Assignment on Industrial Relations and Labor Laws

“An overview of Industrial Laws and Current Cases of Industrial Unrest in India”

Subject: Industrial Relations and Labor Laws Assignment Submitted to: Date of Submission: Group Members:

Need and Objectives of the Industrial Relations and Labor Laws: 1. .employer-employer and employeeemployee is termed as the industrial relations. Industrial Relations are not only pertaining to formal relations . discard mis-communication and seek regulations which delivers mechanism to ensure that needs of all the parties are met. the organizational hierarchy but also the informal orientations of the parties of the industry amongst one another. 4. strengthen and regulate wherever necessary.To have a correct flow of communication rather a effective communication network between all parties developing and coming under industrial relations a framework has to be there which regulate all communications . develop and preserve such an environment it is necessary to understand industrial relations and legal aspects of such relations which is dealt by labor laws. communicate . As people are the basic elements of any industry and the whole framework is designed around them so it becomes a necessary objective that every considerations being made are in correspondence with the humanistic approach. According to Dale Yorder “IR is the whole field of relationship that exists because of the necessary collaboration of men and women in the employment process of an industry “. Secure Industrial Peace and Harmony . The term labor laws are integrated concepts of guidelines that harness the framework of these industrial relations by ensuring the legal dimensions and measures undertaken to maintain . 2.Industrial Relations and Labor Laws – The relations between the employer-employee . trade and a business pertains legal obligations so in order to see that the legal and lawful aspects are being followed and covered a set of guidelines are necessary to regulate all parties as well as the procedures of business or industry. Base to Communicate and Discuss . People are the key Participants . Need for Legal Framework – Since each and every activity carried in any industry .It deals with the humanistic management approach towards people. corporate . Basically it is the outcome of the day to day interaction as well as the activities among the various stakeholders associated with and within the industry.The best outcomes are only achieved when objectives are met by working together in a peaceful and harmonious environment. So . 3. in order to create .

Pre Liberalization Scenario in Industry  Between 1950 & 1970 labor disputes nearly tripled in India.: productivity.  Workers are not active entities of management  Payment of Gratuity Act 1972. More than 30 amendments till date.employer-employer and employee-employee community does not only hampers smooth running but also deteriorates the future prospects and outcomes. permanent workers.     considerations so grudge against management. Industries (Regulation & Development) Act of 1951. Involvement of coercive entities to crush labor . Pre-Independence Era  Employer’s and Workman’s act 1860.  Payment Of Bonus Act 1965. Unhealthy Relationship between workers and Management. 249 Disputes in first 5 months of 2010 and 101 disputes in 2012 over the same period.5.e.  Trade Disputes Act 1929. i. 1975-77. 6. No Regulation for IR in India. Political Interventions in Union leading to more damaging outcomes. 2004-11 decline in union disputes but  Sudden reduction in labor disputes was observed during intensity /Impact increased. Post Independence     Industrial Disputes Act 1947. Minimum wages act 1948.  Migrant and Contract labor are more in number the  Total no of strikes & Lockouts was 1825 . Just scientific way of management.  Trade Union Act 1926. The Last Decade  InBetween 1970 experience spike in labor unions & disputes. So the industrial relations and labor laws provide effective grievance redressal machinery to ensure industrial harmony and amity. No focus on working conditions or working regulations. Amelioration of the conditions work and regulation in the industry-IR and Labor laws provide guidelines which regulate the work environment and the basics which are to be provided to a workmen / employee from the side of employer as well as the minimum standards /conditions which are to be met for every dispute to raised by any of the parties associated in industrial relations Growth of the Industrial Relations and Labor Laws: Industry and Relations • • • • Industrial Revolution Starts-Early 1700s . Grievance Handling Machinery – Grievances within the employeremployee .

