Human Resource Management

INDUSTRIAL DISPUTES
Introduction
Industrial relations are invariably a combination of cooperation, collaboration and conflict between labour and management. However efforts should be made to seek the maximum degree of cooperation and collaboration between them so that organizational objective may be achieved efficiently. Some degree of conflict always remains because of the following reasons Both labours as well as management have different orientation and perceptions which generate generally negative image about each other. Both the group claims complete rationality for their demands; because there are no mutually accepted norms to guide their behavior in the pursuit of their objectives. Both groups dont come on the negotiation table with a clean slate.

Industrial Peace
Industrial peace is an ideal situation for industrial growth. It is, therefore desirable to establish cordial labour-management relation. The responsibility of creating industrial peace rests with employers, employees and the government. Industrial peace is possible only when all the three parties take suitable steps for maintaining cordial industrial relation. It means absence of industrial unrest or the existence of harmonious relations between labour and management. The predictions of lasting industrial peace are There should be strong trade unions with democratic norms The employers should have a progressive outlook Both workers and managements should have faith in collective bargaining and other peaceful means of settling disputes Workers participation in management should be encouraged There should be open two way communication between the parties to industrial relations.

Measures for Industrial Peace

a) Liberal and fair management policy regarding wages and other benefits b) Satisfactory working conditions c) Mutually acceptable personnel policies in respect of employment, promotion, disciplinary action and dismissal d) Social security and labour welfare measure to provide for the legitimate needs of workers and their families e) Better employer-employee communication, greater and more effective attention to employee problems, complaints and grievances and efficient grievance handling machinery f) Healthy supervision, fair treatment and demonstrably impartial treatment to workers g) Collective bargaining and the establishment of mutually acceptable agreements defining policies, responsibilities and procedures for implementation of decisions.

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Industrial Dispute
Industrial Dispute means any dispute or difference between employer and employees, or between employer 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, or any person Industrial Disputes Act, 1947. Industrial dispute is disagreement and difference between two disputants, namely labour and management. This disagreement could be on any matter concerning them individually or collectively but must be connected with employment or non-employment or with the conditions of labour. The severity of industrial disputes is measured on the basis of man-days lost on account of industrial disputes. For an industry, severity rate may be calculated by the following formula R = L/M 100 Where R = severity rate, L= total number of mandays lost on account of disputes during the year, M=total number of mandays available in the year.

Forms of Industrial Disputes 1. Strikes:

A strike is a spontaneous and concerted withdrawal of labour from production temporarily. It is a collective stoppage of work by group of workers for pressuring their employers to accept certain demands. The Industrial Dispute Act, 1947 has defined a strike as an assertion of work by a body of persons employed in industry acting in combination, or a concerted refusal under a common understanding of any number of persons who are or have been so employed to continue to work or to accept employment. Strikes are of several types a) Sympathetic strike b) General strike c) Unofficial strike d) Sectional strike e) Bumper strike f) Sit down strike g) Slow down strike h) Lightning strike i) Hunger strike

2. Lock-outs:
Lock out is the counter part of strike. It is the weapon available to the employer to close down the factory till the workers agree to resume work on the conditions laid down by the employer. The Industrial Disputes Act of 1947 defined it as the closing of a place of an employment, or the suspension of work or the refusal of an employer to continue to employ ay number of persons employed by him. If it is impossible to meet the demands of the workers, employers may decide to go for lock out.

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3. Gherao:
Gherao means to surround. In this method a group of workers initiate collective action aimed at preventing members of the management from leaving the office. This can happen outside the factory premises too. The main object of gherao is to inflict physical and mental torture to the person being gheraoed and hence this weapon disturbs the industrial peace to a great extent.

4. Picketing and Boycott:

In picketing workers carry/display signs, banners and play cards in connection with the disputes and prevent others from entering the place of work and persuade others to join the strike. Boycott aims at disrupting the normal functioning of an enterprise. Through forceful appeals and negative behavioral acts, striking workers prevent others from entering the place of work and persuade them not to cooperate with the employer.

