Chapter I- Industrial Relations

Dr Mehraj Ud din Shah,

Associate Professor,
PG Department of Management Studies,
Islamia College of Science and Commerce,
Hawal, Srinagar Kashmir.

Course Objective : To help students to understand the conceptual

foundation of industrial relations, significance, industrial disputes their
causes and settlement mechanism.

Course outcome : After studying this script, students would be able to

understand the following domains of industrial relations

 Concept of industrial Relations

 Definitions of Industrial Relations
 objectives of industrial Relations
 importance of industrial Relations
 Functions of industrial Relations
 Scope of industrial Relations
 Genesis of industrial Relations
 Industrial Disputes
 Types of industrial disputes
 Causes of industrial disputes
 Measures to resolve industrial dsiputes

Concept

The domain of Industrial Relations under industrial operational discourse has

always remained a centre of concern for management experts, government and
policy thinkers. Consequent upon, the concept of industrial relations over the
years on one side have attained phenomenal distortion and while on the other
side it has secured wide conceptual expansion. Therefore, it would be more
correct to put down that concept of industrial relations is wide and very much
complex to trap. Primarily, the term ‘Industrial Relations’ comprise ‘Industry’
and ‘relations’. Industry means any productive activity in which an individual is
engaged. It includes- (a) primary activities like agriculture, fisheries, plantation,
forestry, horticulture, mining etc. etc. and (b) Secondary activities like
manufacturing, construction, trade, transport, commerce, banking, communi-
cation etc. Economically speaking, industry means the secondary sector where
factors of production (land, labour, capital and enterprise or four M’s – men,
materials, money and machines) are gainfully employed for the purpose of
production, and where a business organisation exists. ‘Relations’ means ‘the
relations that exist in the industry between the employer and his work-force.

The concept of industrial relation fairly evolved in the late 19 th century and
over the years its prominence in the industrial scene has grown excessively.
Primarily, it is viewed as a subject that examines relationship among various
players that fall in the pipeline of industry, which ofcourse include
management, workers and unions. Nevertheless, this concept got diluted with
time and consequent upon it was understood that industrial relations analyze
the relations between management and the employee and works out a viable
way out to resolve their mutual disputes. Accordingly, the industrial relations
was described a domain that deals with securing effective and willing co-
operation from employees and reducing conflict between employers and
workers and their representatives, trade unions. Following the growth of added
awareness in the literature of industrial relations concept got enlarged and
accordingly it was held that industrial relations connotes a mechanism that
foster peaceful relations among the various groups which may include workers,
unions, legal bodies, management, and of course the Government. This was
though due to the fact, that the other bodies, law, government and unions all
have key role in cementing effective, conducive and peaceful relations between
the workers and management.

Definition

In the back drop of the extensive concept, Industrial Relations was defined
defiantly by different authors. According to V. Agnihotri, “The term industrial
relations explains the relationship between employees and management which
stem directly or indirectly from union-employer relationship.” Similarly, Bethel
and Others, defined “Industrial relation is that part of management which is
concerned with the manpower of the enterprise whether machine operator,
skilled worker or manager.” Likewise, Tead & Metcalf, “Industrial relationship
is the composite result of the attitude and approaches of employers and
employees towards each other with regard to the planning supervision, direction
and coordination of the activities of an organization with a minimum of human
effort and friction with an animating spirit of cooperation and with proper
regard for genuine well-being of all the members of the organization.”
While, according to T.N. Kapoor, “The term ‘Industrial Relations’ should be
understood in the sense of labour- management relations as it percolates into a
wider set of relationship touching extensively all aspects of labour such as
union-policies, personnel policies and practices including wages, welfare and
social security, service conditions, supervision and communication, collective
bargaining etc., attitudes of parties and governmental action on labour matter.”
Nevertheless, V.B. Singh, “Industrial relations are an integral aspect of social
relations arising out of employer- employee interaction in modern industries,
which are regulated by the State in varying degrees, in conjunction with
organised social forces and influenced by prevailing, institutions. This involves
a study of the State, the legal system, workers’ and employers’ organisations on
the institutional level; and that of patterns of industrial organisation (including
management), capital structure (including technology), compensation of labour
force and the forces of market on the economic level.”
According to Thus, it covers all types of relations arising out of employer-
employee interaction in the industry which are influenced by the power of the
State and other social and economic institutions.

