A Project On

Meaning and Reasons of Industrial Disputes

[Submitted as a partial fulfilment of B.A.L.L.B(hons) 5 year integrated course]

Session:2019

Submitted : SEPTEMBER,04,2019

Submitted by: Submitted to:

Bhavishyat kumawat Dr. SWATI MEHTA

Roll no. 10 faculty

Sem 5th sec A

 CERTIFICATE

DR.SWATI MEHTA DATE: 04/09/2019

Faculty
University Five Year Law
College University of Rajasthan,
Jaipur.

This is to certify that Mr Bhavishyat kumawat student of semester V, sec. A has carried out
project titled “Meaning and Reasons of Industrial Disputes ”under my supervision. It is an
investigation report of a minor research project. The student has completed research work in
stipulated time and according to the norms prescribed for the purpose.
 DECLARATION

I, BHAVISHYAT KUMAWAT, hereby declare that this project titled “Meaning and
Reasons of Industrial Disputes” is based on the original research work carried out by me under the
guidance and supervision of DR.SWATI MEHTA. The interpretations put forth are based on my
reading and understanding of the original texts. The books, articles and websites etc. which have
been relied upon by me have been duly acknowledged at the respective places in the text.
For the present project which I am submitting to the University, no degree or diploma has been
conferred on me before, either in this or in any other university.
 ACKNOWLEDGEMENT

I would like to express my special thanks of gratitude to my teacher DR. SWATI MEHTA
as well as our Director DR.SANJULA THANVI who gave me the golden opportunity to do
this wonderful project on the topic “Meaning and Reasons of Industrial Disputes” , which also
helped me in doing a lot of research and I came to know about so many new things I am really
thankful to them.

Secondly, I would also like to thank my friends and college library teachers for assisting me
who helped me a lot in finalizing this project within the limited time frame.

BHAVISHYAT KUMAWAT
 TABLE OF CONTENTS
Sl. No. PARTICULARS PAGE No.

1 Certificate 0

Declaration

2 0
Acknowledgement

3 Chapter 1: Introduction 0

4 Chapter2: REASONS OF INDISTRIAL DISPUTES 0

2.1 ECONOMIC CAUSES IF INDUSTRIAL DISPUTE

2.2 NON ECONOMIC CAUSES OF INDUSTRIAL DISPUTE

5 Chapter 3: CASES RELATED TO INDUSTRIAL DISPUITES 0

 Conclusion
 Bibliography
 CHAPTER 1
INTRODUCTION

Industrial disputes are conflicts, disorder or unrest arising between workers and employers on
any ground. Such disputes finally result in strikes, lockouts and mass refusal of employees to
work in the organization until the dispute is resolved. Industrial Disputes harm both parties’
employees and employers and are always against the interest of both employees and the
employers. Patterson- “Industrial strife constituent militant and organized protest against existing
industrial conditions, they are symptoms of industrial unrest in the same way that boils are
symptoms of disorder of body.” Industrial Dispute Act 1947, Sec. 2 (k)-“Industrial Dispute is
any dispute or difference between the employees and employers or between employers and
workmen or between workmen and workmen, which is concerned with the employment or terms
of employment or with the conditions of labour of any person.”

Industrial Dispute means a conflict or unrest or dispute or any sort of difference between
employees and employers which may relate with the employment or the terms of employment or
working conditions. Industrial dispute crop up from dissatisfaction among the workers in the
organisation in matters relating to low wages, long working hours, unhealthy work environment,
retrenchment of employees and so on. It means disagreement among the employees and
disagreement between the employees and the employer. Such disputes finally result in strikes,
lockouts and mass refusal of employees to work in the organization until the dispute is resolved.
Industrial Disputes harm both parties’ employees and employers and are always against the
interest of both employees and the employers. The Industrial Disputes Act, 1947, defines an
industrial dispute as “any dispute or difference between employers and employers, or between
employers and employees, or between employers and employees, which is connected with the
employment, or non-employment, or the terms of employment or with the conditions of work of
any person”.
 For a dispute to become industrial dispute there must be a dispute between:

(i) Employers and employees

(ii) Employers and workmen

(ii) Workmen and workmen.

