UGC NET-CODE 55 : Foundation note

Unit 6 Industrial Disputes.

1. Factors Leading to Industrial Disputes

Industrial disputes arise due to disagreements between employers and employees over various issues. The factors contributing to these disputes include:

• Economic Factors:
  • Wages and Salaries: Disputes often arise over demands for higher wages, bonuses, allowances, and other financial benefits.
  • Working Conditions: Poor working conditions, such as long hours, lack of safety measures, and inadequate facilities, can lead to disputes.
  • Job Security: Insecurity over employment, layoffs, and retrenchment are common triggers for industrial disputes.
• Non-Economic Factors:
  • Management Practices: Autocratic or unfair management practices, lack of recognition, and poor communication can create dissatisfaction among workers.
  • Union Rivalries: Conflicts between different trade unions within the same organization can lead to disputes.
  • Political Interference: The influence of political parties on trade unions and their involvement in industrial disputes can exacerbate conflicts.
• Technological Factors:
  • Automation and Mechanization: The introduction of new technology that leads to job displacement or changes in job roles can result in disputes.
  • Skill Mismatch: Disputes can arise if workers are not adequately trained to handle new technologies or if their existing skills become obsolete.

2. Forms of Industrial Disputes

Industrial disputes can take various forms, depending on the issues involved and the strategies adopted by the parties:

• Strikes: Workers collectively stop working to press their demands. Types of strikes include:
  • General Strike: A strike that involves all or most of the workers across different industries.
  • Sympathetic Strike: A strike by workers in support of the demands of another group of workers.
  • Wildcat Strike: A spontaneous, unauthorized strike without the approval of the union leadership.
  • Sit-Down Strike: Workers occupy the workplace but refuse to work.
• Lockouts: Employers close the workplace and prevent workers from entering as a response to a strike or as a coercive measure to settle a dispute.
• Gherao: A form of protest where workers surround the workplace or the residence of management, preventing them from leaving.
• Picketing: Workers or union members demonstrate outside the workplace to prevent others from entering or to draw attention to their demands.
• Go-Slow: Workers deliberately reduce their pace of work to disrupt production without stopping work entirely.

3. Trends in Industrial Disputes

• Decline in Traditional Disputes: With globalization and economic reforms, traditional forms of disputes like strikes and lockouts have declined, especially in the organized sector.
• Rise of Disputes in the Informal Sector: The informal sector, with its lack of formal contracts and labor protections, has seen an increase in disputes.
• Increase in Legal Disputes: There is a growing trend of resolving disputes through legal channels, such as labor courts and tribunals, rather than through direct action like strikes.
• Focus on Rights-Based Disputes: Disputes are increasingly centered around issues like contract labor, minimum wages, and social security rather than purely economic demands.

4. Prevention and Settlement of Industrial Disputes

Prevention of Industrial Disputes:

• Collective Bargaining: Encouraging dialogue between employers and employees to negotiate terms and conditions of employment can prevent disputes.
• Grievance Redressal Mechanism: Establishing a formal mechanism for addressing worker grievances can help resolve issues before they escalate into disputes.
• Works Committees: Comprising representatives from both management and workers, these committees work to promote industrial harmony and prevent disputes.

Settlement of Industrial Disputes:

• Conciliation: A process where a neutral third party, known as a conciliator, assists the disputing parties in reaching an amicable settlement.
• Mediation: A mediator helps the parties discuss their differences and find a mutually acceptable solution.
• Arbitration: In arbitration, the disputing parties agree to submit their conflict to an arbitrator whose decision is binding.
• Adjudication: When conciliation fails, disputes can be referred to labor courts, industrial tribunals, or national tribunals for adjudication. The decisions of these bodies are legally binding.

5. Role of State and Central Labour Administration

• State Labour Administration:
  • Implementation of Labor Laws: State labor departments are responsible for enforcing labor laws within their jurisdiction.
  • Conciliation and Mediation: State labor officers often act as conciliators and mediators in industrial disputes.
  • Registration and Regulation of Trade Unions: State governments oversee the registration and regulation of trade unions under the Trade Unions Act, 1926.
  • Inspection and Compliance: State labor inspectors ensure that employers comply with labor laws, such as minimum wage, working hours, and safety standards.
• Central Labour Administration:
  • Policy Formulation: The central government formulates national labor policies and laws that apply across the country.
  • Central Industrial Relations Machinery (CIRM): This body, under the Ministry of Labour and Employment, deals with industrial relations in central public sector undertakings and industries of national importance.
  • Labour Courts and Tribunals: The central government establishes labor courts and industrial tribunals for the adjudication of disputes that have national significance.
  • Coordination with State Governments: The central government works in coordination with state governments to ensure uniform application of labor laws and policies.

