Course Code: HRM 516 Course Title: Industrial relations

and labour laws

Course Instructor: Dr. Shikha Goyal
Academic Task No.: ca 2 Academic Task Title: Industrial unrest at
tesco cranes
Date of Allotment: 16 march,2020 Date of submission:26 march 2020
Student’s Roll no: B 22 Student’s Reg. no: 11901216
Evaluation Parameters:

Learning Outcomes: (Student to write briefly about learning obtained from the academic tasks)

Declaration:
I declare that this Assignment is my individual work. I have not copied it from any other student’s
work or from any other source except where due acknowledgement is made explicitly in the text, nor
has any part been written for me by any other person.
Student’s Signature: Sonakshi dhawan

Evaluator’s comments (For Instructor’s use only)

General Observations Suggestions for Improvement Best part of assignment

Evaluator’s Signature and Date:

Marks Obtained: _______________ Max. Marks: ______________
 Peer rating

Dewesh: 10
Sonakshi: 10
Shubham: 7
Sahib: 10
Divyam: 10
 INDUSTRIAL UNREST AT TESCO CRANES
INTRODUCTION:
TESCO belonged to the category of SME’s(Small and Medium Enterprises)
which was engaged in the manufacturing of construction equipment. It owned
3 plants in all: two on the outskirts of Faridabad in the state of Haryana, India
and a third one, a sub-assembly plant which was located in the heart of
Faridabad New Township.
Initially Gera and his brother started the business of metal fabrication in the
year 1980.Later on Gera incorporated it under the name Tesco Cranes
Engineers Pvt. Ltd. in 1994.

CHALLENGES:
 One of the major challenge that the company faced was that their
employees started joining hands with the Regional Trade Union under
whose influence they started demanding increase in wages and
reduction in the workload of production.
 Another major challenge was that the Trade Union was trying to
politicalize the issue due to which it was getting really difficult for the
management to resolve the issues.
 Ego clash was also one of the reason due to which both the parties were
not ready to accept and adjust or to come to a win-win situation which
ultimately led to the closure of the sub-assembly plant.
 When Gera suspended the workers, other workers went on a strike for
the demand of withdrawal of suspension.
 Another challenge that the company faced was the increase in cost. Such
situations in the company led to increase in cost.
 Company faced huge losses due to the lock out which resulted in the
closure of the plant after lockout of 3 months.
  Loss of confidence of customers in the company was also one of the
challenge that the company faced.

SUGGESTIONS IN THE CASE:

 Firstly, Gera called the union leader of All Escort Employees Trade Union to negotiate
with the workers regarding the issues but it got failed as workers were not ready to
negotiate.
 The dispute now landed with the India’s Conciliation machinery where management
was not able to establish that there already existed a bargained wages and workload
structures.
 Later on, Gera started taking disciplinary actions against which he suspended six
workers who instigated the slow-down and some other workers were too charged
for riotous behavior.
 In case of Tesco Cranes the best possible action would have been peaceful Industrial
Relation based on mutual trust and faith between parties.
 Geru should have controlled his anger and ego in dealing with worker, because
worker should have shown trust in management.
 There should be care, compassion for worker, joint consultation and proper
participation.
 A smooth functioning of industrial relation in establishment is required.
 Never take your worker for granted and treat them as resource rather than individuals.
 Must discuss or provide the information on production quotas with his worker.
 Given the legal and social framework of trade union and industrial relation in India
the importance of conflict management cannot be dismissed as thing of the past and
has been the popular impression among the management.
 This is very crucial for any organisation to establish the nature an acceptable and
sustainable system of organisational justice.
 It is not advisable for management to ignore employee’s perception, feeling concern
and grievances.
 Gera should try to listen to worker and show real empathy towards them.

CONCEPTS RELATED TO THE CASE:

Concepts relating to Industrial relations in the case

are:-
 Compensation: Compensation is the monetary benefit which is given to an
employee or worker giving their services to an organization. Compensation
includes components like salary, wages, bonuses etc. The compensation
provided helps in motivating the employees, build their career and ensure
 that their are committed in achieving the company goals.According to the
case one of the major demand of the workers was that they were not
provided proper compensation and remuneration for the way they were
working and pledged the management to increase their wages and double
the wages which the management did not agree to which in turn created
the brawl between the employees and management.
 Lockouts : Industrial action during which an employer withholds work, and
denies employees access to the place of work. In effect, it is a strike by the
management to compel a settlement to a labor dispute on terms favorable to
the employer. When lock out action is taken by several employers in concert,
it is called a joint lockout. Also called shut out. After the disagreement
between the employees and the management it resulted into a total lockdown
for the plant which had not happened for TESCO since they were into
productions.
 Strike : Collective, organized, cessation or slowdown of work by employees,
to force acceptance of their demands by the employer. In most jurisdictions
require that to be legal (1) a strike must be approved by the majority of the
employees in a secret ballot, (2) the ballot must be subject to independent
verification if the number of employees exceeds a certain number (commonly
50), (3) a notice of the impending strike ballot must be given to the employer a
certain number of days in advance (commonly seven), (4) the employer must
be provided with the results of the ballot and, thereafter, (5) a notice of the
union's intention to proceed with the strike must be given to the employer a
certain number of days in advance (commonly seven).
 Conciliation : Conciliation is a voluntary proceeding, where the parties
involved are free to agree and attempt to resolve their dispute by conciliation.
The process is flexible, allowing parties to define the time, structure and
content of the conciliation proceedings. These proceedings are rarely public.
There was a a situation where Mr. Gera and the union leaders were sitting for
reconciliation but it did not turn out to be quite fruitful for the plant as at the
end we can see that the plant was shut down.
 Negotiation : Negotiations can be called as a way of resolving disputes. It is
considered as being synonymous to settlement, agreement, collaboration and
bargaining. It takes place almost in all spheres of life -be it is business,
personal circumstances (married life, parenting, etc.), legal procedures,
government matters, etc. Negotiation can be defined as a channel of
communication intended to reconcile differences between parties and to settle
conflict jointly. The parties aim at achieving a win-win position. Business
Negotiations requires a lot of homework, such as asking what is the need of
negotiation, who all are involved, what are their view points, what are your
aims, what is expected from negotiation, etc. Negotiation involves minimum of
two parties. The aim of negotiation is understood by both parties. The parties
are willing to arrive at a mutually agreeable outcome. The outcome is
acceptable to both parties. The major impactful thing where both the parties made
it a lose-lose situation was that nobody was ready for negotiation and if they would
have negotiated among themselves the situation would not have become so worse
and in the end they had to shut down the factory as a whole.