 Principles for judging the natures of industrial dispute:

(i) The dispute must affect large number of workmen

(ii) The dispute should be taken up by the Industry Union

(iii) The parties involved in dispute must have direct interest

(iv) The consulted demand must become grievance

(v) Workmen can raise Industrial Dispute himself under Section 2A of Industrial
.
Disputes Act – 1947.
 CHAPTER 2
REASONS OF INDISTRIAL DISPUTES

Every industrial dispute is result of some or the other kind of discontent among working class or
employers. These can be economic matters, non economic matters like refusal to grand leave,
demand for work in a particular department or place, and sometimes silly ego matters also
aggravate to the level of industrial dispute. Causes of industrial dispute are generally classified
by experts in to economic causes and non economic causes. These include workers’ discontent
regarding payment of inadequate wages or non payment of it as expected, allowances, bonus,
benefits, incentives and other economic components that are part of periodic payments to
workforce. Economic causes in nature include non payment of such dues and the timing of
payments like delayed payments, employers tactic to withhold such dues and absence of
communicating the reasons thereof.Since the cost of living index is increasing, workers generally
bargain for higher wages to meet the rising cost of living index and to increase their standards of
living. In 2002, 21.4% of disputes were caused by demand of higher wages and allowances. This
percentage was 20.4% during 2003 and during 2004 increased up to 26.2%.

 2.1 ECONOMIC CAUSES IF INDUSTRIAL DISPUTE

 Wages:

The most important cause for disputes is related to wages. The demand for wages has
never been fully met because of inflation and high cost of living. High inflation results in
increased cost of living resulting in never-ending demands from unions.Management and
Unions have wage agreement generally valid for three years. Each new agreement is
preceded by a prolonged battle between managements and unions, often resulting in
strikes and lockouts. Agreement reached in one company will inspire unions in other
plants in the locality, and make them pitch tents demanding similar rise in wages.
Closely related to wages are bonus, incentives, and other allowances. Of all these1,

1
https://shodhganga.inflibnet.ac.in/bitstream/10603/112939/8/08_chapter%202.pdf
  Bonus:

Bonus has been an important factor in the industrial disputes, 10.3% of the industrial
disputes in 1973 were because of bonus as compared to 6.9% in 1961. 13.8% and 15.2%
of the disputes were due to bonus during 1976 and 1977 respectively. It is worth noting
that during 1982 only 4.7% of the disputes were due to bonus as compared to 7.3% in
1985. This percentage was 4.2 in 1992, 3.6 in 1996 and 8.5 in 2000.

 2.2 NON ECONOMIC CAUSES OF INDUSTRIAL DISPUTES

 Retrenchment and Closure:

Retrenchment and closure of establishment have also been an important factor which
accounted for disputes. During the year 2002, disputes caused by closure were 4.1%
while those caused by retrenchment and layoffs were 8.2% respectively.

 Layoff:

Due an apprehension about shortfall in market demand of products produced or drill in

management’s profit is predicted or when there is a cut in production due to any other
reason, managements resort to lay off its workers. This layoffs lead to industrial dispute.

 Hours of Work:

There are legal provisions and remedies about hours of work and overtime pay. When
workers are employed beyond the regulated hours of work, there are accepted practices to
pay remuneration for such extra work at higher rates. Sometimes managements refuse to
comply with such norms, or where there is no clearly defined norm managements refuse
workers demand as excessive. This lead to industrial dispute.

