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.

What are the distinct trends and This paper deals with the course of industrial con-
flicts over the last two decades. The data point
patterns of industrial conflicts in India
towards factors contributing to the incidence of
in the past two decades? This article by industrial conflicts in India. The factors that seem to
Verma and Kumar addresses this issue provide the congruence are conflicts in labour
and discusses the emerging trends intensive industries (textiles and jute), conflicts
based on an analysis of considerable manifesting in a radically politically organized region
data. like West Bengal or regions where major metropolises
of India are situated, crises that have arisen in
particular industries at particular points of time, and
Pramod Verma is Professor and K Kumar the political developments that have taken place at
is a Research Associate in the Personnel different times.
and Industrial Relations Area at the Indian
Industrial Conflicts:Time Series Data
Institute of Management, Ahmedabad.
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 year
touched the lowest figure of 35.31 in 1989 and
showed a marginal increase to 39.77 in 1990.
Similarly, the workers involved index with 1970 as
the base year touched the lowest figure of 33.28 in
1989 and recorded a moderate increase to 50.05 in
1990. The mandays lost index reached the lowest level
of 60.23 in 1990. However, there were some
exceptional years such as 1973, 1978, and 1982 (Graph
1 and Table 1). After a dip in 1971, the number of
disputes shows a gradual increase in 1972 and 1973
and declines considerably in 1975 and 1976 owing to
internal emergency in India. Another jump is
recorded after the lifting of emergency. During

