Causes and Consequences of Industrial Disputes

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What is an Industrial Dispute?

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:

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.

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

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

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

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

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

Consequences of Industrial Conflicts:

1. Unrest and unnecessary tensions engulf the hearts and minds of all the people involved - labourers and senior management.

2. 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.

3. Industrial losses may cause economic depression because many industries are interlinked. A problem in one industry may drastically affect another industry.

4. 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.

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

Additional Readings:

1. Palekar Tribunal
2. Functions and Concepts of Industrial Management
3. Maladjusted Worker
4. Contract Work
5. Industrial Bureaucracy
6. Elements of an Organization
7. Scope, Aims, Objectives of Personnel Management
8. Recruitment and Major Recruitment Channels
9. Obstacles of Indian Trade Unions
10. Impact of Industrialization on Social Life
11. Automation and Steps Involved
12. Advantages and Disadvantages of Broker Recruitment
13. Causes and Consequences of Industrial Disputes

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