Industrial Disputes in HRM- Forms, Causes and its settlement

Industrial Disputes in HRM- Forms, Causes and its Settlement

I am sure you have heard so many times from your parents or relatives that Workers have done the strikes in the organization to meet their demands. If You have heard, then it is good. If you didn’t, then you don’t need to worry. So, Strikes or Lockout is one of the forms of Industrial Disputes in HRM.

Before Proceed, Let’s firstly know the Meaning of Industrial Disputes in HRM. Relations between Employers and Employees don’t go to the same all the time because of no. of reasons.

That is because of Divergent Views, Opposite Stands, Contrastic Demand characterize labour management relations. Employees want more jobs, management wants to reduce staff, raise productivity and safe on all fronts which become the cause of Industrial Disputes.

Definition of Industrial Disputes

According to Industrial Dispute Act, 1947 which defines Industrial Disputes “as any dispute between employees and employees, employees and employers, employer and employer due to the reasons of Employment and Non-Employment or with the work conditions of any person”

Thus, this Definition of Industrial Disputes characterized the following factors-

  • There should be a dispute or difference.
  • The dispute should be between Employee-Employee, Employer-Employer and Employee-Employer.
  • The Dispute must pertain to some work-related issues.
  • Disputes between one or two workmen is not an Industrial Dispute until it must be raised by a group or class of workmen.

Forms of Industrial Disputes

  • Strike- Strike means to stop the work by all the workers to accept their demands in the organization. It is mostly done by the Trade Unions which fights for workers rights. Workers put pressure on the Employers by threatening them to not start the work until they fulfil their demand. It is one of the most common forms of Industrial Disputes in HRM in every organization.

The Strike is generally of five types-

(i) Economic Strike- This Strike is done by the Workers to fulfil their Economic Demands like the raise in their wages, salary or bonus.

(ii) Sympathetic Strike-  This Strike is done by the Employees to express their sympathy regarding the injustice being done to any member of the union.

(iii) General Strike- This is the type of strike which is done by all the trade union members in the industry or region. It is done to accept the demands of all the workers in an industry or region.

(iv) Sit Down Strike- In this Strike to accept their Demands, workers don’t leave the workplace but stop the work by sitting there. It is also known as the Pen Down Strike.

(v) Slow Down Strike- In this type of Strike, workers don’t stop their work. But they slow their speed of doing work which decreases the output also. It is another way to put pressure on employers by decreasing their work performance.

  • Lockout- Lockout is done by the Employers to put the pressure on the Workers by stopping the Work.  The Reason to do this so that Workers will start work according to the Terms and Conditions of the Employers.

According to the Industrial Disputes Act of 1947, “Lockout means to close the place of employment or stop the work by the Employers to continue the workers to employ any number of persons employed by him.” This Cause of Industrial Disputes in HRM has seen in so many Big Organizations.

  • Gherao- This is a Hindi word which means to surround. It is the collective action of workers under which the Members of the Organization are not allowed to leave the organization.

To stop the Members, Workers make a Human Barricade which is like a human ring. In the Gherao, Workers put pressure on the Employers to accept their Demands otherwise they will not go outside the organization. But it is accepted as an immoral thing and the Decisions taken under pressure by employers will not be taken true.

  • Picketing- When Employers don’t take any action from the Demand of the Workers, then all the workers collectively sit at the front of the firm gates. It is also known as “Dharna”. It is done to show the General Public what injustice is happening in the organization with the workers.

So, this is all about the Forms of Industrial Disputes in HRM. Now, let’s know What are the causes of Industrial Disputes.

Also ReadHuman Resource Management Complete Lecture Notes for BBA, B.COM and MBA

Causes of Industrial Disputes in HRM

Causes of Industrial Disputes in HRM

  • Economic Issues- This is the most common cause of Industrial Disputes. The Economic Issues include wages, bonus and other allowances. Workers and Employees has been raising their voice for raising the wages, salaries, bonus so that they can improve their standard of living.

  • Violence and Indiscipline- So Many times the disputes happened between the Workers and Employers because of entering into political issues, violence and indiscipline with the workers. So, this is also the Big Cause of Industrial Disputes in India.

  • Sympathetic Issues- When there is any injustice happened with the worker, then the members of the union do the sympathetic strike to show sympathy towards that worker.

  • Administrative Related Causes- These types of causes include Underserved Punishment, Verbal Abusement etc.

  • Miscellaneous Causes- Miscellaneous Causes includes- Hours and Day of Work, Nationalization causes Psychological causes, Institutional Causes etc.

Settlement Preventive Machinery

Industrial Disputes can be settled by their Three preventive types of Machinery which includes-

(i) Voluntary Methods

(ii) Govt. Machinery

(iii) Statuary Methods

(i) Voluntary Methods- It comprises of the following types-

  • Standing Orders- It is a type of rulebook relates to all the Disputes or matters in the organization. If there is any Industrial Dispute occurs, then according to the rules they find the solutions. The Objective of Standing Orders is to know the kind of disputes and what are the consequences of those disputes.

  • Collective Bargaining- This is another type of settlement of Industrial Disputes in HRM. In this type, Group of Employees do the negotiations with their employer to come to an agreement that will control the work conditions. It is gradually represented by a Trade Union Member who represent the employees.

  • Code or Discipline- It is done to maintain peace in the organization by improving the Employee-Employer Relationships. In this by mutually agreed procedure, the companies do the settlement of Industrial Disputes in Human Resource Management.

(ii) Govt. Machinery- This is the govt. Settlement Method of Industrial Disputes. There is a Labour Administrative Machinery which solves the disputes on State and Central Level.

(iii) Statutory Measures- According to the Industrial Dispute Act 1947, there are three types of Settlements of Industrial Disputes that are-

  • Conciliation- It is the process by which the representatives of the workers and employers are brought before the Third Party or group of persons with a view to persuade them to come to a mutually satisfying agreement.

  • ArbitrationWhen the Conciliation officer fails to settle the disputes, the conciliation officer gives the dispute case to the other Third Party called the Arbitrator who is appointed by the parties themselves. The Arbitrator listens to the viewpoints of both the parties and delivers the judgement on the dispute.

  • Adjudication- Adjudication or Compulsory Arbitration is the ultimate remedy for the settlements of Industrial Disputes in India. Adjudication consists of settling disputes through the Intervention of Third Party appointed by the govt.

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