Industrial Conflict or Dispute:

According to Sec. 2 of the Industrial Dispute Act, 1947, “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 or with the conditions of labour of any person”
Industrial disputes are of symptoms of industrial unrest in the same way that boils are symptoms of a disordered body
Whenever an industrial dispute occurs, both management and workers try to pressurize each other. The management may resort to lock-out
and the workers may resort to strike, gherao, picketing, etc.

Causes of Industrial Disputes:

We can classify the causes of industrial disputes into two broad groups:
(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.

Consequences of Industrial Disputes:

The common consequences of industrial disputes are
a) loss of production
b) income and employment
c) increase in inflation and cost of living.
Alternatively speaking, industrial disputes injure economic welfare of the nation broadly in two ways: Firstly, work-stoppages impoverish the
workers actually involved in the disputes and, thus, lessens, their demand for the goods manufactured by other industries. Secondly, if the
industry under work-stoppage manufactures items that are used in the conduct of other industries, it lessens the supply of raw materials for
their production.
This ultimately results in loss of output and, in turn, reduces the national income.

Manifestations:
American sociologist Robert K. Merton laid out his theory of manifest function (and latent function and dysfunction too) in his 1949 book
Social Theory and Social Structure. Manifest function refers to the intended function of social policies, processes, or actions that are
consciously and deliberately designed to be beneficial in their effect on society. Meanwhile, a latent function is one that is not consciously
intended, but that, nonetheless, has a beneficial effect on society. Contrasting with both manifest and latent functions are dysfunctions, a type
of unintended outcome that is harmful in nature.While manifest functions are consciously and deliberately intended to produce beneficial
outcomes, latent functions are neither conscious nor deliberate but also produce benefits. They are, in effect, unintended positive
consequences.

Employee's Manisfestation:

1. Strike:Non acceptance of employees’ demand leads them to stop the work and proceed on strike. Strike is the last and important weapon
with the employee which is used when all hopes of fulfillment of their demand are shattered and there is no way left to them but to resort to
strike. Strike is initiated and supported by the employee union. It is stopping of work by the employees or a group of employees undertaken to
pressurize the management to accept their demands. It can continue for any number of days. It is a complete cessation of work by the
employees. Strikes can be of following types.
(a) Economic Strike: Economic strike is one which is undertaken by the members of the trade union for fulfillment of their economic
demands such as rise in wages, bonus, and other facilities such as health, education, food at concessional rates etc. and other conditions of
work.
(b) General Strike: General strike is one which is undertaken by all the employees belonging to all unions and in regions in the entire
industry. General strike is resorted to by the employees for fulfillment of common demands. It can be an extension of sympathetic strike.
(c) Sympathetic Strike: It is the strike undertaken by the members of one union to support the demands of striking employees of the other
union. This is undertaken to express sympathy with the striking employees and their demands. If this sympathy strike is extended further it can
take the form of general strike. This is also known as token strike.
(d) Sit Down Strike: It is the strike when employees stop working but do not leave the place of work. They sit at the place of work. This form
of strike is also known as pen down or tools down strike. They do not interfere in the work but they themselves do not work at all.
(e) Go slow Strike: The strike where employees do not stop work but do not work with enthusiasm. The speed of their work is very slow
which results in low output. They are doing this in an organized way. This puts employers under pressure which is the object of strike.

2. Gherao: Gherao means to surround. The members of the union surround the Chief executive and do not allow him to leave the place where
he is surrounded or gheraoed. Usually this place is his office. They create a human chain around him restricting him to move. Gheraos are very
common means of protest. Any group can do this any time if they are dissatisfied. It should take the violent turn.
3. Picketing: Picketing is a method resorted to by the employees to attract attention of common men to the fact that there exists a dispute
between the management and employees. Picketing is dissuading the employees from reporting to work by some men at the gate of the place
of work. Picketing is legal activity to exhibit protest. It is not violent activity.
4. Boycott: The workers may boycott use of company’s product. They may request the general public also to do so. This adversely affects the
sale of company’s product. To get rid of the ill effects it may think of accepting the demands of the employees.

Employer Manifestation:
1. Lock Out: Lock out is resorted to by the employers to put pressure on their employees. Lock out is undertaken by the employers to force
the employees to resume work on the terms and conditions of employers. Lock out is an extreme step taken by the employers to curb the
militant activities of the unions. At times it becomes a trial of strength between the employers and employees.

