Employment Related Laws- Case Study Solution

Submitted By:

Name PRN Signature

Akhil Kumar 1054

Akshay Singh 1058

Anchal Bansal 1064

Anjli M. Minj 1065

Anushree Chauhan 1066

Casey Ralte 1068

Deldan Wangchuk 1071

Divyanshika 1072

Heena Pathak 1074

Dhammapriya K 1076
1. What are the key issues discussed in the case?

 Local workers dominating the workforce in the unit, because of proportionately fewer young engineers
 Healthy communication channel is not established between junior managers and workers
 Senior managers trying to evade conflict between junior engineers and workers
 High turnover of young engineers and unsatisfactory performance of the company in the bagging plant
 Casual approach of workers and unsatisfactory progress of work, Management not proactively looking for
worker’s interests
 Management and workers not in sync regarding issues production incentives, overtime, canteen services, etc.
2. Was the decision taken by the General manager justified?
The decision taken by the GM was not justified on his part.
a) The withdrawal of the order would create a feeling of distrust among the junior engineers for the management.
It would also create a feeling among everyone that the management is weak and can be strong-armed to listen
to the influential party. If an exact situation gets replicated in the future, there is no guarantee that the
management won’t be strong-armed again if they bow down this time. Hence, if the strike is bound to happen,
the management could pacify the workers telling that the order would only be upheld up until the enquiry gets
complete, max till 2 weeks. If the workers still give a notice to strike, all parties could negotiate to come to
agreement within that notice, else the strike could be termed illegal, if all else fails.
3. What will be the repercussions of the General Manager’s decision?
The hasty withdrawal of the decision by GM to oblige the majority will lead to the following repercussions:
a) Strong union dominance over the management in early stage leading to unnecessary demands every now and
then which might culminate into strikes, lockouts, go slow etc. whenever the demands are not fulfilled
b) Further strain in relationship between workers and junior engineers resulting into workers not listening to their
supervisor
c) Loss of trust of junior engineers leading to high turnover and loss in productivity
d) Mr. B’s approach that “why should we bother about company’s interest” will not be condemned by the workers,
therein workers trying to emulate Mr. B’s actions
e) Management would be looked down and would be taken as not capable enough to make rationale decision
4. Does the Personnel Manager’s apprehensions have any foundation from an industrial relations points of view?
Yes, the apprehensions have strong basis from IR point of view.
 The personnel managers concern, that the withdrawal of suspension order will lead to dissatisfaction among
the management is true.
 This will lead to collectivization on junior engineer’s part, thus prompting a formation of Employee Association.
Therefor the gap between the trade union and employee association will widen and will adversely affect the
productivity of organization
 The objective of IR that just and fair treatment on equal basis with mutual respect between both parties without
any party gaining undue dominance or leverage over the other was overlooked, decision of GM emboldened
the union and their acts. Creating an illusion of unequal balance of power between the parties
5. What decision would you have taken as General Manager?
 Withdraw the suspension order issued or issue a final warning in case he found guilty to Mr. B since that can
lead to strike and unrest among workers. Situation will become worse as strike can halt production and company
is already facing economic crisis and production loss because of technical limitations.
 Development or modification of existing policies, for ex: formation of mess/canteen committee which will deal
issues related to food and lunch room, paying overtime allowance if a worker is exceeding 9 hours per day and
48 hours per week.
 As progress of the company is suffered because of casual approach of worker towards Mr. A, performance
appraisal can be linked with work performed which will ensure there is progress related to work well on time.
 Different team building exercise can be done to improve compatibility & hence reduce turnover.