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The economic development of any nation is closely related to its industrial progress. Men,
machine, materials, money and management, are the important factors for the growth of
industries. Of these, the human factor stands foremost and constitutes the basis for successful
working of any undertaking. An industry is generally known by the product it produces. The
quality of the product in turn depends mainly on the skill and efficiency of the workers in the
industry. Thus the factors that affect the workers of a concern indirectly affect the production.
In any industry the main concern of the management is to see whether the production is
maintained at the desired level. To achieve this, the management has to boost the morale of
the workers through implementation of various welfare schemes along with proper working
conditions. When the management fails to do so the result is low productivity, frequent
disputes leading to strikes, lockouts, loss of man days and an unsatisfactory employer-
employee relationship. A good industrial relations system provides the right atmosphere in
which differences and disputes are brought forward for discussion and subsequent peaceful
settlement. Hence, maintenance of sound labour-management relations is essential without
which the industrial machinery will slow down and come to a grinding halt. In a growing and
labour-abundant economy like India, industrial relations have special significance, more so in
the public sector.

With the changing industrial landscape of the country and the dispersal of activity a process
of 
 of workers has set in. New working class areas have come into
being and old ones are expanding. The National Commission for Labour has observed-G

  
 


  
  
      
  

 
 
 



 
   
 
 

 


 
  
   
  
    

  
   

  

The main characteristics of the Indian Class is cosmopolitan though earlier, the
labour force in factories, mines, and plantations was generally provided by the lower castes,
the depressed classes and unfortunate in the society. Though caste and occupation have
always interacted and the relations between the two have been elastic in our society, social
mobility today accounts for emergence of a mixed work force. While in traditional industries
this change has been somewhat slow but it has been more significant in sophisticated
employment like engineering, metal trades, oil refinery and distribution, chemical and
petrochemicals, machine tools and machine building and in many white collar occupations.

The old social barriers have rapidly broken down and the so-called high class people for
manual work is gradually vanishing because the groups themselves have not retained their
separate identity as of old because the jobs are no longer wholly manual. Higher skills, better
education and better wage level have also helped in removing these distinctions between the
manual and non-manual workers. Besides in earlier stages, male workers used to predominate
the workforce but now women workers have increasingly taken to various industrial
activities. Today people of different caste, communities, ethnic groups, religious beliefs, with
different languages and coming from different religions work in an organization. The result is
that the Indian Labour force though changing constantly, but still sharply divided into high
and low, skilled and unskilled classes. With increased regionalism and parochialism coupled
with strong political unionism the problem is becoming worse than what it was before. No
climate has yet fully developed for what one may call µvertical integration¶, in which all
elements stand together in a collective bargaining effort to force improvement in wages,
hours and conditions of work. Sometimes even a rather good trade union has not proved very
effective in dealing with basic economic problems.

With a view to ensure job security and satisfaction to the labourers and to give them their due
wages along with all kinds of employment benefits, the Government of India has enacted
various labour legislations since independence. In order to prevent exploitation of labourers
by the employer and to give them all their privileges and dues the labour legislations have
been modified time to time according to the changes in social and economic scenario in
India.In India we have a plethora of Laws which deals with issues concerning Labour
administration, labour welfare, regulation of industrial relations between the management and
the workers. For the effective and efficient management of labour in an industry or an
organization it is necessary to have a complete knowledge of the Laws, bye laws, regulations
and ordinances applicable to the industry in general and to the company or organization
specifically. The laws and bye laws applicable to labour issues and interests provides for
various compliances in accordance with procedures lay therein. The labour welfare work,
thus, covers a wide range of activities and in its present form is widely recognized and is
regarded as an integral part of the industrial system and management.

