COMPANY PROFILE

COMPANY PROFILE ISGEC GROUP

A history of 70 Years. Customers in 66 Countries, across 6 Continents. The ISGEC Group comprises the heavy engineering divisions of the Saraswati Industrial Syndicate Ltd., which is a public company. The Group has its origins in the Saraswati Sugar Mills, which was established in 1933, with a sugarcane crushing capacity of 400 Tonnes per day. It has grown into one of India's largest sugar mill and now crushes 13,000 Tonnes per day. It is today a subsidiary company. At the time of the nation's independence, the need for an Indian Capital Goods Industry was recognized and Isgec was established in 1946. The initial activity was the manufacture of spares for sugar mills. In the course of its history, the Company diversified into a range of engineering products. In 1964 it established a joint venture with John Thompson of the UK to form ISGEC JOHN THOMPSON. In 1981, it acquired majority shares in UP STEELS. Both units were subsequently absorbed into the parent company. Today, the Company has six business units, namely: At Yamunanagar, (Haryana) India :: Isgec (Pressure Vessels & Heat Exchangers) :: Isgec (Presses)

:: Isgec (Iron Castings) At Noida, (Uttar Pradesh) India :: Isgec John Thompson (Boilers) :: Isgec (Sugar Machinery) At Muzaffarnagar, (Uttar Pradesh) India ::UP Steels (Steel Castings & Ingots) Spread over 100 Hectares (250 acres), the Company's manufacturing facilities have a shop floor area of over 55,000 square meters (66,400 square yards) with world class manufacturing & testing facilities. Isgec products have been supplied to reputed companies across 66 countries, many of whom have placed repeat orders on us. These include: o ABB, Japan o Siemens, Germany o Foster Wheeler, China o Sumitomo, Japan o Foster Wheeler, USA o Valeo, France o GE Hydro, Canada o VA Tech, USA o Luk, Germany o Wesfarmers Group, Australia

Corporate Office : ISGEC A-4, Sector-24 Noida-201 301 INDIA

Tel. : +91-120-2411289/90 Fax.: +91-120-2412250 e-mail:corpcomm@isgec.com

International Offices : USA ISGEC North America Office 2283 Country Club Drive, Pittsburgh, PA-15241 USA Tel. : +1-412-835-5333 Fax.: +1-412-835-5336 e-mail: ashi@isgec.com

EUROPE ISGEC Germany Office Kreiten Strasse 25, 40470 Dusseldorf, Germany Tel. : +49-211-271-63 00 Fax.: +49-211-271-63 01 e-mail: vchadha@isgec.com

PRESSURE VESSELS & HEAT EXCHANGERS - Shell & Tube Heat Exchangers - Pressure Vessels - Boiler Drums - Reactors - Columns & Towers - Boiler Pressure Parts - Galvanising Baths or Kettles - Fume Hoods PRESSES - Straight Side Presses Mechanical - Straight Side Presses- Hydraulic - 'C' Frame Presses - Mechanical

BOILERS - Dump Grate Boilers - Travelling Grate Boilers - Atmospheric Fluidised Bed Combustion Boilers (AFBC) - Circulating Fluidised Bed Combustion Boilers (CFBC) - Oil / Gas Fired Boilers - Waste Heat Recovery Boilers - Deaerators - Spares STEEL CASTINGS - Hydro Turbine Castings - Gas Turbine Castings - Steam Turbine Castings - Valve Castings - Mn Steel Castings - Ni - Hard Castings - Pump Castings - General Castings - Sugar Mill Castings - Cement Mill Castings - S.G. Iron Castings

SUGAR PLANTS AND MACHINERY - Complete Cane Sugar Plants - High Performance Cane Mills - Process House Equipment - Bagasse Fired Boilers - Spares

IRON CASTINGS - Castings for Pump and Compressor Industry - Castings for Chemical & Dye Stuff Industry - Castings for Soda Ash Industry - Castings for Tool & Dies Industry - Castings for Machine Tools Industry - Castings for Steel Plant Industry - Castings for Sugar Industry LIQUIFIED GAS CONTAINER - Model 'A' - Model 'B' - Model 'C' - Model 'D' (approved by DOT, USA) CONTRACT MANUFACTURING - Custom Job Work (Heavy Engineering Equipment

as per Client's Designs Drawings)

and

INDUSTRIAL RELATION Industrial relation is used to denote the collective relationships between management and the workers. Traditionally, the term industrial relations is used to cover such aspects of industrial life as trade unionism, collective bargaining, workers participation in management, discipline and grievance handling, industrial disputes and interpretation of labor laws and rules and code of conduct. In the words of Lester, "Industrial relations involve attempts at arriving at solutions between the conflicting objectives and values; between the profit motive and social gain; between discipline and freedom, between authority and industrial democracy; between bargaining and co-operation; and between conflicting interests of the individual, the group and the community. The National Commission on Labor (NCL) also emphasize on the same concept. According to NCL, industrial relations affect not merely the interests of the two participants- labor and management, but also the economic and social goals to which the State addresses itself. To regulate these relations in socially desirable channels is a function, which the State is in the best position to perform. In fact, industrial relation encompasses all such factors that influence behavior of people at work. A few such important factors are below: Institution: It includes government, employers, trade unions, union

federations or associations, government bodies, labor courts, tribunals and other organizations which have direct or indirect impact on the industrial relations systems. Characters: It aims to study the role of workers unions and employers federations officials, shop stewards, industrial relations officers/ manager, mediator/conciliators / arbitrator, judges of labor court, tribunal etc. Methods: Methods focus on collective bargaining, workers participation in the industrial relations schemes, discipline procedure, grievance redressal machinery, dispute settlements machinery working of closed shops, union reorganization, organizations of protes courts, tribunals etc. Contents: It includes matter pertaining to employment conditions like pay, hours of works, leave with wages, health, and safety disciplinary actions, lay-off, dismissals retirements etc., laws relating to such activities, regulations governing labor welfare, social security, industrial relations, issues concerning with workers participation in management, collective bargaining, etc. ts through methods like revisions of existing rules, regulations, policies, procedures, hearing of labor

