UNIT – 1

DEFINITION AND EVOLUTION OF INDUSTRIAL

RELATIONS
After completion of this chapter the student will be able to :

 Understand the definition, Nature, Scope, objectives and Evolution of Industrial

Relations

STRUCTURE
1.1.1. Introduction
1.1.2. Importance of Industrial Relations
1.1.3. Industrial Relations in India
1.1.4. Nature of Industrial Relations
1.1.5. Scope of Industrial Relations
1.1.6. Objectives of Industrial relations
1.1.7. Parties to Industrial Relations
1.1.8. Significance of tripartite resolutions for Maintaining Harmonious Industrial
Relations

1.1.9. Definitions of Industrial Relations

1.1.10 Evolution of Industrial Relations
1.1.11 Conclusion
1.1.12 Self Assessment Questions
1.1.13 References

1.1.1.INTRODUCTION:
“Industrial relations” pose one of the most delicate and complex problems to modern
industrial society. With growing prosperity and rising wages, workers have achieved a higher
standard of living; they have acquired education, sophistication and greater mobility. Career
patterns have changed for larger section of the people have been constrained to leave their
farms to become wage-earners and salary-earners in urban areas under trying conditions of
work. Ignorant and drenched in poverty, vast masses of men women, and children have
migrated to urban areas, the organizations in which they are employees have ceased to be
individually owned and have become corporate enterprises. At the same time, however, a
progressive, status-dominated, secondary group-oriented, universalistic, aspirant and
sophisticated class of workers has come into being, who have their own trade unions and who
have thus, gained a bargaining power which enables them to give a tough fight to their
employers to establish their rights in the growing industrial society. As a result, the government
has stepped in and played an important role in establishing harmonious industrial relations,
partly, because it has itself become an employer of millions of industrial workers, but mainly
because it has enacted a vast body of legislation to ensure that the rights of industrial workers in
private enterprises are suitably safeguarded. Besides, rapid changed have taken place in the
techniques and methods of production. Long established jobs have disappeared and new
employment opportunities have been created, which call for different patterns of experience and
technical education. Labour employer relationships have therefore, become more complex than
they were in the past and haven been given a sharp edge because of the widespread labour
unrest. In the circumstances, a clear understanding of the factors which make for this unrest
and which are likely to eliminate it would be a rewarding experience for anyone who is
interested in industrial harmony.

1.1.2. IMPORTANCE OF INDUSTRIAL RELATIONS:

Industrial relations constitutes one of the most dedicate and complex problems of modern
industrial society. With growing prosperity and rising wages, workers have gained higher living
wages more education, sophistication and generally greater mobility. Career patterns have
changed as growing proportions have been compelled to leave the farms and become wage
and salary earners under trying factory conditions. Large numbers of men, women and children
have concentrated in a few urban areas under mass ignorance, drenched in poverty and
possessing diverse conflicting ideologies. The working organizations in which they are
employed have become larger and shifted from individual to corporate ownership. There also
exist progressive-achieved, status-dominated secondary group oriented, universalistic and
aspirant-sophisticated class in the urban areas. Employees have their unions

1.1.3. INDUSTRIAL RELATIONS IN INDIA:

India was greatly advanced in the field of industry and commerce in the past, as evidenced
from its ancient literature .in ancient times the highest occupation in our country was agriculture
followed by trading. Manual services formed the third rung of occupation. A large number of
occupations was carried on by small manufactures in their cottages, mostly on hereditary basis.
Ancient scriptures and laws of our country laid emphasis on the promotion and maintenance of
peaceful relations between capital and labour. From the early days, craftsmen and workers felt
the necessity of being united. The utility of unions has been stated in Sukla Yajurveda Samhita ,
“ if men are united, nothing can deter them” the descriptions of unions of workmen in different
occupations is found at many places in the Vedic literature and Shastras. Kautilya’s
Arthashastra gives a comprehensive picture of the organization and functions of the social and
political institutions of India and good descriptions of unions of employees, craftsmen or
artisans. During the period of Harsha we hear of “shrenis” and “Sanghs” as well as unions of
labourers and employers at kanauj or “kula” these guild worked according to their own bye-laws
for the management of the unions. However, there were entirely dependent on their masters
and forced work was taken from them. Historical evidence further shows the existence of rules
of conduct and prescribed procedure for the settlement of disputes for promoting coordinal
relations between the parties. The working relations, however, in those days were more or less
of a personal character and are very much distinguishable from the present day industrial
relations as have gradually developed with the growth of large scale industries.

1.1.4. NATURE OF INDUSTRIAL RELATIONS:

Industrial relations do not constitute a simple relationship between the employers and
employees. They are complex and multi-dimensional resting economic, historical, social,
psychological, ethical, political, legal and other variables. It is a dynamic concept which depends
up on the pattern of society, economic system and political set-up of a country and changes with
the changing economic and social order. It is an art of living together for the purposes of
production, productive efficiency, human well being and industrial progress., the existence of
good human relations, organised labour movement, collective bargaining, fair dealing by
management with the workers, joint consultation at all levels, etc. is necessary for the
establishment and maintenance of harmonious industrial relations and for building up new
attitudes and institutions.

Industrial relations in the modern times call for an interdisciplinary approach to their
study. If we make industrial disputes the centre of a circle, it will have to be divided into various
segments. A study of the conditions of work, mainly of the levels of wages and security of
employment, comes under the purview of economic; their origin and development under history,
the resultant social conflict under sociology, the attitudes of the combatants, the government
and the press under social psychology; their cultural inter-actions under cultural anthropology;
state policies bearing on the issues involved in the conflict under political science the legal
aspects of disputes under law; the issues arising out of international aid (to combatants) under
international relations; the technological aspects (for example. Control of temperature and
introduction of rationalization) of disputes under technology; and the quantitative assessment of
losses incurred by the parties and the country’s economy under mathematics.

1.1.5 SCOPE OF INDUSTRIAL RELATIONS:

Industrial relations refer to the continuing relationship that emerges out of the day to day
association between labour and management. There are two important aspects of such
relationship:

1) Relations between individual workers and manager(s) called personnel relations

2) Collective relations between labour unions and management called labour relations
or labour management relations. The pattern of labour management relations is
shaped by state intervention.

1.1.6. OBJECTIVES OF INDUSTRIAL RELATIONS:

The primary objective of industrial relations is to bring about good and healthy relations between
the two partners in industry-the labour and the management. It is on this objective that other
objectives revolve. According to kirkadly, “the state of industrial relations in a country is
intimately connected with the form of its political government and the objectives of an industrial
organization may change from economic to political ends”. He divides objectives into four.
  Improving the economic condition of workers in the existing state of industrial
management and political government
 Control by the state over industries to regulate production and industrial relations;
 Socialisation or nationalization of industries by making the state itself the employer; and
 Vesting the proprietorship of the industries in the workers

The labour management committee of the Asian Regional Conference of the ILO has
recognised certain fundamental principles as objectives of social policy in governing
industrial relations with a view to establishing harmonious labour-management relations.
They are

1. Good labour-management relations depend on employers and trade unions being

able to deal with their mutual problems freely, independently and responsibly.