Labour is one of the basic resources of any industry and has an important bearing on the
performance and goals of the organisation. In India we have a plethora of Laws which deals
with issues concerning Labour administration, labour welfare, regulation of industrial
relations between the management and the workers. For the effective and efficient
management of labour in an industry or an organisation it is necessary to have a complete
knowledge of the Laws, bye laws, regulations and ordinances applicable to the industry in
general and to the company or organisation specifically. The laws and bye laws applicable to
labour issues and interests provides for various compliances in accordance with procedures
laid therein. The labour welfare work, thus, covers a wide range of activities and in its present
form is widely recognized and is regarded as an integral part of the industrial system and
management.

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Wikipedia, the internet encyclopaediadefines labour law as ³Labour Law is the body of laws,
administrative rulings, and precedents which address the relationship between and among
employers, employees, and labour organizations, often dealing with issues of public law´.
The terms Labour Laws and Employment Laws, are often interchanged in the usage. This has
led to a big confusion as to their meanings. Labour Laws are different from employment laws
which deal only with employment contracts and issues regarding employment and workplace
discrimination and other private law issues.Labour Lawsharmonize many angles of the
relationship between trade unions, employers and employees. In some countries (like
Canada), employment laws related to unionised workplaces are different from those relating
to particular individuals. In most countries however, no such distinction is made. The final
goal of labour law is to bring both the employer and the employee on the same level, thereby
mitigating the differences between the two ever-warring groups.

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Labour laws emerged when the employers tried to restrict the powers of workers'
organisations and keep labour costs low. The workers began demanding better conditions and
the right to organise so as to improve their standard of living. Employer¶s costs increased due
to workers demand to win higher wages or better working conditions. This led to a chaotic
situation which required the intervention of Government. In order to put an end to the
disputes between the ever-warring employer and employee, the Government enacted many
labour laws. In India the labour laws are so numerous, complex and ambiguous that they
promote litigation rather than the resolution of problems relating to industrial relations. The
labour movement has contributed a lot for the enactment of laws protecting labour rights in
the 19th and 20th centuries. The history of labour legislation in India can be traced back to
the history of British colonialism. The influences of British political economy were naturally
dominant in sketching some of these early laws. In the beginning it was difficult to get
enough regular Indian workers to run British establishments and hence laws for chartering
workers became necessary. This was obviously labour legislation in order to protect the
interests of British employers.

The British enacted the Factories Act with a really self-centered motive. It is well known that
Indian textile goods offered serious competition to British textiles in the export market. In
order to make India labour costlier, the Factories Act was first introduced in 1883 because of
the pressure brought on the British parliament by the textile moguls of Manchester and
Lancashire. Thus we received the first stipulation of eight hours of work, the abolition of
child labour, and the restriction of women in night employment, and the introduction of
overtime wages for work beyond eight hours. While the impact of this measure was clearly
for the welfare of the labour force the real motivation was undoubtedly the protection their
vested interests.India provides for core labour standards of ILO for welfare of workers and to
protect their interests. India has a number of labour laws addressing various issues such as
resolution of industrial disputes, working conditions, labour compensation, insurance, child
labour, equal remuneration etc. Labour is a subject in the concurrent list of the Indian
Constitution and is therefore in the jurisdiction of both central and state governments. Both
central and state governments have enacted laws on labour issues. Central laws grant powers
to officers under central government in some cases and to the officers of the state
governments in some cases.

Among the plethora of modern Labour Laws, the Workmen¶s Compensation Act, 1923 is the
oldest one. Some of the other significant Labour legislation are the Trade Unions Act, 1926,
the Payment Of Wages Act, 1936, the Industrial Disputes Act, 1947, the Minimum Wages
Act, 1948, the Factories Act, 1948, the Employees¶ State Insurance Act, 1948, The
Employees¶ Provident Fund and Miscellaneous Provisions Act,1952, the Payment Of Bonus
Act,1965 and the Payment Of Gratuity Act,1972.
After independence, time to time these laws are enacted and again at intervals many of the
major provisions of the various laws are amended several times keeping in mind the changing
social and economic situation of the country and varying need level of these cosmopolitan
labour force.

