Everything you need to know about the types of industrial disputes. Industrial disputes essentially are concrete manifestations of the element of conflict an inseparable aspect of industrial relations.
Industrial disputes usually involve management and workers represented by the union or their authorized representatives. Industrial disputes relate mainly to terms and conditions of employment of workers, but they are also raised on many other issues such as recognition of representative union, union jurisdiction and so on.
Some of the types of industrial disputes are:- 1. Strikes 2. Lockouts 3. Gherao 4. Picketing and Boycott 5. Disputes Concerning Interests 6. Disputes Concerning Rights.
Also learn about the machinery for prevention and settlement of industrial disputes.
Everything you need to know about the Types of Industrial Disputes (with causes)
Types of Industrial Disputes – Strikes, Lockouts, Gherao, Picketing and Boycott
Industrial disputes essentially are concrete manifestations of the element of conflict an inseparable aspect of industrial relations. Industrial disputes usually involve management and workers represented by the union or their authorised representatives. Industrial disputes relate mainly to terms and conditions of employment of workers, but they are also raised on many other issues such as recognition of representative union, union jurisdiction and so on.
ADVERTISEMENTS:
Besides, disputes between employer(s) and employer(s), between union(s) and union(s), between employees and employees related to employment matters are also covered under industrial disputes.
The Industrial Disputes Act, 1947 defines an industrial dispute as any dispute or difference between employers and employers or between employers and workmen, or between workmen and workmen, which is connected with the employment or with the conditions of labour of any persons.
The Supreme Court has specified certain necessary ingredients of an industrial dispute.
ADVERTISEMENTS:
These are as follows:
(1) An industrial dispute must necessarily be a dispute in an industry.
(2) There should be real or substantial dispute or difference.
(3) The dispute or difference must be between employers and/or workmen.
ADVERTISEMENTS:
(4) The dispute or difference must be connected with the employment or non-employment or terms of employment, or with the conditions of labour of any person.
From the above definition, it is clear that an industrial dispute may involve not only the employer and workmen/unions in an individual establishment, but also in an industry as a whole or a group of industries. Besides, a single industrial dispute may involve a number of employers and their organisations on the one hand, and many trade unions or workmen on the other. There may be disputes among the employers or unions themselves, but these must relate to terms and conditions of employment or other employment-related issues.
The various types of industrial disputes may be stated thus:
Type # 1. Strikes:
A strike is a spontaneous and concerted withdrawal of labour from production temporarily. It is a collective stoppage of work by a group of workers for pressuring their employers to accept certain demands. The Industrial Disputes 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 or a 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.
ADVERTISEMENTS:
Strikes are of several types:
a. Sympathetic Strike- When a strike is undertaken to show sympathy with workers in other industries, it is called a sympathetic strike.
b. General Strike- It is a strike by all or most of the unions in an industry or a region.
c. Unofficial Strike- It is a strike undertaken without the consent of the unions.
ADVERTISEMENTS:
d. Sectional Strike- It is the refusal of a section of a given class of workers to perform their normal duties.
e. Bumper Strike- It is a strike when the unions plan to paralyse the industry, firm by firm, the order being chosen by the union. Such strikes are supported by the contributions of those who are still at work.
f. Sit down Strike (also called stay-in, tool down, pen down strike) – It is a strike in which workers cease to perform their duties but do not leave the place of work.
g. Slow-down Strike- Known as a ‘go-slow’ tactic, the workers do not stop working but put breaks to the normal way of doing things.
ADVERTISEMENTS:
h. Lightning Strike- Out of provocation, workers may go on strike without notice or at very short notice. There is an element of surprise in such wildcat strikes.
i. Hunger Strike- To gain sympathy from the public and get noticed by the employer, workers may decide to forego food for a specified period. Small batches of workers may also go on a relay hunger strike in a sequential order. Such non-violent protests generally bring moral pressure on employers to iron out the differences with labour quickly.
Type # 2. Lockouts:
Lockout is the counterpart 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 any number of persons employed by him”.