2. The trade unions and employers and their organizations re desirous of resolving
their problems through collective bargaining though in resolving such problems the
assistance of appropriate government agencies might be necessary in public
interest. Collective bargaining, therefore, is the corner-stone of good relations and,
hence the legislative framework of industrial relations should aid the maximum use
of their process of mutual accommodation.

3. The workers and employers organization should be desirous of associating with

government agencies in consideration of general, public social and economic
measures affecting employers and workers relations.

THE OTHER OBJECTIVES OF INDUSTRIAL RELATIONS AS FOLLOWS :

4. To safeguard the interest o the labour as well as the management by securing the
highest level of mutual understanding and goodwill between all sections in industry
which take part in the process o production;

5. To avoid industrial conflicts, and develop harmonious relations, which is essential

for productive efficiency of workers and industrial progress in a country;

6. To raise productivity to a higher level in an era of full employment by lessening the

tendency of higher labour turnover and frequent absenteeism;

7. To establish and maintain Industrial Democracy, based on labour partnership not

only for sharing gains of organization but of managerial decisions themselves so
that individuals’ personality is fully recognised and developed into a civilized citizen
of the country;

8. To bring down strikes, lockouts and gheraos by providing better and reasonable
wages and improved living conditions, and fringe benefits to the workers;

9. To bring about government control over such units and plants which are running at
losses or where production has to be regulated in public interest; and
 10. Through Industrial Relations, the state endeavours to bridge the gap between the
imbalanced, disordered and maladjusted social order and the need for reshaping
the complex social relationships adaptable to the technological, advances by
controlling and disciplining its members and adjusting their conflicting interests-
protecting some and restraining others-and evolving a healthy social order.

Therefore maintenance of good human relationship is the main theme of industrial relations,
because in its absence the whole edifice of organizational structure may crumble down. As such
the employees constitute the most valuable asset of any organization and consequently any
neglect of this important source is liable to result in an increased cost of production, in terms of
wages and salaries benefits and services; working conditions, increased labour turnover,
absenteeism, indiscipline and cleavages; strikes and walkouts; transfer on the ground of
discontent and the like besides deterioration of quality of goods and strained relations between
the employees and the management.

On the other hand, a contented labour force may bring about outstanding success besides
earning huge profits and goodwill for the enterprise and peaceful industrial atmosphere.
Therefore, if the intrinsic abilities of employees is properly utilised, it may prove dynamic motive
force for running the enterprise at its optimum results besides working as an elixir for maximum
individual and group satisfaction in relation to work performed.

The objectives of industrial relations include:

a) Promotion and development of healthy labour-management relations’

b) Maintenance of industrial peace and avoidance of industrial unrest
c) Development of industrial democracy.

1.1.7 PARTIES TO INDUSTRIAL RELATIONS

Simply stated, industrial relations are the outcome of the employment relationships in
industry. The state influences these relations to a great extent. Thus, there are three major
variables in industrial relations:

 Workers and their organizations: the personnel characteristics of workers, their

culture educational attainments, qualifications, skills, attitude towards work, etc. play an
important role in industrial relations. Workers organizations, known as trade unions, are
political institutions. Trade unions are formed for safeguarding the economic and social
interests of the workers. They put pressure on the management for the achievement of
these objectives.

 Employers and their organizations: the employers are a very important variable in
industrial relations. They provide employment to workers and try to regulate their
behavior for getting high productivity from them industrial unrest generally arises when
the employers’ demands from the workers are very high and they offer low economic
and other benefits. In order to increase their bargaining power, employers in several
industries have organised employers associations. These associations put pressure on
the trade unions and the government. They also participate in tripartite bodies
constituted by the government to regulate industrial relations.
  Government: the government exerts an important influence on industrial relations
through such measures as providing employment, intervening in working relationships
and regulating wages, bonus and working conditions through various laws relating to
labour. The government keeps an eye on both the trade unions and employers
organisations to regulate their behavior in the interests of the nation.

1.1.8 SIGNIFICANCE OF TRIPARTITE RESOLUTIONS FOR

MAINTAINING HARMONIOUS INDUSTRIAL RELATIONS
In December 1947, the industries conference consisting of representatives of government,
employers and workers unanimously adopted an important resolution on industrial truce. Some
notable extracts from the resolution are as follows:

1. Increase in production which is so vital to the economy of the country cannot

be achieved without the fullest cooperation between labour and management and
stable and friendly relations between them.
2. The employers must recognize the proper role of labour in industry and the
need to secure for labour fair wages and working conditions.
3. Labour for its part must give equal recognition to its duty in contributing to the
increase of the national income without which a permanent rise in the general
standard of living cannot be achieved.
4. Mutual discussion of all problems common to both and a determination to
settle all disputes, without recourse to interruption in or slowing down of production
should be the common aim of employers and labour.
5. Fullest use should be made of statutory and other machinery for the resolution
of industrial disputes in a just and peaceful manner; where it does not exist, it should
be created without delay. Such machinery should as far as possible be uniform
throughout India.
6. There should be establishment of machinery for the study and determination of
fair wages and conditions of labour, and fair remuneration for capital and methods of
association of labour in all matters concerning industrial production.
7. There should be constitution in each industrial undertaking of works committee
representing management and duly elected representatives of labour for the
settlement of any dispute which may arise from day-to-day.
8. The conference invites labour and management to assist government to
secure, promote and guarantee such agreements between the parties as will usher in
a period of contented and orderly advancement towards a cooperative
commonwealth.

1.1.9 DEFINITIONS OF INDUSTRIAL RELATIONS

“Industrial relations” refer to a dynamic and developing concept which is not limited to the “the
complex of relations between trade unions and management” but also refers to the “general
web of relationship normally obtaining between employers and employees, a web, much more
complex than the simple labour-capital conflict”.

Different authors have defined industrial relations, the definitions as follows:

 The term industrial relations explains the relationship between employees and
management which stems directly or indirectly from union-employer relationship
V. Agnihotri

 Industrial relations are broadly concerned with bargaining between employers and trade
unions on wages and other terms of employment. The day-to-day relations within a
plant also constitute one of the important elements and impinge on the broader aspects
of industrial relations
C.B.Kumar

 The field of industrial relations includes the study of workers and their trade unions,
management and employers’ associations and the state institutions concerned with the
regulation of employment

H.A. Clegg.

