Industrial Disputes Settlement and Causes

Industrial Disputes:

Labor & capital disputes are common now days in Industrial cities and countries.

Such disputes result in either the strike of the workers which means that workers refuse to go to work or lock-out which is employers not allowing the workers to work.

Lock-outs are rare as compared to strikes, as mostly labors are the party from whom the disputes are raised


Industrial disputes leading to strikes have serious consequences for the life of the community:

Strikes leads to serious consequences for Community in Industrial Disputes.

The whole ecosystem from workers to the consumers suffer, as the workers lose their salaries, owner lose their profits, market share in local or international market and consumers leave without experiencing the services by the respective business.

Hence it is important for all the parties involved to create a scenario where the risk of industrial disputes is minimized. Also it is important to create tools/ways through which industrial disputes can be resolved.

Industrial Disputes Causes

Generally, there are 5 main causes due to which labor or industrial disputes can occur.

  • Demand for higher salary for a better living standard. There are many modifications which has been made in wage system in some countries e.g. bonus system, minimum salary fixture as well as well as profit sharing schemes.
  • Insecurities about employment which is one of the economic securities.
  • Will and demand of the workers to be in management & actions done to achieve it.
  • Previously disputes used to occur due to working hour but now they have been fixed by regulations.
  • Sacking of leader, any known worker or no acknowledgment for the union might also create a dispute.

Settlement of Disputes:

Despite knowing the cases/reason still disputes are meant to occur hence the smart move will be to have all the arrangement for dispute settlement done before hand.

Normally two methods mentioned below are used:

  • Conciliation
  • Arbitration


In this case the settlement is done between worker’s representatives and the employers themselves, either with an outside person or without his mediation.


In arbitration a neutral person is involved and the dispute is informed to him. It can be done as voluntary or as compulsory too.

Both parties can agree to appoint a neutral arbitrator if a dispute arises and the jurisdiction is mentioned as arbitration on the agreement.

Add a Comment

Your email address will not be published. Required fields are marked *