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Industrial Relations Environment and Work Culture in Public and Private Sector Organisations:

A Case Study
Author(s): Mamta Panda
Source: Indian Journal of Industrial Relations, Vol. 39, No. 4 (Apr., 2004), pp. 465-488
Published by: Shri Ram Centre for Industrial Relations and Human Resources
Stable URL: http://www.jstor.org/stable/27767923
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IJIR, Vol. 39, No. 4, April 2004

INDUSTRIAL RELATIONS ENVIRONMENT AND


WORK CULTURE IN PUBLIC AND PRIVATE SECTOR
: CASE STUDY
A
ORGANISATIONS
Mamta

Panda

The present study aims at examining the relationshipbetween


the industrial relations environment and work culture

in a private

and a public sectororganisationbelonging to thesame industry.


Industrial

relations

structural

mechanisms

trade unions
management

has been assessed

environment

in terms of:

for industrial relations management;


in
and collective bargaining; workers participation
and union management
has
relationship. Attempt

also beenmade to identify


major industrialrelations issues and
initiatives
organisational
relations environment.

for

improvement

in the industrial

INTRODUCTION
The

present

examine
work

study

relationship
culture in Indian

is an outcome
between

of the research

industrial
The

organisations.

relations

out

carried

environment

study aimed

at

to

and

exploring

implications of corporate ideology and work culture for industrial

relations

case

The

environment
study

involves

and private
in public
sector organisations.
one
one
sector
sector
and
private
public

organisation belonging to the same industry and located in the


same

be

cultural

referred

maintaining
Ms.

Mamta

New belhi

sector organisation
will
region in India. The public
sector as
for the sake of
to as 'A' and the private
'J3'
confidentiality.

Panda

is Research

Associate

at

International

Management

Institute,

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466

Indian Journalof IndustrialRelations


'A'

Profile

Organisation

was
set up in 1987 in the eastern part of India
organisation
installed capacity of 2,30,000 tonnes per annum of metal and

The
with

is considered to be a turningpoint in thehistory of Indian metal

it has not only addressed


In a major
the
industry
leap forward,
need for self-sufficiency
in that metal, but also given the country a

technological edge inproducing this strategicmetal on thebest of

world

standards.

The

organisation

segments

including

has
mines

five multi-locational,
well-integrated,
and captive
and has
power
plant

developed port facilities forexport. In addition to theCorporate


Office there are Zonal/Regional Offices at Kolkatta, New Delhi,
and Mumbai.

Chennai,
The

organisation

been making

has

consistent

profit

since

its

inception. The sales turnover of this profitmaking organisation

was

Rs.

during
vision

1506.65

1998-99.

crore

It is also

of

the organisation
in its field" while

repute

and

the profit

after

tax was

248

crores

of this metal.
The
major
exporter
is "to be an organisation
of global
the mission
in
is "To achieve
growth

business with global competitive edge providing satisfaction to


the

at
shareholders
and community
customers,
employees,
In
of
the
in
interests
of
the
large."
recognition
securing
society
a wholesome
sustainable
industrial
with
growth,
compatible

environment,
importance
environment

to

the organisation

affirms that it assigns high

and maintenance
of a pollution-free
promotion
in all its activities.
It also dedicates
itself to ensure

a green and wholesome


environment
for sustainable
industrial
growth

environment
As

major

in all areas
and

of its operations
in
to set standards

management.
initiative

towards meeting

social

responsibility,

it

has adopted a policy of playing a catalytic role in general


improvement of quality of the lifeof people living in theperipheral

In this
various
in
taken
been
villages.
regard,
steps have
with the local government
collaboration
and authorities. The plants
of the organisation
in
located
areas;
though
populated
sparsely
a direct
there was
at
of
about
600
the
time
families
displacement

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Industrial

Relations

Environment

and Work

467

Culture

not only took advance


of starting of the project.
The organisation
measures
to rehabilitate
all the displaced
families in a well-planned

but also provided


colony with basic amenities,
training to groups
to improve the scope of their
of affected persons
The
employment.
in direct
conscious
efforts have resulted
than
of more
employment

in the organisation.
1800 persons
from affected families
Besides,
a
have
the organisation's
operations
generated
large variety of
and
income
the
for
of adjacent
employment
opportunities
people
areas.

The employee strengthof the organisation at differentunits as


on 30/04/2002 was 6645 ofwhich 1531were executives and 5114
to non-executive

belonged

category.

The Chairman-cum-Managing

Director is theChief Executive of the organisation who is assisted


by the functionalDirectors such as Director (Production), Director
(Finance), Director (Projects and Technology), and Director
and Administration).