6. Strikes and Lockouts

• Strikes:
  • Legal Framework: The Industrial Disputes Act, 1947, governs the legality of strikes. For a strike to be legal, it must be preceded by a notice, and it must not violate any specific prohibitions, such as striking during the conciliation process.
  • Implications: Strikes can have significant economic and social impacts, including loss of production, income, and strained labor-management relations.
• Lockouts:
  • Legal Framework: Lockouts are also governed by the Industrial Disputes Act, 1947. Like strikes, lockouts must be preceded by a notice, and they must adhere to the legal requirements.
  • Implications: Lockouts are used by employers as a means of pressuring workers to accept their terms. However, they can lead to prolonged disputes and loss of employment for workers.

7. The Industrial Employment (Standing Orders) Act, 1946

• Purpose: The Act requires employers in industrial establishments to define the terms and conditions of employment through “Standing Orders,” which must be clearly communicated to workers.
• Key Provisions:
  • Submission of Standing Orders: Employers are required to submit draft standing orders to the certifying officer, detailing conditions of employment, including work hours, wage rates, leave policies, and grievance redressal mechanisms.
  • Certification: The standing orders are scrutinized by a certifying officer and, after any necessary modifications, are certified as the official rules governing the establishment.
  • Binding Nature: Once certified, the standing orders become legally binding on both the employer and the employees.
• Importance: The Act aims to ensure transparency in employment terms, prevent arbitrary changes by employers, and provide a clear framework for resolving disputes.

8. The Industrial Disputes Act, 1947

• Purpose: The Act provides a legal framework for the investigation and settlement of industrial disputes. It aims to secure industrial peace and harmony by providing machinery and procedures for the resolution of disputes.
• Key Provisions:
  • Definition of Industrial Disputes: The Act defines an industrial dispute as any dispute or difference between employers and employees, or between employees themselves, connected with employment, non-employment, terms of employment, or conditions of labor.
  • Authorities Under the Act: The Act establishes various authorities for the resolution of disputes, including:
    • Works Committees: Promote good relations between employers and employees.
    • Conciliation Officers: Mediate and promote the settlement of industrial disputes.
    • Labour Courts: Adjudicate disputes relating to the rights of workers under the law.
    • Industrial Tribunals: Deal with disputes involving issues like wages, working conditions, and terms of employment.
    • National Tribunals: Address disputes of national importance or involving issues that affect multiple states.
  • Strikes and Lockouts: The Act regulates the legality of strikes and lockouts, requiring notice and adherence to legal provisions.
  • Layoffs and Retrenchment: The Act provides rules for layoffs, retrenchment, and the payment of compensation to affected workers.
  • Penalties: The Act outlines penalties for illegal strikes, lockouts, and other violations of its provisions.
• Importance: The Industrial Disputes Act is a cornerstone of labor law in India, providing a comprehensive framework for the resolution of disputes and the maintenance of industrial harmony.

Famous Personalities and Theories in Industrial Disputes

• Sydney and Beatrice Webb: British social reformers and founders of the London School of Economics, the Webbs were early advocates of trade unionism and collective bargaining. Their work laid the intellectual foundation for the study of industrial relations. They proposed the theory of industrial democracy, which suggests that workers should have a voice in the management of industries, primarily through trade unions and collective bargaining.
• Karl Marx: Theories of industrial disputes are heavily influenced by Marxist theory, which views such disputes as a result of the inherent conflict between the capitalist class (owners of production) and the working class (laborers). Marxist theory argues that industrial disputes are a form of class struggle, where workers fight against exploitation by capitalists.
• Elton Mayo: Known for his work on the Hawthorne Studies, Mayo emphasized the importance of human relations in the workplace. His findings suggest that industrial disputes often arise not just from economic factors, but from social and psychological factors, such as a lack of communication, recognition, and emotional fulfillment in the workplace.
• Frederick Taylor: The founder of Scientific Management, Taylor’s approach to management focused on optimizing labor productivity through time and motion studies. However, his methods often led to industrial disputes as they neglected the human element of labor, treating workers as mere cogs in the machine.
• John R. Commons: An American economist and labor historian, Commons is considered one of the founders of the field of industrial relations. His work emphasized the importance of collective bargaining and labor rights as essential components of industrial democracy.
• John Dunlop: Dunlop’s Industrial Relations Systems Theory views industrial relations as a system composed of three main actors: management, workers (and their organizations), and the government. These actors interact within a framework of rules established by the larger economic, technological, and political environment.

Conclusion

Understanding the complexities of industrial disputes requires a deep dive into the factors that lead to them, the forms they take, the trends that have shaped them over time, and the legal frameworks designed to manage them. The role of state and central labor administrations in preventing and settling these disputes is crucial for maintaining industrial harmony.

The Industrial Employment (Standing Orders) Act, 1946 and the Industrial Disputes Act, 1947, provide the legal scaffolding that supports the orderly conduct of industrial relations in India. Theories from eminent thinkers like Marx, Taylor, Mayo, and Dunlop help us interpret the dynamics of industrial disputes, offering insights that are valuable not only for students preparing for exams like the UGC NET but also for practitioners in the field of labor relations.

This comprehensive understanding will equip you with the necessary knowledge to excel in your UGC NET Labour Welfare exam and provide a solid foundation for a career in labor relations or human resource management.