PROJECT REPORT ON

Industrial relations

BY

MAHESH S. WANI
 Industrial Relations
Definition of Industrial Relations
As per Dale Yoder Industrial Relations refers to the relationship between management and
employees, or employees and their organization that arise out of employment.

Teed and Metcalfe observed Industrial Relations are the composite approach of the attitudes and
approaches of the employers and employees towards each other with regard to planning,
Supervision, direction and unification of the activities of a set up with less friction and more co-
operation with mutual effort for others well-being.

Industrial relations are a multidisciplinary field that studies the employment relationship.
Industrial relations are increasingly being called employment relations because of the importance
of non-industrial employment relationships. Many outsiders also equate industrial relations to
labour relations and believe that industrial relations only studies unionized employment
situations, but this is an oversimplification.

Objectives of Industrial Relations

 To enhance the economic status of workers.
 To reduce conflict of the organization.
 To make good relation with subordinates.
 To develop relation with other.
 To participate in decision making.
 To extent and maintain industrial democracy.

Actors in the IR system:

Three main parties are directly involved in industrial relations:

Employers: Employers possess certain rights vis-à-vis labors. They have the right to hire and
fire them. Management can also affect workers’ interests by exercising their right to relocate,
close or merge the factory or to introduce technological changes.

Employees: Workers seek to improve the terms and conditions of their employment. They
exchange views with management and voice their grievances. They also want to share decision
making powers of management. Workers generally unite to form unions against the management
and get support from these unions.
Government: The central and state government influences and regulates industrial relations
through laws, rules, agreements, awards of court and the like. It also includes third parties and
labor and tribunal courts.

Industrial Relations Today

By many accounts, industrial relations today are in crisis. In academia, its traditional positions
are threatened on one side by the dominance of mainstream economics and organizational
behavior, and on the other by postmodernism. In policy-making circles, the industrial relations
emphasis on institutional intervention is trumped by a neoliberal emphasis on the laissez faire
promotion of free markets. In practice, labor unions are declining and fewer companies have
industrial relations functions. The number of academic programs in industrial relations is
therefore shrinking, and scholars are leaving the field for other areas, especially human resource
management and organizational behavior. The importance of work, however, is stronger than
ever, and the lessons of industrial relations remain vital. The challenge for industrial relations is
to re-establish these connections with the broader academic, policy, and business worlds.
 Bank of Maharashtra
Vision 2010
To be a vibrant, forward looking, techno-savvy, customer centric bank serving diverse sections
of the society, enhancing shareholders’ and employees’ value while moving towards global
presence. 

Mission
To ensure quick and efficient response to customer expectations

To innovate products and services to cater to diverse sections of society

To adopt latest technology on a continuous basis

To build proactive, professional and involved workforce

To enhance the shareholders’ wealth through best practices and corporate governance

To enter international arena through branch network

Payment of Wages Act, 1936

Applicability:
i) Every person employed in any factory, upon any railway or through subcontractor in a railway
and a person employed in an industrial or other establishment.

ii) The State Government may by notification extend the provisions to any class of
person employed in any establishment or class of establishments. 

Eligibility:
Every person who is employed in any of the above mentioned establishments and who is
drawing less than Rs. 1,600 per month. 

Benefits: the Act prescribes for

(i) The regular and timely payment of wages (on or before 7th day or 10th day after last
day of the wage period in respect of which the wages are payable)

ii) Preventing unauthorized deductions being made from wages and arbitrary fines. 

Penal Provisions:

Penalties are from Rs. 200-1000. Repeat offenses attract 1 to 6 months imprisonment and fine
from Rs. 500-3000.

Delay wage payments attract penalty of Rs. 100 per day of delay.

Minimum Wages Act, 1948

Applicability:
Any person who directly or through another person, whether for himself or for any other
person employs one or more employees in any scheduled employment in respect of which
minimum rates of wages have been fixed under this Act.

Eligibility:
Any person who is employed for hire or reward to do any work in a scheduled employment and
includes an outdoor worker to whom any articles or materials are given for either doing some
work either at home or at any other premises.

Benefits
The Act prescribes the minimum rates of wages payable to employees for different scheduled
employment for different class of work and for adults, adolescents, children and apprentices
depending upon different localities.

Penal Provisions

Imprisonment up to 6 months and/or fine up to Rs. 500 are imposable for contravention.

