What is Industrial Dispute?
Industrial dispute” is defined as, “Any disputes or differences 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”.
Laws governing Industrial Dispute
- Industrial Disputes,1947
- Factories Act,1948
- Industrial Employment, (Standing Orders),1948
- Payment of Bonus Act,1965
- Equal Remuneration Act,1976
- Adoption of ‘Code of Discipline’, 1958
- Employees Provident Fund and Family pension Act, 1952
- Employees State Insurance Act,1948
- Payment of Gratuity Act,1972
- Minimum Wages Act,1948
The main cause of Industrial Dispute: –
Wages: Low wages of industrial workers constitute a major cause of industrial disputes in the country. Wages have not been rising in proportion to the rise in prices (Inflation). Hence, laborers demand higher wages which management may deny and it consequently leads to disputes.
Bonus: It is the second major cause of industrial disputes. The workers feel that, they should have a greater share in the profits of the industrial concern and demand higher bonus which management may deny and it consequently leads to disputes.
Working Condition: The working conditions such as working hours, the security of a job, better safety measures in the factory, restrooms, leave, canteen, gratuity facilities, etc. are important for workers for their motivation towards the job. Lack of or insufficient working conditions are also responsible for many industrial disputes.
Trade union: Recognition of trade union and rivalry between different trade unions is also a main cause of industrial disputes.
Retrenchment: Due to modern techniques and modern machinery, production is simplified and requires less Labour. In such a case, the management tries to reduce the manpower by retrenchment. This may create insecurity in the minds of workers and may lead to an industrial dispute.
Political Influence: Most of the trade unions are associated with one or another political party. To score political point politicians may indulge in creating disputes in the industry.
Why Industrial Dispute Act ?
- The Industrial Disputes Act lays down comprehensive machinery for the prevention and settlement of industrial disputes.
- The Industrial Disputes Act embodies both substantive and procedural law aimed at promoting industrial peace and preventing industrial disputes.
- The main object of the Act is to harmonize the relations between employer and employees so as to maintain industrial peace and hence ensure Social Justice.
- It empowers the government to make a reference of the dispute to an appropriate authority viz Court, Industrial and National Tribunal depending upon the nature of the dispute, besides making a reference by the government on the request of the parties.
The Challenges:
The common consequences of industrial disputes are loss of production, income and employment and 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. To quote the value of production loss, which was Rs. 537.8 lakhs in 1961, has increased to Rs. 4,545.9 lakhs in 1995, i.e., an eight-time increase in the production loss
Outcomes of Industrial Disputes
The consequences of an industrial dispute are hazardous to the employer, employees, organization, society and the economy. However, it is taken as a useful tool by the workers, to raise their voice and put up their demands in front of the management or employers. It empowers the labors and protects their rights of speech & service in the organization.
Subscribe
0 Comments
Oldest