Industrial Conflicts: A Statistical Analysis Pramod Verma and K Kumar

The long term trends in industrial conflicts may be interpreted in terms of the factors and events that have occurred in the political process, certain developmental factors such as the region in which the industry is located, techno-economic factors such as labour intensive or capital intensive industries, the sector in which the industry is operating, and the type of issues that have dominated some time or the other. This paper deals with the course of industrial con-flicts over the last two decades. The data pointtowards factors contributing to the incidence ofindustrial conflicts in India. The factors that seem toprovide the congruence are conflicts in labourintensive industries (textiles and jute), conflictsmanifesting in a radically politically organized regionlike West Bengal or regions where major metropolisesof India are situated, crises that have arisen inparticular industries at particular points of time, andthe political developments that have taken place atdifferent times.

Industrial Conflicts:Time Series Data

Data on industrial conflicts in terms of number of disputes, workers involved, and mandays lost for the past two decades show a distinct downward trend, barring a few exceptional years (Table 1). Disputes have come down from 2,889 in 1970 to 1,149 in 1990. The number of workers involved has come down from 18,28,000 in 1970 to 9,15,000 in 1990. Mandays lost in disputes have come down from 2,05,63,000 in 1970 to 1,25,91,000 in 1990.

Industrial Conflicts: Some Indices The index for disputes with 1970 as the base yeartouched the lowest figure of 35.31 in 1989 andshowed a marginal increase to 39.77 in 1990.Similarly, the workers involved index with 1970 asthe base year touched the lowest figure of 33.28 in1989 and recorded a moderate increase to 50.05 in1990. The mandays lost index reached the lowest levelof 60.23 in 1990. However, there were someexceptional years such as 1973, 1978, and 1982 (Graph1 and Table 1). After a dip in 1971, the number ofdisputes shows a gradual increase in 1972 and 1973and declines considerably in 1975 and 1976 owing tointernal emergency in India. Another jump isrecorded after the lifting of emergency. During

What are the distinct trends and patterns of industrial conflicts in India in the past two decades? This article by Verma and Kumar addresses this issue and discusses the emerging trends based on an analysis of considerable data. Pramod Verma is Professor and K Kumar is a Research Associate in the Personnel and Industrial Relations Area at the Indian Institute of Management, Ahmedabad.

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1978 and 1979, many public sector employees went on strike (Table 1). Another peak was reached in 1982 owing to many public sector employees going on strike. Data on workers involved and mandays lost more or less show similar trends with peaks in 1974,1979, and 1982 and troughs in 1976 and 1989 (Table 1 and Graph 1). The workers involved index for 1975 shows a low value of 62.53, whereas the mandays lost index shows a high of 106.51, indicating a longer duration of conflicts which is supported by data in Table 6. A similar trend is visible in 1981,1983, 1985, and 1986 as well. While there is a decrease in the indices of disputes, workers involved and mandays lost, the trends show a slower decline with respect to workers involved and mandays lost, pointing to longer duration of conflicts.

Data on industrial conflicts in Table 2 in terms of workers involved per dispute and mandays lost per dispute add another dimension. The intensity of con-flict has increased while conflicts per se have shown a downward trend (Table 2). The workers involved per dispute index, apart from fluctuating, has gone up to 125.86 in 1990. Except during the emergency period of 1975 and 1976, the workers involved per dispute index has been higher than the workers involved index for the respective years, indicating higher intensity of conflicts. Even for the years 1975 and 1976, though the disputes

index has recorded 67.25 and 50.50, the workers in-volved per dispute index is slightly higher at 92.97 and 79.83. This indicates a larger number of workers being involved and higher intensity of conflicts. The workers involved per dispute index shows four peaks in 1974 (153.58), 1979 (148.97), 1984(147.10), and 1987 (155.49) (Table 2). The higher figure for 1974 may be because of the nationwide railway strike. In 1979, there was a strike by public sector workers (see also Table 7), which ex-plains the peak in the graph for that year. Similarly, in 1987 also, a large number of public sector workers were involved in strikes, whereas the actual number of con-flicts was not as high as that in 1979 (see also Table 7).