The above definitions unfold the following facts

(1) Industrial relations are the relations which are the outcome of the
’employment relationship’ in an industrial enterprise. It is, thus, employer-
employee relationship in an industry. Two parties—employer and workmen are
necessary without which such relationship cannot exist and it is the industry
which provides the setting for industrial relations.
(2) Industrial relation is the relation in the industry created by the diverse and
complex attitudes and approaches of both management and workers in
connection with the management of the industry. Attitude refers to the mental
state of a person, approach can be the external expression of such an attitude.
Attitudes are always not obvious and the individual himself may not always be
fully conscious of the attitudes. The attitudes must be inferred from tone of
verbal expressions or perhaps from the individual’s overt behaviour. Attitude is
the mental state of the individual which prepares him to take a particular,
(external) approach or make him behave in a particular manner. Attitudes of
both—employer and employees influence each other and determine natural
relationship.
(3) This relationship emphasises on the process of accommodation whereby
both the parties develop skills and methods of adjusting to and cooperating with
each other.
(4) Industrial relation is not a simple relationship between the two parties but is
a set of functional interdependence involving a number of factors, say,
historical, economic social, psychological, demographic, technological,
occupational, legal and others etc. It, therefore, requires an interdisciplinary
approach for its study. In this context, industrial relations are the relations and
interactions between management and workers and as a result of their
composite attitudes and approaches.
(5) Every industrial relation creates a complex of rules and regulations to
govern the work-place, the work- community with the main purpose of
maintaining harmonious relations between the management and the workmen
by solving their problems through the process of collective bargaining
(6) The Government/State also regulates the industrial relations in the country.
It evolves, influences and shape industrial relations through laws, rules,
agreements, awards of the courts, and emphasises on the usages, customs,
traditions, implementation of its policies and interference through executive and
judicial machinery.
Industrial relations may, thus, be defined as the relations and interactions in the
industry particularly between the labour and 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 the workers
but also of the industry and the economy as a whole.

Objectives of Industrial Relations:

(i) To create healthy relations between employees and employers.

(ii) To minimize industrial disputes.

(iii) To generate harmonious relations among all concerned with production

process.
 (iv) To improve the time, productivity of workers.

(v) To provide workers their appropriate position by considering them partners

and associating them with management process.

(vi) To provide the workers their due profit share, improve their working
conditions and thereby eliminating the chances of strikes and lockout etc.

Importance of Industrial Relations

1. Increased Productivity: With amicable industrial relations both the workers

and managers continue to work on their respective position and contribute
towards the overall productivity of the firm. Thus, IR ensures the continuity of
production.
2. Reduced Industrial Disputes: An effective IR helps in the reduction of
industrial disputes as both the management and the workers maintain
harmonious relations with each other and work in unison towards the
accomplishment of production objective.
3. Increased Morale: The peaceful industrial relations boost the morale level of
the employees as they feel that their interest coincides with that of the
employer’s, and their efforts will result in the overall profitability of the firm.
4. Minimization of Wastage: A good IR ensures reduced wastage as the
resources – Man, Machinery, Material are fully utilized and are effectively
contributing towards the overall productivity of the firm.

Thus, an effective IR is required to ensure higher production at less cost and

increased profits. It covers the system, rules, and procedures to protect the
interest of the workmen and the employers and to regulate the behavior of the
employer i.e. the way he treats his workmen
Scope of Industrial Relations

Industrial Relations is a broad term. Different scholars have expressed their

views on its scope. According to Dale Yoder, “Industrial relations include
policies regarding recruitment, selection, training of workers, personnel
management, and collective bargaining.” According to International Labour
Organisation (ILO), industrial relations include relations between state and
employers and relations between trade unions and employers associations.

