In this blog post, Salang Ishan Sharma, an Advocate in Punjab And Haryana High Court, Chandigarh who is currently pursuing a Diploma in Entrepreneurship Administration and Business Laws from NUJS, Kolkata, discusses how Honda denied the sacking of workers which led to unrest among the workers.
Introduction
The ultimate object of a company is to reap out the profits from it but during such journey the company has to face many obstacles out of which labour unrest is considered substantial in nature. This labour unrest has become very prominent in India. The problem of labour unrest is one of the most serious problems inflicting in our economy. Such unrest is an inevitable concomitant of industrialism. Labour unrest is not confined to India alone. This conception of labour unrest is also conspicuous worldwide in various forms and degrees in different countries as well. Having a second largest labour force in the world after China, a majority of the Indian labour force is in the unorganised sector. Less than 10% of works in the organised sector that comprises of government and other public and private registered companies.
Background
In the earlier decades, the works knew only one method of expressing their protest, and that was going on a strike. But today in the recent times there are many ways of expressing their unrest. Strikes, lockouts, hunger strike, sudden stoppage of work, pen down strike, etc. are some of the examples of a strike in the recent era. Having up poor working conditions, excessive working hours, insufficient pay, discrimination and child labour were some of the root causes which gave potential to uplift labour unrest at that time and which is even prominent today as well.
Meaning
Labour unrest is a dissatisfaction displayed by workers, often in the form of strikes, and sometimes in the form of violent disputes, etc.are follows and creates a hassle in the normal functioning of the business.
Diagnosis
Substantial factors behind such unrest are:
- Lack of trust between the association of employee and employer:
It is seen that the relationship of employee and employer decides the journey of the company. Pessimist approach between the employer and employee is one of the causes of labour unrest.
- Status of wages:
India has one of the most rigid laws for employment. But it is not still strong enough to meet the requirements of the present day economy. While all laws are aimed at protecting the interests of the workers, it does not always happen so. One law which protects the workers indirectly paves the way to some other practice by the employer. For example, there are strict regulations regarding the wages, rights and other facilities which apply to permanent employees. To avoid giving them, companies prefer to employ more contract labourers. Thus the law which should protect workers does not always do so.
- Unfair and ill-treatment of workers by the employees:
Unfair and ill-treatment not only means wages but also covers up the purview of nature of work and facilities provided.
- Changing of economic environments:
Workers are more uncomfortable or restless and get easily agitated on the grounds of unfair treatment and poor wages. This problem aggravates especially when the company makes huge profits and workers feel the same, discrimination among the workers class, between employer and employee, affects the overall environment of the company which creates a hassle in the company and leads to unrest among the labourers. Also, bad working environments should also be taken into account.
- Mismanagement and problem of communication between the employer and employee:
Sometimes the middle level management also fails to communicate between the high-level management and the labourers which affect the productivity, sales and proficiency of the company and causes labour unrest.
- Image building exercise by the trade union leaders:
Whenever any dispute comes into existence, the union leaders are first to come to dominate the company by giving their advantage of political powers and start seeking up concessions or compensations from the factory or company owners otherwise, leads to labour unrest.
Consequences Of Labor Unrest
The impact of such unrest is seen not only upon happening of an event by the company but also when the workers think that some discrimination is done by the company which is not so as per the recent case of Honda motorcycles & scooter of Tapukara plant. Following are the effects:
- Production misbalance:
Such kind of unrest affects the productivity line of the company on the part of the discrepancies between the employee and employer.
2. Deflation of sales:
With production imbalance, the sales too will affect the company entirely which will determine the prospective prices of such units whose sales have gone down due to such unrest.
- Fluctuation of Profits:
If the productivity and sales of a company are affected then, fluctuation of profits is also one of the drawbacks of such labor unrest.
- Scarcity of goods produced:
With such kind of labour unrest when the production of a product stops it leads to scarcity of such goods and creates a grave impact on the country and all the other dependent countries as well.
- Substantial question of investment:
By taking sales, production and profit into account, fluctuation in the stock market of such company may tarnish the image of the company and may even create doubt in the minds of the potential investor. Also, it may also create a grave impact in the minds of the foreign investor as these incidents will showcase the complex labour scenario to the outside world.
- Scenario in the economy:
With the fluctuation of profits, sales and production imbalance, the economy will also be affected accordingly. Such economy of the country will decide the values of certain commodities, an effect on imports and exports, GDP, etc. and may even affect the national income in some or the other manner. So such kind of incidents have to be taken into account and that too in a serious manner and resolve it accordingly so that if not stopping such incidents but to minimise the adverse effect of the same.
Possible Solutions
- Rational Wage policy:
A rational wage policy should be taken into account while dealing with the wages of the workers and must keep a tab on such policies time to time and update the same when in need so as to keep the worker class into a confident position and to make them fell discriminated.
- Opportunities to take part in the management:
Also, it is mandatory not only for the employers but also for the employees to take an active part in the management their decisions, execution policies, etc. so as that not to keep the workers in the dark room as to what is going on in the management of the company.
- Comprehension on the part of trade unions:
It is not only the companies which should revisit their approach to trade unions. Trade unions should have a second thought on why and what they exist for. They should safeguard the interest of the workers, but at the same time, they have the responsibility to promote the growth of the industry and the country. They should understand the changed industrial scenario. Trade unions should not become franchisees of politicians.
- Timely communications between the workers and the employers under proper channels:
Such kind of timely and proper communications channels will between the parties will help them in keeping the company in an effective manner without creating any negative impact and accordingly will gain the trust of the workers as well.
- Inauguration of dispute resolution committees:
With the establishment of such kind of committees, any dispute arising within the companies between the employer and the workers, can be resolved in a fast pace without any delay i.e. speedy resolution of disputes which will also minimize the effect of the production crisis, sales, profits and the economy and then an action plan should also be initiated in case of any future dispute arises. Also, the way a dispute is handled creates an image of the company in the minds of the workers. It is very important to create a good image because the image persists even after the conflict is over and the worker returns to work. It is far more important to create an inclusive work atmosphere for workers returning after strikes.
Conclusion
It is a kind of disease, which should be diagnosed, as soon as possible and eradicates accordingly. So it is important to resolve such dispute rather to an issue out of it and create politics which affects the not only the company but that country as a whole. Also, as the life of a labourer in the modern age is complex. In big cities, their life has become mechanised and monotonous. To an ordinary worker in a big city, life has no meaning or purpose. The tyrannical handling of the machine technology has transformed a wage-laborer into a cog in the machine. Most of the grievances for which labourers agitate are genuine. However, not only the company but the government should also take the initiative to improve their condition. Labourers should also minimise strikes for the sake of development of their country.