The mandays lost per dispute index has been con-sistently higher than the 1970 figures, except for 1971, 1972, and 1973, indicating an increasing impact of the disputes. The peak years have been 1974, 1979, 1982, 1984, and 1987. These years, apart from recording public sector strikes (see also Table 7), have also recorded a higher proportion of longer duration strikes (see also Table 6). Interestingly, these years have also recorded higher number of mandays lost in the textile industry which ranks first in conflict proneness (see also Table 4). Data for mandays lost per worker involved do not show wide fluctuations excepting for the years 1984, 1985 and 1988, indicating that the intensity of conflict

remained more or less steady. The years 1984,1985, and 1988 recorded more longer duration strikes as indicated by Table 6. The year 1984 also saw significantly higher mandays being lost in cotton textiles and jute industry (see also Table 4). The mandays lost per dispute index came down for the years 1971, 1972, and 1973. The workers involved per dispute index was also lower for these years. This might be because of fewer conflicts in the jute industry which recorded fewer mandays lost for these years (see also Table 4).

A comparative analysis of data on strikes and lock-outs during 1970-90 (Table 3) shows that there is a greater incidence of strikes than lockouts and that more workers have been involved in strikes than lockouts. Mandays lost because of strikes have been higher than mandays lost due to lockouts during 1970 to 1980 except for the years 1976 and 1977, but the mandays lost due to lockouts have been higher than due to strikes during the period 1981-1990 except for the years 1981 to 1984 and 1986.

Strikes have come down from 2624 in 1970 to 897 in 1990. The peak years observed earlier (1974,1979, and 1984) have recorded higher figures for strikes in terms of actual numbers, workers involved, and mandays lost (Table 3 and Graph 2). A further analysis of data shows

that for the year 1987, while percentages of disputes and workers involved are higher for strikes, the percentage of mandays lost is higher for lockouts. While mandays lost because of strikes went down from 71.73 per cent in 1970 to 41.8 per cent in 1990, mandays lost because of lockouts went up from 28.27 per cent in 1970 to 58.2 per cent in 1990.

Industrial Conflicts: Inter-Industry Data

Table 4 provides data on mandays lost in selected in-dustries for the period 1970-1989, using the industrial classification of 1978. However, figures for 1980,1982, and 1986 were not available. The table provides code numbers of industries and Annexure 1 provides the list of industries with their code numbers. Manufacturing of cotton textiles ranks first, jute manufacturing ranks second, basic metal and alloy industries rank third, manufacture of machinery, machine tools, and parts except electrical machinery ranks fourth, and manufac-ture of non-metallic products ranks fifth. The least num-ber of mandays lost was in manufacture of wood and wood products.

A rank ordering of industries for the period 1970-1990 on the basis of mandays lost shows that cotton textiles ranks first in 1971,1972,1973,1979,1981,1983,

1985, 1987, and 1988, and second for the rest of the period. Jute manufacturing has fluctuated between first and second positions for many years. Basic metal alloy industries which ranks third has moved up from eleventh rank in 1970 to third and fourth ranks in later years.

A further analysis shows that mandays lost in cot-ton textiles were higher in 1974 (19.36%), 1979 (25.87%), 1983 (33.98%), 1984 (21.56%), and 1987 (21.42%), but significantly lower in 1989 (18.18%). Mandays lost in the jute industry were very high during 1970 (27.27%), 1975 (46.49%), 1976 (33.03%), 1979 (23.32%), 1983 (24.13%), and 1984 (35%). Transport, storage, and communica-tions recorded a peak in 1974 (24.23%) which is also the highest for 1974. This might be because of the railway strike of 1974. Leather and leather and fur products recorded peaks in 1978 (4.20%) and 1988 (2.87%) (Graph 3).

Industrial Conflicts: Inter-State Data Table 5 provides statewise figures for mandays lost during the period 1970-1989. The states are ranked on the basis of average mandays lost. West Bengal ranks first and the peak years of mandays lost have been 1974, 1975, 1979, 1984, and 1988. Mandays lost came down significantly in 1989 (Graph 4). The lowest figures of

mandays lost are for 1972. West Bengal has highly organized trade unions and this is reflected in its rank-ing. Moreover, the jute industry is concentrated in West Bengal and this also contributes to higher figures. Maharashtra ranks second and the peak years of man-days lost have been 1974,1982, and 1983. The year 1982 touched the peak for mandays lost, which might be due to lockouts preceding closures in the textile industry. The figures for 1974 also reflect the general heightened industrial conflict scenario which preceded the emer-gency. Tamil Nadu and Kerala rank third and fourth in mandays lost. The higher ranking of West Bengal, Maharashtra and Tamil Nadu in terms of mandays lost is also due to the fact that Calcutta, Bombay, and Madras are situated in these states. This signifies heightened industrial conflicts in more industrialized areas. Industrially less developed regions like Manipur, Nagaland, Sikkim, Meghalaya, Arunachal Pradesh, Lakshadweep, and Mizoram record negligible figures for mandays lost.