 Leave – Annual and Casual:

Not allowing leaves have not been so important causes of industrial disputes. During
2002, 0.05% of the disputes were because of not granting leave while this percentage
increased to 0.10% in 2003. During 2004, only 0.4% of the disputes were because of
leaves and working hours.
  Indiscipline and violence:

The number of disputes caused by indiscipline has shown an increasing trend. In 2002,
29.9% of disputes were caused because of indiscipline, which rose up to 36.9% in 2003.
Similarly in 2004 and 2005, 40.4% and 41.6% of disputes were caused due to indiscipline
respectively. During the year 2003, indiscipline accounted for the highest percentage
(36.9%) of the total time-loss of all disputes, followed by cause-groups wage and
allowance and personnel with 20.4% and 11.2% respectively. A similar trend was
observed in 2004 where indiscipline accounted for 40.4% of disputes.

 Lockout caused by a Strike:

A strike for any reason unacceptable to employer leads to corresponding lockout by

employer. This is a situation of industrial dispute.

 Management Practices:

Management practices also leads to industrial disputes: Management sometimes use

threats and coercion regarding terms and conditions of employment and sometimes
refusal to comply with settlements and awards arrived at before. Management sometimes
refuse to recognize majority trade union, discuss matters with representative trade union
and act in arbitrary manner. Management sometimes dismiss workers in arbitrary
manner, discriminate, victimize, etc.

 Trade Union Practices:

There are trade union practices also, which causes industrial dispute. Multiplicity of trade
unions is a thing, in which management choose to discuss with some unions and the other
unions refuse to accept that the settlement. This often leads to industrial
disputes.Handling disciplinary action is a very critical task to be performed by the senior
managers. Misconduct and other offensive behaviors often lead to decreased levels of
productivity as they affect the individual performance of the employees. To manage
discipline among employees, every company opts for a discipline policy which describes
the approach it will follow to handle misconduct.2

2
http://www.yourarticlelibrary.com/essay/industrial-dispute-in-india-definition-causes-and-measures-to-improve-
industrial-relations/27991
 CHAPTER 3
CASES RELATED TO INDUSTRIAL DISPUITES

 Rajasthan S.R.T.C vs Krishna Kant on 23 September, 1993

In case the termination is in violation of principles of natural justice or is in violation of

some statutory provisions, such as in the cases in hand where the employees are
unsponsored workmen who challenged termination being violative of Standing
Orders and also because of violation of principles of natural justice."

 Workmen of I.S Institution v/s I.S Institution(A.I.R.1976 S.C.145)3

Supreme court held that the word employer and workmen used in thr definition of
industrial disputes has made it necessary to use in industry.

 Tata Chemicals v/s Workmens (1978)2 l.l.j. 224

It has been said that industrial disputes does not require that it must be limited to the
union representing collectively of majority of employer and workmen , but union could
be which shall not be representative of the majority , because the definition of industrial
disputes provides that it is sufficient to be a disputes between employer and workmen .

3
Workmen of I.S Institution v/s I.S Institution(A.I.R.1976 S.C.145
4
Tata Chemicals v/s Workmens (1978)2 l.l.j. 22
 CONCLUSION

The Industrial Disputes Act, 1947, which provides the legal framework for the Government’s
intervention in industrial disputes through conciliation and adjudication, has not undergone any
major changes in this regard, despite the demands ofthe labour and recommendations of various
commissions and committee for a thorough reform of the Act with a view to shifting the
emphasis in favour of collective bargaining. Though, the Trade Unions Act, 1926 provides for
registration of trade unions and certain privileges and immunities, it does not confer a right to
recognition on the registered trade union; consequently no legal obligation is placed on an
employer to collectively bargain in good faith with even majority union. if the drawbacks are
removed the adjudication method will become an effective method of settlement of industrial
disput.
 BIBLIOGRAPHY

BOOKS:

1. Meenu Paul, Labour and Industrial Law, Central Law Agency, 9 th Edition, 2015

2. Mishra, S.N, Labour and Industrial Laws 24th Edn.

WEB SOURCES:-

1. http://www.yourarticlelibrary.com/essay/industrial-dispute-in-india-definition-causes-
and-measures-to-improve-industrial-relations/27991

2. https://shodhganga.inflibnet.ac.in/bitstream/10603/112939/8/08_chapter%202.pdf