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Unit 13: Industrial Relations

Boycott aims at disrupting the normal functioning of an enterprise. Through forceful appeals Notes
and negative behavioural acts, striking workers prevent others from entering the place of work
and persuade them not to cooperate with the employer.

13.6.2 Causes of Industrial Disputes

Some of the prominent causes of industrial disputes may be listed thus:
1. Employment: The list here includes disputes over wages, allowances, bonus, benefits,
working conditions, unjust dismissals, retrenchment of workers, methods of job evaluation,
changes in methods of production, non-implementation of awards of tribunals, etc. The
National Commission on Labour remarked "though on a majority of occasions industrial
disputes were based on claims pertaining to the terms and conditions of employment,
sometimes economic issues of a general character dominated and, on occasions, purely
political motives".
2. Nationalisation: Workers protested against the introduction of rationalisation,
automation, computerisation (e.g., Bank unions oppose this move even now) on various
occasions, fearing large scale retrenchment.
3. Administration-related Causes: These pertain to ill-treatment, undeserved punishment,
verbal abuse, physical assaults, etc.
4. Recognition: Disputes arose when employers failed to recognise a union as a bargaining
agent.

5. Sympathetic Strikes: Workers struck work in one plant/industry when they wanted to
exhibit their solidarity with striking workers from another plant or industry.
6. Psychological/social Causes: On occasion, family, friends, community, environmental
pressures and concerns also instigated the workers to take to the streets.
7. Institutional Causes: Disputes arose on account of institutional factors such as: recognition
of unions, membership of unions, scope of collective bargaining, unfair practices.
8. Political Causes: Political leaders have used unions as powerful weapons to build tensions
inside a plant/industry with a view to satisfy their own private ends on a number of
occasions, especially in unionised places like Mumbai, Ahmedabad, Kanpur, Calcutta, etc.

Example: Post Liberalisation Disputes

1. After liberalisation (1990 onwards) the clout of unions was reduced drastically. Strikes
organised by Rajan Nair, Chand Bibi, Dhunji Neterwala did not yield major benefits to
workers. The Datta Samant-led agitation in Premier Automobiles Ltd failed miserably.
2. The militancy which was almost synonymous with labour unions in the past has, by and
large, declined now. The Shiv Sena led Bharatiya Kamgar Sena was more pragmatic and
was quick to understand the shifting trends. In the Mumbai and Pune belt it enjoys
membership of over 2.5 lakh workers. Mill owners are also happy to deal with such
unions which give importance to plant level factors and conduct the negotiations in a
give-and-take manner.

3. In public sector disputes were frequent in steel, P & T, railways, ports, LIC, Indian Airlines
and fertilizer units.
4. More than half of disputes (30%) arose on account of income factors (wages, allowances,
bonus) followed by causes relating to indiscipline, personnel and charter of demands.

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