Besides, these also include – freedom of co-operation among the workers and
protection of the right to co-operate, enforcement of rules of the organisation,
right of collective bargaining, collective settlement, mediation, arbitration and
co-operation between officers and employers’ associations.

According to Richard A Lester, the scope of industrial relations is no longer

confined only to trade unions and industrial management these days, rather it
includes all aspects of labour; viz., wages, productivity, social security,
management and employees policies. Trade Union policies also form part of it.

Thus Industrial Relations mainly cover the following:

 Regulatory body to resolve industrial disputes.

 Collective Bargaining.

 The role of management, unions and government.

 Labor Legislation

 Worker’s Grievance Redressal system.

 Disciplinary policy and practice.

 Industrial Relations Training.

Functions of Industrial Relations Department

In a modern organisation, the function of industrial relations is performed by

Industrial Relations Department. This function is performed under the
supervision of Director, Industrial Relations. In the performance of this function
assistance is rendered by different managers and assistants. Different important
functions are performed by the staff of Industrial Relations Department.

Some of them are as under:

(i) Administration of policies and programmes of industrial relations,

(ii) Public Relations,

(iii) Labour Relations,

(iv) Recruitment, selection and placement of labourers,

(v) Formulation of rules relating to law and order situation within the
organisation and their explanation,

(vi) Provision of recruitment test, intelligence test, ability test, skill test, etc.

(vii) Provision of training and education programme,

(viii) Preparing report on performance evaluation and ability evaluation,

(ix) To provide medical and health services,

(x) To advise in the solution of problems relating to education, trade, health and
conduct of the employees,
(xi) To conduct survey on the attitude of the employees,

(xii) To complete record of employment of the employees,

(xiii) To conduct research on employees,

(xiv) To enforce labour legislations,

(xv) To provide for redressal of employees grievances,

(xvi) To provide for collective bargaining and dialogue to minimize labour

disputes,

(xvii) To provide for retirement and pension programme,

(xviii) To prepare and enforce plan regarding compensation and evaluation of

individual work performance, etc.

Genesis of Industrial Relations

Healthy industrial relations is the backbone of the organisation. For this, the
responsibility of the management is to look after the total well-being of each
and every employee because a happy employee is an asset to the organisation.
At this stage, it is relevant to put some light on the history of industrial relations
in India.

1. Pre Independence Period:

‘Hired and fired’ philosophy was adopted by employer because the principle of
‘supply and demand of labours’ was governed by industrial relations. In this
system there was no scope of appeal against unjust decisions. It may produce
temporarily results but in long run converted into violence. Only employers and
workmen (Disputes) Act, 1860 was used to settle wage disputes between
employers and employees because the conditions of employment and wages
were very poor.

After the First World War, the government enacted the Trade Disputes Act,
1929 to enhance the settlement of industrial disputes. But the major drawback
of this Act was that it did not provide any standing machinery for the settlement
of disputes. In the year, 1936, the Payment of Wages Act, 1936 was enacted by
government to stop the exploitation of workers by employers. After the Second
World War, our country faced many problems which were created and
increased industrial relations in turbulent situation.

The Basic Problems Were:

(i) Rise in living cost.

(ii) Scar city of essential commodities.

(iii) Increase in rate of Unemployment and Population.

(iv) Political Interference.

(v) Increase in Inflation rates.

2. Post-Independence Period:

Industrial disputes need to be resolved in the interest of the employees,

employers and the economy. Therefore, there is the need of developing healthy
industrial relations. Healthy industrial relations would ensure uninterrupted
production, promote work ethics and help in promoting healthy social relations
in the society.

For prevention and settlement of industrial disputes and thereby improving

industrial relations, just after independence a permanent machinery has been
developed in the country was Industrial Disputes Act, 1947, which not only
provides permanent machinery for the settlement of industrial disputes but also
makes the awards so passed by the Courts under the Act, binding and legally-
enforceable on the parties.

Another important development was the setting up of the Indian Labour

Conference, a tripartite body to look into the industrial relations problems. The
major objective of this conference was to establish cooperation and coordination
between the government, the employers and the Trade Unions. Another major
change was observed after post-independence was the change in the
Government’s attitude towards employees and their problems.