INTRODUCTION TO THE PROJECT -(CONFLICT IN AN ORGANIZATION ( INDUSTRIAL RELATION ) Industry: Industrial Disputes Act 1947 defines an industry as any systematic activity carried on by co-operation between an employer and his workmen for the production, supply or distribution of goods or services with a view to satisfy human wants or wishes whether or not any capital has been invested for the purpose of carrying on such activity; or such activity is carried on with a motive to make any gain or profit. Thus, an industry is a whole gamut of activities that are carried on by an employer with the help of his employees and labors for production and distribution of goods to earn profits.

Employer: An employer can be defined from different perspectives as:

a person or business that pays a wage or fixed payment to other person(s) in exchange for the services of such persons. a person who directly engages a worker/employee in employment. any person who employs, whether directly or through another person or agency, one or more employees in any scheduled employment in respect of which minimum rates of wages have been fixed.

As per Industrial Disputes Act 1947 an employer means:-

in relation to an industry carried on by or under the authority of any department of [the Central Government or a State Government], the authority prescribed in this behalf, or where no authority is prescribed, the head of the department; in relation to an industry carried on by or on behalf of a local authority, the chief executive officer of that authority;

Employee:

Employee is a person who is hired by another person or business for a wage or fixed payment in exchange for personal services and who does not provide the services as part of an independent business. An employee is any individual employed by an employer. A person who works for a public or private employer and receives remuneration in wages or salary by his employer while working on a commission basis, piece-rates or time rate. Employee, as per Employee State Insurance Act 1948, is any person employed for wages in or in connection with work of a factory or establishment to which the act applies.

In order to qualify to be an employee, under ESI Act, a person should belong to any of the categories:
o

those who are directly employed for wages by the principal employer within the premises or outside in connection with work of the factory or establishment.

those employed for wages by or through an immediate employer in the premises of the factory or establishment in connection with the work thereof those employed for wages by or through an immediate employer in connection with the factory or establishment outside the premises of such factory or establishment under the supervision and control of the principal employer or his agent. employees whose services are temporarily lent or let on hire to the principal employer by an immediate employer under a contract of service (employees of security contractors, labor contractors, house keeping contractors etc. come under this category).

Employment: The state of being employed or having a job. Labor market: The market in which workers compete for jobs and employers compete for workers. It acts as the external source from which organizations attract employees. These markets occur because different conditions characterize different geographical areas, industries, occupations, and professions at any given time. Industrial Relation System An industrial relations system consists of the whole gamut of relationships between employees and employees and employers which are managed by the means of conflict and cooperation. A sound industrial relations system is one in which relationships between management and employees (and their representatives) on the one hand, and

between them and the State on the other, are more harmonious and cooperative than conflictual and creates an environment conducive to economic efficiency and the motivation, productivity and development of the employee and generates employee loyalty and mutual trust.

ACTORS IN THE IR SYSTEM

Three main parties are directly involved in industrial relations: Employers: Employers possess certain rights vis--vis labors. They have the right to hire and fire them. Management can also affect workers interests by exercising their right to relocate, close or merge the factory or to introduce technological changes. Employees: Workers seek to improve the terms and conditions of their employment. They exchange views with management and voice their grievances. They also want to share decision making powers of management. Workers generally unite to form unions against the management and get support from these unions. Government: The central and state government influences and regulates industrial relations through laws, rules, agreements, awards of court ad the like. It also includes third parties and labor and tribunal courts.

SCOPE OF THE STUDY : The concept of industrial relations has a very wide meaning and connotation. In the narrow sense, it means that the employer, employee relationship confines itself to the relationship that emerges out of the day to day association of the management and the labor. In its wider sense, industrial relations include the relationship between an employee and an employer in the course of the running of an industry and may project it to spheres, which may transgress to the areas of quality control, marketing, price fixation and disposition The main of issues profits involved here among include the others. following:

1. Collective bargaining 2. Machinery for settlement of industrial disputes 3. Standing orders 4. Unfair labor practices

IMPORTANCE OF INDUSTRIAL RELATIONS The healthy industrial relations are key to the progress and success. Their significance may be discussed as under Uninterrupted production The most important benefit of industrial relations is that this ensures continuity of production. This means, continuous employment for all from manager to workers. The resources are fully utilized, resulting in the maximum possible production. There is uninterrupted flow of income for all. Smooth running of an industry is of vital importance for several other industries; to other industries if the products are intermediaries or inputs; to exporters if these are export goods; to consumers and workers, if these are goods of mass consumption. Reduction in Industrial Disputes Good industrial relations reduce the industrial disputes. Disputes are reflections of the failure of basic human urges or motivations to secure adequate satisfaction or expression which are fully cured by good industrial relations. Strikes, lockouts, go-slow tactics, gherao and grievances are some of the reflections of industrial unrest which do not spring up in an atmosphere of industrial peace. It helps promoting cooperation and increasing production. High morale Good industrial relations improve the morale of the employees. Employees work with great zeal with the feeling in mind that the interest of employer and employees is one and the same, i.e. to increase production. Every worker feels that he is a co-owner of the gains of industry. The employer in his turn must realize that the gains of industry are not for him along but they should be shared equally and generously with his