 The Labour Dictionary defines ‘industrial relations’ as ‘the relation between employers
and employees in industry’.
 Industrial Relations is an art, the art of living together for purposes of production
J. Henry Richardson

 According to Dale Yoder, ‘industrial relations’ describe ‘relationships between

management and employees or among employees and their organizations, that
characterize or grow out of employment’. In order that the term ‘industrial relations’
could cover every sector of the labour force in all parts of the world, the International
Institute of Labour Studies has defined it as ‘social relations in production’.

 Industrial relations is that part o management which is concerned with the manpower of
the enterprise-whether machine operator, skilled worker or manager
Bethel and others

 Industrial relations may be defined as the relations and interaction in the industry
particularly between the labour and the management as a result of their composite
attitudes and approaches in regard to the management of the affairs of the industry, for
the betterment of not only the management and workers but of the industry and natural
economy as a whole.

 According to John T. Dunlop, ‘Industrial societies necessarily create industrial

relations, defined as the complex of interrelations among managers, workers and
agencies of government’. Today, this term stands for such a wide variety of practices
and institutions and has been used in such divergent contexts, that to define just an
essence of it, is an extremely complicated task. However, a few elements of this term
are clear. These are as follows:

(i) Originally, the term stood for employer–employee relations in industry.

 (ii) (ii) Later on, when the workers organized themselves into trade unions and the latter
started dealing with employers, trade union activities also came to be included under
this term.

(iii) Still later, when the relations between employers and employees came to be vested
with public importance and ceased to be private, the state had to be involved in such
relations. Therefore, the activities of the state designed to modify, regulate and
control relations between employers and employees also became a part of industrial
relations.

(iv) The term ‘industry’ is no longer confined to a small segment of economic activity, but
has come to include all gainful employments, including service under the state. The
relationship between the state and its employees has also come to acquire many of
the characteristics and features of employer–employee relationship in the industry.
Therefore, employer–employees relationship under public services has also come to
be covered by the term.

1.1.10. EVOLUTION OF INDUSTRIAL RELATIONS

The origin of industrial relations lies in the employer–employee relationships. The
moment workers are divorced from any ownership of the instruments, materials and means of
production, they become wage-earners depending for their livelihood upon wages alone. The
people who own the instruments and materials of production become their employers and own
the products. In the beginning of the industrial society, the economic system consisted of a large
number of small competitive businesses and industrial establishments, each employing a small
number of workers. The relationship between an employer and his employees was informal,
personal and intimate, but with the growth of the giant-sized joint-stock companies and business
corporations, each employing in many cases thousands of workers, the relationship between
the employer and his employees became no longer intimate and informal. Formal institutions
grew up to regulate this relationship. Such factors as the intervention of the state, the growth of
trade unions and their federations, employers’ associations, the growth of the sciences of
personnel management, industrial psychology and industrial sociology all have tended to
influence the spirit and the course of the relationship between employers and employees.

These factors have changed the nature of employer–employee relationship and have
converted this private relationship into a relationship of public importance, affecting the welfare
of the community as a whole. One can no longer talk of the employer–employee relationship as
the private concern of the employer and his employees only. The maintenance of industrial
peace and the smooth functioning of industrial relations are the basic requirements of public
welfare. The trade unions and their federations of today, as well as the large business
corporations separately command an aggregate of power, which can be used for the welfare as
well as for the disruption of society. The struggle between these two wings of industrial relations
fighting for the sharing of the joint products of labour and capital is not a scene which one can
view with equanimity. The result is that the problems of industrial relations, such as strikes and
lock-outs, industrial discipline, hiring and firing, promotion and transfer, payment of wages,
bonus and fringe-benefits have become essentially acute and demand understanding and
constructive solutions.
1.1.11 CONCLUSION:
Industrial system has brought about number of complexities which have rendered the
management of people in an enterprises more difficult and complicated than ever before
traditional industrial relations gradually giving place to modern industrial relations posing a
variety of complex and complicated problems covering all levels of employees at various
levels of management its main objective is to develop the cordial relations in the organization.

1.1.12 SELF ASSESSMENT QUESTIONS:

1) Explain the concept of industrial relations and its significance in today’s 21st century
business
2) Define Industrial relations? Explain the concept of Evolution of Industrial relations
3) What is Industrial relations? Explain its objectives?
4) Explain the importance of IR in Indian industries?

1.1.13 SUGGESTED BOOKS:

1) Salamon, Michael, Industrial Relations Theory and Practices, Prentice Hall, New
Delhi,1987.
2) Arun Moonappa, Industrial Relations, Himalaya Publishing House, New Delhi.
3) G.P. Sinha and PRN Sinha, Industrial Relations and Labour Legislations, Oxford & IBH,
New Delhi, 1987.

Dr. P. SRINIVASA RAO

MBA M.Phil Ph.D., UGC NET
Dept. of Commerce& Business Admn.
UNIT 1

LESSON 2

DOMINANT ASPECTS OF INDUSTRIAL

RELATIONS
After completion of this chapter the student will be able to

 Understand the dominant aspects of Industrial Relations

STRUCTURE
1.2.1. Introduction
1.2.2. Cooperation
1.2.3. Conflict
1.2.4. Self Assessment Questions
1.2.5. Suggested Readings

1.2.1 INTRODUCTION :
There are two important aspects of industrial relations’ scene in modern industrial
society. These are: (i) cooperation and (ii) conflict.

1.2.2 COOPERATION :
Modern industrial production is based upon cooperation between labour and capital.
Here, labour stands for the workers who man the factories, mines, and other industrial
establishments or services. Capital stands for the owners of business enterprises who supply
the capital and own the final products. The cooperation between the two is one of the basic
requirements for the smooth functioning of modern industries and growth of industrialization.
This needs no further elaboration as it is clear that large factories and other business
establishments cannot run successfully unless there is close cooperation between labour and
capital. The very fact that the present industrial organization and the economic structure has
been able to turn out a quantity of goods and services unprecedented in the history of mankind,
is an index of the extent of cooperation between the two. Cooperation is the normal feature of
industrial relations. However, this cooperation flows from the pursuit of self-interests both by the
owners of capital and the owners of the labour power, that is, the workers. The owners of
business enterprises offer employment, wages and other amenities of life to the workers. The
workers in their turn offer their services. Thus, there is a fair degree of give and take and serving
of mutual interests which is at the base of cooperation between the two.
 But this cooperation is of a minimal degree and is nothing more than the mere coming
together of labour and capital or the union and the management, and is devoid of any voluntary
choice of, and regard for, the other as a partner. It flows from the necessity that some sort of
working relationship has to be reached in order that the factory operations, on which both are
dependent, may continue. Thus, it is necessary and functional cooperation, in the absence of
which, neither of the parties can satisfy its needs/ interests.

