Main causes of labor disputes are as follows:
1. Economic Causes
Economics causes of labor disputes are related to the variables consisting of interest disputes which are concerned with the economic condition of workers and management. The variables under it are as follows:
- Compensation
- Bonus
- Working conditions
- Industrial problem
2. Managerial Causes
The unfair labor practice by the management too lead to labor disputes. Sometimes, management performs insufficient and unfair policies and procedures to raise organizational profit. But such unfair practices enrage the workers and lead to labor disputes. They are reflected by:
- Non-recognition of unions
- Selection and development
- Job security
- Leadership style
- Communication
3. Political And Legal Causes
This refers to all political and legal forces that affect labor dispute in the organization. Political instability and poor legal procedures affect industrial peace to a large extent. Some of its components are:
- Political interference
- Union conflict
- Political change
4. Psychological Forces
Everyone has his/her own psychological feelings, attitudes and beliefs. This difference in beliefs and psychological aspects of individuals may bring some labor disputes in the organization. Some of the psychological causes are:
- Motivation
- Appreciation
- Authority and responsibility
- Unfair treatment