workers. In other words, complete unity of thought and action is the main achievement of industrial peace. It increases the place of workers in the society and their ego is satisfied. It naturally affects production because mighty co-operative efforts alone can produce great results. Mental Revolution The main object of industrial relation is a

complete mental revolution of workers and employees. The industrial peace lies ultimately in a transformed outlook on the part of both. It is the business of leadership in the ranks of workers, employees and Government to work out a new relationship in consonance with a spirit of true democracy. Both should think themselves as partners of the industry and the role of workers in such a partnership should be recognized. On the other hand, workers must recognize employers authority. It will naturally have impact on production because they recognize the interest of each other. Reduced Wastage Good industrial relations are maintained on the basis of cooperation and recognition of each other. It will help increase production. Wastages of man, material and machines are reduced to the minimum and thus national interest is protected.

Thus, it is evident that good industrial relations is the basis of higher production with minimum cost and higher profits. It also results in increased efficiency of workers. New and new projects may be introduced for the welfare of the workers and to promote the morale of the people at work. An economy organized for planned production and distribution, aiming at the realization of social justice and welfare of the massage can function effectively only in an atmosphere of industrial peace. If the twin objectives of rapid national development and increased social justice are to be

achieved, there must be harmonious relationship between management and labor.

DUNLOP'S CONTRIBUTION TO INDUSTRIAL RELATIONS One of the significant theories of industrial labor relations was put forth by John Dunlop in the 1950s. According to Dunlop industrial relations system consists of three agents management organizations, workers and formal/informal ways they are organized and government agencies. These actors and their organizations are located within an environment defined in terms of technology, labor and product markets, and the distribution of power in wider society as it impacts upon individuals and workplace. Within this environment, actors interact with each other, negotiate and use economic/political power in process of determining rules that constitute the output of the industrial relations system. He proposed that three parties employers, labor unions, and government-- are the key actors in a modern industrial relations system. He also argued that none of these institutions could act in an autonomous or independent fashion. Instead they were shaped, at least to some extent, by their market, technological and political contexts. Thus it can be said that industrial relations is a social sub system subject to three environmental constraints- the markets, distribution of power in society and technology. Dunlop's model identifies three key factors to be considered in conducting an analysis of the management-labor relationship: 1. Environmental or external economic, technological, political, legal and social forces that impact employment relationships. 2. Characteristics and interaction of the key actors in the employment relationship: labor, management, and government.

3. Rules that are derived from these interactions that govern the employment relationship. Dunlop emphasizes the core idea of systems by saying that the arrangements in the field of industrial relations may be regarded as a system in the sense that each of them more or less intimately affects each of the others so that they constitute a group of arrangements for dealing with certain matters and are collectively responsible for certain results. In effect - Industrial relations is the system which produces the rules of the workplace. Such rules are the product of interaction between three key actors workers/unions, employers and associated organizations and government The Dunlops model gives great significance to external or environmental forces. In other words, management, labor, and the government possess a shared ideology that defines their roles within the relationship and provides stability to the system. Unitary Perspective In unitarism, the organization is perceived as an integrated and harmonious system, viewed as one happy family. A core assumption of unitary approach is that management and staff, and all members of the organization share the same objectives, interests and purposes; thus working together, hand-inhand, towards the shared mutual goals. Furthermore, unitarism has a paternalistic approach where it demands loyalty of all employees. Trade unions are deemed as unnecessary and conflict is perceived as disruptive.

From employee point of view, unitary approach means that:

Working practices should be flexible. Individuals should be business process improvement oriented, multi-skilled and ready to tackle with efficiency whatever tasks are required. If a union is recognized, its role is that of a further means of communication between groups of staff and the company. The emphasis is on good relationships and sound terms and conditions of employment. Employee participation in workplace decisions is enabled. This helps in empowering individuals in their roles and emphasizes team work, innovation, creativity, discretion in problem-solving, quality and improvement groups etc. Employees should feel that the skills and expertise of managers supports their endeavors.

From employer point of view, unitary approach means that:

Staffing policies should try to unify effort, inspire and motivate employees. The organization's wider objectives should be properly communicated and discussed with staff. Reward systems should be so designed as to foster to secure loyalty and commitment. Line managers should take ownership of their team/staffing responsibilities.

Staff-management conflicts - from the perspective of the unitary framework - are seen as arising from lack of information, inadequate presentation of management's policies. The personal objectives of every individual employed in the business should be discussed with them and integrated with the organizations needs.

Pluralistic-Perspective In pluralism the organization is perceived as being made up of powerful and divergent sub-groups - management and trade unions. This approach sees conflicts of interest and disagreements between managers and workers over the distribution of profits as normal and inescapable. Consequently, the role of management would lean less towards enforcing and controlling and more toward persuasion and co-ordination. Trade unions are deemed as legitimate representatives of employees. Conflict is dealt by collective bargaining and is viewed not necessarily as a bad thing and if managed could in fact be channeled towards evolution and positive change. Realistic managers should accept conflict to occur. There is a greater propensity for conflict rather than harmony. They should anticipate and resolve this by securing agreed procedures for settling disputes. The implications of this approach include:

The firm should have industrial relations and personnel specialists who advise managers and provide specialist services in respect of staffing and matters relating to union consultation and negotiation.

