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A Project Report on

“A CASE STUDY ON NEGOTIATION AND SEPARATION OF NEW


ENTRANT TEMPORARY WORKMAN (NETW) AT BOSCH LTD.
NASHIK PLANT”

(CASE STUDY APPROACH)

Submitted to

SAVITRIBAI PHULE PUNE UNIVERSITY

Submitted By

Pranav Prashant Behere

Under the Guidance of

Prof. Prajakta Deshmukh.

MBA

2021 – 2023

MBA Programme

Savitribai Phule Pune University,

Sub Center Nashik.


DECLARATION

I undersigned hereby declare that the project report “A case study on Separation and
Negotiation of New Entrant Temporary Workman at BOSCH Ltd. - Nashik Plant.
(CASE STUDY APPROACH)” written and submitted by me to the Savitribai Phule Pune
University, Sub Centre Nashik, in a partial fulfilment of the requirement for the award of
degree of Master of Business Administration under the guidance of Prof. Prajakta
Deshmukh is my original work.

Place: Nashik

Date: PRANAV PRASHANT BEHERE


CERTIFICATE
ORGANISATION CERTIFICATE
ACKNOWLEDGEMENT

My internship with 'Bosch Ltd. was a great opportunity for knowledge and professional
development. As a result, I consider myself to be a very fortunate individual as I was given
the opportunity to be a part of it. I am also grateful for the opportunity to meet so many
wonderful corporate personalities and professionals who guided me through this internship
period. I'd like to take this opportunity to express my sincere appreciation and gratitude to
Mrs. Rina Pagar, HR Manager, Employee Relations, and Mr. Shrikant Chavan, General
Manager of Human Resources, for keeping me on track and allowing me to explore and
complete my project at Bosch Ltd throughout the internship.

I am extremely grateful to Prof. Prajakta Deshmukh, my faculty guide, for her valuable
direction and sustenance throughout the project. I sincerely thank her for providing her with
valuable guidance and support throughout the project, including ethical support.

I would like to express my gratitude to the 'MBA Programme, Savitribai Phule Pune
University, Sub-Centre Nashik' for providing me with this fantastic opportunity.
INDEX

SN Chapter Page No.

1. Introduction and Executive Summary. 1

1.1. Introduction

2. Objectives of the Study. 7

2.1. Aim of the Study

2.2. Objective of the study

3. Company/ Organization profile (including Organization Chart). 9

3.1. Company Profile


3.2. Company Description
3.3. Organization Chart
4. Research Methodology 16

4.1. Rationality of the Study


4.2. Statement of Problem
4.3. Significance of the Study
4.4. Scope of the Study
4.5. Type of Research
4.6. Type of data
4.7. Source of Data

5. Data Analysis and Interpretation. 24

6. Suggestions and Recommendations 34

7. Discussion and Conclusions. 36

8. References 38
List of Charts

Sr.no Chapter Page No.

1 Pie Chart - 1 (Shareholders of Bosch) 12

2 Organizational chart 14

3 Timeline 27

4 Pie Chart - 2 (Composition of NETWs after break in service) 29

5 Pie Chart –3 (Current Composition of NETWs after break in 30


service)

6 Pie Chart - 4 (Composition of NETWs who signed the both 31


agreements)

List of Figures
Sr.no Title Page no.

1 Dispute resolution Machinery 5

2 Grievance Redressal by Bosch 27

i
CHAPTER 1

INTRODUCTION

1.1. Introduction -

Human resource management has become increasingly crucial in all types of businesses. In
recent years, it has expanded its scope from the administrative-clerical domain to Human Capital
Management. Though the newly coined term HRM is based on human interaction and the
employee-employer relationship, Human Resources have been practised for centuries in various
institutions and kingdoms.

1
The Industrial Revolution and World wars addressed the domain of human resource. The
technological disruption altered job work and created new job opportunities for workers.
Companies automated their production systems during the Industrial Revolution as a result of
machine inventions, resulting in efficient and sustainable manufacturing and high-quality
products. Human management became necessary due to a variety of positive and negative
factors.

Communist philosophies and the International Labour Organization paved the way for
labour/trade unions. Compliance with International Labour and Employment Laws protected the
interests of workers worldwide. Industrial relations also became a recognised term at the same
time as administrative.

The Factories Act of 1881, which gave Indian labourers a few fundamental rights, was the first
labour law to be passed. As a colonised state, India established factories throughout the First
World War since there was a demand for making steel there. Tata Iron and Steel Factory was
founded in Jamshedpur in 1911 to address this demand.

In India, Industrial relations can be divided into four phases The first stage of IR, or post-
independence, lasted from 1950 to the 1960s. The state supervised industrialization during this
time in order to build up the public sector on a vast scale and generate jobs in the closed
economy. With a patronizing attitude to labour relations, the government played an important
role in managing the labour movement. From the 1960s through 1979, the second stage of IR
development took place. This stage was characterised by industrial stagnation and an
unfavourable ratio between the agricultural and manufacturing sectors. The industry was twice
shaken by consecutive oil price increases, which reduced both employment and productivity.
Competition between the unions led to more labour conflicts, labour movements, strikes, and lost
man-days and productivity, which led to a drop in output. The years 1966 through 1974 had the
greatest influence.