Vol.17, No3, July-September 1992 11

1978 and 1979, many public sector employees went on index has recorded 67.25 and 50.50, the workers in-
strike (Table 1). Another peak was reached in 1982 volved per dispute index is slightly higher at 92.97 and
owing to many public sector employees going on strike. 79.83. This indicates a larger number of workers being
Data on workers involved and mandays lost more or involved and higher intensity of conflicts. The workers
less show similar trends with peaks in 1974,1979, and involved per dispute index shows four peaks in 1974
1982 and troughs in 1976 and 1989 (Table 1 and Graph (153.58), 1979 (148.97), 1984(147.10), and 1987 (155.49)
1). The workers involved index for 1975 shows a low (Table 2). The higher figure for 1974 may be because of
value of 62.53, whereas the mandays lost index shows the nationwide railway strike. In 1979, there was a strike
a high of 106.51, indicating a longer duration of conflicts by public sector workers (see also Table 7), which ex-
which is supported by data in Table 6. A similar trend plains the peak in the graph for that year. Similarly, in
is visible in 1981,1983, 1985, and 1986 as well. While 1987 also, a large number of public sector workers were
there is a decrease in the indices of disputes, workers involved in strikes, whereas the actual number of con-
involved and mandays lost, the trends show a slower flicts was not as high as that in 1979 (see also Table 7).
decline with respect to workers involved and mandays
lost, pointing to longer duration of conflicts. The mandays lost per dispute index has been con-
sistently higher than the 1970 figures, except for 1971,
Data on industrial conflicts in Table 2 in terms of 1972, and 1973, indicating an increasing impact of the
workers involved per dispute and mandays lost per disputes. The peak years have been 1974, 1979, 1982,
dispute add another dimension. The intensity of con- 1984, and 1987. These years, apart from recording
flict has increased while conflicts per se have shown a public sector strikes (see also Table 7), have also
downward trend (Table 2). The workers involved per recorded a higher proportion of longer duration strikes
dispute index, apart from fluctuating, has gone up to (see also Table 6). Interestingly, these years have also
125.86 in 1990. Except during the emergency period of recorded higher number of mandays lost in the textile
1975 and 1976, the workers involved per dispute index industry which ranks first in conflict proneness (see
has been higher than the workers involved index for the also Table 4). Data for mandays lost per worker
respective years, indicating higher intensity of conflicts. involved do not show wide fluctuations excepting for the
Even for the years 1975 and 1976, though the disputes years 1984, 1985 and 1988, indicating that the
intensity of conflict
remained more or less steady. The years 1984,1985, and that for the year 1987, while percentages of disputes and
1988 recorded more longer duration strikes as indicated workers involved are higher for strikes, the percentage
by Table 6. The year 1984 also saw significantly higher of mandays lost is higher for lockouts. While mandays
mandays being lost in cotton textiles and jute industry lost because of strikes went down from 71.73 per cent
(see also Table 4). The mandays lost per dispute index in 1970 to 41.8 per cent in 1990, mandays lost because of
came down for the years 1971, 1972, and 1973. The lockouts went up from 28.27 per cent in 1970 to 58.2 per
workers involved per dispute index was also lower for cent in 1990.
these years. This might be because of fewer conflicts in
the jute industry which recorded fewer mandays lost Industrial Conflicts: Inter-Industry Data
for these years (see also Table 4).
Table 4 provides data on mandays lost in selected in-
A comparative analysis of data on strikes and lock- dustries for the period 1970-1989, using the industrial
outs during 1970-90 (Table 3) shows that there is a classification of 1978. However, figures for 1980,1982,
greater incidence of strikes than lockouts and that more and 1986 were not available. The table provides code
workers have been involved in strikes than lockouts. numbers of industries and Annexure 1 provides the list
Mandays lost because of strikes have been higher than of industries with their code numbers. Manufacturing
mandays lost due to lockouts during 1970 to 1980 except of cotton textiles ranks first, jute manufacturing ranks
for the years 1976 and 1977, but the mandays lost due second, basic metal and alloy industries rank third,
to lockouts have been higher than due to strikes during manufacture of machinery, machine tools, and parts
the period 1981-1990 except for the years 1981 to 1984 except electrical machinery ranks fourth, and manufac-
and 1986. ture of non-metallic products ranks fifth. The least num-
Strikes have come down from 2624 in 1970 to 897 in ber of mandays lost was in manufacture of wood and
1990. The peak years observed earlier (1974,1979, and wood products.
1984) have recorded higher figures for strikes in terms A rank ordering of industries for the period 1970-
of actual numbers, workers involved, and mandays lost 1990 on the basis of mandays lost shows that cotton
