Industrial Disputes

Presented To: Prof. Harveen Kaur (Professor,USB, Chandigarh University)

Presented & submitted by : Atul Kumar (19MBA1750)
 Meaning : Industrial Disputes
 In common parlance, dispute means difference or disagreement of strife over some issues
between the parties.
 In terms of industry disputes means a disagreement or clash of Employees and Employers .
 Definition
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”.
 Nature of an industrial dispute:

 The dispute must affect a large number of workmen.(The rights of these workmen must
be affected as a class).
 The dispute must be taken up either by the industry union or by a substantial number of
workmen.
 The grievance turns from individual complaint into a general complaint.
 There must be some nexus between the union and the dispute.(There must be a
logical and common point of disagreement.)
 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.
 The common causes of industrial disputes
 Psychological Causes:
(i) Authoritarian leadership (nature of administration).
(ii) Clash of personalities.
(iii) Difficulty in adjusting in given conditions or with each other (employee and
employer).
(iv) Strict discipline.
(v) Demand for self-respect and recognition by workers.

 Institutional Causes:
(i) Non recognition of trade/labour union by the management.
(ii) Matters of collective bargaining.
(iii) Unfair conditions and practices.
(iv) Pressure on workers to avoid participation in trade unions.
 The common causes of industrial disputes
 Economic Causes:
▪ Terms and conditions of employment.
(i) More work hours.
(ii) Working in night shifts.
(iii) Disputes on promotions, layoff, retrenchment and dismissal etc.

▪ Working conditions.
(i) Working conditions such as too hot, too cold, dusty, noisy etc.
(ii) Improper plant and work place layout.
(iii) Frequent product design changes etc.

▪ Wages and other benefits.

(i) Inadequate wages.
(ii) Poor fringe benefits.
(iii) No bonus or other incentives etc.

 Denial of Legal and other Right of Workers:

(i) Proceeding against labour laws and regulations.
(ii) Violation of already made agreements i.e., between employees and employers.
Types of Industrial Disputes
Types of Industrial Disputes: Strike
 Strike:
When workers collectively cease to work in an industry, it is called strike.
(a) Economic Strike:
Most of the strikes of workers are for more facilities and increase in wage levels.
(b) Sympathetic Strike:
When workers of one industry go on strike in sympathy with the workers of other industry who
are already on strike, it is known as sympathetic strike.
(c) Stay in Strike:
In this case, workers do not absent themselves from their place of work when they are on
strike. They keep control over production facilities but do not work. Such a strike is also termed
as ‘pen down’ or ‘tool down’ strike.
(d) Go Slow Tactics:
Here, workers deliberately work to rule and do their work in a very slow manner.
 Types of Industrial Disputes
(ii) Boycott:
The workers may decide to boycott the company by not using its products. Such an appeal may also be
made to the public in general.
(iii) Picketing:
When workers are dissuaded from work by stationing certain men at the factory gates, such a step is known
as picketing. If picketing does not involve any violence, it is perfectly legal.
(iv) Gheraos:
In gherao workers force the employer to remain confined in their office for a considerably long period so as to
press for their demands.
(v) Lockout:
An employer may close the place of employment temporarily for those workers who are on strike. Such a step
is technically known as Lockout. It is reverse of a strike and is a very powerful weapon in the hands of an
employer to pressurise the workers to return to the place of work.
According to the Industrial Dispute Act 1947, Lockout means the closing of-place of employment or the
suspension of work, or the refusal by an employer to continue to any number of persons employed by him.
(vi) Termination of Service of Striking Employees:
The employer may also terminate the services of those workers who are on strike by blacklisting them.
Outcomes of Industrial Disputes
 Example : Hero Honda Strike
 Production came to a grinding halt after the workers went on strike. There is no
production going on right now. They produce about 6,500 vehicles a day at the plant .
 The workers were demanding regularisation of 1,000 contract workers immediately and
100 workers every month subsequently. Other demands of the workers include
compensatory off, medical facilities and salary accounts in banks.
 The company has on board 1,200 permanent workers while 4,000 are on contract. While
Pradhan claims that all 4,000 are on strike, the company puts the number at 2,000.

“ This trade Union strike was one of the largest strike in the History
of Hero Honda Ltd. Which is world’s no. 1 2 wheeler manufacturer
in India , This Strike tended to cause an Enormous financial loss to
the company” .