What is an Industrial Dispute? Discuss its causes and consequences.

What is an Industrial Dispute? Discuss its causes and consequences.

An industrial dispute is caused by revolting employees who disturb industrial peace and harmony. Industrial disputes generally arise due to tensions between labour and management, and gives rise to more issues. This may cause employees to not do their work, and affecting the quality and quantity of production. Furthermore, as industrial tensions rise, there may be strikes and lock-outs.

Causes of Industrial Disputes:

Economic Causes:

1. Low income: As prices and living expenses are rising in India, employees also expect their income to rise. Unfortunately, that rarely happens. To make things worse, there is only one earning member in the household and this person alone supports everyone financially. Many times, the income is not enough to keep everyone content and pay all the bills. Thus, if the earning member loses his/her job, the entire family suffers in poverty. Low wages cause discontent in employees.

2. Prices in India are rising constantly, hence, it is also expected that the income of industrial labourers increase, but that never happens.

3. Dearness Allowance associated with labourers has no corresponding increase with rising prices.

4. Most industries have unhygienic and unsafe working conditions. This puts pressure on workers' health.

5. Employees find it extremely difficult to get leave with pay.

6. Employees are becoming more and more conscious about self-respect. Tempers flare when they are insulted or instigated by their superiors.

7. Most of the time, extra bonus is not paid, or not paid on time. This causes industrial conflicts.

Managerial Problems:

1. Sometimes, employees are unfairly relieved from their jobs. Nevertheless, their colleagues unite and fight for the rehiring of their relieved colleagues.

2. Sometimes, trade unions are not recognized by industries resulting in strained relations and stress.

3. Replacement of workers by machinery is causing discontent. Workers are getting laid off and replaced by cheaper machines that do the same work.

4.Disputes may also arise due to dishonest mid-level management. This management prevent labour from contacting senior management, and act as middle-men. Lack of communication causes distrust.

Political Reasons:

1. Many industrial disputes are being caused by political parties. Political involvement in trade unions causes divisions and unnecessary tensions.

2. sometimes some political parties gives a call to 'Bandh" (Shut down) and all industries keep bandh on that day as a token of support to the political party or their leaders.

Consequences of Industrial Conflicts:

(1) Economic Loss:

 Unrest and unnecessary tensions engulf the hearts and minds of all the people involved - labourers and senior management. There is economic loss due to conflicts because conflicts may result in strikes and lock-outs. This causes low or no production resulting in industrial loss. The economic, social and political life of a country is disturbed: 

When industrial conflicts get out of hand, they become a threat to peace and security. Workers may resort to violence and indulge in sabotage.

When labour and equipment in the whole or any part of an industry go on strike or lockout, national income suffers.  It harms economic growth and welfare. Strikes and lockouts bring bad effects on industrial relations. With the result the workmen and the employer always faces hardships, exports declines political tensions also causes heavy costs. The opposition tries to take political advantage of the situation.

(2)Loss of Output:

Loss of output in an industry which is directly affected by a dispute, but other industries are also affected adversely, as stoppage of work in one industry checks activity in other industries too as there is a chain reaction. One industry’s output is another industry’s input.   When there is a strike in one industry that furnishes raw materials semi-finished goods or service largely used in the products of other industries, therefor all other suffers.

(3) Demand for goods and services: 

The lives of low-level labourers become worse when they are out of work. They may be the only working members of the family, and their joblessness may lead everyone in the family to poverty. Strikes reduce the demand for the goods that other industries make. Similarly the workers do not get wages and therefore there day-to-day demand for goods and services also suffers.

 (4) Lasting loss to the workers:

There is a lasting injury to the workers in the form of work being interrupted due to the strikes which involves a loss of time which cannot be replaced. The wages are lost and the workers can least afford to lose them especially when the average earning of a worker is not very high.

(5) Increase in indebtedness:

Workers loss their earnings and they have to rely on the borrowed funds. This increases the indebtedness among the workers and not only the old debts become heavier but fresh debts may also be incurred.

(6) Loss of health of family members:

 The workers and their family members also suffer from loss of health due to mental stress resulting from loss of wages.

(7) Problem to consumers:

Strikes and lockouts create problem to consumers also. Articles of their requirements are not available in time, and the prices of such articles reach high due to black marketing activities.

Students can not appear in examination if the transporters are on strike. Travel and tourist also faces hardships.

(8) Loss to the management/employer:

When workers stop working, the plant and machinery remain idle. The fixed express are to borne by the employer even when the production stops. This way the employer suffers from great loss as they have to bear the fixed costs. 

Industrial losses may cause economic depression because many industries are interlinked. A problem in one industry may drastically affect another industry.Sometimes due to industrial unrest some labourers become violent and they may attack industrial undertakings and public property.

***