Subject Code: IMT-138

Subject Name : Industrial

a. b. c. d. A. B. C. D.

Relations
INSTRUCTION

Write answers in your own words as far as possible and refrain from copying from the text books/handouts. Answers of Ist Set (Part-A), IInd Set (Part-B), IIIrd Set (Part C) and Set-IV (Case Study) must be sent together. Mail the answer sheets alongwith the copy of assignments for evaluation & return. Only hand written assignments shall be accepted. First Set of Assignments: Second Set of Assignments: Third Set of Assignments: Forth Set of Assignments: 5 Questions, each question carries 1 marks. 5 Questions, each question carries 1 marks. 5 Questions, each question carries 1 marks. Confine your answers to 150 to 200 Words. Two Case Studies : 5 Marks. Each case study carries 2.5 marks.

ASSIGNMENTS
FIRST SET OF ASSIGNMENTS Assignment-I = 5 Marks

PART A
1. Explain the machineries constituted for settlement of industrial disputes. 2. What are the objectives and forms of workers participation in management? 3. Define strike and lockout. When does it become illegal? 4. Discuss the role of collective bargaining in resolving industrial dispute. 5. State the provision of Trade Union Act, 1926 with respect to registration and recognition. Also mention the amendments made in 2002.
SECOND SET OF ASSIGNMENTS Assignment-II = 5 Marks

PART B
1. Explain the method of determination of gratuity. State the conditions in which the employee is eligible and the circumstances when gratuity is forfeited. Include if any amendments have been made.
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2. Discuss briefly the provisions relating to Provident Fund Act, 1952 and mention the latest amendments made therein to the ceiling. 3. Write short notes on any two: a. ILO b. Lay off 4. What are the general causes of industrial unrests during the last two decades in India? 5. What steps can the organization or HR manager take to promote positive industrial relations?
THIRD SET OF ASSIGNMENTS Assignment-II = 5 Marks

PART C
1. Discuss in detail various emerging trends in union management relations. 2. Write briefly on a. Adjudication b. Problems of trade union 3. Discuss whether the nature of Standing Orders is (i) statutory (ii) special contract or (iii) award. Give reasons to support your view. 4. Give a brief note on ESIC Act, 1948 with current information on employer and employee contribution and any other amendments if any. 5. Discuss three conditions necessary for the Parliament to make laws on any matter of the State List.
FOURTH SET OF ASSIGNMENTS Assignment-IV = 2.5 Each Case Study

CASE STUDY - I
Impla Pharmaceuticals Limited. Mohan Ramnath established Geetha Laboratories Private Limited, in 1988 at Chennai. A softspoken gentleman, he was PhD in Chemistry, and did not believe in working under pressure. The company was a small - scale unit manufacturing non -patented anti-malarial medicines. The company had six working days per week, which meant 26 working days in a month, and was running smoothly. In 1978, CITU supported union came into existence. The industrial relations deteriorated making it difficult for the company to survive. In 1998 Ramnath decided to enter into partnership with three other partners, Chandan Keshav, Bharat Pathak and Veenu
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Ramachandran to overcome the difficulties faced by him. The company came to be known as Geetha Laboratories Limited. Even after this, the industrial relations did not improve till 1990, and it was during this period that 14 workers were sacked in1990, Ramnath decided to sell his shares to Emission pharmaceuticals, a multinational, though other partners continued. Now, the company was called German Drug House (GDH). During this period CITU withdrew support to the union and Bhartiya Mazdoor Sangh (BMS) entered the scene. An average increment of Rs.225 was given to all workers where upon industrial relations improved to some extent. IMPLA Pharmaceuticals Limited was another non-patented anti-malarial bulk drug manufacturing giant having unit at Poona, Mysore, Hyderabad, Coimbatore and Corporate Office at Baroda. It wanted to have monopoly in the anti malarial drug manufacturing by taking over GDH. But before taking such step, they wanted to assess the internal condition of the company. Therefore, in January, 1994 Vishal Shrivastav, a qualified Chartered Accountant, was inducted as Director by purchasing a requisite' number of shares of the company. In September 1994 after IMPLA was convinced about the favourable conditions of GDH it formally took over the company. At that time the manpower strength of the plant was 210 in which130 were workers and 80 were executives and staff members. After taking over, IMPLA made many changes and the major ones were:1. They increased the salaries of executives and staff of the unit to reduce the gap in the pay, structure if the executives and, staff of this unit, and their other units.2. They invested 3-4 crores for up gradation of the plant.3. They shifted from 6 days working per week to 7 days working per week to improve the productivity and enhance cost effectiveness of the unit. The shift from 6 working days to 7 days in a week without any financial gains made workers resist the change. At this juncture Sumeet Joshi, Corporate Manager (IR) intervened and promised, the workers that they would be paid for 30 days instead of 26 days, but Ravi Shriman, Director (Personnel) and Vishal Shrivastav GM(Operations) refused to agree to this since they were not involved when Sumeet Joshi made the commitment. The promise was not fulfilled which further complicated the problems. The issues kept on lingering for 6 months. No decision could be taken because of the difference of opinion among senior executives. In June 1995 the workers geared Vishal Shrivastav to pressurize the management to take the decision. They were successful to some extent as the management made an agreement with workers that financial benefits would be given with retrospective effect of 4 years making it one additional year over and above 3 years of normal agreement. They were asked to give a notice of change, which the workers could not give till December 1995 because of disagreement among themselves. It was felt at this point of time by Shrivastav that the plant should have an Assistant Manager(personnel) instead of a Personnel Officer. Ajit Dubey, Assistant Manager(Personnel) was appointed in October 1995, but even this appointment took 3-4months because of discord in opinions of Shrivastav and Shriman.
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In December 1995 the workers gave a notice of a change demanding an increase of Rs.2200 per month. In January 1996 management gave a notice of change. In February 1996 the negotiations started and continued till July 1996. Shrivastav Rajkumar the new Corporate Manager (IR), Ajit Dubey and Kishore were to represent the management side and nine members of the union were to represent the workers, besides V.D. Agrawal the General Secretary of BMS. The first two rounds of meeting did not lead to any solution, as none of the parties were ready to Budget. This made V.D. Agrawal withdraw as he was fed up with the rigid stand of the union leaders. The third meeting was held without Agrawal where in the union leaders came down to Rs.1200 from Rs.2200 p.m. The minutes of the meeting were jotted down but the union leaders refused to sign. Taking advantage of the occasion, Dubey and Shrivastav had a secret meeting with Agrawal in hotel. Agrawal advised the representatives of the management to maintain a low key for a few months to crack Dubey that there were perceptual differences between senior and junior union leaders. Taking cue from this, Dubey adopted a policy of 'divide and rule' and took into confidence Devilal, the senior union leader. They had a secret meeting with him to explore' the last settlement amount and appraised him that the management could go only up to Rs.450. He also took Janak Singh, the junior union leader into confidence and convinced him that management was not going to bend before. Their demands and as such, the workers were going to be the ultimate sufferers. Besides this, Dubey spread the message that no wages would be given retrospectively. The next day meeting resumed in which union representatives came to Rs.750(because of the pressure from the workers) beyond which they were not ready to come down. It was decided that instead of having meeting with all the members, only two members, one senior union leader, Devilal and one junior union leader, Janak Sigh would sit in the negotiations. Immediately a meeting between Shrivastav, Rajkumar, Devilal and Janak Singh was held and it was resolved thatRs.575 average per month would be given for 4 years retrospectively. A Memorandum of Understanding (MOU) was drafted by legal consultant at corporate office and was duly signed by Shrivastav, Rajkumar, Dubey and all the union representatives. In the evening, a dinner was hosted in which all the negotiations were invited. When the papers were sent to R. Shriman, he objected to MOU on two points. First the other plants were having 30 days pay system leading to less average pay per day while in Chennai plant it was to be given for 26 days leading to higher average per day. Second, the milk allowance given for overtime at Chennai unit was higher than other units. It took Shrivastav and Rajkumar two months to convince Shriman to get the agreement implemented. Rs.14 to 15 lakhs were spent for all the 160 workers within a week to pay the arrears, and the issue was settled.