Independent external arbitrators should be used to assist in the resolution of disputes. Union recognition should be encouraged and union representatives given scope to carry out their representative duties Comprehensive collective agreements should be negotiated with unions

RIGHTS AND LIABILITIES OF REGISTERED TRADE UNIONS OBJECTS ON WHICH GENERAL FUNDS MAY BE SPENTS : Section 15 enumerates the objects on which general funds of a registered Trade union shall be spent. Trade Union shall not spent the funds on any other objects. Then the following : (a) (b) the payment of salaries, allowances and expenses to officebearers of the Trade union: the payment of expenses for the administration of Trade Union, including audit of the accounts of the general funds of the Trade union. (c) The prosecution or defence of any legal proceeding to which the Trade Union or any member thereof is a party when such prosecution or defence is undertaken for the purpose of securing or protecting any rights of the relations of any member with his employer or with a person whom the member employs. (d) (e) (f) (g) The conduct of trade disputes on behalf of the Trade Union or any member thereof. The compensation of members for loss arising out of trade disputes; Allowances to members of their dependants on account of death old age, sickness, accidents or unemployment of such members; The issue of, or the undertaking of liability under, policies of assurance on the lives of members, or under policies insuring members against sickness, accident or unemployment; (h) The provisions of educational, social or religious benefits for members (including the payment of expenses of funeral or

religious ceremonies for deceased members) or for the dependents of members; (i) (j) The unkeep of periodical published mainly for the purpose of discussing questions affecting employers or workmen as such; The payment in furtherance of any of the objects on which the general funds of the Trade Union may be spent, or contributions to any cause intended to benefit workmen in general, provided that the expenditure in respect of such contributions in any financial year shall not at any time during that year be in excess of onefourth of the combined total of the gross income which has up to that time accrued to the general funds of the Trade Union during that year and of the balance at the credit of those funds at the commencement of that year; and (k) Subject to any conditions contained in the notification, any other object notified by the (appropriate government) in the (official gazette)

CONSTITUTIONS OF SEPARATE FUND FOR POLITICAL PURPOSES A Registered Trade Union, may constitute separate fund, from contributions separately levied for or made to that fund, from which payments may be made for there promotion of civic and political interests of its members, in furtherance of any of the objects specified in sub-section (2). Section 16(2) specifies the objects referred to above in sub-section (1) are: (a) the payment of any expenses incurred, either directly or indirectly, by a candidate or prospective candidate for election as a member of any legislative body constituted under the constitution or of any local authority, before, during or after the election in connection with his candidature or election; or (b) the holding of any meeting or the distribution of any literature or document in support of any such candidate or prospective candidates; or (c) the maintenance of any person who is a member of any legislative body constituted under the constitution or for any local authority, or (d) the registration of elections or the selection of a candidate for any legislative body constituted under the constitution or for any local authority, or (e) the holding of political meetings of any kind, or the distribution of political literature or political documents of any kind.

PRIVILEGES OF A REGISTERED TRADE UNION These privileges are dealt with under sections 17,18 and 19 of the Act. They are as follows : (a) As to Criminal liability Section 17 of the Act provides that no office-bearer or member of a registered Trade Union shall be liable to punishment under Sub-section (2) of Section 120 B of the Indian Penal Code in respect of any agreement made between the members for the purpose of furthering any such object of the Trade Union as is specified in Section 15, unless, the agreement is an agreement to commit an offence. Trade Unions have a right to declare strikes and to do certain acts in furtherance of trade dispute. The protection is not available in cases of agreement to commit an offence. (b) As to civil liability Section 18(1) provides that no suit or other legal proceedings shall be maintainable in any Civil Court against any registered Trade Union or any office bearer or member thereof in respect of any act done in contemplation or furtherance of trade disputes to which a member of the Trade union is a party on the ground only that such act includes some other person to break a contract of employment of some other person or with the right of some other person to dispose of his capital or labour as he wills. Immunity from tortuous liability Sub-section (2) of section 18 provides immunity from a tortuous liability to the registered unions. A registered Trade Union shall not be liable

in any suit or other legal proceeding in any civil Court for any tortuous act done in contemplation or furtherance of a trade dispute by an agent of the Trade union if is proved that : or Contrary to the express instructions of the executive of the Trade Union. In Dalmia Cement Factory Ltd. V. N.D. Ananji Bachar, it was observed that Section 18 does not afford immunity to a Trade Union, its office bearers or members, for an act of deliberate trespass. (c) Contractual liability : Enforceability of agreements Section 19 provides that notwithstanding anything contained in any law for the time being in force, an agreement between the members of a registered Trade Union shall not be void or voidable merely by reason of the fact that any of the objects of the agreement are in restraint of trade.
(d)

Such person had acted without knowledge of;

The provision to this section lays down that provisions of this section shall not enable any Civil Court to entertain any legal proceeding instituted for the express purpose of enforcing or recovering damages for the breach of any agreement concerning the conditions on which any member of the Trade Union shall or shall not

(a) (b) (c) (d)

employ; or be employed; or work; or sell their goods; or

(e) (i)

transact business Minors membership Section 21 provide the membership of registered Trade Union of a minor, but he must have attained the age of fifteen years. But this is subject to any rules of the Trade Union to the contrary, and may subject as aforesaid, enjoy all the rights of member and execute all instruments and give all acquaintances necessary to be executed or given under the rules.