1.2.3. CONFLICT
The second aspect of the system of industrial relations obtaining today is the existence
of conflict. Conflict, like cooperation, is inherent in the industrial relations set up of today. It
becomes apparent when industrial disputes resulting in strikes and lock-outs become frequent.
The prevailing industrial unrest, the frequency of work-stoppages resulting either from strikes or
lock-outs, and the slowing down of production, are the occasional expressions of the ever
present conflict between workers and management.

The daily newspapers give enough indication of the existence of industrial conflict. The
maintenance of an elaborate machinery by the state for the prevention and settlement of
industrial disputes flowing from industrial conflict is an indication of its extent and depth. In the
case of physical health, we rarely pay attention to it so long as we are healthy; similarly, so long
as industrial peace prevails and production of goods and services continues uninterrupted, there
is little talk of cooperation between labour and management, but any work-stoppage caused by
strikes or lock-outs is hotly discussed and debated; and solutions are suggested and remedies
adopted. Thus, it is clear that the industrial relations’ picture consists of two dominant aspects:
cooperation and conflict.

1.2.4 SELF ASSESSMENT QUESTIONS

1) Define Industrial Relations?
2) Explain the concept of Dominant Aspects of Industrial relations

1.2.5 SUGGESTED READINGS

1) Mamoria CB, Dynamics of Industrial Relations in India, Himalaya Publishing House,
Bombay.
2) Salamon, Michael, Industrial Relations Theory and Practices, Prentice Hall, New
Delhi,1987.
3) Arun Moonappa, Industrial Relations, Himalaya Publishing House, New Delhi.
4) G.P. Sinha and PRN Sinha, Industrial Relations and Labour Legislations, Oxford & IBH,
New Delhi, 1987.

Dr. P. SRINIVASA RAO

MBA M.Phil Ph.D., UGC NET
Dept. of Commerce& Business Admn.
UNIT – I
LESSON –3
NATURE OF INDUSTRIAL CONFLICT AND
INDUSTRIAL DISPUTES
After completion of this chapter the student will be able to

 Understand the Nature of Industrial Conflict and Industrial Disputes

STRUCTURE
1.3.1. Genesis of Industrial conflicts
1.3.2. Definitions and Essentials of a Dispute
1.3.3. Conflict and Dispute
1.3.4. Nature of Industrial Conflict
1.3.5 Results of Industrial Conflict
1.3.6 Industrial Dispute
1.3.7 Self Assessment Questions
1.3.8 Suggested Readings

1.3.1 GENESIS OF INDUSTRIAL CONFLICTS:

Modern industrialism has not been an unmixed blessing. It has created a yawning gulf
between management and labour because of the absence of worker’s ownership of means of
production. Power has been concentrated in the hands of a few entrepreneurs, while a majority
has been regulated to the insignificant position of mere wage earners. The workers have now
come to realize that most of their demands can be satisfied if they resort to concerted and
collective action; while employers are aware of the fact that they can resist these demands. This
denial or refusal to meet their genuine demands has often led to dissatisfaction on the part of
workers, to their distress, and even to violent activities on their part, which have hindered
production and harmed both the workers and the employers.

‘Conflict of Interests’ of management and labour is the progeny of the capitalist form of
economic organization, wherein the ambitions of parties involved are unlimited whereas the
means to gratify them are limited and the end product of this dissimilitude is antagonism
between the two parties. “The profit maximisation goal of management may demand changes in
the types of goods produced, installation of new machineries, and adoption of newer methods of
production involving loss of hard-earned skills, transfers, retrenchment and compulsory
retirement of workers. On the other hand, the workers expect and demand stability in their
income, security of employment, protection of skills and improvement in their status.

Profit maximization may also require authoritarian administration of the enterprise, closer
supervision of workers, maintenance of strict discipline and complete obedience to the rules of
the enterprise. On the contrary, workers may demand a share in the management of the
enterprise, a voice in the formulation of standing orders and scope for self-expression and a
respect for the dignity of their individuality. Hence, it is not only the sharing of the fruits of the
industry that generates conflict; the very fact of how production is to carried on and how costs
are to be shared also becomes a major source of conflict between management and labour

1.3.2 DEFINITIONS AND ESSENTIALS OF A DISPUTE:

According to the Industrial dispute Act 1947, section 2(k) Industrial dispute means any
dispute or difference between employers and employers, or between employers and workmen
or between workmen and workmen, which is connected with the employment or non-
employment or terms of employment or with the conditions of labour of any person.”

For a dispute to become an industrial dispute, it should be satisfy the following

essentials:
1) There must be a dispute or a difference (a) between employers and
employers (such as wage – warfare where labour is scarce); (b) between
employers and workmen (such as demarcation dispute); and (c) between
workmen and workmen.

2) It is connected with the employment or non-employment or the terms of

employment or with the condition of labour of any person (but not with the
mangers or supervisors), or it must be pertaining to any industrial matter.

3) A workman does not draw wages exceeding Rs. 500 per month

4) The relationship between the employer and the workman should be in

existence and should be the result of the contract and the workman actually
employed.

Industrial disputes, thus means dispute relating to existing industry, it must be a real
dispute and the person regarding whom the dispute is raised and the parties to a dispute must
have a direct or substantial interest.

The term “Industrial Dispute” has been interpreted and analysed differently in different
case situations by the court. Some of the principles to judge the nature of a dispute were
evolved by the courts as follows:
1) The dispute must affect large group of workmen who have community of interest and
the rights o these workmen must be affected as a class in the interest of common
good. In other words considerable section of employees should necessarily make
common cause with the general lot.

2) The dispute should invariably be taken up by the industry union or by an appreciable

number of workmen.

3) There must be concerted demand by the workers for redress and grievance
becomes such that it turns from individual complaint into the general complaint.

4) The parties to the dispute must have direct and substantial interest in the dispute,
i.e. there must be same nexus between the union which espouses the cause of the
 workmen and the dispute. Moreover, the union must fairly claim a representative
character.

5) If the dispute was in its inception an individual dispute and continued to be such till
the date of its reference by the Government for adjudication, it could not be
converted into an industrial dispute by support subsequent to the reference even of
workmen interested in the dispute.

1.3.3 CONFLICT AND DISPUTE:

Conflict as one of the features of industrial relations is a general concept, when it expresses
itself on creates from it become a dispute i.e. industrial conflict is general whereas industrial
dispute is specific. Industrial dispute in the literature including government publications, write
johri is used to denote work-stoppages as well as those differences between labour and
management that are settled through the industrial relations machinery.