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An extensive study has been made by me in order to show the applicability of the various
Labour legislations and its modification till today in IOCL, which is one of the most
important P.S.U in India. The important Labour laws are as follows:

† The Contract Labour (R&A) Act, 1970 & Rules.

† The Employees¶ Provident Fund & MP Act, 1952.

† The Employees¶ State Insurance Act, 1948.

† The Factories Act, 1948.

† The Payment of Gratuity Act, 1972.

† The Shops and Establishments Act.

† The Payment of Wages Act, 1936.

† The Building and Other Construction Workers (Regulation of Employment and

Conditions of Service) Act, 1996.

† The Equal Remuneration Act, 1976.

† The Industrial Disputes Act, 1947.

† The Workmen¶s Compensation Act, 1923.

† The Minimum Wages Act, 1948.

† The Payment of Bonus Act, 1965.

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 and the largest commercial
enterprise accountingfor !"#share in the petroleum products market=
!$#share in refining
capacity and Î"# downstream sector pipelines capacity in India with products ranging from
petrol, diesel, LPG, Auto LPG, Aviation Turbine Fuel,
lubricants, naphtha, bitumen, paraffin, kerosene etc.For the year 2008-09, the Indian Oil
group sold Î Î tonnes of petroleum products, including %" tonnes of natural
gas, and exported &Î! tonnes of petroleum products.


is India¶s flagship national oil company and downstream petroleum major with a sales
turnover of   "%$"! 
with a netprofit at  %$ $ 
for the fiscal ended2009-
10‘Indian Oil is also the highest ranked Indian company in the prestigious è

 '( 
)$$' listing, having moved up 11 places to the %$) position in 2009 and it is ranked &%% in
è
 $$$ List of Global Corporations.

Beginning in %*)* as     +     was formed in %*Î!
with the merger of  


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%*)-). Being as essential requirement for the
country¶s economic progress it was given a lot of importance and stress, by the Government
of India, to expand and cater the ever increasing energy needs of the country. The company
has expanded rapidly and its turnover has reached an astounding height in a span of about
four decades.

The Indian Oil Group of companies owns and operates %$   ' $ 


 with a

 
    Î$   
  
 
 
 ,../
 
 % 
  
 
  0 These include two refineries of subsidiary Chennai Petroleum
Corporation Ltd. The Corporation's cross-country network of crude oil and product pipelines,
spanning over %$$$$  and the largest in the country, meets the vital energy needs of the
consumers in an efficient, economical and environment-friendly manner.   

!&!$$ 
,123%$-0


 $$"% in augmentation of
refining and pipeline capacities, expansion of marketing infrastructure and product quality up
gradation as well as in integration and diversification projects.

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To achieve international standards of excellence in all aspects of energy and diversified

business with focus on customer delight through value of products and services, and cost
reduction; To maximize creation of wealth, value and satisfaction for the stakeholders; To
attain leadership in developing, adopting and assimilating state-of-art technology for
competitive advantage; To provide technology and services through sustained Research and
Development; To foster a culture of participation and innovation for employee growth and
contribution; To cultivate high standards of business ethics and Total Quality Management
for a strong corporate identity and brand equity; To help enrich the quality of life of the
community and preserve ecological balance and heritage through a strong environmental
conscience.

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Indian Oil Corporation has four major divisions:

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 54


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I have done my project in the Employee Relations (ER) Department at the Eastern Regional
Office of the Marketing Division of Indian Oil Corporation.

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Indian Oil has one of the largest petroleum marketing and distribution networks in Asia, with
over &)$$$ marketing touch points. Its ubiquitous petrol/diesel stations are located across
different terrains and regions of the Indian sub-continent.   /

 petrol,   .

diesel, 2
 lubricants, 
LPG,

 LPG,   
  are some of its
prominent brands. The Marketing Division plays a crucial role in looking after the
   +/(   and   

  . There are 
 
  

(North, South, East and West) and 
 2 
 
 under this division.  