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Questions: 1. Was it right for Mr. V.D. Agrawal to withdraw half way during negotiations? 2. Was it ethical 'to use the tactics used by the management in this case'? 3. Should Director (Personnel)" have raised objections after MOU (Memorandum of Understanding) was signed?

CASE STUDY-II
V.J. Textiles is a leading industry having a workforce of more than 1200 employees, engaged in the manufacture of cotton yarn of different counts. The company has a well-established distribution network in different parts of the country. It has modernized all its plants, with a view to improve the productivity and maintain quality. To maintain good human relations in the plants and the organisation as a whole, it has extended all possible facilities to the employees. Compared to other mills, the employees of V.J. Industries are enjoying higher wages and other benefits. The company has a chief executive, followed by executive's in-charge of different functional areas. The Industrial Relations Department is headed by the Industrial Relations Manager. The employees are represented by five trade unions - A, B, C, D and E (unions are alphabetically presented based on membership) - out of which the top three unions are recognised by the management for purposes of negotiations. AII the unions have maintained good relations with the management' individually and collectively. For the past ten years, the company has been distributing bonus to the workers at rates more than the statutory minimum prescribed under the Bonus Act. Last year, for declaration of rate of bonus, the management had a series of discussions with all recognised unions and finally announced a bonus, which was in turn agreed upon by all the recognised unions. The very next day when the management prepared the settlement and presented it before the union representatives, while Unions A and C signed the same, the leader of Union B refused to do so and walked out, stating that the rate of bonus declared was not sufficient The next day. Union B issued a strike notice to the management asking for higher bonus. The management tried its level best to avoid the unpleasant situation, but in vain. As a result, the members of Union B went on strike. They were joined by the members of Union D. During the strike, the management could probe the reason for the deviant behaviour of Union B leader; it was found that leader of Union A, soon after the first meeting, had stated in the presence of a group of workers, "It is because of me that the management has agreed to declare this much amount of bonus to the employees. Union B has miserably failed in its talks with the management for want of initiative and involvement".
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This observation somehow reached the leader of Union B as a result of which he felt insulted. Soon after identifying the reason for Union B's strike call the Industrial Relations Manager brought about a compromise between the leaders of Unions A and B. Immediately after this meeting the strikers members of Unions B and D) resumed work and the settlement was signed for the same rate of bonus as was originally agreed upon. Questions 1. 1.Was the leader of Union A justified in making remarks which made the leader of Union B feel offended? 2. What should be management's long term strategy for avoiding recurrence of inter-union differences on such issues? 3. If you were the Industrial Relations Manager what would you have done had the Union B resorted to strike for a reason other than that mentioned in the case.

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