RIGHTS OF MINORS TO MEMBERSHIP OF TRADE UNIONS

DISQUALIFICATIONS OF OFFICE BEARERS OF TRADE UNIONS

These disqualifications are detailed under section21-A(1) according to which a person shall be disqualified for being chosen as and for being a member of the executive or any other office bearer of a registered Trade Union if
PROPORTION OF OFFICERS TO BE CONNECTED WITH THE INDUSTRY

Section 22 lays down that not less than one-half of the total number of the office-bearers of every registered Trade Union shall be the person actually engaged or employed in an industry with which the Trade Union is connected. But the appropriate government may be special or general order, declare that the provisions of this section shall not apply to any Trade Union or class of Trade Unions specified in the order. CHANGE OF NAME

Section 23 provides that any registered Trade Union may, with the consent of not less than two-thirds of the total number of its members subject to the provisions of section 25(see below), change its name. AMALGAMATION OF TRADE UNION As per provisions of Section 24 provides that any two or more registered Trade Unions may become amalgamated together as one Trade Union with or without dissolution, or division of the funds of such Trade Unions or either or any of them, provided that the votes of atleast one-half of the members of each or every such Trade Union entitled to vote are recorded, and that atleast sixty percent of the votes recorded are in favor of the proposal. Notice of change of name or amalgamation Under sub section (1) of Section 25, notice in writing of every change of name and of every amalgamation, signed in case of change of name, by the secretary, and by seven members of the Trade Union changing its name, and in the case of an amalgamation, by seven member of each and every Trade Union which is a party thereto, shall be sent to the Registrar, and where the head office of the amalgamated Trade Union is situated in a different State, the Registrar of such State. Sub-section (2) of Section 25 provides that if the proposed name is identical with that by which any other existing Trade Union has been registered or, in the opinion of the Registrar so nearly resembles such name as to be likely to deceive the public or the members of either Trade Union, the Registrar shall refuse to register the change. Sub-section (3) provides that if the Registrar is satisfied as to the proposed name of the Trade Union, as required by Sub-section (2), noted above, as also in respect of the compliance of the provisions of this Act

relating to change of name, he shall register the change of name in the register referred in Section 8 and the change of name shall have the effect from the date of such Registration. EFFECTS OF CHANGE OF NAME AND OF AMALGAMATION As per provisions of Section 26 the change in the name of a registered Trade Union shall not affect any rights or obligations of the Trade Union or render defective any legal proceeding by or against Trade Union, and any legal proceeding which might have been continued or commenced by or against, it by its former name may be continued or commenced by or against it by its former name may be continued or commenced by or against it by its new name. (2) An amalgamation of two or more registered Trade Unions shall not

prejudice any right of any such Trade Unions or any right of a creditor of any of them. DISSOLUTION The procedure is given under Section 27 of the Act, sub-section (1) lays down that when a registered Trade Union is dissolved, notice of dissolution, signed by seven members and by the secretary of the Trade Union shall within fourteen days of the dissolution, be sent to the Registrar, and shall be registered by him if he is satisfied that the dissolution has been effected in accordance with the rules of Trade Union, and the dissolution shall have effect from the date of such registration. Under Sub-section (2), it is provided that where the dissolution of registered Trade Union has been registered and the rules of the Trade Union

do not provide for the distribution of the funds of the Trade Union on dissolution, the Registrar shall divide the funds amongst the members in such manner as may be prescribed. PENALTIES AND PROCEDURE Sections 31, 32 and 33 deal with the penalties, offences and cognizance. As per provisions of Section 28 Retunes shall be sent annually to the Registrar, on or before such date as may be prescribed, a general statement, audited in the prescribed, manner, of all receipts and expenditure of every registered Trade Union during the year ending on the 31st day of December next preceding such prescribed date; and the assets and liabilities of the Trade Union existing on the 31st day of December. Section 31 provides for penalty for the default or failure to submit such returns or notices required under the Act. If default is made by a registered Trade Union in giving such notice or sending statement or other documents as required under the Act (a) (b) (c) every office bearer; or other persons bound by rules of the Trade Union to give or send the same; or if there is no such office-bearer or person every member of the executive of the Trade Union shall be punishable with a fine which may extend to Rs Five and in case of continuing default, with the additional fine which may extend to five rupees for each week for the first week during which the default continues, but the aggregate fine shall not exceed rupees fifty. (2) Any person who willfully makes, or causes to be made, any false entry in, or any omission from the general statement required by Section 28, or in or from any copy of rules or of alternations of rules sent to the

Registrar under that section, shall be punishable with fine which may extend to five hundred rupees. Section 32 provides that any person who, with intent to deceive, gives to any member of registered Trade Union or any person intending or applying to become a member of such Trade Union any document purporting to be a copy of the rules of the Trade Union or of any alternations to the same which he knows, or has reason to believe, is not a correct copy of such rules or alternations as are for the time being in force, or any person who, with the like intent, gives a copy of any rules of an unregistered Trade Union to any person on the pretence that such rules, are the rules of a registered Trade Union shall be punishable with a fine which may extend to two hundred rupees. Cognizance Section 33 provides that no court inferior to that of a Presidency Magistrate or a Magistrate of the first class shall try any offence under this Act. Cognizance can be taken only on a complaint by the Registrar, or with the previous sanction of the Registrar or in the case of an offence under section 32, mentioned above, by the person to whom the copy was given.

LIMITATION

Such complaint must be filed within six months of the date on which the offence is alleged to have been committed.

