Workplace Disputes - Causes and Impact

Conflict can evolve at any level in the workplace. 

Industrial disputes, however, involve a disagreement of a key issue between an employer and its employees (through a trade union), resulting in employees ceasing work.

Disputes must be settled as quickly as possible to ensure no disruption to business activity. They also lead to internal discord within the firm, lower workplace culture, loss of productivity and motivation, negative press and are very costly (the process of arbitration in court is lengthy and very expensive). 

Causes include:

• Remuneration: rates of pay and conditions on a site in violation of agreement

• Negotiation of enterprise agreements: setting new employment conditions

• Job security / loss of employment: downsizing of a firm

• Health and safety: injuries or deaths on the work site

• Managerial policy: negligence, or short-sightedness or disrespect of leader

Industrial Dispute Types:

• Formal / Informal: Formalised disputes require filing of paperwork to Fair Work from both parties to recognise the dispute. Informal: within firm only.

• Overt / Covert: Disputes that are beneath the surface / and those that are clearly recognisable through public actions of employees (Unions) or the firm.

• Strikes: when organised labour is removed from a firm as leverage for their position. Must be legal and attempted good faith resolution prior (Fair Work).

• Lockouts: when the employer takes action to close doors to unionised workers in response to demands.

Resolution:

The strategies and systems to resolve issues in the workplace as quickly as possible to ensure minimal disruption to productivity, morale and revenue (for the firm) and income (for the workers).

The earlier HR can identify and resolve conflict in the workplace, the less impact it has on firm performance (revenues, costs, profitability) and individual morale.