Payment of Bonus Act, 1965

Applicability:
(a)  Every factory (as def. in Factories Act), & (b) Every other establishment in which 20 or more
persons (less than 20 but 10 or more if appropriate Govt. notifies) are employed on any day
subject to certain exemptions.

ii)  Employees' drawing remuneration of Rs. 3,500/- or more and those who have worked for
less than 30 days are not eligible to receive bonus under the Act.

iii) Bonus to be paid within eight months from the expiry of the accounting year.

Eligibility:
i) Every person (other than an apprentice) drawing salary up to RS 3,500 per month.
Ii) Every person drawing salary between RS 2,501/- and RS 3,500/- per month. The bonus
payable to him is to be calculated as if his salary were RS 2,500/- p.m.

Benefits:
i) Subject to other provisions: — Minimum bonus shall be 8.33% of salary/wages earned or RS
100 whichever is higher.

Ii)  If allocable surplus exceeds the amount of minimum bonus, then bonus shall be payable at
higher rate subject to a maximum 20% of salary/wages.

Iii) Computation of bonus is to be worked out as per Schedule I to IV of the Act.

Penal Provisions

   Imprisonment up to 6 months and or fine up to RS 1000/-.

Payment of Gratuity Act, 1972
Applicability

1. Every factory (as defined in Factories Act), mine, oilfield, plantation, port and railway.

2. Every shop or establishment to which Shops & Establishment Act of a State applies in
which 10 or more persons are employed at any time during the year end.

3. Any establishment employing 10 or more persons as may be notified by the Central

Government.

4. Once Act applies, it continues to apply even if employment strength falls below 10.

Eligibility

1. Any person employed on wages/salary.

2. At the time of retirement or resignation or on superannuation, an employee should have

rendered continuous service of not less than five years,

3. In case of death or disablement, the gratuity is payable, even if he has not completed 5
years of service.

Benefits

1. The quantum of gratuity is to be computed at the rate of 15 days wages (7 days wages in
case of seasonal establishments) based on rate of wages last drawn by the employee
concerned for every completed year of service or a part thereof exceeding 6 months.

2. The total amount of gratuity payable shall not exceed the prescribed limit.

3. In case where higher benefit of gratuity is available under any gratuity scheme of the Co.,
the employee will be entitled to higher benefit

Calculation of Gratuity

1. Gratuity = Monthly Salary x 15 days x No. of yrs. of service

                         26

2. Max. Gratuity payable under the Act is Rs. 3,50,000/- (w.e.f. 24-9-1997)

Penal Provisions

Nonpayment of gratuity payable under the Act is punishable with imprisonment up to 2 years
(minimum 6 months) and/or fine up to RS 20,000/-. Other contravention/offenses attract
imprisonment up to 1 year and/or fine up to RS 10,000.
Industrial Disputes Act, 1947 
The Industrial Disputes Act extends to the whole of India. It came into force April 1, 1947.

Industry

The Industrial Disputes Act applies to all industries. Industry for the purpose of Industrial
Disputes Act is defined under the Act. 

Industrial Disputes Act, 1947

The Industrial Disputes Act, 1947 recognizes certain rights to the employees employed by the
employer. For the purposes of Industrial Disputes Act, 1947, workman has been defined as
under:

“Workman means any person (including an apprentice) employed in any industry to do any
manual, unskilled, skilled, technical, operational, clerical or supervisory work for hire or reward,
whether the terms of employment be express or implied, and for the purposes of any proceeding
under this Act in relation to an industrial dispute, includes any such person who has been
dismissed, discharged or retrenched in connection with, or as a consequence of, that dispute, or
whose dismissal, discharge or retrenchment has led to that dispute, but does not include any such
person:

 who is subject to the Air Force Act, 1950 (45 of 1950), or the Army Act, 1950 (46 of
1950), or the Navy Act, 1957 (62 of 1957); or

 who is employed in the police service or as an officer or other employee of a prison; or

 who is employed mainly in a managerial or administrative capacity; or

Who, being employed in a supervisory capacity, draws wages exceeding one thousand six
hundred rupees per men or exercises, either by the nature of the duties attached to the office or
by reason of the powers vested in him, functions mainly of a managerial nature
 Trade Unions
A trade union (British English) or labor union (American English) is an organization of
workers that have banded together to achieve common goals such as better working conditions.
The trade union, through its leadership, bargains with the employer on behalf of union members
and negotiates labour contracts (collective bargaining) with employers. This may include the
negotiation of wages, work rules, complaint procedures, rules governing hiring, firing and
promotion of workers, benefits, workplace safety and policies. The agreements negotiated by the
union leaders are binding on the rank and file members and the employer and in some cases on
other non-member workers.