Between 1980 and 1991, the third stage of development in IR took place, and it was
characterised by a balance between both the payment crises and loans from the International
Monetary Fund (IMF)with reference to India. The number of new unions increased, and their
focus switched from rights to interests resulting to crime, underworld and political interference.
In the fourth stage of development, which lasted between 1992 to 2000, operational and
economic developments improved employment. The major achievements during this phase
included increased employment flexibility, decreased government involvement in Industrial
relation matters, decentralised bargaining (particularly in public sector units), and fewer strikes.
Due to economic development and evolution of information technology, Industry 4.0, The
Internet of Things and artificial intelligence work patterns altered. The availability of skilled
workers was indeed increasing. Domains such as Talent Acquisition and Performance
Management have evolved. Industrial Relations then took a backseat, and employee relations, a
new domain, took the driver's seat.

2
As the business environment and employment diversified, new concepts such as freelancing,
contract work, and so on were introduced. The function of industrial relations was further
divided into ER - employee relations due to sporadic changes in technology in all the sectors,
explored Human resource in capacity Building, HR Planning, Succession Planning which help in
building strategies in business environment. With reference to manufacturing plant or units,
Industrial Relations still plays a vital role in India and abroad.

Effective Industrial relations is necessary to run any organisation in the efficient way. Industrial
relations is more artistic than science hence balancing it with right way can help the
organisations grow. There are various factors which affect Industrial relations directly or
indirectly –

1) Governments/ Agencies/ Judiciary, etc. –


Factors relating to government policies, labour and employment laws, different
government institutions which govern industries and employments, State government
policies, social demographics, Judicial system, etc.

2) Psychological factors
It includes peoples mentality, their cultures, social systems, practices, attitudes of
employee and employers and staff, their source of motivations, societal values, moral,
ethics, satisfaction-dissatisfaction towards employment etc.
3) Economic factors
It includes socio-economic factors of the employees and employer. Economic conditions
of that region, demand and supply of the areas, development, literacy, type of economies,
etc. influence more in practicing Industrial relations.
4) Technological factors.
Emergence of new technologies, Research and developments, methods of production,
ability of management, coping up with the emerging trends, digitization, etc. governs the
type of employment and hence it is an important factor which affects Industrial relation to
5) Political factors.
Influence of Political factors in trade unions, press and media affect in employee-
employer relationships. Political factors affect more in conflict management, interference,
influence of ideologies govern the working pattern of unions resulting to deviation to the
policies and values agreed by the both employee and employer.

To govern the ethical and value added practice of Industrial relations according to the law there
are three concepts which help the institutions to resolve their disputes to maintain peace and
cordial relations. The Dispute resolution machinery and the process has a very effective way to
resolve dispute and helps both the parties to negotiate.

Three Industrial Dispute Resolution Methods (Machinery).

1. Conciliation

2. Arbitration

3
3. Adjudication

1. Conciliation:

Conciliation is the simple act of reconciling differences between parties. Conciliation is the
process of bringing representatives of workers and employers together before a third party in
order to persuade them to reach an agreement through mutual discussion. The term "mediation"
is the subpart for conciliation. The third party could be a single individual or a group of people or
a legal entity like Advocate & Labour Officer, etc.

2. Arbitration:

It is a process in which disputing parties agree to refer their disagreement to a neutral third party
known as an 'Arbitrator.' Arbitration differs from conciliation in that the arbitrator renders a
decision on a dispute, whereas the conciliator works with disputing parties to reach a decision.
The arbitrator has no judicial authority. The arbitrator listens to the opposing parties' points of
view before rendering a decision that is binding on all parties. The decision in the dispute is been
sent to the government authorities. The government publishes the judgement within 30 days of
its submission, and it becomes enforceable only after 30 days.

3. Adjudicator:

Adjudication is interfering with or without the consent of the disputing parties, the government
may refer the dispute to adjudication. Voluntary adjudication occurs when a dispute is referred to
adjudication with the consent of the disputing parties. When the government refers a dispute to
adjudication without consulting the parties involved, this is referred to as "compulsory
adjudication."

Dispute Resolution Process.

Dispute

Summons or Compulsory first Prescribed


sanction if any party mediation session mediation fees
didn’t turn up (Ex
party)

If both the parties mutually If any of the party


agree to negotiations does not agree

Settlement is If settlement does Case is referred by


not carry out concerned officer to
done
Judiciary

4
Figure no. 1 – Dispute resolution Machinery.

The first version of the bill in India to include ADR in labour disputes was the Industrial
Disputes Act, 1947. As a reliable method of resolving disputes involving disagreements between
employees and management, conciliation has been recognised by law.

Type of Employment:

To understand this report, it is important to know the fundamental dimensions of employment,


which can be further categorised into Permanent and Temporary.

Permanent employees are those Individuals whose primary employment is in a permanent


position or under an ongoing employment agreement. Temporary workers are those whose
primary employment is under a fixed-term contract and only refers to dependent employment,
which also includes sporadic, casual, seasonal, and daily employment. Due to this employment,
disputes regarding temporary workmen, Negotiations, Adjudications, Arbitrations, Conciliations,
Artificial Breaks in service results to increase in issues and diluting the environment and
employee-employer relationship. Retrenchments, layoff weakens the trust in the policies and
actions as they do not go hand in hand with each other.