.
  is in charge of coordinating among all the divisions.

Indian Oil refineries process all major indigenous crude oil plus over &Î 
  



      

 
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 ranging from
light distillates, such as LPG, naphtha and motor spirit, to heavy ends, such as furnace oil and
low sulphur heavy stock. The flexibility of processing capability allows Indian Oil to vary
both its crude oil inputs and petroleum product outputs to achieve the company¶s desired
production mix. To meet the growing domestic demand for middle distillate products, such as
HSD and superior kerosene oil, Indian Oil has invested in secondary processing facilities to
produce these higher value added products.
IndianOil has been adjudged India's No. 1 brand by UK-based Brand Finance, an independent
consultancy that deals with valuation of brands. It was also listed as India's 'Most Trusted
Brand' in the 'Gasoline' category in a Readers' Digest - AC Nielsen survey. In addition,
IndianOil topped The Hindu Business line¶s "India's Most Valuable Brands" list. However,
the value of the IndianOil brand is not just limited to its commercial role as anenergy
provider but straddles the entire value chain of gamut of exploration & production, refining,
transportation & marketing, petrochemicals & natural gas and downstream marketing
operations abroad. IndianOil is a national brand owned by over a billion Indians and that is a
priceless value.


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Indian Oil Corporation Ltd. operates a network of 10329 km long crude oil and petroleum
product pipelines with a capacity of 71.60 million metric tonnes per annum. Cross-country
pipelines are globally recognised as the safest, cost-effective, energy-efficient and
environment-friendly mode for transportation of crude oil and petroleum products. During the
year 2008-09 IndianOil¶s crude oil pipelines registered the throughput of 38.46 million metric
tonnes. Corporation¶s largest crude oil handling facility at Vadinar marked the berthing of
4000th tanker since inception. The terminal operates two offshore Single Point Mooring
(SPM) systems, to feed Koyali, Mathura and Panipatrefineries.

Raising efficiency and emerging as the least-cost supplier, IndianOil has added the 330-km
Paradip-Haldia crude oil pipeline (PHCPL) to its bustling pipeline network during the year.
The PHCPL system has a Single Point Mooring installed 20-km off the Paradip coast. With
this, it is now able to pump crude oil from Very Large Crude Carriers to the tank-farm set
uponshore and onward to Haldia through the pipeline. The Pipeline has replaced the earlier
system of receipt of crude oil at Haldia port through smaller tankers.
On the west coast, the Mundra-Panipat pipeline is being further augmented to transport an
additional 3 Million Metric Tonne Per Annum (MMTPA) of crude oil to Panipat Refinery,
under expansion from 12 to 15 MMTPA. Additional requirement of crude oil for Koyali,
Mathura and Panipat refineries is planned to be met by de-bottlenecking and augmenting
Salaya-Mathura pipeline system. IndianOil¶s product pipelines, connecting its refineries
directly to high-consumption centres, achieved a throughput of 20.92 million tonnes during
2008-09. IndianOil has now joined the select group of companies in India which owns and
operates LPG pipelines by building its first such cross-country facility linking Panipat with
Jalandhar. Apart from providing better logistics, this pipeline can transport 700,000 tonnes of
LPG from Kohand near Panipat refinery to IndianOil¶s bottling plants at Jalandhar and Nabha
in Punjab. The pipeline will also simultaneously to meet the requirement of LPG at Una and
Baddi in Himachal Pradesh and at Jammu and Leh in J&K. 

Two pipelines linking the major airports of India have been commissioned during the year to
transport Aviation Turbine Fuel to these airports. The 36 km long pipeline from existing
Devangonthi terminal to New Bengaluru International Airport, Devanhalli, and Bengaluru
was commissioned in October 2008. The 95 km long ATF pipeline from CPCL to Chennai
AFS was commissioned in December 2008.