A large number of labour laws were passed by government to protect the

interest of workers. In the year 1958, the Code of Discipline was introduced, but
it had a limited success because it was a moral guideline rather than as a legal
enactment. The National Commission of Labour was appointed by government
in the year 1966, to study into labour problems and make recommendations.

It submitted its report in year 1969. During emergency (1975-77), there was
considerable tightening of discipline in the industrial as well as general
environment. But after emergency, change in Political leadership, the Janta
Government set up a number of committees to review industrial relations
situations. In the late 1970s and early 1980s industrial relations in our country
were characterised by violence, therefore, on 26th July 1981, the government
issued an ordinance to ban strikes.

The law called the Essential Service Maintenance Act (ESMA) 1981. This Act
empowers the government to ban strikes, Layoffs and Lockouts in what it seems
to be an “essential services”.

Industrial Disputes
Understandably, an industrial dispute can be referred as friction or
disagreement between two or more parties involved, due to the difference in
their perceptions, opinions, mindsets, attitudes and values. In an organization,
the parties engaged in such disputes can be employer and employee, employee
and employee or employer and employer. Many a time on a massive level,
conflicts can even arise between the government and the public. Industrial
disputes are sometimes observed as a result of poor industrial relations in the
organizations. Morespecifically, dispute means difference or disagreement of
strife over some issues between the parties. As regards industrial dispute, since
its settlement proceeds as per the legal provisions contained in the ‘Industrial
Disputes’ Act, 1947, therefore, it is appropriate to understand the concept of
industrial disputes from a legalistic angle.

According to Section 2 (k) of the Industrial Disputes Act, 1947, the term
‘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 the
terms of employment and conditions of employment of any person”.

The above definition is too broad and includes differences even between groups
of workmen and employers engaged in an industry. However, in practice,
industrial disputes mainly relate to the difference between the workmen and the
employers.

Dispute differs from discipline and grievance. While discipline and grievance
focus on individuals, dispute focuses on collectively of individuals. In other
words, the test of industrial dispute is that the interest of all or majority of
workmen is involved in it.

Nature of Industrial Dispute- Principles

1. The dispute must affect a large number of workmen who have a community
of interest and the rights of these workmen must be affected as a class.

2. The dispute must be taken up either by the industry union or by a substantial

number of workmen.

3. The grievance turns from individual complaint into a general complaint.

4. There must be some nexus between the union and the dispute.

5. According to Section 2A of the Industrial Disputes Act, 1947, a workman has

a right to raise an industrial dispute with regard to termination, discharge,
dismissal, or retrenchment of his or her service, even though no other workman
or any trade union of workman or any trade union of workmen raises it or is a
party to the dispute.

Types of Industrial Disputes:

1. Strikes:

Strike is the most important form of industrial disputes. A strike is a

spontaneous and concerted withdrawal of labour from production. The
Industrial Disputes Act, 1947 defines a strike as “suspension or cessation of
work by a group 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 work or accept
employment”. According to Patterson “Strikes constitute militant and organised
protest against existing industrial relations. They are symptoms of industrial
unrest in the same way that boils symptoms of disordered system”. Depending
on the purpose, Mamoria et. al. have classified strikes into two types: primary
strikes and secondary strikes.
(i) Primary Strikes:
These strikes are generally aimed against the employers with whom the dispute
exists. They may include the form of a stay-away strike, stay-in, sit-down, pen-
down or tools- down, go-slow and work-to-rule, token or protest strike, cat-call
strike, picketing or boycott.

(ii) Secondary Strikes:

These strikes are also called the ‘sympathy strikes’. In this form of strike, the
pressure is applied not against the employer with whom the workmen have a
dispute, but against the third person who has good trade relations with the
employer.

However, these relations are severed and the employer incurs losses. This form
of strike is popular in the USA but not in India. The reason being, in India, the
third person is not believed to have any locus standi so far the dispute between
workers and employer is concerned.