Over the last three hundred years, many trade unions have developed into a number of forms,
influenced by differing political objectives. Activities of trade unions vary, but may include:

 Provision of benefits to members: Early trade unions, like Friendly Societies, often
provided a range of benefits to insure members against unemployment, ill health, old age
and funeral expenses. In many developed countries, these functions have been assumed
by the state; however, the provision of professional training, legal advice and
representation for members is still an important benefit of trade union membership.

 Collective bargaining: Where trade unions are able to operate openly and are recognized
by employers, they may negotiate with employers over wages and working conditions.

 Industrial action: Trade unions may enforce strikes or resistance to lockouts in

furtherance of particular goals.

 Political activity: Trade unions may promote legislation favorable to the interests of their
members or workers as a whole. To this end they may pursue campaigns, undertake
lobbying, or financially support individual candidates or parties (such as the Labour Party
in Britain) for public office.

The Bank of Maharashtra is having 2 unions. They are namely

 Communist party
 Bhartiya Majdur Sangh
Industrial conflicts at Bank of Maharashtra
An industrial conflict or dispute is defined as a withdrawal from work by a group of employees,
or a refusal by an employer to allow workers to work. Conflict refers to disputes, disagreements
or dissatisfaction between individuals and/or groups. A dispute is a disagreement.

The common causes of industrial conflict are:

Working Conditions:
Disputes often arise over issues of working conditions and safety at the workplace. Include
disputes concerning issues such as leave entitlements, pensions, compensation, hours of work.
Employers will need to monitor physical working conditions and provide adequate protective
clothing and equipment, first aid facilities, quality working equipment and amenities such as
lunch rooms, change rooms and toilet facilities.

Wage Demands
The level of wage and salaries is often the major cause of disputes between an employee and
employer. It also refers to a demand by employees for an increase in their wage rate
or changes to the way in which their wages are calculated or determined. As well, wage demands
may relate to pay rates may need to be adjusted to compensate employees in times of inflationary
pressures such as GST and interest rates. Employees are more likely to seek wage increases to
maintain their standards of living. Australian unions and workers fight for improved wages.

Management Policy
Disputes are often the result of inadequate consultation by management with their employees.
Disputes over changes that management wishes to implement will often cause industrial conflict.
Matters include terms and conditions of employment, new awards and agreements, award
restructuring, outsourcing and technology acquisitions and structural change.

Also the conflicts happen if management wants to implement any rule & that rule was not
accepted by the trade unions, it may cause the major conflict.

The major conflicts happen when forum calls for strike in bank and all the trade unions have to
obey the forum. Forum comprises of all Unions from all public sector banks.
INDUSTRIAL DISPUTE’S SETTLEMENT MACHINERIES

 Mediation:
Mediations is a process available to the parties involved in contract negotiations by which an
outside party is called in by union and management to help them reach a settlement. The neutral
mediator does not ultimately resolve the dispute, but instead tries to move the parties towards
agreement by maintaining communication and suggesting alternative solutions to dead-locked
issues. The mediator’s function is to provide a positive environment for dispute resolution by
drawing on extensive professional experience in the field of labour management interaction. The
mediator must possess thorough knowledge of the issues, and an ability to innovate solutions to
problems. The mediator must be an effective communicator, know the importance of timing and
most of all, have the confidence and trust of the parties. A mediator must possess attributes such
as integrity, impartiality and fairness.

 Conciliation:
Conciliation is a process by which representatives of workers and employers are brought
together before a third person or a group of persons with a view to persuade them to come to a
mutually satisfying agreement. The objective of this method is to settle disputes quickly and
prevent prolonged work stoppages if they have already occurred. The essential hallmarks of this
approach are10:

1. The conciliator tries to bridge the gulf between the parties, if possible.

2. If he does not fully succeed, he tries to reduce the differences to the extent possible. He acts as
a conduit through which message are passed from one side to the other, coupled with his own
interpretations facilitating the understanding of disputing parties. To the extent possible, he tries
to ‘clear the fog’ surrounding the issue.

3. He persuades parties to take a fresh look at the whole issues, through a process of give and
take and explore the possibility of reaching a consensus.

4. He only advances possible lines of solutions for consideration by the disputants. He never tries
to force the parties to accept his viewpoint. He never offers judgement on the issues. If parties
feel that the suggestions offered by the conciliator are acceptable, they may strike a deal.

5. The conciliator need not follow the same path in each case. The process of conciliation,
therefore, has a certain amount of flexibility and informality built around it.