BOSCH is a manufacturing company that has been producing automotive products for decades.
This report, "A Case Study on The Negotiation and Separation of New Entrant Temporary
Workmen at The Bosch Ltd. - Nashik Plant," is based on my internship at the Bosch Ltd. Nashik
plant's HR department from September 7, 2022, to October 31, 2022. It details an industrial issue
that arose when Bosch gave their NETWs a break in their service as per customary practice and
their service conditions, which was followed by a appeal that was filed at Industrial Court,
Nashik.

The case study articulates significance use of break in service, negotiations and separations in
the events that took place in the case. Agreements among two parties were signed twice.
Beginning with a two-party agreement for seven lakh rupees, a three-lakh rupee agreement was
later signed. Some employees are currently involved in the dispute and legally battling it, while
others have chosen to remain neutral or reach a two-party settlement. As an intern, my duties
included maintaining records and documents, liaising with lawyers for settlements, and
submitting paperwork to the government's Office of Secretariat and the Chief Labour
Commissionerate in Mumbai.

5
CHAPTER 2

OBJECTIVE OF THE STUDY

AIMS AND OBJECTIVES

I.1 Aim of the Study:


The aim of the study is to Analyze and document the Negotiation and Separation pattern
followed by Bosch Ltd by case study approach.

I.2 Objective of the Study:


1) To know the occurrence at Bosch Ltd, Nashik Plant which took place with NETWs.
2) To know the Industrial and employee-employer relationship of BOSCH with special reference
to NETWs.
3) To access the possible causes and factors involved in scenario with reference to NETWs in
Bosch Ltd.

6
CHAPTER 3

COMPANY PROFILE

7
3.1 Company Profile

Name of Company: Bosch Ltd.

President & Managing Director: Saumitra Bhattacharya

Founded in year: 1886

Products: Fuel Injectors, Nozzles and DN Nozzles

Departments: Engineering Function, Quality Management methods, Value stream leaders-


Injectors & Nozzles, Head Human Resource, Head Information Technology, Head Control and
Finance.

Number of Employees: 1300 employees at Nashik plant

Companies Logo:

Website: https://www.bosch.in/

Location: Nashik

8
1.2 Company Description

Bosch Worldwide

The Bosch Group is an established provider of technology and services on a global scale. Around
402,600 colleagues are employed by it globally as per the data recorded till end of December
2021. During 2021, the company's sales totalled 78.7 billion euros. Industrial Technology, and
Energy and Building Consumer Goods, Technology Mobility Solutions make up its four
business segments. As a top IoT provider, Bosch provides cutting-edge options for connecting
transportation, Industry 4.0, and smart homes.

The vision of mobility that Bosch is pursuing is one that is thrilling, safe, and sustainable. In
order to provide linked, cross-domain solutions to its customers from a single source, it makes
use of its experience in sensor technology, software programming, and services as well as its
own IoT cloud. The strategic goal of the Bosch Group is to enable linked life through solutions
and products that either contain artificial intelligence (AI) or were created or produced with its
assistance. Bosch enhances quality of life by providing innovative and creative product and
services globally. In a nutshell, aligning to their tagline Bosch develops technology that are
Invented for Life. The Bosch Group is made up of Robert Bosch GmbH and approximately 440
subsidiary and regional companies spread across 60 countries. Bosch's global manufacturing,
engineering, and sales network, which includes sales and service partners, spans nearly every
country on the planet. The Bosch Group has been carbon neutral since the first quarter of 2020,
with over 400 locations worldwide. The company's innovative strength is the foundation for
future growth. Bosch employs approx. 76,000 associates in research and development at 128
locations worldwide, with over 38,000 of them being software engineers. The "Workshop for
Precision Mechanics and Electrical Engineering" was founded in Stuttgart in 1886 by Robert
Bosch (1861–1942). The special ownership structure of Robert Bosch GmbH ensures the Bosch
Group's entrepreneurial freedom, allowing the company to plan for the long term and make
significant upfront investments in its future security. Robert Bosch Stiftung GmbH, a charitable
foundation, owns 94% of the share capital of Robert Bosch GmbH. Robert Bosch GmbH and a
corporation owned by the Bosch family own the remaining shares. The majority of voting rights
are held by the industrial trust Robert Bosch Industrietreuh and KG. The trust performs the
functions of entrepreneurial ownership.

Business sectors Bosch involved in –

1. Industrial Technology
2. Mobility Solutions
3. Consumer Goods

9
4. Energy and Building Technology

1%
Shareholdings 5%

Robert Bosch GmbH


EBRO II GmbH/ Bosch
Family
Robert Bosch Shiftung
GmbH

94%

Pie Chart no. 1 – (Shareholdings of Bosch)

Bosch India -

Bosch is one of the top technology and service providers in India in the fields of consumer
goods, energy and building technology, industrial technology, and mobility solutions.
Furthermore, Bosch has the largest development centre outside of Germany for end-to-end
engineering and technology solutions in India. The Bosch Group operates in India through
twelve companies: Bosch Limited, Bosch Chassis Systems India Private Limited, Bosch Rexroth
(India) Private Limited, Robert Bosch Engineering and Business Solutions Private Limited,
Bosch Automotive Electronics India Private Limited, Bosch Electrical Drives India Private
Limited, BSH Home Appliances Private Limited, ETAS Automotive India Private Limited,
Robert Bosch Automotive India Private Limited, Robert Bosch Automotive India Private
Limited, Robert Bosch Automotive India Private Limited, Robert Bosch Automotive India
Private Limited, Robert Bosch Automotive India Private Limited, Robert Bosch as well as Mivin
Engineering Technologies Private Limited Bosch established its manufacturing operation in
India in 1951, and it has since expanded to include 18 manufacturing sites and seven
development and application centres.