General and political strikes and bandhs come under the category of other
strikes:
Lock-Outs:
Lock-out is the counter-part of strikes. While a ‘strike’ is an organised or
concerted withdrawal of the supply of labour, ‘lock-out’ is withholding demand
for it. Lock-out is the weapon available to the employer to shut-down the place
of work till the workers agree to resume work on the conditions laid down by
the employer. The Industrial Disputes Act, 1947 defined lock-out as “the
temporary shutting down or closing of a place of business by the employer”.
Lock-out is common in educational institutions also like a University. If the
University authority finds it impossible to resolve the dispute raised by the
students, it decides to close-down (or say, lockout) the University till the
students agree to resume to their studies on the conditions laid down by the
University authority. Recall, your own University might also have declared
closure sometimes for indefinite period on the eve of some unrest / dispute
erupted in the campus.

Gherao:
Gherao means to surround. It is a physical blockade of managers by
encirclement aimed at preventing the egress and ingress from and to a particular
office or place. This can happen outside the organisational premises too. The
managers / persons who are gheraoed are not allowed to move for a long time.
Sometimes, the blockade or confinements are cruel and inhuman like
confinement in a small place without light or fans and for long periods without
food and water. The persons confined are humiliated with abuses and are not
allowed even to answer “calls of nature”. The object of gherao is to compel the
gheraoed persons to accept the workers’ demands without recourse to the
machinery provided by law. The National Commission on Labour has refused to
accept ‘gherao’ as a form of industrial protest on the ground that it tends to
inflict physical duress (as against economic press) on the persons gheraoed and
endangers not only industrial harmony but also creates problems of law and
order.

Workmen found guilty of wrongfully restraining any person or wrongfully

confining him during a gherao are guilty under Section 339 or 340 of the Indian
Panel Code of having committed a cognizable offence for which they would be
liable to be arrested without warrant and punishable with simple imprisonment
for a term which may be extended to one month or with a fine up to Rs. 500, or
with both. Gherao is a common feature even in educational institutions. You
might have seen in your own University officers sometimes gheraoed by the
employees / students to compel the officers to submit to their demands. Here is
one such real case of gherao.
Gherao of the vice chancellor:
The non-teaching employees of a Central University in the North-East India had
some demands with the University authority for quite some time. Non-
confirmation of some of the employees even after completion of six years
service was one of the main demands. That the Vice Chancellor was to resign
on 31st October was known to all in the University.

As the last pressure tactic, the employees started Vice Chancellor’s gherao on
31st October at 11.00 a.m. They shut down the entrance gate of the
administrative building at 3.00 p.m. to block the egress and ingress from and to
the office in the administrative building.

The Vice Chancellor was kept confined in his office chamber. He was
humiliated throughout the gherao by using abuses, disconnecting his telephone
line, not allowing him food and water and even not allowing him to answer
“calls of nature”. This scene lasted for 18 hours and was over only by 5 a.m.
next day when some 50 C.R.P.F jawans with local police came from the city
which is about 20 kms. away from the University Campus.

They broke the entrance gate of administrative building, rescued the Vice
Chancellor and arrested 117 employees confining the Vice Chancellor under
Section 340 of the Indian Penal Code and kept them behind bars for a day.

On 1st November, the Vice Chancellor handed over the charge of his office to
the senior most Professor of the University at his residence in the city. In the
wee hours on 2nd November, he left for where he came from. The aftermath of
gherao created a tuneful atmosphere in the University Campus for about two
weeks.

Picketing and Boycott:

Picketing is a method designed to request workers to withdraw cooperation to
the employer. In picketing, workers through display signs, banners and play-
cards drew the attention of the public that there is a dispute between workers
and employer.

Workers prevent their colleagues from entering the place of work and pursuade
them to join the strike. For this, some of the union workers are posted at the
factory gate to pursuade others not to enter the premises but to join the strike.

Boycott, on the other hand, aims at disrupting the normal functioning of the
organisation. The striking workers appeal to others for voluntary withdrawal of
co-operation with the employer. Instances of boycotting classes and
examinations are seen in the Universities also.