If it is impossible to meet the demands of the workers, employers may decide to go for lockout. An employer may also pull down the shutters so as to bring psychological pressure on the workers to agree to his conditions or face closure of the unit.
Type # 3. Gherao:
ADVERTISEMENTS:
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 persons who are ‘gheraoes’ are not allowed to move for a long time, sometimes even without food or water.
The National Commission on Labour, while refusing to accept it as a form of industrial protest, opined that gheraos tend to inflict physical duress (as against economic pressure) on the persons affected and endanger not only industrial harmony but also create problems of law and order.
Type # 4. Picketing and Boycott:
When picketing, workers often carry / display signs, banners and placards (in connection with the dispute), 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 behavioural acts, striking workers prevent others from entering the place of work and persuade them not to cooperate with the employer.
Type of Industrial Conflicts – 2 Types – Strikes and Lock-Outs
Industrial conflicts are basically two types, viz., Strikes and Lock-Outs.
1. Strikes:
Strikes are the result of more fundamental maladjustments, injustices and economic disturbances. According to Peterson, “strike is a temporary cessation of work by a group of employees in order to express grievances or to enforce a demand concerning changes in work conditions.”
Section 2(1) of the Industrial Disputes Act, 1947 strike is “a cessation of work by a body of persons employed in any industry, acting in combination or a concerted refusal under a common understanding, of a number of persons who are or have been so employed to continue to work or to accept employment.”
ADVERTISEMENTS:
According to Section 2(1) of the Industrial Disputes Act, 1947 lock-out means “the closing of a place of business of employment or the suspension of work, or the refusal by an employer to continue to employ any number of persons employed by him.”
However, prohibiting an individual employee, termination of employment or retrenchment, termination of service of more than one person are not lock-outs.
Strikes are divided into primary strikes and secondary strikes. Primary strikes are generally against the employer with whom the disputes exist. They take the forms of stay away strike, sit-in, sit-down, pen-down, tools-down, or mouth-shut strikes, go slow, work-to-rule, token or protest strike, lightening or wildcat strike, picketing or boycott.
Stay away strike – In this strike, workmen stay away from the work place. They organise rallies, demonstrations etc.
Stay-in strike or sit-down strike – In this strike, workmen come to the place, they stay at the work place but they don’t work.
ADVERTISEMENTS:
Tools-down, pen-down or mouth-shut strike – In this strike, the strikers lay down their tools in case of factory workers, lay down their pens in case of office workers and shut their mouth in case of teachers.
Token or protest strike – It is a very short duration and is in the nature of signal for the danger ahead. In this strike the workers do not work for an hour or a day.
Lightening or wildcat strike – In this strike, the strikers strike the work without any prior notice or with a shortest notice.
Go slow – In this strike, the workers, intentionally reduce the speed of work.
Work to rule/work to designation – In this strike, the strikers undertake the work according to rules or job description.
Picketing – It is an act of posting pickets and implies machinery or patrolling of the workmen in front of the premises of the employer.
ADVERTISEMENTS:
Boycott – It aims at disrupting the normal functioning of the enterprise.
Gherao – It is a physical blockade of a target either by encirclement, intended to block the regress and ingress from and to a particular office, workshop etc.
Hunger strike – This type of strike is resorted to either by the leaders of the union or by some workers all at a time or in small batches for a limited period or up to the period of settlement of disputes.
Secondary strike – Secondary strikes are against a third party. These strikes are sympathetic strikes.
Other strikes – These strikes are in the form of general, particular, political and bandhs.
ADVERTISEMENTS:
Neither all strikes cannot be regarded as justified, nor are all strikes unjustified.
There are some requirements which must be fulfilled to make a strike justified:
i. It should be launched only for economic demands such as basic pay, dearness allowance, increment, leave and other fringe benefits which are primary objects of a trade union. But if a strike is launched for political or other reasons and not for any trade union objects, it would be unjustified.
ii. The demands of the workmen should be reasonable and legitimate so that there is a Prima facie justification for the demands, i.e., the demands should not be raised frivolously or for ulterior reasons. When demands are excessive and unreasonable or when the demands which were settled were tried to be relegated, then any strike to enforce the said demand cannot be said to be justified.
iii. When existing facilities are summarily withdrawn or when the provident fund is closed and ration benefit withdrawn strike would be justified.
iv. If there is any unfair labour practice on the part of management, strike is justified.