Hero Honda or Maruti Gurgaon plant and voiced anger about the fact that they earn only half as much. In some cases. rued a worker.29 lakh suggestions last fiscal compared to about 129.Workers in the Manesar plant are younger than in the Gurgaon plant. he added.000 and 10. car maker Maruti Suzuki was able to save about Rs 160 crore in 2010-11 by implementing suggestions given by workers at its Manesar plant. If this target is not met even by a low margin.000 Rs to 4.200 Rs.” (Times of India. This is in sharp contrast to the company’s past when strike by its workers crippled productions for three months from November 2000 to January 2001. interns from industrial training institutes are called for advanced training. temporary workers are paid around 6. the company celebrated the milestone by gifting a gold coin to each of over 8.500 Rs and apprentices around 3. We encourage our people to give their inputs that could increase efficiency and save money.600 employees.000 Rs. “I am supposed to produce one unit of work in 40 seconds. Reasons what Triggered Formation of separate Union: • Harsh working conditions. their contracts more casual. .000 and 17. Apprentices are made to work in three shifts at a stretch. I have to work two to three hours extra”. and their wages a much lower. Maruti Suzuki had hoped to ‘de-risk’ their production by relocating the new production lines to a fair distance from the old ‘troubled’ plant in Gurgaon. trainees get between 8. Everything seemed to be going well for Maruti. managing executive officer (administration) of Maruti Suzuki. Maruti Suzuki India Limited . 8th of April 2011). “Workers inputs help Maruti save Rs 160 crore at its Manesar plant” At a time when frequent labor unrests are plaguing the Indian auto industry.The Recent Case . partly because the state still holds shares in Maruti Suzuki .000 suggestions in the previous fiscal. Backed by a same union MUKU(Maruti Suzuki Kamgar Union).An Overview of Articles. When the carmakers sales crossed one million in 2009-10. Manesar–An overview of the case Maruti Suzuki opens Manesar Plant in 2006-07.000 Rs. reaching down to slum production and small work-shops. The company had received about 2. The Workforce at Manesar . but made to do the job of a regular worker. Permanent workers at Manesar compared their wages to the wages of permanent workers at nearby Honda. a dominating company in the region and closely related to the political machinery because of the industrial dependency of hundreds of smaller production units. Since then the company has had a stable relationship with its workers. Permanent workers are paid between 13. said S Y Siddiqui.In 2010 the company paid around 13 billion Rs tax to the regional state . Workers do not get proper healthcare even though their contracts mention that the company will provide compensation for ill-health. with a fresh workforce.

I am sure they can show their strength there. 2011. If a worker is few minutes late. If a worker takes one day leave. “As I was told by a young worker how the workers tied a white hanky around their faces so that the trainee/apprentice workers. secretary. workers were able to retrieve some of the blank signed papers from the management. the rest of the wage are ‘incentives’. Report by a economic times). casual and contract workers could not be distinguished by the management . as well as apprentices.the police was still inside. we were forced to go on flash tool down strike from the afternoon of June 4. • Company had already prepared legal documents for a possible expulsion of workers from the premises demanding the separate union. (Business Standard. through struggle. • Workers in Manesar did not feel ‘represented’ by MUKU.cgpi. 6th of June 2011) At the same time management undertook steps to threaten and isolate the striking workers within the factory premises.500 Rs to 2. casual. The news of the suppression procedures spread like fire.000 union members gathered in front of the gates.” (4th of June.000 Rs. then his half day salary is All the workers of the company joint the struggle – permanent. he almost looses all the incentives. 2011. CITU. and increasingly bouncers were also there. If a worker takes two day leave.000 to 2. UTUC formed a ‘joint action committee’ to ‘support’ the strike. Thus the MSIL (Maruti Suzuki India Limited ) Manesar sacked those 11 workers and even made few workers sign on blank papers in order to discard their demands. By the afternoon. it became the main broker and spokesperson of the strike. • Intermittent breaks pre-defined even avoiding basic needs of workers. The inside-outside workers correspondence doesn’t seemed to be going towards anything more substantial than food/mobile battery exchange.000 Rs as salary cut in various forms of incentives and allowances. UTUC formed a ‘joint action committee’ to ‘support’ the strike.• Dominating nature of supervisors. they did not feel that their grievances were addressed by the union. Although this committee dominated by AITUC had no formal link with neither the Maruti workers nor the new Maruti union in formation. • Cut in various forms of incentives and allowances.” (Interview with Maruti Suzuki union leader. HMS. In such circumstances.” Maruti Suzuki chairman said. it’s our prime responsibility to support any cause that . The Chain of Events On 3rd of June. HMS. www. “As we are a major union in this area. around 1. On the morning of June 4. it became clear that the management was using all kind of tricks to break their unity. Often quoted ‘representatives’ were union leaders from Honda HMSI. INTUC. Hero Honda Dharuhera and Rico Auto. AITUC. CITU. Sachdeva. INTUC. eleven leaders of the workers went to Chandigarh to meet the Labour Department to complete the formalities regarding registration of the union but the laboe department discarded their demands and even communicated their deed to Maruti. he loses about 1. “The Maruti union will hold elections next month. On the 8th of June the main unions AITUC. On the 9th of June this action committee mobilised “workers of 50 to 60 factories in Gurgaon”. On the 8th of June the main unions AITUC. said. having occupied the canteen. The basic salary for permanent workers and temporary workers is the minimum wages of around 5. They can air their grievances there.