Dispute Settlement Machinery in India:

The prompt and equitable settlement of labour disputes is an important basis for sound industrial relations. The machinery for dispute
settlement in India comprises voluntary or non-statutory and statutory machinery. Voluntary machinery is used to resolve the dispute in
advance and also prevents the occurrence of differences. If this machinery fails, then the statutory machinery may be used. A brief description
of the non-statutory and statutory machinery is given below:

Non-Statutory Machinery: Non-statutory machinery is used for the prevention of industrial disputes internally. Workers’ participation in
management, collective bargaining, grievance procedure, tripartite bodies, code of discipline and standing orders were voluntarily used in India
to prevent the occurrence of disputes.
I. Workers’ Participation in Management
Workers’ Participation in Management (WPM) is a mechanism where the workers have active participation in the decision making process of
an enterprise leading to a sense of belonging in them. The important forms in which workers involve themselves in management are
information sharing, joint consultation and suggestion schemes. The objectives of workers’ participation in management includes prevention of
workers’ exploitation either by owners or by top managers, growth of the economy through democratic processes, solution of conflicts by
democratic regulations, sharing of financial and other information related to organisation and no intention to destroy managerial authority.
Workers participation helps to reduce industrial unrest, misunderstanding and to ensure higher productivity, increased commitment and
industrial democracy. The various forms of participation in India are: works committee, joint management council, shop council and joint
council.
Work committees are intended to promote measures for securing and preserving amity and good relations between the employer and the
workmen, and to that end to comment upon matters of common interest or concern and to endeavour to iron out any material difference of
opinion in respect of such matters. These committees comprise equal number of representatives of employers and employees in the industry
concerned.
Joint management councils have been given the rights of information, consultation and administration over specific items. Joint management
councils have equal representation of workers and management.
Shop councils have been introduced in big industrial units employing more than 500workers.The functions of the council would be to increase
production, productivity, and overall efficiency of the shop or department and assist management in achieving monthly/yearly production
targets.
Joint council scheme recommended making the participation scheme more effective. Any decision which has a bearing on another shop or
undertaking or establishment as a whole would have to be referred to joint councils for consideration and decision. Again, joint councils are
prescribed for every industrial unit employing 500 or more workers.
II. Collective Bargaining
Collective bargaining is a technique adopted by the organisations of workers and employers collectively to resolve their differences with or
without the assistance of a third party. It implies a collective negotiation of a contract between the management’s representatives on one side
and those of workers/unions on the other side. It plays a significant role in improving the labour management relations and in ensuring
industrial harmony. Collective bargaining helps in ironing out many minor differences and there are many instances in which even major
disputes are said to be settled without any work-cessation or outside intervention. Its role in conflict resolution is very significant. It builds up
safety valves, allowing the opposite groups and the excess steam to escape without blowing the whole mechanism to pieces. Collective
bargaining is gradually getting a foothold as a primary method of settling industrial disputes in India.
III. Grievance Procedure
Grievances are symptoms of conflicts in the industry. Prompt and efficient handling of grievances leads to satisfied workers who are an asset
to the industry. The successful handling of grievance by managers helps to prevent industrial disputes in the organisation.
IV. Tri-partite Bodies
The purpose of tripartite consultative machinery is to bring the parties together for mutual settlement of differences in a spirit of cooperation
and goodwill. These committees have been constituted to suggest ways and means to prevent disputes. It includes Indian Labour Conference,
Standing Labour Committee, Industrial Committees and Tripartite Committee on International Labour Organisation Conventions. The
representatives of workers and employers are nominated to these bodies by the Central Government in consultation with all India organisations
of workers and employers.
V. Code of Discipline
Code of Discipline is a set of self-imposed, mutually agreed voluntary principles of discipline. The Code of Discipline, 1958, contains matters
such as arbitration procedure under code of discipline, model grievance procedure laid, and criteria for recognition of unions and rights of
recognized unions. The code of discipline provides guidelines for the employers, the workers and the unions.
VI. Standing - Orders
The standing orders regulate the conditions of employment from the stage of entry to the organisation to the stage of exit from the
organisation. Standing Orders Act 1946 defines with sufficient precision the conditions of employment under the employers and holds them
liable to make the said conditions known to workmen employed by them. These Orders regulate the conditions of employment, discharge,
grievances, misconduct, disciplinary action, etc. of the workmen employed in industrial undertakings.