ADVERTISEMENTS:
v. When there is no response from the management in spite of referring a demand and issuing reminders, the strike is justified.
Courts order the trade unions to break the strikes, when the strikes are not justified.
According to Gandhiji, strikes could be permitted and would succeed if these conditions are fulfilled:
(a) The cause of strike must be just and only for redressal of genuine grievances strikes should be organised. He shuns workers resorting to strikes on unreasonable demands — demand which the capitalist cannot meet without impairing the product unit.
(b) There should be practical unanimity among the strikers.
(c) Strikes should be peaceful and non-violent — i.e., the worker should refrain from assaulting or abusing capitalists or their agents but also avoiding violence against the non-strikers. Even damaging capitalists’ property is considered by Gandhiji as violence.
(d) Workers should undertake strikes only after taking up alternative jobs for their living during the strike period.
(e) Workers should go on strike only after the capitalists failed to respond to moral appeals and only as the last resort after exhausting all other means of persuading the capitalists to conceded the just demands.
According to Laski, “A strike is unjust in that it is an appeal to force in a matter of disputed right; it is inhuman because of the misery it causes to the workers; it is wasteful of resources of capital and labour; it is wicked, because it stirs up hate; it is anti-social, in that it denies and disrupts the solidarity of the community.”
The following suggestions may prove fruitful to prevent strikes:
(1) It should adopt a well-defined, precise, clear and progressive personnel policies aiming at the maintenance of good industrial relations in the undertaking.
(2) It should ensure an effective administration and timely implementation of these policies.
(3) It should adopt fair and reasonable recruitment, promotion and wage policies and ensure their proper implementation.
(4) It should ensure an effective two-way system of communication. This will help the management to create a favourable atmosphere of goodwill, and faith in the organisation and understand the human climate threat; and enable the workers to appreciate the management policies in their right perspective so that no misunderstanding is created between them.
(5) It should provide just and humane conditions of work, along with suitable welfare activities for the benefit of the workers and develop close personal contacts with the employees at all levels.
(6) It shall evolve and adopt a suitable and speedy Grievance Procedure for redressal of the grievance of the workers.
(7) It should give recognition to a representative union and should have pragmatic approach towards union activities.
(8) It should encourage joint consultation at different levels and encourage collective bargaining for resolving the difference between them.
The Second National Commission on Labour, 1999 recommends that a strike should be called only by recognised negotiating agent and that too only after it had conducted a strike ballot amongst all workers of whom at least 51% support the strike.
2. Lock-Outs:
Ordinarily, “lock-out” means the action of an employer in temporarily closing down or shutting down his undertaking or refusing to provide his employees with work with the intention of forcing them either to accept demands made by him or to withdraw demands made by them on him.
But the definition, given by the Industrial Disputes Act, 1947, says:
“Lock-out means the closing of a place of business of employment or the suspension of work, or the refusal by an employer to continue to employ any number of persons employed by him.”
Thus:
i. Lock-out is the closure of industrial undertaking because of the existence of or apprehension of an industrial dispute, violence and loss to his properties.
ii. It is suspension of employment relationship, in so far as the employer refuses to give work to the workmen until they yield to his demand or withdraw their demands made on him; or because of closing of a place of employment the suspension of the work.
iii. Lock-out is an antithesis/counterpart of a strike. Just as the employees have a weapon in their hands to put pressure on the employer by going on strike so also, the employer has a weapon against the employees to lock-out his premises and not to allow the workers to come into work.
iv. Lock-out is used with some intention, i.e., to coerce or force the workmen to come to terms. Lock-out, thus, necessarily involves an overt act on the part of the employer involving an element of motive of ill-will. In the absence of this overt act, the temporary suspension of work would not amount to a lock-out and the workmen cannot claim wages for the period of closure.
