INDUSTRIAL CONFLICT AND ITS CAUSES (P.7,14)

INDUSTRIAL CONFLICT AND ITS CAUSES

Industrial conflict is the situation where disputes and disagreements arise between employees’ and employers over matters related to the working conditions. Conflict is endemic among human grouping because of the divergent interests which are usually diametrically opposed. While employers must maximize his profit by reducing to the minimum level the cost of production which is usually at the detriment of the employees, employees (usually represented by trade union)seek to secure a work condition of a bearable standard and better remuneration. In view of the above, conflict springs up. Industrial conflict(also refer to as trade union) therefore is defined as "any disagreement or dispute between workers and workers or between workers and employers regarding the condition of employments of workers and the general conditions relating to their employment" Industrial conflict can be formal or informal.

formal and informal conflict

While informal conflict in an industrial organisation is usually associated with low skilled and purely educated workmen and such conflicts are generally unorganized, exhibited in individual actions such as absenteeism, sabotage, theft etc. Formal conflict on the other hand is associated with high skilled and well educated workers who are properly organized and such formal conflict is usually spearheaded by union leaders who are referred to as "aggitators".Example of organized/formal conflict is strike or withdrawal of service.

CAUSES

Wage demands

Usually occur when an agreement expires or esp. concerning overtime payments.

Many employees may believe they need to be paid more but the employer may not agree.

In times of inflationary pressures such as GST, rising oil and interest rates employees are likely to seek wage increases to maintain their standards of living.

Working conditions

Employees take action if there is a risk to either their or others at the workplace. 

Disputes can happen over staff facilities like kitchens, parking and the equipment used by workers

Management policies

These include concerns over leave entitlements such as sick leave, holiday leave, promotion and redundancy

Management may change policies without adequate consultation n this creates a change to custom and practice.

Globalization has encouraged this conflict

Political and Social issues

Involves wider issues (environmental and political) where employees take action to support a cause. - Employees are less likely to take strong action to support a cause given the reduced union power in the WRA.