1.3.4 NATURE OF INDUSTRIAL CONFLICT

Industrial conflict is human conflict. It is just one aspect of the general conflict inherent
in the capitalist society, based upon the pursuit of self-interest in the economic life by every
individual and the group to which he belongs. If an economic and social order is based upon the
open acceptance of the principle that each individual is the best judge of his self-interest and he
should be free to pursue this interest, conflict becomes inherent in that order. The industrial
conflict between labour and capital is one manifestation of this all-pervasive conflict in the
capitalist society. The coming together of workers motivated by their urge of obtaining the
highest possible wages and the owners of capital motivated by profit maximization is the basic
cause of industrial conflict in the capitalist economic system. The products of the joint efforts of
labour and capital, that is, the output or proceeds of an enterprise being limited at a particular
time, if more goes to labour in the form of higher wages and other amenities of life, less is
available for profits to the owners of capital resources. Thus, at a particular moment of time, the
satisfaction of the interests of labour conflicts with the pursuit of the interests of capital and the
two groups become antagonistic to each other.

It has to be realized that this conflict is like the conflict between any buyer and seller.
The seller seeks to sell his commodity at the highest possible price that he can extract and the
buyer seeks to pay the lowest possible price. The workers are the sellers of the commodity—
their labour power; and the employers buy this commodity. Even though the ILO may declare
that ‘labour is not a commodity to be sold and purchased’, it continues to be so. Naturally, the
determination of the price of labour including other terms and conditions of employment
becomes the chief source of conflict between the employer and his employees.

Further, it has to be appreciated that the conflict is not personal, but results from the
capitalist system itself. In a competitive market situation, the constant drive for cost reduction is
needed for the mere survival of a business enterprise. The employer attempts to economize on
wages also because they constitute an important element in the cost of production. But what is
cost to the employer is the main source of income to the workers who seek to maximize their
wages and industrial conflict is the result.
 It is not that the employer is cruel and enjoys the sight of misery, disease, squalor and
want among his workers. The point is that he cannot afford to be liberal and altruistic. He has
his own limitations of the system.

Moreover, labour power is fundamentally different from any other commodity. Not only is
the labour power a function of time and is, therefore, most perishable but also that it cannot be
separated from the labourer. The labourer sells his labour power but retains it in his person. A
seller is least concerned with what happens to the commodity after he has sold it. But a labourer
is very much concerned with the way the employer uses the labour power, with the temperature
under which it is used, speed with which it is worked, and the tension and the pressure that the
use creates. Thus, the conditions under which the work is performed are also of utmost
importance to the life and happiness of the labourer and do become a source of conflict.

Conflict of interests is found not only in the spheres of wages and profits alone, rather it
bedevils the totality of relationship arising out of coming together of labour and capital in the
capitalist form of economic organization. The profit maximization goal of management may
demand change in the types of goods produced, installation of new machineries, adoption of
newer methods of production involving loss of hard-earned skills, transfers, retrenchment and
compulsory retirement of workers. On the one hand, the workers expect and demand stability in
their income, security of employment, protection of skills and improvement in their status.

1.3.5 RESULTS OF INDUSTRIAL CONFLICT

It requires not a very imaginative mind to realize the consequences of a situation full of
conflicts. It is surprising that the existing set-up of industrial relations, whose roots lie in an all-
pervasive conflict, functions at all. It is clear that such conflicts have adverse effects on
industrial production, efficiency, costs, quality, human satisfaction, discipline, technological and
economic progress and finally on the welfare of the society. Even in the absence of open strikes
resulting in strikes and lock-outs, where the production machinery comes to a halt and the costs
and losses are apparent, the corrosive effect of industrial conflict is much too widespread and
deep to be neglected. A discontented labour force, nursing in its heart mute grievances and
resentments, cannot be efficient and will not possess a high degree of industrial morale. Under
such conditions, absenteeism and labour turnover increase, plant discipline breaks down, both
the quality and quantity of production suffer, and costs mount up to the detriment of all
concerned—workers, employers and consumers. In the end, the accumulation of these
individual and collective resentments and dissatisfaction finds expression in violent strikes and
lock-outs. Then, the realization comes that something is vitally wrong with the relation between
the workmen and the employer and preventive and curative measures are urgently needed.

1.3.6 INDUSTRIAL DISPUTES:

According to Sec 2 of the Industrial Disputes Act 1947,industrial disputes means any
dispute or difference between employers and employers 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 labour of any person. Industrial disputes
are symptoms of industrial unrest in the same way that boils are symptoms of a disordered body
Industrial disputes may take the form of strikes, go-slow tactics, token strikes, sympathetic
strikes, pen-down strikes, hunger strikes, bandhs, gheraos and lockouts.
 A strike is stoppage of work initiated or supported by a trade union when a group of
employees act together as a last resort to bring pressure on an employer, to resolve a grievance
or constrain him to accept such terms and conditions of service as the employees want to enjoy.
If, however, an employer closes down his factory or place where his workers are employed, or if
he refuses to continue in his employ, a person or persons because he wants to force them to
agree to his terms and conditions of service during the pendency of a dispute, the resulting
situation is a lockout.

Procedure for avoiding strikes, lockouts and other forms of coercive, action, in
connection with industrial disputes between trade unions and employers are generally laid down
in the form of a clause or clauses in an agreement between the two. At the same time, it is also
laid down that there shall be no stoppage of work and no coercive act on the part of either party,
to a dispute till the procedures outlined in the agreement have been gone through and the two
parties have been unable to come to a compromise or reach a settlement.

Classification of Industrial Dispute:

The most common practice is to make distinction between two main types of disputes
relating to terms of employment. They are.

a) Dispute that arise out of deadlocks in the negotiations for a collective agreement,
popularly known as interest disputes; and

b) Dispute that arise from day-to-day workers’ grievances or complaints, popularly

known as grievance disputes

 Interest Disputes : these dispute also called as ‘conflict of interests’ or economic

dispute. They generally correspond to what in certain countries are called collective
labour disputes. In general they relate to the establishment of new terms and conditions
of employment for the general body of workers concerned. In most cases, the disputes
originate from trade union demands or proposals are normally made with a view to the
conclusion of a collective agreement, and a dispute arises when the parties fail in their
negotiations to reach an agreement on the outstanding issues.

The expressions “conflict of interests” and economic disputes both describe the nature of
the issues involved. Since there are generally no mutually binding standards that can be relied
upon to arrive at a settlement of interest disputes, recourse must be had to bargaining power,
compromise, and sometimes a test of economic strength for the parties to reach an agreed
solution. Since the issues in such disputes are “compromisable” they land themselves best to
conciliation, and are a matter of give-and-take of haggling and bargaining between the parties.