(Personnel

by respective General Managers


by

the Resident

Organisation

The

producing

units

are headed

and theZonal Offices are headed

Managers.
Profile

The

organisation
India with
installed

'B'
was

set up in 1959 in the eastern


part of
annum
tonnes
with
of 30,000
per
capacity

planned start-up of 60,000 t/y ofmetal by July2002. It is one of


the largest Public Limited companies in India and is a pioneer in
the production of the particular metal in the country. With a
nation- wide network of production facilities, it is engaged in all
phases of themetal industry frommining through smelting to
manufacture of a wide range of finished products. In the year
1996-97,

capacity

was

expanded

from 24,000t

to 30,000t

and

in

theyear 1997-98, itachieved thehighest ever production of 28,897

tonnes

as a whole
The organisation
had a total
of primary metal.
crores
with
1997-98
of
realisation
of Rs.1162.5
during
crores as net
profit.

turnover
Rs.71.4

is: "To be a premier metal


of the organisation
a
with
clear
focus to become
competitive,
company
globally
to
and
committed
up
gradation;
technology
through
growth
Its
in quality,
service and environment
excellence
management."
The

vision

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Indian Journalof IndustrialRelations

468

is "To pursue
the creation of value
for all its customers,
core
at
and
shareholders,
society
large." The stated
employees

mission

values

are: Integrity, Speed, Simplicity,

of the organisation

100% Commitment,
Accountability,
and Environmental
Responsibility.

Self Confidence,
Seamlessness,
Concern
for the Community

The employee strengthof theplant during theperiod of studywas


641 ofwhich 45 belonged to executive categorywhile 596 belonged
to the non-executive

THE PRESENT

category.

STUDY

The sample of thepresent study consisted of 212 employees of

'B' belonging
'A' and 145 employees
of organisation
organisation
to all the levels
trade union
leaders. Primary data were
including
as well as
collected
observations
through questionnaires,
in-depth

interviews
of management,
union and
of a cross-section
personal
were
The
workers
interviews
focused
representatives.
primarily
on
concerns
as
into
the
industrial
relations
gaining
major
insight

perceived by the employees.


In the following pages

the prevailing

in the two organisations

environment

is being

of the following aspects:


Structural
Trade

Mechanism

for Industrial

industrial relations
presented

Relations

in terms

Management

Unions

Collective Bargaining
Workers
Union

Participation
Management

Major

Industrial

Initiatives
Relations

in

Management

Relationship
Relations

issues

taken to bring about


environment.

improvement

in the Industrial

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469

IndustrialRelations Environmentand Work Culture


INDUSTRIAL RELATIONS
'A'
ORGANISATION
The

ENVIRONMENT

AT

Context
The

certain

has

organisation

features

unique

in

particularly

the realm of employment policy thathave an impact on theexisting

work

The

culture.

was

organisation

in 1987

established

as

the

firstmajor public sector in the region apparently to boost up the

subsistence

econoiny

on

based

agriculture.

The

of setting

objective

up the plant was primarily to generate employment for the local


people

and

raise

their standard

of living.

The plant

area

covers

39

villages, and despite the employment policy of the organisation,

which

was

maximum

to accommodate

number

of land displaced

persons, initiallytherewere problems of law and orderwhile setting


up the plant.
The workmen,

in the formative

years, were

largely drawn

from

the localpopulace inkeepingwith thepolicy ofproviding employment


to displaced persons. The workmen were not technically trained
nor did they have any experience of working in industrial
In the absence

organisations.

of exposure

to industrial

culture,

for

main source of identity,


which
workmen, thevillage stillremains their
contradicts

basic

norms

organisations wherein

indicative
organisation
status
rather
Ascribed

governing

the employees

of industrial

they seek to identify themselves with the


of their commitment

than achieved

status

and belongingness.
to govern
continues

relationships amongst employees. At shop floor level, groups are


formed on thebasis of viliages towhich theworkmen belong. It is

at
operating
'village panchayat'
on
is
therefore
based
identity
village
shop floors. Inter-group rivalry
a common
commitment
of the employees
Generating
phenomenon.
remains a distant dream.
to the overall objectives
of the organisation
a common
as common
stakeholder
The employee
sharing
platform
and speaking with one voice is to yet to be realised.
not uncommon

The

Current

to see

the whole

Scenario

The problem of segmentation of interestand diffused loyalty is


compounded

by yet another

factor that has been

a natural

outcome

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Indian Journalof IndustrialRelations

470
of localisation
commercial
drawn

of the workforce.

