Industrial Dispute may have both adverse and favourable effects.
Adverse effects of industrial Dispute
Industrial disputes resulting in strikes and lock-outs disturb the economic, social and political life of a country. They harm all the shareholders like employees, employers, community, State etc. as follows:
- On workers
Because of disputes, workers suffer as under :
- Loss of wages
- Bodily injuries/death due to lathi charge, firing etc. by the police.
- Victimisation by the employers after the strike is over.
- Setback in their careers
- Get indebted to meet their immediate requirements.
- Permanent damage to the health of children of workers due to under-nourishment during strike periods, and
- Since workers are the member of the community,they also suffer like other members of the society
- On employers/industrialists
Employers suffer because of
- Loss of output
- Loss of profit
- Damage to organizational property
- Damage to organisational climate
- Damage to good human relations
- Mutual distrust and suspicion
- On community
Since strikes and lock-outs create scarcity of commodities, the entire community suffers because of
- Scarcity of commodities
- Rise in price/inflationary tendencies
- Fall in per capita income
- Loss to national property due to violence by workers
- Social disorder/tension
- Inconvenience due to strike in public utility services etc.
- On state
The state suffers because of the following :
- Loss of revenue (less recovery of sales tax, excise duty, income tax, etc. due to less output)
- Wastage of time and energy in settling the industrial disputes, and
- Earns the displeasure of both the workmen and the employers.
Good effects of industrial Disputes
Generally, industrial disputes have bad effects, but there are a few good effects too, which are as follows:
- Growth in worker’s unity
Unity is the basis of industrial disputes. While disputing, all workers get organized on a demand, and there develops a sense of co-operation among them.
- Improvements in working conditions and wages
Labour disputes are for the improvement of wages and working conditions. Being victorious, they get these benefits.
- Progress of labour unions
Labour unions progress during labour disputes period. With the hopes of gains, there is growth in the number of trade unions members.
- Entactment of labour laws
Problems arise because of disputes and for settling these problems, the government enacts laws which protect the interest of workers.
- Improvement in industrialist’s behavior
With the fear of disputes, the behavior of industrialists becomes better with the workers and they start treating the workers as human beings.