GROUP 2

INDUSTRIAL RELATIONS

An Analysis of
Manufacturing
Sector
LET'S BEGIN ----->
 MANUFACTURING SECTOR
Overview
Manufacturing has emerged as one of the high growth
sectors in India. Prime Minister of India, Mr Narendra
Modi, launched the ‘Make in India’ program to place
India on the world map as a manufacturing hub and give
global recognition to the Indian economy. Government
aims to create 100 million new jobs in the sector by
2022.
With the help of Make in India drive, India is on a path of
becoming the hub for hi-tech manufacturing as global giants
such as GE, Siemens, HTC, Toshiba, and Boeing have either
set up or are in process of setting up manufacturing plants in
India, attracted by India's market of more than a billion
consumers and an increasing purchasing power.
 MANUFACTURING SECTOR

Industry Relations
Labour Organisations Employer's Organisations

• Sound industrial relations remain a • Represent the collective voices of private

common and formidable challenge and government-owned enterprises
• They promote and protect the interest of workers in both the formal and informal economy • They interact with the central and state
• The unions in India face major challenges governments and workers’ organizations
• BMS, INTUC, AITUC, HMS, AIUTUC, to protect and promote the interests of
SEWA are some of the labour employers
organisations • AIOE, SCOPE, EFI are some of the
employer's Union in India
MANUFACTURING SECTOR

FACTORS
AFFECTING THE IR
ENVIRONMENT
Institutional Factors Economic Factors
Institutional factors include items like Economic factors include economic
state policy, labour laws, voluntary codes, organisations, type of ownership, composition of
collective bargaining agreements, labour the workforce, the source of labour supply,
unions, employers’ organisations / labour market relative status, disparity of wages
federations etc. between groups, etc.
MANUFACTURING SECTOR
FACTORS
AFFECTING THE IR
ENVIRONMENT
Political Factors
Political factors include items like
Political institutions, a system of
government, political philosophy, the
attitude of the government, ruling elite,
and opposition towards labor problems.
Global Factors
Global factors include International relations,
global conflicts, dominant economic-political
ideologies, global cultural milieu, economic and
trading policies of power blocks, international
trade agreements and relations, international
labor agreements (role of ILO), etc
MANUFACTURING SECTOR • R&D activities.
• Rate of technological change.
Technological Factors • Work methods.
• Type of technologies used.
• Ability to cope with new trends.
• These have a direct influence on
employment status, wage level, collective
bargaining process in an organization.

• Style of management prevailing in the

Enterprise Related enterprise.
Factors • Its philosophy and value system
organizational climate.
• Organizational health.
• Extent of competition.
• Adaptability to change.
• The various human resources management
policies.
MANUFACTURING SECTOR • Social Caste: Disparity on the basis of caste

and creed

Social Factors • Social values and norms: Societal culture

impacts the business environment

• Social status (High or Low): Preference on the

basis of status

• Gender: Discrimination faced by women

• Age: Opportunities on the basis of age

• Owner's Attitude
Pshychological Factors • Perception of workforce
• Worker's attitude towards their work &
productivity
• Dissatisfaction & boredom resulting from
man-machine interface
MANUFACTURING SECTOR
• Business Policies
Business Factors • Labor laws
• Business Federations
• Bargaining Agreements
• Trade Dealerships

• obeying the company's rules

• effective communication
Ethical and cultural
• taking responsibility
Factors
• accountability
• professionalism
• trust and mutual respect for your
colleagues at work.
Latest Attack on iphone
Factory
Incidents of
Industrial
Unrest
01 What Happened
Violence broke out at the
Taiwanese Wistron Corporation's
plant near Kolar where iPhones and
other IT products are manufactured
as a large number of workers went
on a rampage over issues related to
payment of salary

What caused it
02 - No remuneration .
- Violates apple's supplier rules, which ask
to pay workers on time, offer overtime pay.

- Provide at least the local minimum wage and other benefits required by law.
03 How it could have been avoided
By following proper labor laws and adhering to
the regulations by Apple company w.r.t to the
workers. Giving proper facilities to the workers is
important for a manufacturing unit to work
seamlessly. They should have approached the
Labour Commissioner or the Deputy
Commissioner of the district instead of taking
law into the hands.