Types of Industrial Disputes:

 The ILO’ has classified the industrial disputes into two main types.
 They are:
 1. Interest Disputes

 2. Grievance or Right Disputes.

 They are discussed one by one:

 1. Interest Disputes:
 These disputes are also called ‘economic disputes’. Such types of
disputes arise out of terms and conditions of employment either out of the
claims made by the employees or offers given by the employers. Such
demands or offers are generally made with a view to arrive at a collective
agreement. Examples of interest disputes are lay-offs, claims for wages
and bonus, job security, fringe benefits, etc.

 2. Grievance or Right Disputes:

 As the name itself suggests, grievance or right disputes arise out of
application or interpretation of existing agreements or contracts between
the employees and the management. They relate either to individual
worker or a group of workers in the same group.

 That’s way in some countries; such disputes are also called ‘individual
disputes’. Payment of wages and other fringe benefits, working time,
over-time, seniority, promotion, demotion, dismissal, discipline, transfer,
etc. are the examples of grievance or right disputes.

 If these grievances are not settled as per the procedure laid down for this
purpose, these then result in embitterment of the working relationship and
a climate for industrial strife and unrest. Such grievances are often settled
through laid down standard procedures like the provisions of the
collective agreement, employment contract, works rule or law, or customs
/usage in this regard. Besides, Labour Courts or Tribunals also adjudicate
over grievance or interest disputes.

 Generally, industrial disputes are considered as ‘dysfunctional’ and

‘unhealthy’. These are manifested in the forms of strikes and lock-outs,
loss of production and property, sufferings to workers and consumers and
so on. But, sometimes industrial disputes are beneficial as well.

 It is the dispute mainly which opens up the minds of employers who then
provide better working conditions and emoluments to the workers. At
times, disputes bring out the causes to the knowledge of the public where
their opinion helps resolve them.

 Causes of Industrial Disputes



 The industrial disputes mostly arise because of the following two causes:


 (i) Economic causes, and (ii) Non-economic causes.

 Economic causes include:
 (i) Wages,
 (ii) Bonus,
 (iii) Dearness allowance,

 (iv) Conditions of work and employment,

 (v) Working hours,

 (vi) Leave and holidays with pay, and

 (vii) Unjust dismissals or retrenchments.

 Non-economic causes include:

 (i) Recognition of trade unions,

 (ii) Victimisation of workers,

 (iii) Ill-treatment by supervisory staff,

 (iv) Sympathetic strikes,

 (v) 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% of the industrial
disputes in 1973 were due to demand for higher wages and allowances.
This percentage was 36.1% in 1974. During 1985, 22.5% of the disputes
 were due to wages and allowances. Wages and allowances accounted for
25.7% of disputes in 1986, 26.6% in 1992, 25.0% in 1996 and 20.2% in
2000.

 2. Personnel and Retrenchment:

 Personnel and retrenchment causes have also been important. During
1973, 24.3% of the industrial disputes were because of dismissals,
retrenchment, etc. as compared to 29.3% in 1961. In 1979, personnel and
retrenchment topped the list of causes of industrial disputes with 29.9%.
The number of disputes because of personnel and retrenchment was
32.0% in 1971, 23.1% in 1985 and 19.8% in 1996. In 2000, about 12.1%
of the disputes occurred due to dismissals, layoffs, retrenchments, etc.

 3. 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.

 4. Indiscipline and Violence:

 The number of disputes because of indiscipline and violence among the
workers has been significant. During 1987, 15.7% of the disputes were
because of indiscipline and violence as compared to only 5.7% in 1973.
During 1985, 16.1% of industrial disputes were caused by indiscipline
and violence and during 1996, about 21.6% of the industrial disputes
arose due to indiscipline and violence in industrial undertaking. This
shows that indiscipline and violence have continued to be a serious
problem in industry during the past two decades.
 5. Leave and Hours of Work:
 Leave and hours of work have not been so important causes of industrial
disputes. During 1973, 1.5% of the causes were because of leave and
hours of work. Their percentage share in the industrial disputes was 2.2%
in 1977, 1.8% in 1985, 2.2% in 1996 and 0.9% in 2000.