” (Business Standard. But the demand was all the employees to be taken back. If the management doesn’t accept our demands today.” “There was no mention of the second union in the agreement signed yesterday.” . by the workers to the competent labour court and has also passed the orders prohibiting the continuance of the strike in the industrial unit. The plant will remain closed on Friday. All India Trade Union Congress (AITUC).involves the rights of our affiliated workers. general secretary. “The Haryana government has. which would be responsible for wage revisions and other general issues. instead. Manesar.” said RC Bhargava. On the 13th of June the company management announced that it would accept a separate union for the Manesar plant. “as a “rest” day for both workers and management and. adding police were there only as a precautionary measure. Also. The workforce says it will only start production when the 11 are taken back and given assurances they [management] will not interfere in the union.” said Shiv Kumar. Actually the eleven workers have to undergo an ‘inquiry’ before they are taken back.”. The strike was officially called ‘illegal’. 10th of June 2011). “We do not understand as to why the administration has moved such a large number of police personnel when we have been on peaceful strike from the beginning. referred the matter of ongoing strike in Maruti Suzuki Udyog Ltd. under the provisions of the Industrial Depute Act. “The company has now agreed that we would not be asked to sign the paper. The workers were represented by leader of the proposed new union Maruti Suzuki Employees Union Shiv Kumar and national secretary of AITUC Sachdev. the fact that Maruti took back the 11 workers shows that our demands were met. Hence they are willing to work overtime and make up as much as possible for the loss in production. . 1947. The workers delegation was told in no uncertain terms by officials of the labor department that MS management was insisting on the resignations of Sonu Gujjar (President) and Vinod Kumar (Secretary) as a precondition to any settlement whatsoever. the 17th of June. chairman. Initally Maruti Suzuki management offered to take back 5 of the 11 sacked workers. simply because the workers at the Manesar plant do not require the management’s permission to form a new union.” Minister of State for Labour and Employment Shiv Charan Lal Sharma said in a statement. will function on Sunday. but the union refused. the dispute was settled. sources informed that striking workers could be booted out of the factory with the use of police force.” “We are calling for the termination of the 11 workers to be revoked. Besides. Two truckloads additional police arrived on the factory premises. “Though the Gurgaon district magistrate said deployment of additional forces inside the 600-acre premises was just a precautionary measure. on 17th of June. (Hindustan Times. the company had to give us an assurance in writing of not taking any disciplinary action. “A puja [religious ceremony] has been called at 12 pm tomorrow as a symbolic way of starting things afresh. but under the umbrella of company council. the workers of other neighbouring plants will go on a day’s strike. We are observing a day’s satyagraha at the entrance of Maruti’s Manesar plant. “We have a court order that allows us to evict these workers from the factory citing protection of the equipment. MSIL. 10th of June 2011) On 10th of June the over-all pressure on the striking workers increased and pushed them further into the arms of the main unions. Ravinder Kulharia. a striking worker. Later. 17th of June 2011) The national secretary Sachdev concluded: “There has been massive loss of production and the workers are aware of this.” (Business Standard.” the administration official said.” Gurudas Dasgupta. said workers feared for their lives.