The conciliation machinery in India consists of the following:

 A. Conciliation Officer

According to the Industrial Disputes Act, 1947, the Central and State governments can
appoint a conciliation officer to mediate in all disputes brought to his notice. The officer
enjoys the powers of a civil court. He can call and witness disputing parties on oath and
interpret the facts of the case. He is expected to give judgment within 14 days of the
commencement of the conciliation proceedings. His judgment is binding on all the parties to
the dispute. The conciliation officer has a lot of discretion over the ways and means to be
followed to bring about a settlement between the disputants. He “may do all such things as he
thinks fit for the purpose of inducing the parties to come to a fair and amicable settlement of
disputes”.

B. b. Board of Conciliation

When the conciliation officer fails to resolve the disputes between the parties, the
governments can appoint a Board of Conciliation. The Board of Conciliation is not a
permanent institution like the Conciliation officer. It is an, tripartite body having the powers
of a civil court, created for a specific dispute. It consists of a Chairman and two or four other
members nominated in equal number by the parties to the dispute. The chairman who is
appointed by the government should not be connected with the dispute or with any industry
directly affected by such dispute. The board, it should be remembered, cannot admit a
dispute voluntarily. It can act only when the dispute is referred to it by the Government. The
board con ducts Conciliation proceedings in the same way as conducted by a Conciliation
officer. The board, however, is expected to submit its report within two months of the date on
which the dispute was referred to it. The Boards of Conciliation are rarely constituted by the
government these days. In actual practice, settling disputes through a conciliation officer was
found to be more flexible when compared to the Board of Conciliation.

 Voluntary Arbitration:
When conciliation proceedings fail to settle the dispute, the conciliation officer may persuade the
conflicting parties to voluntary refer the dispute to a third party known as Arbitrator, appointed
by the parties themselves. The arbitrator listens to the viewpoints of both parties and delivers an
award or judgment on the dispute. He, however, does not enjoy judicial powers. The arbitrator
submits his judgment on the dispute to the government. Thereafter the government publishes the
award within 30 days of its submission. The award becomes enforceable after 30 days of its
publication. The arbitration award is binding on all the parties to the agreement and all other
parties summoned to appear in the proceedings as parties to dispute. Before delivering the
judgment, the arbitrator is expected to follow due procedure of giving notice to parties, giving a
fair hearing, relying upon all available evidence and records and following the principles of
natural justice.

Arbitration is effective as a means of resolving disputes because it is:

1. Established by the parties themselves and the decisions is acceptable to them, and 2.
Relatively expeditious when compared to courts or tribunals. Delays are cut down and
settlements are speeded up.

Arbitration has achieved a certain degree of success in resolving disputes between the labour and
the management. However, it is not without its weakness. Some weaknesses are:

1. Arbitration is expensive. The expenditure needs to be shared by the labour and the
management.

2. Judgement becomes arbitrary if there is a mistake in selecting the arbitrator.

3. Too much arbitration is not a sign of healthy IR.

 Adjudication:
Adjudication or compulsory arbitration is the ultimate remedy for the settlement of disputes in
India. Adjudication consists of settling disputes through the intervention of a third party
appointed by the government. An industrial dispute can be referred to adjudication by the mutual
consent of the disputing parties. The government can also refer a dispute to adjudication without
the consent of the parties. The Industrial Disputes Act, 1947, provides three-tier adjudication
machinery – namely Labour Courts, Industrial Tribunals and National Tribunals – for the
settlement of industrial disputes. Under the provisions of the Act, Labour Courts and Industrial
Tribunals can be constituted by both Central and State governments but the National Tribunals
can be constituted by the Central government only.

a. Labour Courts (section-7)

The labour court consists of one independent person (called as presiding officer) who is or has
been a judge of a High Court, or has been a district judge or additional district judge for not less
than 3 years or has held any judicial office in India for not less than 7 years. The labour court
deals with disputes relating to: (a) the property or legality of an order passed by employer under
the standing orders; (b) the application and interpretation of standing orders; (c) discharge or
dismissal of workers including reinstatement of, or grant of relief to wrongly dismissed persons;
(d) withdrawal of any statutory concession or privilege; (e) illegality or otherwise of a strike or
lockout; and (f) all matters except those reserved for industrial tribunals.

b. Industrial Tribunal (section-7A)

This is also a one – man adhoc body (presiding officer) appointed by the Government. It has a
wider jurisdiction than the labour court. The Government concerned may appoint two assessors
to advise the presiding officer in the proceedings. An industrial Tribunal can adjudicate on the
following matters; (a) wages including the period and mode of payment; (b) compensatory and
other allowances; (c) hours of work and rest periods; (d) leave with wages and holidays; (e)
bonus, profit sharing, provident fund and gratuity; (f) shift working, otherwise than in
accordance with the standing orders; (g) classification by grades; (h) rules of discipline; (i)
rationalization; (j) retrenchment and closure of establishment; and (k) any other matter that may
be prescribed.