Statutory Machinery
Statutory machinery provides a legalistic way of settling disputes. It comprises Conciliation, Court of Enquiry, Voluntary Arbitration and
Adjudication.
I. Conciliation
Conciliation constitutes the cornerstone of the industrial relations system in India. Conciliation is an art of gentle persuasion. Conciliation is a
process by which representations of workers and employers are brought together before a third party with a view to persuading them to arrive
at an agreement by mutual discussion between them. Again, conciliation is a process of peace making in industrial relations. Conciliation at the
same time is “a fire prevention agency and not merely a body whose function is to put out fires once they have occurred”. The conciliation
process has been referred to as “the invisible stage of adjudication”. The Industrial Disputes Act 1947 states that conciliation can be utilised
either by appointing conciliation officers or by constituting Board of Conciliation. Conciliation officer is appointed by the appropriate
Government to conciliate between the parties to the industrial dispute. The conciliation officer is given powers of a civil court and he is
authorised to witness the parties on oath and can go into the facts and make judgement which will be binding upon the parties. Thus,
conciliation is an art where the skill, tact, imagination and even personal influence of the conciliation officer affect the success of the dispute.
The conciliation officer is required to submit his report to the appropriate Government along with the copy of the settlement arrived at in
relation to the dispute, or in case of failure, he has to send an elaborate report detailing the reasons for the failure of conciliation.
Board of conciliation is appointed by the Government, if the conciliation officer fails to resolve the differences between the parties. The Board
must submit the report to the Government within two months of the date on which the dispute was referred to it. The Government has the
power to extend the period further by two months.
II. Court of Enquiry
The Government appoints a court of enquiry to inquire into the matter connected with or relevant to the industrial dispute. This enquiry is
made only when the conciliation proceedings fail to settle dispute. The court of enquiry, primarily a fact-finding machinery, may consist of one
or more persons to be decided by the appropriate Government. The court of enquiry is expected to submit its report within a period of six
months from the commencement of enquiry.
III. Voluntary Arbitration
Arbitration is a procedure in which a neutral third party studies the bargaining situation, listens to both the parties and gathers information and
then makes recommendations that are binding on the parties. Voluntary Arbitration is one of the recognised and democratic ways for settling
industrial disputes. It is the best method for resolving industrial conflicts and is a close supplement to collective bargaining. Arbitration offers
an opportunity for a solution of the dispute through an arbitrator jointly appointed by the parties.
Arbitrators are named by the parties in the written agreement. The process of arbitration saves time and money of both the parties to the
dispute.
IV. Adjudication
The ultimate remedy for the settlement of an industrial dispute is its reference to adjudication. The Government appoints a third party to settle
industrial disputes which may be Labour Court, Industrial Tribunal or National Tribunal. Adjudication means a mandatory settlement of
industrial disputes by Labour Courts or Industrial Tribunals or National Tribunals under the Industrial Dispute Act or under any other
corresponding State statutes. The system of adjudication is the most significant instrument of resolving disputes. A dispute can be referred to
adjudication, if both the employer and the recognised union agree to do so. The Government also takes the case to adjudication even if the
consent of the parties is not available. Then the settlement machinery is called Compulsory Adjudication. The three bodies are not in the
hierarchical order and it is the Government’s prerogative to refer a dispute to any of the three bodies, depending on the nature of the dispute.
Labour Courts and Industrial Tribunals may be constituted by the State Government, while national tribunal is constituted by the Central
Government. A Labour Court consists of one person only, who is normally a sitting or an exjudge of a High Court.
Labour Courts consider the
 legality of an order passed by an employer under the standing orders
 application and interpretation of standing orders
 discharge or dismissal of workman
 withdrawal of any customary concession or privilege
 illegality or otherwise of a strike or lockout and
 all matters not specified in the third schedule of Industrial Disputes Act 1947.
Industrial Tribunal is also a one-man body. It has wider jurisdiction than Labour Courts and also it can consider all matters specified in the
Second Schedule or the Third Schedule. Under the Third Schedule, the matters that are within the jurisdiction of industrial tribunals include
wages, hours of work and rest intervals, leave, shift work and retrenchment. But National Tribunals on the other hand consider industrial
disputes involving questions of national importance or which are of such a nature that industries in more than one State are likely to be
interested or affected by such disputes. The machinery for the settlement of dispute in India is given in Figure

Industrial Peace
A state in industrial relations in which both employer and employees abstain from industrial action, such as strikes and lockouts.
The objectives of maintenance of industrial peace is not only to find out ways and means to solve conflicts or to settle differences but also to
secure the unreserved co-operation of and goodwill among different groups in industry with a view to drive their energies and interest towards
economically viable, commercially feasible, financially profitable and socially desirable channels.

It also aims at the development of a sense of mutual confidence, dependence and respect and at the same time encouraging them to come to
closer to each other for removing misunderstandings, redressing grievances, if any, in a peaceful atmosphere and with open mind and fostering
industrial pursuits for mutual benefits and social progress. But the maintenance of congenial industrial relations, particularly in a democratic
society like ours is not only a significant task but also a complicated one.