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ANATOMY OF INDUSTRIAL CONFLICT

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ANATOMY OF INDUSTRIAL CONFLICT Concept and Essentials of a Dispute According to the Industrial Disputes Act, 1947, Section 2(k); industrial disputes mean any ... – PowerPoint PPT presentation

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Title: ANATOMY OF INDUSTRIAL CONFLICT


1
ANATOMY OF INDUSTRIAL CONFLICT
2
Concept and Essentials of a Dispute
  • According to the Industrial Disputes Act,
    1947, Section 2(k) industrial disputes mean 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."

3
Contd.
  • For a dispute to become an industrial dispute,
    it should satisfy the following essentials
  • There must be a dispute or a difference (a)
    between employers (such as wage-warfare where
    labour is scarce)
  • (b) between employers and workmen (such as
    demarcation disputes) and
  • (c) between workmen and workmen.

4
Contd.
  1. It is connected with the employment or
    non-employment or the terms of employment or with
    the conditions of labour of any person (but not
    with the managers or supervisors), or it must
    pertain to any industrial matter,
  2. A workman does not draw wages exceeding Rs.
    1,600 per month.
  3. The relationship between the employer and the
    workman must be in existence and should be the
    result of a contract and the workman actually
    employed.

5
Interpretation of disputes by courts
  • Some of the principles for judging the nature of
    a dispute evolved by the courts are as follows.
  • The dispute must affect a large group of workmen
    who have a community of interest and the rights
    of these workmen must be affected as a class. In
    other words, a considerable section of employees
    should necessarily make common cause within the
    general lot.

6
Contd.
  1. The dispute should invariably be taken up by the
    industry union or by an appreciable number of
    workmen.
  2. There must be a concerted demand by the workers
    for redress and the grievance becomes such that
    it turns from individual complaint into a general
    complaint.

7
Contd.
  1. The parties to the dispute must have direct and
    substantial interest in the dispute, i.e., there
    must be some nexus between the union which
    espouses the causes of the workmen and the
    dispute. Moreover, the union must fairly claim a
    representative character.

8
Contd.
  1. If the dispute was in the beginning in an
    individual's dispute and continued to be such
    till the date of its reference by the government
    for adjudication, it cannot be converted into an
    industrial dispute by support subsequent to the
    reference even of workmen interested in the
    dispute.

9
Contd.
  • By incorporating Section 2A in the Industrial
    Disputes Act, 1947, a right has been given to the
    individual workman himself to raise an industrial
    dispute with regard to termination, discharge,
    dismissal, or retrenchment of his service, even
    though no other workman or any trade union of
    workmen raises it or is a party to the dispute.

10
Contd.
  • Patterson observes "Industrial
    strikes/disputes constitute militant and
    organized protests against existing industrial
    conditions. They are symptoms of a discorded
    system.
  • The industrial unrest, thus, takes an
    organized form when the work people make common
    cause of their grievances against employers by
    way of strikes, demonstrations, picketing,
    morchas, gate meetings, gheraos, etc.

11
Classification of Industrial Disputes
  • The most common practice is to make a
    distinction between two main types of disputes
    relating to terms of employment. They are
  • disputes that arise out of deadlocks in the
    negotiations for a collective agreement,
    popularly known as interest disputes,' and
  • disputes that arise from day-to-day workers'
    grievances or complaints, popularly known as
    grievance disputes.

12
Contd.
  • In addition, in various countries, special
    provisions apply to two other types of disputes
    relating to organisational rights, namely
  • those arising from acts of interference with the
    exercise of the right to organise, or acts
    commonly known as unfair labour practices,' and
  • disputes over the right of a trade union to
    represent a particular class or category of
    workers for purposes of collective bargaining,
    simply referred to as recognition disputes.

13
Details of Classification
  • Interest Disputes These disputes are also called
    conflicts of interest or economic disputes. They
    generally correspond to what in some countries
    are called collective labour disputes.
  • In general, they relate to the determination of
    new terms and conditions of employment for the
    general body of workers.
  • In most cases, the disputes originate from trade
    union demands or proposals for improvements in
    wages, fringe benefits, job security, or other
    terms or conditions of employment.

14
Contd.
  • These demands or proposals are normally made with
    a view to conclude a collective agreement.
  • Since there are generally no mutually binding
    standards that can be relied upon to arrive at a
    settlement of interest disputes, recourse must be
    made to bargaining power, compromise, and
    sometimes, a test of economic strength before the
    parties reach an agreed solution.
  • As the issues in these disputes are
    "compromisable" they lend themselves best to
    conciliation, and are a matter of give-and-take
    and bargaining between the parties.

15
Contd.
  • Grievance or Rights Disputes These disputes are
    also known as conflicts 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 some 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 their rights.

16
Contd.
  • The grievances typically arise on such questions
    as discipline and dismissal, the payment of wages
    and other fringe benefits, working time,
    over-time, time-off entitlements, promotion,
    demotion, transfer rights of seniority, rights of
    supervisors and union officials, 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.