c. National Tribunal (section-7B)

This is the third one-man adjudicatory body to be appointed by the central government to deal
with dispute of national importance or issues which are likely to affect the industrial
establishments in more than one state. It consists of one person only, who is an independent
person and below 65 years of age. He should be or has been judge of a High Court or held the
office of Chairman or any other

Member of the Labour Appellate Tribunal for a period of not less than 2 years

The Central Government may, if it thinks fit, appoint two persons as assessors to advise the
National Tribunal. Duties of a national tribunal are to hold proceedings of an industrial dispute
referred to it by the Central Government expeditiously, and to submit the award to the referred
on the conclusion thereof. When a national tribunal has been referred to, no Labour Court or
Industrial tribunal shall have any jurisdiction to adjudicate upon such a matter.

In Bank of Maharashtra:

There is a bipartite settlement machinery set up to resolve issues of trade union.

In this machinery the Officers of Indian Banking Association sits with the representative of
union to resolve the employee’s issues and both reach a final written agreement which both the
management and union needs to adhere for minimum 3 years.
 Consequences of Conflicts
Lockouts

 Action taken by employers where employees aren’t permitted to enter the workplace and are
locked out from the workplace unless they agree to follow management order or work as directed

Strikes

 A strike is a withdrawal of labour from production. Strikes are the most overt form of industrial
action and aim to attract publicity and support for the employee’s case. Strikes occur when
employees withdraw their labour in order to enforce a demand or express a grievance.

 Bans

When employees refuse to form a task that is usually not specified in their employment contract,
such as overtime

Absenteeism

Usually refers to when employees are unhappy, usually when employees are not being
considered by employers in times of dispute, the employees may undertake a system where they
do not show up to work, and absent themselves. Employees may undertake mass absenteeism
with many being off at the same time, or rotational absenteeism where they almost roster who
will be taking time off. Action of this sort disrupts the business but does not stop the employee’s
income (sick leave), so it is favored by some employees

Sabotage

Employees may take industrial action in the form of deliberately damaging physical items and
causing vandalism in the workplace. Damage is done by employees to either the product or in the
production of the product. Employees usually take such action to harm or destroy the image of a
firm.

Staff Turnover

 High voluntary labour turnover (resignation) rates are often linked with absenteeism rates as
indicators of conflict and dissatisfaction among employees.
At Bank of Maharashtra:
 Skeletal service of bank is never affected if one union goes on strike. The other
employees of the bank are over burdened.
 And generally the strike is of one day and they return to work the next day.
 If any union or all unions are going on strike together they have to give notice period of
60 days.
 So, the management is aware of the consequences in advance and rethink upon demands
as soon as workers go on indefinite strike otherwise all operations of Bank will be
affected.

There are multiple trade unions existing at Bank of Maharashtra.

The major ones are:

 AIBOA (All India Bank Officer Association) where officers of the bank fight on
common grounds.
 Communist Union.
 All INDIA BANK EMPLOYEE UNION which comprises of clerical staff. It is associated with
AITUC.
 Bhartiya Mazdoor Sangh which includes staff below clerical level.

All banks are having multiple trade unions and operate at large scale. So, we cant comment
whether multiple trade unions are better or single, but when all the trade unions go on strike bank
operations are affected but if one union goes on strike then other employees can run the branch.

There is also inter union rivalry of trade unions in case of transfer and posting where they fight
that their many members should not be transferred.

The worker participation method is followed at Bank of Maharashtra where member

representatives of union are a part of Board of Directors with management employees.
 Cases occurred in Bank of Maharashtra
Company: Bank of Maharashtra.

Name: Dattaram Phule

Age: 54 Years

Period Served: 30 Years

Problem Area:

Dattaram Phule was working with Bank of Maharashtra since 30 years; Dattaram was loyal
to the bank and has shown a good conduct in his overall tenurity with the bank,

On 15th July 2008, Dattaram reported to work on time but was not feeling well, Dattaram
reported to his manager that he has a severe chest pain and is unable to work, the Manager
informed him to leave for the day and take a leave tomorrow as well if he is not able to make it
to work, Dattaram was about to leave home when he got a severe heart attack, an emergency
ambulance was called an Dattaram was taken to the hospital. His family was informed to come
directly to hospital, Dattaram was declared as deceased post 30 minutes after he was taken to
hospital.

