Causes of industrial unrest in India can be classified mainly under four heads they are - Industrial Relations Management

  1. Financial Aspects
    1. Demand for increase of wages, salaries and other perks. workers demand goes on increasing with the increase in cost of living
    2. Demand for more perks, and fringe benefits. Issue of bonus also has become a contentious one, even though Bonus Act has come fixing minimum rate payable as 81/3% of their total salary in spite of profit or loss incurred by the industry.
    3. Incentives festivals allowances, concessions etc requires a hike every now and then, workers compare these benefits with other industries and demand them –without comparing the capacity of the industry where they are working.
  2. Non financial aspects
    1. Working hours, rest hours, traveling hours are source of disputes. If houses are provided some section of workers want to include travel time also as working hours.
    2. Introduction of machines, computers modernization, and automation – In effect any act of management which may result in economy in man power is resisted
    3. More facilities like free meals free group travel etc is sought every now and then.
  3. Administrators Causes
    1. Non implementation of agreements awards and other local settlements – with full sprit
    2. Stifling with recognition of labour unions though registered,
    3. Attempt to weaken existing trade unions and trying to foist fake unions
    4. Unhealthy working conditions
    5. Lack of skill on the part of leaders supervisors
    6. Disproportionate works loads, favoritism
    7. Victimization, nepotism attitude of management in recruitment, promotion, transfer etc
    8. Instead of re deployment or skill improvement easier way of retrenchment forced voluntary retirement schemes (C.R.S) are adopted.
  4. Government and political pressures
    1. Industrial unions affiliating with political unions which are in power, resulting in frequent shift of loyalty and resultant unrest
    2. Politician influencing workers group closes examples is the Nalco – taken over by Sterlite, the state government supported (propped up) strike at Chhattisgarh state against Nalco, for months together resulting in total stoppage of the industry for some time.
    3. Some time unions, workers strike against mergers, acquisition, taken over, disinvestments policies, of government and private sectors.
  5. Other causes of strained relations.
    1. Refusal to have workers participation in the running of the industry.
    2. Non adherence to laid out ‘standing orders’ grievances procedures
    3. Refusal to have free frank, and transparent collective bargaining.
    4. Sympathetic strike – a show of readership to workers of neighboring industries, and conducting a token strike when they are in full strike. This may cause internal bitterness.

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Industrial Relations Management Topics