Industrial Disputes: Definition, Nature

An Industrial Dispute may be defined as a conflict or difference of opinion between management and workers on the terms of employment. 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.

Definition Of Industrial Disputes

According to Section 2(k) of the industrial disputes Act,1947, “Any disputes or differences between employers and employees, or between employers and workmen, or between workmen and workmen, which is connected with the employment or non-employment or the terms of employment or with the conditions of labor, of any person”.

Industrial Disputes

Nature of Industrial Dispute

1. There must be a difference of opinion or a dispute:

  1. Between employers (such as wage-welfare where labour is scarce).
  2. between employers and workmen( such as demarcation disputes).
  3. between workmen and workmen.

2. The subject matter is connected with the employment or non-employment or the terms of employment or with the conditions of labour of any person, or it must pertain to any industrial matter.

3. The relationship between the employer and the workman must be in existence and should be the result of a contract and the workman employed.

Scope of Industrial Dispute

  1. Industrial disputes are considered to overcome the disagreement made between employer and employee in industrial relations.
  2. Acts as connectivity between the firm and the protesters for inappropriate consequences.
  3. Industrial dispute performs a high degree of trust to be made to make a propensity for communication made for conflict.
  4. To handle the desired situation through lockout, strikes, picketing, bans, etc,. which are highly applicable to maintain the situation.

Consequences of Industrial Disputes

1. Industrial Factors: The industrial related factors that cause industrial disputes are:

  1. Nature of employment: The employment methods or policies followed by the organizations in employing an individual may sometimes be the reasons for the conflict/dispute.
  2. Work and its nature: The type of work, unpleasant working conditions,non-availability of machinery to do the work, working hours etc., may lead to an industrial strike.

2. Management attitude towards employees: The management practice which is not under legal requirements and which are unfair to employees are the sources of disputes.

  1. Discriminatory labor policies.
  2. Ineffective leadership/supervision.

3. Government machinery: Through government acts as a balance between the management and workers in setting the disputes, sometimes government-related factors become the causes of industrial disputes.

4. Political interference:

  1. Politics influencing the trade union movement.
  2. Political instability.
  3. Strained central-state relations.
  4. Existence of multiple labor laws.

5. Economic cause:

Royal Commission on labour in India says that the reasons for any strike are entirely or largely the economic reasons.

  1. Low wages.
  2. Dearness allowances(DA)and bonus.
  3. Increasing industrial profits.