Dattaram has a housing loan with the bank and other personal loan dues.

Company action:

 Post this incident a Cheque of 25,000 was provided immediately within 24 hours to the
employee’s family for his Funeral ceremony.
  Staff personals visited at Dattaram’s house to provide condolences.
 Dattaram’s PF and Gratuity fund amount was credited in the account of Dattaram’s wife
within 30 Days.
 As per company policy, the company can provide either a monitory benefit of Rs 8,
00,000 to the employee’s family or it can give a job to the dependents of Dattaram.
 The family as given both the choices
 Dattaram’s family selected the option of Compensation as 8,00,000 Rs, because
Dattaram’s wife was already suffering from Illness and his elder daughter was married
and younger son was not yet 18 years old to complete his studies and work with the bank.
 The Compensation was provided to the Family of Dattaram Phule within 6 months time.
 A pension amount of Rs 10,000 was declared to his family dependants, which started
within 6 months time.

Legal action:

 Cheque of 25,000 should be provided to the family as emergency help within 24 hours of
notification.
 Pf and Gratuity funds should be released with in 45 days post deduction.
 Compensation with choices should be offered.

Suggestion:

 The compensation provided as compared to the tenurity that Dattaram has spent in the
company seems to be less.
 Dattaram’s wife is suffering from Illness, he has a son who is not 18 years and has yet to
complete his education, the compensation and pension provided might not be sufficient
for his studies.
 Company: Bank of Maharashtra
Name: Sagar Mohite

Age: 32 Years

Period Served: 8 Years

Problem Area:

Sagar Mohite has been with Life insurance Corporation since 8 years, he immediately
joined the organization after completing his studies, and Sagar was one of the hardest working
individuals in department, until he met with an accident on 15 December 2007

On 15th December 2007, Sagar was traveling on his way back to home in local train, Sagar
use to every day catch and 18.00 PM train from Santacruz to come go home, he use to stay at
Virar, on 15th December Sagar left from the office and caught the regular train, while standing on
the door Sagar lost his balance between Malad and Kandivali and fell down on the track, before
Sagar could get up there was another train coming from front which went over Sagar’s left leg,
Sagar lost his one leg in this accident, Sagar was admitted in the nearest hospital and this issue
was reported to the LIC India the very next day. It took 3 months time for Sagar to come over
from the trauma

Company action:

 The entire staff visited Sagar in the hospital the very next day itself.
 Emergency help of 50,000 was provided to Sagar’s Family within 24 hours.
  The entire hospitalization charges were taken care by the LIC India within 30 days time
post Sagar reported to work submitted all the documents.
 Sagar got a Compensation on 3,00,000 Rs within 6months
 Sagar’s Job was still secured
 Sagar got a warm welcome when he reported back to work.

Legal action:

 Cheque of 50,000 should be provided to the family as emergency help within 24 hours of
notification.
 Hospitalization charges and medical reimbursement should be provided with in 45 days
of claim.
 Compensation on 3, 00,000 Rs should be provided within 6months.
 Incase or partial disability the employee will not loose his job.

Suggestion:

 Considering the above case the compensation offered was fare.

Vishnulene established in 1978 under the expertise guidance of Shri Om Prakash Shah with core
competencies in weaving & garmenting. Today, we are an integrated textile company being
managed by a highly experienced management, working with global textile products providing
them products at competitive prices.

Vishnulene is equipped with state-of-the-art technology with world class design &
manufacturing facilities in and around Mumbai, Maharashtra. We provide total integrated
solution from weaving to garmenting.

Vishnulene is a multi products, multi fibre, multi market player covering the entire textile value
at a chain at a length having wide domestic market, institutional sales & international exports,
which ensures spread of risk and stability in earning.

Vision

Through all of our products, services & relationships we add to life's contentment.
 To be a trend setter in fashions & be known as a creator of value to its stake holders

To be renowned textile player globally known for its quality products this leads the trends

To continue with our world class professional team & be a respectable employer in the world.

Mission

To provide best quality products to our clients at competitive prices

Highlights of VSM Suiting’s & Shirting’s

A strong research & development unit studies new trends in fashion forecast and fabric finishes.

Excellent looms of Rapies, Sulzur with electronic dobby

Our in-house garment manufacturing unit to realize our fabrics into finished products.
Fabric range

Cotton

Cotton Polyester

Polyester Viscose

Shirting and Suiting

Viscose fabric

Woven and Printed fabric

Product range

Men's Shirt

Men's Trousers

Men's Suits
 Acts followed
Minimum Wages Act:

The company gives its employees minimum wages which are sufficient for employees for their
basic living and taking care of their families.

