What Are The Industrial Disputes In Business Organisations?

Industrial Disputes In Business Organisations

The Conflict or difference of opinion between management and workers on the terms of employment is called Industrial Disputes In Business Organisations. In this situation both the parties try to pressurise each other.

In other words industrial dispute means any misunderstanding between the parties involved in the organisation. It may arise between:

  • Employer & employer
  • Employer & employee
  • Employee & employee
  • Organisation & outsiders

Objectives Of Industrial Disputes In Business Organisation

  • To improve the economic levels of the employees.
  • To secure better working conditions for workers.
  • To secure bonus for the employees when there is more profit.
  • To protect the welfare of employees and give benefits to each employee.
  • To struggle with the schemes of management.
  • To give a chance to the employees to take part in decision making.
  • To secure organisational growth and stability.
  • To maintain industrial peace through settlement of disputes.
  • To ensure smooth running of the organisation.

Causes Of Industrial Disputes In Business Organisation

The causes of industrial dispute is broadly divided into two types:

A.Economic Causes

B.Non-economic Causes

What are the Economic Causes Of Industrial Disputes

The industrial disputes which arise due to non-payment, less payment or irregular payment of remuneration are called economic causes of industrial disputes.

It includes; Wages, Bonus, Dearness Allowance, Poor working Conditions, Working hours, Job Security


The most important cause of industrialization is the demand for higher wages in order to meet the rising cost of living. Generally it is believed that around 30% of industrial disputes are related to wages problems.


The other important cause of industrial dispute is demand for bonus. It arises when the workers feel that there is sufficient profit and they are exploited by their management. So they want a share of profit in the form of a bonus.

Dearness Allowance

The industrial disputes may arise due to the absence of dearness allowance. Sometimes old employees may demand some additional salary in the form of dearness allowances for their long period of service.

Poor Working Conditions

The poor-working condition is also considered as another important cause of industrial disputes. The employees may demand to provide good working conditions which should be very friendly and congenial to their health.

Working Hours

The working hours is another measure of the industrial dispute. As per legal provisions the maximum working hours per day is light hours but if the actual working hours exceeds such limit then it leads to disputes.

Job Security

The employment insecurity is yet considered as another cause of industrial disputes. It arises when workers feel that their job is not secure and they may be victimised in future.

What Are the Non-economic Causes Of Industrial Disputes

The Industrial Disputes which arise due to behaviour, attitude and political situation are called non-economic causes of industrial dispute. It includes:

Dishonest middle level management

The dishonest behaviour of middle level management may lead to industrial disputes. It arises when they prevent from containing senior management and avoid communicating anything to subordinates.

Lack Of Preparation

The industrial disputes may arise due to lack of workers participation in management. The workers always demand to participate in the managerial activities whereas the employer’s not agree to fulfil this demand, which creates misunderstanding.

Political Factors

Sometimes the industrial dispute may take place due to political parties. The dishonest political leaders exploit the workers for their own benefits and encourage them to create disputes.

Industrial Automation

Industrial Automation is another cause of conflict between employer and employee. The workers get dissatisfied through the automation process as it will throw them out from the organisation so in order to protect their jobs, they oppose the automation process.

Other Causes Of Industrial Disputes

There are also so many causes that lead to creation of misunderstanding between employer and employee. Such misunderstanding is responsible for various types of industrial disputes. The most important causes are:

  • Modernisation Of Plant
  • Introduction Of Computers
  • Behaviour Of Supervisory Staffs
  • Leave and holidays pay
  • Non-recognition Of labour trade unions

Leave a Comment