CHAPTER III CAUSES OF INDUSTRIAL DISPUTES 3.1 Introduction 3.2 Industrial Disputes-Causes 3.3 Wages and Bonus 3.4 Personnel and Retrenchment 3.5 Leave and Hours of Work 3.6 Violence and Indiscipline 3.7 Others 3.8 Incidence of Disputes through Economic and Non-economic CI-uses 3.9 Issues of Disputes Raised by Trade Unions 3.10 A Comparative Perception- Causes of Industrial Disputes 3.11 Results and Discussion 3.12 Ranking by the Workers 3.13 Ranking by the Employers 3.14 Ranking by the Trade Union Leaders 3.15 Ranking by the Labour Officials 3.16 Ranking by All Categories 3.17 Causes of Industrial Disputes- Inter Group Perception
32
Embed
CHAPTER III CAUSES OF INDUSTRIAL DISPUTESshodhganga.inflibnet.ac.in/bitstream/10603/65643/9/09_chapter 3.pdf · CHAPTER III CAUSES OF INDUSTRIAL DISPUTES 3.1 Introduction 3.2 Industrial
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
CHAPTER III
CAUSES OF INDUSTRIAL DISPUTES
3.1 Introduction
3.2 Industrial Disputes-Causes
3.3 Wages and Bonus
3.4 Personnel and Retrenchment
3.5 Leave and Hours of Work
3.6 Violence and Indiscipline
3.7 Others
3.8 Incidence of Disputes throughEconomic and Non-economic CI-uses
3.9 Issues of Disputes Raisedby Trade Unions
3.10 A Comparative Perception-Causes of Industrial Disputes
3.11 Results and Discussion
3.12 Ranking by the Workers
3.13 Ranking by the Employers
3.14 Ranking by the Trade Union Leaders
3.15 Ranking by the Labour Officials
3.16 Ranking by All Categories
3.17 Causes of Industrial Disputes-Inter Group Perception
75
3.1 INTRODUCTION
Disputes between labour and Management is a universal
phenomenon in developed and developing countries. There are
various causes for industrial disputes. There is no one
single cause. Disputes arise out of terms and conditions
relating to employment, wages, bonus, rising cost of living
and so on. As early as in 1931, the Royal Commission on
Labour observed: "Although workers may have been influenced
qby persons with nationalist, communist or commercial ends to
serve, we believe that there has rarely been a strike of any
importance which has not been due entirely or largely to1
economic reasons." Low wages or wage-cuts in spite of
rising prices and intolerable conditions of work have
provoked a number of strikes in the country. Un-deserved
punishments, mass discharges, assaults, abuses and
misbehaviour have also led to several strikes in India,
although instances have been found when workers had stopped
work on petty quarrels or humiliations, as an excuse for
respite from an unbearable situation. Other important causes
are the absence of adequate machinery for collective
1. C.B. Namori.a & S. Mamoria, D ynamic of Industrial Relationsin India, Himalaya Publishing House,New Delhi, 1991, p.297.
76
bargaining and the absence of close contact and understanding
between employers and workers. All these give rise to
industrial disputes. This chapter deals with the various
causes of disputes in the Cotton Textile Industry in the
study area.
3.2 INDUSTRIAL DISPUTES-CAUSES
Though there are many causes, industrial disputes can be
classified under six major heads, according to Indian Labour
Statistics. 1. Wages, 2. BonUs, 3. Personnel and
retrenchment, 4. Leave and hours of work, 5. Violence and
Indiscipline and 6. Others.
3.3 WAGES AND BONUS
The most important cause for industrial dispute is the
demand for higher wages. The workers and union leaders feel
that the money-wage paid to the workers is not enough to
ensure a decent living. Therefore they demand more wages to
meet the increase in the cost of living.
The importance of a need-based minimum--wage (NBMW) was
discussed and approved in 1957 by all the major industrial
relation participants, including the Government. The present
PA
wage levels are well below the agreed minimum. The
Government wage-fixing machinery as well as private employers2
now regard the NBMW as largely irrelevant. As the
Government and employers do not accept the NBMW and only
offer lower wages, the workers' demand for higher wages
becomes relevant.
Also in recent years, the real wage in the Indian
industry has declined or stagnated making employees and
Unions demand more. The employers in turn have resisted the
employees' demand because they want "to keep wages down in
order to increase the competitiveness of their products in3
international and domestic markets."
Although India has a well-established system for linking
pay increases to the cost of living and the system of
dearness allowance, the effect of inflation is neutralised at
below 100 per cent. So in order to get higher wages at the
time of inflation, the workers resort to strikes and other
methods, if their demands fail.
2. S. Venkata Ratnam, "Collective Bargaining Status andProspectus in India", Indian Industrial Relations,(National Instute of Personal Management, India, 1981),pp. 137-142.
3. V. Venkatachalam, and R. Singh, The Political andEconomic and Labour Climate in India, (The Wharton SchoolIndustrial Research Unit, University of Pennsylvania,1982) 1 p.61 and pp.57-62.