MARXIST PERSPECTIVE This view of industrial relations is a by product of a theory of capitalist society and social change. Marx argued that: Weakness and contradiction inherent in the capitalist system would result in revolution and the ascendancy of socialism over capitalism. Capitalism would foster monopolies. Wages (costs to the capitalist) would be minimized to a subsistence level. Capitalists and workers would compete/be in contention to win ground and establish their constant win-lose struggles would be evident. This perspective focuses on the fundamental division of interest between capital and labor, and sees workplace relations against this background. It is concerned with the structure and nature of society and assumes that the conflict in employment relationship is reflective of the structure of the society. Conflict is therefore seen as inevitable and trade unions are a natural response of workers to their exploitation by capital.

CAUSES OF INDUSTRIAL DISPUTES The causes of industrial disputes can be broadly classified into two categories: economic and non-economic causes. The economic causes will include issues relating to compensation like wages, bonus, allowances, and conditions for work, working hours, leave and holidays without pay, unjust layoffs and retrenchments. The non economic factors will include victimization of workers, ill treatment by staff members, sympathetic strikes, political factors, indiscipline etc. Wages and allowances: Since the cost of living index is increasing, workers generally bargain for higher wages to meet the rising cost of living index and to increase their standards of living. In 2002, 21.4% of disputes were caused by demand of higher wages and allowances. This percentage was 20.4% during 2003 and during 2004 increased up to 26.2%. In 2005, wages and allowances accounted for 21.8% of disputes. Personnel and retrenchment: The personnel and retrenchment have also been an important factor which accounted for disputes. During the year 2002, disputes caused by personnel were 14.1% while those caused by retrenchment and layoffs were 2.2% and 0.4% respectively. In 2003, a similar trend could be seen, wherein 11.2% of the disputes were caused by

personnel, while 2.4% and 0.6% of disputes were caused by retrenchment and layoffs. In year 2005, only 9.6% of the disputes were caused by personnel, and only 0.4% were caused by retrenchment. Indiscipline and violence: From the given table, it is evident that the number of disputes caused by indiscipline has shown an increasing trend. In 2002, 29.9% of disputes were caused because of indiscipline, which rose up to 36.9% in 2003. Similarly in 2004 and 2005, 40.4% and 41.6% of disputes were caused due to indiscipline respectively. During the year 2003, indiscipline accounted for the highest percentage (36.9%) of the total timeloss of all disputes, followed by cause-groups wage and allowance and personnel with 20.4% and11.2% respectively. A similar trend was observed in 2004 where indiscipline accounted for 40.4% of disputes. Bonus: Bonus has always been an important factor in industrial disputes. 6.7% of the disputes were because of bonus in 2002 and 2003 as compared to 3.5% and 3.6% in 2004 and 2005 respectively. Leave and working hours: Leaves and working hours have not been so important causes of industrial disputes. During 2002, 0.5% of the disputes were because of leave and hours of work while this percentage increased to 1% in 2003. During 2004, only 0.4% of the disputes were because of leaves and working hours. Miscellaneous: The miscellaneous factors include - Inter/Intra Union Rivalry - Charter of Demands - Work Load

- Standing orders/rules/service conditions/safety measures - Non-implementation of agreements and awards etc.

ANALYSIS OF INDUSTRIAL DISPUTES The number of industrial disputes in country has shown slow but steady fall over the past ten years. In 1998, the total number of disputes was 1097 which fell by more than half to 440 in 2006.It is being estimated that this trend will continue in 2007 as well. To support this, only 45 cases of disputes have been recorded during the first four months of 2007. This significant decline is attributed to the serious attempts made by industries to improve industrial relations with their workers. However, a deeper look at the data reveals that the number of mandays (i.e., the industrial unit of production equal to the work one person can produce in a day) lost due to disputes has not come down as significantly. The country, on an average, lost 25.4 million mandays of work annually between 1998 and 2006, which might have affected its industrial output. More than 2.14 lakh mandays were lost due to work stoppages in 23 industrial disputes during January to March 2007. Though there has been a decline in the number of strikes, the country still witnessed some major strikes between 2004 and 2006, like those in Honda, Escorts, Apollo, and Skumars factories and in SBI bank.

On analyzing the data sector wise, it is clear that the private sector has witnessed greater number of disputes as compared to the public sector. In 2005, only 57 disputes were recorded in public sector which resulted in a wage loss of 79 Crores. In contrast to this, 399 disputes were recorded in the private sector. In the recent past, maximum number of disputes has been recorded in the manufacturing, agriculture and mining and quarrying

industries.

STRIKES A strike is a very powerful weapon used by trade unions and other labor associations to get their demands accepted. It generally involves quitting of work by a group of workers for the purpose of bringing the pressure on their employer so that their demands get accepted. When workers collectively cease to work in a particular industry, they are said to be on strike.

According to Industrial Disputes Act 1947, a strike is a cessation of work by a body of persons employed in an industry acting in combination; or a concerted refusal of any number of persons who are or have been so

employed to continue to work or to accept employment; or a refusal under a common understanding of any number of such persons to continue to work or to accept employment. This definition throws light on a few aspects of a strike. Firstly, a strike is a referred to as stoppage of work by a group of workers employed in a particular industry. Secondly, it also includes the refusal of a number of employees to continue work under their employer. In a strike, a group of workers agree to stop working to protest against something they think is unfair where they work. Labors withhold their services in order to pressurize their employment or government to meet their demands. Demands made by strikers can range from asking for higher wages or better benefits to seeking changes in the workplace environment. Strikes sometimes occur so that employers listen more carefully to the workers and address their problems.