Nashik Plant (NaP) –


Nashik Plant has been one of Bosch's most important establishments and the second
manufacturing plant in India for the past 50 years. Customers in Europe, the United States, and
South East Asia were pleased with the plant's consistent efforts to achieve excellence in quality
and delivery commitments. At the moment, exports account for approximately 25% of total plant
output. The plant is dedicated to maintaining total customer satisfaction in the areas of Quality,
Cost, and Delivery. In Nashik, Bosch Limited manufactures nozzles and injectors for both the
classic and Euro series.
The plant covers 400,000 square metres and has four manufacturing hangars. In addition to TS
16949, the plant is ISO 14000 certified, an internationally recognised certificate for
environmental protection. The plant is well-equipped with the latest in manufacturing,

10
cleanliness, and product performance testing. This is supported by readily available BOSCH
R&D.

3.3. Organisational Chart

11
Declaration:

The above details are given by the company itself and are true

The above details are obtained from the website

12
CHAPTER 4

RESEARCH METHODOLOGY

4.1 Rationality of the Study

The case study must help to fill a gap in the literature. Filling a gap in existing pool of literature
is one of the mandatory conditions of the study. In other words, we don't have to "start from
scratch" in the sense that the research's goals and objectives need to be entirely original, or at the
very least, it should offer fresh perspectives on current management and business challenges. As
a researcher we must include a clear explanation of the problem's essence as well as actual
benefits associated with the solution to the problem. My dissertation is titled "A Case Study on
Negotiation and Separation of New Entrant Temporary Workmen at BOSCH Nashik Plant." In
this instance, the practical ramifications of this study support the HR departments that are in the
same situation. The study will link the accomplishments of long-term professional objectives and
goals. The study's justification makes reference to the significance of the pattern developed in
separations and negotiations for industrial relations in the manufacturing sector. Contract or
temporary hiring has become a crucial component of hiring strategies in this age of technological
disruption and changing market conditions. This trend is expected to continue. As a result,

13
staffing firms, and temporary working patterns are playing a huge role. As of now Staffing and
Facilities management companies have grown but in the long term this practice has affected both
skilled and unskilled workers or labourers. Cheap production of products or service result in the
nation`s growth but will affect ethical practices and the worker/ labourer becomes weaker.

4.2 Problem Statement

(NETWs) New Entrant Temporary Workmen who were given a break by Bosch due to a sudden
drop in orders and the overall market due to new BS6 Emission norms, Covid Pandemic, EV
policy, and so on. In reaction to this, more than 600 NETWs received breaks.

..should we give details of customers….

NETWs filed a petition before the Industrial Court of Nashik. Bosch negotiated a two-party
settlement with a number of NETWs but is also contesting the legal battles that NETWs filed.
The case study will specifically highlight the behaviour, pattern, mindset and negotiation and
separation approach developed by Bosch at the Nashik Plant. Many people who are important
relative this case and involved in it, find hard to understand the flow of the case. My attempt is to
unfold the chronological details of events to make anyone requiring this knowledge and finding
it difficult, understand properly through my case study.

4.3 Significance of the Study

The research will contribute to the researcher's professional advancement and aligning to it this
research was carried out to create awareness about the practice developed by Bosch with regards
to Negotiation and separation of Temporary workmen. Through this case study reader can
understand the pattern of collective bargaining was followed partially but two-party Agreements
between Bosch and Temporary workmen were signed. The reader can see how negotiations can
be used wisely through partial collective bargaining for voluntary separation of NETWs through
two-party (company to individual) agreements.

This case which is registered under complaint ULP NO. 106 - Unfair Labour Practices from
M.R.T.U & P.U.L.P Act of Government of Maharashtra, as the NETWs were not allowed to
enter in the factory premises. As this case is comprehensive report which includes legal
proceedings, negotiations and separations, partial collective bargaining and almost all the
components of Industrial Relations. The study of a Multinational manufacturing unit in India
shall be a trend setter for all other unites operating in India as well as different multinationals
having their operations in India. Psychological aspect such as mouth publicity, influence of an
employee to the other can be studied by a reader from in this report.

4.4 Scope of the Study

14
In this research we have analysed the whole case study. The project is focused on the New
Entrant Temporary Workmen. (Temporary Employees at BOSCH) and BOSCH LTD. This is a
live case study which took place in October 2021 followed by ongoing Legal Proceedings. In the
Legal proceedings, Union of permanent workers at Bosch, NETW Kamgar Sangathana, and
other top managements are direct parties. In my case study, data analysis is not involved. The
case revolved around NETW employees, Bosch Ltd, Industrial court – Nashik and High court of
Bombay.

This study, can help organisations in similar situations. Organisations can alter their strategy and
implement customized strategies to avoid future IR issues and credit. Through this case study
researchers unfolds new dimensions in Industrial Relations. This case study has many
dimensions; hence report gives a bird eye view. The study caters and helps the reader,
educationalist, researcher, government agencies, companies who recruit employees on temporary
basis, Lawyers, Journalists, social worker activists and to the key persons and others associated
to understand the scenario, who find the case difficult to understand.