The

employees
and by using

of their own

interests

from local political

have

developed
their influence

exerted
pressures
alongwith
leadership
contracts
to
have
able
for
been
obtain
they
of
and
has
the
like.
This
resulted
waste,
supplies, disposal
delivery
in
as also efforts
to
of their objectives
displacement
contributing
the improved effectiveness of the organisation.
interests
Commercial

on

the management;

have

become

while

the organisation's
towards
working
for
such
secondary
employees.

primary
has become

objectives

The Plant Management,


in this kind of scenario, finds itself torn
the need tomaintain
industrial harmony being constantly
under
threat of extra organisational
forces and at the same time

between

fulfill its obligations to its customers. The decisions taken by the


thus have

management

demands

are

decisions

administration

to be of compromising

on
even
placed
management
like change of shift of workmen.

themselves

on

routine

There

is a

that those who can align

growing feeling among theworkmen

can pursue their individual


operative political forces
as
can
interests
also
get away with acts of indiscipline

with

and personal

nature.

Forces

Extra-Organisational
Undue

inevitably

at the cost of defined areas ofwork


responsibility.This leads to the
growing
against

to take up these issues of favouritism and


protection
norms, to the corporate headquarters.
organisational
tendency

at the local

./corporate level therefore is constantly


issues arising with a view tomaintaining
and meeting
the targets. This has driven
them to adopt
harmony
a short-term orientation
the organisation
to
to continue
enabling
Management
under pressure

to resolve

make

concerns
for bringing about improvement
profit. Long-term
in various
of organisational
dimensions
essential
for
effectiveness
sustained
are
the
of
thus
long-term viability
enterprise
neglected
in the context of
emerging
competition.

Structural

Mechanism

for Industrial

Relations

Management

At the plant, theDirector (Personnel & Administration) is the

head

of the industrial

relations machinery

of the organisation

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who

Industrial

Relations

Environment

and Work

is assisted by theGeneral Manager

units.

the

Under

471

Culture

(HRD & Administration) of the

General

other HRD
Managers,
of industrial
relations
activities
are also
executives
of the respective Units. The HRD
inside
placed
in case of disputes
as well
as to facilitate
to mediate
the plant
a
informal grievance
of
Besides,
system.
handling
good number
are
as
to
act
for
the
line
organised
training programmes
personnel
respective
the coordinator

executives

act as

facilitators

of industrial

Conciliation

Machinery
is no

There

relations.

conciliation

for the settlement

set up in the
committee/machinery
of disputes.
Continuous
interaction

organisation
with the representatives
of the unions and proactive
steps restricts
or
to
third
the disputes being referred
Government
party
machinery.

Most of the disputes pending before theCourts/Tribunals are the


or manifestation

outcome

Grievance

Handling

Grievance
equal
handle

of inter-union

rivalry.

Committees

handling

representatives
the individual

committees

have

been

constituted

and management
the employees
common
The
issues are
grievances.

from

with
to
first

discussed at the unit level in the regular monthly meetings and

matters

are taken
to all the employees
of the organisation
at
settled
level.
level and mostly
bi-partite

relating

up at corporate
Trade

Unions

Being a multi unit public sector, the activities at the plant are

examined
units.

There

in the context
are

at its different

total 24 trade unions

units

and

in the other
prevailing
in the organisation
existing
of them only one union has

of the situation

offices.

Out

been accorded recognition from 15/05/2002 fora period of 3 years

Other unions of the organisation


in respect of the Refinery Unit.
are
and non
to the multiplicity
Due
of the unions
un-recognised.
co operation
in check off system, the membership
of the unions
:
unions of different units could not be ascertained
of
the
strength
so due
of individual
more
to the dual membership
employees.
could
of the unions at M and R complex
the membership
However,

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472

Indian Journalof IndustrialRelations


from the recent verification

be ascertained

of membership
through
the
State
the
Labour
Authorities
by
during
one
month
of May, 2002 and accordingly
union has been accorded
at
Office
recognition.
Similarly,
Corporate
though the verification
secret ballot

conducted

process through secret ballot has been completed since 01/03/


the results

2002,

not

have

been

since

published

the matter

is

subjudice in the Honourable High Court. The verification of


membership of theunions at theplant has not been conducted yet
is at the hands

and

membership
been made
initiating

of State Labour

For verification
of
a
has
request
recognition
for
Labour
Commissioner
(Central),

and

Authorities.

at Mines,

subsequent
to the
Regional
action in this regard.

of the total 24 trade unions

Out

10 unions,

existing in the organisation, barring


are affiliated to different Central Trade Union

other unions

The details

Organisations.

of affiliations of Unions

5
3
5
1
10

INTUC
HMS
BMS

CITU

Unaffiliated
Collective

are as under:

Bargaining

In absence
unions

are

as well

as

given

of recognized
equal

negotiations

unions,
representatives
in various
scope for participation
and collective
bargaining.

of all

the

committees

Applications to theLabour Authority atCentral and State level (as


appropriate) have been made forconducting the secretballot towards

verification
Workers

of membership

Participation

and subsequent

recognition

of unions.

in Management

Involvement

of
to
in production
and
employees
participate
as well as
increases
greater
productivity
generates
awareness
the
about
their role in production,
among
employees
safe working
and
control, waste
process
prevention,
practices,
in
conditions.
this
also
Besides,
improvement
working
provides
related

activities

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Industrial
an
and

Relations

including

measures.