Statewise rankings in mandays lost from 1970 to 1989 show that West Bengal has consistently remained at the top except for 1972,1982, and 1983. The year 1972 witnessed an unprecedented industrial conflict in Madras with attempts made by the DMK party then in power to gain control over trade unions. Hence, Tamil Nadu ranks first in mandays lost in 1972 pushing West

Bengal to the second rank. There were severe crises in the textile industry in 1982 and 1983 which makes Maharashtra rank first in mandays lost in these two years. Maharashtra has remained in the second position for many years. Tamil Nadu has occupied the third position for many years and second and fourth posi-tions for a few years.

A percentage analysis of each state's share to total shows that West Bengal accounted for 54.6 per cent of mandays lost in 1970 and 41.18 per cent of mandays lost in 1989. The share of Maharashtra in mandays lost has increased from 11.5 per cent in 1970 to 14.95 per cent in 1989. Tamil Nadu accounted for 8.86 per cent in 1970 and 9.69 per cent of mandays lost in 1989. West Bengal, Maharashtra, and Tamil Nadu together have con-tributed more than 50 per cent of mandays lost in all these years. In 1982, the contribution was as high as 84.18 per cent.

Industrial Conflicts: Percentage Distribution by Duration

Table 6 provides percentagewise distribution of dis-putes by duration for the period 1970-1990. From the table it is evident that nearly a fourth of the disputes have been for a day or less. Similarly another one-fourth

of disputes have lasted for less than 5 days. Thus, nearly half of the disputes are short-term in nature. Longer duration disputes have steadily increased from 13.2 per cent to 30 per cent in 1987.

Industrial Conflicts: Inter-Sectoral Data

Table 7 provides data in terms of disputes, workers involved, and mandays lost for the public and the private sectors, for the period 1970-1990. The number of disputes in the public sector has fluctuated between 363 and 663, barring a few exceptional years (Graph 5). In 1976, an internal emergency was declared and there were few conflicts. The period 1978-1983 has witnessed heightened conflicts with the peak year being 1979. The number of disputes in the private sector has significant-ly come down from 2,443 in 1970 to 661 in 1990. The number of public sector workers involved in disputes has increased from 4,39,000 in 1970 to 7,05,000 in 1990. The number of public sector workers involved in dis-putes peaked during 1974, 1979, and 1987. However, the number of mandays lost in the public sector has peaked during 1974, 1981, and 1982 (Graph 5). The higher figures for 1981 and 1982 may be because of longer duration of disputes. The number of private sector workers involved has come down from 13,89,000 in 1970 to 2,10,000 in 1990.

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Mandays lost in the private sector because of dis-putes has also come down from 185,01,000 in 1970 to 9734,000 in 1990. The peak years were 1982,1983,1984, and 1979 (Graph 5). The lowest figure for mandays lost in the private sector was recorded in 1990.

A percentage distribution in terms of public and private sector for number of disputes, workers in-volved, and mandays lost for the period 1970-1990 shows that the number of disputes in the public sector has increased from 15.4 per cent in 1970 to 42.47 per cent in 1990 and that in the private sector has declined from 84.56 per cent in 1970 to 57.53 per cent in 1990. Thus, the two sectors are showing convergent trends in terms of number of disputes. The share of public sector workers involved in disputes has increased from 24.01 per cent in 1970 to 77.04 per cent in 1990, whereas the share of private sector workers has declined from 75.18 per cent in 1970 to 22.75 per cent in 1990. The share of mandays lost in public sector disputes has increased from 10.03 per cent in 1970 to 22.69 per cent in 1990. The share of mandays lost in private sector disputes has declined from 89.97 per cent in 1970 to 77.31 per cent in 1990.

The data also indicate that production loss has been higher in the private sector than in the public sector. Moreover, production loss in the private sector shows large fluctuations in comparison to the public sector.