The wages are decided based on the local competitors, how much they are giving to their
workers and accordingly competitive wages are given according to the affordability of the
organization.

Bonus Act

The bonus is given to employees once in a year and extra bonus incentives is given to employees
who outperform their set targets related to their job specification.

Industrial Dispute Act

The Third Five Year Plan formulated a Code of Discipline for industries which was
voluntary accepted by the management and the labour. Through it the industrial disputes could
be mutually settled and litigation could be avoided as far as possible.

The establishment of Works Committees, the encouragement of workers organizations and the
settlement of the problem of bonus by constituting a Bonus

Commission were the other features of this plan document.5 The first few traces of the evolution
of alternative dispute mechanisms to solve labour disputes can be traced from this document.
Needless to say, one of these mechanisms is the proposed establishment of ‘Grievance
Settlement Authorities’ to solve disputes between individual workers and the management.

Before we proceed to address the point on Grievance Settlement further, we must understand that
there are two types of Industrial Disputes-interest disputes and rights disputes. Interest disputes
relate to determination of new wage level and other condition of employment while rights
disputes on the other hand relate to interpretation and application of existing standards and
usually involve and individual worker or group of workers. Under the category of rights disputes,
claim is made that the workmen have not been treated in accordance with the rules, individual
contracts of employment, laws and regulations and as per collective agreements. Such disputes
are also described as grievance disputes. Such grievances may be regarding retrenchment
,dismissal, payment of wages, working time, overtime, demotion , promotion, transfer, seniority,
job classification, work rules and fulfillment of obligation relating to safety and health laid down
in an agreement. The definition of Industrial Dispute as given in the Act has a wide coverage. All
disputes relating to employment or non- employment, or the terms of employment or with the
condition of labour are covered under the definition. Settlement means a settlement arrived at in
the course of conciliation proceeding and included a written agreement between employer and
workmen arrived at otherwise than in course conciliation proceeding where such agreement has
been signed by the parties there to in such manner as may be prescribed and a copy thereof has
been sent to the officer authorized in this behalf by the appropriate government and the
conciliation officer7. The definition envisages two categories of settlement.

(1) Settlement arrived at in the course of conciliation and

(2) Settlement arrived at privately or otherwise than in the course of conciliation.

The settlements arrived at in the course of conciliation stand on a higher plane than the
settlements arrived at otherwise than in the course of conciliation. The legal effect of both these
settlements is not identical.
The settlement arrived at otherwise than in the course conciliation binds only the parties to
settlement and none else.
In any case it does not stand on higher plane than the settlements arrived at in the conciliation
and that makes the two distinct and different from each other.

Worker Participation

Participation through Collective Bargaining:

Through the process of CB, management and workers may reach collective agreement regarding
rules for the formulation and termination of the contract of employment, as well as conditions of
service in an establishment. Even though these agreements are not legally binding, they do have
some force. For CB to work, the workers’ and the employers’ representatives need to bargain in
the right spirit. But in practice, while bargaining, each party tries to take advantage of the other.
This process of CB cannot be called WPM in its strongest sense as in reality; CB is based on the
crude concept of exercising power for the benefit of one party. WPM, on the other hand, brings
both the parties together and develops appropriate mutual understanding and brings about a
mature responsible relationship.

Participation through Suggestion Schemes:

Employees’ views are invited and reward is given for the best suggestion. With this scheme, the
employees’ interest in the problems of the organization is aroused and maintained. Progressive
managements increasingly use the suggestion schemes. Suggestions can come from various
levels. The ideas could range from changes in inspection procedures to design changes, process
simplification, paper-work reduction and the like. Out of various suggestions, those accepted
could provide marginal to substantial benefits to the company. The rewards given to the
employees are in line with the benefits derived from the suggestions.

Participation through Quality Circles:

Concept originated in Japan in the early 1960s and has now spread all over the world. A QC
consists of seven to ten people from the same work area who meet regularly to define, analyze,
and solve quality and related problems in their area. These circles require a lot of time and
commitment on the part of members for regular meetings, analysis, brainstorming, etc. Most
QCs have a definite life cycle – one to three years. Few circles survive beyond this limit either
because they loose steam or they face simple problems. QCs can be an excellent bridge between
participative and non-participative approaches.
.

QCs to succeed in the long run, the management needs to show its commitment by implementing
some of the suggestions of the groups and providing feedback on the disposition of all
suggestions.

Training in problem-solving techniques is provided to the members. QCs are said to provide
quick, concrete, and impressive results when correctly implemented.

