Resolving Disputes- Dealing with Workplace issues

1. Introduction
2. Nature of Disputes
3. Causes of Disputes
4. Dispute Manifestation
5. Settlement of Disputes
6. Settlement of Disputes

Introduction

The definition of dispute is too broad and it even includes conflicts among employees. The situation of conflicts is very common in any corporate office. Such scenarios are not new phenomenon but the role of management and employees are undergoing changes.

The conflicts/ disputes scenarios are more common in manufacturing firm than in new economy firms like information technology, BPO and software. These new economy firms are almost free from labor troubles. Industrial disputes manifest in the form of violence in the shop floors, strikes, bundhs and lockouts. The harmful results of above mentioned situations are loss of production, loss of market, loss pf profit and even closure of the plant as stated in the opening vignette. Other common results are often performance problems, violations of company rules or the need for discipline or termination.

This increase in the level and effect of workplace conflict illustrates the importance of dispute resolution processes to resolve problems, before it takes the form of violence.

Nature of Disputes

As per Industrial Disputes Act, 1947, industrial disputes mean any dispute or difference between employers and employees, or between employers and workmen ,or between workmen and workmen, which is connected with the employment or non employment or terms of employment or with the conditions of labor of any person.

In other words, disputes can be collective disputes comprising of disputes between employees and employers, an individual conflict with management or even individual bringing problems to work resulting in creating problem at work.

Causes of Disputes

The causes of disputes can be broadly classified into economic and non economic causes. It can include wages issue, union conflicts, political interference, unfair labor practices, multiplicity of labor laws, contract workers, technology, economic slowdown etc. The following graph shows the statistics of man days lost due lockout and strikes(industrial disputes) in India.

Wages Demands

Due to inflation and high cost of living , the disputes related to wages always prevail. High inflation results in high cost of living bringing the wages demand disputes. Rise in cost of living forces employee to demand more wages and employers are not willing to pay more thereby resulting in industrial disputes.

Other factors similar to wages are bonus, incentives, and other allowances. All of these, wages have been a major issue of contention that leads to disputes. The percentage distribution of disputes by causes is as follows:

 Temp and Contract Labor

Almost every company employs contract employees. It is beneficial for employers to hire contract employees as they have to pay less and also there is absence of other statutory benefits for contract employees. There is huge difference in wages of permanent employees' and contract employees' wages. The working hours for contract employees are usually more than that of permanent employees. So, there is wages disparities that exist between a regular employee and his counterpart who is a temp or the one on contract. Wages disparities, step motherly treatment and social disconnect become reason of disputes.

Political Interference

Most of the Union trades are connected to political parties in India. In most of case, it has been found that political parties use trade for their own benefits rather than welfare of the workers. Sometimes political interference trade union mislead the worker force raising the scenario of disputes. Such a situation usually takes the form of strike and lockouts.  Usually political party creates the scenarios of strikes, gheraos and bandhs to demonstrate its political strength. 

Technology

In one way technology has created better working opportunities, reduced the manual work and increased the production. But at the same time, with fast change of technology has created fear of new technology, skill gap and resistance to change. These are some points related to this context. Such fear are mainly present in experience employee. Let take an example of well know automobile company Maruti. The automobile major has advanced technology that can produce one car every 48 seconds.But the response of workers toward technology change was negative. 

Trade Unions

A trade union ,which is formed too maintain peace between employers and employees , is one of the reason of dispute. Sometimes it creates the communication gap between management and workers. Rumors spread out by trade union, inter-trade union rivalry etc are the other cause of dispute between management and employers.

Unfair Labor Practices

Unfair practices forced by employers finally results in disputes. Unequal treatment of workers, lack of proper facilities, ignoring the basic demands and forcing to increase the working hours etc. are some of the unfair practices used by employers to avoid the demand of workers. The employers basically adopt different unfair means to reduce the cost of product. These factors brings rage among workers thereby resulting in dispute between management and workers. 

Multiplicity of Labor laws 

The complex nature of the labors law creates confusions, industrial strife, loss of production and exploitation of labor by management and of management by labors. 

Disputes Manifestation

Disputes can prevail among workers for long time, if not resolved. Such situation results in dissatisfaction among employees/workers. The outcomes can be theft, sabotage, absenteeism, withdrawal of discretionary, collective absenteeism, walkouts, grievance, strike, sit-in, go-slow etc. 

Settlement of disputes 

Dispute results huge loss to organisation. It needs to be resolved as soon as possible.  Settlement of disputes requires careful and quick approach. Various methods are available for settlement of disputes. Some of them are as follows:

• Collective bargaining 
• Code of discipline
• Grievance
• Arbitration
• Conciliation
• Adjudication
• Consultative machinery

Collective Bargaining

Collective bargaining is negotiation between employer and group of employees. In general Indian scenario, collective bargaining is the negotiation between management and trade union. The result of collective bargaining procedure is called the collective bargaining agreement. The agreement deal with the relationship between employer and employees which is adopted to resolve the dispute.

The collective bargaining process comprises of : Prepare, Discuss, Process, Bargain and Settlement. Following diagram depicts the process of collective bargaining. 

Code of discipline

To maintain healthy relationship between management and workers, a code of discipline has been created and is implemented in organisation. Code of discipline is one of the best way to settle disputes.It can  be also considered as preventive measures to avoid disputes within organisations. Code of discipline is applied to both public and private sector enterprises. It specifies various obligations for both the management and the workers.

The code is based on the following principles:

• There should be no strike or lockout without prior notice.
• No unilateral action should be taken in connection with any industrial matter.
• Employees should follow go slow tactics
• No deliberate damage should be created to a plant or property
• Acts of violations, intimidation and coercion should not be resorted
• The existing machinery for settlement of disputes should be utilized
• Actions that disturb cordial relationship should be avoided.

Grievance

Grievance occurs when law is violated or ignored by the management. In such a scenario worker can go for settlement through a set of procedure. Set of procedure id predefined. 

Arbitration

In arbitration , a third party studies the dispute case and provides the recommendation. The management and workers follow the recommendations for settlement.

Sources:

http://www.scribd.com/doc/23483788/Industrial-Disputes

http://industrialrelations.naukrihub.com/process.html