CAUSES OF STRIKES: Strikes can occur because of the following reasons:

Dissatisfaction with company policy Salary and incentive problems Increment not up to the mark Wrongful discharge or dismissal of workmen Withdrawal of any concession or privilege Hours of work and rest intervals Leaves with wages and holidays

Bonus, profit sharing, Provident fund and gratuity Retrenchment of workmen and closure of establishment Dispute connected with minimum wages

TYPES OF STRIKE :
1. Economic Strike: Under this type of strike, labors stop their work to

enforce their economic demands such as wages and bonus. In these kinds of strikes, workers ask for increase in wages, allowances like traveling allowance, house rent allowance, dearness allowance, bonus and other facilities such as increase in privilege leave and casual leave.
2. Sympathetic Strike: When workers of one unit or industry go on

strike in sympathy with workers of another unit or industry who are already on strike, it is called a sympathetic strike. The members of other unions involve themselves in a strike to support or express their sympathy with the members of unions who are on strike in other undertakings. The workers of sugar industry may go on strike in sympathy with their fellow workers of the textile industry who may already be on strike.
3. General Strike: It means a strike by members of all or most of the

unions in a region or an industry. It may be a strike of all the workers in a particular region of industry to force demands common to all the workers. These strikes are usually intended to create political pressure on the ruling government, rather than on any one employer. It may also be an extension of the sympathetic strike to express generalized protest by the workers.

4. Sit down Strike: In this case, workers do not absent themselves from

their place of work when they are on strike. They keep control over production facilities. But do not work. Such a strike is also known as 'pen down' or 'tool down' strike. Workers show up to their place of employment, but they refuse to work. They also refuse to leave, which makes it very difficult for employer to defy the union and take the workers' places. In June 1998, all the Municipal Corporation employees in Punjab observed a pen down strike to protest against the non-acceptance of their demands by the state government.
5. Slow Down Strike: Employees remain on their jobs under this type of

strike. They do not stop work, but restrict the rate of output in an organized manner. They adopt go-slow tactics to put pressure on the employers.
6. Sick-out (or sick-in): In this strike, all or a significant number of

union members call in sick on the same day. They dont break any rules, because they just use their sick leave that was allotted to them on the same day. However, the sudden loss of so many employees all on one day can show the employer just what it would be like if they really went on strike.
7. Wild cat strikes: These strikes are conducted by workers or

employees without the authority and consent of unions. In 2004, a significant number of advocated went on wildcat strike at the City Civil Court premises in Bangalore. They were protesting against some remarks allegedly made against them by an Assistant Commissioner

LOCKOUTS A lockout is a work stoppage in which an employer prevents employees from working. It is declared by employers to put pressure on their workers. This is different from a strike, in which employees refuse to work. Thus, a lockout is employers weapon while a strike is raised on part of employees. Acc to Industrial Disputes Act 1947, lock-out means the temporary closing of a place of employment or the suspension of work or the refusal by an employer to continue to employ any number of persons employed by him.

A lockout may happen for several reasons. When only part of a trade union votes to strike, the purpose of a lockout is to put pressure on a union by reducing the number of members who are able to work. For example, if a group of the workers strike so that the work of the rest of the workers becomes impossible or less productive, the employer may declare a lockout until the workers end the strike. Another case in which an employer may impose a lockout is to avoid slowdowns or intermittent workstoppages. Occupation of factories has been the traditional method of response to lock-outs by the workers' movement.

PICKETING When workers are dissuaded from work by stationing certain men at the factory gates, such a step is known as picketing. If picketing does not involve any violence, it is perfectly legal. Pickets are workers who are on strike that stand at the entrance to their workplace. It is basically a method of drawing public attention towards the fact that there is a dispute between the management and employees. The purpose of picketing is:

to stop or persuade workers not to go to work to tell the public about the strike to persuade workers to take their union's side

GHERAO Gherao in Hindi means to surround. It denotes a collective action initiated by a group of workers under which members of the management are prohibited from leaving the industrial establishment premises by workers who block the exit gates by forming human barricades. The workers may gherao the members of the management by blocking their exits and forcing them to stay inside their cabins. The main object of gherao is to inflict physical and mental torture to the person being gheraoed and hence this weapon disturbs the industrial peace to a great extent.

ANALYSIS OF STRIKES AND LOCKOUTS In 1990, 1,825 strikes and lockouts were recorded. As a result, 24.1 million workdays were lost, from which 10.6 million were lost to strikes and 13.5 million to lockouts. More than 1.3 million workers were involved in these labor disputes. The number and seriousness of strikes and lockouts have varied from year to year. As can be seen from the below chart, there has been a steep decline in the number of strikes and lockouts. This continuous decline in strikes and lockouts indicates that the industrial relations in India are improving. There were 227 strikes in 2005, resulting in the loss of 10.81 million man-days, while the number of lockouts stood at 229 with a loss of 18.86 million man-days. In January-September 2006,

there were only 154 strikes and 192 lockouts across the country, as compared to the statistics of 2005, which resulted in the time loss of 3.16 million man-days and 10.60 million man-days respectively.

The number of strikes and lockouts, taken together, was down by 4.4 per

cent in 2005. During 2005, West Bengal experienced the maximum instances of strikes and lockouts (19216) followed by Kerala (3619) and Rajasthan (19247). Industrial disturbances were concentrated mainly in manufacturing (textile), financial intermediation, agriculture and mining and quarrying industries during 2005. Prohibition of Strikes and Lock-Outs Employees are prohibited from striking according to the section 22 of Industrial Disputes Act 1947. Employees, who are working in a public utility service, cannot go on a strike without giving a notice of strike within the six weeks before striking. They can not go on strike either within fourteen days of providing the strike notice or before the expiry of the date of strike specified in any such notice. The same rule applies to the employers. Employers who are carrying on a public utility service can not lockout any of their employees without giving them a prior notice within six weeks before the lock out or within the fourteen days of giving such a notice. Moreover, the notice of strike or lockout is to be given in a prescribed manner showing the number of persons involved in the strike/lockout. The notice of strike or lockout is not necessary when there is already a strike or lockout going on in the company. However, a notice should be issued on the day on which the lockout is declared just to intimate the appropriate authorities about the lockout. The employer is supposed to report the number of notices of strikes received by him to the appropriate Government or the authority prescribed by the government within the five days of receiving such notices.