 Grievance or Rights Disputes: the dispute also known as conflict of rights or legal
disputes. They involve individual workers only or a group of workers in the same group
and correspond largely to what in certain countries are called individual disputes. They
generally arise from day-to-day working relations in the undertaking, usually as a protest
by the worker or workers concerned against an act of management that is considered to
violate worker’s rights.

Grievances typically arises on such questions as discipline and dismissal, the payment
of wages and other fringe benefits, working time, over time, time off entitlements, promotions,
demotion, transfer, rights deriving from seniority, rights of supervisors and union officers, job
classification problems, the relationship of work rules to the collective agreement and the
fulfillment of obligations relating to safety and health laid down in the agreement. In some
common countries grievances arise especially over the interpretation and application of
collective agreements, grievance disputes are, therefore also called interpretation disputes.
Such grievances, if not dealt with in accordance with a procedure that secure the respect of the
parties, can result in embitterment of working relationship and a climate of industrial strife.

1.3.7 SELF ASSESSMENT QUESTIONS:

1) Briefly explain the concept of Industrial Conflict?
2) Explain the classifications of Industrial Disputes

1.3.8 SUGGESTED READINGS

1) Mamoria CB, Dynamics of Industrial Relations in India, Himalaya Publishing House,
Bombay.
2) Salamon, Michael, Industrial Relations Theory and Practices, Prentice Hall, New
Delhi,1987.
3) Arun Moonappa, Industrial Relations, Himalaya Publishing House, New Delhi.
4) G.P. Sinha and PRN Sinha, Industrial Relations and Labour Legislations, Oxford & IBH,
New Delhi, 1987.

Dr. P. SRINIVASA RAO

MBA M.Phil Ph.D., UGC NET
Dept. of Commerce& Business Admn.
UNIT - 1

LESSON 4

INTERESTS AND RIGHTS OF DISPUTES

RESULTS OF INDUSTRIAL CONSEQUENCES
After completion of this chapter the student will be able to

 Understand the interests and rights of Disputes results of industrial

consequences.

STRUCTURE

1.4.1 Industrial dispute

1.4.1.1 Disputes concerning

1.4.1.2 Disputes concerning Rights

1.4.2 Results of Industrial consequences

1.4.3 Self Assessment Questions

1.4.4 Suggested Readings

1.4.1 INDUSTRIAL DISPUTES:

A dispute between employers and workers or between employers and employers or
between workmen and workmen which is connected with the terms of employment, conditions
of labour or employment or non-employment of workers or other concerned persons. According
to Sec 2 of the Industrial Disputes Act 1947,industrial disputes means any dispute or difference
between employers and employers 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 labour of any person. Industrial disputes are symptoms of
industrial unrest in the same way that boils are symptoms of a disordered body Industrial
disputes may take the form of strikes, go-slow tactics, token strikes, sympathetic strikes, pen-
down strikes, hunger strikes, bandhs, gheraos and lockouts.

A strike is stoppage of work initiated or supported by a trade union when a group of

employees act together as a last resort to bring pressure on an employer, to resolve a grievance
or constrain him to accept such terms and conditions of service as the employees want to enjoy.
If, however, an employer closes down his factory or place where his workers are employed, or if
he refuses to continue in his employ, a person or persons because he wants to force them to
agree to his terms and conditions of service during the pendency of a dispute, the resulting
situation is a lockout.

Procedure for avoiding strikes, lockouts and other forms of coercive, action, in
connection with industrial disputes between trade unions and employers are generally laid down
in the form of a clause or clauses in an agreement between the two. At the same time, it is also
laid down that there shall be no stoppage of work and no coercive act on the part of either party,
to a dispute till the procedures outlined in the agreement have been gone through and the two
parties have been unable to come to a compromise or reach a settlement.

Another way of looking at industrial disputes could be to classify them on the American
pattern, wherein disputes are categorized under two heads;

1) Disputes concerning and

2) Disputes concerning rights

There can be disputes regarding creation of specific rights and there can also be
disputes regarding the implementation of these rights. The former disputes are said to be
disputes regarding interests and the latter disputes regarding rights. An illustration would be
useful to explain these concepts. A disputes concerning a general wage increase or the
acceptance of seniority as the basis of promotion may be said to be a dispute regarding
interests. The resolution of this dispute may create certain rights that are right to a higher wage
or right to promotion on the basis of seniority. Later on, if the employer refuses to make
payment according to the terms of the agreement or the adjudication award or refuses to make
promotion in a specific case on the basis of seniority, disputes regarding implementation of the
rights will arise. Therefore, they can be said to be disputes regarding rights.

Under the Indian context, disputes regarding the implementation of labour laws and
regulations, standing orders, adjudication awards, collective agreements and settlements, wage
boards’ recommendations and administrative orders of the government will fall under the
second category of disputes concerning rights. These disputes in American parlance are called
grievances. The American union and managements are not prepared to submit to arbitration
their disputes regarding interests, but often resort to arbitration as the last stage in setting
disputes regarding rights. In the United States a trade union would be rarely prepared to submit
its demand for a wage increase to arbitration, but once an agreement has been signed, the
union may be willing to submit to arbitration disputes flowing from the implementation or the
interpretation of the agreement

1.4.2 RESULTS OF INDUSTRIAL CONSEQUENCE:

Since industrial dispute exists wherever a difference exists, and a difference can exist
long before the parties become locked in combat, therefore it is not necessary that they should
have come to blows. It is sufficient that they should be sparring for an opening. Thus, whether it
is overt type of dispute like strikes lockouts or of covert types like referred to the industrial
relations machinery for settlement, the discontentment whether simmering or open is reflected
in the behavior of the workers. A discontented labour force, nursing in its heart mute grievances
and resentments, cannot be efficient and will not possess a high degree of industrial morale.
Under such conditions absenteeism and labour turnover increase, plant discipline breakdown,
both the quality and quantity of production suffer and costs escalate to the detriment of all
concerned-workers, employers, consumers and consequently the whole society. In the end
accumulation of these individual and collective resentments and dissatisfactions finds
expression in violent strikes, lockouts and gheraos.

As industrial dispute have adverse effects on industrial production, efficiency, costs,

quality, human satisfaction, discipline technological and economic progress and finally one the
welfare of the society, therefore, preventive and curative measures have to be urgently taken.

1.4.3 SELF ASSESSMENT QUESTIONS

1) Briefly explain the concept of Results of Industrial Consequences?

1.4.4 SUGGESTED BOOKS

1) Mamoria CB, Dynamics of Industrial Relations in India, Himalaya Publishing House,
Bombay.
2) Salamon, Michael, Industrial Relations Theory and Practices, Prentice Hall, New
Delhi,1987.
3) Arun Moonappa, Industrial Relations, Himalaya Publishing House, New Delhi.
4) G.P. Sinha and PRN Sinha, Industrial Relations and Labour Legislations, Oxford & IBH,
New Delhi, 1987.