CAUSES OF INDUSTRIAL DISPUTES

The disputes between management and the workers may rise on account of the following factors 1. Economic Causes: These causes may be causes may be classified as: a) Demand for increase in wages on account of increase in all-India Consumer Price Index for Industrial workers. The demand for increase in wages may be raised for all categories of factory workers. b) Demand for higher gratuity and other retirement benefits c) Demand for higher bonus d) Demand for paid holidays e) Reduction of working hours f) Better working conditions, etc.

2. Political Causes Trade unions in India are controlled by various political parties. In many cases their leadership vests in the hands of persons who are more interested in achieving their political interests rather than the interests of labourers. 3. Personnel Causes Sometimes industrial disputes arise because of personnel problems like dismissal, retrenchment, transfer, promotion, etc. 4. Indiscipline Industrial disputes also take place because of indiscipline and violence on the part of the work force. Lock outs are resorted to by the managements to curb indiscipline and violence.

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IMPACT OF INDUSTRIAL DISPUTES Consequences of industrial disputes are often far reaching as they disturb the economic, social and political life of a country. Industrial disputes create turmoil between the management and the labour and are, in fact, symptoms of poor industrial relations. The adverse effect of industrial disputes may be enumerated as follows: i. Disturbance of Industrial Peace: Tense industrial relation resulting in disputes lead to a fall in the normal tempo of work in the factory. Plant capacity utilization falls below the optimal level; costs go up; absenteeism and labour turnover increase and production suffers both quantitatively as well as qualitatively. Resistance to change: To be successful in business, innovations are a must. Innovation involves changes which can be introduced with the cooperation of employees only in an environment of poor industrial relation employees lose their faith in management and resist all changes necessary for the survival and growth of the enterprises. Intensification of Social Tension: Frustration among employees leads to a reduction in their cordiality towards management and this creates social tension in the industry.

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Industrial Relation Machinery

Lasting industrial peace requires that the causes of industrial disputes should be eliminated. Preventive steps should be taken so that industrial disputes do not occur. But if preventive machinery fails, then the industrial dispute settlement machinery should be activated by the Government because non-settlement of disputes will prove to be very costly to the workers, management and the society as a whole. Machinery for handling Industrial Disputes
` Preventive machinery Settlement machinery

Workers participation in management

Collective bargaining

Grievance procedure

Tripartite Bodies

Code of discipline

Standing orders

Conciliation

Court of enquiry

Voluntary arbitration

Adjudication

Conciliation officers

Conciliation board

Labour court

Industrial tribunals

National tribunals

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Procedures for Settling Labour Dispute:

Collective Bargaining, Negotiation, Conciliation and Mediation, Arbitration and Adjudication are well known methods for settlement of industrial disputes.

Collective Bargaining:
Collective Bargaining is a technique by which dispute as to conditions of employment, are resolved amicably, by agreement, rather than by coercion. The dispute is settled peacefully and voluntarily, although reluctantly, between labour and management. In the context of present day egalitarian society, with its fast changing social norms, a concept like collective bargaining is not a capable of a precise definition. The content and Scope collective bargaining also varies from country to country. Broadly Speaking Collective bargaining is a process of bargaining between employers and workers, by which they settle their disputes relating to employment or non-employment, terms of employment or conditions of the labour of the workman, among themselves, on the strength of the sanctions available to each side. Occasionally, such bargaining results in an amicable settlement arrived at voluntarily and peacefully, between the parties. But quite often, the workers and employers have to apply sanctions by resorting to weapons of strike and lockouts, to pressurize one another, which makes both the sides aware of the strength of one another and that finally forces each of them to arrive at a settlement in mutual interest. It is thus the respective strength of the parties which determine the issue, rather than the wordy duals which are largely put on for show, as an element of strength in one party is by the same token, an element of weakness in another. The final outcome of bargaining may also depend upon the art, skill and dexterity of displaying the strength by the representatives of one party to the other.