But the following does not constitute “Lock-Out”:
(a) Prohibiting an individual employee is not lock-out.
(b) Termination of employment by retrenchment does not amount to lock-out.
(c) Termination of services of more than one person at the same time would not be lockout.
(d) Declaration of lock-out by an employer merely on the ground that the workmen have refrained from attending to work.”
The number increased from 10.56 million in 1995 to 18.86 million in 2005 and declined to 12.11 million in 2007.
The number was highest (27.05 million) in 2003. The number of man-days lost due to lockouts was much higher than the number of man-days lost due to strikes by employees. The reasons for this trend include non- settlement with regard to wages, allowances, bonus, indiscipline, violence, trade union rivalries, personnel matters, non-implementation of agreements and awards.
Recommendations of National Commission on Labour 1999:
The Second National Commission on Labour, 1999 recommends that an employer will not be allowed to declare a lockout except with the approval at the highest level management or in case of actual or grave apprehension of physical threat to the management or to the establishment. The appropriate government will have the authority to prohibit a strike or a lockout by a guard or special order and refer for adjudication the issue leading to the strike or lockout. The general provisions like giving of notice of not less than 14 days, not declaring strike or lockout over a dispute which is in conciliation or adjudication and so on will be incorporated in the law.
Recommendations of Second National Commission on Labour, 1999 on Closure:
The Commission felt that in the new circumstances of global competition, it may not be possible for some enterprises to continue and meet the economic consequences of competition. Therefore, the committee recommends that the provision pertaining to closure should be more applicable to all establishments to protect the interest of workers.
Types of Industrial Disputes – Concerning Interests and Rights
The points of contract between the employer and employees are numerous and the areas related to terms and conditions of employment vary, it is rather difficult to suggest all-inclusive types and causes of industrial disputes. Broadly speaking, industrial disputes may be classified into two major types.
These are as follows:
(1) Disputes concerning interests, and
(2) Disputes concerning rights.
(1) Disputes Concerning Interests:
The objectives of trade unions are very wide and diverse. These may be short-term or long-term in nature. Trade unions try to provide more and more benefits and privileges for their members such as a high level of income, improved terms and conditions of employment and physical working conditions, adequate social security and employee benefits and so on.
Once one demand is fulfilled, they raise other demands on a more or less continuing basis. These efforts of the unions are intended to create more and more rights for workers. So long as these demands are not met, they represent disputes concerning interests. As soon as the demands are met, certain rights accrue to the workers. Thus, disputes concerning interests are intended to create rights for the benefit of the members.
(2) Disputes Concerning Rights:
Workers are entitled to several benefits and facilities under labour laws, collective agreements, standing orders, adjudication awards and court decisions and even customarily. These benefits and facilities may pertain to wages, hours of work, leave, social security and fringe benefits and many others related to terms and conditions of employment. These represent rights for them. If the workers find that these rights have been infringed upon or denied to them, they raise disputes for ensuring smooth flow of the rights. Such disputes represent disputes concerning rights.
Types of Industrial Disputes – With Machinery for Prevention and Settlement of Disputes
“Industrial dispute” means any dispute or difference between employers and employers or between employers 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, of any person.
Type # 1. Strike:
The Industrial Dispute Act, 1947, has defined strike as “cessation of work by a body of persons” employed in an industry acting in combination, or a concerted refusal or a 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.
Various types of strikes are:
I. Sympathetic strike
II. General strike
III. Unofficial strike
IV. Sectional strike
V. Bumper strike
VI. Sit-down strike
VII. Slow-down strike
VIII. Lightning strike
IX. Hunger strike
Type # 2. Lockout:
The Industrial Dispute Act, 1947, has 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 any number of persons employed by him.”
Type # 3. Picketing:
Workers often carry/display signs, banners and placards (in connection with the dispute), stops others from entering the place of work and persuade others to join the strike. This is known as picketing.