 6. Miscellaneous Causes:
 Miscellaneous causes include modernisation of plant and introduction of
computers and automatic machinery recognition of union political
factors, etc. These factors have caused a significant number of industrial
disputes in the country, 24.1% of the industrial disputes in 1973 were due
to miscellaneous causes. They accounted for 19.5% of the industrial
disputes in 1977, 29.2% in 1985, 27.8% in 1996 and 33.2% in 2000.

 Miscellaneous causes of industrial disputes are as follows:

 (a) Workers’ resistance to rationalisation, introduction of new machinery
and change of place of factory.

 (b) Non-recognition of trade union.

 (c) Rumours spread out by undesirable elements.

 (d) Working conditions and working methods.

 (e) Lack of proper communication.

 (f) Behaviour of supervisors.

 (g) Trade union rivalry etc.

 Thus, industrial disputes do not arise only when workers are dissatisfied
on economic grounds, they also arise over issues which are of non-
 economic nature. Instances may be quoted when strikes where
successfully organised to protest against the management’s decision to
change the location of the plant from one state to another. Similarly, even
causes like behaviour of supervisor and trade union rivalries may give
rise to industrial disputes.

 The whole concept of industrial relations revolves around 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.

 Measures to Improve Industrial Relations:

 The following measures should be taken to achieve good industrial
relations:
 1. Progressive Management:
 There should be progressive outlook of the management of each
industrial enterprise. It should be conscious of its obligations and
responsibilities to the owners of the business, the employees, the
consumers and the nation. The management must recognise the rights of
workers to organise unions to protect their economic and social interests.

 The management should follow a proactive approach, i.e., it should

anticipate problems and take timely steps to minimise these problems.
Challenges must be anticipated before they arise otherwise reactive
actions will compound them and cause more discontent among the
workers.

 2. Strong and Stable Union:

 A strong and stable union in each industrial enterprise is essential for
good industrial relations. The employers can easily ignore a weak union
 on the plea that it hardly represents the workers. The agreement with such
a union will hardly be honoured by a large section of workforce.
Therefore, there must be a strong and stable union in every enterprise to
represent the majority of workers and negotiate with the management
about the terms and conditions of service.

 3.Atmosphere of Mutual Trust:

 Both management and labour should help in the development of an
atmosphere of mutual cooperation, confidence, and respect. Management
should adopt a progressive outlook, and should recognise the right of
workers.

 Similarly, labour unions should persuade their members to work for the
common objectives of the organisation. Both the management and the
unions should have faith in collective bargaining and other peaceful
methods of settling industrial disputes.

 4. Mutual Accommodation:
 The right of collective bargaining of the trade unions must be recognised
by the employers. Collective bargaining is the cornerstone of industrial
relations. In any organisation, there must be a great emphasis on mutual
accommodation rather than conflict or uncompromising attitude.
Conflicting attitude does not lead to amicable labour relations; it may
foster union militancy as the union reacts by engaging in pressure tactics.
The approach must be of mutual “give and take” rather the “take or
leave”.

 5. Sincere Implementation of Agreements:

 The management should sincerely implement the settlements reached
with the trade unions. The agreement between the management and the
unions should be enforced both in letter and spirit.
 6. Workers’ Participation in Management:
 The participation of workers in the management of the industrial unit
should be encouraged by making effective use of works committees, joint
consultation and other methods. This will improve communication
between managers and workers, increase productivity and lead to greater
effectiveness.

 7. Sound Personnel Policies:

 Personnel policies should be formulated in consultation with the workers
and their representatives if they are to be implemented effectively. The
policies should be clearly stated so that there is no confusion in the mind
of anybody. The implementation of the policies should be uniform
throughout the organisation to ensure fair treatment to each worker.

 8. Government’s Role:
 The Government should play an active role for promoting industrial
peace. It should make law for the compulsory recognition of a
representative union in each industrial unit. It should intervene to settle
disputes if the management and the workers are unable to settle their
disputes. This will restore industrial peace.

 { Note :Refer to latest Statistical Data relating to causes of disputes }