4.5. Type of Research –

1. Experimental research
2. Descriptive research
3. Exploratory research

1) Experimental Research -

A precise conclusion may be drawn and more accurate findings obtained via the use of
experimental research design, which is a means of designing research for a specified aim with
control. When attempting to determine if some factors have an impact on other variables, an
experimental design is acceptable. Researchers cannot modify the variables in an experimental
design; thus, they have no control over them.

2) Descriptive Research -

The goal of descriptive research is to precisely and methodically describe a population,


circumstance, or phenomena. It can respond to inquiries about what, where, when, and how, but
not why. A descriptive research strategy can study one or more variables using a wide range of
research techniques. Contrary to exploratory studies, the researcher just examines and analyses
the variables in this type of study. When the goal of the research is to discover traits, frequencies,
trends, and classifications, descriptive research is the best option. When the subject or issue is
still mostly unknown, it is helpful. Understanding how, when, and where something occurs is
necessary before you can investigate why it occurs. Large amounts of data can be collected
through survey research and then examined for frequencies, averages, and patterns. Case studies
frequently concentrate on peculiar or interesting situations that test presumptions, add
complexity, or provide fresh information about a study subject rather than attempting to convey
generalizable facts.

15
3) Exploratory research

Exploratory research is study done to solve an issue that is not well defined. It frequently occurs
before we have enough information to theoretically distinguish between explanatory
relationships. When a problem is still in its early stages and it is challenging to collect data for
analysis, it might be beneficial.

This descriptive research incorporates crucial events and detailed descriptions to evaluate the
perspective of negotiations and separations. This research examines the chronology of events,
actions, and reactions, the use of voluntary separations as a method of grievance relief and the
negotiating process via this research. With the help of this study, the reasons behind the conflict
are clearly interpreted and described in depth. It gives a thorough knowledge of the case. The
relevant legal areas, key case facts, and recommendations are all mentioned. Descriptive study
approach is used since the data being evaluated is secondary and includes judgement copies from
industrial court cases, two-party settlements, and legal proceedings.

4.6 Types of Data

Qualitative data –

It is possible to notice and document qualitative data. The nature of this type of data is not
numerical. Focus groups, one-on-one interviews, observations, and other similar techniques are
used to gather this kind of data. In statistics, categorical data, or information that can be
categorised based on the characteristics and traits of an object or phenomena comes under
qualitative nature of data used in this research is qualitative. This data is been derived through
several two-party settlements, documents and judgements. This case study is an event (conflict)
that occurred in October 2021 at Bosch Nashik Plant.

Quantitative data –

Data that can be measured or quantified in numerical terms is referred to as quantitative data.
Data collected and structured observations are the two basic categories of quantitative data.
Examples of quantifiable data are length in inches, lifespan in years, or weight in kilograms.
Data that is descriptive but not quantitatively stated is considered qualitative data.

4.7 Source of Data

Primary Data –

In specifically for research, primary data is information that is gathered exclusively for the
first time via personal experiences or proof. It can also be referred to as raw information or
first-hand knowledge. The method of gathering the data is expensive because it requires the
use of human resources and money to have an agency or outside organisation conduct the
study. Direct supervision and management of the data collection method is done by the
investigator. The majority of the information is gathered by means of observations, physical
examinations, surveys, personal interviews, telephone interviews, case studies, focus groups,
etc.

16
Secondary data –

Secondary data is information that has already been gathered and documented from some
researchers for purposes other than the one being investigated at the moment. Data gathered
from a variety of sources, including government publications, censuses, organisational
internal records, books, journal articles, websites, and reports, among others, is available.

This form of data collection is economical, accessible, and time and money-saving. One
drawback, though, is that the material gathered was done so for another reason and might not
be accurate or appropriate for the current research.

In this case study the which is been used is two party settlements, Judgement and interim
order copy and the data is either discussed or observed.

Literature Review –

According to B.R. Patil, all industrial civilizations have the fundamental trait of widespread
wage employment. Workers/employees and employers/management are two separate categories
of people that are looking for wage employment, respectively. Employer-employee relations,
labour-management interactions, labour relations, or industrial relations are the popular names
for the organised relationships between these two groups. With the exception of the first, these
notions indicate that the interactions are collective, at least in the case of the employees. In
regards to all problems that concern its members, the labour union negotiates with employers and
management. Thus, there is organisation to the relationships between the two groups.

17
According to Debashish Bhattacharjee, it is a revolutionarily domain adapted in the recent
years. The link between shifting industrialization tactics and industrial relations institutions and
practises in India is far more delicate than is commonly assumed in comparative industrial
relations narratives, particularly when precise organic political economy factors are taken into
account. This essay explores the development of Indian labour relations within a structural and
historical perspective Industrial relations have evolved in India progressively and constructively
and is not discontinuous.

According to Dr, J.K Gulati, in their research paper, has highlighted challenges and issues with
reference to manufacturing to sector the core Human Resource who takes care prominently of
Interpretation, Implementation, Compliance, etc. When a unit which is unionized faces major
challenges in grievance, handling, disputes, employee-employer relationship and industrial
relations.