17
Contd.
  • In some countries, grievances arise especially
    over the interpretation and application of
    collective agreements. The grievance disputes
    are, therefore, also called interpretation
    disputes.
  • Such grievances, if not dealt with in accordance
    with a procedure that is respected by the
    parties, often result in embitterment of the
    working relationship and a climate of industrial
    strife.

18
Contd.
  • There is a definite standard for setting a
    grievance dispute - the relevant provision of the
    collective agreement, employment contract, works
    rules or law, or custom or usage.
  • In many countries, Labour Courts or Tribunals
    adjudicate over grievance disputes. In other
    words, government encourages voluntary
    arbitration for their settlement.

19
Contd.
  • Disputes Over Unfair Labour Practices The most
    common unfair labour practices in industrial
    relations parlance are attempts by the management
    of an undertaking to discriminate against workers
    on the ground that they are trade union members
    or participate in trade union activity.
  • In most cases, the objects of this discriminatory
    treatment are union officials or representatives
    employed in the undertaking, and trade union
    members who have actively participated in
    strikes.

20
Contd.
  • Other unfair labour practices are generally
    concerned with interference, restraint or
    coercion of employees when they exercise their
    right to organise, join or assist a union,
    establishment of employer-sponsored unions,
    refusal to bargain collectively, in good faith,
    with the recognized union recruiting new
    employees during a strike which is not an illegal
    strike failure to implement an award, settlement
    or agreement indulging in acts of force or
    violence, etc.

21
Contd.
  • These unfair labour practices are also known in
    various countries as trade union victimisation.
    In many countries, a special procedure exists
    under the law for the prevention of such
    practices. Such a procedure obviates or precludes
    conciliation.
  • In the absence of such procedure, disputes are
    settled according to the normal procedure laid
    down under the Disputes Act.

22
Contd.
  1. Recognition Disputes This type of dispute
    arises when the management of an undertaking or
    employer's organisation refuses to recognise a
    trade union for the purpose of collective
    bargaining.

23
Contd.
  • Issues in recognition disputes differ according
    to the cause which has led the management to
    refuse recognition.
  • It may be that the management dislikes trade
    unions and will not have anything to do with a
    trade union the problem is then of attitude, as
    in the case of trade union victimisation.
  • However, the management's refusal may be on the
    ground that the union requesting recognition is
    not sufficiently representative, or that there
    are several unions in the undertaking making
    conflicting claims to recognition.

24
Contd.
  • In such a case, the resolution of the issue may
    depend on the existence or non-existence of rules
    for determining the representative character of a
    trade union for the purpose of collective
    bargaining.
  • Such rules need not necessarily be laid down by
    law they may be conventional or derived from
    prevailing practices in the country.
  • In many countries, guidelines for trade union
    recognition have been laid down in voluntary
    Codes of Discipline or Industrial Relations
    Charters accepted by employers' and workers'
    organisations.

25
Impact of Industrial Disputes
  • The consequences of industrial disputes are very
    far-reaching, for they disturb the economic,
    social and political life of a country.
  • The workers, the employers, the consumers, the
    community and the nation suffer in more than one
    way.

26
Various impacts
  • Industrial disputes result in a huge wastage of
    mandays and dislocation in the production work. A
    strike in a public utility service disorganizes
    public life and throws the economy out of gear
    and consumers are subjected to untold hardships.
  • the short supply of consumer goods results in
    sky-rocketing prices, and leads to their
    non-availability in the open market.
  • The workers are also badly affected in more than
    one ways.

27
Contd.
  • The employers suffer heavy losses, not only
    through stoppages of production, reduction in
    sales and loss of markets but also in the form of
    huge expenditure incurred on crushing strikes,
    engaging strike-breakers and blacklegs
    maintaining a police force and guards
  • Apart from these losses, the loss of mental
    peace, respect and status in society cannot be
    computed not in terms of money.

28
Contd.
  • The public/society, too, is not spared,
    industrial unrest creates law and order problems,
    necessitating increased vigilance on the part of
    the state.
  • Further, even when disputes are settled, strife
    and bitterness continue to linger, endangering
    social relations.

29
Contd.
  • Industrial disputes also affect the national
    economy.
  • Prof. Pigou has observed
  • When labour and equipment in the whole or any
    part of an industry are rendered idle by a strike
    or lockout, national dividend must suffer in a
    way that injures economic welfare .... It may
    happen in two ways.

30
Contd.
  • On the one hand, it impoverishes the people
    actually involved in the stoppage, it lessens the
    demand for the goods the other industries make
  • on the other hand, if the industry in which the
    stoppage has occurred is one that furnishes a
    commodity or service largely used in the conduct
    of other industries, it lessens the supply to
    them of raw material or equipment for their work.
  • This results in a loss of output, ultimately
    reducing the national income. Hence developmental
    activities cannot be undertaken for want of
    necessary finances.
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