78
The demand for bonus or for increase in bonus is another
major reason for labour unrest. When an industry makes
profit, the workers demand a greater share of the profit.
The issue of awarding bonus to workers must be viewed as
related to the wage scene, since the annual bonus could
provide a vehicle for maintaining or improving the real wage.
The 1965 Payment of Bonus Act regulates the awarding of
bonus-incomes in India. This legislation was amended several
times over the years. It introduced the notion of a
mandatory guaranteed minimum of bonus at 8.33 per cent in
1981. A ceiling of 20 per cent is also included in the law.
Now in the year 1994 bonus is fixed as ranging from 16.50 per
cent to 35 per cent including ex-gratia, while the quantum of
bonus was fixed as per the provision of the Bonus Act with a4
minimum of 8.33 per cent and a maximum of 20 per cent.
A major goal in providing a statutory bonus payment was
to eliminate or reduce conflicts that grow out of the failure
by Union and employers to reach agreement on the bonus issue.
However the bonus conflicts have not been totally eliminated.
Whenever settlement could not be arrived on the quantum of
bonus, the workers resort to strikes.
Table 3.1 shows the total number of disputes based on
Wages and Bonus.
4. The Hindu, Tuesday, December 14, 1993.
79
TABLE 3.1
Disputes Due to Wages and Bonus
Disputes due to Disputes due to Bonus an
Total Wage Bonus Wages
Year Number of ----------------------------------- PercentagDisputes Total Percentage Total Percentage to total
to total to total
1982 240 37 15.42 68 28.33 43.75
1983 334 45 13.47 66 19.76 33.23
1984 483 50 10.35 62 12.84 23.19
1985 293 29 9.90 58 19.80 29.70
1986 434 26 5.99 70 16.13 22.12
1987 393 16 4.07 51 12.98 17.05
1988 258 19 7.36 36 13.95 21.31
1989 249 34 13.65 39 15.66 29.31
1990 256 61 23.83 53 20.70 44.53
1991 183 35 19.13 27 14.75 33.88
Source: Compiled from the Complaint Register in the Office of tAssistant Commissioner of Labour, (ConciliatioTextiles), Madurai.
80
Disputes relating to wages and bonus formed 43.75 per
cent in 1982 and 33.88 per cent in 1991. Except in the last
two years bonus accounts for more disputes than wages.
The above findings confirm the findings of earlier
studies like,
1. Mrs.P. Chakraborthy, Strikes and Morale in India
Her Principal States, Calcutta, 1969, pp.141-148.
2. S. Nagaraju, Industrial Relation System in India,
Chugh Publications, Allahabad, 1981, pp.184-188.
3. Dayal Sahah, Industrial Relations System in India-
Study of vital issue, Sterling Publishers (F) Ltd., New
Delhi, 1980, pp.208-209.
4. T. Sahapathy, Industrial Disputes in post-war years
with reference to Madras •State, An unpublished Ph.D., Thesis,
*The first priority was given the score of four and the second, third andfourth the scores of three, two and one respectively. Ranking was workedout on the basis of total score. (Figures In parenthesis indicate thepercentage of each item to the total score of column 6).
95
The four important factors as viewed by the workers,
according to their ranks are 1) Retrenchment 2) Wages 3)
Bonus and 4) Allowances. 5th rank is given to personnel.
Leave and hours-of ...-work and violence and indiscipline are not
perceived to be the causes of industrial disputes.
3.13 RANKING BY THE EMPLOYERS
Table 3.8 shows the ranks assigned by employers to
causes of industrial disputes.
96
TABLE 3.8Ranking by Management of the Causes of Industrial Disputes
Frequency of PriorityCauses ---------------------------- ------------Total Rank
First Second Third Fourth Score*Priority Priority Priority Priority
*The first priority was given the score of four and the second, third and fourtithe scores of three, two and one respectively. Ranking was worked out on thibasis of total score. (Figures in parenthesis indicate the percentage of eaciitem to the total score of column 6).
97
The Management perceives Bonus, Wages, Allowances and
Retrenchment as four major causes of industrial disputes.
They consider Non-implementation of awards and agreement,
Inferior treatment, Violence and indiscipline and Leave and
hours-of-work as the least important causes of industrial
disputes.
3.14 RANKING BY THE TRADE UNION LEADERS
Table 3.9 shows the ranks assigned by the Trade Union
Leaders to causes of industrial diputes.
98
TABLE 3.9Ranking by the Trade Union Leaders of the Causes of Industrial Disputes
Frequency of PriorityCauses ------------------------------------------
9. Non-implementation - 1 1 3 8 8of Labour Laws(1.14)
10. Inferior treatment - - 1 3 5 10(0.71)
11. Inadequate social - - 2 2 6 9security measures(0.86)
12. Violence and - -2 2 12Indiscipline(0.29)
*The first priority was given the score of four and the second, third and fourththe scores of three, two and one respectively. Ranking was worked out on thebasis of total score. (Figures in parenthesis indicate the percentage of eachitem to the total score of column 6).