Advantages:

 Employees become involved in decision-making, acquire communication and analytical

skills
 And improve efficiency of the work place.

 Organization gets to enjoy higher savings-to-cost ratios.

 Chances of QC members to get promotions are enhan

Grievance Method
A grievance can be defined as any sort of dissatisfaction, which needs to be redressed in order to
bring about the smooth functioning of the individual in the organization.
Broadly, a grievance can be defined as any discontent of dissatisfaction with any aspect of the
organization. It can be real or imaginary, legitimate or ridiculous, rated or unvoiced, written or
oral; it must be however, find expression in some form of the other.
Discontent or dissatisfaction is not a grievance.
They initially find expression in the form of a complaint. When a complaint remains unattended
to and the employee concerned feels a sense of lack of justice and fair play, the dissatisfaction
grows and assumes the status of grievance. Usually grievance relate to problems of interpretation
of perceived non-fulfillment of one’s expectation from the organization.
Aggrieved employees usually manifest defiant behavior.

At VSM, the workers participation is done through grievance method that is, if new policy is
introduced in the organization and if employees have any grievance regarding it, they can
approach to the management with their problem in writing and if the management feels that
policy should be reviewed it could be done or else the employee is convinced by the
management to agree to its terms and conditions.

Conflicts in organization:
As VSM is a private owned firm there are not major issues of conflicts which cannot be settled.

The 80% of workers are on contract basis and generally fear to fight for small issues.

The role of trade union in the organization is diminishing as the union has lost power with time
where management does not allow the workers to go on indefinite strike.

But, the union fights against the management for the issues on wages, medical benefits, health
issues incentives related to working over time, bonuses if they feel are given less as compared to
competitors of VSM are giving to their employees.

Settlement machinery:
The settlement machinery adopted at VSM is bipartite settlement where trade union
representatives and management people sit with each other. The management listen to the issues
of union and with negotiation agree on terms which are agreeable and beneficial to both the
workers and management.

Trade Union in the organization:

There are not multiple trade unions in the organization. There is a single trade union existing at
VSM which is good for both the workers and management.

For workers in the sense that there are no inter union conflicts in the organization and hence
there are less problems and they have to approach to only single union if they face problem, so
there is no confusion regarding to which union they should approach. There are also not intra
union fights as all the members fight for their own benefit and issues which all feel are a concern
are taken to the management.

For the management it easy to deal with a single union as they are clear with what it is expecting
from the management. And they know what their workers are exactly hindering for. There is no
confusion regarding which union they should listen to for negotiation and agreement as there is a
single union.

Case 1: Vishnulene Suiting & Shirting

Case: Lay – off Compensation

Problem area:

Vishnulene Suiting & Shirting, a textile company the current Recession phase did hit the
industry and that was the reason for the large scale retrenchment strategy that the company
followed.

The initial strength of all the factories was 500 workers with a single Trade union operating for
the organization and the union leader was Mr. Dhanraj Sakpal. The retrenchment strategy
targeted 150 workers to be laid off on the newly joined basis. These workers were given prior
notice in the month of January 2009 and their dues were calculated on the basis of their number
of years of service and many other factors; which those workers accepted.

In the month of February 2009, some 25 workers at factory; (under the influence of a Political
Party) deliberately decided among themselves to give low production which was immediately
noticed by the management.
Action taken by company:

The workers were warned accordingly but there was no effect on them so those workers were
fired and were agreed appropriate compensation but not equal to those who were given in
January 2009; so these aggrieved workers along with some political party came in the Tardeo
factory and threatened to cause damage to the factory.

The Management immediately reported the matter to the police and registered an F.I.R. The
workers were then warned by the police and a meeting took place between the management and
the workers in witness to the police and it was decided to seek the help of arbitrator (third
party).As a result, the company paid a little more compensation than agreed initially to the
workers and took from them in writing not to indulge in such kind of acts and to maintain
harmony with the factory

Suggestions:

If the agrees to increase the salary slightly as per their policies then those workers will not be
done wrong with the company & there were no chance of police interference came.

Questioner
Name of employee:

Name of organization:

1) Which are the different acts are followed by your organization?

2) Has industrial conflicts were happened in your organization?

3) What were its consequences?

4) Is there a proper settlement machinery being used to resolve the

conflicts?
5) How does it operates or implemented?

6) Is your organization is associated with the trade union?

7) If yes, then how many trade unions are associated with your
organization?

8) Whether multiple trade unions are better or single trade union?

9) Is there any inter union rivalry happened in your organization?

10) Would workers take part in the management decisions?