Various Reasons Resulting in Industrial Disputes and Labour Problems in India

The various reasons behind an industrial dispute can generally be categorized into economic and non-economic factors. The different types of economic causes are related to monetary compensation like salary, wages, allowances, bonus, working hours, working conditions, leave, medical benefits, holidays without pay, illegal termination, refusal of employment, retrenchments and unjust layoffs. On the other hand, political factors, sympathetic strikes, ill treatment by other workers of the company, indiscipline etc. come within the purview of non-economic factor which often lead to an industrial dispute or a major labour issue.

Salary, wages and other allowances: With the increase in cost of living index, employees/ workers constantly bargain with the management to increase their salary/ wages in order to meet the ever rising cost of living index. However, it is to be noted that the desire to upgrade the standard of living is a natural tendency in human beings. More than 25% of industrial disputes and labour issues are result of demand for increased salary/ wages.

Retrenchment and personnel issues: A very nominal 3% of the industrial disputes are caused by factors like retrenchment and layoffs while 14% of the industrial disputes are caused by personnel.

Indiscipline and misconducts: One of the leading causes of industrial disputes and labour problems in the industries is due to misconducts, indiscipline and often violent behaviours of the workmen towards the company. And unfortunately, this trend of indiscipline and misconducts is moving towards an upward graph. Around 50% of the industrial disputes are direct results of misconducts of the employees/ workers.

Bonus, Working hours and other criteria: Around 7-8% of industrial disputes are due to demand for bonus. Though slowly, this trend of disputes arising out of demand of bonus is ever increasing. Moreover, factors like working hours and leave lead to only 1-2% of industrial disputes.

Apart from these above mentioned factors, an industry faces problems due to reasons like problems between two different unions, non-implementation of awards, agreements, violation of standing orders, service rules, excessive work pressure on the employees, charter of demand, violation of statutory rules and regulations etc.


  1. Employer want to change the standing orders, but unions are opposed, labour commissioner order given onside amendments apply after 5 years, unions claim in labour to deal this case,any case law please provide. 1) Retirement age decrease from 60 to 58 years, 2) Transfer any wear in india ( before 30 Km below )

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