Illegal Strikes and Lock-Outs A strike or a lock-out is illegal if it is declared in noncompliance with the section 22 (as defined above) of Industrial Disputes Act 1947, that is, if the notice period is not served or if the strike is held within the fourteen days of issuing the notice of strike. If a strike or lockout has already taken place and is being referred to a Board, the continuance of such a strike or lock out is not illegal provided it is in compliance with the provisions of act. Moreover, a lockout declared in consequence of an illegal strike or a strike declared in consequence of an illegal lock-out shall not be deemed to be illegal. Penalty for Illegal Strikes and Lock-outs A workman who is involved in an illegal strike can be penalized with imprisonment for a term extendable to a month or with a fine or fifty rupees or both. In similar way, an employer who initiates and continues a lockout is punishable with imprisonment extendable to a month or with a fine of one thousand rupees or both. According to Section 25 of Industrial Disputes Act 1947, no person should provide any sort of financial aid to any illegal strike or lock-out. Any person who knowingly provides such a help in support of any illegal strike or lock-out is punishable with imprisonment for a term which may extend to six months, or with fine which may extend to one thousand rupees, or with both.

MEASURES FOR IMPROVING INDUSTRIAL RELATIONS The following measures should be taken to achieve good industrial relations: Strong and Stable Union: A strong and stable union in each industrial enterprise is essential for good industrial relations. The employers can easily ignore a weak union on the plea that it hardly represents the workers. The agreement with such a union will hardly be honored by a large section of workforce. Therefore, there must be strong and stable unions in every enterprise to represent the majority of workers and negotiate with the management about the terms and conditions of service. Mutual Trust: Both management and labor should help in the development of an atmosphere of mutual cooperation,

confidence and respect. Management should adopt a progressive outlook and should recognize the rights of workers. Similarly, labor unions should persuade their members to work for the common objectives of the organization. Both the management and the unions should have faith in collective bargaining and other peaceful methods of settling disputes.

Workers Participation in Management: The participation of workers in the management of the industrial unit should be encouraged by making effective use of works committees, joint consultation and other methods. This will improve communication between managers and workers, increase productivity and lead to greater effectiveness.

Mutual Accommodation. The employers must recognize the right of collective bargaining of the trade unions. In any organization, there must be a great emphasis on mutual accommodation rather than conflict or uncompromising attitude. One must clearly understand that conflicting attitude does not lead to amicable labor relations; it may foster union militancy as the union reacts by engaging in pressure tactics. The approach must be of mutual give and take rather than take or leave. The management should be willing to co-operate rather than blackmail the workers. Sincere Implementation of Agreements. The management should sincerely implement the settlements reached with the trade unions. The agreements between the management and the unions should be enforced both in letter and spirit. If the agreements are not

implemented then both the union and management stop trusting each other. An environment of uncertainty is created. To avoid this, efforts should be made at both ends to ensure the follow up of the agreements.

Sound Personnel Policies: The following points should be noted regarding the personnel policies. The policies should be:
o

Formulated in consultation with the workers and their representatives if they are to be implemented effectively. Clearly stated so that there is no confusion in the mind of anybody. Implementation of the policies should be uniform throughout the organization to ensure fair treatment to each worker.

Governments Role: The Government should play an active role for promoting industrial peace. It should make law for the compulsory recognition of a representative union in each industrial unit. It should intervene to settle disputes if the management and the workers are unable to settle their disputes. This will restore industrial harmony. Progressive Outlook: There should be progressive outlook of the management of each industrial enterprise. It should be conscious of its obligations and responsibilities to the owners of the business, the employees, the consumers and the nation. The management must recognize the rights of workers to organize unions to protect their economic and social interests.

REFERENCES 1. Management of Industry Relations Vijay Asdhir 2. Industrial Law P.L. Malik

QUESTIONNAIRE
Q.1 Who is the cause of conflicts in the view of Workers ? Manager Worker Trade union All Above

Q. 2 Who is the cause of Conflicts in the view of Manager? Manager Worker Trade Union All Above

Q. 3 Strike & Lockouts are the solutions of conflicts between employee and employer ? Yes No Depend on situation Dont Know

Q.4 Is Trade Union help to sought out the conflict or problems ? Yes No Surely Not Sure

Q. 5 Is there is only hand of Trade Union to create Disputes ? Yes No Not Sure Surely

Q. 6 Are You satisfy with the Environment of BHEL ? Satisfy Not Satisfy Constant

Q. 7 How You face or tackle all the conflicts when it appears in BHEL ? Strikes Lockouts Support of Trade Union

Settlement Peacefully Q. 8 What steps taken by the BHEL to prevent Co. by appearing conflicts ? Charge-sheet Approval of Purposal Q. 9 Is Registered Trade Union can Object For his Rights and liabilities ? Yes No Settlement with Trade Union

Q. 10 Is there be any Govt. Role for dissolving Conflicts For Industrial Peace ? Yes No Should be

Q. If the Settlement between Management and Trade Union is Not implemented then What Sincerely doing ? Not Trust Resettlement