Negotiation:
Negotiation is one of the principal means of settling labour disputes. However, due to lack of trust between the employers and workmen or their trade unions or inter-rivalry of the trade unions and the employers being in a commanding position, many a time negotiations fail. Through Amendment in the Act by Act 46 of 1982 Chapter II B providing for reference of certain individual disputes to Grievance Settlement Authority has been inserted in the Act. Under this Chapter, section 9 C has made it obligatory for the employers to make provision for Grievance Settlement Authority for settlement of industrial disputes connected with an individual workman employed in an establishment in which fifty or more workmen are employed or have been employed on any day. In the preceding twelve months. This amendment however even inspite of having been made twenty one years back has not seen the light of the day.

Conciliation & Mediation:

Through conciliation and mediation a third party provides assistance with a view to help the parties to reach an agreement. The conciliator brings the rival parties together discuss with them their differences and assist them in finding out solution to their problems. Mediator on the other hand is more actively involved while assisting the parties to find an amicable settlement. Sometimes he submits his own proposals for settlement of their disputes.

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Conciliation may be voluntary or compulsory:

It is voluntary if the parties are free to make use of the same, while it is compulsory when the parties have to participate irrespective of whether they desire to do so or not. Section 4 of the Act provides for appointment for conciliation officers and Section 5 for constitution of Boards of Conciliation. The Board of conciliation is to consist of an independent Chairman and two or four member representing the parties in equal number. While the former is charged with the duty of mediating in and promoting the settlement of industrial disputes, the latter is required to promote the settlement of industrial disputes. The act generally allows registered trade unions or a substantial number of workers/ employees and also in certain cases individual workman to raise disputes. The performance of conciliation machinery, though it does not appear to be unsatisfactory, causes delays due to casual attitude of the parties towards conciliation, defective processes in the selection of personnel and unsatisfactory pre-job training and period-in-service-training. Delays in conciliation are attributed partly to the excessive work-load on officers and partly to the procedural defects. Since conciliation officer has no powers of coercion over labour and management, he can only persuade them to climb down and meet each other. The settlements that are claimed to result from conciliation are increasingly the result of political intervention17. Success of conciliation depends upon the appearances and their sincere participation in conciliation proceedings of the parties before the conciliation officers. Non-appearance and nonparticipation of the parties in conciliation proceedings poses a serious hindrance in this direction. On the attitude of the parties National Commission on Labour observed conciliation is looked upon very often by the parties as merely hurdle to be crossed for reaching the next stage. The representatives sent by the parties to appear before him are generally officer who do not have the power to take decisions or make commitments: they merely carry the suggestion to the concerned authorities on either side. This dampens the spirit of a conciliator. We have been told by the employers and workers, organizations alike that the conciliation machinery is weakened because of its falling into this type of disuse in recent years,18 Section 11 of the Act has clothed the conciliation officers with the power to enter premises occupied by any establishment and also has been invested with the powers of civil court under the Civil Procedure Code, 1908 when trying a suit for enforcing the attendance of any person and examining him on oath, compelling the production of documents and material objects and issuing commission for examination of witness for the purpose of inquiry in to any existing or apprehended industrial dispute. These provisions are seldom enforced. Moreover, conciliators most often do not have requisite information on the employers and trade unions, up to date wage/productivity, information and relevant up to date case laws which affect his capability to conciliate effectively. The National commission on labour in this context laid emphasis for pre job and on the job training of conciliation officers.

Arbitration:
The resort to arbitration procedure may be compulsory or arbitrary. Compulsory arbitration is the submission of disputes to arbitration without consent or agreement of the parties involved in the dispute and the award given by the arbitrator being binding on the parties to the dispute. On the other hand in case of voluntary arbitration, the dispute can be referred for arbitration only if the parties agree to the same. Section 10 A of the Act, however, provides only for voluntary reference of dispute to arbitration. This system, however, has not been widely practiced so far. One of the main reasons for not gaining popularly of this procedure is lack of arbitrators who are able to command respect and confidence of the parties to

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the dispute. Inter Union rivalry also sometimes makes it difficult in arriving at an agreement on settlement of an arbitrator who is acceptable to all the trade unions in the industry.

