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Industrial conflicts essentially refer to differences or disputes between employers and employees. Disputes arise because of wage demands, union rivalry, political interference, unfair labor practices, labor laws, and others.
What are the main reasons for industrial disputes?
Industrial conflict may a passive and hidden which can lead to the withdrawal of effort resulting in lower productivity.
What are the Reasons for the Occurrence of Industrial Conflicts?
The main reasons are below:
It maintains that both labor unions and employers attempt to maximize their economic gains.
It focuses on the fact that workmen want to protect the conditions of their work in the long run rather than short term wage gains.
It says that the working classes suffer from systematic exploitation at the hands of capitalists. It creates conflicts.
It emphasizes the conflict between unions and management over the recognition of unions and collective bargaining, jurisdictional disputes among unions, internal leadership rivalries, and the influence of communism on unions.
This school assumes that the basic reason for the industrial dispute is the breakdown of primary groups among workers and lack of communication and understanding between management and workers.
35 to 40 percent of the industrial disputes during the last 20 years have been due to issues related to wages, allowances, and bonuses.
7. Increase in Cost of Living
Most of the disputes arise due to the increase in the cost of living of employees.
Unless the wages are linked with the cost of a living index number, workers demonstrate their dissatisfaction and it results in a conflict.
Related: How to boosting employee morale in the workplace.
8. Share in the Profit
When workers are not given a share in the profit, like a bonus, it leads to discontent among employees, thereby leading to industrial conflicts.
9. Replacement of Labour by Machines
When manual labor is replaced by machines and more so by automatic machines, it leads to industrial disputes.
Similarly, a scheme of rationalization, nationalization, or denationalization also results in industrial disputes.
10. Non-Fulfillment of Assurance
Nonfulfilment of assurance given b the employers, including lack of promotion, frequent transfer, long working hours, bad working conditions, etc. leads to industrial disputes.
Sometimes, political factors also give rise to industrial disputes, especially when employees from different unions with the support of different political parties.
Related: Top Politicals Factors that Affecting Business Activities.
12. Weak Trade Unionism
The weakness of the trade union movement has enabled employers to deny certain basic demands of workers.
This led to resentment among employees who resorted to direct methods instead of collective bargaining which will be successful only in the case of a strong trade union.
13. Managements Attitude to Labour
Managements generally are not willing to talk over any dispute with their employees or their representatives or refer it to arbitration even when trade unions want them to do so.
What are the different types of industrial disputes?
A management’s unwillingness to recognize a particular trade union and the dilatory tactics to which it resorts while verifying the representative character of any trade union have been very fruitful sources of industrial strife.
14. Change in the Attitude and Staus of Workers
The attitude and temperament of industrial workers have changed because of their education, the growth of public opinion, and the legislation enacted for their benefit.
They are, therefore, very conscious of their rights, and will not put up with any injustice or wrong done to them.