There are number of reasons behind industrial disputes. Some of the important causes of industrial disputes are explained below:
Demand for wages hikes and allowances. It has been statistically proven that one-third of the total disputes in the country are due to demand for higher wages. Over a period of time workers feel need for inflation corrected wages to have a reasonable standard of living. Sometimes, the extended wages and benefits are below the industry standards and lead to disputes.
Demand for bonus and other benefits. This relates to the amount, time and mode of payment of bonus sum. At times, disputes may also arise over worker-benefits given and non-payment of other allowances.
Psychological factors and in satisfaction. Job satisfaction is based on many factors other than wage, working conditions and work hours. The nature of work and other factors like sense of personal achievement, self-expression, growth etc tend to influence the worker’s psychology by and large and may cause disputes.
Lack of effective personnel and grievance management system can lead to disputes. An effective human resource management is must for effective working of an organization.
Workplace automation and retrenchment of labor has been a common cause of labor dispute in recent past.
Workers may demand for better working conditions and social security measures which can led to disputes. Some of the other reasons behind disputes are work hours, work timings, interval timings, leave, leisure etc.
At times disputes are caused by political and industrial factors.
Other factors like inter/intra union rivalry, demand charter, work load and standing orders/rules/ service conditions/safety measures can also lead to industrial disputes.