In line with

to express
their innovative
ideas
inwork
and
other
work
systems
related
safety, cost control and work

the scheme promulgated

on Workers
has

organisation

473

Culture

for improvement

suggestions
related matters

Government

and Work

to the workers

opportunity

welfare

Environment

introduced

by the Central

in Management,

Participation
a scheme of Workers
1990

since

the

in
Participation
for workers

January
providing
unit level and apex level.
floor
level,
participation
shop
Initially,
and
councils were not appreciated
the participative
by the unions
to acute
not
inter-union
the
unions
did
their
due
rivalry
give

Management,

nominees

at

for such councils.

with

However,

constant

follow up, at

present, a total of 41 shop councils are functioning at different


units. Experiencing smooth functioning of the designed shop
councils,
councils

further actions

and

Besides
committees

be

would

taken

for information

of plant

councils.

apex

the shop councils, the following participative


with
are

management
Canteen

equal
functioning

Management

nomination

from

at the units.

employees

joint
and

Committee

Safety Committee
Welfare

Committee

Grievance
House

Committee

Allotment

Advisory

Committee

as a measure
of Total
Circles
Further, the formation of Quality
as
as well
movement
better
employee
encouraging
Quality
the qualitative
has enriched
participation.
participation

Quality Circles
The

organisation
encouraging workmen

introduced

Quality

to identify problems

Circle

with

a view

and seek solutions

to

to these

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Indian Journalof IndustrialRelations

474

to bring about improvement in their respective work spheres.


problems
reward for those quality circle groups
There is a system of monetary
are
for implementation.
whose
solutions
accepted
suggestions/
Reward
A

Scheme
reward

in the units with an objective


is in operation
from the employees
number
of suggestions

scheme

more
to encourage
for improvement
encouraging

and
in operational
of participation

areas
thereby
in the management.

related

sense

Individual employees or thegroup is rewarded forproviding good

suggestions.
Union

Relationship

Management

between
Relationship
Lack
from being cordial.

observation

is far
and the workmen
management
of respect can be illustrated
through the

of one of the managers:

"On the shop floor, if there is only one table and chair, the
workers would occupy it and not offer the GETs (Graduate
Trainees)

Engineer
The

workmen

to sit down."
tend

to use

and threaten
language
dire
of
managers
consequences
to their demands.
therefore
Managers
abusive

the first and middle

particularly
if the latter do not yield
distance
tend tomaintain
is kept

to the minimum

from the workmen

so as to ensure

and

the interaction

that at least work

is carried

out normally: instances of indiscipline, loitering, sleeping during


night shiftsand the like are ignored. In the absence of firmaction
from

the management

legitimacy
managers
but does
managers

the undesirable

the workmen.

behaviour

acquires
to one of the

amongst
According
comes
to the workplace
if a worker
"we feel helpless
we
not work,
Middle
cannot
level
do anything".
lack of support
from top
about
often
complaint

want
in case
to enforce discipline
amongst
management
they
is therefore tendency among middle management
workers.
There
not to initiate any action as they perceive
that they may not get
the support of their seniors. As seen in quite a few cases, decisions
taken by middle
have been
reversed
level managers
by their

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Industrial

Relations

Environment

and Work

475

Culture

the workers
and the management
superiors. The tension between
transcends
the
of
the
and continues
beyond
boundary
workplace
to persist in the social life as well, as one of the managers
quoted,

"inside
'Sirs'.

the plant we are called


'Sir' but outside
the plant they are
have
and
muscle
money,
power
They
they stay in the same

type of quarter (B type)."


These

are

gestures

of

symbolic

and

strained

hostile

relationships particularly between themiddle managers and the


workers. The hostility also gets expressed at times in physical
and

assault

nevertheless,

humiliation.

they

cases

these

Although
indicators
significant

are

of quality

are

rare

of employee

relationship.
Relations

Industrial

Major

Issues

In the context of prevailing situation the approach to industrial


is based

relations

and

on

adhocism

vision.

perspective
status of sole
bargaining
of
each of
membership
a common
is
membership
Undue
complex.
groups

interference

No

has

longer-term
to
the
acquire
to verify the
difficult

been

It is also
agent.
the three existing

able

unions.