(The mainstream media humored itself by speaking about a golden handshake with guesstimates of the blood-money paid varying from INR 2. which it would subsequently recognize. None of their demands were met instead they were humiliated on the basis of mistakes they committed on the preparation of charter. their union registration still was not happening … forget union recognition and subsequent collective bargaining over employment terms.8 million to 4 million. A good number of them had iron rods. They constituted a committee to visit the best schools in town to collate information on the expenses needed. It was way below expectations and in bad taste as well example: Maruti Suzuki offered them INR 200 a month for child education ”. They did everything they could in order to write out. SY Siddiqui (Chief Operating Officer – Administration) contemptuously smiled back – he was probably intriguing on the basis of intelligence that the 11 man delegation would be beaten up if it did not accomplish anything that evening. Sarabjit Singh and Co. the workers began working on their charter-of-demands. angry and no mood to take it lying down. car door frame-channels and projectiles tucked beneath their shirts – intimidating management bouncers were always around and these workers had not forgotten the 2005 Haryana Police beat up of Honda workers inside the court premises. post 18th July 2012 these quotes went up as high as 15 million). Thinking everything to be oncourse. ninety-six supervisors and managers hospitalized for . Workers collected photocopies of the best industrial agreements they could come across. a charter-of-demands that would give them a decent life. It is said that Mr. The 11 man delegation went and reported to the mass that it could not achieve anything. They presented this charter-ofdemands to the management and sat politely across the negotiating table. They were prepared. even belligerent. Nothing happened on 17th July. Management’s unequivocal support for Ramkishor Manjhi’s act – Jiya Lal’s immediate suspension. 4th March 2012 was such a day. 18 July 2012-Violence Started-They first smashed the CC TV cameras that could record what they were doing. same working conditions At times they become very angry. denying them nature’s calls in the name of efficiency. Sandeep Dhillon. few workers Ram Meher. in return for their work. But next day supervisor Ramkishor Manjhi cursed worker Jiya Lal’s on his caste and beat him. Later on MS management announced that any worker charge-sheeted for the 2011 disturbances would not be allowed to participate in the elections to these committees. Efficient they were: it was all over within half an hour. It did not want to be beaten up. 2012 also began with the worker masses realizing that whatever the management may have committed in the October 2011 settlement. It recognized the union on the spot Maruti Suzuki Workers Union (MSWU) was the name they got for themselves. Maruti Suzuki reported a burnt main gate and administration building. on a piece of paper.Sonu and Vinod complied – they knew how tough the situation was for their comrades – most workers badly wanted a settlement. They they went after the bones of the men who had spent years teaching them efficiency. In other words things would be still the same – same pay. during the next three years. – the men representing the workers inside the negotiating room – folded their hands and told the management that the least it could do was revoke Jiya’s suspension in order to lessen the tension that evening. On 16th July 2012 MS management responded to the workers demands by circulating a sheet of paper that informed the workers what Maruti Suzuki was willing to give. In bargain the management had to relent and agree that it would not create any hurdles in the registration of MSEU. MS management sensed the mood that day. It blinked and it talked soft. The grudge began ‘A shift’ did not leave the factory premises when ‘B shift’ entered to begin work. accessed 16th August 2012) “… By any account. The statement says (http://www. Since Industrial Relations is a function of three variables – management. that they fled. Maruti Replies Back-. trade unions and workers. one dead. The Summary of the Case and After Effects: • IR focuses on proper communication between all stakeholders including the state but in case of Maruti there was a huge gap between the workers and the management instead as quoted in the articles there was not even a proper leadership in the initial stages of the strike. o Living Wage and Decent Standard of Life of laborers-. a workable approach towards planning for healthy labor-management relations can be developed by: .-Permanent.fractured bones and other injuries. this is not an “industrial relations” problem in the nature of management-worker differences over issues of wages or working conditions. • The health and Safety of workers should be a major concern for every management but ot has been discarded in case of Maruti.Article 43 –No increase in pay or allowance. Factories Act 1948. Maruti Suzuki did not report that its bouncers did not put up a fight. Later in August The Plant Started to function and the head of the SUZUKI Cop JAPAN came to india and visited MSIL Manesar. o No obligations of “Directive Principles of State Policy” was considered at MSIL o Equal Wages for Equal Work. Rather.”It would be retrenching more than 500 existing permanent workers and getting 100 para-military personnel from the state government to patrol the shop-floors during each shift and it would not be employing contract workers on the direct production line anymore. Contract labors and apprentices. it is an orchestrated act of mob violence at a time when operations had been normal over the past many months.On 19th July 2012 Maruti Suzuki issued a statement which has is quoted.