The highest amount of production loss in the private sector was recorded in 1982 whereas the highest amount of production loss in the public sector was in 1981. Wages lost because of disputes have not fluc-tuated much.

Industrial Conflicts: Performance of Conciliation Machinery

Table 8 provides data on the performance of the dispute settling machinery for the period 1970-1990. The data indicate that the percentage of success has declined from 34.4 in 1970 to 13.5 in 1990. The percentage of failure has increased from 33.4 in 1970 to 58 in 1990. The indefinite category of conflicts has come down from 15.2 per cent in 1970 to 1.8 per cent in 1990. This shows that conflicts are becoming increasingly irreconcilable through conciliation.

Industrial Conflicts: Distribution by Causes

Table 9 provides percentage distribution of industrial disputes by causes for the period 1971-1990. Wages and allowances seem to be a significant cause of industrial disputes accounting for 21.8 per cent to 36.1 per cent of the disputes. However, wages and allowances as a

cause of disputes have come down from 34.3 per cent in 1971 to 25.2 per cent in 1990. Personnel and retrench-ment appears to be another significant cause, the figure varying from as low as 16.7 per cent to as high as 29.9 per cent. However, the share of personnel and retrench-ment as a cause of industrial disputes has come down from 23 per cent in 1971 to 16.8 per cent in 1990. The share of indiscipline and violence as a cause of in-dustrial disputes has increased from 3.6 percent in 1971 to 17 per cent in 1990. Bonus as a factor did not con-tribute much to industrial disputes and its share has come down from 14.1 per cent in 1971 to 3 per cent in 1990. One significant trend is that disputes that could not be assigned any reason have grown from 23.6 per cent in 1971 to 37.4 per cent in 1990. In general, conflicts arise owing to a variety of reasons.

Conclusion

The analysis of data in the preceding sections shows certain distinct trends. These are as follows:

• There is a congruence between certain industries and certain regions in contributing to a higher in cidence of industrial conflicts (the jute industry is located mostly in West Bengal which is a strongly unionized region).

• The incidence of industrial conflicts is higher in regions of higher industrial growth.

• The states of West Bengal, Maharashtra, and Tamil Nadu together contribute to more than 50 per cent of industrial conflicts.

• The value of production loss is much higher in the private sector than in the public sector.

• Of late, industrial conflicts have come down and strikes are fewer than lockouts.

• Conflicts are lengthening in recent years.

• The closure of textile mills has brought down in dustrial conflicts in Maharashtra.

• The increasing realization of the need for industrial harmony and resorting to negotiated settlements have brought about a decrease in industrial con flicts in West Bengal.

It is difficult to conjecture on the course of industrial conflicts during the coming years. There is at present some uncertainty about the state policy in regard to the speed of structural readjustment and therefore the resultant policies and measures. However, industrial conflicts will continue to be a critical factor in the viability of Indian organizations. Managements will

therefore have to evolve an integrated view of human resources and to respond constructively and humanely to conflicting situations in their respective organiza-tions.

The strategy should consist of negotiated settle-ments with established trade unions which represent the workers rather than with unions preferred by management. The second ingredient of such a strategy will be to create a climate for self-development and self-management by the workers. The shocks of the structural adjustment programme could perhaps be absorbed by workers if they are themselves involved in decision making on economic and technological chan-ges. Finally, both managements and workers may have to go through traumatic experiences in the process of restructuring of traditional industries such as textiles and jute. In such situations, managements may have to evolve plans for both economic and social rehabilitation of managers and workers who may be rendered un-employable and which may add to industrial and social conflicts.

Industrial conflicts cannot be wished away as long as there are conflicting interests in the control over production processes and in compensating wage labour. Industrialization would certainly lead to higher industrial conflicts. However, attempts can be made to minimize industrial conflicts by resorting not only to negotiated settlements but also to the democratization of industrial relations.

Data Sources

1. Labour Bureau, Pocket Book of Labour Statistics, Chandigarh/Shimla, Ministry of Labour, Govern ment of India, (Various Issues).

2. Labour Network Wing, Network in Labour Statistics and Research, Chandigarh, Ministry of Labour, Government of India, 1990.

3. Labour Bureau, Labour Bureau's Labour: Master Ref erence Book, Chandigarh/Shimla, Ministry of Labour, Government of India, 1989.

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