In the Book, Legal Aspects of Employee Separation in Indian PSUs Dr. M.K. Ravi discusses
in depth various types of Employee Separation in different states, their legal aspects involved.
Voluntary and Involuntary separation patterns, current status of pending labour and industrial
law cases, etc

According to the Judgement from Supreme court, by Hon`ble Justice R.S. Pathak, a break
in service is a pause in an employee's service career and typically results from unapproved
absences that fall within the parameters of the service regulations. A break in service has major
repercussions, thus an order to that effect cannot be made without providing him a fair chance to
object. Administrative authorities may grant a pardon based on the specifics of each case. In
Sushil Kumar Yadav v. Union of India, (1986) 3 SCC 325, the Supreme Court ordered that the
petitioner's service break be tolerated after taking into account his subsequent behaviour and
performance, which were highly praised by his superiors. This decision relieved the petitioner of
the disadvantage he had experienced due to the terms of his contract of fresh appointment The
Supreme Court excused the gap in service in Ram Chandra Yadav v. State of Bihar (1988) Supp
SCC 779, with the exception of back pay. Each instance must thus be viewed in the context of
the whole situation in order for the power of condonation to be used equitably. If the employee
has no control over the break, the authority must take it into account.

According to Madras High court. In Workers of Buckingham and Carnatic Company vs.
Commissioner of Labour and Chief Conciliation Officer, a Division Bench of this Court ruled
the following, in accordance with the aforementioned Supreme Court decision: A conciliation is
essentially a negotiating process between the parties. A conciliator's role is to bring management
and employees together so that they may address the issues at hand and come up with a solution

18
that works for everyone. The Conciliation Officer is an autonomous organisation established
under the Industrial Disputes Act with the goal of promoting industrial peace by making state
resources accessible throughout the collective bargaining process.

CHAPTER 5

DATA ANALYSIS AND INTERPRETATION

19
Background of the Case Study

BOSCH LTD -

The NaP (Nashik plant) is one of Bosch Limited's important and strategic second plant
established in India. Mr Rashmi Ranjan Bhuyan (Plant Commercial Head) and Mr A.
Anantraman (Plant Technical head) lead the plant management team. White collar and blue-
collar associates run the whole manufacturing setup. The company produces Nozzles and diesel
Fuel injectors, etc. To name few, Honda, Ashok Leyland, Mahindra, Ford, Swaraj, Tata, Eicher,
SML ISUZU, Piaggio, Bharat Benz, Hyundai, Force are their customers. Nashik plant also has
demanding markets in Europe and United states. Independent union of blue-collar associates of
Bosch is not influenced by any external forces. It is registered and recognized union under
MRTU & PULP Act and operational since last more than 4 decades. Many settlements have been
signed till now. To summarize, the Bosch Employees Union (BEU) and Bosch Ltd have
maintained cordial relations over the years. Bosch Limited, as a multinational company, adheres
to international standards and the law of land for maintaining healthy employee-employer
relationships with strong policies. As both management and the union are aware of their
responsibilities and limitations as a result, they complement each other for development.
The (NETWs) New Entrant Temporary Workmen -
The growth of automobile manufacturing sector rises on the onset of 21st century. Bosch as the
manufacturer of Fuel Injectors, Nozzles had huge orders for the automobile components. The
sporadic rise of the new product in NaP resulted the plant to hire temporary employees as they
are flexible for work, cost effective and have limited compliance. They were recruited to to meet
the sporadic rise in the customer demand as and when needed and were given break if there is no
work available to them.reduce the burden of the existing permanent workforce. At first through
the conciliation settlement signed between Bosch Employees Union & Bosch Ltd., Bosch hired
OJTs – On Job Trainees as trainees to provide them practical training of manufacturing process.
On completion of their training period, OJTs raised a dispute to take them as a temporary
workman and through a compromise settlement in March, 2018 it was decided that the On Job
Trainees to be converted into New Entrant Temporary Workmen (NETWs). These NETWs were
called for work according to the production and the demand of the market and wages were paid
or the days they worked.
The Case -
External factors began to have a significant impact on Bosch Limited from 2019. New emission
rules BS6, cost competitiveness, and the Maharashtra government's Electric Vehicle policy

20
and disruption of new technologies had a direct impact the unique selling prepositions and
production of diesel nozzle and life cycle of the product. The Covid 19 pandemic wreaked havoc
on all types of businesses. The product life cycle was disturbed, which caused irregularities in
manufacturing and sales. The Covid pandemic brought everything to a halt as the virus infected
everyone with whom it came into contact. Covid 19 Government guidelines caused businesses
and manufacturing units to close, resulting in an overall crunch in the business ecosystem.
Maruti, having more than 50% of share in the order had stopped manufacturing diesel vehicles.
Before October 2021 they were given business updates and were informed about market
conditions, etc, as a result of poor, fluctuating and unpredictable business situation, from October
2021 to 695 NETWs were given break as per customary practice. The first event which triggered
the whole case was when prohibited for entry in the factory premises due to break in service,
NETWs tried to enter in the premises of the company demanding work. 484 NETWs filed a case
under complaint no.106 – ULP (Unfair Labour Practices) of M.R.T.U and P.U.L.P act for not
providing work and allowing to enter in the factory premises. The Industrial Court of Nashik
passed an order directing BOSCH to pay full wages to NETWs with effect from the day of order
passed by Industrial Court, Nashik, i.e., 1 st of March 2022. Bosch filed the petition against the
order passed by Industrial Court, Nashik in the High court of Bombay. Stay was granted stating,
final relief can`t be given at interim stage and directed to maintain status quo and an oral order
was passed to maintain status quo in the case, where the written order is still awaited.
The Negotiations and Separations -
Aligning to the Negotiations with the Industrial dispute resolution machinery, in this case, during legal
proceedings, few NETWs approached BOSCH and showed interest for negotiations. These conciliations
become fruitful as a result NETWs accepted the settlement. The conditions for NETWs included,
voluntary resignation of their employment whereas for those who were involved in the case, they were
asked to remove their names from the legal proceedings, which in a way led neutralized Industrial
dispute and conversion to voluntary resignation took place. The two-party settlements took place twice.
In the first negotiated settlement they were offered Rs 7 Lakhs including voluntary resignations and
baking out from the case if involved. Later, the Separated-NETW has again approached the Company
with a request that they may be paid some ex-gratia amount that would help them in rehabilitation and
self-employment. The Company accepted the request on humanitarian ground and they were offered an
ex-gratia amount of Rs 3 lakhs, resulting to benefit of Rs.10 lakhs by signing both the agreements. In
total NETWs whom were given breaks in their service were 695. Out of which 211 NETWs remained
neutral and 484 NETWs filled a petition in Industrial court Nashik.