• Death of a Manager and Murder case against 377 Automobile Workers at Allied Nippon . industrial harmony is not possible. justice as its rule. both management and workers should not look upon themselves as two separate and distinct segments of an organization.  Manesar has Provoked Indian Academia To Don their thinking caps to bring back the lost focus on IR. realize that both are partners in an enterprise working for the success of the organization for their mutual benefit and interest. • Proper organization climate and extension of area of Industrial Relations. collective bargaining and tripartite negotiations. • Granting the freedom to act within these boundaries-NO external entities should be allowed to be involved For achieving the objectives of improved management for the trade union – • A realistic attitude of managers towards employees and vice versa for humanizing industrial relations. It is becoming increasingly obvious that industrial peace amongst all participants in the industrial relations systems requires truth as foundation. In all fairness. and liberty as its atmosphere. labor laws may lie down. • Respect for public opinion and democratic values • An integrated industrial relations policy incorporating rational wage policy. and to try and wipe out the dichotomy between the white collared and the Blue collared worker (August 29.  IR the new HRM Approach. Whatever. • An objective follow-up pattern for industrial relations system. • The maintenance of an efficient system of communication. but on the contrary. trade union and democratic rights. it is the approach of the management and union which matters and unless both are enlightened. • A comprehensive system of rules and discipline.This is relevant for both the MSEU and MSIL. Future Impacts:  Changes in laid labor laws especially those pre liberalization scenario.e: B-schools including IIMS reviewing HRM curriculum after Maruti’s Manesar Violence. • Institutionalism of industrial relations and effective forums for interaction between management and trade unions at plant. In fact both managements and workers need a change in their philosophy and attitudes towards each other.  IR to be viewed as the most important and exhaustive Function of HR. love as its driving force.Economic Times).Defining the acceptable boundaries of employer/ employee action.i. sanctity of ballot.  To discard the belief that “The Trade Union does not hampers the discipline”--Good governance what is required is a firmness to defend traditional values and promote change with dual focus on both equity and efficiency. industry and national levels.