The four important factors as perceived by the Trade
Union Leaders are Retrenchment, Boiitis, Wages and Allowances.
It is similar to the views of workers. Violence and
indiscipline and Leave and hours-of ..-work are considered as
the least important causes of industrial disputes.
315 RANKING BY THE LABOUR OFFICIALS
Table 3.10 exhibits the ranks assigned by the labour
officials to causes of industrial disputes.
100
TABLE 3.10
Ranking by the Labour Officials of the CdLISE?S of Industrial Disputes
Frequency of PriorityCauses ---.--••• -----Total Rank
First Second Third Fourth Score*Priority Priority Priority Priority
1. Wages 5 2 - - 26 1(37.14)
2. Allowances - 2 2 2 12 3(17.14)
3. Bonus 2 3 - - 17 2(24.29)
4. Retrenchment - - - -- 0
5. Personnel -
6. Leave and Hours - - - -- 0of-work
7. Non-implementation - - -- 0of awards and
agreement8. Unfair Labour - -
- 0Practices
9. Non-implementation - - -- 0of Labour Laws
10. Inferior treatment - - :3 3 9 4(12.96)
11. Inadequate social - - 2 2 6 5security measures(8.58)
12. Violence and - - -- 0Indiscipline
*The first priority was given the score of four and the second, third and fourththe scores of three, two and one respectively. Ranking was worked out on thebasis of total score. (Figures in parenthesis indicate the percentage of eachitem to the total score of column 6).
1031
The labour officials consider Wages, Bonus, Allowance,
and Inferior treatment as the four important causes of
idustrial disputes.
3.16 RANKING BY ALL CATEGORIES
Table 3.11 exhibits the ranks assigned by all the
categories to various causes of Industrial disputes.
102
TABLE 3.11
Ranking by the Respondents of All Categories
Percentage obtained In the case ofCauses ----------------------------------------------
Total RankWorkers Manage Trade Labour Percentagement Union Officials
agreement8. Unfair Labour 1.51 4.79 4.43 - 10.73 8Practices9. Non-implementation 0.45 2.29 1.14 -of Labour Laws 3.88 1010. Inferior treatment 0.07 0.42 0.71 12.86 14.06 611. Inadequate social
security measures 0.84 1.25 0.86 8.58 11.53 712. Violence and
Indiscipline 0.03 0.63 0.29 - 0.95 12
*The Table aims at standardising the priorities of all invetervlewees,percefltage
obtained for each reason in all four categories i.e.,Workers, Management, TradeUnion Leaders, and Labour Officials were added and totals in all respect of alltwelve causes were ranked.
103
Table 3.11 reveals that "Wages", "Bonus", "Retrenhment:",
"Allowances", "Personnel" and "Inferior Treatment", got the
"first", "Second". "third", "fourth", "fifth" and "sixth"
ranks respectively. The other causes "Inadequate social
security measures", "unfair labour Practices", "Non-
implementation of awards and agreement", "Non-implementation
of labour Laws", "Leave and hours-of-work" and "Violence and
indiscipline" got lower rankings.
3.17 CAUSES OF INDUSTRIAL DISPUTES - INTER-GROUP PERCEPTION
The rank correlation co-efficient of causes of
industrial disputes between workers and Trade Union Leaders,
workers and Management, Management and Trade Union Leaders
are calculated and they are presented in Table 3.12.
TABLE 3.12
Causes of Industrial. Disputes - Inter-Group Perception
Inter group
Rank Correlation . 'R'Co-efficient
Between workers and Trade Union Leaders 0.972*
Between workers and Management 0.755*
Between Management and Trade UnionLeaders 0.825*
*Significant beyond 0.05 level.
104
The value of correlation co-efficient (R = 0.972)
between the workers and Trade Union Leaders shows significant
and positive correspondence as to the causes of industrial
disputes. The degree of importance of certain items, however
varied, both Union and workers gave first preferece to
Retrenchment. Workers ranked 'Wages' as the second important
factor while the Union Leaders considered it third. They
considered Bonus the second important: factor.
CI
The value of correlation co-efficient (R = 0.755)
between the responses of workers and Management shows a
significant and positive relationship. Both the parties
perceive Wages, Allowances, Bonus and Retrenchment as
constituting some of the important causes of industrial
disputes.
The value of correlation co-efficient (R = 0.825) beween
the replies of Trade Union Leaders and Management also
indicates a significant and po:dtIve correspondence. The
Management attached more importance to bonus (1st rank),
whereas Trade Union Leaders attached more importance to
Retrenchment, as is evident from the rank assigned.
105
The results of this study reflect the fact that the
Retrenchment and economic factors are given supreme
importance by workers, Unions and Management. Other
important factors are Personnel, Non-implementation of awards
and agreements, Unfair laabour practices and Inadequate
social security measures. Leave and hours of work, Violence
and Indiscipline, Inferior treatment are assigned relatively
much less importance. Thus this analysis reveals the
difference and similarities in perception of labour disputes
among Management, Unions, worker; and Labour Officials.