PEIE
Overview of
Industrial-Relations Seminar
Industrial
Dispute
Dr Fawzi Mubarak Al Kiyumi
20 August 2013
Agenda
Introduction
Industrial Dispute
IR Systems Concept
Labour Dispute Cases
Most common workplace conflicts
Consequences of industrial disputes
Introduction
An industrial dispute may be defined as a conflict or difference of
opinion between management and workers on the terms of
employment.
Industrial relations has three faces: science building, problem solving,
and ethical.
Industrial relations scholars see:
1. that labor markets are not perfectly competitive, employers typically
have greater bargaining power than employees.
2. There are some inherent conflicts of interest between employers and
employees (for example, higher wages versus higher profits) and
therefore, conflict is seen as a natural part of the employment
relationship.
Hence, When labor markets are seen as imperfect, and
when the employment relationship includes conflicts of
interest, then one cannot rely on markets or managers to
always serve workers’ interests, and in extreme cases
to prevent worker exploitation.
Industrial Dispute
The causes of industrial disputes can be broadly
classified into two categories:
1. Economic.
The economic causes will include issues
relating to compensation: wages, bonus,
allowances, and conditions for work,
working hours, leave and holidays without
pay, unjust layoffs and retrenchments.
2. non-economic causes.
The non economic factors will include
victimization of workers, ill treatment by staff
members, sympathetic strikes, political
factors, indiscipline etc.
Major Elements IR Systems Concept
Industrial relations system consists of three agents – management
organizations, workers and formal/informal ways they are
organized and government agencies.
Actors (workers, unions, mgmt, government)
Contexts (labor and product markets, technology, community)
Processes (unilateralism, individual bargaining, legislation,
adjudication)
Ideology (minimal shared beliefs; the “glue” that gives systems
stability)
Rules (broadly defined) or Outcomes (pay, benefits, work rules,
working conditions, job satisfaction, industrial democracy, peace
John Dunlop 1950s
and conflict, productive efficiency)
IR System Concept:
(workers, unions,
mgmt, government)
Actors
(labor and product
markets, technology, Contexts
community)
(unilateralism, individual
bargaining, legislation, Processes
adjudication, “CB”)
(minimal shared beliefs;
the “glue” that gives
Ideology
systems stability)
Rules or
Outcomes
(broadly defined)
or Outcomes
(pay, benefits,
work rules,
working
conditions, job
satisfaction,
industrial
democracy, peace
and conflict,
productive
efficiency)
Industrial-Relations model:
Three key factors in management-labor relationship
Environmental
key actors
Rules that are
derived from
these interactions
that govern the
employment
relationship.
Rules or
Outcomes
Industrial Relation System
Actors in the IR system:
Table 1.1 Labour Dispute Cases Registered by the Ministry of Manpower;
Number of dispute cases filed in the
Year
Labour Court
Number of cases
Number of labour disputes
transferred to court
reviewed at court
1997
4165
NA
NA
1998
3072
NA
NA
1999
4307
NA
NA
2000
4356
1189
NA
2001
4714
1496
2011
2002
5028
2011
2675
2003
4590
1469
2427
2004
NA
NA
2707
2005
NA
NA
NA
2006
NA
NA
NA
2007
NA
NA
NA
2008
4592
1341
596
2009
3228
865
865
2010
3016
927
1031
2011
8169 *
2059
NA
total labour force 1,451,165
* Year 2010 Labour disputes 1130 Omani and 1886 Expats * Year 2011 Labour disputes 4500 Omani and 3669 Expats
Most common workplace conflicts
The most common causes of conflict were found to be:
(86%) warring egos and personality clashes.
(73%) poor leadership
(67%) lack of honesty
(64%) stress
(59%) clashing values
At the top of the list was personality clash.
Warring Egos, Toxic Individuals, Feeble Leadership, A study of conflict in the
Canadian workplace, Psychometrics Canada, February 4, 2009
‫‪Sample of common workplace conflicts in Oman‬‬
‫االجمالي‬
‫رفع االيقاف عن العمل‬
‫الغاء قرار الفصل‬
‫الغاء االنذار‬
‫تعويض عن االضرار‬
‫مكافأة نهاية الخدمة‬
‫الترحيل الى بلده‬
‫التعويض عن الفصل‬
‫تسليم جواز السفر و تذاكر السفر‬
‫اجر بدل االخطار عن انهاء عقد العمل‬
‫‪0.09‬‬
‫اجراالجازة السنوية‬
‫‪7‬‬
‫‪7 416 345 125 124 205‬‬
‫‪0.10‬‬
‫‪0.08‬‬
‫‪0.17‬‬
‫‪0.05‬‬
‫‪54%‬‬
‫‪14 184 2443‬‬
‫‪0.075‬‬
‫‪0.006‬‬
‫‪0.003‬‬
‫‪0.084‬‬
‫‪0.051‬‬
‫‪58%‬‬
‫اجر العمل االضافي‬
‫‪0.01‬‬
‫‪0.01‬‬
‫‪0.01‬‬
‫‪0.07‬‬
‫‪0.02‬‬
‫اجور شهرية‬
‫‪68 4592‬‬
‫‪29‬‬
‫‪53‬‬
‫‪75 799 411 352 440 329‬‬
‫‪1004 118 216‬‬
‫‪0.03‬‬
‫‪1.1.2008 31.12.2008‬‬
‫‪0.22‬‬
‫‪31%‬‬
‫‪0.051‬‬
‫‪0.141‬‬
‫‪0.170‬‬
‫‪0.003‬‬
‫‪40 61‬‬
‫‪0.02‬‬
‫‪0.016‬‬
‫‪604‬‬
‫‪1.1.2009 5.9.2009‬‬
‫‪0.25‬‬
‫‪29%‬‬
‫‪Reference Disputes Settlement Department 2008 / 2009‬‬
Consequences of industrial disputes
Employer
Decrease in output
Increase in cost of production
Fall in sales and fall in profit
Loss of good will
Employee
Loss of income
Psychological and physical consequences of forced job loss
The threat of loss of employment
Nation
Adverse effect on the national productivity and national income.
Wastage of national resources
Political and Economical instability