Immediately after this episode the administration and the institutions of the industrialists were alerted to teach a lesson to the workers. If anyone dared to complain he was sure to lose his job. there was a demand to make those workers as permanent on the priority basis who were working for last 6-8 years.  A worker was always living in a dilemma of his economic needs and fear. beating them and expelling them on the frivolous grounds so that the owner does not have to regularize any worker and a ground is prepared for not honouring the contract. Omvir. . Since then this so called management was arbitrarily running the factory. at a time when there has been an ever increasing onslaught on the rights of the workers in the era of liberalisation and privatisation and when the administration and industrialists are taking resort to authoritarian means to prevent the workers from getting organized. . It was quite common for them to roam inside the factory openly carrying the guns in order to terrorise the workers. Besides the demands of the permanent workers. bonus and salary hike. The entire media with its clamouring tone is hell bent on terming the workers as murderers. But. On 13th November a bloody struggle took place between the management and the workers on the lawful demands of the workers of the Indo-Japanese Combo Allied Nippon Company situated in Sahibabad Site-4 in which the manager of the company Yogendra Chaudhary lost his life. This condition was gradually taking a dangerous turn and on 13th November it took an explosive form. The martyrdom of Safdar Hashmi of Jan Natya Manch at this place is also a testimony of the labour struggle here. All this caused enormous indignation among the workers. On the other hand the owner-management did not want to accept these demands. About six month ago the owner had secretly given lakhs of rupees to the so called management (in reality the white collared goons) – Yogendra Chaudhary and his colleagues Rajkumar. He was always fearful that if he would protest he would have to lose his job and face economic hassles.  On the other hand he was also thinking of salvaging his dignity and self-esteem. There was a surge in the incidents of threatening and intimidation to the workers. Let us first learn the history of the conditions and struggles of the workers of the Allied Nippon Company before reaching to any conclusion. 2010 Sahibabad is amongst those industrial areas where there has been a glorious history of labour struggles. it is but natural that the workers’ anger would be vented at some or the other place.  The workers were living in a condition of fear.Mahendra Singh Chaudhary and Narendra Dabas for breaking the union. The real cause of the incident –   There was a tension between the management and the union from last three months on the issues of contract.November 16.

The authoritarian behavior of the administration with the workers – (Yogendra’s relative and the security officer of the company Omvir Singh has lodged an F. The entire site-4 has been converted into a police cantonment and the police teams are conducting raids at different places in the workers bastis. the SSP Raghuvir Lal has been saying that the clash was initiated from the workers’ side. the manager lost his life. ) not so imp point  Right from the day of the incident. The owner’s son’s name is Rohan Talwar. Strength of the workers .I. On the other hand the labour department has already stayed the strike by the union by taking refuge to Industrial Dispute Act. Secondly if the management at the time of the formation of the union had promised to implement the demands of the workers and now when they have betrayed the promise and arbitrarily retrenching the workers. There is a big show room in Delhi. in the Link Road police station against 377 people and by naming 27 workers this case. the union did not have any other means than to go on strike which is a constitutional right of every citizen.R.The Union had earlier declared a strike and the company management wanted to halt it. On the other hand the leadership of CITU which claims to represent the interests of workers is maintaining a conspicuous silence over this issue. After that Yogendra Chaudhary opened fire and in 4-5 rounds of fire a bullet hit a worker named Brijesh.There are around 300 permanent workers in the Allied Nippon Company and the same would be the approximate strength of the casual workers. The empire of the company – The workers tell that owner of the company has 4-5 other factories in Gurgaon and other places. Further around the same number of workers work on contract. Some altercation ensued with the workers there. The stand of the administration is very clear.   Some questions which remain unanswered by the administration . Police has arrested 8 persons in this connection.Clearly the death of the manager cannot be justified but the question arises if the pistol is the way how the management wanted to hold a dialogue with the workers? If a case can be filed against 377 workers then why not against the management which carried out a fatal attack on the workers. Subsequently the angry workers valiantly fought with the officials and in an act of defence by the workers. . Many people were injured from both the sides. The workers formed their union in 2006 against the increasing exploitation of the company.What transpired on 13th November? . On the ill fated day at 2 o’clock in the afternoon the HR Head of the company Mahendra Chaudhary went to the two wheeler clutch wiring department along with Yogendra Chaudhary.

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