Fluidity

of

phenomenon.

from local

leaders makes

and continuance

The

than

rather

union

emergence
nullifies any attempt

to deal with

the situation more

of village-based
pressure
formal unions. The undue

pressure generated by theworkmen working in critical technical


production processes mitigates any attempt by the unions in
influencing

the management.
to manage
issues

prerogative
informal consultation
Quarters
Due

with

its own
thus uses
Management
to industrial
relations with
relating

the registered

unions.

Allotment
to non-availability

of rental

accommodation

in the local

constant

to provide
pressure
as
as well
itsmanagerial
personnel.
in number, at times
limited
The number of quarters available
being
as well
as to
to the workers
is allotted
the same type of quarter
to
resentment
the
has
led
which
among
managers
employees.
is under

the management
to theworkmen
accommodation

area,

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Indian Journalof IndustrialRelations

476

Employment of Land Displaced Persons


a

As

sector undertaking

public

has

the organisation

priority to providing employment to thepersons whose


has

organisation

acquired.

top

given

land the
was

the fact that employment

Despite

provided to the local people in the initialstageswhile commissioning


the plant,

to displaced

the employment

persons

continues

to remain

a live issue affecting the industrial relations climate in the plant.


This issue acquires significance in the light of pressure of
so as to remain

of manpower

downsizing
informal

political pressures
to employment
issues.

Cases

Pending

in Various

are

Formal and
competitive.
on the
management
relating

placed

Courts

The number of IndustrialDisputes filedbefore various Courts,


are detailed

Tribunals

in Table

1.

In all

are

the matters

the cases,

pending before the authorities forhearing.


Claims

All the cases of claims with regard to fatal accidents have been

settled.

The

accidents
pending

pending
with
the
Act

Compensation
Restrictive
Workers

of claims with

total numbers

are

for settlement
Commissioner

for final decision

regard
21. All

to other non-fatal
are
these claims

under

the Workmen's

and disbursement.

Practices
often

to restrictive

resort

authorised

absence,

respective

workplace,

practices

insubordination,
not punching

in the form of un

outside
loitering
their cards,
coming

their
late,

spending time in the canteen during working hours and the like.
Role of Corporate Office
There is a feeling especially amongst themiddle levelmanagers

that

the

indiscipline
discipline,

the Corporate
is not very firm. As

role

my

of

senior

reverses

Office

quoted by
it". The

in matters

a manager,
result

is a

to
relating
"if I enforce
feeling

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of

IndustrialRelations Environmentand Work Culture


helplessness

among

short-term
industrial

objectives
relations

in dealing

with

the managers

and

cases

477

of indiscipline

are on

the rise in the plant. It is also felt that the Corporate Office has

Measures

with regard tomatters


relating tomaintaining
in the plant and does not
give its full support
sensitive matters.

Undertaken

actions

Proactive

in Industrial

for Improvement

Environment

and open

communication

Relations

system

facilities

mitigating of the grievances and disputes. Attempts have


been made to settle the differences at bipartite level before
the same is taken up by thirdparty/conciliation machinery
of the Government.

The

communication
have

system
interference
In order

improved
unions.
of various

to promote

The

also

negotiations

trade unionism,

sent

are also
for a cause

Informal meetings/

specialized

including leadership development


The employees
in the productivity

committee

co-ordination

the unions

grievance
handling
to avoid unnecessary

are conducted.

tours.

industrial

as

in order

responsible

training programmes
programmes
are
leaders

as well

system

been

encouraged

get-togethers

trade union

missions

core group

and

of common

and

during

and

from among

the time of

nature.

are

organised

in order

to

wipe out the feeling of rivalry amongst the employees of


various

central

trade union

INDUSTRIAL RELATIONS
'B'
ORGANISATION
The

organisations.

ENVIRONMENT

AT

Context
The

climate

relations
industrial
has a history of healthy
organisation
in
and informal and friendly work
prevails
atmosphere

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478

Indian Journalof IndustrialRelations

theorganisation. Employees feel theycan air theirgrievances and


to the appropriate
any reservation
authority without
is considerable
in the system.
of
degree
transparency
members
listen to each other, are helpful, cooperative

complaints
and there
Organisation
and hard

working.

