XLRI JAMSHEDPUR Pranabesh Ray

HINDUSTAN METAL LTD

On 29th November 1991, an official order was received by all officers at Hindustan Metal
Ltd. (HML) saying that they are to report for duty at 5.00 am the next day. This was as a
precaution against the token strike called by the Nominee Action Committee (NAC) on
that day.
Traditionally, HML had a policy of recruiting one nominee of each worker during his/her
tenure or even after separation. This was done periodically, whenever some vacancy
arose. But in 1985, the government, in order to reduce manpower in the public sector,
declared a ban on recruitment. Accordingly, being a public sector unit, HML management
also complied with the government directive. However, graduate engineers or diploma
engineers were engaged as trainees during the ban period. The management explained
that as per the directives of the Apprentice Act of 1961 the company is bound to engage
some trainees each year.

HML is the only major industry located in Madhavpur. Madhavpur is a small town in the
eastern part of the country where the scope for education and vocational training is very
limited. The local residents who were working in the company for generations were not
very much perturbed by this lack of facilities because of the recruitment policy of the
company.
The ban continued upto March ‘90. Mainly because of this along with normal
superannuation and separation the manpower of HML was reduced considerably. So the
management, during that period re-evaluated the manpower inventory of each and every
department and redeployed them suitably in close consultation and consensus with the
union (HMWU).
Hindustan Metal Workers Union (HMWU) is the only union in the organization and is
affiliated to AITUC. Keeping the financial future of HML in mind, the union was quite
eager to help the management in redeployment. The leaders argued that by this they
were preventing future retrenchments.

Vishnu was one of the frontline leaders of HMWU till he was expelled from the union
leadership because of unlawful activities (Appendix). Because of his earlier position as an
HMWU leader, Vishnu was quite close to some managerial personnel in HML. Around the
middle of '91 from his sources Vishnu was able to know that the ban had been lifted by
the Govt. in April '90 but the company had not disclosed this to anyone. He interpreted
this lapse on the part of the company as intentional and contrary to labour welfare. But he
mainly criticized the fact that it was not brought to light even by the recognized union and
interpreted it as a failure on its part to look after its own interest and that the union is
playing pet to the management for some vested interest of the leaders.

Around this time some local youths were trying to organize themselves and raise their
voice against the ban on recruitment but was unsuccessful. Vishnu seized this
opportunity and came forward to lead these unorganized youths to protest against the
malpractice of the management as well as the HMWU. With his initiative the Nominee
Action Committee was formed in August '91.
----------------------------------
Prepared by Dr. Pranabesh Ray from student’s data. Copyright (c) 2020, by XLRI, Jamshedpur.
Case material is meant solely for class discussion. Cases are not designed to present illustrations of either
correct or incorrect handling of administrative problems or managerial situations, or to be a source of primary
data or endorsement of a particular managerial style.
NAC started its agitation soon after its formation by erecting a temporary shed in front of
the works and the general office gate. Each day before the start of shifts they shouted
slogans. The slogans were mainly anti-management and they also abused the HMWU
leaders referring them as chamcha (i.e. being a mere puppet in the hands of the
management). Initially there were only a handful of youths but slowly its membership
grew and activities gained momentum. Under the leadership of Vishnu, NAC organized
gate meetings, distributed leaflets trying to form a favourable mass opinion. This went on
for about a month.

On 29th September '91, NAC tried to gherao the Executive Director of HML when he was
about to enter his office. However, the company security force was able to disperse them
away.

On 6th, Oct' 91 i.e. on the pay day, Nominee Action Committee started collecting
donations from the workers much to the dislike of HMWU. Inspite of their vehement
protest, NAC was able to collect a good amount of donation to meet their expenses.

Again in the morning of 29th Oct.'91, NAC successfully gheraoed the residence of DGM
(P&A), Mr. Sinha. Sinha saab was forced to come out and talk with Vishnu assuring him
that he will look into the matter within a week. At his words, on that day after about three
and half-hours Nominee Action Committee removed the gherao.

A couple of weeks went by, but there was no answer from the management. However,
Mr. J P Singh, the Secretary of HMWU, in one of its gate meetings took up the matter of
employment of the nominees and stated that it will press the management for the same.

As the days went by NAC members were becoming restless because they were unable to
achieve any fruitful results out of their agitation so far. So, they decided to have a token
strike. NAC declared a strike on 30th November '91 and gave a written notice to DGM (P
& A) saying that they will prevent people from entering the works in the morning and
general shift. The management in order to make the strike ineffective ordered all the
officers to report at 5.00 am and also decided to hold back all the workers from the night
shift on overtime.

APPENDIX

Apart from being a leader of HMWU, Vishnu was also the general secretary of a union in a
small factory located in Jamukpal, 10 kms away from Madhavpur. Being a resident of
Jamukpal, he was well known amongst the local tribal population and with his good
organizing ability, oratory skill and unsatiable ambition he could easily rise to the general
secretary's position within a short span.

The management of the small factory for its own reason was looking for a temporary
closure. Vishnu joined hands with the management and manipulated his supporter
workmen to stage an agitation putting up a six-point charter of demand. The
management in retaliation called for a lockout of the factory. But somehow this
malpractice was exposed and although not punished, Vishnu was temporarily taken into
custody by the legal authorities HMWU promptly expelled him from their leadership
although his membership was not cancelled.
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Not to be reproduced without permission of Dr. Pranabesh Ray