Dr. P. SRINIVASA RAO

MBA M.Phil Ph.D., UGC NET
Dept. of Commerce& Business Admn.
UNIT – II

LESSON 1

CAUSES OF STRIKES AND INDUSTRIAL

DISPUTES
After completion of this chapter the student will be able to

 Understand causes of strikes and Industrial disputes.

STRUCTURE
2.1.1. Introduction
2.1.2. Meaning of strike
2.1.3. Types of strikes
2.1.4. Causes of strikes and industrial disputes
2.1.5. Self Assessment Questions
2.1.6. References

2.1.1 INTRODUCTION:
According to Sec 2 of the Industrial Disputes Act 1947,industrial disputes means any
dispute or difference between employers and employers 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 labour of any person.

Strike is a very powerful weapon to get its demands accepted by a trade union. It means
quitting work by a group of workers for the purpose of bringing pressure on their employers to
accept their demands. According to industrial disputes act, 1947. Strike means a cessation of
work by a body of persons employed in any industry acting in combination, or a concerted
refusal or a refusal under a common understanding of any number of persons who are or have
been so employed, to contribute to work or to accept employment.

According to C.W. Doten, strikes are merely symptoms of more fundamental

maladjustments, injustices and economic disturbances. Petterson views strike as a temporary
cessation of work by a group of employees in order to express grievance or to enforce a
demand concerning changes in work conditions.”

The word strike is derived from an old English word “strican” meaning thereby ‘to go
away’ since in this form it industrial pretests workers go away from their work called strike.
2.1.2 MEANING OF STRIKE:
The word “strike” generally, denotes refusal by the whole body of workmen to work in
consequence of a dispute. It is an agreement among workmen not to work. It represents
simultaneous stoppage of work on the part of the workmen, strike is generally resorted to induce
the employer to agree the demands of the workmen, if causes detriment upon the economic
position of the employer and ultimately renders the parties more and more amicable to
compromise, more and more willing to procedure from various factors that have contributed to
imposed. It is principal over manifestation of conflict. It is recognised weapon of the workmen for
assisting their bargaining power and for tackling their collective demands upon an unwilling
employer.

Accordingly the definition of strike postulates three main ingredients, namely, (1) plurality
of workmen, (2) cessation of work or refusal to do work, and (3) combined or concerted action.

2.1.3 TYPES OF STRIKES :

There are many types of strikes. A few of them are mentioned below.

 Economic strike,
 Sympathetic strike,
 General strike
 Sit down strike
 Hunger strike
 Slow down strike or Go - slow

 Economic strike

 Sympathetic strike: it is a strike in which the striking workmen have ne

demands or grievances of their own against their employer but they strike work for the
purpose of directly aiding or supporting others in their cause. In other words, the workers
have no direct relation to advancement of interest of the strikers. Such strike is an
unjustifiable invasion on the rights of the employers and is generally unlawful.

 Sit-down strike: sit-down strike is said to have occurred whenever a group of

employees or others interested in obtaining certain objectives in particular business take
possession of property of such business, establish themselves within the plant, stop its
production and refuse access to the occupiers or to other desiring to work. It is the
strike in the traditional sense to which is added the element of trespass of the strikes
upon the property of the employer.

 Hunger Strike: such strike is resorted to either by the leaders of the union or
by some workers all at a time or in a small batch for a limited period or by all workers en
masse at some stage of the dispute, the purpose being to create sympathy into the heart
of the employer and to attract the attention of the public. Resorting to hunger-strike may
be for specific purposes: (1) for enforcing their legitimate demands for securing
improvement in conditions of service in matters sich as wages, dearness allowances
gratuity, which are made by the work-men and which are either ignored by the employer
or their consideration is prolonged for an undue long period; (2) for withdrawal of
disciplinary proceedings against some workers; or (3) for releasing the arrested
 workers.’ Hunger strikes to redress any real or imaginary grievance are not misconduct
provided it is of a non-violent nature and is resorted to peacefully.

 Go-slow: it is a picturesque description of deliberate delaying of production by

workmen pretending to be engaged in the factory and is one of the most pernicious
practices that discontented or disgruntled workmen sometimes resort to. “Go-slow” is a
technical word which is used in describing the tactics of workers when they intentionally
reduce the speed of the work to adopt dilatory tactics to reduce the production or
efficiency while pretending to be engaged in the factory. In other words, it means
anything less than normal work or output by a body of persons employed in any industry
acting in combination or a concerted refusal or a refusal under a common understanding
of any number of persons who are or have been so employed to continue to carry out
their work in a normal manner with normal energy.

It is an alternative to strike in the sense that many times the works resort
to go-slow when the union does not want to resort to full-fledged strike but still
wants to take some alternative action which may be less risky but equally
effective.

Go-slow by workmen has been held to be an insidious method of

undermining the stability of a concern and is reprehensible in character. it has
been castigated as worse than a strike for the simple reason that it means not
only loss of production but added losses on the account of the running of all
machines and equipment without putting these to proper and adequate use.
Therefore go-slow has been considered a serious type of misconduct; and the
workers who resort to go-slow can be dismissed.

 General Strike: It is one type of general strike where the workmen join together
for a common cause and stay away from work. It is generally for a longer period.
It amounts to strike in the legal parlance too.

2.1.4 CAUSES OF INDUSTRIAL DISPUTES/STRIKES:

It can be classify the causes of Industrial disputes into two broad groups.
a) Economic causes b) Non Economic causes.

Economic causes includes wages, bonus, dearness allowance, conditions of work and
employment, working hours leave and holidays with pay and unjust dismissals or retrenchment.
Non economic causes includes recognition of trade unions, victimization, of workers, ill
treatment of by supervisory staff, sympathetic strikes, political causes etc.

1) Wages and Allowances: since the cost of living has generally showed an increasing
trend, the workers have been fighting for higher wages to meet the rising cost of living
and to increase their standard of living. 34.1 percent of the industrial disputes in 1973
were due to demand for higher wages and allowances. This percentage was 36.1
percent in 1974. It decreased to 23.4 percent in 1976. During 1985, 22.5 percent of the
disputes were due to wages and allowances. Also in recent years the real wage in Indian
industry has declined of stagnated causing employees and unions to demand for an
increase in their money wages.
 The wage issue is further aggravated by inter-union rivalry. When a proposed
wage settlement us found acceptable by one union speaking for a ground of
workers, other union/s claiming to represent the same group may reject it. Such
rejection is not always based on merit, but may simply reflect union’s political
consideration and a strong of outside leadership. This precipitates a work-
stoppage and generated the troublesome expectations of additional
improvements in wage gains.

