate matters like the legality of standing orders, discharge/dismissal of workers, and withdrawal of privileges (Schedule II matters).
Industrial Tribunals: Adjudicate broader issues like wages, allowances, hours of work, bonus, and retrenchment (Schedule II or III matters).
National Tribunals: Constituted by the Central Government for disputes involving questions of national importance or affecting establishments in multiple states.
To understand how disputes originate in industrial environments, please explore Trade Unionism & Collective Bargaining. Click here to read the full article.