Structural

Mechanism

for Industrial

Relations

Management

The Vice President of the organisation at the headquarter is


assisted by theManager Personnel of theunit and thehead of the

unit who

act as

relations

in the unit.

and

coordinators

are

Line managers
of industrial
relations.

facilitators
Common

issues

concerning

for industrial
responsible
are also
to act as
expected

are

employees

brought

to the notice

of themanagement by the unions in their


monthly meetings. The
trade union leaders find itdifficult tomobilize the support of the

as the latter are


workmen,
equally well
union
leaders
look towards managers
breed
a

workers.
knowledge
Management
to
terms to the unions.
dictate
position

Trade

informed.

Often

the trade

for dealing with


the new
thus often finds itself in

Unions

There

are two trade unions

them only one

union

existing
accorded

has been

in the
organisation;

out of

recognition.

Ideology and Concerns of Trade Unions


The

short-term

objectives

of the unions

in

general

as outlined

by the trade union leaders are to provide benefits toworkers


through

agreement

and

to win

their confidence.

The

long-term

objective is growth of theorganisation and employment generation


for better

relations. The main


of the unions
is
employee
ideology
the protection
of benefits for the workers
and long-term benefit to
the organisation.
The issues raised by the unions
are more or less
same. Some of the
are:
issues
raised
major
Out

Sourcing

Employment

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Industrial

Relations

Environment

and Work

479

Culture

Benefits
Welfare
Collective

Bargaining

Collective Bargaining
union.

trade

recognized

union

recognized

through secret
are:
done

is done once in three years with the


The

and verification

ballot.

The major

sole

bargaining
of membership

issues

on which

is the
agent
has been done
bargaining

is

Productivity,
Paid

Leave

Welfare

Benefit,

Measures,

Restrictive

Practices.

Settlements

The periodicity of Settlements is 3 years. The highlights ofmost

recent

settlement

Reduction

are as follows:

of Manpower

Productivity

Increase

Zero Payout Benefit Settlement


The agreement in the settlement ishonoured by both theparties
almost in letterand spirit except for a few restrictivepractices by
the unions.

Workers

Participation

in Management

on Workers
in
with
the scheme
Participation
the
the
Central
started
Government,
organisation
by
Management
for participation
has set up various
shop councils and joint councils
at the shop floor level. These
councils
in management
of workers
In accordance

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480

Indian Journalof IndustrialRelations

have been highly effective in resolving disputes and bringing about


in

improvement
are

There

other

committees
and

Health

Environment,

at the
shop

conditions

working

such

Safety,

and

as

floor level.

the

on

committees

the Canteen

Committee

(Table 2). These committees are highly effectivein regulatingmatters


related to the health and safety at theworkplace and protecting
in general,

the environment
through

incentives

and

to the employees
giving encouragement
ensures
awards.
The canteen
committee

thatnutritious food isprepared under clean and hygienic conditions

in the canteen.
Grievance

Handling

Grievance

Forums

handling

forums

such

as

shop

and

joint councils

and open house have been constituted with themajor objectives

of
reaching
have direct

manner
faster and in a peaceful
agreement
on decisions.
interaction with top management

and

to

These

forums are functioning in a highly effective manner in the


organisation. The details of the forums along with theirmajor
objectives are outlined in Table 3.
Safety
a
there are a number
Safety is priority concern in the organisation;
of committees
and suggestion
schemes
such as "Spot the Hazard"
are in
which
success
The
of
the
schemes can be measured
operation.

from the fact that themanagement implemented 97 per cent of the

For safety and environment,


safety suggestions.
are
to take corrective
created
action.
groups

small environment

Corrective

Action

Request (CAR) consisting of professionals fromdifferentfunctions


have been formed tomeet and discuss the problems
relating to
environment,

Union

safety, hazardous

Management

Cordial

conditions

and

the like.

Relationship

and

informal

and

the unions.

exists
between
the
relationship
The
consults
the
unions
management
management
on issues
at the
frequently
relating to day-to-day
problems
shop
and other issues of common
concern.
floor, departmental
Monthly

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Industrial

are held wherein

meetings
besides
Work

work

Environment

Relations

those

relating

to new

and Work

the departmental
equipment,

481

Culture
are

issues

taken up,
etc.

issues,

ownership

Autonomy
are

Employees

in

spheres

given

a lot of
independence

and

freedom

in their

decision-making.

Orientation

Employee

Employees

are

looked

after very well.

