Effects of Industrial Disputes

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:

  1. 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
  1. 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
  1. 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
  • Unemployment
  • Inconvenience due to strike in public utility services etc.
  1. 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:

  1. 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.

  1. Improvements in working conditions and wages

Labour disputes are for the improvement of wages and working conditions. Being victorious, they get these benefits.

  1. 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.

  1. Entactment of labour laws

Problems arise because of disputes and for settling these problems, the government enacts laws which protect the interest of workers.

  1. 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.