04 Strategy for future

Use the New Labor laws to their advantage and treat the
workers of the factory with consideration.
To have better Industrial Relations and to gain a foot in
manufacturing a company needs to set up some basic
rules which creates a healthy work culture.
Union
Vs
Non-
Union

De-Unionization Consequences Future Strategy

Strategy for de- What are the how the manufacturing
unionisation/ not allowing consequences of De- industry can improve it’s
unions to form Unionization Industrial relations
Strategies for deunionization
Undermining the unions: Around 1,400 workers at Kellogg Co.’s U.S.
cereal plants walked off the job – threatening production of its iconic
cereals – after negotiations with the company over pay and benefits
hit a deadlock.
Kellogg Company publicly addressed the ongoing strike at its U.S.
cereal plants Tuesday in a video, claiming that its contract proposals
have been "grossly misrepresented."
Kellog dismissed claims from Anthony Shelton, president of BCTGM,
that Kelloggs is asking employees to give up health care, retirement
benefits and holiday and vacation pay.
It also dismissed Shelton's claims that the union is forced to work
"seven days a week with significant amounts of overtime" and that
the company will move jobs to Mexico if they don't agree to our
proposals.
Strategies for deunionization
Systematic training of Manager: In May 2011, exactly one decade after
the first Apple store opened, Cory Moll launched the Apple Retail
Workers Union in San Francisco, citing compensation, pay, benefits
and hiring processes as motivations. In November, Apple launched a
private training for managers on how to "manage worker unions".

#Appletoo: Apple employees launched a website called AppleToo on

August 23, 2021. The project was led by program manager Janneke
Parrish and security engineer Cher Scarlett, as well as other
anonymous employees. On September 3, 2021, the group published
an open letter to Tim Cook and the rest of the executive team, to
make their requests. In October 2021, Parrish was fired from Apple
Consequences of Deunionisation

• Higher Dispersion in salary

• Division amongst workforce
• Difference in productivity
• Lack of Transparency
• Low Morale
• Low Bargaining power
 Looking at the
De-Unionization is a bold move for Industries,
especially in a blue-collar environment. If not
handed and executed properly, it might backfire and

Future create a clash, resulting in a huge loss.

Focus on Chief Happiness Officer Encouraging and striving to achieve Taking the workers out on an
Wellness an enjoyable informal getaway
environment for the workers from time to time

Grievance Having a grievance redressal Providing a safe environment to Quick and Appropriate
Redressal section in the HR department voice out opinions without being response to enhance the trust
silenced in the system

Rewards & • Rewarding employees • Performance based • Transparent systems in

Recognition, for their long-term Incentives for place, sense of fairness
Benefits & association with the company motivation; Employee and genuine feedback
Transparency benefits - Rent and long- term career
allowance, schooling, planning
healthcare, insurance
Strategies for the Future improvement of Industrial Relations
Examples of companies with good
strategies
MAHINDRA & MAHINDRA
AUTOMOTIVE & FARM EQUIPMENT
The HOPE (Helping Our People during
Emergencies) project, conceptualised by
Mahindra Logistics, one of India’s largest 3PL
solutions providers, is the latest in the Group’s
efforts to reach out to the underprivileged.
FAURECIA CLEAN MOBILITY
• Faurecia put the employees in all sites on
temporary unemployment, and paid 20%
salary during non-working days through
French government's aid.
• It restarted production, with an average
capacity utilization rate of around 70%
VOLVO
Alicja Zarzycka, Country Manager Volvo Group
Poland - on Mental health
“It’s an ecosystem, Happy employees, happy
work environment, happy clients, happy family,
happy company in general. We are all
connected.”
Thank
You!
• Akshit Puri (17030121106) • Bhavna Keswani (1703012090)
• Aditya Kaushik (17030121087) • Harishankar Kannan (17030121085)
• Amey Kulkarni (17030121092) • Himanshu Lunia (17030121094)
• Aakash Choudhary (17030121072) • Vidhi Ranka (17030121108)
• Dev Sheth (17030121117) • Prajwal Maniyar (17030121097)
• Shreya Sharma (17030121116) • Shubham Sinha (17030121118)
• S Hrishikesh (17030121111)
• Karan Patadia (17030121101)
• Sumeet Sahni (17030121113)