Page 160 - DMGT516_LABOUR_LEGISLATIONS

Unit 7: Dispute Resolution and Industrial Harmony

Objectives Notes

After studying this unit, you will be able to:
Explain concept of conflict in general

Analyze causes of conflict and legal framework
Discuss resolution of conflict
Explain industrial disputes like strikes, retrenchment and closure
Describe the concept of standing order and disciplinary

Introduction

According to Industrial Disputes Act, 1947, Industrial dispute is any dispute or difference between
employees and employees, or between employers and employers, which is connected with the
employment or non-employment, or the terms of employment or with the conditions of work
of any person.
Conflict is inevitable in the industrial organisation. Labour and management oppose each other
in numerous ways in the course of daily work. Most industrial jobs are repetitive, monotonous,
difficult, dirty and even accident prone. As a result of this management uses strict supervision to
get the work done, on the other hand, the normal sentiment of the worker is one of discontent.
The interests of these two parties are in conflict with each other.

7.1 Causes of Industrial Disputes/Conflict

Industrial includes three different possible sets of antagonists in industrial conflict. However,
the present discussion is confined to disputes arising between management and workers.
According to Nair and Nair causes of dispute are:

1. Economic causes – Wages, salaries, profit, etc.
2. Social causes – Low morale, corruption, pollution, rising unemployment, etc.
3. Political causes – Political rivalry, unstable government, etc.
4. Technical causes – Loss of jobs due to automation, unsuitable technology, etc.
5. Psychological causes – Loss of job, propaganda, instigation, etc.

6. Market causes – Competition, loss, recession, etc.
7. Legal causes – Court order of closing down factories, shifting (under zoning laws).
Disputes arise from a variety of sources for a variety of reasons. The following sections review
the various causes under two categories: conflicts caused by unions and those caused by
management.

7.1.1 Conflict/Dispute Caused by Unions

You cannot expect the unions to cooperate with the management all the time. In reality, it
doesn't happen that way. The quality of the relationship also depends on the people who interact
for the two parties, meaning those in the management and the trade union officials. In some
countries, the trade unions are also politicised and as a result even if the relationship between
the management and the unions are free of conflict, political interference may disturb the

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