(Table 3 and Graph 2). A further analysis of data shows textiles ranks first in 1971,1972,1973,1979,1981,1983,
1985, 1987, and 1988, and second for the rest of the mandays lost are for 1972. West Bengal has highly
period. Jute manufacturing has fluctuated between first organized trade unions and this is reflected in its rank-
and second positions for many years. Basic metal alloy ing. Moreover, the jute industry is concentrated in West
industries which ranks third has moved up from Bengal and this also contributes to higher figures.
eleventh rank in 1970 to third and fourth ranks in later Maharashtra ranks second and the peak years of man-
years. days lost have been 1974,1982, and 1983. The year 1982
touched the peak for mandays lost, which might be due
A further analysis shows that mandays lost in cot- to lockouts preceding closures in the textile industry.
ton textiles were higher in 1974 (19.36%), 1979 (25.87%), The figures for 1974 also reflect the general heightened
1983 (33.98%), 1984 (21.56%), and 1987 (21.42%), but industrial conflict scenario which preceded the emer-
significantly lower in 1989 (18.18%). Mandays lost in the gency. Tamil Nadu and Kerala rank third and fourth in
jute industry were very high during 1970 (27.27%), 1975 mandays lost. The higher ranking of West Bengal,
(46.49%), 1976 (33.03%), 1979 (23.32%), 1983 (24.13%), Maharashtra and Tamil Nadu in terms of mandays lost
and 1984 (35%). Transport, storage, and communica- is also due to the fact that Calcutta, Bombay, and
tions recorded a peak in 1974 (24.23%) which is also the Madras are situated in these states. This signifies
highest for 1974. This might be because of the railway heightened industrial conflicts in more industrialized
strike of 1974. Leather and leather and fur products areas. Industrially less developed regions like Manipur,
recorded peaks in 1978 (4.20%) and 1988 (2.87%) Nagaland, Sikkim, Meghalaya, Arunachal Pradesh,
(Graph 3). Lakshadweep, and Mizoram record negligible figures
for mandays lost.
Industrial Conflicts: Inter-State Data
Statewise rankings in mandays lost from 1970 to
Table 5 provides statewise figures for mandays lost 1989 show that West Bengal has consistently remained
during the period 1970-1989. The states are ranked on at the top except for 1972,1982, and 1983. The year 1972
the basis of average mandays lost. West Bengal ranks witnessed an unprecedented industrial conflict in
first and the peak years of mandays lost have been 1974, Madras with attempts made by the DMK party then in
1975, 1979, 1984, and 1988. Mandays lost came down power to gain control over trade unions. Hence, Tamil
significantly in 1989 (Graph 4). The lowest figures of Nadu ranks first in mandays lost in 1972 pushing West
Bengal to the second rank. There were severe crises in of disputes have lasted for less than 5 days. Thus,
the textile industry in 1982 and 1983 which makes nearly half of the disputes are short-term in nature.
Maharashtra rank first in mandays lost in these two Longer duration disputes have steadily increased from
years. Maharashtra has remained in the second position 13.2 per cent to 30 per cent in 1987.
for many years. Tamil Nadu has occupied the third
position for many years and second and fourth posi- Industrial Conflicts: Inter-Sectoral Data
tions for a few years.
Table 7 provides data in terms of disputes, workers
A percentage analysis of each state's share to total involved, and mandays lost for the public and the
shows that West Bengal accounted for 54.6 per cent of private sectors, for the period 1970-1990. The number of
mandays lost in 1970 and 41.18 per cent of mandays lost disputes in the public sector has fluctuated between 363
in 1989. The share of Maharashtra in mandays lost has and 663, barring a few exceptional years (Graph 5). In
increased from 11.5 per cent in 1970 to 14.95 per cent in 1976, an internal emergency was declared and there
1989. Tamil Nadu accounted for 8.86 per cent in 1970 were few conflicts. The period 1978-1983 has witnessed
and 9.69 per cent of mandays lost in 1989. West Bengal, heightened conflicts with the peak year being 1979. The
Maharashtra, and Tamil Nadu together have con- number of disputes in the private sector has significant-
tributed more than 50 per cent of mandays lost in all ly come down from 2,443 in 1970 to 661 in 1990. The
these years. In 1982, the contribution was as high as number of public sector workers involved in disputes
84.18 per cent. has increased from 4,39,000 in 1970 to 7,05,000 in 1990.
The number of public sector workers involved in dis-
Industrial Conflicts: Percentage putes peaked during 1974, 1979, and 1987. However,
Distribution by Duration the number of mandays lost in the public sector has
peaked during 1974, 1981, and 1982 (Graph 5). The
Table 6 provides percentagewise distribution of dis- higher figures for 1981 and 1982 may be because of
putes by duration for the period 1970-1990. From the
longer duration of disputes. The number of private
table it is evident that nearly a fourth of the disputes
have been for a day or less. Similarly another one-fourth sector workers involved has come down from 13,89,000
in 1970 to 2,10,000 in 1990.