Type # 4. Boycott:
Disrupting the normal functioning of enterprise through negative behaviours, strikes etc.
Machinery for Prevention and Settlement of Disputes:
(A) Voluntary Methods:
i. Collective Bargaining:
The basic purpose of collective bargaining is to arrive at an agreement on wages and other conditions of employment. Both employer and employee may start the process with different views but both of them try to reach a compromise, making some sacrifices. Sacrifice may be made from both the sides.
ii. Trade Unions:
Trade Unions help in preventing disputes. A strong Union can protect the employees’ interest relating to wages, leave, benefits, etc.
iii. Works Committees:
In the case of any industrial establishment in which one hundred or more workmen are employed or have been employed on any day in the preceding twelve months, the appropriate Government may by general or special order require the employer to constitute in the prescribed manner a Works Committee consisting of representatives of employers and workmen engaged in the establishment so however that the number of representatives of workmen on the Committee shall not be less than the number of representatives of the employer.
The representatives of the workmen shall be chosen in the prescribed manner from among the workmen engaged in the establishment and in consultation with their trade union, if any, registered under section 10 the Indian Trade Unions Act, 1926.
It shall be the duty of the Works Committee to promote measures for securing and preserving amity and good relations between the employer and workmen and, to that end, to comment upon matters of their common interest or concern and endeavor to compose any material difference of opinion in respect of such matters.
1. Joint Management Councils- Minimum members are six (6) and maximum are twelve (12).
2. Standing Orders the Industrial Employment (Standing Orders) Act of 1946 provides for the framing of standing orders in all industrial undertakings employing 100 or more workers.
3. Grievance Procedure- The process and guidelines to be followed by employees, management or the union when resolving differences or conflicts.
4. Code of Discipline- It consists of a set of self-imposed obligations voluntarily formulated by the central organisations of workers and employers.
(B) Government Machinery:
Labour Administration Machinery
(C) Statutory Measures:
i. Works Committee:
Industrial unit which employs 100 or more persons and are composed of equal numbers of employers’ and employees’ representatives.
ii. Conciliation Officers:
Enjoys the powers of a civil court. He/she is expected to give judgment within 14 days of the commencement of conciliation proceedings. The appropriate Government may, by notification in the Official Gazette, appoint such number of persons as it thinks fit, to be Conciliation Officers, charged with the duty of mediating in and promoting the settlement of industrial disputes.
A conciliation officer may be appointed for a specified area or for specified industries in a specified area or for one or more specified industries and either permanently or for a limited period
iii. Conciliation Board:
When conciliation officers fail to resolve a dispute, the government can appoint Board of Conciliation. It is not a permanent institution as a Conciliation Officer. The appropriate Government may as occasion arises by notification in the Official Gazette constitute a Board of Conciliation for promoting the settlement of an industrial dispute.
A Board shall consist of a chairman and two or four other members, as the appropriate Government thinks fit.
The chairman shall be an independent person and the other members shall be persons appointed in equal numbers to represent the parties to the dispute and any person appointed to represent a party shall be appointed on the recommendation of that party- Provided that, if any party fails to make a recommendation as aforesaid within the prescribed time, the appropriate Government shall appoint such persons as it thinks fit to represent that party.
iv. Court of Enquiry:
When conciliation fails, it is set up by government to investigate and resolve dispute within six months. The appropriate Government may as occasion arises by notification in the Official Gazette constitute a Court of Inquiry for inquiring into any matter appearing to be connected with or relevant to an industrial dispute.
A Court may consist of one independent person or of such number of independent persons as the appropriate Government may think fit and where a Court consists of two or more members, one of them shall be appointed as the chairman.
v. Arbitration:
The arbitrator or arbitrators shall investigate the dispute and submit to the appropriate Government the arbitration award signed by the arbitrator or all the arbitrators, as the case may be.
vi. Adjudication:
Compulsory arbitration is the ultimate remedy for the settlement of disputes in India:
i. Labour Courts
ii. Industrial Tribunals
iii. National Tribunals