The employers often do not have the capital to pay the employees. They were facing the issues of rising competition from the world markets. They needed to sustain and this was the reason for the employers to reduce the wages. This is the reason for the employers to focus on automation and look for ways to reduce the wages. This was to reduce the capital costs and increase the profits.
The free market principles had caused an increase in the competition and there was inflation in the market. The companies had to find ways to reduce costs. Nevertheless, the employers tried to overcome this by exploiting the employees. The employees were made to work for longer hours in unsafe work places. These caused burdens to all the stakeholders involved in the process.
Added to this, the nebulous nature of the laws, political climate and the economic issues had made the employers to focus on the ways to reduce the wages, increase automation and look for ways to reduce benefits. They were not able to meet the employee need. The employers started to consider that the employee was exploiting them. There was an increase in the acrimonious relationships between different stakeholders.