Adjudication:
If despite efforts of the conciliation officer , no settlement is arrived at between employer and the workman, The Industrial Dispute a provides for a three tier system of adjudication viz. Labour Courts , Industrial Tribunals and National Tribunals under section, 7 , 7A and under section 7B respectively. Labour Courts have been empowered to decide disputes relating to matters specified in the Second Schedule. These matters are concerned with the rights of workers, such as propriety of legality of an order passed by an employer under the standing orders, application and interpretation of standing orders, discharge or dismissal of workman including reinstatement of grant of relief to workman wrongfully discharged or dismissed, withdrawal of any customary concession or privilege and illegality or otherwise of a strike or lockout. The industrial tribunal is empowered to adjudicate on matters specified in both the Second and Third schedule i.e. both rights and interest disputes. The jurisdiction of the Industrial Tribunal is wider that the labour courts.

Effects of industrial dispute or poor industrial relation

Industrial unrest is a reflection of basic human urges or motives to secure adequate satisfaction which finally gets manifested in the form of industrial disputes. The adverse effect of poor industrial relations may be as follows i. Tense Relations: Tension in the organisation increases because of poor industrial relation. There is an atmosphere of breakdown of communication and lack of trust between the management and the workers it becomes very difficult to expect cooperate attitude from the workers and trade unions. Lower Morale: Because of tension in industry, workers interest in work is diminished leading to higher absenteeism and labour turnover Frustration among Employee. Employees work in a particular organisation for the satisfaction of their physical, social and egoistic needs. In an environment with uncomfortable industrial relations, they find it difficult to satisfy their needs. This will obviously lead to frustration among them Lower Profitability: Because of poor industrial relations, the productivity of the workers goes down. At times, this may also bring down the quality of products. Fall in productivity and quality will have adverse impact on the profitability of the enterprise. Besides this, the wastages may also rise substantially. Agony to Workers and their families: Industrial friction may inflict lasting injury on the workers. It may affect not only the workers but their families also. Inadequate nourishment to the workers children during the periods of strikes and lockouts may affect their health and education on a permanent basis.

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Steps To Promote Industrial Peace

Industrial peace is an ideal situation for industrial growth. It is, therefore desirable to establish cordial labour management relations. In order to promote industrial harmony or lasting peace in industry, the following steps are suggested: Atmosphere of Mutual Trust: Both management and labour should help in the development of an atmosphere of mutual cooperation, confidence, and respect. Management should adopt a progressive outlook and should recognize the rights of workers. Both the management and the unions should have faith in collective bargaining and other peaceful methods of settling disputes between them. Effective Communication: Blockage in communication between the management and the workers should be removed. There should be an effective system of two way communication so that the basic policies and procedures relating to industrial relations are known to everybody in the organisation. Proper communication will help in minimizing resistance to change, eliminating unnecessary misunderstanding, and thus in checking deterioration in industrial relations. Fair personnel policies: Sound and fair personnel policies should be formulated in consultation with the representatives of the employees, reviewed periodically, communicated to all the members of the organisation, and implemented uniformly throughout the organization. Protective management: the management should follow a proactive approach i.e. should anticipate problems and take timely steps to tackle these problems. Challenges must be anticipated before they arise otherwise reactive actions will compound them and cause greater discontent. Strong Unions: The workers should be encouraged to build strong unions which will negotiate with the management and guide the workers in improving productivity and quality. Strong and stable unions will go a long way in protecting the economic and social interests of the workers. Industrial Democracy: Workers participation in management of the industrial enterprise should be encouraged. This will not only satisfy the psychological needs of the workers but also help in improving communication and trust between the management and workers and also allow the workers to actively participate in improving productivity and quality. Effective Implementation of Agreements: Any agreement settlement between labour and management should be sincerely administered in both letter as well as spirit, otherwise mutual faith may be shaken and industrial relations may start getting tense. Role of Government: The government can play an important role in protecting the interests of the workers and also ensuring smooth industrial relations in industry by enacting and enforcing various labour laws. It must monitor and regulate industrial relations for encouraging industrial peace in the country.

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