1

Scheme
Nature of disputes Causes for disputes Settlement of disputes

Causes of Disputes
Wage demands Union rivalry Political interference Unfair labour practices Multiplicity of Laws Others

Union Rivalry and Violence

The Bangalore-based leader in automobile components has an experience which no rival should have. Upto 1978 the company had only one union headed by MSK, a veteran Communist leader and an outsider to the plant. But 1978 changed the IR scenario. In an election held, MSKs team was trounced by a group comprising all employees of the plant. The winning team however was headed by S, who was an outsider. The management did not take kindly to union led by S. It started supporting another team headed by MDN who was also an outsider and who enjoyed the support of the then Chief Minister of Karnataka. MDN and his supporters, abetted by the police and the management, resorted to large-scale violence and the supporters of S were severely beaten inside the plant. S, who had 3/4th of the employees behind him, gave a call and the employees struck work. The strike lasted six months.

Contd
4

 The general elections to state assembly were held in Karnataka in 1980 and there was a change in the state leadership. MDN too lost his clout. The new Chief Minister encouraged his own crony FMK who claimed himself to be a labour leader.
The management looked forward to FMK to browbeat S. It recognised the union led by FMK (who, like MDN, was an outsider) and the union was an affiliate of INTUC. This led to another strike lasting three months. Management signed an agreement with the union led by FMK though S continued to enjoy majority support from employees. Angered at the settlement reached, S took up the case to the High Court of Karnataka. Violence had its toll again. The managements advocate was assaulted and the HRD manager too was man-handled and was stripped naked inside the plant. There were stabbings too. Continuous struggle and solidarity of the workers had the last laugh. The management was forced to recognise S as the union leader. FMK lost his clout among the workers. This followed the loss of power by the Chief Minister who had supported FMK. Both the management and S let the bygones be bygones. The company has been enjoying cordial IR till today.
5

Dispute Settlement Mechanisms

The Collective Bargaining Process

Grievance Procedure