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Born from the vision of achieving self-reliance in oil refining and marketing for the nation,
IndianOil has gathered a luminous legacy of more than 100 years of accumulated experiences
in all areas of petroleum refining by taking into its fold, the Digboi Refinery commissioned in
1901.IndianOil controls 10 of India¶s 20 refineries. The group refining capacity is 60.2
million metric tonnes per annum (MMTPA) or 1.2 million barrels per day -the largest share
among refining companies in India. It accounts for 33.8% share of national refining
capacity.The strength of IndianOil springs from its experience of operating the largest
number of refineries in India and adapting to a variety of refining processes along the way.
The basket of technologies, which are in operation in IndianOil refineries include:
Atmospheric/Vacuum Distillation; Distillate FCC/Resid FCC; Hydrocracking; Catalytic
Reforming, Hydrogen Generation; Delayed Coking; Lube Processing Units; Visbreaking;
Merox Treatment; Hydro-Desulphirisation of Kerosene&Gasoil streams; Sulphur recovery;
Dewaxing, Wax Hydro finishing; Coke Calcining, etc.
The Corporation has commissioned several grass root refineries and modern process units.
Procedures for commissioning and start-up of individual units and the refinery have been
well laid out and enshrined in various customized operating manuals, which are continually
updated.


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In today's dynamic business environment, innovation through a sustained process of Research
& Development (R&D) is the only cutting edge tool for organisations to thrive. With
emphasis on development and speedy commercialisation of globally competitive products,
processes and technologies, the focus has now shifted from R&D to RD&D (Research,
Development & Deployment).I 4.
, a hallmark technology developed by the Centre for
maximisation of LPG and light distillates from refinery residue, has been selected by
IndianOil for setting up a 4 million metric tonnes per annum (MMTPA) INDMAX unit as a
part of the 15 MMTPA integrated refinery-cum-petrochemicals complex at Paradip, as well
as at Bongaigaon Refinery & Petrochemicals Ltd. (BRPL). The Centre has also licenced its
Diesel Hydro treating technology to these two refineries. These successes have catapulted
IndianOil R&D into the elite league of multinational technology licensors.

Standing in the company of six worldwide technology holders for Marine Oils, with the
second global OEM (original equipment manufacturer) approval by Wartsila, Switzerland,
IndianOil's SERVO Marine Oils are now technically qualified to cater to the lubrication
requirements of more than 90% of the world's marine engine population. In the power-
generation segment, the newly developed SERVO Marine K-Series was approved by Yanmar
Co. Ltd. of Japan for use in their engines operating on distillate fuels.

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Overall management of the Company is vested with the Board of Directors of the Company.
The Board of Directors is the highest decision making body within the Company. The Board
of Directors is accountable to the shareholders of the Company, which is the ultimate
authority of a Company. IndianOil Corporation being a Public Sector Enterprise (PSE), the
Board of Directors of the Company is also accountable to Government of India. The day-to-
day management of the Company is entrusted on the Chairman and the Functional Directors
and other Officers of the Company. The Board of Directors has delegated powers to the
Chairman, Functional Directors, who have in turn delegated powers to the Executives of the
Company through Delegation of Powers. The Chairman, Functional Directors and other
officers exercise their decision-making powers as per this delegation of powers

To achieve the next level of growth, IndianOil is currently forging ahead on a well laid-out
road map through vertical integration² upstream into oil exploration & production (E&P)
and downstream into petrochemicals ± and diversification into natural gas marketing, bio
fuels, wind power projects, besides globalisation of its downstream operations.

As a leading public sector enterprise of India, IndianOil Corporation has successfully

combined its corporate social responsibility agenda with its business offerings, meeting the
energy needs of millions of people everyday across the length and breadth of the country,
traversing a diversity of cultures, difficult terrains and harsh climatic conditions. The
Corporation takes pride in its continuous investments in innovative technologies and
solutions forsustainable energy flow and economic growth and in developing techno-
economically viable and environment-friendly products & services for the benefit of its
consumers.÷
 

 ÷
 

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The term µemployee relations¶ is a more comprehensive and includes all those aspects of
Human Relations Management where employees are dealt with collectively. Employee
Relations includes, in addition to Industrial relations, such aspects as participative
management, employee welfare, employee development, employee remuneration, employee
safety and health, and the like. The Employee Relations Department at the Eastern Regional
Office under the Marketing Division of the Indian Oil Corporation performs all most of the
above mentioned functions.

