| There are the different conflicts or strike between workers and the management. They manifest in the form of strikes, lockouts and other industrial actions. They can be individual disputes or collective disputes. It can be between the employers and workers, among the workers, between employers and the government. |
This types of disputes may be either right disputes – dispute over right or interest disputes – disputes due to conflict of interests. Labour disputes may result in loss of production, loss of profit, loss of market shares, low employee morale and finally the closure of the organization.
Causes of Disputes
There are many causes of labour disputes. They can be broadly divided into three categories.
- Economic causes: They can be:
- Compensation demands: They relate to wages, benefits and services. Inflation demands more rise in payment because the cost of items becomes expensive day by day. Employers want to pay the least and workers want to get the best in terms of wages, benefits and worker to get the best in terms of wages, benefits and welfare.
- Bonus: There may be dispute regarding providing no bonus or low bonus to the workers by the management.
- Working conditions: The working environment may not be acceptable. The working hours may be a problem too.
- Condition of employment: The disputes may arise due to the terms and condition of employment.
- Industrial sickness: Economic recession, defective taxation policies and changing competitive forces make industries sick. This may require lay-off or downsizing of organizations.
- Managerial Causes: They are usually the unfair treatment of the union members or non-recognition of union by the management. They are manifested by;
- Non-reorganization to labour union: Employers usually hate recognizing the labour union, this are the root cause of disputes.
- Lack of consultation in recruitment and selection process: Employers do not consult labour unions for recruitment and selection process, transfer, promotion and development of employees; these become the causes of disputes.
- Job-security: Employers like to hire employees at their own. Workers see the practice as threatening to their job.
- Disciplinary actions: Disciplinary actions are related with attendance, job behavior, dishonesty and outside activities of workers are the major causes of disputes.
- Lack of proper and effective communication: The employers usually try to avoid talking with unions or workers about solving any situation and this lack of communication become a problem.
- Political Causes: They are the result of political interference, union rivalry, collective bargaining and multiplicity of labour laws. Most trade unions are affiliated with some political parties. The politicization allows the interference of politicians to the labour affairs and creates a problem for smooth relations with the management. Politicization also divides the trade unions on ideological lines. Unions break and disintegrate. Political pressures influence collective bargaining, which makes settlement difficult and complex and agreement is not reached. The interpretations of labour regulations may be a problem.
Settlement of Labour Disputes
It is better that the disputes are settled as early as possible. The methods available are;
- Collective Bargaining: This refers to the negotiation, settlement and administration of a time-bound agreement between labour and management to settle disputes. Representatives of labour and management sit together and negotiate to settle the disputes. It is a “Peace treaty.” This is the most widely used method for the settlement of labour disputes. It benefits both labour and employer. It is democratic phenomenon. However, problems arise when agreement are not reached. Interpretations of the agreement also cause problems.
- Grievance Handling: This is a complaint filed and is perception of a worker’s unfair treatment on the job. This may be due to interpretation difference relating to employment contracts or collective bargaining agreement or unfair management practices; or personality trait of workers; or antagonistic organization culture. Grievance handling is a challenging stuff and facilitates upward communication. They are usually fame consuming and costly.
- Conciliation: It is a process whereby a third party provides assistance in setting disputes. The settlement of the disputes depends on the agreement of the parties involved. The third party acts as neutral and does not impose their own decisions but beings the two parties closer.
- Mediation: It is a process whereby the third parties are more active and submits proposals for dispute settlement. The party involved in dispute is free to accept or reject such proposals.
- Adjudication: It is a process of mandatory settlement of a dispute by ordinary courts, labour court or a tribunal. This method only deals with disputes. The verdict of adjudication is binding on both the parties.
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