Grievance Redressal Process followed by Bosch in this case study.

Dispute

21 Suit Filing at Industrial


Court Nashik by
remaining NETWs
Figure no. 2 Grievance Redressal by Bosch

Timeline

Bosch gave break in


service to 695 NETWs October, 2021

October, 2021
As Bosch did not had
work to allot, NETWs
were not allowed to enter
in the premises of Bosch
November, 2021

NETWs filed a petition


in Industrial Court, 3rd January, 2022
Nashik against Bosch
Parallel to this, Bosch
gave emphasized on
harmonious relationship
between NETWs and Nashik Industrial court
Bosch passed an order directing
1st March 2022
Bosch to pay full wages
Thus by offering two (as per G-1N category) to the
party settlements of complainants from the date
rupees 7 lakhs and an Ex of order passed.
Gratia amount of rupees 3
lakhs for rehabilitation
18th August 2022
Facts of the case -
Bosch filed
1) The position NETW was evolved froma apetition in in 2018 where OJTs were converted
settlement
Highand
into NETWs. Both employee Court of Bombay
employees were satisfied with the employment and
against the order passed by
Industrial court, Nashik
22
payment terms mentioned in the settlement. As per the settlement, conversion of OJTs to
NETWs scheme was stretched to one year. According to the settlement, they were aware
of the conditions of employment. (Certified standing orders, in Clause 3 (2)(c) and the
settlement terms as a temporary workman they are not entitled to seek the permanency as
well as the wages for the period when they are having no work.)
2) As they were prohibited to enter in the factory gate as the company didn`t had any work
to allot them they filled a case under Unfair Labour Practices (ULP) of M.R.T.U and
P.U.L.P Act.
3) Under Sec. 36 of the Industrial Dispute Act, 1947 and Sec. 20(2)(b) of the Industrial
Dispute Act,1971, Union of BOSCH was made the party. As the Union of BOSCH are
only safeguarding the interests of permanent workers, they requested to remove their
name from the case.
4) In total, 695 NETWs (Temporary Workman) were given break in their service. 484
temporary workmen (NETWs) filed a petition in Industrial Court Nashik and 211
(NETWs) temporary workmen remained neutral, and few of them took new jobs at
different places.
5) Till now 101 (NETWs) temporary workmen, few from those who remained neutral and
some involved in the legal proceedings accepted the settlements.
6) The Industrial Court, Nashik directed to BOSCH in the past order to pay full wages (as
per G-1N category) to the complainants from the date of the order passed by the
Industrial Court Nashik, on report of their duty, irrespective of the fact that their cards are
blocked on the redlight activation signal.
7) An order passed by Industrial Court Nashik is stayed by High court of Bombay and
passed an order stating final relief can`t be given at interim stage and directed to maintain
status quo.

Legal sections involved.


1) Section.30 (2) of the MRTU & PULP Act,1971
2) Order 2, Rule 2 of the Code of Civil Procedure (In short CPC)
3) Order 6, Rule16 of CPC
4) Sec. 18 (3) of the Industrial Disputes Act, 1947
5) Industrial Court Regulation no. 100.
6) Sec. 20 (2)(b) of the Industrial Disputes Act, 1971
7) Sec. 36 of the Industrial Disputes Act, 1947 and Sec. 20(2)(b) of the Industrial Disputes
Act,1971.

Success Rate of the Negotiations and Separations –


Composition of NETWs after break in service:

23
Total NETWs given Break by Bosch Nap – 695
NETWs who filed case against Bosch in the Industrial Court – 484
NETWs who remained neutral – 211

Composition of 695 NETWS in 2021


Netws who remained ne-
tural - 211
30%

NETWs who filed case- 484


70%

Pie Chart no. 2

Current composition of NETWs after break in service:


Total News given Break by Bosch Nap – 695
NETWs who signed the two-party settlements – 101
News have remained neutral – 45

Current Composition of 695 NETWS

Total NETWs who signed


aggrement - 101
15%

Netws who remained ne-


tural - 211 NETWs who filed case- 484
19% 66%

Pie Chart no. 3


Composition of NETWs who have opted settlements.
Total Two-party settlements - 101
7 Lakhs Two-Party settlements - 68
Two-Party settlements of 7 and 3 Lakhs respectively – 33

