Industrial Disputes: Causes, Effect and Prevention

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Khan Sarfaraz Ali

Industrial Disputes may be said to be disagreement or controversy between management and workers with respect to
wages, working conditions, union recognition or other employment matters. When issues of conflict are submitted to
the management for negotiations, they take the form of industrial disputes.
According to Industrial Relations Ordinance 1969, “Industrial Dispute means any dispute or difference
between employers or between employers and workmen or between workmen and workmen which is connected
with the employment or the conditions of work of any person.”
Causes of Industrial Disputes
Among the most common cause of industrial disputes few are mention worthy. They are:
a. Economic cause: wage structure, methods of Job evaluation, deductions, incentives, fringe
benefits and terms of employment.
b. Institutional cause: subjects of collective bargaining, union security, unfair practice, recognition
of the union, and membership of the union
c. Psychological cause: clash of personalities, authoritarian administration, behavioral
maladjustments, lack of scope for self expression and participation, and undue emphasis on discipline
d. Denial of legal and contractual rights: non-implementation of laws, regulations, and violation of
agreements etc.
e. Others: political factor, organizational factors, group conflicts, interference by outsiders, social
factors, technological (techno phobia), market situation, role of leaders, and poor communication.

Effects of Industrial Disputes

As a result of any dispute between the management and the workers, the production or service (if it is a service
oriented organization) suffers. The volume of production is reduced and the quality suffers. There is always tension
in the organization and the peace-loving workers do not find any job satisfaction and if this tension continues for a
long time, good and efficient employees start leaving the organization.
Preventing Industrial Disputes
It is the general experience that in order to develop healthy industrial relations, there should be a well defined
grievance procedure. Furthermore, grievance officers should be men of character and status so that they can handle
the complaints and grievance. In the both cases, not only the interest of the workers and the management will be
safeguarded, but the interests of the people at large will also be kept in view.

Reference:
1. Khan Sarfaraz Ali and Dr.Nasima Khatun. A Handbook on HR Solution (2009).

(ISBN: 978-984-33-0505-3). Dhaka.

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Associate Management Counselor, Bangladesh Institute of Management (BIM)
sarfarazbim@gmail.com / 01817528067