Vol.17, No.3, July-September 1992 15

 Mandays lost in the private sector because of dis- The highest amount of production loss in the private
putes has also come down from 185,01,000 in 1970 to sector was recorded in 1982 whereas the highest
9734,000 in 1990. The peak years were 1982,1983,1984, amount of production loss in the public sector was in
and 1979 (Graph 5). The lowest figure for mandays lost 1981. Wages lost because of disputes have not fluc-
in the private sector was recorded in 1990. tuated much.
A percentage distribution in terms of public and
private sector for number of disputes, workers in- Industrial Conflicts: Performance of
volved, and mandays lost for the period 1970-1990 Conciliation Machinery
shows that the number of disputes in the public sector Table 8 provides data on the performance of the dispute
has increased from 15.4 per cent in 1970 to 42.47 per cent settling machinery for the period 1970-1990. The data
in 1990 and that in the private sector has declined from indicate that the percentage of success has declined
84.56 per cent in 1970 to 57.53 per cent in 1990. Thus, the from 34.4 in 1970 to 13.5 in 1990. The percentage of
two sectors are showing convergent trends in terms of failure has increased from 33.4 in 1970 to 58 in 1990. The
number of disputes. The share of public sector workers indefinite category of conflicts has come down from 15.2
involved in disputes has increased from 24.01 per cent per cent in 1970 to 1.8 per cent in 1990. This shows that
in 1970 to 77.04 per cent in 1990, whereas the share of conflicts are becoming increasingly irreconcilable
private sector workers has declined from 75.18 per cent through conciliation.
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 Industrial Conflicts: Distribution by
mandays lost in private sector disputes has declined Causes
from 89.97 per cent in 1970 to 77.31 per cent in 1990. Table 9 provides percentage distribution of industrial
The data also indicate that production loss has been disputes by causes for the period 1971-1990. Wages and
higher in the private sector than in the public sector. allowances seem to be a significant cause of industrial
Moreover, production loss in the private sector shows disputes accounting for 21.8 per cent to 36.1 per cent of
large fluctuations in comparison to the public sector. the disputes. However, wages and allowances as a
cause of disputes have come down from 34.3 per cent therefore have to evolve an integrated view of human
in 1971 to 25.2 per cent in 1990. Personnel and retrench- resources and to respond constructively and humanely
ment appears to be another significant cause, the figure to conflicting situations in their respective organiza-
varying from as low as 16.7 per cent to as high as 29.9 tions.
per cent. However, the share of personnel and retrench-
ment as a cause of industrial disputes has come down The strategy should consist of negotiated settle-
from 23 per cent in 1971 to 16.8 per cent in 1990. The ments with established trade unions which represent
share of indiscipline and violence as a cause of in- the workers rather than with unions preferred by
dustrial disputes has increased from 3.6 percent in 1971 management. The second ingredient of such a strategy
to 17 per cent in 1990. Bonus as a factor did not con- will be to create a climate for self-development and
tribute much to industrial disputes and its share has self-management by the workers. The shocks of the
come down from 14.1 per cent in 1971 to 3 per cent in structural adjustment programme could perhaps be
1990. One significant trend is that disputes that could absorbed by workers if they are themselves involved in
not be assigned any reason have grown from 23.6 per decision making on economic and technological chan-
cent in 1971 to 37.4 per cent in 1990. In general, conflicts ges. Finally, both managements and workers may have
arise owing to a variety of reasons. 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
Conclusion evolve plans for both economic and social rehabilitation
The analysis of data in the preceding sections shows of managers and workers who may be rendered un-
certain distinct trends. These are as follows: employable and which may add to industrial and social
conflicts.
• There is a congruence between certain industries
and certain regions in contributing to a higher in Industrial conflicts cannot be wished away as long
cidence of industrial conflicts (the jute industry is as there are conflicting interests in the control over
located mostly in West Bengal which is a strongly production processes and in compensating wage
unionized region). labour. Industrialization would certainly lead to higher
industrial conflicts. However, attempts can be made to
• The incidence of industrial conflicts is higher in minimize industrial conflicts by resorting not only to
regions of higher industrial growth. negotiated settlements but also to the democratization
• The states of West Bengal, Maharashtra, and Tamil of industrial relations.
Nadu together contribute to more than 50 per cent Data Sources
of industrial conflicts.
1. Labour Bureau, Pocket Book of Labour Statistics,
• The value of production loss is much higher in the Chandigarh/Shimla, Ministry of Labour, Govern
private sector than in the public sector. ment of India, (Various Issues).
• Of late, industrial conflicts have come down and 2. Labour Network Wing, Network in Labour Statistics
strikes are fewer than lockouts. and Research, Chandigarh, Ministry of Labour,
• Conflicts are lengthening in recent years. Government of India, 1990.

• The closure of textile mills has brought down in 3. Labour Bureau, Labour Bureau's Labour: Master Ref
dustrial conflicts in Maharashtra. erence Book, Chandigarh/Shimla, Ministry of
Labour, Government of India, 1989.
• 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

Vol.17, No.3, July-September 1992 17