24
Composotion of NETWs who signed the both aggrements

69%
31%

Only Two-party settlements Rs 7 lakhs


Both Two-party settlements Rs. 3 lakhs and Rs. 7 lakhs signed

Pie Chart no. 4


Discussion –
Pie chart no. 2 - shows the composition of NETWs whom they were given break in the service.
It helps the reader to process the data and visualize in a graphical manner. 211 NETWs preferred
to remain neutral as few switched their jobs and some didn`t want any legal cases in their
records.
Pie chart no. 3 - From the pie chart no. 3 out of 695 NETWs, 70 % of the NETWs filed the
complaint in Industrial Court, Nashik whereas 30 % remained neutral. Pie chart no. 3 denotes the
current status of the case and the developments regarding the settlements. This graph helps the
reader understand that the percentage of NETWs involved in the case and those who were
neutral have signed the settlements resulting the increase in the third part of pie chart, i.e.,
Settlements. This strategy of Bosch is to divide with monetary factors. Negotiations with neutral
NETWs helped Bosch to create impression. Subsequently mouth publicity of the separation
scheme helped Bosch to influence the NETWs involved case.
Pie chart no. 4 - In the Pie chart no. 4, shows the actual status of the Negotiations and
separations of NETWs in Bosch Ltd. Out of those 101 NETWs, 31 % NETWs have signed both
the settlements and 69% NETWs are yet to sign the second settlements of Rs. 3 Lakhs.

From all the pie charts and the Judicial process followed by Bosch Ltd. Nashik, it can be said as,
Bosch has changed its attitude towards NETWs and taken their separation process NETWs
leniently. The emphasize is given on maintenance of harmonious relations between NETWs and
Bosch.
The compensations offered and processes followed is systematic and transparent which
ultimately resulting in cordial industrial relations.

25
CHAPTER 6

SUGGESTION AND RECOMMENDATION

Suggestion and Recommendation

26
1) As settlements are done at fast pace, it can attract the NETWs who are neutral and those
who are involved in the case. Due to this, through word of mouth it can stimulate a
greater number of NETWs and they would sign the two-party settlements as the process
is smooth and amount offered is attractive.
2) Given that the Bosch Union will soon have elections, it is crucial to understand the stance
of the newly elected members.
3) As Bosch is involved in various settlements with their Union and with their temporary
employees, they should improve harmonious and cordial relationship practices with their
employees.
4) Strong as well as strict contract can be signed if a vendor is identified from whom can
relatively trained manpower having knowledge and skills is been outsourced.
5) If Grievance redressal mechanism is improved, there are high chances to reduce further
disputes in the company.
6) Such events create serious implications affecting the brand image, goodwill and trust
among employees and vendors hence rather than spending huge monetary amount on
Settlements and Legal Proceedings, there are huge scopes of improvements in Industrial
relations and employee-employer relationships.

CHAPTER 7

CONCLUSION
27
Conclusion –
In the field of industrial/employee relations, negotiations and separation are the two most popular
topics. It requires patience and is very critical situation to the organization. It's a complicated
aspect of the employee-employer relationship. It is a time-consuming and challenging process.
Collective bargaining causes negotiations, which are followed by agreements or legislation.
Temporary or contract employment trends results in decrease in economic weakness conditions
and increase in economic recovery in the economy. Pan India contracts or hiring of Temporary
workers helped BOSCH become more flexible to manage workforce, cost effective and business
leader in the sector. Bosch relied on these practises to keep costs under control when market
demand is uncertain. As a result, hiring temporary workers contributed Bosch to lower overall
staffing and compliance costs. When faced with extra work orders due to increased demand,
presence of temporary workers helped Bosch to control and manage productivity of permanent
employees. Aside from that, companies benefit from flexible working hours, insurance, fixed
term contracts or for specific projects when hiring temporary workers. Negotiations, Separations,
break-in service and collective bargaining are done at every point and across sectors now a days.
In this scenario, the NETWs were previously given breaks. During the legal proceedings, Bosch
agreed to the two-party individual settlements twice of Rs. 10 lakhs. These settlements were
made twice. The pattern developed was converting almost involuntary separation into voluntary
separation through settlements. The worth of the settlements was comparatively more than salary
of NETWs. Hence the success rate of the case can be achieved fully. Apart from this, the case
can be having a value as it unique. This practice shall be practiced knowingly or unknowingly in
the region.

28
CHAPTER NO. 8

REFERENCE

Reference

1. Bosch Ltd Website and Internal company documents.


2. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2177766 - B.R. Patil Literature
review
3. https://www.researchgate.net/publication/
227871061_The_Evolution_of_Indian_Industrial_Relations_A_Comparative_Perspective
- Debashish Bhattacharjee

29
4. http://www.pbr.co.in/2018/2018_month/Feb/23.pdf - Dr. J.K. Gulati
5. https://books.google.co.in/books?
hl=en&lr=&id=cPJIEAAAQBAJ&oi=fnd&pg=PR6&dq=separation+HR+manufacturing
+research+paper+india&ots=XW3c_7JA6S&sig=1kS3wOevyJjGpiP_iWveQU_I240#v=
onepage&q&f=false – Dr. M.K. Ravi
6. https://www.business-standard.com/article/jobs/companies-see-slowdown-in-growth-of-
temporary-contract-and-casual-jobs-122101901117_1.html - Business Standard
7. https://www.casemine.com/judgement/in/5609ac25e4b014971140e29a#4 – Supreme
Court Judgement.
8. https://indiankanoon.org/doc/1719485/ - Madras High court.
9. Judgement copies of Suvarna Borale v/s Bosch at Industrial Court, Nashik.

30

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