2) Personnel and Retrenchment: personnel and retrenchment causes have also been
important. During 1973, 24.3 percent of the industrial disputes were because of
dismissals, retrenchment etc. as compared to 29.3 percent in 1961. In 1976, personnel
and retrenchment topped the list of causes of industrial disputes with 29.9 percent. The
proliferation of personnel disputes, occurring on an average 24 percent of all disputes is
a direct consequence of tremendous importance workers attach to permanent
employment. With a widespread and continuously increasing in-employment. Those who
are already in employment fiercely resist being thrown out. Trade unions take a serious
view of fines, suspension, dismissal and retrenchment which constitute the core causes
of personnel disputes. Dismissal and retrenchment amount to an industrial death
penalty. Fine and suspension are significant not so much in themselves as because they
can hel build up a dossier against a worker, leading to his eventual dismissal.

3) Bonus: the term bonus implies a payment made to workers at the pleasure of the
management. In our country, it is working class right supported by legislation, namely
payment of Bonus Act, 1965. It regulates the awarding of bonus incomes in India.
Besides the statutory minimum of 8.33 percent, over and above this minimum can be
claimed, of course depending on the company’s profits as reflected in the allocated
surplus. The act also provided that the maximum liability of the management should but
exceed 20 per cent of the workers annual wages. Bonus has been an important factor in
the industrial disputes. 10.3 percent of industrial disputes in 1973 were because of
bonus as compared to 6.9 percent in 1961. 13.8 percent and 15.2 percent of the
disputes were due to bonus during 1976 whereas 4.2 in the year of 1987.

Moreover the availability of a significant guaranteed bonus earning as a

permanent feature, largely independent of the employing organizations economic
performance, must be seen by unions and workers as a positive achievement in
its own right. And the ceiling of 20 percent provides a comfortable cushion
against which unions could negotiate and use their bargaining power.

4) Indiscipline and Violence The number of disputes because of indiscipline and violence
among the workers has been significant during 1987, 15.7 percent of the disputes were
because of indiscipline and violence as compared to only 5.7 percent in 1973. This
shows that indiscipline and violence have increased in industry during the past two
decades.

Industrial work, being group work, cannot be carried on without discipline. Strict
observance of discipline by both the parties has become an exception rather than
the rule, the case of which might lie in political instability, autocratic style of the
management etc. this spoils the cordial atmosphere between the labour and the
management which ultimately give rise to industrial dispute.
 5) Leave and Hours of work: Leave and hours of work have not been so important causes
of industrial disputes. During 1973 1.5 percent of the causes were because of leave and
hours of work. Their percentage share in the industrial disputes was2.2 percent in 1977
and 1.8 percent in 1985. It got reduced to 0.2 percent in 1987.

6) Miscellaneous causes: miscellaneous causes include modernization of plant and

introduction of automatic machinery, recognition of union, political factors etc. these
factors have caused a significant number of industrial disputes in the country.

The whole concept of industrial relations revolves round the principle of friction
dynamics which is the key to the establishment of harmonious relations between
labour and management. We cannot think of any society completely obliviant of
some sort of friction between labour and management.

7) Other causes: the most problematic of all the causes of disputes is the category others
the common tendency is to cursorily dismiss this category as a resident and unimportant
one. Included in this category are causes such as physical amenities, dispute over
allotment of machines, refusal of workers to do their normal work, trade union
recognition and inter-union rivalry. It is not the trivial reasons like demand for physical
amenities, disputes over allotment of work/machines etc. which could cause 20 to 30
percent of all strikes. Surely it is issues relating to trade union recognition and inter-union
rivalry which account for a major portion of this percentage.

8) Psychological and social causes: Roethlisberger and his associates showed that
worker’s contentment does not depend so much on the physical conditions under which
they work or the amount of money they earn as on physical and social relationships they
build up specially with fellow workers. That is, the behavior of the worker in industrial unit
cannot be understood merely in terms of his urge to earn but as a product of various
mental factors such as attitude of the management, the family and the wider community
as well as his personal ambition.

Disequilibrium caused in his behavior by any of these factors renders the worker
emotionally maladjusted and such person/s always carries the potent danger to
industrial peace. Thus, the dispute may occur on account of clash of
personalities, shaped by psychological and social factors.

9) Political causes: Resorts to strikes for political purposes have been frequent in India
and also in the hitherto colonial countries. During the struggle for freedom, strikes had
taken place on account of dismissals or disciplinary action against the workers for
attending political meetings taking part in political demonstrations, etc. the party opposite
to the party in power has reflected tendency to encourage its labour union to go on what
is called political strikes/sympathetic strikes.

Check list of the specific cause of industrial disputes

Economic

1) Division of the fruits of the industry

a) Wage structure and demands for higher wages
b) Methods of job-evaluation
c) Deductions from wages
 d) Incentives
e) Fringe benefits

2) Methods of production and physical working conditions

a) Working conditions
b) Technology and Machinery
c) Layouts
d) Changes in products

3) Terms of employment

a) Hours of work
b) Shift working
c) Promotion and demotion
d) Layoff, retrenchment and dismissal
e) Job-security
f) Retirement

Institutional

1) Recognition of union
2) Membership of union
3) Subjects of collective bargaining
4) Bargaining Unit
5) Union security
6) Unfair Practices

Psychological

1) Clash of personalities
2) Behavioural Maladjustments
3) Demands for recognition of workers’ personality
4) Authoritarian administration
5) Lack of scope for self-expression and participation
6) Undue emphasis on discipline

Denial of Legal and contractual Rights

1) Non-implementation of labour laws and regulations, standing orders, adjudication
awards and so on’
2) Violation of collective agreements, wage boards’ recommendations, customary rights
and privileges and so on.

2.1.5 SELF ASSESSMENT QUESTIONS

1) Define strike
2) Explain the different causes for strikes
3) Briefly explain the concept of Industrial Disputes/Conflict?
2.1.6 SUGGESTED BOOKS
1) Srivastava, S.C. Industrial Relations and Labour Laws, Vikas Publishing House Pvt. Ltd.
New Delhi.
2) Mamoria CB, Dynamics of Industrial Relations in India, Himalaya Publishing House,
Bombay.
3) Salamon, Michael, Industrial Relations Theory and Practices, Prentice Hall, New
Delhi,1987.
4) Arun Moonappa, Industrial Relations, Himalaya Publishing House, New Delhi.
5) G.P. Sinha and PRN Sinha, Industrial Relations and Labour Legislations, Oxford & IBH,
New Delhi, 1987.

Dr. P. SRINIVASA RAO

MBA M.Phil Ph.D., UGC NET
Dept. of Commerce& Business Admn.