Free

canteen

good in quality and quantity is provided.

food,

Tea is provided freeand supplied in un-limited quantity.


are not thrown out of their
jobs. There
Non-performers
that
to
the
retire."
join
organisation
saying
"people

is a

There is freepower supply to the employees.


tests of blood

Diagnostic
every

and

urine

for workers

are done

year.
is a medical

There
In case

check-up

of hospitalization,

also

for contract

attendance

labourers.

allowance

is paid

to

employees.
Industrial

Major

Relations

Concerns

Although there seems tobe a climate of harmonious industrial

with cordial and informal relationship


in the organisation
concerns
some of the major
and unions,
the management
between
as
by the top management,
perceived
relating to industrial relations
are summed
and
workers
unions, middle
managers,
supervisors
4.
in
Table
up
relations

Adherence

the plant caters to the captive market,


are yet to become
internal, the employees

Since
being

to Values
i.e. their customers
aware

of the need

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Indian Journalof IndustrialRelations

482

care. The values have not been


customer
quality and
of quality
and the urgency
for inculcating
the values
internalized
is not being felt.
consciousness
tomaintain

Job Specialisation
The

organisation

- one

of one man

the principle

job.

is very rigidly followed. In case an employee

Work schedule
or there

absent

adopts

is heavy

in certain

workload

is

the operators

areas,

refuse to carry out the job beyond their scope ofwork. As a result
the work

On

has

to be carried

out on

overtime

is carried

an average
on a

he
holiday,
are calculative

responses

reward

monetary

is paid

of overtime

10,000 hours

the amount.

double

as

in nature

payment.
in a month.

Employees'
think of some

they always
that they undertake:
work
is one of the highest in the country.

in return for additional

cost in the organisation

employee

out

there is a system of paid holidays and ifan employee

Like wise
works

the basis

The

while
the industrial
relations
employees,
assessing
in the organisation,
environment
feel that the major
industrial
are:
encounter
in
relations
issues the organisation
future
may
To get an agreement
Drastic

reduction

on

higher

on overtime

to cut cost of
employment.

Flexible norms to be adopted


towhich

situation,

the unions

norms.

productivity

to handle volatile market

may

not agree.

Strikes, Restrictive Work Practices; Cases of Indiscipline


The
has

industrial

been

peaceful
barring
and indiscipline.

practices
from agricultural
of

industrial

Absenteeism
practices

relations

are

situation
a few cases
The

background

in the organisation
of strikes, restrictive work

have come mostly


young workers
and are not aware of the demands

and
organisations
in the organisation
presented

in general

in Tables

how

to maintain

is high.
The
5,6 and 7.

discipline.
details
of such

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Industrial

Environment

Relations

Industrial

Relations
are no

There

Related

and Work
Cases

in Courts

Pending

relations

industrial

483

Culture

cases

related

in

pending

courts.

Role of Corporate Office


The role of the Corporate Office in matters relating to
industrial relations is limited to policy making, sharing business
and

plans

and

practices,

Measures

interventions

as and when

for Improvement

Undertaken

necessary.

in Industrial

Relations

Environment

and

Industrial relations at thisplant can be described as long term


well

The

has
organisation
the industrial
relations

planned.
to improve

measures

and quality
participation

climate,

though a number of activities

and employee

involvement.

a number

taken

Some

of

productivity

that encourage
of these measures

are:

Total Quality Management


ISO certification
Kaizen

Small group activities


Participative
councils

While

fora like working/steering

committee

and

TQM has been functioning very effectively, as also


in Management
Participation
has also
The
organisation
improvement.

needs

the Workers

Kaizen,
considerable

which
for workmen
formulti-skilling
programme
to have given
the desired
result. The suggestion
organisation

shop

are

working

does

started
not

schemes

well.

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seem
in the

Indian Journalof IndustrialRelations

484
Training

& Development

on
are
by hiring external
training
organized
Regular programmes
for development
and union executives
faculty to train key workmen
workmen.
of mature,
among
leadership
professional

Redeployment ofManpower
in technology necessitates
retraining. The management

of manpower
redeployment
in this
has been cooperative

Change
through
regard.

of workers

Age-profile

younger

being

re-training

and

re

deployment policies are implementedwithout much difficulty The


union

too feel that as both managers

leaders

and workers

are young,

there is a need to bring them up to the required level ofmaturity


and develop trustingrelationship in them.
ENVIRONMENT
'B'

INDUSTRIAL RELATIONS
'A'AND
ORGANISATION
The

description
'A' and
organisation

relations

of the industrial
'B' very clearly

AT

at

environment

indicates:

B has a clear long term industrial relations policy


Organisation
with
considerable
of autonomy
for management
of
degree
industrial relations at unit level whereas
organisation A, despite

its long term intent,is often compelled togive priority to short

term

objectives.