Indian Oil Corporation¶s Employee strength (as on 31st March, 2009) is · c/0, out of which
c·=01& are in the officer cadre and &1=·/2 are workmen. The officers are classified into 9
grades viz. A,B,C,D,E,F,G,H,I while the workmen are classified into 8 grades viz. I, II, III,
IV, V, VI, VII, VIII.

However one of its %"'
! is to deal with all labour related issues at different
locations falling under its jurisdiction.The different locations have varied number of
manpower ranging from 01 to 150 numbers of employees. Needless to mention that in an era
of economic competitiveness Indian Oil Corporation has also resorted to the engagement of
contract labourers through the contractors in the non-core areas of the business activities. The
various labour statutes cast many obligations on the employers. The various types of the
labour legislations are applicable to Indian Oil Corporation not only as an employer but also
being a Principal Employer by virtue of engaging contract labourers at most of its locations
of the Marketing Division.To improve the employee morale and to enhance opportunities for
sense of achievement and belongingness it is very essential to have a clear perspective of all
the statutory provisions in an organization.

c 
 

Labour Laws include a cluster of legislations enacted and amended by the government from
time to time, covering the gamut of issues relating to labour and its employment. Satisfaction
and job security to the labour and checking exploitation and oppression by the employer is
the essence of all these enactments. A developed and dedicated workforce is a pre-requisite
for success of any organization. For this reason, a number of obligations have been imposed
upon the employer, non-compliance of which entails penalty or prosecution also. And on the
other side provisions have also been made to curb unfair labour practices, such as strikes, go-
slow, etc. to resolve the industrial disputes and to harmonise the labour management
relations.The practical needs, political ideology, social philosophy and state of economic
development all determine to a great extent the scope of the company. For the smooth
running of the daily business of the corporation maintaining harmonious relations with the
workforce is badly required. Compliance to different labour laws is one of the most important
aspects in this regard. So I have tried to understand the application of different labour laws in
handling labour related problems (at the different locations under the Eastern region) through
analysis of cases.

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Social security may be defined as any programme of social protection established by
legislation, or any other mandatory arrangement, that provides individuals with a degree of
income security when faced with the contingencies of old age, survivorship, incapacity,
disability, unemployment or rearing children. It may also offer access to curative or
preventive medical care. As defined by the International Social Security Association, social
security can include social insurance programmes, social assistance programmes, universal
programmes, mutual benefit schemes, national provident funds, and other arrangements
including market-oriented approaches that, in accordance with national law or practice, form
part of a country's social security system.
In developing countries like India is to guarantee the working class an effective contribution
to the sustained satisfaction of their basic needs by improving their standard of living which
in most of the times doesn¶t conform to an acceptable minimum level. This is the only way to
make it possible for those affected to be relieved of their threat towards their existence. Social
security legislations also have the function of guaranteeing protection against a worsening of
living conditions, which is brought on by life contingencies and which can¶t be overcomed by
the individuals themselves.
With reference to India, the Constitution levies responsibility on the $# to
provide social security to citizens of the country. The State, here, discharges duty as an
agent of the society in order to help those who are in adverse situations or otherwise needs
protection owing to above mentioned contingencies. Article 41, 42 and 43 of the Constitution
do talk about the same. Also, the #

 of the Constitution of India mentions
issues like-

o Social Security and insurance, employment and unemployment.

o Welfare of Labour including conditions of work, provident funds, employers' liability,
workmen's compensation, invalidity and old age pension and maternity benefits.


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