Being

public

sector

with

undertaking

multiple units, theunit ofA does not seem to enjoy the same
degree

of autonomy

At organisation

in industrial

B there are only

relations

related matters.

two registered

unions,

one of

which is recognized and is the sole bargaining agentwhile in


organisation
recognized
conflicting

there are ten registered


trade unions with no
an
act
of balance
union, necessitating
amongst
demands
of interest groups.
A,

At organisation
B, there is a cordial and informal relationship
between
in
and
the trade unions,
but
management
organisation
formal with

seems
to be strained
A, the relationship
trust and respect.
relative lack of mutual

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and

IndustrialRelations Environmentand Work Culture


AND

CONCLUSION

485

IMPLICATIONS

It is quite evident from the findingsof the study that industrial

system is largely governed


by legal and administrative
in
both
the
There
difference
framework,
is, however,
organisations.
in degree
the two organisations
with Organisation
B
between

relations

In the emerging market driven


this to a lesser extent.
experiencing
union
economy
management
relationship will need to be managed
norms
and mutually
within
of
the framework
developed
agreed

upon by both theparties.


The

may

current

become

industrial
an

to

impediment

at Organisation
'A'
the organisation's
vision;

scenario

relations

organisation thus needs to address the issue pertaining to healthy


interface

employee-management

and

union-management

relationship.
orientation
thus will have to be replaced
Legal and administrative
to
to
orientation
industrial
relations.
The focus need
normative
by
to mutual
sectarian
from
shift from competition
collaboration,
interest

to
of the corporation,
from win-lose
objectives
strategy, for resolution of differences which will necessitate

to overall

win-win

attitudinal change as also a shift in collective paradigm of union

to work
to create a work
in harmony
and management
together
to be
Intensive
need
culture of excellence.
training programmes

organised formaking the employees aware of theneed foradoption


of normative

approach,

collaborative

orientation,

building and developing holistic perspective.

competency

Focus will have to shift from job security to employability.


Retraining and redeployment of employees will have to be
on a systematic basis formaintaining
high morale during
and also to address
the concerns of the union
layoffs and downsizing
In due course, collective
for protection of interests of the employees.
on
to be based
than
rather
will
have
integrative
bargaining
as
an
instrument
charter
demands
of
distributive
Separate
approach.
undertaken

of collective

bargaining

will

become

redundant

necessitating

the

adoption of jointproblem solving approach within the framework

of the vision,

values

and

strategies

and

intent of the organisation.

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Indian Journalof IndustrialRelations

486

Table 1 :Cases Pending InVarious Courts


under

Authority/Courts

Supreme

Court

High Court

of cases

No.

pending

02

26

Industrial Tribunal
Labour Court

03

02

Table 2 :Councils/Committees
Name

are

cases

which

of Committees

and theirMajor Objectives

Major Objectives

Effectiveness

Shop Council

Resolve Dispute at Shopfloor

Effective

JointCouncil

Resolve Dispute atNext Level

Highly Effective

and

Sub-committees

EOHS

Safety,

Health

Measures,

Table 3 :Grievance Handling

Forums & theirMajor Objectives


Effectiveness

To reach to agreement faster and in a


peaceful manner through open dialogue'
To have direct interaction on top

Open House

decisions
management
common
lookout with

Concerns

Decision

Effective

of forum Major Objectives

Shop and Joint


Council

Table

Prizes

Hygiene of Food
Upkeep of Canteen

Canteen

Name

Highly Effective

Environment

and

Safety

:
4 Major

Industrial

Top

Major

Management

Relations
Unions

and

all

share

Highly Effective

Effective

employees

Concerns
Middle

Supervisors

Workers

Managers

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Industrial

Need

Low
productivity

Environment

Relations

of hour

for survival

and Work

Though
union
understands
think people
leave
may
their side

Essential

Outsourcing

Loss

Scope for

Difficult to

productivity

implement
without

improvement
is enough

the need

of

487

Culture

Essential

change
attitude

Will be
losers on
account

in

of

overtime
benefits

Will be

Essential

extra

losers on

earning

account

of

overtime
benefits

Table 5 :Strikes
No. of Strikes
(since inception)
1970Once

Duration
each

of

Outcome

89 days

of each

Settled without hampering production

Table 6 :Restrictive Work Practices


Restrictive Work
Practices like
Go-slow

1995

Occurrence

etc.

Twice

departments

Generally on
what issues

they are
managed

M/M,W/S

Discipline

Bi-partite
Settlement

Inwhich

How

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Indian Journalof IndustrialRelations

488
Table 7 :Cases of Indiscipline
Number of Cases of
Indiscipline (past 5 yrs)

Type of Indiscipline

1997- 21
Mostly Absenteeism
1998-

13

Mostly Absenteeism

1999- 17
Mostly Absenteeism
2000

-23

Absentism, JobRefusal
2001-12
JobRefusal

Frequency
Regular (Chronic
Cases)

Regular (Chronic
Cases)

Regular (Chronic
Cases)
Regular (Chronic
Cases)
Concentrated to
one Area

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